Annual Report 2022-23

ANNUAL REPORT 2022-2023 ANNUAL REPORT 2022-2023 MINISTRY OF FINANCE ºÉiªÉàÉä´É VɪÉiÉä ºÉiªÉàÉä´É VɪÉiÉä Government of India MINISTRY OF FINANCE PRINTED AT BUDGET PRESS, MINISTRY OF FINANCE, NEW DELHIContents Page No. INTRODUCTION vii CHAPTER I Department of Economic Affairs 1. Economic Division 1 2. Budget Division 4 3. Financial Markets Division 9 4. Financial Stability and Cyber Security Division 23 5. Financial Sector Reforms and Legislation Division 25 6. Infrastructure Policy and Planning Division 28 7. Investment and Digital Economy Division 31 8. FB & ADB Division 38 9. International Economic Relations Division 46 10. Aid Accounts & Audit Division 53 11. Administration Division 54 12. Bilateral Cooperation and Sustainable Finance Division 57 13. Integrated Finance Division 64 14. Coin & Currency Division 68 15. Other Multilateral Institutions Division 74 16. Infrastructure Support and Development Division 77 Annexures 80 Organisation Chart 85 iCHAPTER II Department of Expenditure 1. Personnel Division 87 2. Public Finance-States Division 88 3. Public Finance Central Division 90 4. Procurement Policy Division 91 5. Official Language 92 6. Integrated Finance Unit (IFU) 93 7. Controller General of Accounts 93 8. Chief Adviser Cost 97 9. Arun Jaitley National Institute of Financial Management (AJNIFM) 99 10. Chief Controller of Accounts (Finance) 100 11. Central Pension Accounting Office 102 Annexures I to IV 104 Organisation Chart 108 CHAPTER III Department of Revenue 1. Organization and Functions 109 2. Central Board of Direct Taxes 110 3. Central Board of Indirect Taxes and Customs 120 4. Revenue Headquarters Administration 141 5. Integrated Financial Unit (IFU) 179 6. Implementation of Official Language Policy 180 7. Implementation of Right to Information Act, 2005 181 8. e-governance activities 183 9. Swachh Bharat Campaign 195 Annexure - I - Representation of SCs/STs/OBCs 196 Annexure - II - Representation of VH/OH 207 Annexure - III - Summary of Audit Reports / Paras 218 Annexure - IV - Organization Chart 219 iiCHAPTER IV Department of Investment and Public Asset Management I. Functions 221 II. Vision 221 III. Mission 221 IV. Organisational Structure 221 V. Current Policy on Disinvestment in CPSEs 221 VI. Disinvestment Performance 223 VII. Other Initiatives 225 VIII. Challenges to Disinvestment 226 IX. Dividend Receipts 226 X. Initiatives Undertaken for Persons with Disabilities, Schedule Castes, Scheduled Tribes and Other Backward Classes 226 XI. Initiatives Relating to Gender Budgeting and Empowerment of Women 226 XII. Official Language Policy 226 XIII. E-Governance 226 XIV. Redressal of Public Grievances 227 XV. Vigilance Machinery 227 XVI. Right to Information Act, 2005 227 XVII.Initiatives for Good Governance 227 XVIII. Audit Paras/Objections 228 XIX. Integrated Finance Unit 228 XX. Participation in ‘Azadi Ka Amrit Mahotsav’ (AKAM) 228 Annexure I 229 Appendix I - Organisation Chart 231 Appendix II 232 iiiCHAPTER V Department of Financial Services 1. Work Allocation among Sections 233 2. Developments in Banking Sector 237 3. Financial Inclusion 242 4. Key Schemes 245 5. Agriculture Credit 247 6. Priority Sector Lending (PSL) 249 7. Insurance Sector 251 8. Pension Sector 254 9. Financial Institutions 258 10. Measures taken during COVID-19 pandemic 261 11. Representations from SCs, STs, OBCs and PWDs in financial sector institutions 263 12. Vigilance 263 13. Special Court 263 14. Office of the Custodian 264 15. Debt Recovery Appellate Tribunal/Debt Recovery Tribunal 264 16. Information Technology and Cyber Security 265 17. Disposal of Public Grievances 265 18. Right to Information (RTI) Act, 2005 267 19. Audit Paras 267 Annexures 268 Organisation Chart 271 ivCHAPTER VI Department of Public Enterprises 1. Public Enterprises Survey 273 2. Organisation and Autonomy of CPSEs 273 3. Wage Policy and Manpower Rationalization 275 4. Categorisation of CPSEs 276 5. Monitoring and Evaluation 276 6. Corporate Social Responsibility (CSR) 277 7. Scheme for ‘Counselling, Retraining and Redeployment (CRR)’ and ‘Research, Development and Consultancies (RDC)’ 277 8. Implementation of New Public Sector Enterprises (PSE) Policy 279 9. Voluntary Retirement Scheme (VRS) 280 10. Executive Development Programmes 280 11. Reservation in Services for Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs) and Others, in the CPSEs 280 12. Official Language Policy 282 13. Procurement by CPSEs from MSEs and through GeM 282 14. Events organized by DPE under the aegis of Azadi Ke Amrit Mahotsav 283 Annexure 1 - Organisation Chart 284 Annexures 2-8 285 vIntroduction Introduction The Ministry comprises of six Departments due to ongoing geopolitical tensions and a slowdown in namely:— China have resulted in a downward revision of the real GDP growth rate (as per SAE 2022-23) in comparison to  Department of Economic Affairs the Real GDP growth rate forecasted in Economic Survey  Department of Expenditure 2021-22.  Department of Revenue On the demand side, private consumption has  Department of Investment and Public Asset witnessed continued momentum. It is estimated to grow Management at 7.3 per cent in 2022-23 compared to 11.2 per cent in  Department of Financial Services 2021-22, reflecting the rebound demand witnessed in the  Department of Public Enterprises current year on account of the release of pent-up demand for contact-intensive services. Gross Fixed Capital 1. Department of Economic Affairs Formation (GFCF) is estimated to grow at 11.2 per cent in 2022-23, supported by various reforms and measures Economic Growth taken by the Government leading to the reinvigoration of the capex cycle and crowding-in of private investment. The global economy was on the path of recovery The government has continued to support the investment after waning of the COVID-19 pandemic until the Russia- activity with capital expenditure reaching Rs. 5.7 lakh Ukraine conflict broke out in February 2022. The conflict crore during April-January 2023, which is 29 per cent further disrupted the global supply chains and led to a higher than last year's corresponding period. Private spike in prices of critical commodities, leading to uptick investment also picked up in 2022-23, partially driven by in inflationary pressures. To restrain the consequent increased public capex and because of the strengthening inflation, major central banks around the world undertook of the balance sheets of the corporates and the monetary tightening resulting in tightening of financial consequent increase in credit flow. Exports are estimated conditions. As a result, increased borrowing costs and to grow at 11.5 per cent in 2022-23 despite sustained stubbornly high inflation is now getting reflected in multiple supply chain disruptions and an uncertain geopolitical leading indicators of global economic activity. Global environment. The share of exports in GDP (at 2011-12 developments have posed downside risks to India's prices) also increased to 23.1 per cent in 2022-23 growth and overall macroeconomic stability as well. The compared to 22.1 per cent in 2021-22. impact was seen in the first half of 2022-23, in the widening of the current account deficit (CAD), uptick in On the supply side, agriculture, forestry and fishing retail inflation, the outflow of portfolio investments, and continues to lend unwavering support to economic growth the appreciation of the US$ against the `. In the second and are expected to witness YoY growth of 3.3 per cent half of 2022-23, retail inflation has fallen below the in 2022-23. The growth in the agriculture sector is likely tolerance ceiling, portfolio investments have started to to remain buoyant, supported by healthy progress in Rabi return, the ` has stabilized against the US$, but export sowing. This has led to a recovery in the rural economy. The improvement in rural demand can be deduced from growth has declined with the slowing of global growth. However, despite the unfavourable developments, as per the robust domestic tractor, two and three-wheelers sales during Q3 of 2022-23. The industry sector is likely to the latest IMF World Economic Outlook estimates, the Indian economy continues to be one of the fastest- witness modest growth of 3.6 per cent in 2022-23 compared to strong growth of 11.6 per cent in 2021-22, growing major economies in 2022-23, which is a reflection of India's underlying economic resilience and strong possibly because of input cost-push pressures, supply chain disruptions and China lockdown affecting the macroeconomic fundamentals. availability of essential inputs and slowing global As per the Second Advance Estimates of National economy. The services sector is expected to rebound Income, 2022-23 of the National Statistical Office (NSO), with YoY growth of 9.4 per cent in 2022-23 compared to Ministry of Statistics and Programme Implementation 8.8 per cent in 2021-22, driven by a recovery of the (MoSPI), India's Real GDP and Nominal GDP are contact-intensive service sector (Trade, hotels, transport, projected to grow by 7 per cent (YoY) and 15.9 per cent communication and services related to broadcasting) (YoY), respectively, in 2022-23. Persistently high inflation, which is likely to witness the highest growth of 14.2 per tightening financial conditions, supply chain disruptions cent on account of the release of pent-up demand. viiAnnual Report 2022-2023 Industry 2021-22 (April-December). The three broad sectors, mining, manufacturing and electricity sectors registered The performance of the industrial sectors based on growth of 5.4 per cent, 4.8 per cent and 9.9 per cent the Index of Industrial Production (IIP) comprising mining, respectively in 2022-23 (April-December) as against 16 manufacturing and electricity sectors witnessed continued per cent, 16.1 per cent and 9.4 per cent growth momentum during 2022-23 (April-December). According respectively during the corresponding period last year. to the data on the IIP released by the National Statistical In terms of used based grouping, except for Consumer Office (NSO) under the Ministry of Statistics and Non-Durable Goods all subgroups witnessed positive Programme Implementation (MOSPI), the IIP based growth during 2022-23 (April-December). The growth of industrial growth during 2022-23 (April-December), was different sectors and used based industrial group is given 5.4 per cent as compared to 15.3 per cent during the below. Table: Growth of Index of Industrial Production (IIP) (in Per cent) (Base 2011-12=100) Industry group Weight 2021-22 2021-22 (April- 2022-23 (April- December) December) Mining 14.37 12.2 16 5.4 Manufacturing 77.63 11.8 16.1 4.8 Electricity 7.99 8.0 9.4 9.9 Growth by used-based industrial group Primary Goods 34.04 9.6 11.8 7.8 Capital Goods 8.22 17.0 24.3 14.1 Intermediate Goods 17.22 15.4 20.8 4.5 Infrastructure/Construction 12.33 18.8 23.9 7.6 Goods Consumer Durable Goods 12.83 12.4 20.6 3.4 Consumer Non-Durable 15.32 3.2 5.4 -1.2 Goods General Index 100 11.4 15.3 5.4 Source: NSO, MoSPI The index for eight core industries comprising coal, 2021-22 (April-January). The acceleration in ICI is mainly crude oil, natural gas, refinery products, fertilizers, steel, driven by double digit growth in coal, cement, electricity cement and electricity with a combined weight of nearly and fertiliser subsectors. Except for crude oil, all sub- 40 per cent in the IIP, registered growth of 7.9 per cent in sectors registered positive growth during 2022-23 (April- 2022-23 (April-January) compared to 11.6 per cent in January). viiiIntroduction Weight 2021-22 2021-22 (Apr- 2022-23 (Apr- Jan) Jan) Coal 10.33 8.5 10.3 16.1 Crude Oil 8.98 -2.6 -2.6 -1.3 Natural Gas 6.88 19.2 21.2 1.4 Petroleum Refinery 28.04 8.9 9.3 5.4 Products Fertilizers 2.63 0.7 -0.3 10.5 Steel 17.92 16.9 19.9 7.1 Cement 5.37 20.8 24.7 10.0 Electricity 19.85 8.0 8.5 10.1 Overall Growth Rate 100 10.4 11.6 7.9 Source: Office of the Economic Adviser, DPIIT (Ministry of Commerce & Industry) Performance of the Banking Sector of SCBs has been rising sequentially in the post-asset quality review period. With a pick-up in lending activity Since the middle of the previous decade, RBI and during H1:FY23, CRAR moderated in September 2022 the Government have made dedicated efforts in terms of because of an increase in risk-weighted assets (RWAs). calibrated policy measures like strengthening the However, it remains well above the minimum capital regulatory and supervisory framework, implementation requirement, including Capital Conservation Buffer (CCB) of 4R's approach of Recognition, Resolution, requirements of 11.5 per cent. Recapitalisation and Reforms to clean and strengthen the balance sheet of the banking system. These During the first half of FY23, the profitability of SCBs, continuous efforts over the years have culminated in the measured in terms of Return on Equity (ROE) and Return enhancement of risk absorption capacity and a healthier on Assets (ROA), improved to levels last observed in banking system balance sheet both in terms of asset FY15. At the system level, Profit After Tax (PAT) witnessed quantity and quality over the years. a double-digit growth of 40.7 per cent in the quarter ending Consequently, the asset quality of Scheduled September 2022, led by strong growth in Net Interest Commercial Banks (SCBs) has been improving steadily Income (NII) and a significant lowering of provisions. over the years across all major sectors. The Gross Non- Macro-stress tests conducted by RBI for credit risk reveal Performing Assets (GNPA) ratio has decreased from 8.2 that SCBs are well-capitalised and that all banks would per cent in March 2020 to a seven-year low of 5.0 per be able to comply with the minimum capital requirements cent in September 2022, while Net Non-Performing even under adverse stress scenarios. Assets (NNPA) have dropped to a ten-year low of 1.3 per cent of total assets. Lower slippages and the reduction in Credit Growth outstanding GNPAs through recoveries, upgrades and The recovery in economic activity in FY22, along write-offs led to this decrease. Lower GNPAs, combined with the enhanced financial soundness of banks and with high provisions accumulated in recent years, corporates, has bolstered the expansion of non-food bank contributed to a decline in NNPA. credit since June 2021.The YoY growth in non-food bank Moreover, with shrinking GNPAs, the Provisioning credit accelerated to 16.7 per cent as on 27th January Coverage Ratio (PCR) has been increasing steadily since 2023. This not only shows an acceleration in the growth March 2021 and reached 71.6 per cent in September of current economic activities but also an anticipation of 2022. The Credit to Risk Weighted Asset Ratio (CRAR) continued momentum in economic activity in future. ixAnnual Report 2022-2023 Credit growth has been broad-based across sectors, focused on the withdrawal of accommodation, while with retail credit driving the growth primarily owing to rising supporting growth' in this meeting, signalling the start of demand for home loans. An increase in demand for the monetary tightening cycle. housing induces greater investment which, in turn, sets Recognising the sizeable upside risk imparted by off a virtuous cycle of growth and investment. Credit to adverse global developments, such as the generalised agriculture and allied activities gained momentum hardening of commodity prices and an increased supported by the Government's concessional institutional likelihood of prolonged supply chain disruptions, the MPC credit and higher agricultural credit target. Industrial credit convened an off-cycle meeting in May 2022. Members growth has been buoyed by a pick-up in credit to MSMEs, unanimously voted for an increase of 40 bps each in the assisted by the benefits accrued from the effective policy repo rate, the SDF and the Marginal Standing implementation of the Emergency Credit Line Guarantee Facility (MSF), and a 50-bps increase in the Cash Scheme (ECLGS) and the support provided by the Reserve Ratio (CRR). Between May 2022 and February government's production-linked incentive scheme and 2023 and over six meetings, the MPC implemented a improvement in capacity utilisation. Credit growth in cumulative hike of 250 bps each in the policy repo rate, services was driven by a recovery in credit to NBFCs, the SDF, the MSF and the bank rate. In the initial phases commercial real estate and trade sectors. of the tightening cycle, the committee noted that With moderation in overseas issuances and lower commodity price-driven inflationary pressures, increased investments by Private Equity (PE)/Venture Capital (VC), volatility and initial signs of a slowdown in output the financing needs of the corporate sector are being characterised the global outlook. met through domestic resources. As funds raised from the primary segment of domestic equity markets declined Liquidity Conditions and its Management during FY23, reliance on bank credit for funding regular Surplus liquidity conditions that prevailed post- operations and capacity expansion increased. Also, the Covid-19 in response to the Reserve Bank's conventional Incremental Credit-Deposit ratio rose sharply both on an and unconventional monetary measures moderated annual (122.0 per cent, YoY) and half-yearly basis (172.5 during FY23 in consonance with the changed monetary per cent; September 2022 over March 2022). The policy stance that focused on the withdrawal of accumulation of deposits in the past few years has accommodation. With the Marginal Standing Facility enabled banks to fund the growing credit demand. Here, (MSF) rate retained at 25 bps above the policy repo rate, the well-capitalised banking system with a low NPA ratio the Liquidity Adjustment Facility (LAF) corridor became and more robust corporate sector fundamentals will symmetric around the policy repo rate - the corridor width continue to enhance the flow of bank credit into productive was thus restored to 50 bps, the position that prevailed investment opportunities, notwithstanding the rising before the pandemic. The RBI's move to hike the Cash interest rates. Reserve Ratio (CRR) by 50 bps resulted in a withdrawal Monetary Developments of primary liquidity to the tune of `87,000 crore from the banking system. The Monetary Policy Committee (MPC) maintained a status quo on the policy repo rate between May 2020 The daily net liquidity absorption averaged `2.5 lakh and February 2022 after implementing a 115 basis points crore during FY23 (up to 21 December 2022) as (bps) reduction between March 2020 and May 2020. compared with `6.7 lakh crore in FY22. The Reserve Retail inflation crossed the upper limit of RBI's tolerance Bank remained nimble and agile in liquidity management band since January 2022. Sensing a serious risk to price by conducting two-way operations. It injected liquidity to stability, RBI initiated the monetary tightening cycle. In its assuage transient liquidity tightness through two variable April 2022 meeting, the committee introduced the rate repo (VRR) auctions of `50,000 crore each of 3 days Standing Deposit Facility (SDF), which allowed for the and overnight maturity on 26th July and 22nd September deposit of excess funds by banks with the RBI without 2022, respectively. The gradual withdrawal of surplus the necessity of collateral in the form of government liquidity pushed the weighted average call rate (WACR) - securities, thereby allowing effective liquidity the operating target of monetary policy - closer to the management in a collateral-free manner. The SDF, policy repo rate, on an average basis. The WACR traded introduced at a rate of 3.75 per cent, replaced the reverse 6 bps above the policy repo rate, on an average, during repo rate as the new floor of the Liquidity Adjustment H2 (up to 21 December 2022) compared to 28 bps below Facility (LAF) corridor. The MPC also indicated a change it during H1. Interest rates on various money market rates in stance from 'Accommodative' to 'Accommodative and - 91-day Treasury Bills (T-Bills), 3-month certificates of xIntroduction deposit and commercial papers - gradually firmed up in private sector banks and 'others' were net buyers in the line with the increase in the repo rate. secondary market. Lending and deposit rates of banks increased during Services Sector FY23 in consonance with the policy repo rate changes. The Covid-19 pandemic hurt most sectors of the During FY23 (up to December 2022), external economy, with the effect particularly profound for contact- benchmark-based lending rate and 1-year median intensive services sectors like tourism, retail trade, hotel, marginal cost of funds-based lending rate (MCLR) entertainment, and recreation. On the other hand, non- increased by 225 bps and 115 bps, respectively. Overall, contact services such as information, communication, the weighted average lending rate (WALR) on fresh and financial, professional, and business services remained outstanding rupee loans rose by 105 bps and 61 bps, resilient. However, the services sector witnessed a swift respectively, in FY23 (up to October 2022). On the deposit rebound in FY22, growing Year-on-Year (YoY) at 8.8 per side, the weighted average domestic term deposit rate cent compared to a contraction of 8.2 per cent in the (WADTDR) on fresh term deposits increased by 141 bps previous financial year. The improvement was driven by in FY23 (up to October 2022). growth in the 'Trade, Hotel, Transport, Storage, An analysis of transmission across bank groups Communication and Services related to broadcasting' during FY23 (up to October 2022) indicates that the sub-sector, which bore the maximum burden of the increase in the WALRs on fresh loans was higher in the pandemic. The growth momentum has continued in FY23 case of public sector banks, while that of the WADTDR as well. As per the Second Advance Estimates, Gross on outstanding deposits and WALR on outstanding loans Value Added (GVA) in the services sector is estimated to was higher for private banks. grow at 9.4 per cent in FY23, driven by 14.2 per cent growth in the contact-intensive services sector. Developments in the G-Sec Markets Growth in the services sector in Q3 of 2022-23 is After remaining steady through 2020 and 2021, the led by an increasing contribution of the contact-intensive yield on the 10-year government bond rose in 2022. The services sector (trade, hotel, transport, communication weighted average yield spike reflects the domestic bond and services related to broadcasting) to real GVA, as the market volatility stemming from uncertainty in crude removal of restrictions and near-universal vaccination prices, a hawkish stance of major central banks, a coverage led to a shift in discretionary consumption hardening of global bond yield and the pressure on the towards contact-intensive services with the release of rupee. The monthly average yield on the 10-year pent-up demand. government bond stood at 7.35 per cent in February 2023 Bank credit to the services sector has witnessed after having peaked at 7.5 per cent in June 2022. Yields significant growth since October 2021 with the moderated in November and December 2022 following improvement in vaccination coverage and recovery in the smaller rate hikes by major central banks and declining services sector. The credit to services sector saw a YoY inflation. With the softening of yields, volatility also growth of 21.5 per cent in January 2023 compared to a declined in the second half of 2022. 5.7 per cent growth in January 2022. The trading volume in G-Secs (including T-Bills and The World Investment Report 2022 of UNCTAD SDLs) reached a two-year high of `27.7 lakh crore during places India as the seventh largest recipient of FDI in the Q2 FY23, registering a YoY growth of 6.3 per cent. The top 20 host countries in 2021. In FY22 India received the higher trading volume reflects the growing interest of highest-ever FDI inflows of US$ 84.8 billion including US$ market players/ traders in the government security 7.1 billion FDI equity inflows in the services sector. To market. facilitate investment, various measures have been Private Sector Banks emerged as the dominant undertaken by the Government, such as the launch of trading segment in the secondary market during the the National Single-Window system, a one-stop solution quarter under review, with a share of 25.0 per cent in for approvals and clearances needed by investors, "Buy" deals and 24.8 per cent in "Sell" deals in the total entrepreneurs, and businesses. To ensure the outright trading activity, followed by foreign banks, public liberalization of investment in various industries, the sector banks, primary dealers and mutual fund. On a net Government has permitted 100 per cent foreign basis, foreign banks and primary dealers were net sellers. participation in telecommunication services, including all In contrast, public sector banks, cooperative banks, services and infrastructure providers, through the financial institutions, insurance companies, mutual funds, Automatic Route. xiAnnual Report 2022-2023 Services sector performance Share in GVA Growth (per cent) Sector 2022-23 2021-22 2022-23 Q1 Q2 Q3 (2nd AE) (1st RE) (2nd AE) Total Services (Excluding 54.4 8.8 9.4 16.3 9.4 6.2 construction) Trade, hotels, transport, communication & services 19.1 13.8 14.2 25.7 15.6 9.7 related to broadcasting Financial, real estate & 22.5 4.7 6.9 8.6 7.1 5.8 professional services Public administration, 12.8 9.7 7.1 21.3 5.6 2.0 defence & other services* Source: Ministry of Statistics and Programme Implementation Share in GVA is at Current Prices and growth in GVA is at Constant 2011-12 Prices Other services include Education, Health, Recreation and other personal services PE: Provisional Estimates. AE: Advance Estimates Agriculture and Food Management tonnes which is higher than the average Kharif food grain The Indian agriculture sector grew by 3.0 per cent production of the previous five years (2016-17 to 2020- in 2021-22 compared to 3.3 per cent in 2020- 21. As per 21). As per First Advance Estimates 2022-23 (kharif only) Fourth Advance Estimates for 2021-22, the production the paddy area was about 3.8 lakh hectares less than of Foodgrains in the country is estimated at 315.72 million the sown area of 411.2 lakh hectare during 2021-22 (kharif tonnes which is higher by 4.98 million tonnes than the season). Further, in the current rabi season the area under production of foodgrain during 2020-21. The production rabi paddy has expanded by 6.6 lakh hectares as during 2021-22 is higher by 25 million tonnes than the compared to last year (Crop Weather Watch Group 12 previous five years’ (2016-17 to 2020-21) average January 2023). According to third advance estimates production of foodgrains. As per the First Advance (2021-22), horticulture had a record production of 342.3 Estimates for 2022-23 (Kharif only), total food grains million tonnes in an area of 28.0 million hectares. production in the country is estimated at 149.9 million (Production in Million Tonnes) Crops 2017-18 2018-19 2019-20 2020-21 2021-22* Rice 112.76 116.48 118.87 124.37 130.29 Wheat 99.87 103.60 107.86 109.59 106.84 Nutri/Coarse Cereals 46.97 43.06 47.75 51.32 50.90 Total Pulses 25.42 22.08 23.03 25.46 27.69 Total Nine Oilseeds 31.46 31.52 33.22 35.95 37.70 Cotton # 32.81 28.04 36.07 35.25 31.20 # Lakh bales of 170 kgs. Each * 4th advance Estimates xiiIntroduction Livestock Sector is an important subsector of agriculture million tonnes of revenue-earning freight traffic in the Indian economy. It grew at a CAGR of 7.93 per (excluding KRCL). cent during 2014-15 to 2020-21 (at constant prices). As  In the case of the civil aviation sector, the total per the estimates of National Accounts Statistics (NAS) number of passengers carried in December 2020 for sector wise GVA of agriculture and allied sectors, 2022 stood at 150.1 lakh, which was 106.4 per the contribution of livestock in total agriculture and allied cent of the pre-Covid level (average for 11 sector GVA (at constant prices) has increased from 24.32 months from April 2019 to February 2020). per cent (2014-15) to 30.13 per cent (2020-21). During November 2022, total air cargo tonnage stood at 2.5 lakh MT, which is 89 per cent of Dairy is the single largest agricultural commodity the pre-Covid levels. contributing 5 per cent of the national economy and  The capacity of major ports, which was 871.5 employing more than 8 crore farmers directly. Milk Million Tonnes Per Annum (MTPA) at the end production in the country has grown at a compound of March 2014, has increased to 1534.9 MTPA annual growth rate of about 6.2 per cent to reach 209.96 by the end of March 2022. Cumulatively they million tonnes in 2020-21 from 146.31 million tonnes in handled 720.1 MT traffic during FY 22. 2014-15. Egg production in the country has increased from 78.48 billion in 2014-15 to 122.05 billion Nos. in  The total telephone subscriber base in India 2020-21. Meat production in the country has increased stands at 117 crore (as of November 2022). More than 97 per cent of the total subscribers from 6.69 million tonnes in 2014-15 to 8.80 million tonnes are connected wirelessly (114.3 crore at the end in 2020-21. The Fisheries sector plays an important role of November 2022), and 83.7 crore have in the national economy with an estimated Gross Value internet connections as of June 2022. Added (GVA) at Rs. 1,37,716 Crores in 2020-2021. The sector has reached record fish production of 16.25 MMT in 2021-22 (provisional) and has immense potential to Social Sector grow further. The Government's spending on social services1 has Infrastructure shown a rising trend since FY16 with a focus on many aspects of the social well-being of citizens of the country. Infrastructure plays a vital role in national integration The share of expenditure on social services in the total and regional development. This includes roads, railways, expenditure of the Government has been around 25 per airports, ports, mass transport, waterways and cent from FY18 to FY20. It increased to 26.6 per cent in telecommunications etc. Some of the achievements FY23 (BE). The social services expenditure witnessed under infrastructure development in India are as follows: an increase of 8.4 per cent in FY21 over FY20 and another  There has been an increase in the construction 31.4 per cent increase in FY22 over FY21, being the pandemic years, which required enhanced outlay, of National Highways (NHs)/roads over time, especially in the health2 and education3 sectors. While with 10,457 km of roads constructed in FY 22 the social sector expenditure outlay of the Centre and as compared to 6,061 km in FY1 6. In FY 23 State governments was `12.8 lakh crore in FY19, it has (until October 2022), 4,060 km of NHs/roads increased steadily to stand at `21.3 lakh crore in FY23 were constructed. (BE).  During the current financial year, passenger rail Labour Market traffic has seen strong growth with the number of originating passengers hitting 418.4 crore (up As reported in annual PLFS4, labour markets have to November 2022). In the case of revenue- recovered beyond pre-Covid levels, in both urban and earning freight traffic, during FY 22-23 (up to rural areas, with unemployment rate (UR)5 (person age November 2022), Indian Railways carried 976.8 15 years and above, as per usual status6) falling from 1 Social services include education, sports, art, and culture; medical and public health, family welfare; water supply and sanitation; housing; urban development; the welfare of SCs, STs and OBCs, labour and labour welfare; social security and welfare, nutrition, relief on account of natural calamities, etc. 2 Expenditure on ‘Health’ includes expenditure on ‘Medical and Public Health’, ‘Family Welfare’, and ‘Water Supply and Sanitation. 3 Expenditure on ‘Education’ pertains to expenditure on ‘Education, Sports, Arts, and culture. 4 PLFS Survey year corresponds to July-June, For example, data for 2020-21 refers to the period July 2020-June 2021. 5 UR is defined as the per centage of unemployed persons in the labour force. 6 For a person to be categorised as employed as per usual status (ps+ss), he/she must have pursued and economic activity for at least 30 days during the 365 days preceding the date of the survey. xiiiAnnual Report 2022-2023 5.8 per cent in 2018-19 to 4.1 per cent in 2021-22, rise in the key labour market indicators in the quarter ending labour force participation rate (LFPR)7 from 50.2 percent December 2022 both sequentially and over the last year. in 2018-29 to 52.9 per cent in 2021-22 and rise in worker The labour force participation rate increased to 48.2 per population ration (WPR)8 from 47.3 per cent in 2018-19 cent in October-December, 2022 from 47.3 per cent a to 52.9 per cent in 2021-22. Notably, there has been a year ago, while the worker-population ratio strengthened significant rise in female LFPR from 24.5 per cent in from 43.2 per cent to 44.7 per cent in the same period. The unemployment rate declined from 8.7 per cent in 2018-19 to 32.8 percent in 2021-22. October-December 2021 to 7.2 per cent in October- The quarterly PLFS for urban areas (available till December 2022. This trend highlights that labour markets October-December 2022) shows an improvement in all have recovered from the Covid impact. Quarterly Employment Indicators for age 15 years & above Quarters LFPR WPR UR July-Sept, 2019 47.3 43.4 8.3 Oct-Dec, 2019 47.8 44.1 7.8 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 Oct-Dec, 2020 47.3 42.4 10.3 Jan-March, 2021 47.5 43.1 9.3 Apr-Jun 2021 46.8 40.9 12.6 July-Sept, 2021 46.9 42.3 9.8 Oct-Dec 2021 47.3 43.2 8.7 Jan-March, 2022 47.3 43.4 8.2 Apr-Jun 2022 47.5 43.9 7.6 July-Sept 2022 47.9 44.5 7.2 Oct-Dec 2022 48.2 44.7 7.2 Source: Quarterly PLFS reports As per the Quarterly Employment Survey (QES) by payroll addition, pointing towards improved formalisation the Labour Bureau, estimated total employment in the as economic activities picked up. The net addition in EPF fourth round (Q4 FY22) in the nine major sectors stood subscriptions during FY22 was 58.7 per cent higher than at 3.2 crore in January to March 2022, which is nearly in FY21 and 55.7 per cent higher than that in the pre- ten lakh higher than the estimated employment from the pandemic year 2019. In FY23, net average monthly first round of QES (April-June 2021). The increase in subscribers added under. EPFO increased from 9.8 lakh estimates of workers from Q1FY22 to Q4FY22 was driven in April-December 2021 to 12.7 lakh in April-December by rising employment in sectors such as IT/BPO (by 17.6 2022. lakh), health (7.8 lakh), and education (1.7 lakh), due to rising digitisation and resurgence of services sector World Economic Development economy. As per the World Trade Organisation (WTO) EPFO data indicates a consistent YoY increase in statistics, the global trade volume grew by 4.8 per cent in 7 According to the PLFS, LFPR is the percentage of working – age, population, engaged in work or making tangible efforts to seek ‘work’or being available for ‘ work’ if it is available. ‘work’ includes self-employment(subsistence, agriculture and collection of fire-wood, poultry, farming etc. for self-consumption ), regular wage/salaried employment, and casual labour. 8 WPR is defined as the percentage of employed persons in the total population. xivIntroduction H12022, on top of an impressive recovery of 9.7 per cent negative factors appear to outweigh positive trends. in 2021. The global merchandise trade in value terms International Monetary Fund (IMF) forecasts Global rose YoY, by 22.2 per cent in 2021, reversing the growth to slow from 6.0 per cent in 2021 to 3.2 per cent deceleration observed in the previous three years. During in 2022 and 2.7 per cent in 2023. However, there is a the H1 of 2022, the trade-in value terms grew by 32 per high degree of uncertainty associated with the forecast cent compared to the corresponding period of 2019.9 due to shifting monetary policy in advanced economies and the unpredictable nature of the Russia-Ukraine As regards the future trade projections, according conflict. to the WTO, world trade is expected to lose momentum in H22022 and remain subdued in 2023. The organisation India's Merchandise Trade developments during forecasts global trade to grow in 2023 by just 1 per cent, 2020-21, 2021-22, 2021-22 (April-December) and 2022- a sharp downward revision from the previous estimate 23 (April-December) of 3.4 per cent. The United Nations Conference on Trade and Development (UNCTAD), in its Global Trade update As per the data of Department of Commerce, the of December 2022 has also noted that the ongoing trade developments in India's merchandise trade during 2020- slowdown is expected to worsen for 2023 and further 21, 2021-22, 2021-22 (April-December) and 2022-23 that while the outlook for global trade remains uncertain, (April-December) may be seen at Table 1. Table: India's Merchandise Trade Performance (Values in US$ billions) Change Change 2022-23 2021-22 2022-23 2021-22 (Apr- Dec) over 2020-21 2021-22 (Apr- (Apr- over 2021-22 (Apr- Dec) Dec) (P) 2020-21 Dec) Total Exports 291.8 422.0 44.6 305.0 332.8 9.1 Total Imports 394.4 613.1 55.4 441.5 551.7 25.0 POL Imports 82.7 161.8 95.7 112.6 163.9 45.6 Non- POL Imports 311.8 451.2 44.7 328.9 387.8 17.9 Trade Balance -102.6 -191.0 86.2 -136.5 -218.9 60.5 Source: Department of Commerce, Ministry of Commerce and Industry. Note: P: Provisional. India's Merchandise Trade developments during Table: Major Items of India's Balance of Payments 2020-21, 2021-22, 2021-22 (April-December) and 2022- (US$ Billion) 23 (April-December) Year / Item (Net) 2021-22 2022-23 As per the data of Department of Commerce, the H1 H1 (P) developments in India's merchandise trade during 2020- A. Current Account -3.2 -54.6 21, 2021-22, 2021-22 (April-December) and 2022-23 A 1 Merchandise Trade (April-December) may be seen at Table 1. Balance -75.2 -146.6 It may be seen from table 1 above that the A 1 a Merchandise Exports 202.2 234.8 merchandise trade deficit had increased to US$ 191.0 A 1b Merchandise Imports 277.4 381.4 billion in 2021-22 from US$ 102.6 billion in 2020-21. A 2. Invisibles 72.1 92.0 During 2022-23 (April-December), trade deficit increased A 2.a) Services 51.4 65.5 to US$ 218.9 billion from US$ 136.5 billion in 2021-22 A 2.b) Transfers 38.0 47.6 (April-December). A 2.c) Income -17.3 -21.1 Developments in Balance of Payments during 2022 B) Capital Account 65.0 29.0 (April-September) B.1) Foreign Investment 24.5 11.9 B.1.a) Foreign Direct As per the Press Release of the Reserve Bank of India, the developments in India's Balance of Payments Investment 20.3 20.0 for 2021- 22 (April-September) and 2022-23 (April- B.1.b Foreign Portfolio September) may be seen in Table 2. Investment 4.3 -8.1 B.2) Loans 10.7 9.4 9 WTO’s press release, International Trade Statistics, 5 October 2022. xvAnnual Report 2022-2023 B.2.a) External Assistance 1.4 2.3 translates the vision of the Hon'ble PM expressed through the "Panchamrit" at the UNFCCC Conference of Parties B.2.b) Commercial Borrowings (COP 26) in Glasgow in November 2021. The vision (MT & LT) 5.0 -3.0 mentions of sustainable lifestyles and climate justice to B.2.c) Short Term Credit to India 4.3 10.2 protect the poor and vulnerable from the adverse impacts B.3) Banking Capital 4.4 10.6 of climate change. Aligning with this vision, the share of B.4) Rupee Debt Service -0.1 -0.1 non-fossil fuel-based capacity in overall capacity has risen rapidly over time. Including the large hydro, the share of B.5) Other Capital 25.4 -2.9 non-fossil sources in total installed electricity capacity is C) Errors and Omissions 1.2 -0.2 estimated to be about 40.4 per cent (on 31.09.2022) D) Overall Balance 63.1 -25.8 compared to 27.3 per cent in 2014-15. This period has E) Foreign Exchange Reserves seen a sizeable enhancement in the share of installed electricity capacity in solar and wind energy from 8.9 per (Increase - /Decrease +) -63.1 25.8 cent in 2014-15 to 25.1 per cent in 2022-23 (April-Sept). Source: RBI. P: Provisional. As India moves toward a carbon-neutral economy, (A) Current Account mobilization of adequate resources at reasonable cost India recorded a current account deficit of 3.3 per will be the key determinant. The order of financial flows cent of GDP in H1:2022-23 on the back of a sharp required for climate action cannot be expected from increase in the merchandise trade deficit, as compared domestic budgetary resources alone. In line with Article with 0.2 per cent in H1:2021-22. Net invisible receipts 4, paragraph 19 of Paris Agreement India submitted its were higher in H1:2022-23 on a y-o-y basis on account Long Term Low Emission Development Strategy (LT- of higher net receipts of services and private transfers. LEDS) to UNFCCC during COP27 on 14th November (B) Capital/Financial Account 2022. As per this strategy report the transition to the low- In H1: FY 23, net capital flows declined to US$ 29.0 carbon development pathway will entail several costs billion as compared to US$ 65.0 billion in 2021-22 H1. pertaining to the development of new technologies, new Net FDI inflows at US$ 20.0 billion in H1:2022-23 were infrastructure, and other transaction costs. While several comparable with US$ 20.3 billion in H1:2021-22. Portfolio estimates exist and vary across studies, overall, these investment recorded a net outflow of US$ 8.1 billion in are, in all cases, substantial and of the order of tens of H1:2022-23 as against an inflow of US$ 4.3 billion a year trillions of dollars by 2050. The LT-LEDS is driven by the ago. In H1:2022-23, there was a depletion of US$ 25.8 vision of LiFE, Lifestyle for the Environment that calls for billion to the foreign exchange reserves (on a BoP basis). a worldwide paradigm shift from mindless and destructive consumption to mindful and deliberate utilisation. Foreign Exchange Reserves There was a decline in India's foreign exchange Among several issues, climate finance has been reserves during 2022-23. The forex reserves stood at discussed during COP27 climate summit in Sharm el- US$ 562.7 billion as at end-December 2022, than US$ Sheikh during November 2022. Officials from CCFU 607.3 billion as at end-March 2022. The import cover of handled the matters related to climate finance during the India's foreign exchange reserves declined to 9.3 months negotiations. It may be recalled that an adhoc work at end-December 2022 from 11.8 months at end-March programme from 2022 to 2024 was established in the 2022 as merchandise imports increased with an increase Glasgow Conference with the objective of setting the New in crude oil prices in the international market and a pick- Collective Quantified Goal goal, prior to 2025. up in domestic economic activity. Deliberations during COP27 took into account the work carried out by the ad-hoc work program on the New Exchange Rate Collective Quantified Goal (NCQG) and the 2022 High- Indian rupee depreciated by 8.3 per cent (y-o-y Level Ministerial Dialogue on the goal. basis) against US dollar during April-December 2022. Further, the INR appreciated against select major COP27 decision acknowledged the need for currencies barring the US dollar. The average exchange substantive progress in the deliberations on the NCQG rate of INR against the Pound Sterling appreciated by on climate finance which will take into account the needs 6.27 per cent in April -December 2022 over April - and priorities of developing countries and include inter December 2021. This rate of appreciation was 12.5 per alia, quantity, quality, scope and access features, as well cent with respect to the Japanese Yen and 5.9 per cent as sources of funding, of the goal and transparency against the Euro during April-December 2022 as arrangements. Further, the decision guided parties to compared to April-December 2021. make submissions on the 2023 work plan on themes to be discussed during upcoming Technical Expert Climate Change and Finance Dialogues (TEDs) in 2023 under the ad-hoc work program. Performance and achievements under the key flagship programmes Lastly, it was decided to establish new funding India is deeply committed to climate action. arrangements for assisting developing countries that are Demonstrating higher ambition in its climate action, the particularly vulnerable to the adverse effects of climate Government of India updated its existing NDC on August change, in responding to loss and damage, including with 26, 2022. The updated NDC with enhanced targets a focus on addressing loss and damage by providing and xviIntroduction assisting in mobilizing new and additional resources. in 2020-21 to 5.5 per cent in 2021-22 and stood at 6.8 Establish a transitional committee on the per cent in 2022-23(April-December). In 2022-23(April- operationalization of the new funding arrangements for December), it has climbed sharply due to high food responding to loss and damage and the fund. inflation. CPI-C inflation declined significantly from 7.8 per cent in April 2022 to 5.7 per cent in December, 2022. e-Governance Activities Food inflation based on Consumer Food Price Index For matters related to climate change finance, the (CFPI) declined from 8.3 per cent in April 2022 to 4.2 per e-file platform is used in almost all cases since 2018. cent in December 2022. Inflation measured in terms of Old physical files also been converted to electronic form. Wholesale Price Index (WPI) increased from 1.3 per cent in 2022-21 to 13 per cent in 2021-22. WPI inflation Prices averaged 11.5 per cent during 2022-23(April-December), Retail inflation, measured by Consumer Price Index- declined from 15.4 per cent in April 2022 to 5.0 per cent Combined (CPI-C), showed a decline from 6.2 per cent in December 2022 (Table 1). Table 1: Inflation in CPI and WPI (in per cent) CPI-C WPI Headline Inflation Food (CFPI) Headline Food Inflation Inflation Inflation Base Year 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 2021-22 5.5 3.8 13.0 6.8 2021-22(Apr-Dec) 5.2 2.9 12.7 5.9 2022-23(Apr-Dec) 6.8 7.0 11.5 7.5 Apr-22 7.8 8.3 15.4 9.1 May-22 7.0 8.0 16.6 10.6 Jun-22 7.0 7.8 16.2 11.8 Jul-22 6.7 6.7 14.1 9.3 Aug-22 7.0 7.6 12.5 10.1 Sep-22 7.4 8.6 10.6 8.0 Oct-22 6.8 6.0 8.7 6.6 Nov-22 5.9 4.7 5.9 2.2 Dec-22 5.7 4.2 5.0 0.7 Source: NSO and DPIIT. Notes: Notes: WPI inflation for December 2022 and is provisional. xviiAnnual Report 2022-2023 2. Department of Expenditure 5. Department of Financial Services The Department of Expenditure is the nodal As per Allocation of Business Rules (AOBR), the Department for overseeing the public financial functions of the Department of Financial Services (DFS) management system in the Central Government and include legislative and administrative matters pertaining matters connected with state finances. It is responsible to financial services sectors of Banking, Insurance, and for the implementation of the recommendations of the Pension. These include the administration of various acts Finance Commission and Central Pay Commission, related to financial services sector and monitoring the monitoring of audit comments/observations, preparation performance of public sector banks, insurance companies of Central Government Accounts. It further assists Central and other financial institutions in banking insurance. Ministries/Departments in controlling the costs and prices All matters pertaining to three financial sector of public services, reviewing system and procedure to regulators, viz., Reserve Bank of India (RBI), Insurance optimize outputs and outcomes of public expenditure. The Regulatory and Development Authority of India (IRDAI) principal activities of the Department include overseeing and Pension Fund Regulatory and Development Authority the expenditure management in the Central Ministries/ (PFRDA) are processed through this Department. It also Departments through the interface with the Financial functions as administrative department for Debt Recovery Advisors and the administration of the Financial Rules/ Tribunals (DRT) / Debt Recovery Appellate Tribunals Regulations/Orders, pre-sanction appraisal of major (DRAT). schemes/projects, handling bulk of the central budgetary resources transferred to State. The Department is responsible for appointment of key functionaries of the financial services sectorsuch The business allocated to the Department of as Governor / Deputy Governor of Reserve Bank of India, Expenditure is carried out through its Personnel & Chairman / Members of IRDAI and PFRDA, Chairman / Establishment Division, Public Finance-State and Public Managing Director and Chief Executive Officers (MD & Finance Central Divisions, Office of Chief Advisor Cost, CEOs)/Executive Directors (EDs)/ Non-official Directorsto Office of Controller General of Accounts and Central the Board of Public Sector banks/ insurance companies/ Pension Accounting Office. The Department has under other financial institutions. its administrative control the Arun Jaitley National Institute of Financial Management (AJNIFM), Faridabad, which The Department of Financial Services (DFS) is an autonomous body. oversees several key programs / initiatives of the Government concerning the Banking Sector, the 3. Department of Revenue Insurance Sector and the Pension Sector in India. The key flagship schemes being currently managed by the The Department of Revenue exercises control in Department include the Financial Inclusion scheme of respect of revenue matters relating to Direct and Indirect Pradhan Mantri Jan Dhan Yojana (PMJDY), the social Union taxes. The Department is also entrusted with the security schemes, namely Pradhan Mantri Jeevan Jyoti administration and enforcement of regulatory measures Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima provided in the enactments concerning Goods and Yojana (PMSBY), Atal Pension Yojana (APY) & Pradhan Services Tax (GST), Central Sales tax, Stamp duties and Mantri Vaya Vandana Yojana (PMVVY) and the credit other relevant fiscal statutes. Control over production and schemes namely Pradhan Mantri Mudra Yojana (PMMY) disposal of opium and its products is vested in this & Stand Up India (SUI). Department. Apart from this, Directorate of Enforcement, The information on number of Banks, FIU-IND, GSTN, CBN, CCF, CEIB, NIPFP are under the Insurance Companies and Financial Institutions are administrative control of Department of Revenue. as under. 4. Department of Investment and Scheduled Commercial Banks (as on 31.12.2022) Public Asset Management Public Sector Banks 12 The Department of Disinvestment was set up as a Private Sector Banks 21 separate Department on 10th December, 1999 and was Small Finance Banks 12 later renamed as Ministry of Disinvestment from 6th Payment Banks 3 September, 2001. From 27th May, 2004, the Department of Disinvestment is one of the Departments under the Regional Rural Banks 43 Ministry of Finance. Foreign Banks 46 The Department of Disinvestment has been re- TOTAL 137 named as Department of Investment and Public Asset M anagement (DIPAM) with effect from 14th April, 2016. Source : RBI Website xviiiIntroduction 2. Functions: Insurance Companies in India (As on 31.03.2022) The following subjects are being dealt by DPE: 2.1 Coordination of matters of general policy Private Public Total No. of affecting all Public Sector Enterprises. Sector Sector Insurers 2.2 Composition of Boards of CPSEs. (Public & Private) 2.3 Categorization of Central Public Sector Enterprises including conferring 'Ratna' status. Life Insurers 23 1 24 2.4 Matters relating to Permanent Machinery of General insurers 20 6 26 Arbitration for the Public Sector Enterprises. 2.5 Wage policy & manpower rationalization of Stand-alone Health 5 0 5 CPSEs. Insurers 2.6 Evaluation and monitoring the performance of Reinsurers 11 1 12 Public Sector Enterprises, including the Memorandum of Understanding mechanism. TOTAL 59 8 67 2.7 Review of capital projects and expenditure in Central Public Sector Enterprises. Financial Institutions (as on 31.12.2022) 2.8 Survey of Public Enterprises. 1 National Bank for Agriculture and Rural 2.9 Counselling, training and rehabilitation of Development (NABARD) employees in Central Public Sector 2 India Infrastructure Finance Company Ltd. Undertakings under Voluntary Retirement (IIFCL) Scheme. 3 Export-Import Bank of India (EXIM) 2.10 Rendering advice relating to revival, 4 Industrial Finance Corporation of India (IFCI) restructuring or closure of Public Sector 5 Small Industrial Development Bank of India Enterprises including the mechanisms therefor. (SIDBI) 2.11 Matters relating to Standing Conference of 6 National Housing Bank (NHB) Public Enterprises. 2.12 Matters relating to International Center for 7 National Bank for Financing Infrastructure and Development (NaBFID) Public Enterprises. 2.13 Identification of CPSEs under Non-Strategic sector for closure/ privatization and driving the 6. Department of Public Enterprises closure process. 1. Introduction : - 2.14 Monetization of Non-Core assets of CPSEs and other Government organizations. In their 52nd Report, the Estimates Committee of 3rd Lok Sabha (1962-67) stressed the need for setting 3. Organizational Structure: - up a centralized coordinating unit, which could also Department of Public Enterprises is headed by make continuous appraisal of the performance of public Secretary to the Government of India who is assisted enterprises. This led to the setting up of the Bureau of by an establishment with an overall sanctioned strength Public Enterprises (BPE) in 1965 in the Ministry of of 116 officers/personnel. The organizational structure Finance. Subsequently, as a result of the reorganization of DPE is at Annexure-1. The Department has the of the Ministries/Departments of the Union Government following constituent Divisions: in September, 1985, BPE was made part of the Ministry 3.1 Policy Division-I of Industry. In May, 1990, BPE was made a full-fledged Department known as the Department of Public Policy Division-I deals with the issues related to Enterprises (DPE). Before coming under the Ministry management of CPSEs including the Organizational of Finance vide Cabinet Secretariat Notification dated Structure, Composition of Boards and Categorization 6th July, 2021, Department of Public Enterprises was of CPSEs to appropriate Schedule and conferring part of the Ministry of Heavy Industries & Public 'Ratna Status' as per the Ratna scheme of Government Enterprises. of India. It also issues guidelines for below Board level xixAnnual Report 2022-2023 employees relating to personnel policies, service 3.5 Survey Division matters of CPSEs like reservation, voluntary retirement Survey Division collates information on important etc. The Division also handles matters related to physical and financial attributes of all CPSEs into a commercial disputes of CPSEs. comprehensive annual report "Public Enterprises 3.2 Policy Division-II Survey" and places the same in both the Houses of Parliament every year. Policy Division-II looks after all procurement related matters including MSMEs and GEM The Survey division also facilitates the laying of procurement. The Division also handles CSR the Reports of the Comptroller and Auditor General (Corporate Social Responsibility) related matters and (C&AG) of India (Commercial) in the Parliament. It also implements the CRR (Counselling, Retraining and follows up with the administrative Ministries / Redeployment) and RDC (Research, Development and Departments for submission of Action Taken Notes Consultancies) schemes of the Department. (ATN) on Audit Paras as and when requested by C&AG. The compilation of DPE guidelines is also part of 3.3 Wage Cell Survey Division. Wage Cell deals with the policy relating to pay 3.6 Disinvestment Division revision of CPSE executives at Board as well as below Disinvestment Division is responsible for the Board level and non-unionized supervisors, and issues implementation of new PSE Policy in Non-Strategic broad guidelines for wage settlement negotiations in Sector for identification of CPSEs for closure or case of workmen in CPSEs. Wage Cell also issues privatisation in Non-Strategic Sector driving the closure DA orders for both of IDA employees and CDA process. Division also handles monetization of Non- employees of the CPSEs. Core assets of CPSEs and other Government 3.4 MoU Division organizations. MoU Division deals with the implementation of 3.7 Administration and Coordination Division Memorandum of Understanding (MoU) framework for The Division handles all administrative and the purpose of performance evaluation of CPSEs. The coordination matters of DPE relating to personnel division also monitors and compiles the information on management, maintenance of personnel records CAPEX incurred by select CPSEs and their compliance including leave, salary, service book and Parliamentary on Corporate Governance parameters. matters. xxChapter - I Department of Economic Affairs I Department of Economic Affairs 1. Economic Division inaugural lecture was delivered by the Hon’ble Senior Minister of Singapore, Shri Tharman Shanmugaratnam The Economic Division tenders expert advice to on 8th July, 2022. the Government on important issues of economic policy. The Division monitors economic developments-domestic The work of the Economic Division is organized under and external and advises on policy measures relating to the following Units: macro management including agriculture, industry and  Macro, Industry, Services and Financial infrastructure sectors of the economy. As part of its intermediation and Financial Markets regular activities, the Economic Division brings out the  Agriculture and Food Management Economic Survey annually, which is laid before both Houses of Parliament one day before the presentation of  Infrastructure the Union Budget.  Climate Change Finance and Agriculture The Economic Survey provides a comprehensive  Social Sector overview of important developments in the economy. It  External Sector also analyses recent economic trends and provides an in-depth appraisal of policies. Over the years, the  Prices Economic Survey has acquired the status of an  IES Cadre Unit authoritative source and a useful compendium of the  Coordination annual performance of the Indian economy. Further, the Macro Unit Fiscal Responsibility and Budget Management (FRBM) Act, 2003 requires the Ministry of Finance to review every The Macro unit, Economic Division is primarily quarter the trends in Receipts and Expenditure in relation responsible for: (a) Monitoring macroeconomic to the Budget and lay it before both the Houses of parameters, such as, GDP, savings and investment and Parliament. In addition, at the end of first quarter and analysis of macroeconomic trends; (b) Preparation of third quarter, a Macro-Economic backdrop statement is Economic Survey (c) Preparation of Monthly Economic prepared and provided to the Budget Division for Report; (d) Country coordination for Special Data incorporating in the review of quarterly receipts and Dissemination Standard (SDDS); (e) Updating of the expenditure. National Summary Data Page of the economy for web- post in the Ministry of Finance’s website; (f) Annual The Division also brings out every month an updating of metadata in SDDS; (g) Preparation of State abstract entitled “Monthly Economic Report” which gives of Economy brief, giving an overview of the current the latest available data on the key sectors of the economic situation; (h) Preparation of briefs, material/ economy. The Division prepares, from time to time briefs speeches for G-20, World Bank, IMF and other meetings; on the performance of the infrastructure sector, agriculture (i) Framing replies of parliament questions. and industrial production, trends in tax collection, balance of payments and monetary situation. It also monitors the Budget Related Work: (a) Preparation of Macro-Economic price situation on a weekly basis. In addition, the Division Framework Statement for the Union Budget every year; undertakes short term forecasting of key economic (b) Macroeconomic backdrop for the statement on half variables. yearly review of the trends in receipts and expenditure in relation to the budget at the end of first half and second As part of its advisory functions, the Economic half of financial year; (c) Projection of GDP for giving to Division prepares analytical notes and background papers the Budget Division before the preparation of budget on important policy issues and provides briefs for meetings of the Consultative Committee and Working Public Finance Unit Groups set up by the Government. The officers of the Public finance unit is responsible for: (a) Economic and Economic Division participate in consultations with various Functional Classification of Central Government Budget; missions from international institutions with various (b) Statistical Album on Public Finance, including missions from international institutions such as budgetary transactions of Centre, State and Union International Monetary Fund (IMF), the World Bank and Territories; (c) Monitoring of Central fiscal parameters, the World Trade Organization (WTO) etc. The Division such as, fiscal deficit, revenue deficit, aggregate works in close cooperation with the Reserve Bank of India, expenditure; (d) Policies relating to central plan outlays, the NITI Aayog, the Central Statistical Organisation, the resources and expenditures; (e) Review of Fiscal position Ministry of Commerce and Industry and the Economic and analysis of fiscal issues; (f) Analysis relating to tax and Statistical Wings of their Ministries. The Division measures, direct and indirect tax proposals/ reforms; (g) also instituted an annual Arun Jaitley Memoral Lecture Providing inputs towards Macro-Economic Framework (AJML) as a tribute to the former Finance Minister. The Statement for the Union Budget every year. 1Annual Report 2022-2023 Agriculture and Food Management Unit unions, civil society organizations, health, welfare and women’s organizations/ experts etc.; (h) Handling VIP/ Agriculture and Food Management unit is responsible for: Parliament/Other references related to the themes in (a) Providing policy advice on issues and matters related social sector; (i) Occasional review/reports on specific to Agriculture and Food Management; (b) Examining/ issues as and when required; (j) Organizing workshops/ Appraising Cabinet/ CCEA/ CoS/ EFC and other policy notes on fixing Minimum Support Prices (MSPs) for major inter-departmental meetings on specific themes. crops/crop insurance policy/ other agricultural policies External Sector Unit including those related to change duty structure; (c) (A) Trade & Balance of Payments PreBudget meetings with stakeholders in farm sector; (d) Briefs for and appearances before the Parliamentary (a) Monitoring and analyzing the developments in India’s Standing Committee on Agriculture related issues; (e) Trade and Balance of Payments (BoP) and providing Participation/Membership of Committees on related policy inputs/ briefs/ comments, etc., relating to subjects like Private Entrepreneurs Guarantee (PEG) same.(b)Analysis of recent trends and developments in schemes of Food Corporation of India (FCI); (f) Analyzing India’s trade and BoP which culminates into the External production and area sown in Rabi and Kharif crops; (g) Sector Chapter published in Economic Survey. Occasional review/ reports on specific issues as and when (c)Preparation of a monthly trade note based on the press required like “Incentivizing Pulses Production Through release of the Department of Commerce for the perusal Minimum Support Price (MSP) and Related Policies”; (h) of the Secretary, DEA and Chief Economic Adviser (CEA). Periodical monitoring of progress of Area sown/ Monsoon/ (d)Matters relating to Short-term Balance of Payments Rainfall distribution using inputs of the Crop Weather (STBoP) Monitoring Group. (e)Economic Activity tracker: Watch Group (CWWG); (i)Analytical issues related to Data maintenance and updation of India’s key trade and Public Distribution System (PDS), buffer stock norms and BoP indicators on a weekly/monthly/ quarterly/annual food security and MSP analysis like proportion of sales basis as per availability of data. (f)Policy inputs f or Hon’ble below MSP in several markets during the procurement FM, MOS, Secretary on: (i) Parliamentary debates and season; (j) Analysis of issues related to Allied sectors questions related to trade and BoP (ii) Speeches related like dairy sector, fisheries, forestry and food processing; to important economic events(iii)Leading economic (k) Preparation of the Chapter on ‘Agriculture and Food discussions at bilateral and multilateral forums such as Management’ for Annual Economic Survey; (l) Handling G-20, World Bank, IMF, OECD, concerning India’s trade VIP/ Parliament/ Other references and Private Member & BoP position. Bills related to agriculture and food management; (m) Offer comments on Studies/ MoUs/ International (B) External Debt Management Unit Agreements/ Income tax exemptions to International (a) Publication of an Annual Status Report on India’ Organizations dealing with agriculture & food External Debt, based on inputs from relevant stakeholders management. like Reserve Bank of India (RBI) Aid, Accounts & Audit Industry and Infrastructure Unit Division, Ministry of Defence, SEBI, etc. (b)Publication of Quarterly Report on India’s External Debt for the two Industry Unit advises the Government on policy issues quarters ending September and December, through relating to Industry at both macro and sectoral levels. collection and compilation of data from different The unit regularly monitors and reviews industrial growth stakeholders. The remaining two quarters’ reports are and policies related to public sector. The Unit is also published by RBI. (c)Collection, compilation and provision responsible for monitoring trends in production of core of inputs on India’s External Debt data on quarterly basis infrastructure industries. It undertakes analysis of developments in infrastructure sector, renders advice on to World Bank for its centralized database called, infrastructure sector policy issues ‘Quarterly External Debt Statistics (QEDS)’, in compliance with IMF’s Special Data Dissemination Standard Social Sector (SDDS)requirements. (d) Dissemination of India’s The unit is responsible for: (a) Providing policy advice on defence debt data on a quarterly basis to all relevant issues related to social infrastructure, employment and stakeholders. human development; (b) Analysis of labour issues, (e) Monitoring and analyzing the developments in India’s employment trends, health, education and other topics External debt and providing policy inputs/ briefs/ concerning social sector; (c) Examining/ Evaluating comments, etc., relating to same. (f) Analysis of recent results of employment and unemployment surveys; (d) trends and developments in India’s external debt and Examine/ Appraise Cabinet Notes/CoS/EFC/ SFC/PIB/ incorporate a section on the same in the External Sector CEE notes on labour and skill development including Chapter published in Economic Survey. (g)Issues relating various issues related to health, education, social empowerment, gender issues, rural development etc. to foreign exchange reserves and exchange rate (h) those received from the other Divisions in DEA; (e) Policy inputs for Hon’ble FM, MOS, Secretary on: (i) Participation/membership of Standing Committee on Parliamentary debates and questions related to external Labour Force Statistics; (f) Preparation of chapter on debt (ii) Leading economic discussions at bilateral and ‘Social Infrastructure and Employment’ for Annual multilateral forums such as G-20, World Bank, IMF, Economic Survey; (g) Pre-budget meetings with labour OECD, concerning India’s external debt sustainability. 2Department of Economic Affairs I Services Unit to developing countries, innovative and affordable financing options for climate transition by preparing The unit is responsible for: (a) Preparing the Chapter on positions papers and analysis of technical issues and Services Sector for the Economic Survey; (b) Monitoring policy options. The Unit is also responsible for preparing the performance of services trade; (c) Parliament Matters; and finalizing the chapter on climate change for the (e) Comments on Notes related to trade in services, WTO Economic Survey. negotiations in Services, etc. The unit is actively engaged in the sustainable finance Prices Unit working group of the finance track in G20. One of the The unit is responsible for: (a) Inflation monitoring based flagship priorities for the Indian presidency under the on the following Price Indices: (i) Wholesale Price Index finance track is climate finance, work on which is being (WPI), base: 2011-12=100; (ii) Consumer Price Index carried out in CCFU. CCFU’s key responsibilities in G20 (CPI)- Rural, Urban, Combined, base: 2012=100; (iii) involve engagement with G20 member countries, invitees, Consumer Price Index for Industrial workers (CPI-IW), international organisations, and domestic and base: 2016=100; (iv) Consumer Price Index for international knowledge partners. A presidency input Agricultural Labourers (CPI-AL), based on 1986-87=100; paper on the mechanisms for mobilisation of timely and (v) Consumer Price Index for Rural Labourers (CPI-RL), adequate resources for climate finance with contributions based on 1986-87=100. (b) Price/inflation related issues: from knowledge partners was prepared and circulated in (i) issues related to domestic and international price G20 by this unit. behavior; (ii) issues related to seasonal price behavior; IES Cadre Unit (iii) issues related to Price Policy and inflation management; (iv) Preparation of Monthly Inflation IES Cadre Unit The unit is responsible for: (a) Career Reports; (v) Drafting chapter on prices for pre-budget Management and Placement of Officers; (b) Direct Economic Survey. (c) Committees/ Working groups: (i) Recruitment into IES through Examination conducted by Participation in the various committees on price indices UPSC; (c) Examination Rules & Syllabus for IES (CPI, WPI and RESIDEX); (ii) Participation in Macro Examination; (d) Promotion of Feeder Post Holder to financial monitoring group constituted under DEA; (iii) Junior Time Scale (Entry level) of IES; (e) IES (service) Participation in the meeting of Committee of Secretaries Rules and policy Matters pertaining to IES; (f) Promotions/ on Review of prices of essential commodities. non-functional Up-gradations to various levels by Money and Banking Unit conduction/ arranging meetings of the Departmental Promotion Committee; (g) Cadre Clearance for The unit is responsible for: (a) Monitoring of money Deputation, study leave and other kinds of leave; (h) market trends and developments in monetary policy; (b) Empanelment of officers at various levels; (i) Seniority Monitoring of banking policy and aggregate trends in List/ Civil list of IES Officers; (~) Seniority of Officers in credit flows; (c) Fortnightly analysis of the monetary parameters; (d) Monitoring yields on G-Sec/ Treasury the Feeder Grade and Roster Management of Induction Bills; (e) Monitoring behavior of Call Money Rates and Quota; (k) Training Programmes for In-Services officers LAF operations; (f) Periodical updates on monetary policy and Probationers based on training needs assessment and Quarterly Reviews of RBI. for capacity building of officers; (l) Cadre Review and restructuring of IES; (m) Maintenance of APARs of IES Climate Change Finance Unit officers; (n) Budget of IES Cadre, Annual Accounts etc.; The Climate Change Finance Unit serves as the nodal (o) Court Cases, Vigilance Cases and Disciplinary point on all financing matters related to climate change Matters; (p) Maintenance of IES website. in the Ministry of Finance and conveying inputs to Ministry Coordination Unit of Environment Forest & Climate Change. The unit is extensively engaged on climate finance issue in meetings The Unit is responsible for (a) Internal Administration and under G20, especially in Finance Track, and other Coordination in Economic Division; (b) Organizing environment related meetings of various national and Finance Minister’s Pre-Budget meetings with various international fora. It helps shape the firming up of India’s stake holders; (c) Nomination of officers of Economic stand on financing issues related to climate change and Division for Foreign Deputation to OECD meeting and sustainable development in fora like United Nations other meetings and workshops;(d) Coordination with all Framework Convention on Climate Change (UNFCCC), Units of Economic Division for publishing Economic etc. It is vested with the task of preparing submissions Survey and laying them before Parliament; (e) Organizing on behalf of India as well as assessing submissions of Arun Jaitley Memorial Lecture, the annual International other member countries in these fora. The Unit frames Conference on thematic issues; (f) Coordination of inputs on an on-going basis on issues related to National Parliament work, RTI matters, VIP references, public Action Plan on Climate Change and on other emerging grievances etc;(g) All administrative matters of Economic issues like definition of climate finance, new collective Division viz. transfer/posting of Officers of Economic quantified goal on mobilization of finance from developed Division within Economic Division. 3Annual Report 2022-2023 2. Budget Division by the Parliament. The Second Batch of Supplementary Demands for Grants 2022-23 will be laid in Parliament in 2.1 RESPONSIBILITIES the month of March, 2023. 2.1.1 Budget Division is responsible for the preparation 2.2.3 During this year (till February, 2023), 8 new of and submission to the Parliament, the Annual Budget Guarantee proposals have been approved for a total as well as Supplementary and Excess Demands for amount of Rs. 66643.18 crore. Grants of the Central Government and of States under 2.3 STATES SECTION: President’s Rule. The Division also deals with issues relating to Public Debt, Market Loans of the Central 2.3.1 States Section is assigned the work relating to Government and guarantees given by the Government the following: of India and the administration of Contingency Fund of  Release of States’ share of Central Taxes and India. Processing of proposals from other Ministries/ duties to State Governments as per approved Departments for re-appropriation of savings in a Grant recommendations of the Finance Commission. where prior approval of the Ministry of Finance is required  Work relating to the Constitution of the Finance is also handled by Budget Division. The Division also Commission and processing of its reports. handles the issues pertaining to National Savings Institute (NSI), Small Savings Schemes and National Defence  Matters relating to financial provisions of various Fund. The work relating to Treasurer, Charitable States’ Re-organisation Acts monitoring and Endowment is also assigned to the Budget Division. review of repayment of Central loans and payment of interest by State Governments. 2.1.2 Budget Division is assigned the matters relating to Duties, Powers and Conditions of Service of the  Processing and presentation of Budget and Comptroller and Auditor General of India including Supplementary Demands for Grants to submission of the Reports of the Comptroller and Auditor Parliament in respect of States under President’s General of India relating to the accounts of the Union to Rule. the President for being laid before Parliament, 2.4 PLANNING AND ALLOCATION SECTION: entrustment/re-entrustment of audit of various 2.4.1 The Planning & Allocation Section is responsible autonomous bodies/organizations to the C&AG of India, for finalization of Ministry/Department wise Gross etc. Budgetary Allocation, finalization of estimates of Extra- 2.1.3 The Budget Division is responsible for budgetary Resources (EBRs) and their monitoring, administration of “Fiscal Responsibility and Budget reporting etc. The details of EBRs raised are provided in Management Act, 2003” which was brought into force Statement 27 of Expenditure Profile of Union Budget. w.e.f. 5th July, 2004. Statements of Fiscal Policy, half 2.4.2 This Section also handles issues concerning yearly Reviews including Mid-term Review and disclosure earmarking of funds for welfare of Scheduled Castes & statements have been presented in Parliament in Scheduled Tribes by obligatory Ministries/Departments accordance with the requirements of the FRBM Act. as prescribed in NITI Aayog’s guidelines. The detail of 2.1.4 The work relating to form of Accounts kept under fund allocation for SCs/STs by the obligatory Ministries/ Article 150 of the Constitution of India is also handled in Departments is provided in Statement No.10A & 10B of this Division. Advice on the classification of Government the Expenditure Profile of Union Budget. receipts and expenditure and on the accounting 2.5 NATIONAL SAVINGS SECTION: procedure drawn up for implementation of new schemes of the Government is also rendered by the Division. 2.5.1. Small Savings Schemes: 2.1.5 Union Budget 2023-24 was also delivered in Following Small Savings Schemes are currently paperless form as was done during 2022-23. administered by Budget Division in Department of 2.2 SUPPLEMENTARY DEMANDS SECTION: Economic Affairs: 2.2.1 Supplementary Demands Section is responsible  Post Office Savings Account for coordination and presentation of Supplementary  National Savings Time Deposits (1,2,3 & 5 years) Demands for Grants, Demands for Excess Grants and  National Savings Recurring Deposits the connected Appropriation Bills and parliamentary work in this regard. Other activities of the Section relate to  National Savings Monthly Income Scheme administration of the Contingency Fund of India Act, 1950  Senior Citizens Savings Scheme overall policy related to Central Government Guarantees  National Savings Certificate (VIII-Issue) and Statement of Annuity and making necessary  Public Provident Fund disclosures thereof in the Budget Documents.  Kisan Vikas Patra 2.2.2 During the Financial year 2022-23, the First Batch of Supplementary Demands for Grants 2022-23 and  Sukanya Samriddhi Account. connected Appropriation Bill was presented and passed  PM CARES for Children Scheme, 2021 4Department of Economic Affairs I 2.5.2. Small Savings Collections: the Fourteenth Finance Commission, it has been decided The gross deposits under various small savings to advance NSSF loans only to the willing States w.e.f. schemes during 2022-23 are estimated (RE) at Rs. 01.04.2016. Accordingly, only three States, namely, Delhi, 11,87,463.96 crore as against the deposit of Rs. Kerala and Madhya Pradesh have opted for the NSSF 10,49,795.48 crore during 2021-22(provisional). An loan. Besides, it has also been decided to invest NSSF amount of Rs.14,635.65 crore (RE) is estimated to be corpus in various Public Agencies (National Highways transferred, as share of net small savings collections to Authority of India, Food Corporation of India, Air India Kerala, Madhya Pradesh and UT of Delhi during the etc.). During the current financial year, an amount of current fiscal, as against the sum of Rs. 28,690.18 crore Rs.350 crore is estimated to be extended in these transferred to these states and UTs (with Legislature) agencies. during 2021-22. 2.5.4. Interest Rates on Small Savings Instruments 2.5.3. National Small Savings Fund: Interest rates on Small Savings Schemes are In order to account for all the monetary decided/ notified by Government every quarter of the transactions under small savings schemes of the Central Financial Year. Government under one umbrella, the “National Small The rate of interest on Small Savings Schemes is decided Savings Fund” (NSSF) was set up in the Public Account of India w.e.f. 1st April, 1999. The net accretions under in view of the recommendations of Shyamala Gopinath the small savings schemes were being invested in the Committee. The committee has recommended to align Special Securities of State Governments and U.T.s (with the rate of interest on Small Savings Schemes with the legislature). However, based on the recommendation of G-Sec rates of similar maturity. The rate of interest on various small savings schemes for the FY 2022-23 is given below: Rate of Interest in FY 2022-23 (in %) 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 6.6 2 Year Time Deposit 5.5 5.5 5.7 6.8 3 Year Time Deposit 5.5 5.5 5.8 6.9 5Year Time Deposit 6.7 6.7 6.7 7.0 5 Year Recurring Deposit 5.8 5.8 5.8 5.8 5 Year SCSS 7.4 7.4 7.6 8.0 5 Year MIS 6.6 6.6 6.7 7.1 5 Year NSC 6.8 6.8 6.8 7.0 PPF 7.1 7.1 7.1 7.1 Sukanya Samriddhi Account 7.6 7.6 7.6 7.6 Kisan Vikas Patra 6.9 (will mature 6.9 (will mature 7.0 (will mature 7.2 (will mature in 124 months) in 124 months) in 123 months) in 120 months) 2.6 WAYS AND MEANS SECTION 2.6.1.2.During the financial year 2022-23, Government has planned to borrow Rs.14,21,000 crore through dated 2.6.1 Government Borrowings securities, out of which till Feb 13, 2023 borrowing to the 2.6.1.1 The Ways & Means Section is responsible for extent of Rs.13,67,000 crore (gross) has been implementation of the Government Market borrowing accomplished. The borrowing also includes Sovereign (including T-Bills) programme in coordination / Green Bond issuance of Rs. 16,000 crore. consultation with the Reserve Bank of India and PDMC. 2.6.1.3.The weighted average yield and maturity of It administers the two appropriations namely Interest dated securities issued during 2022-23 (April 01, 2022 Payments and Repayment of Debt. It also handles the to Feb 13, 2023) were 7.32 % and 15.99 years responsibilities related to cash management, Sovereign respectively (including Sovereign Green Bonds), as Gold Bond Scheme, issuance of Sovereign Green compared to 6.28 % and 16.98 years in the Bonds etc. corresponding period of the financial year 2021-22. 5Annual Report 2022-2023 2.6.1.4. The Government debt is held predominantly (as % of GDP) (approx. 95%) in domestic currency. Outstanding Fiscal Indicator/ 2021-22 2022-23 2023-24 external debt is financed by multilateral and bilateral Year (RE) (BE) agencies at concessional rates. Internal debt consists largely of marketable and non-marketable securities. A Fiscal Deficit 6.7 6.4 5.9 low roll-over risk is signified through debt maturing Central Government within the next 5 years. This accounted for about 30 debt* 58.8 57.0 57.2 per cent of total outstanding stock of G-Secs at end- Note: Dec, 2022. Detailed analysis of existing debt and (i) GDP for the FY 2021-22 is 236.65 Lakh crore and for liabilities of the Government is brought out in the annual FY 2022-23 is 273.08 Lakh crore issued by M/o debt papers (available on https://dea.gov.in/public-debt- Statistics & Programme Implementation on management). 06.01.2023. 2.7 FISCAL RESPONSIBILITY AND BUDGET (ii) The GDP for BE 2023-24 has been projected at 301.75 lakh crore assuming 10.5% growth over the MANAGEMENT SECTION estimated GDP of 273.08 Lakh crore for 2022-23 2.7.1 Administration of the Fiscal Responsibility and (RE). Budget Management Act (FRBM), 2003 and the Rules (iii) GDP is the Gross Domestic Product at current market framed there under is the prime function of the FRBM price. Section. The FRBM Act, 2003 provide for the * Central Govt. debt include external public debt valued responsibility of the Central Government to ensure inter- at current exchange rates, total outstanding liabilities generational equity in fiscal management and long-term on Public Account including investment in Special macro-economic stability by removing fiscal impediments Securities of States under NSSF and EBR liabilities etc. in the effective conduct of monetary policy and prudential 2.8 PUBLIC DEPOSITS SECTION debt management consistent with fiscal sustainability 2.8.1 Public Deposits Section, Budget Division is also through limits on the Central Government borrowings, responsible for fixation of rate of interest on the following: debt and deficits, greater transparency in fiscal operations of the Central Government and conducting fiscal policy a) House Building Advance (HBA) in a medium-term framework and for matters connected b) General Provident Fund (GPF) and other therewith or incidental thereto. similar Funds 2.7.2 During the period from January 1, 2022 to c) Special Deposit Scheme (SDS) December 31, 2022 in compliance with the relevant d) Employees Provident Fund (EPF) provisions of the FRBM Act and Rules framed thereunder, e) Seamen’s Provident Fund (SPF) the following documents were prepared and laid before f) Coal Mines Provident Fund (CMPF) both Houses of Parliament: g) National Defence Fund(NDF) A) Statements of fiscal policy presented with Budget h) Computer Advance 2022-23 2.8.2 Apart from the above, the responsibility of a) Medium-Term Fiscal Policy cum Fiscal Policy compilation, monitoring and review of Non Tax Revenue Strategy Statement Receipts also rests with PD Section. b) Macro-Economic Framework Statement 2.9 REPORT AND COORDINATION SECTION: B) Disclosure statements presented with Budget 2.9.1 During the above period, Budget Division also 2022-23: coordinated the Pre-Budget Meetings for finalization of a) Tax Revenues raised but not realised Revised Estimates 2022-2023 and Budget Estimates b) Arrears of Non-Tax Revenues 2023-2024. Work relating to security and other c) Asset Register arrangements in connection with presentation of Union Budget in the Parliament is also a part of the C) Half yearly Statements on Review of the trends in receipts and expenditure in relation to the responsibilities handled by the Division. budget at the end of- 2.9.2 From 1st April, 2022 to 28th February, 2023, 42 a) Second Half of the Financial Year 2021-22 Reports of the C&AG of India were laid before the b) First Half of the Financial Year 2022-23 Parliament and 28 proposals of entrustment/re- entrustment of audit of various bodies to the C&AG of 2.7.3 Fiscal indicators in FY 2021-22 and targets for RE 2022-23 and BE 2023-24 are as below: India were dealt by this Division. 6Department of Economic Affairs I 2.10 PUBLIC DEBT MANAGEMENT CELL: Debt for year 2019-20 and 2020-21 was released last on April 13, 2022. The work on Status Paper on Government 2.10.1 A Middle Office (MO) was set up in the DEA, Debt for year 2021-22 is in progress and the same will MoF in September 2008 to advise the Government on be released shortly. This report covers various facets of public debt management. Subsequently, upon the public debt including overall debt position of the country, announcement in Lok Sabha in April 2015 by Hon’ble assessment on aspects of debt sustainability, debt Finance Minister, consultations were held with RBI and management strategy covering various risks, etc. This other stakeholders on establishment of Public Debt publication now brings all components of public debt Management Agency in India and it was decided to initially under the Debt Management Strategy, thus widening its set up a Public Debt Management Cell (PDMC) as an scope and acts as a guide to debt managers in carrying interim arrangement. This was considered necessary to out day to day debt management. The PDMC also ensure separation of debt management functions form publishes quarterly report on Public Debt and is also RBI in a gradual and seamless manner, without causing responsible for uploading the public debt related data on market disruptions. Accordingly, a Public Debt National Summary Data Page. Management Cell (PDMC) was set up in DEA on October 4, 2016. Formation of PDMC was also the first step 2.10.5 The PDMC also prepares various internal MIS towards consolidation of all components of public debt reports on the development in primary and secondary under one agency and consolidation of public debt related markets to keep the Government informed of these data at one point. It was also decided that the work for development and also initiate necessary action, if moving towards PDMA would be taken up in a phased necessary. manner. 2.10.6. PDMC was also involved in the Government of 2.10.2 Considering the extant legal provision, only India’s first ever Sovereign Green Bond Issuance. As advisory functions were assigned to PDMC to avoid any announced in the Union Budget 2022-23, the Government conflict with the statutory functions of RBI. In view of of India, as part of its overall market borrowings, issued electronic infrastructure created by RBI, it was also Sovereign Green Bonds (SGrBs) for an aggregate amount of Rs 16,000 crore in the second half of the fiscal agreed that the operations concerning Front Office, year 2022-23, for mobilising resources for green comprising of electronic auction system and Back Office, infrastructure. The proceeds would be deployed in public comprising of depository and registry services would sector projects which help in reducing the carbon intensity continue to be housed with RBI even with an independent of the economy. PDMA coming into being. 2.11 BUDGET PRESS: 2.10.3 Since then, the PDMC has been playing important role in public debt management through planning the 2.11.1 Budget Press is responsible for printing of all borrowing of GoI, formulating debt management strategy, Budget Documents relating to the Union Budget including cash monitoring and management, increased interaction Detailed Demand for Grants of Ministry of Finance and with market participants etc. Cash management has Supplementary Demands for Grants. During the year become important due to sharp fluctuations being seen 2022-23, the Budget Press contributed in preparation of in the Govt. receipts and payments for last three years. paperless Union Budget 2023-24, which was successfully presented on 1st Feb, 2023 in the Parliament. This 2.10.4 Other major function undertaken by PDMC is involved timely preparation & consolidation of total 24 dissemination of information on public debt through documents (English/Hindi) in digital format for uploading periodical reports. Towards ensuring the enhanced in the Union Budget website/App. Apart from this, 176 transparency in public debt management operations, the various documents including 71 jobs of G-20 documents Government of India has been publishing a number of and 11 progress report of MOS office were executed in documents detailing overall debt position of the country, all with as many copies required during 1.4.2022 to consolidated debt data relating to public debt, debt 06.03.2023. management strategies of central government debt, etc. These publications include an annual Government Debt 2.11.2 Apart from above, the Budget Press printed First Status Paper (since 2010), Handbook of Statistics on Batch of Supplementary Demands for Grants for the year Central Government Debt (since 2013) and Debt 2022-23, Detailed Demands for Grants for the year 2023- Management Strategy document (2015). Government 24, Action Taken Report, Cabinet Note (Hindi & English) has consolidated all these publications into a single report and several Discussion Paper. The Annual Report 2022- ‘Status Paper on Government Debt’ to bring complete 23 and the Second Batch of Supplementary Demands Government Debt and its Management related for Grants for the year 2022-23 will also be printed during information at one place. Status Paper on Government February-March, 2023. 7Annual Report 2022-2023 2.12 HINDI BRANCH: Official Language Implementation Committee have been held so far, which have been held on February 18, 2022 2.12.1 Official Language Activities and November 15, 2022, the remaining meetings are to During the year, the progress of implementation be held before the end of the financial year. of various programs under the Official Language Policy 2.12.7 Circulation of Annual Program has been continuously reviewed. The Annual Program for the year 2022-23 issued by the All documents were presented bilingually in the Department of Official Language, Ministry of Home Affairs Parliament. Section 3(3) of the Official Languages Act, was circulated on 19th May, 2022 to all the Sections/ 1963 and Rule 5 of the Official Language Rules, 1976 Divisions of the Ministry including the Subordinate Offices made thereunder and other instructions issued by the Department of Official Language were fully complied with. and put on the dash board in the e-office of the Ministry. During the year several steps were taken in the 2.12.8 Projected Schemes department to increase the use of Hindi in official work. (i) Hindi Advisory Committee meeting is to be 2.12.2 Hindi fortnight organized as soon as the works related to the budget Like other years, this year also “Hindi Fortnight” and the economic review are completed, along with it is was organized in the Department of Economic Affairs proposed to start an Official Language Shield scheme, from September 14, 2022 to September 30, 2022. In order under which the subordinate offices of the department to promote the use of Hindi in the department, various will be encouraged for the remarkable work being done competitions were organized to create a conducive in the field of implementation of the official language and environment. they will be provided shield and citation. 2.12.3 Bilingual Website (ii) A Hindi workshop related to the official The website of the department is bilingual. language will be organized for the purpose of spreading Besides other material, all budget document, economic information about the rules and instructions related to survey and other publications and important circulars the official language policy to all the sections. were uploaded simultaneously in Hindi and English. (iii) Apart from this, there is also a proposal to 2.12.4 Official Language Inspection organize a Hindi conference in the department, which can be done only after the budget session. To ensure compliance of the Official Language Act, rules made thereunder and annual program and 2.12.9 Translation Work orders and instructions related to official language, etc., All Budget documents are presented to in the period from 27/04/2022 to 07/12/2022, a total of 18 inspections were carried out in the subordinate offices of Parliament in Hindi and English. Besides Budget the department i.e. SEBI, SPMCIL and NSI, including the documents, Hindi Translation Branch has also prepared Head Offices and their attached offices in which Director Hindi versions of Supplementary Demands, Reports on (O.L.), Deputy Director (O.L.), Assistant Director (O.L.) Public Statistics and Status Report of External Debt, and the Translation Officers of the section participated. FRBM Quarterly Reports which were laid before the Parliament. 2.12.5 Dispatch of Quarterly Progress Report The translation of the other official documents The Quarterly Progress Reports of the Ministry as envisaged in the official Language Act, 1963 and Rules were collected from all the Sections/Divisions of the made thereunder, was also undertaken by the Hindi Department. The consolidated quarterly progress report Branch during the year under report. These include was sent to the Department of Official Language, Ministry agreements with Foreign governments and International of Home Affairs. Agencies, Cabinet Notes, Parliament questions/ 2.12.6 Central Official Language Implementation assurances, notifications, Standing Committee papers, Committee Meetings Action Taken reports, monthly summary for the Cabinet, During this financial year, two meetings of the Official letters and External funding Report. 8Department of Economic Affairs I 3. Financial Markets Division Appellate Tribunal (SAT). The division facilitates the sovereign credit rating by various credit rating agencies and financial regulatory dialogues with USA, 3.1 Introduction UK and Japan and EU. Financial Markets Division is primarily responsible for policy issues related to the development FM Division is also responsible for the of the securities markets and matters incidental thereto. administration of SEBI Act 1992, Foreign Exchange The Division is also responsible for policy matters relating Management Act (FEMA) 1999, International Financial to foreign exchange management. Since 2013, the Services Centres Authority Act, 2019, Securities Contracts Division is entrusted with the development of Regulation (SCRA) Act 1956, Depositories Act, 1996 and commodity derivative markets. The division looks after Section 20 of the Indian Trust Act, 1882 and related the administrative matters of the Securities and regulations and notifications thereunder. Issues related Exchange Board of India (SEBI), International Financial to erstwhile Forward Contracts (Regulation) Act, 1952 is Services Centres Authority (IFSCA) and Securities also handled in the FM Division. Organogram Joint Secretary (FM) DIR (RE ,IC&- JD(PM DIR(SM IG & JD(EM & ECB) JD(CD) ) &Coord) JPCJPC) IFSCA) (PD MD ) (coU rS d ) (SD MD 1 ) (SD MD 2 ) (EA MD 1 ) DD (IC) D SCD A(I )F ) US (RE) (CU DS ) (D CDD ) 3.2 Sections in Financial Market Division 5. Financial literacy The various Sections and their work allocation are 6. Corporate governance of companies given below (each of the sections handle the 7. Matters related to National Institute of Securities parliament questions, grievances, RTIs, court cases Market (NISM) miscellaneous references etc. belonging to their 8. Policy articulation on agenda items of SEBI's Board work areas): meetings (primary responsibility) I. Primary Markets (PM) Section 9. SEBI Act and related rules and regulations 1. Policy formulation on issues relating to initial and 10. Investment Guidelines for N o n further issue of capital and related intermediaries Government Provident Funds, Superannuation engaged in the same such as Funds and Gratuity Funds (a) Mutual funds, 11. Coordinating DEA-NIFM Research Programme (b) Collective investment schemes, 12. Sectoral Charge of Ministry of Corporate Affairs. (c) Alternative investment funds, II. Secondary Markets Section 1. Policy issues of Secondary Market and related (d) Domestic credit rating agencies, Market Infrastructure Institutions (MIIs), (e) Merchant Banks etc. Intermediaries and Participants (Stock Exchanges, Clearing Corporations, Depositories their 2. Matters related to Corporate Governance and participants, Trading Members, and Investment Minimum Public Shareholding. Advisors etc.), their ownership and governance 3. Policy issues related to Mergers, takeovers and issues etc. acquisitions 2. Social Stock Exchange/SME Exchange/New 4. Development of Corporate bond market Segments/ platforms for trading in securities /crowd funding platforms 9Annual Report 2022-2023 3. Taxes and Stamp Duties in Securities Market 8. NSEL scam related matters: holding inter- ministerial, inter-agency periodic review meetings 4. Skilling in securities market /capacity building on NSEL scam initiatives 9. Negative Oil price settlement related matters 5. Delisting of companies and associated policy 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 3. American Depository Receipts/Global 9. Self-Regulatory Organizations Depository Receipts/ Indian Depository Receipts 10. Cyber security related matters in context of 4. FEMA Regulations of RBI Securities Market 5. Global Bond and Equity Indices 11. Regulation of distributors /distribution of financial 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 Ministers/ Ministers/MLAs/Administrators/Officers 14. Ratification of UNIDROIT / Geneva Securities of States and Union Territories Convention 9. Sectoral charge of Ministry of Law and Ministry of 15. Securities Contracts (Regulations) Act, 1956 and Parliamentary Affairs related Rules and Regulations 10. Bilateral Trade arrangement with Iran 16. Depositories Act, 1996 and related Rules and Regulations V. External Commercial Borrowings (ECB) Section III. Commodity Markets Section 1. External Commercial Borrowings, Trade Credits 1. Policy matters related to development of commodity and Offshore Rupee denominated Bonds [Masala derivatives market: Design of new products / bonds] contracts, entry of new players - domestic as well 2. Foreign Exchange Management Act as foreign, harmonization of rules and procedures 3. Currency Derivatives with securities market, encouraging hedging by government entities / farmers etc. 4. Trade payments mechanisms with specific countries 2. Notifying commodities for trading: Resumption/ suspension of futures trading in various notified 5. FEMA Rules including Non Debt Instruments Rules commodities /Launch of Plain Vanilla Options and Current Account Rules Contract 6. Approval for establishment of Liaison office / Branch 3. Integration of Commodity spot and derivatives office/ Project Office in India by Foreign entities market: 7. Approval for purchase of immovable property in 4. Commodity derivatives trading related matters: India by foreigners/ non- residents cases of manipulation/speculation etc. 8. Approval for opening Non Resident Ordinary (NRO) 5. Representing DEA in futures market related matters and Non Resident Rupee (NRE) Accounts by in the inter-ministerial committees on Essential foreigners/ non-residents Commodities' price rise etc. VI. International Financial Services Centres 6. Representing DEA in Commodity Derivative Authority (IFSCA) Advisory Committee of SEBI - processing CDAC 1. Administration of the IFSCA Act, 2019 and framing agenda items of Subordinate Legislation under the Act 7. Delivery arrangements in the market: Taking up 2. Policy formulation on issues related to IFSCA Act, matters related to warehouses accredited by stock 2019 and related rules and regulations exchanges with WDRA and Ministry of Consumer 3. Facilitating overall development of core and niche Affairs 10Department of Economic Affairs I segment in the financial ecosystem of IFSC through 9. Foreign visits of the Chairman of SEBI; hosting of inter departmental coordination on areas including– meetings of foreign delegations - obtaining the necessary clearances • Aircraft Leasing and Financing • Bullion Trading VIII. International Cooperation (IC) Section • Fin Tech [Make it a bullet point] 1. Facilitating Sovereign Credit Rating of India (Fitch, Moody's, S&P, DBRS, JCRA, R&I) • Insurance/Re-Insurance • Banking 2. Coordinating DEA - NIPFP Research Programme • Fund Management 3. Indo-US Financial Regulatory Dialogue /Indo-US Financial Initiative • Global-In-House Centres • Others 4. Indo Japan Financial Regulatory Dialogue 4. Preparation of Cabinet Notes for signing of bilateral 5. India-UK Financial Market Dialogue and multilateral MoUs by IFSCA for strengthening 6. Indo-UK Financial Partnership mutual co-operation with overseas financial 7. India-EU Financial Regulatory Dialogue regulators/authorities 5. Facilitating international outreach by IFSCA and 8. Other International matters GIFT City 9. Interactions with financial analysts and economists 6. Enhancing inter regulatory coordination between IX. Joint Parliamentary Committee (JPC) and SEBI, RBI, IRDAI, PFRDA to enable comprehensive Investor Grievances (IG) Section regulations and new financial products/services in IFSC 1. Matters related to Section 20 of Indian Trust Act 1882 7. Firming up of agenda items related to development of IFSC under various economic and financial 2. Preparation of Progress Report on Action taken on dialogues recommendations of Joint Parliamentary Committee (JPC) on Stock Market Scams and VII. Regulatory Establishment (RE) Section matters related thereto. 1. Carrying out Board level appointments of Securities and Exchange Board of India(SEBI), appointment 3. Matters related to Nizam Trust of Presiding Officer, Members and Registrar of 4. Handling of Investors' Grievances (Electronic & Securities Appellate Tribunal (SAT) and Physical) related to FM Division/ transferring of administration of related Rules and Regulations other representations to respective authority 2. Constitution of the Financial Sector Regulatory 5. Study/ Survey on reforms required in Investors' Appointments Search Committee (FSRASC) Grievance Redressal Mechanisms in context of 3. Establishment matters of SEBI like audit, Securities Markets appointment of CVO, etc. 6. Internal Charge of 5 states (Bihar, U.P.,Uttarakhand, 4. Establishment matters of SAT like residential Himachal Pradesh & Jharkhand) accommodation, grant of budget to SAT and related X. Coordination Section matters, grant of vehicle to the officers in SAT etc. 1. Internal Coordination within FM Division for 5. Strengthening of SAT - Creation of additional providing periodical inputs /reports to various benches / creation of posts / creation of additional Departments /Ministries, submission of material for office space for SAT / implementation of e-Court in annual reports, economic survey etc. SAT, etc. 2. Meeting on Senior Management Group (SMG) 6. Administration of the Securities Appellate Tribunal taken by Secretary (EA) to evaluate pending VIP (Salaries, Allowances And Other Terms And reference, PMO reference and Parliamentary on Conditions Of Presiding Officer And Other Monday of every week. Management of e-Samiksha Members) Rules, 2003 and portals in respect of FM Division related 7. Bilateral and multi-lateral MoUs between SEBI and complaints, VIP/PMO references, cabinet notes, securities market regulators of foreign countries. court cases, Senior Management Group Meetings 8. Remittances from SEBI to the Consolidated Fund etc. of India 3. Monthly summary in respect of activities, major 11Annual Report 2022-2023 achievement and important policy decisions taken November 2022). Capital market, both debt and equity, in DEA are sent to Cabinet Secretariat has become increasingly important for India’s growth story. On the equity side, the total funds of Rs. 1,14,360 4. Work management /allocation issues within FM crores have been raised through 448 issues including Division Initial Public Offering (IPO), Rights Issue, Preferential Issue and Qualified Institutional Placement till November, 5. Website management in respect of FM Division 30, 2022. On the debt side, the funds raised through matters corporate bonds this financial year till November, 30, 2022 6. Internship Management within FM Division are around Rs. 3,91,996 crores, which includes fund 3.3 Recent Developments raising through both public issues and private placement. I. Primary Markets: B. Fund raising in Corporate Bonds Market A. Public Issue The Corporate Bond Market is one of the vital for financing the real sector, supporting alternate investment The year 2022-23 so far has been a good year for need apart from banks, diversifying risk and reducing the primary markets with a boom in fund raising through financial markets fragility. The total debt amount consists IPOs in Small and Medium Enterprises (SME) segment of Public issue and Private Placement of Corporate Bonds with resource mobilization of Rs.1465 crores (upto 30th which has been tabulated below: Apr - Nov 2022 Particular No. of Issues Amount (` crore) Debt 962 3,91,036 Public 17 5,663 Private Placement 945 3,85,373 The total resource mobilization in Primary Markets been amended, enabling them to invest up to 5 per cent from April-November 2022 is Rs.5,06,356 crores with total in the units of Category I and Category II Alternative 1415 issues. Investment Funds (AIFs), subject to certain conditions. C. Mutual Fund Activities 2. As part of overall objective to revitalize corporate bond market in India. The efforts are being made to The Assets under Management (AUM) of mutual develop Credit Default Swap market in India, in fund industry stood at Rs. 39,88,735 crores upto 31st consultation with regulators like RBI, SEBI etc. December, 2022.During 2022, important initiatives like nomination facility has been made mandatory, SEBI 3. The provision of Finance Act 2021 (notified on 28 regulations were amended to reduce the time allowed March 2021) has conferred power to the trusts registered for payout of redemption and dividend to unitholders by with SEBI to issue debt security and the rights to lenders AMCs, credit risk based single issuer limit for investment to enforce security interest underlying such debt in case by actively managed mutual fund schemes in debt and of default. The law now clarifies that in case of default, money market instruments etc., have been undertaken. lenders shall recover the defaulted amount and enforce security interest, if any, against the trust assets. Trustee B. Major highlights: will be proceeded against for recovery as per the terms  Total number of demat accounts (NSDL+CDSL) and conditions provided in the facility documents. in India crossed the 10 crore mark during the However, the trustee shall not be liable for and the current financial year. At the end of November trustee’s assets shall not be utilized towards recovery of 2022, the number of demat accounts increased such debt. Whatever remains after paying the lenders by 18.4 % (since March 2022) to stand at 10.6 shall be remitted to the unit holders. This benefit is already crore. available to mutual funds (MFs), Alternate Investment  The AUM of mutual fund industry has increased Funds (AIFs), Business Trusts like REITS or INVITS etc. by 8.1% to 40.5 lakh crore at the end November 4. Under Ease of Doing Business, automation of 2022 from 37.3 lakh crore at the end November disclosure requirements under SEBI (Substantial 2021. Acquisition of Shares and Takeovers) Regulations, 2011 II. POLICY DEVELOPMENTS OF PRIMARY was notified on March 7, 2022. The transactions MARKET: undertaken in the depository system under certain 1. The investment guidelines for non-government regulations of Takeover Regulations do not require provident funds, superannuation and gratuity funds have manual filing except in certain areas. 12Department of Economic Affairs I 5. SEBI introduced the framework for conversion of 8. The Skin-in-the-game requirement for AMCs and private listed InVIT into the Public InVIT and conversion designated employees was proposed by SEBI in circular of unlisted InVIT into Private Listed InVIT in February dated 29/11/2021 wherein swing pricing framework for 2022. open-ended debt mutual fund schemes was introduced 6. To instill confidence amongst the participants in the to fairly allocate the costs. Corporate Bond Market during times of stress and to 9. Distributed ledger technology (DLT) based platform generally enhance secondary market liquidity, Union was launched for covenant monitoring of Debt Securities. Budget 2021-22 proposed to create a permanent This is first of its kind deployment of block chain institutional framework to address the liquidity issue for technology in the corporate bond market in the world lower rated yet investment grade bonds. It is essentially going to be a special purpose vehicle of permanent nature 10. A regulatory framework has been developed by in the form of Backstop facility, to enhance secondary SEBI for Online Bond Platforms (OBPs) offering debt market liquidity in the Corporate Bond Market during the securities to non-institutional investors. The circular dated time of distress. The structure for setting up and operation 14/11/2022 for the framework provide an avenue for of the Backstop facility has been finalized and is expected investors, particularly non-institutional investors to to be in operational soon. access the bond market. 7. Hon’ble Finance Minister in 2021 budget speech 11. Government is engaged in an ongoing intensive mentioned that the provisions of SEBI Act, 1992, effort to reduce the compliance burden on businesses Depositories Act, 1996, Securities Contracts (Regulation) and citizens by way of rationalizing the laws, process etc. Act, 1956 and Government Securities Act, 2007 is to be of regulatory bodies like SEBI and RBI. Overall, 62 items consolidated into a rationalized single Securities Markets have already been identified in respect of Securities laws Code. A committee was constituted with the and FEMA related provisions on the Regulatory representatives of DEA, DFS, Ministry of Corporate Affairs Compliance Portal out of which 56 are completed. In the and Ministry of Law on 07.10.2021 to review the current second round, the action plan was made in two phases : provisions of the securities laws and to draft the proposed Phase I to be completed by 31.03.2022 and Phase II by Code. The committee has submitted its report and is 15.08.2022. The 5 action items for Phase I are completed. being examined. 12. Details of Funds mobilized through Primary Market Table 1: Details of Fund Mobilization during 2020-21 to 2022-23 (upto 30th November, 2022) Year Total IPOs (Main Board) IPOs- Rights QIP Preferential issues SME /IGP No. of Amount No. of Amount No. of Amount No. of Amount No. of Amount No. of Amount issues issues issue issues issues issues s 2020-21 341 2,14,766 29 30,814 26 216 21 64,059 31 78,738 234 40,940 2021-22 541 2,31,017 51 1,11,609 69 943 43 26,327 29 31,441 349 60,697 2022-23 448 1,14,360 28 46,630 76 1,465 37 3,436 8 4,115 298 54,414 Table 2: Data on corporate bond issuance (2020-21 to 2022-23) Issue Type 2020-21 2021-22 2022-23 No. Amount No. Amount No. Amount (Rs Cr) (Rs Cr) (Rs Cr) Public Issue (Debt) 18 10,588 28 11,589 22 6,624 Pvt. Placement of 1995 7,71,840 1,405 5,88,037 945 3,85,373 Corporate Bonds* Total Debt (Public & Pvt.) 2013 7,82,428 1,433 5,99,626 967 3,91,996 * Source: SEBI Bulletin (up to 30th November, 2022) 13Annual Report 2022-2023 Table 3 : Secondary Market Trading in Corporate Bonds Year No. of Trades Traded Value (in Rs. Crore) 2020-21 1,38,754 18,72,718 2021-22 1,55,621 17,73,384 2022-23 1,27,250 7,77,869 * Source: SEBI Bulletin (up to 30th November, 2022) Table 4 : Asset under Management (AUM) by Mutual Funds (Rs. Crore) Year AUM of MFs 2020-21 31,20,695 2021-22 37,69,137 2022-23 39,88,735 13 . * Source: SEBI Data (as on 31st December, 2022) II. Secondary Markets: in FY23 so far), Nifty 50 – USD adjusted return stood at 0.2 per cent during FY23. As regards the U.S., Dow Jones A. Stock Market Performance Industrial Average index declined by 0.3 per cent, while During FY23 (April-November), stock markets Nasdaq Composite – heavily weighted (49 per cent) across the world were on a declining trend. However, towards technology sector companies, declined by 19.4 Indian market emerged as one of the best performers per cent during FY23 (Apr-Nov). As at the end of among major markets with a return of 7.4 per cent (Nifty November 2022, Sensex and Nifty 50 closed 7.7 per cent 50) during FY23 (till November 2022). Given the and 7.4 per cent higher, respectively, from their closing depreciation in Indian Rupee against USD (7.2 per cent levels on March 31, 2022. Figure 1: Movement of Indian Benchmark Indices Among major emerging market economies, India 500 index, recorded strong gains and rose by 17.3 per outperformed its peers during FY23 (April-November). cent and 15.0 per cent, respectively. Among the select developed markets, Nasdaq and S&P 14Department of Economic Affairs I Table 2: Performance of Major Stock Market Indices across the World As on As on Change in FY22 Change in FY23 Index 31/03/2022 30/11/2022 (Apr-Nov) (Apr-Nov) India Nifty 50 17,465 18,758 15.6% 7.4% S&P BSE Sensex 58,569 63,100 15.3% 7.7% Emerging Markets Shanghai Composite, China 3,252 3,151 3.5% -3.1% Brazil Ibovespa 1,19,999 1,12,486 -12.6% -6.3% FTSE, South Africa 75,497 74,828 6.0% -0.9% KOSPI, Korea 2,758 2,473 -7.3% -10.3% Taiwan Taiex 17,693 14,880 6.1% -15.9% Developed Markets Nasdaq, USA 14,221 11,468 17.3% -19.4% Dow Jones, USA 34,678 34,590 4.6% -0.3% CAC, France 6,660 6,739 10.8% 1.2% DAX, Germany 14,415 14,397 0.6% -0.1% FTSE 100, UK 7,516 7,573 5.2% 0.8% Hang Seng, Hong Kong 21,997 18,597 -17.3% -15.5% Nikkei, Japan 27,821 27,969 -4.7% 0.5% Straits Times, Singapore 3,409 3,290 -3.9% -3.5% Nasdaq, USA 14,221 11,468 17.3% -19.4% Source: Refinitiv Figure 2: Returns of Major World Indices during FY23 (April-November) 15Annual Report 2022-2023 Figure 3: Annualized Volatility in Major World Indices during FY23 (April-November) India VIX, which measures expected short term volatility the war. However, Indian market showed resilience and in the stock market, increased to a high of 32.0 on recovered to end on positive note in March 2022. During February 24, 2022 as Russia invaded Ukraine. The April-November 2022, India VIX witnessed a declining geopolitical crisis weakened the market sentiments, which trend and stood at 13.8 at end of November 2022, as was reflected by downward movement in benchmark indices over couple of weeks following the outbreak of compared to 20.6 as at end of March 2022. Figure 4: India VIX B. Valuations (P/E Ratio) 2022, stands expensive vis-à-vis the global markets. Nifty, with its valuation at 22.5 times price-to-earnings on However, it is still low as compared to its own 5-year trailing basis ratio (P/E ratio) at the end of November average. Figure 5: Comparison of P/E Ratios of Major Indices with the Long Term (5-year) Average 16Department of Economic Affairs I C. Retail Participation in the Capital Market as compared to 42.2 per cent over the same period during The share of individual investors in cash segment has FY22. declined to 37.5 per cent during FY23 (April-November) Table 3: Share of Individual Investors in Equity Cash Segment Turnover (per cent) Year Share of Individual Investors (per cent) 2021-22 41.1% 2021-22# 42.2% 2022-23# 37.5% Note: 1. # period – April to November 2. Individual investors includes individual domestic investors, NRIs, sole proprietorship firms and HUFs, Others: Partnership Firms/LLP, Trust / Society, Depository Receipts, Statutory Bodies, OCB, FNs, etc. Source: NSE, BSE Table 4: Demat Accounts (in lakh) Year Total No. of Demat Accounts Accounts Added during the Period 2021-22* 890.3 344.8 2021-22@ 766.1 220.7 2022-23# 1,061.7 171.5 Note: * as at end of Mar-22, @ as at end of Nov-21, # as at end of Nov-22 The number of demat accounts in India rose to 10.6 crore market, amid prevailing global headwinds during the by the end of November 2022, 39 per cent rise from the current financial year. total number of accounts as at the end of November 2021. D. Turnover Statistics However, incremental additions of demat accounts have The cash segment turnover declined by 21 per cent during been on a declining trend during FY23 relative to FY22. FY23 (till November 2022), as compared to the same 171.5 lakh new accounts were added during FY23 (April- November), 22 per cent lower than the incremental period of FY22, while equity derivatives volumes recorded additions over the corresponding period of FY22. The a huge jump of 113 per cent, showing individuals and probable driving factors behind this declining trend are proprietary traders’ interests drifting away from equity the secondary market volatility and subdued primary cash segment to equity derivatives segment. Table 5: Turnover Statistics ( ` crore) 2021-22 2021-22# 2022-23# % Change Year (1) (2) (3) (3) over (2) Cash Segment 1,79,04,483 1,24,26,578 98,15,896 -21% Equity Derivatives 1,76,13,11,462 98,60,77,791 2,09,79,64,211 113% # period – April to November ii. To enable investors to lodge and follow up their complaints and track status of redressal of such Major highlights complaints from anywhere, all recognized Stock i. SEBI has made changes to SEBI KRA Regulations, Exchanges and Depositories have been advised to design where KRA’s shall continue to act as repository of KYC and implement an online web based complaints redressal data in the securities market and will be responsible for system of their own to facilitate investors to file complaints storing, safeguarding and retrieving the KYC documents and escalate them for redressal. and submit to SEBI or any other statutory authority as iii. To prevent mis-selling by unregulated platforms and when required. offering algorithmic trading services/ strategies and to 17Annual Report 2022-2023 protect investors interests, SEBI has issued guidelines The salient features for participation of FPIs in to stock brokers and stock exchanges. It has further ETCDs are as under: cautioned investors not to be lured by such entities. a) The existing Eligible Foreign Entity (EFE) route, iv. SEBI came up with a detailed framework on the which required actual exposure to Indian physical Social Stock Exchange (SSE). It stipulates minimum commodities, has been discontinued vide requirement to be met by Not for Profit Organisation Circular dated September 29, 2022 by SEBI. Any (NPO), initial disclosure requirements for fund raising, foreign investor desirous of participating in Indian annual disclosure, disclosure of annual impact report and ETCDs with or without actual exposure to Indian statement of utilisation of funds in terms of LODR physical commodities can do so through FPI regulations. route. v. SEBI, vide circular dated September 07, 2021, b) FPIs will be allowed to trade in all non-agricultural introduced the T+1 settlement cycle in the Indian capital commodity derivatives and select non- markets after detailed consultations with stakeholders, agricultural benchmark indices. To begin with, viz., stock exchanges, clearing corporations and FPIs will be allowed only in cash-settled depositories. Stock exchanges have been given the contracts. option to launch T+1 rolling settlement in a phased c) FPIs will be allowed to participate in Indian manner starting from February 25, 2022. All the stocks ETCDs, subject to certain risk management will move to T+1 settlement cycle by around January measures. 2023. India has become one of the very few large d) The position limits for participation of FPIs in economies that switched from T+2 to T+1 settlement. ETCDs are as under: The shorter settlement cycle (T+1) is in the interest of i. The position limits for FPIs (other than retail investor as it reduces the risk of non-payment or individuals, family offices and corporate non-delivery of shares by the broker by one day, which is bodies) will be at par with those presently an improvement over the present system. Further, faster applicable for Mutual Fund schemes i.e. as trade settlements lead to better efficiency levels and a client. further protect investors. ii. FPIs belonging to categories viz. individuals, III. Commodity Derivatives : family offices and corporates will be allowed 1. Setting up Gold Spot Exchanges: Union Budget position limit of 20 per cent of the client level Speech 2021-22 announced to launch Gold Spot position limit in a particular commodity Exchange in the country as the first electronic platform derivatives contract, similar to the position for spot trading of gold in dematerialized form. Towards limits prescribed for currency derivatives. The the fulfillment of this Announcement, Department of participation of FPIs including individuals, Economic Affairs, notified “electronic gold receipts (EGR)” family offices and corporates shall be subject as ‘securities’ under Securities Contracts (Regulations) to compliance with the provisions of SEBI Act, 1956 on December 24, 2021. Subsequently, (Foreign Portfolio Investors) Regulations, 2019, SEBI (Custodian) Regulations, 1996 Securities and Exchange Board of India (SEBI) issued and the applicable SEBI Circulars on ETCDs. the framework for Gold Spot Exchange on 10 January 2022 and other necessary Regulations. BSE launched iii. A Working Group comprising of the Electronic Gold Receipt trading in its platform in representatives from SEBI and market October, 2022. EGRs will cater all kinds of market participants has also been constituted to participants i.e. retail, commercial, institutional etc. review/examine whether any additional risk management measures, are required to be 2. Notifying SEBI as regulator of Gold Spot prescribed for FPIs. Exchange COMMODITY DERIVATIVES MARKET The Government of India vide Gazette notification S.O. 5401 (E) dated December 24, 2021, notified The commodities eligible for derivatives trading are “electronic gold receipts (EGR) as ‘securities’ under notified by DEA, MoF in consultation with SEBI. At present, major agricultural commodities trading on section 2 (h) (iia) of SCRA, 1956. This will enable SEBI derivatives platforms include Barley, Castor Seed, to regulate EGR. Coriander, Cotton, Guar Seed, etc. Major non-agri 3. Allowing FPIs to participate in Exchange Traded commodities traded on commodity derivatives platforms Commodity Derivatives market in India are metals (Zinc, Aluminium, Copper, Gold, Silver) The SEBI Board, after deliberations, approved the and energy commodities (Crude Oil, Natural Gas). The participation of Foreign Portfolio Investors (FPIs) in total turnover in the commodity derivatives segment is Exchange Traded Commodity Derivatives (ETCDs). distributed across exchanges as follows: 18Department of Economic Affairs I Table 1: Market share of exchanges year wise Total Turnover 2018-19 2019-20 2020-21 2021-22 2022-23* % variation of 2021- 22 over 2020-21 (in Rs. Crore) All-India 7,377,943.89 9,224,839 9,222,927 1,00,27,900 92,63,487 8.73% MCX 6,772,372.87 8689518 8,264,585 87,81,757 91,07,177 6.26% NCDEX 531587.96 442009 318,814 4,57,186 1,36,424 43.40% ICEX** 37,735.50 40,511.29 1,666 139 0 -91.68% NSE 3,443.82 6,362.00 27839 19,744 12,300 -29.08% BSE 32,803.75 46,438.72 610,023 7,69,075 7,586 26.07% * Data as on 30 November 2022 **SEBI has withdrawn the recognition granted to the Indian Commodity Exchange Limited on May 18, 2022. Source: SEBI Bulletin, December 2022 IV. Snapshot of External Market FPI Investment Inflows in India from 2012-13 to 2022-23 INR Crores FCianlaenncdiearl Y Yeeaar r Equity Debt Debt - VRR Hybrid Total 2012-13 1,40,031 28,334 0 0 1,68,365 2014-15 1,11,333 1,66,127 0 0 2,77,461 2015-16 -14,172 -4,004 0 0 -18,176 2016-17 55,703 -7,292 0 0 48,411 2017-18 25,635 1,19,036 0 11 1,44,682 2018-19 -88 -42,357 0 3,515 -38,930 2019-20 6,153 -48,710 7,331 7,698 -27,528 2020-21 2,74,032 -50,443 33,265 10,247 2,67,101 2021-22 -1,40,010 1,628 12,642 3,498 -1,22,242 2022-23* -11,421 -12,400 8,662 -993 -16,153 Source: NSDL, *Up to 31st December 2022 FPI Investment Inflows by Month in India during 2022 INR Crores Month Equity Debt Debt - VRR Hybrid Total January -33,303 5,194 -2,114 1,697 -28,526 February -35,592 -3,073 487 110 -38,068 March -41,123 -5,632 -3,244 -68 -50,068 April -17,144 -4,439 -1,175 69 -22,688 May -39,993 -5,506 9,043 -62 -36,518 June -50,203 -1,414 87 108 -51,422 July 4,989 -2,056 -785 -176 1,971 August 51,204 3,845 2,997 -1,525 56,521 September -7,624 4,012 -1,455 1,112 -3,955 October -8 -3,532 762 -301 -3,080 November 36,239 -1,637 -540 -214 33,847 December 11,119 -1,673 -272 -4 9,171 Total-2022 -1,21,439 -15,911 3,791 746 -1,32,815 19Annual Report 2022-2023  FPI flows were in the negative territory for the first 90,368 crore. FPIs made a net investment of Rs. - 1,32,815 crore up to Dec 31st, 2022. six months of 2022. Thereafter, there were inflows  The Indian growth story continues to expand as is in net FPI investment during second half of the year demonstrated by the trends in FPI flows that indicate to the tune of Rs. 94,475 crore with August and and underline the faith of global investors in the November witnessing a combined inflow of Rs. strength and resilience of Indian economy. A. External Commercial Borrowing in India: The data for ECB net inflows since FY 2017-18 is presented as under: USD Million 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 (Till Nov 2022) 2,305 13,180 29,399 4,248 12,888 (-)2,934 * Data for latest month are as per the scheduled drawdown (indi cated by borrowers in Form-ECB) in absence of ECB-2 Return. B. Foreign Exchange Management (Non–Debt 2020. The Chairman and ex-officio members of the Instrument Rules) Authority have been appointed and all sections of the IFSCA Act have been notified in the Official Gazette. All Pursuant to the amendments to FEMA 1999 through key operational rules and regulations for IFSCA under the Finance Act, 2015, Ministry of Finance had notified the IFSCA Act, 2019 have been notified by DEA and the Foreign Exchange Management (Non-debt IFSCA. Instruments) Rules, 2019 vide Notification No. 1802(E) dated 12th April, 2022 which is as under: In the recent years, GIFT-IFSC has witnessed substantial traction across the entire spectrum of financial (i) Foreign Exchange Management (Non-debt services. It has played a pivotal role in onshoring financial Instruments) (Amendment) Rules, 2022: Regarding Press services which had overtime migrated to attractive Note 1(2022 series) of DPIIT relating to review of FDI offshore jurisdictions. Presently, more than 390 entities Policy for permitting foreign investment in LIC and other are registered across traditional as well as niche modifications. segments in the IFSC. Significant gains have been made V. International Financial Services Centres in kick starting experimental and innovative activities such Authority (IFSCA): as bullion trading, aircraft leasing, global-in house centres and Finech. The foundation has been laid for creating a The vision of GIFT IFSC is to establish itself as a thriving knowledge economy by allowing foreign dominant gateway for global financial flows into and out universities to set up operations in IFSC. Simultaneously, of India, and simultaneously emerge as a major global external assistance is being mobilised for establishment financial hub. In pursuit of this vision, it aims to leverage of India’s premiere Fintech Institute and Innovation Centre the Indian Diaspora, match tax regime with offshore in GIFT City. The aspirational pursuit of integrating the jurisdictions, institutionalize a modern unified regulatory Indian economy with the global financial ecosystem framework, develop networks/ connects with major through India’s maiden IFSC has been rich with financial hubs, and have a diversified range of financial achievements some of which are noted below – products and services. These endeavors will enable the transition of GIFT IFSC into a globally competitive 1. Laying of the foundation stone for IFSCA HQ financial hub for international banking, insurance and building was done by the Hon’ble PM on 29th capital market activities which serves both the Indian July, 2022. The headquarter building will be a Economy and the region as a whole. physical manifestation of the vision for GIFT IFSC and would symbolize the dreams and aspirations Pursuant to the passage of IFSCA Act in December of a New and Atma Nirbhar Bharat. The work on 2019, the International Financial Services Centres the project has started in November 2022. Authority (IFSCA), a first of its kind unified regulator for the financial sector, has been established and made 2. India first International Bullion Exchange was operational vide Gazette Notification dated 27th April, inaugurated by the Hon’ble Prime Minister of 20Department of Economic Affairs I India in GIFT IFSC on 29th July 2022. IIBX aims 8. A revised “Framework for Aircraft Lease” was to offer a world-class bullion exchange issued on May 18, 2022 to enable Aircraft ecosystem for bullion trading, investment in operating lease in GIFT-IFSC including the bullion financial products and vaulting facilities leasing of Aircraft Ground Support Equipment. in IFSC. The revised framework consolidates the 3. In its endeavor to become a hub for sustainable guidelines relating to business of operating and/ finance IFSCA has notified ‘Sustainable Lending or financial lease of aircraft or helicopter and Framework’ for IFSC Banking Units and Finance engines of aircraft or helicopter or any part Companies to encourage lending by banking/ thereof and/or Aircraft Ground Support financial sector to sustainable sectors. Equipment by the aircraft leasing entities 4. Further, IFSCA also notified comprehensive Fund registered with the IFSCA. Management Regulations in April 2022 which has several provisions for enabling fund management 9. The NSE IFSC-SGX Connect was launched in activities for sustainable finance July 2022 to give impetus to the capital market ecosystem in GIFT IFSC. The Connect aims to 5. A dedicated platform for listing of various categories of ESG related products such as bring together international financial institutions Green Bonds, Social Bonds, Sustainable Bonds, and participants based in GIFT-IFSC to create Carbon Credits, Green Equity, Green and a bigger liquidity pool for derivative contracts sustainable REITs, known as the International with Indian indices as the underlying. The Sustainability Platform has been launched by Connect would deepen liquidity in derivative NSE- IFSC on July 29, 2022. instruments at NSE-IFSC, attracting more 6. To implement the Budget announcement of 2022- international participants and having a positive 23 for setting up World Class Universities at impact on the financial ecosystem in IFSC. GIFT-IFSC, Notification under Section 3 of the IFSCA Act 2019 enabling IFSCA to regulate 10. Four MoUs have been exchanged by IFSCA select courses offered by foreign universities in with 4 foreign regulators and Department of GIFT-IFSC has been issued on May 23, 2022. Space (DoS) to deepen mutual co-operation and Meanwhile, draft Notification under Section 31 facilitate technical cooperation. of the Act to dis-apply provisions of University Grants Commission Act 1956 and All India 11. To augment the FinTech Ecosystem at GIFT- Council for Technical Education Act 1987 for IFSC, Circular putting in place a comprehensive foreign universities/institutions based out of FinTech Entity (FE) Regulatory Framework for GIFT-IFSC has been tabled in both houses of FinTechs and TechFins in GIFT-IFSC has been the Parliament for approval. IFSCA after issued by IFSCA on 27th April 2022. The first extensive consultation has notified regulations five authorizations to FinTech entities under the for Setting up and Operation of International FinTech Entity Framework were granted on 29th Branch Campuses and Offshore Education Centres in October 2022. This path breaking July 2022, during the visit of the Hon’ble Prime initiative is expected to bring world class Minister and Finance Minister to GIFT IFSC. education & research facilities in GIFT IFSC and 12. Deputy Prime Minister of Singapore visited GIFT provide high end talent for financial institutions IFSC on 18th September during which the setting up presence in IFSC. Monetary Authority of Singapore (MAS) and the 7. The Union Cabinet in its meeting on 13th July International Financial Services Centres 2022 has approved signing of an MoU between Authority (IFSCA) signed a FinTech Co- IFSCA and Monetary Authority of Singapore operation Agreement (CA) to facilitate regulatory (MAS) to facilitate mutual exchange of information and technical cooperation. collaboration and partnership in FinTech. 21Annual Report 2022-2023 VI. International Cooperation: (S&P), Japanese Credit Rating Agency (JCRA), Rating and Investment Information Inc., Tokyo (R&I) and DBRS India’s sovereign debt is rated by 6 major Sovereign MorningStar. The latest sovereign ratings issued by these Credit Rating Agencies (SCRAs). These are Fitch Ratings, Moody’s Investors Service, Standard and Poor’s rating agencies are given below: Rating Date of Foreign Currency Local Currency Agency affirmation of ratings Ratings Outlook Ratings Outlook Moody’s 15.12.2022 Baa3 Stable Baa3 Stable Fitch 20.12.2022 BBB- Stable BBB- Stable S&P 13.07.2021 BBB- Stable BBB- Stable JCRA 13.05.2022 BBB+ Stable BBB+ Stable R&I 26.12.2022 BBB Stable No ratings were given DBRS 19.05.2022 BBB (low) Stable BBB (low) Stable R-2 (middle) R-2 (middle) VII. Regulatory Establishment It is also the designated Tribunal to hear appeal cases against the orders passed by International Financial Securities Appellate Tribunal (SAT) is established Services Centres Authority (IFSCA) for matters related under Section 15K of the Securities and Exchange Board to 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 and As on 31.12.2022, 852 appeals are pending any other law for the time being in force. before SAT and its breakup is as follows:- Category Opening Cases filed Total Cases Disposed Pending Balance as on Cases Cases 01.01.2022 SEBI 807 1046 1853 1011 842 IRDA 15 05 20 10 10 PFRDA 00 00 00 00 00 TOTAL 822 1051 1873 1021 852 22Department of Economic Affairs I 4. Financial Stability and Cyber Security of Registered Valuers by all the Government Departments. Division It was noted that there is a need to monitor the financial sector risks, the financial conditions and market 4.1. Financial Stability and Development Council developments on a continuous basis by the Government 4.1.1 The Financial Stability and Development Council and the regulators so that appropriate and timely action (FSDC) was set up by the Government of India as the can be taken so as to mitigate any vulnerability and apex level forum in December 2010 with a view to strengthen financial stability. The FSDC also took note of strengthening and institutionalising the mechanism for, the preparation in respect of financial sector issues to be inter-alia, maintaining financial stability, enhancing inter- taken up during India’s G20 Presidency in 2023. regulatory coordination and promoting financial sector 4.2. FSDC Sub-Committee (FSDC-SC) development. The Chairperson of the FSDC is the Finance 4.2.1 The FSDC is supported by a Sub-Committee Minister of India and Members include Ministers of State (FSDC-SC), chaired by the Governor, RBI. Excluding the for Finance, the heads of the financial sector regulators Chair of the FSDC and the Ministers of State for Finance), and Secretaries of the relevant Ministries/ Departments all members of the FSDC are also the members of the of the Government of India. FSDC-SC. Additionally, all four Deputy Governors (DG) of 4.1.2 The FSDC monitors macro-prudential supervision RBI, and Secretary (FSDC), are also the members of the of the economy and deliberates on contextual issues FSDC-SC. Executive Director of RBI, who is in-charge-of covering financial stability, financial sector development, Financial Stability, is the Member Secretary, and the inter-regulatory coordination, financial literacy, financial Financial Stability Unit (FSU) of RBI is the Secretariat for inclusion, co-ordinating India’s international interfaces with the FSDC-SC. The FSDC-SC has met 29 times so far. financial sector bodies like the Financial Action Task Force 4.2.2 During the year 2022-23, FSDC-SC held the 29th (FATF) and the Financial Stability Board (FSB). The meeting on November 15, 2022. The Sub-Committee Financial Stability and Cyber Security (FS&CS) Division reviewed the major developments in the global and in the Department of Economic Affairs provides secretarial domestic economy as well as in various segments of the assistance to the FSDC. The Division-Head in charge of financial system. It discussed certain inter-regulatory Financial Stability & Cyber Security (FS&CS) Division, issues. The Sub-Committee also reviewed the activities Ministry of Finance, Department of Economic Affairs is of various technical groups under its purview and the the Secretary of the FSDC. functioning of State Level Coordination Committees 4.1.3 Till 25th November 2022, FSDC held 26 meetings. (SLCCs) in various States/ UTs. The members resolved to In 2022-23, the 25th meeting was held on February 22, remain vigilant and proactive to ensure that financial 2022 and 26th meeting was held on September 15, 2022. markets and financial institutions remained resilient amidst In the 25th meeting, the FSDC deliberated on the various the spillovers arising from evolving global macroeconomic mandates of the FSDC and major macro-financial situation. challenges arising in view of global and domestic 4.3. Financial Stability Board (FSB) developments. The FSDC noted that the Government and all regulators need to maintain constant vigil on the financial 4.3.1 The FSB is an international body established in conditions and functioning of important financial April 2009 under the aegis of G20 by bringing together the institutions, especially considering that it could expose national authorities, standard setting bodies and financial vulnerabilities in the medium and long-term. The international financial institutions. The FSB is responsible FSDC discussed measures required for further for undertaking vulnerabilities assessment, policy development of the financial sector and to achieve an development and coordination, implementation monitoring, and to act as a compendium of standards for financial inclusive economic growth with macroeconomic stability. sector regulation and reforms in members’ jurisdictions. The FSDC also discussed operational issues relating to currency management, particularly the issues of Fake 4.3.2 India, as a member of the FSB, remains committed Indian Currency Notes. In the 26th meeting, the FSDC, to adoption of the priority and other areas of financial sector inter alia, deliberated on the Early Warning Indicators for reforms and international standards in a phased manner, the economy and our preparedness to deal with them, calibrated to local conditions wherever necessary. improving the efficiency of the existing Financial/Credit Department of Economic Affairs is the nodal point for India Information Systems, issues of governance and to coordinate with the FSB and all India-specific information management in Systemically Important Financial are regularly provided in consultation with the financial Institutions including Financial Market Infrastructures, sector Regulators (namely, RBI, SEBI, IRDAI and PFRDA) strengthening cyber security framework in financial sector, while responding to various FSB questionnaires, surveys Common KYC for all financial Services and related matters, and reports. India also participates in the peer reviews, update on Account Aggregator and next steps, issues meetings and conference calls of the FSB and presents relating to financing of Power Sector, strategic role of GIFT its views and comments as a Member. IFSC in New Aatmanirbhar Bharat, inter-regulatory issues 4.3.3 The Plenary is the sole decision-making body of of GIFT-IFSC, and the need for utilisation of the services the FSB, the Steering Committee provides operational 23Annual Report 2022-2023 guidance between Plenary meetings to carry forward the 4.3.6 For 2023, it is also proposed to work towards directions of the FSB and prepare the Plenary meetings developing a reporting framework for mitigating system- in order to allow the Plenary to efficiently fulfil its mandate, level vulnerabilities for the financial sector from cyber risks, Standing Committee on Standards Implementation (SCSI) especially through greater convergence in cyber incident is responsible for monitoring the implementation of agreed reporting and coordination of relevant definitions and FSB policy initiatives and international standards, and the terminologies. As a member country, India has been Standing Committee on Budget and Resources (SCBR) actively participating in the FSB work to strengthen the is responsible for assessments of the resource needs of financial sector’s cyber resilience. The FSB, Basel the FSB Secretariat taking into account the current Committee for Banking Supervision (BCBS), and mandate, the work programme and emerging demands. Committee on Payments and Market Infrastructures The Regional Consultative Group on Asia (RCG Asia) is (CPMI), among others, including the G20, have focused one of the 6 regional groups established by FSB in 2011 on developing a common lexicon (terminology) and to expand upon and formalise the FSB’s outreach activities approach to the regulation and supervision of cyber risk beyond the membership of the G20 and to reflect the global management in financial institutions. nature of the financial system through interaction with the 4.4. Financial Sector Assessment Programme non-members. Secretary of the Department of Economic (FSAP) Affairs represents India in the FSB Plenary, Steering 4.4.1 FSAP is a quinquennial exercise jointly Committee (2021-2023) and in the two out of the four FSB conducted by IMF and World Bank (WB) and involves a standing Committees, namely, the Standing Committee comprehensive and in-depth analysis of a country’s on Standards Implementation(SCSI) and the Standing financial sector to assess financial stability and financial Committee on Budget and Resources(SCBR). Secretary sector development. India underwent its first FSAP (Economic Affairs) also represents India in the Regional exercise in 2011-12 and the second FSAP in 2017. Consultative Group on Asia (RCG Asia). Chairman, SEBI, Department of Economic Affairs, in close coordination with and the Deputy Governor (DG), RBI are the other two financial sector Regulators and Ministries/Departments members from India in the FSB Plenary as well as in the concerned, facilitates and coordinates all matters related RCG Asia. The DG (RBI) represents as a Member from to FSAP undertaken for India, including following up on India in the other two Standing Committees of FSB, the recommendations of FSAP. Subsequent to the FSAP namely, Standing Committee on Assessment of exercise in 2017, the IMF and the World Bank published Vulnerabilities (SCAV) and Standing Committee on their reports, including the Financial System Stability Supervisory and Regulatory Cooperation (SRC). He also Assessment Report (FSSA)(along with IMF Press represents India in the Steering Committee that provides Release, Staff Supplement and Statement of India’s operational guidance between Plenary meetings to carry Executive Director in IMF) and Financial Sector forward the directions of the FSB, promotes coordination Assessment (FSA) report, respectively in December, 2017 across the Standing Committees and coordinates and on their respective websites, followed by a few Detailed conducts reviews of the policy development work of the Assessment Reports (DARs) and Technical Notes on international standards setting bodies. selected topics. Department of Economic Affairs has been following up with the Ministries/ Departments/ Regulators 4.3.4 During the year 2022-23, meetings of the FSB concerned for examination and suitable implementation Plenary were held on 07th April 2022, 30th June 2022, 29th of the recommendations. The next FSAP exercise is September, 2022, 04th November, 2022 and 05th-06th tentatively planned to be held in 2024. December 2022. SCSI virtual and hybrid meetings were held on 18th May, 2022, 07th September, 2022, 05th October, 4.5. Macro Financial Monitoring Group (MFMG) 2022 and 22nd November, 2022. Besides, two virtual 4.5.1 The Macro Financial Monitoring Group has been meetings of the RCG Asia were held on 28th May, 2022 set up in 2012 under the Chairmanship of the Chief and 03rd November, 2022. FSB’s Emerging Market and Economic Adviser. The Group aims at keeping track of Developing Economies (EMDEs) Forum meeting was held the macroeconomic and financial developments, identifying on 05th December, 2022 to discuss issues of common vulnerabilities, and providing early warning signals. The interest across EMDEs and receive EMDEs’ feedback on Group has held 24 meetings till date. The last meeting of the FSB’s work. All these meetings were attended by the MFMG was held on August 25, 2021 under the representatives of DEA at suitable levels. chairmanship of the CEA which was attended by Senior officials of the Ministry of Finance; Senior Resident 4.3.5. As India has assumed G20 Presidency in 2023, Representative, IMF India; and officials of financial sector several meetings were organised with FSB to decide upon regulators. The Group discussed several contemporary the deliverables under financial sector issues under India’s financial sector issues. G20 Presidency. Further, continuous engagement was maintained through various virtual meetings / conference 4.6. Computer Security Incident Response Team- calls of Plenary, SCSI, RCG, etc. and inputs on surveys Finance Sector (CSIRT-Fin) and reports circulated by FSB were provided in consultation 4.6.1 The Computer Security Incident Response Team- with the regulators. Finance Sector (CSIRT-Fin) has been set up on 15th May 24Department of Economic Affairs I 2020 as a unit of the Indian Computer Emergency 5. Financial Sector Reforms and Legislation Division Response Team (CERT-In) within the Ministry of Electronics and Information Technology (MeitY). CSIRT-Fin is 5.1 Introduction responsible for coordinating and supporting the response 5.1.1 The Financial Sector Legislative Reforms to cybersecurity events or incidents within the financial Commission (FSLRC), set up on 24th March, 2011 for re- sector. CSIRT-Fin is the incident response force which writing the financial sector laws to bring them in harmony with the current requirements, submitted its Report to the focuses on mitigation processes, providing on-site Government on 22nd March, 2013. The Report is in two awareness, expertise, and recovery oversight. CERT-In is parts: Volume I titled “Analysis and Recommendations” providing the requisite leadership for the operations of and Volume II titled “Draft Law” consisting of the draft Indian CSIRT-Fin under its umbrella. The strategic direction is Financial Code (IFC). The Commission, inter alia, provided through a strategic advisory committee co-chaired recommended a non-sectoral, principle-based legislative by Secretary (DEA) and Secretary (MeitY) having architecture for the financial sector, by restructuring representation from DEA, DFS, NSCS, CERT-IN, NCIIPC existing regulatory agencies and creating new agencies, and financial sector regulators. wherever needed, for better governance and accountability. 5.1.2 A new Division, namely, FSLRC Cell was created 4.6.2. The 2nd Strategic Advisory Committee meeting of in the year 2013 to process the implementation of the the CSIRT-Fin was held on 20th January 2022. In this FSLRC Report with the following mandate: meeting, the Strategic Advisory Committee deliberated on various mandates for CSIRT-Fin including governance a. To firm up the views of the Government on the oversight and decisions for effective coordination amongst recommendations of the FSLRC following due consultative process with all the concerned stakeholders along with their roles and responsibilities. stakeholders, Regulators/Ministries/State The Committee discussed on the strategic roadmap and Governments/Union Territories and public at large; milestones to be achieved in the next 6 months for CSIRT- Fin. The Committee was also informed on the cyber b. To implement the recommendations of the security posture of the financial sector. FSLRC, duly approved by the Government; and 4.7. Critical Information Infrastructure (CII) c. To deal with administrative and establishment identification in Financial Sector matters relating to FSLRC. 5.1.3 In September, 2017, it was decided to rename 4.7.1 The FS&CS Division collaborates regularly with the FSLRC Division as Financial Sector Reforms and the National Critical Information Infrastructure Protection Legislation (FSRL) Division with (i) Legislative Reforms Centre (NCIIPC), and financial sector regulators/ and (ii) Financial Sector Reforms Sub-Divisions. departments to identify critical information infrastructure 5.2. Financial Sector Legislative Reforms (CII) in the financial sector, the incapacitation or destruction Commission- Main recommendations of which shall have a debilitating impact on national The Report of FSLRC was placed in the public security, economy, public health or safety. The Division domain on 28th March, 2013. The same was examined also coordinates the declaration of systemic important and discussed in various meetings of the Financial Stability CIIs as “protected systems”. In accordance with NCIIPC and Development Council (FSDC) chaired by the Finance recommendations, the protected systems must apply a Minister. The recommendations of the FSLRC can broadly higher level of security measures to ensure that the CIIs be divided into two parts - Legislative and Non-Legislative. The legislative aspects of the recommendations relate to are effectively secured. revamping the legislative framework of the financial sector 4.7.2 During the year 2022-23, CIIs hosted by NPCI, regulatory architecture by a non-sectoral, principle-based SBI, LIC of India, HDFC, ICICI, Punjab National Bank, Bank approach and by restructuring existing regulatory agencies of Baroda and Union Bank of India have been declared as and creating new agencies wherever needed. “Protected Systems”. In addition, the identification 5.3. Recommendations on the Financial procedure has been improved, and a sizeable number of Regulatory Architecture information technology (IT) systems in the BFSI sector The Commission has recommended a seven have been notified as CIIs. The process of CIIs identification agency regulatory architecture namely, Reserve Bank of in the financial sector, their declaration through Gazette India, Unified Financial Agency, Financial Sector Appellate notification and further assessment for validation of Tribunal, Resolution Corporation, Financial Redress Agency, Public Debt Management Agency and Financial “Protected Systems” after every two years is ongoing. Stability and Development Council in the draft law- Indian Further, continuous coordination with relevant agencies Financial Code to replace a number of existing laws. The and the financial sector regulators was done through virtual non-legislative aspects of the FSLRC recommendations meetings and onsite visits to strengthen the cyber are broadly of the nature of governance enhancing principles resilience of the financial sector. for stronger consumer protection and greater transparency 25Annual Report 2022-2023 in the functioning of financial sector regulators. It features 2014. These Task Forces submitted their reports following set of changes, which renders it implementable: during June 2015. Another Task Force for creating a sector-neutral Financial Redress Agency (FRA) i. The RBI will continue to exist, although with that was set up on 5th June, 2015 as announced modified functions; in the Budget Speech 2015-16 submitted its ii. The existing SEBI, FMC, IRDA, and PFRDA will Report on 30th June, 2016. Its Report is under be merged into a new UFA; examination. iii. The existing SAT will be subsumed into the FSAT; v. Apart from inviting comments on the FSLRC iv. The existing DICGC will be subsumed into the Report and the Draft IFC, the Department of Resolution Corporation; Economic Affairs in collaboration with the Institute v. A new FRA will be created; of Company Secretaries of India (ICSI) organised vi. A new PDMA will be created; and a number of workshops and seminars on specific vii. The existing FSDC will become a full-fledged areas of the IFC for building consensus on the statutory agency, with modified functions. Draft. Work on fine tuning the Draft IFC with comments of stakeholders suitably incorporated 5.4. Implementation Status of the to make it legally flawless was initiated and the recommendations of the FSLRC Draft IFC was revised in the light of the comments 5.4.1 The status and next steps on the implementation received and hosted on the website of the Ministry of the recommendations of the FSLRC are as follows:- of Finance on 23rd July, 2015, inviting comments i. As has been agreed to in the meetings of the of stakeholders by 8th August 2015. Moving the FSDC, the financial sector regulatory agencies Indian Financial Code (IFC) recommended by the are implementing the governance enhancing, non- FSLRC in totality, after due consideration, is likely legislative recommendations of the FSLRC on to take time. Key aspects of the IFC being fast- voluntary basis. A MIS Portal was developed and tracked are as follows:- inaugurated by FM in May, 2015 to put in place a. Financial Sector Appellate Tribunal: an appropriate mechanism to measure the The Securities and Exchange Board of India benchmark compliance for each Regulator/Board. Act, 1992 was amended through the Finance The MIS Portal has been modified in consultation Act 2017, for upgrading / enhancing the with the Regulators to remove several difficulties capacity of the Securities Appellate Tribunal faced by the Regulators in updating the (SAT) to hear appeals relating to the Insurance compliance status on the Portal. The Regulators and Pension sectors also and for providing have started submitting their responses on the for multiple benches. FM Division, DEA, is MIS Portal. assigned the task to undertake necessary ii. A Financial Sector Regulatory Appointment steps for the setting up of PDMA. Search Committee (FSRASC) has been created b. Establishment of a comprehensive resolution for recommending names of suitable persons for framework for the financial sector: appointment to board level positions of financial An announcement was made in the Budget sector regulatory bodies with the approval of the Speech of 2016-17 to frame a comprehensive ACC on 24th November, 2015. The FSRASC has Code on Resolution of Financial Firms and been reconstituted on 9th June, 2017. This would introduce it as a Bill in the Parliament during bring about uniformity in the selection of board 2016-17. The Financial Resolution and members of financial sector regulators, which was Deposit Insurance Bill, 2017 (the Bill) was one of the recommendations of the FSLRC on introduced in the Lok Sabha on 10th August the broad structure of such regulators. 2017 and referred to a Joint Committee of iii. As regards the establishment of a unified financial Parliament for making a Report to the agency for the organised trading, by way of an Parliament. The Bill provided for establishment incremental reform effort, the Forward Markets of a specialized Resolution Regime for Commission (FMC) has been merged with the financial sector entities. The enactment of the Bill would have empowered the Resolution Securities and Exchange Board of India (SEBI) authority to contribute to the stability and with effect from 28th September, 2015 to achieve resilience of the financial system by carrying the convergence of regulations of the securities out speedy and efficient resolution of financial market and the commodity derivatives markets. firms in distress, providing deposit insurance FMC stands abolished and the Forward Contracts to consumers of certain categories of financial (Regulation) Act, 1952 has been repealed. services, monitoring the Systemically However, there is no consensus on merging the Important Financial Institutions and protecting existing financial sector regulators into a single the consumers of financial institutions and Unified Financial Agency. public funds to the extent possible. The FRDI iv. The Task Forces for transforming the existing Bill was withdrawn from the Parliament on 7th Securities Appellate Tribunal (SAT) into the August, 2018 owing to concerns raised by Financial Sector Appellate Tribunal (FSAT) and the stakeholders’ on certain provisions of the for establishing new agencies namely, Resolution FRDI Bill for comprehensive re-consideration Corporation (RC), Public Debt Management and re-examination. Agency (PDMA) and Financial Data Management Accordingly, work on consolidating all the Centre (FDMC) were set up on 30th September, laws relating to resolution of financial sector 26Department of Economic Affairs I entities in one law and provide a specialised Committee and Terms and Conditions of their resolution mechanism to deal with bankruptcy Appointment and factors constituting failure situations in most of the financial sector to meet inflation target under the MPC entities, such as, banks, insurance Framework have also been notified in the companies, FMIs and select financial sector Gazette of India, Extraordinary on June 27, entities is under examination. 2016. The Government, in consultation with c. Establishment of an independent Financial the RBI, notified the inflation target in the Data Management Centre: Gazette of India Extraordinary dated August A centralised data centre named as Financial 5, 2016, for the first five-year period ending Data Management Centre (FDMC) is on the March 31, 2021. Keeping in mind the proposed to be set up under the aegis of the primacy of price stability in the wake of Financial Stability and Development Council supporting macroeconomic policies to boost (FSDC) that will be used for analysis of the economic recovery from COVID-19 financial stability and related issues. induced slowdown, and to further strengthen Subsequent to the FSLRC recommendation credibility of monetary policy in guiding the on creation of a statutory Financial Data inflation expectations in the economy, the Management Centre (FDMC), Government Government, after consultation with the RBI, constituted a Task Force on FDMC which, has decided to continue with the existing inter alia, recommended to establish the inflation target for the next five-year period FDMC. Strengthening the institutional starting from April 1, 2021 to March 31, 2026, mechanism for financial stability analysis is as under: being examined by the FS&CS Division, Inflation Target : 4 per cent. DEA. Upper tolerance level : 6 per cent. d. Establishment of an independent Public Lower tolerance level : 2 per cent. Debt Management Agency: The Inflation target has been notified by the An independent Public Debt Management Government in the Gazette of India, Agency (PDMA) is proposed to be set up for Extraordinary dated March 31, 2021. managing Government‘s debt and cash (iii) As per the provision of section 45ZB of the RBI balance, etc. To this effect, the Government Act, 1934, out of the six Members of Monetary set up a Public Debt Management Cell Policy Committee, three Members will be from (PDMC) on 4th October, 2016, as an interim the RBI and the other three Members of Monetary arrangement before setting up of an Policy Committee (MPC) will be appointed by the independent and statutory debt management Central Government. Accordingly, the MPC was Agency in due course. Budget Division, DEA, is assigned the task to undertake necessary constituted and notified in the Gazette of India steps for the setting up of PDMA. Extraordinary dated September 29, 2016. MPC was re-constituted and notified in the Gazette of e. Institutionalised and Statutory Monetary Policy Framework: India Extraordinary dated October 5, 2020 as follows: (i). FSLRC has recommended establishment of a statutory and an institutionalized framework a. Governor of the Bank—Chairperson, ex officio; to conduct monetary policy, including the b. Deputy Governor of the Bank, in charge of creation of a Monetary Policy Committee that Monetary Policy—Member, ex officio; would determine the policy interest rate. The c. One officer of the Bank to be nominated by the Reserve Bank of India Act, 1934 (RBI Act) Central Board—Member, ex officio; has accordingly been amended by the d. Dr. Shashanka Bhide, Senior Advisor, Research Finance Act, 2016, to provide for a statutory and an institutionalized framework for a Programmes, National Council of Applied Monetary Policy Committee, for maintaining Economic Research (NCAER), —Member price stability, while keeping in mind the e. Dr. Ashima Goyal, Professor, Indira Gandhi objective of growth. The Monetary Policy Institute of Development Research (IGIDR), and Committee is entrusted with the task of fixing Part Time Member, Prime Minister’s Economic the benchmark policy rate (repo rate) required Advisory Council (PMEAC) — Member to contain inflation within the specified target f. Dr. Jayanth R. Verma, Professor, Indian Institute level. A Committee-based approach for of Management (IIM), Ahmedabad — Member determining the Monetary Policy will add value and transparency to monetary policy (iv). The Members of the Monetary Policy Committee decisions. The meetings of the Monetary referred to in sub-paragraphs (d) to (f) above would Policy Committee shall be held at least 4 hold office for a period of four years or until further times a year and it shall publish its decisions orders, whichever is earlier. after each such meeting. (v). The Reserve Bank of India Monetary Policy (ii). Provisions of the RBI Act relating to the Committee and Monetary Policy Process chapter on Monetary Policy have been Regulations were framed and notified on July 14, brought into force through a Notification in the 2017 for ensuring full operationalisation of the Gazette of India Extraordinary on June 27, MPC. The Regulations were subsequently laid in 2016. The Rules governing the Procedure for the Lok Sabha on August 4, 2017 and Rajya Sabha Selection of Members of Monetary Policy on August 8, 2017. 27Annual Report 2022-2023 6. Infrastructure Policy and Planning infrastructure investment; Infratech; and identifying Division innovative instruments for mobilizing financial resources for infrastructure investment. The working group is co- Infrastructure Policy & Planning (IPP) Division is chaired by Australia and Brazil. headed by Shri Solomon Arokiaraj, Joint Secretary. The Division has the following Units: Under the 2022 Indonesian G20 Presidency, a Finance Unit (FU) total of 4 meetings were organized in 2022, out of which, two meetings were attended virtually, and the remaining Policy & Planning Unit (PPU) were attended in- person. In the 2022 IWG meetings, Capacity Building Unit (CBU) Shri Peeyush Kumar, Joint Secretary, IPP Division, DEA Each Unit is headed by Advisor/Director and represented Ministry of Finance as Head of the Indian assisted by Deputy Director / Assistant Director etc. Delegation and Shri Aman Garg, Director, IPP Division, 1. Finance Unit (FU) : DEA participated as a delegate. 1.1 Major Functions : As part of the 2021 Infrastructure Work Finance Unit deals with financing requirements of Programme, the Indonesian G20 Presidency focussed infrastructure including conceiving new initiatives related its discussions on scaling up infrastructure investments to infrastructure financing and promotion of investment to support sustainable development and digital in infrastructure sectors. The Unit deals with: transformation. The underlying principle for selection of  Financial Sector Reforms for long-term these themes was to narrow the investment gap in availability of financing from Domestic sources sustainable and digital infrastructure and the 2022 IWG & Foreign capital, Development Finance discussed approaches to address this challenge. Institutions and Financial Markets. India mainly supported the workstreams,  Infrastructure Financing from Fiscal resources, however, reflected its recommendations on the PSE’s IEBR and Private sector, including from deliverables. India nominated itself to be a member of National Monetization Plan the Technical Working Group to design the flagship  Matters related to infrastructure financing, deliverable of “Framework to scale up private sector including development of Infrastructure participation in sustainable infrastructure”. India Instruments and promotion of investments in suggested relevant interventions to make the Framework infrastructure sectors. outcome oriented. On the QII indicators, India submitted  Matters relating to Infrastructure Debt Funds 14 recommendations, out of which 13 were accepted and (IDFs), Real Estate Investment Trusts (REITs)/ accommodated by the IFC and Indonesian Presidency. Infrastructure Investment Trust (InvITs), Tax Free India, in the fourth meeting of the Infrastructure Working Bonds, Municipal Bonds, Sovereign Green Group, also reflected its proposed 2023 Infrastructure Bonds and other instruments meant for Agenda, and outlined how it is strategically aligned with infrastructure financing. the work done by previous presidencies.  Matters relating to SPV for Credit Enhancement First Infrastructure Working Group under Indian of Infrastructure Projects and New Credit Rating Presidency was held in Pune in January 2023. The System for Infrastructure. meeting was attended 64 delegates from by 18 member  All International engagement on infrastructure countries, 8 guest countries and 8 international financing (other than PPPs). organisations.  Matters relating to issues of Municipal Bonds by 1.2.2 Real Estate Investment Trusts (REITs)/ Urban Local Bodies (ULBs) for PPP and Non- Infrastructure Investment Trust (InvITs) PPP Projects. REITs/ InvITs are trust-based structures that  Model Tripartite Agreements (MTA) for sectors maximize returns through efficient tax pass-through and such as Road, Ports, Airports. improved governance structures. Guidelines/Regulations  Matters relating to Infrastructure Working Group for InvITs and REITs were notified by SEBI on 26 (IWG) of G-20. September, 2014. SEBI regulations permit InvITs/REITs  Matters relating to meetings of Board of Directors to have a single tier structure comprising the Trust and of IIFCL, AIAHL, NIIFTL as JS (IPP) is Special Purpose Vehicle (SPV) or a two-tier structure Government nominee on its Board of Directors; comprising the Trust, Holdco (Holding Company) and 1.2 Major Policy Initiatives/ Achievements: SPV. Presently, there are 19 registered InvIT’s with SEBI 1.2.1 G20 Infrastructure Working Group (G20-IWG) and 13 are operational InvITs. InvITs have raised Infrastructure Working Group (IWG) is a working cumulative funds of about INR 79,482.58 crores till date group under the G20 Finance Track that drives G20’s either through public issue, private placement, or rights infrastructure agenda. The IWG deliberates on various issue. Similarly, total 3 REITs have raised cumulative aspects of infrastructure investments including developing funds of about INR 15,249.99 crores in the commercial infrastructure as an asset class; promoting quality real estate segment through public issue. 28Department of Economic Affairs I 1.2.3 Infrastructure Debt Funds (IDFs) (erstwhile Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) Limited), IDFs were created essentially to act as vehicles for refinancing existing debt of infrastructure companies, National Industrial Corridor Development and thereby creating fresh headroom for banks to lend to fresh Implementation Trust (NICDIT) National infrastructure projects. IDFs were expected to channelize Highways Authority of India (NHAI), Digital long term funds from insurance and pension funds, Communications Commission (erstwhile sovereign wealth funds etc to supplement lending for Telecom Commission) infrastructure projects by commercial banks which are  Ministries/Departments: M/o Road Transport & increasingly being constrained by their asset-liability Highways, M/o Ports, Shipping & Waterways, M/ mismatch and exposure limits. oCivil Aviation, M/o Railways, M/o Housing and IDFs are set up by sponsoring entities either as Urban Affairs, Dept. Of Telecommunications, and NBFCs – which are regulated by the RBI and as Mutual Dept. Of Posts. Funds which are regulated by SEBI. As on date, four IDFs 2.2 Major Policy Initiatives/ Achievement: under NBFC route and two under MF route are in 2.2.1 Harmonized Master List of Infrastructure Sub- operation. sectors 1.2.4 Sovereign Green Bond Framework The HML was formulated in 2012 under the broad In keeping with the ambition to significantly framework, developed by the committee chaired by Dr. reduce the carbon intensity of the economy, the Union C. Rangarajan. The inclusion of any sector in the HML Budget 2022-23 announced the issue of Sovereign Green enables it to avail infrastructure lending at easier terms Bonds (para 103). with enhanced limits, access to larger amounts of funds The budget para 103 is reproduced as below: as External commercial Borrowings (ECB), access to ‘As a part of the government’s overall market longer tenor funds from insurance companies and borrowings in 2022-23, sovereign Green Bonds will be pension funds and be eligible to borrow from India issued for mobilizing resources for green infrastructure. Infrastructure Financing Company Limited (IIFCL) etc. The proceeds will be deployed in public sector projects In October, 2022, 2 sub-sectors i.e. “Data Centre” and which help in reducing the carbon intensity of the “Energy Storage System” have been included in economy.’ Harmonised Master List of Infrastructure Sub-sector. The Towards this agenda, the Finance Unit worked updated HML list now includes 37 Infrastructure sub on a Green Bond Framework that sets forth the sectors under 5 categories i.e. 1. Transport and Logistics, obligations of the Government of India as a Green Bond 2. Energy, 3. Water and Sanitation, 4. Communication issuer. The Framework applies to all sovereign Green and 5. Social and Commercial Infrastructure. Bonds issued by the Government of India. The framework 2.2.2 National Infrastructure Pipeline (NIP) is designed to comply with four components and key recommendations of the International Capital Market National Infrastructure Pipeline (NIP) aims to Association (ICMA) Green Bond Principles (2021). These improve project preparation and attract investment into principles recommend delineation of a clear process and infrastructure. To draw up the NIP, a High-Level Task disclosure by the issuer to enable the investors and banks Force was constituted under the chairmanship of the and others to understand the characteristics of the green Secretary, Department of Economic Affairs (DEA). The bond. Final Report on National Infrastructure Pipeline for FY 2. Policy & Planning Unit (PPU) 20-25 of the Task Force was released by the Hon’ble 2.1 Major Functions: Minister for Finance & Corporate Affairs, Smt. Nirmala  Infrastructure Investment Policy Sitharaman on 29th April, 2020.  Institutional Mechanism on the Harmonized NIP has been made on a best effort basis by Master List of Infrastructure Sub-sectors aggregating the information provided by various  National Infrastructure Pipeline (NIP) planning, stakeholders including line ministries, departments, state periodic review and updating (Aligning with Gati- governments and private sector across infrastructure sub- Shakti vision, prioritizing the projects and sectors, as identified in the Harmonized Master List of Anchoring to India@2047 vision) Infrastructure. All projects (Greenfield or Brownfield,  NIP monitoring framework & NIP Implementation under conceptualization or under implementation or under Development) of project cost greater than Rs. 100 crore  Analysing non-PPP investment proposals per project were sought to be captured. DEA works in concerning Road Transport & Highways, Ports, Shipping, Inland Water Transport, Railways, close coordination with Invest India, line Ministries/ Telecommunications, Civil Aviation & Urban Departments and State Governments to monitor the Development sectors progress of projects under the NIP.  Institutions: National Industrial Corridor NIP was launched with 6,835 projects worth Development Corporation (NICDC) Limited around 111 Lakh Crore, which has expanded to over 8,900 29Annual Report 2022-2023 projects covering 37 sub-sectors. NIP portal is being Mumbai, 9th September, 2022 at Chandigarh and 30th maintained and regularly updated by Invest India Grid September, 2022 at Varanasi. (IIG) in consultation with the stakeholders. The same may Further, a workshop on Track 2 - “Private be accessed at: https://indiainvestmentgrid.gov.in/ Investment in Manufacturing, Housing and Real Estate and national-infrastructure-pipeline. Services” of Sub-Theme 2 - ‘Infrastructure & Investments’ 2.2.3 Accelerating capital expenditure by under pillar 1 - ‘Growth and Job Creation’ in the run-up to Infrastructure Ministries the 2nd National Conference of Chief Secretaries, was The government has stepped up its preparations organised on 1st December, 2022 at Guwahati, Assam to bring India among the top three global economies and by the track-lead State ‘Assam’ and the Policy & Plmming inch closer to the status of a developed nation by the Unit of ‘Department of Economic Affairs’, Gol, and lOOth year of its Independence. As part ofindia’s vision witnessed participation from 19 State Governments & 2047, the Centre has stressed upon the importance of Union Territories increasing capital expenditure to crowd-in private investments and enable extraordinary increase in the 3. Capacity Building Unit (CBU) economic growth. 3.1 Major Functions: Regular meetings of the Council of Ministers have Capacity Building Unit (CBU) CBU is entrusted been conducted in September, October, and November with the work related to Capacity Building in Central 2022 to closely monitor capital expenditure progress Ministries/State Governments and other Agencies through of different ministries, departments, and states against their trainings/workshops/seminars for project preparation, respective projected target for FY 2022-23. During these meetings, it was emphasized that the concerned design and structuring, project appraisal, project ministries and CPSEs should ensure full utilization of financing, pre-project activities, procurement, the Capex outlays during the current year and plan well implementation planning and management etc. in advance for implementation during the next year. Considering the need for a larger programmatic The result of the efforts is visible in Ministries/ approach to improve capacity it is desirable to provide Departments capex spending till January 2023 in Current training/workshop for officials executing projects and Financial Year (CFY), which has been Rs. 5.93 lakh crore drafting concessions/contracts etc. in order to have (~79% achieved against the Budgeted Capex of 7.5 lakh rigorous understanding of the frameworks, principles, crore) as against Rs. 4.42 lakh crore for the same period regulations guiding our Infrastructure ecosystem. Such in FY 21-22 (i.e., till January 2022). The actual expenditure a programmatic training design is required to not only in CFY is also ~34% higher than the expenditure in FY enhance the appraisal of capacity of the officials working 21-22 for the corresponding period. at the ground level but also support in better 2.2.4 Infrastructure Investment Proposals conceptualization and structuring of projects. This A total of 90 DIB/SFC Memorandum, 9 PJB/EFC becomes much more important for Public Private Memorandum, 11 proposals of M/o Shipping’s Partnership (PPP) projects where expertise is required Empowered Committee and 28 CCEA/Cabinet/GoM in areas such as PPP Structuring, Project Appraisal and Notes received from line Ministries/Departments i.e. Approval Process, Value for money, cost benefit analysis, MoRTH, MoHUA, M/o Shipping, M/o Railways, DoT, MoCA and Dept. of Ports have been examined. All these Project Selection approaches, Data analysis and Legal Investment Proposals were related to a number of bidding clauses etc. infrastructural projects, implementation of which would play The capacity building programmes are also an important role in improvement in the infrastructure instrumental in stirring necessary dialogue between and would automatically bring socio­ economic growth Ministries and State Governments to learn from pitfalls in the region where the project would be implemented. and success of each other’s project experiences. 2.2.5 Workshops with States in Infrastructure This Financial year (FY 2022-23), as on 7th development February,2023, 26 training programs have been DEA is conducting workshops with States to conducted by DEA in association with top Institutions like explore the progress in infrastructure development IIMs, ISB, AJNIFM, World Bank, IIBF etc. Total of 839 through existing required initiatives under Infra Financing, officers comprising of 528 officers from 22 Central Infra Implementation and PPP encouragement. The Ministries and 15 CPSEs and 311 officers and from 29 workshop aims to deliberate on measures to attract private financing and understand ground issues faced State Governments and Union Territories from across the . by implementing agencies in undertaking large country have participated in these trainings. Over 1490 infrastructure projects. During the year 2022, DEA has nominations have been received till date for these conducted 3 workshops i.e. on 22nd August, 2022 at trainings this financial year. 30Department of Economic Affairs I 7. Investment and Digital Economy Division Automatic route. FDI under the automatic route does not require prior approval either by the Government of India 7.1. Investment Division : lnvestment Division or the Reserve Bank of India (RBI). Investors are only comprises of four different sections. The major functions required to notify and file documents with the concerned of the lnvestment Division are as under: Regional Offices of RBI. Under the Government approval To provide policy support on Foreign/ Domestic route, applications for FDI proposals are considered and lnvestment policies including new policy initiatives in approved by the respective subject matter Ministries on Foreign Direct lnvestment (FDl)/Domestic lnvestment (Dl) the Foreign Investment Facilitation Portal (FIFP), the new Policy besides FDI/Dl policy clarifications & related online single point interface of the Government of India matters for investors to facilitate Foreign Direct Investment. Foreign Exchange aspect related to Gold DEA is entrusted with the power to approve including Gold Monetisation Scheme, Indian Gold Coins FDI proposals (as per the extant FDI Policy, 2020) for: etc. (a) “Financial services which are not regulated To coordinate with Ministry of Steel, Ministry of by any Financial Sector Regulator or where Micro, Small & Medium Enterprises (MSME) , Ministry of only part of the financial services activity is Textiles, Ministry of Electronic and lnformation regulated or where there is doubt regarding Technology, Department of Chemical and Petro the regulatory oversight”; and Chemicals, Department of lnvestment and Public Asset (b) Applications for foreign investment into a Management (DIPAM), : Department for Promotion of Core Investment Company or an Indian lndustry & lnternal Trade (DPllT), Department of Public company engaged only in the activity of Enterprises (DPE), Department of Commerce and investing in the capital of other Indian Department of Heavy lndustry on investment issues and Company/ies. also offering them comments / suggestions on various Government of India has reviewed the extant FDI matters as per need of the Indian economy. policy on various sectors and amended from time to time. To negotiate and conclude Bilateral lnvestment Following FDI Policy reforms have inter-alia been Treaties (BlTs) and lnvestment Chapter of FTAS/CECA/ undertaken by the Government across sectors in the CEPA with other countries on the basis of the revised recent past: Model Bilateral lnvestment Treaty (BlT)Text which was a. Review of the FDI policy on downstream approved by the Cabinet on 16th December, 2015 and to investments made by Non-resident Indians also handle the Investor State Dispute Settlement (ISDS) (NRIs): notices/cases arising out from BITs/FTAs signed with GoI vide Press Note 1 (2021) reviewed FDI policy Foreign countries as a nodal Department in GOI. in relation to investments made by an Indian Matter related to equity investments from both company owned and controlled by Non-resident domestic and international sources for infrastructure Indians on a non-repatriation basis and in order development in commercially viable projects, both to provided clarity on downstream investments. greenfield and brownfield, including stalled projects b. FDI in Insurance Sector through National lnvestment and lnfrastructure Fund The GoI vide Press Note 2 (2021) increased the (NllF). permissible FDI limit from 49% to 74% in 7.2. SECTION.WISE ALLOCATION OF WORK Insurance companies along with other applicable A) FDI AND ODI (FOREIGN DIRECT condition. INVESTMENT & OVERSEAS DIRECT c. FDI in Petroleum and Natural Gas Sector INVESTMENT) POLICY SECTION The GoI vide Press Note 3 (2021) permitted The main function of FDI Policy section is to foreign investment up to 100% under the provide policy support on Foreign Investment including automatic route in cases where the government new policy initiatives in Foreign Direct Investment (FDI) has accorded ‘in-principle’ approval for a strategic and FDI policy clarifications & related matters. This disinvestment of a PSU engaged in petroleum Section primarily co-ordinates with DPIIT, DFS, RBI and and natural gas sector. SEBI on foreign investment issues and also offers them d. FDI in Telecom Sector comments / suggestions on any amendment in FDI policy The GoI vide Press Note 4 (2021), has permitted as per the need of the Indian economy. It also suggests 100% FDI in telecom sector through automatic measures for improving investment environment in India route for all telecom services permitted by DoT with respect to FDI policy. This section also publishes except cases requiring prior government Overseas Direct Investment (ODI) outflows data across approval under the provision of para 3.1.1 in the sectors and counties on DEA’s website on monthly basis. extant FDI policy. To promote Foreign Direct Investment (FDI), the e. FDI in Life Insurance Corporation of India Government has put in place an investor-friendly policy The GoI vide Press Note 1 (2022) dated which is transparent, predictable and easily 14.03.22, Government has permitted 20% FDI comprehensible. Except for a small negative list, most in Life Insurance Corporation of India (LIC) under sectors have been made open for 100% FDI under the automatic route. 31Annual Report 2022-2023 Consequently, India has recorded highest ever Regulations, 2022 had been notified in the Gazette of annual FDI inflow of USD 84.84 billion in the India dated 22.08.2022. The copy of the notification laid Financial Year 2021-22. The details of total FDI on table of Lok Sabha and Rajya Sabha in Winter Session inflows reported during the last five financial years of parliament in December, 2022.The revised regulatory are given in table 1. framework for overseas investment provides for Overseas Investment Rules and Regulations Notified simplification of the existing framework for overseas investment and has been aligned with the current The Government of India in consultation with the business and economic dynamics. Clarity on Overseas Reserve Bank undertook a comprehensive exercise to Direct Investment and Overseas Portfolio Investment has simplify these Overseas Investment Rules & Overseas been brought in and various overseas investment related Investment Regulations. Final Foreign Exchange transactions that were earlier under approval route are Management (Overseas Investment) Rules and Foreign now under automatic route, significantly enhancing “Ease Exchange Management (Overseas Investment) of Doing Business”. TABLE 1: TOTAL FDI INFLOWS DURING THE LAST FIVE FINANCIAL YEARS S. Financial Year FOREIGN DIRECT INVESTMENT INFLOWS No. (April-March) (Amount in US$ Billion) Equity Inflows Reinvested Other Total FDI FIPB unincorporated Earnings capital bodies 1 2017-18 44.86 0.66 12.54 2.91 60.97 2 2018-19 44.37 0.69 13.67 3.27 62.00 3 2019-20 49.98 1.76 14.18 8.48 74.39 4 2020-21 59.64 1.45 16.94 3.95 81.97 5 2021-22(P) 58.77 0.91 19.35 5.81 84.84 6 2022-23 (P) 26.91 0.43 9.25 2.51 39.10 (Up to September, 2022) Cumulative FDI inflows 618.20 20.01 199.83 49.73 887.76 in India since 2000 (up to September, 2022) Source: DPIIT, P: - Figures are Provisional B) INTERNATIONAL INVESTMENT TREATIES AND the base text for replacing the existing BIPA with and for FRAMEWORK (IITF) having new agreements. The main function of IITF Section is to negotiate Achievements and conclude Bilateral Investment Treaties (BITs) with 2. Based on India’s Model BIT 2015, India has other countries on the basis of the revised Model Bilateral signed the following Treaties/Agreement with other Investment Treaty (BIT) Text which was approved by the countries/Jurisdictions: Cabinet on 16th December, 2015. This section also 3. India is currently discussing and negotiating Bilateral handles the Investor State Dispute Settlement (ISDS) Investment Treaties at various stages with U.K, Canada, notices/cases arising out from BIT/FTAs signed with European Union, Australia, Iran, Morocco, UAE, foreign countries as a nodal department in GoI. The Switzerland, Oman, Israel, Cambodia, Qatar, Tajikistan, Model BIT text approved in 2015, aims to provide Russia, Saudi Arabia, Mexico, Hong Kong, Mauritius, San appropriate protection to foreign investors in India and Marino, Argentina, Armenia, Azerbaijan, Ethiopia, Bolivia, Indian investors in the foreign country, in the light of Cote d’Ivoire, Kuwait, Philippines, Zimbabwe, Egypt, relevant international precedents and practices, while Thailand, Turkmenistan and a Bilateral Investment maintaining a balance between investor’s rights and Agreement with Taipei Economic and Cultural Centre Government obligations. The Indian Model BIT text is (TECC). 32Department of Economic Affairs I S.No. Country and Name of Agreement Date of Date of Present Agreement Enforcement Status 1. Belarus: Bilateral Investment Treaty 24th September, 5th March, Active 2018 2020 2. Brazil: Investment Cooperation & 25th January, 2020 To be ratified Facilitation Treaty 3. Kyrgyz Republic: Bilateral Investment 14th June, 2019 To be ratified Treaty 4. Bilateral Investment Agreement 18th December, 14th February, Active between between India Taipei 2018 2019 Association (ITA) in Taipei and Taipei Economic and Cultural Center (TECC) in India 5. Uzbekistan: Bilateral Investment Treaty - - Negotiations concluded 4. In May 2022 India has also signed Investment Incentive and, over time to reduce the country’s dependence on Agreement with Government of USA. the import of gold, Government launched the Gold Monetisation Scheme on 5th November, 2015. C) FOREIGN TRADE & SERVICES (FT) SECTION The Gold Monetization Scheme comprise of the The main function of Foreign Trade (FT) section ‘Revamped Gold Deposit Scheme’ and the ‘Revamped of investment division is dealing with the Policy matters Gold Metal Loan’ scheme, linked together. The minimum related to Gold viz. Gold Monetisation Scheme (GMS), deposit at any one time shall be 10 grams of raw gold Indian Gold Coin (IGC) and Gold Metal Loan (GML), (bars, coins, jewellery excluding stones and other metals). Drafting Policy for promotion of Gold as a Financial Asset There is no maximum limit for deposit under the Scheme. Class and providing advice on references received from Depositors may avail two options for deposit: Ministry of Commerce, Heavy Industries and MSME and Short term bank deposit (1-3 years) and coordination within Investment Division.  Medium and Long Term deposit (5-15 year) 2. Gold Monetization Scheme: With a view to mobilize  the idle gold held by households and institutions in the Till November 2022, approximately 27,530 kilograms country; and put this gold to productive use, e.g., by of gold have been mobilised under GMS. The details are making available gold for the gems and jewellery sector; as under: Details of Gold Mobilized under GMS (5th Nov, 2015 to 30 Nov, 2022) Sl.No. Types of Deposit Deposited gold as on 30.11.2022 (in Kgs) 1 Cumulative Quantity of Gold (in Kgs) 27,530 a Short Term Gold Deposit 7,366 b Medium Term Gold Deposit 8,082 c Long Term Gold Deposit 12,082 2 Number of participating Banks 10 3 Number of depositors 4382 33Annual Report 2022-2023 3. Indian gold Coin 2021 265.3 Kgs of Indian Gold Coin has been sold out The Indian Gold Coin (IGC) is manufactured out as per summary placed below. Thereafter, there were no of domestic gold (received under GMS) and is sales in the month of September 2021. & onwards as the domestically manufactured (Make in India) standard gold coins/bars in different denominations. Till 31st August, MMTC has no coins to sell. IGC SALES Details (5th Nov 2015 to 31 August 2021) Turnover (In Weight Sold Qty. Sold Denomination-wise details ( in number) crores) (In Kgs) (in Nos.) 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 SECTION exceeding its original target of USD 2.1 billion. Alongside GOI, the investors in the NIIF MF include Abu Dhabi A. National Investment and Infrastructure Fund (NIIF) Investment Authority (ADIA), UAE; Temasek, Singapore; 1. Background: AustralianSuper, Australia; Ontario Teachers’ Pension Plan (OTPP), Canada; CPP Investments (CPPIB), The establishment of the NIIF was announced vide Canada; PSP Investments, Canada; US International para 47 of the Budget Speech on 28 February 2015 and Development Finance Corporation (DFC), United States; approved by the Union Cabinet on 28 July 2015. It was and select domestic institutional investors including HDFC envisaged that the NIIF would attract equity investments Limited, HDFC Life Insurance, HDFC Asset Management from domestic and international sources for infrastructure Company, ICICI Bank, Kotak Life Insurance and Axis development in commercially viable greenfield and Bank. brownfield projects, including stalled projects. It could also The Fund’s current portfolio consists of the following consider other nationally important projects, for example, investments: in manufacturing, if commercially viable. NIIF can also a. Hindustan Infralog Private Limited (HIPL) & invest in the corpus created by Asset Management Hindustan Ports Private Limited (HPPL): NIIF MF and Companies (AMCs) for investing in private equity. DP World, Dubai, have set up a ports and logistics Anchored by the GOI with a 49% stake, the mandate for company, Hindustan Infralog Private Limited (HIPL), to NIIF is also to raise the balance 51% from international consolidate and develop assets across the entire value and domestic institutional investors over time. chain from ports to inland logistics. Over three years, HIPL has become the country’s second-largest player in inland National Investment and Infrastructure Fund Trustee Ltd. (“NIIF Trustee Ltd.”), a 100% Government of India container logistics. HIPL’s portfolio consists of ICDs/PFTs, (GOI) company, is the Trustee of NIIF-managed funds. FTWZs, container freight stations, cold chain facilities, container trains and CTO licenses. NIIF MF has expanded Three funds, i.e. National Investment and its partnership with DP World. It announced an investment Infrastructure Fund (Master Fund), NIIF Fund of Funds- into HPPL, DP World’s wholly owned subsidiary, for a I and National Investment and Infrastructure Fund-II 22.5% stake. HPPL is one of India’s leading container (Strategic Opportunities Fund), have been established terminal platforms and operates five container terminals under the NIIF platform. The funds are registered with in strategic growth locations. SEBI as Category II Alternative Investment Funds and b. Ayana Renewable Power Limited: NIIF MF, Green managed on a day-to-day basis by National Investment Growth Equity Fund (GGEF) and CDC, U.K. have and Infrastructure Fund Ltd. (“NIIF Ltd.”), a company registered under the Companies Act, 2013 and regulated invested jointly in this company focused on the renewable energy sector in India. The company currently has an by SEBI as a fund manager of these funds, with ~USD operational capacity of approximately 1.3 GW and 4.3 billion in assets under management. another 2.5 GW under development. Ayana has signed 2. Investments a Memorandum of Understanding with Greenstat An overview of the three funds currently managed Hydrogen India to accelerate hydrogen technology by NIIF Ltd. is as follows: development and to collaborate to produce green I. Master Fund hydrogen in India. They are currently executing a pilot project in Karnataka. NIIF Master Fund (NIIF MF) is the largest India- focused infrastructure fund. The Fund primarily invests c. Athaang Infrastructure Private Limited: NIIF in operating assets in core infrastructure sectors, such MF has incubated an in-house roads sector-focused as transportation and energy, through its portfolio company. The company has acquired four strategic road companies. It achieved its final close in December 2020 assets, including the Bangalore city airport connector, the and attained an INR equivalent of USD 2.34 billion, toll road connecting Hyderabad to Nagpur and a highway and tunnel road that connect Jammu and Srinagar. 34Department of Economic Affairs I d. IntelliSmart Infrastructure Private Limited: b. HDFC Capital Affordable Real Estate Fund 2 NIIF MF and Energy Efficiency Services Limited (EESL) (HCARE-2): NIIF FoF has committed INR 660 crore to have set up this company jointly to implement and operate HCARE-2, managed by HDFC Capital Advisors. The fund smart energy meters across the country. IntelliSmart is provides structured debt to developing mid-income and managing 2.5 million smart meters across the country. It affordable housing developers. HCARE-2 has financed had won the first competitive bid in the country for smart 78,000+ housing units, which are under various stages metering in the state of Assam for 0.6 million meters and of development. has achieved Go-Live for the first phase of this project. c. Multiples PE Fund III: NIIF FoF is an anchor In December 2022, IntelliSmart emerged as the preferred investor in Multiples PE Fund III, a mid-market growth bidder to deploy 6.7 million smart meters in Western Uttar equity fund. NIIF FoF committed INR 878 crore to the Pradesh (UP). Fund, catalysing capital from various multilateral e. Digital Infrastructure Platform: In March 2022, agencies, pension funds, another fund of funds and family NIIF MF created a platform focused on developing hyper- offices. The Multiples PE Fund III’s mandate is to provide scale data centres across multiple metro cities in India. growth equity to mid-market companies across f. Airports: In December 2022, NIIF MF healthcare, BFSI, education, technology, consumer etc. announced a partnership with GMR Airports Limited d. Somerset Fund II: NIIF FoF has committed INR (GAL) to fund equity capital for three airport projects in 125 crore to Somerset Indus Healthcare India Fund II the country, including two greenfield airports which are (Somerset Fund II). The Fund focuses on providing part of the USD 1.5 trillion National Infrastructure Pipeline growth capital to entrepreneurs of SME businesses (NIP). NIIF MF is investing in the upcoming airport at operating in the affordable healthcare segment. NIIF has Mopa, Goa which has a design capacity of handling up invested in hospitals in Tier 2 and 3 cities through this to 4.4 million passengers per annum, with an ultimate fund, pioneering innovative models using technology to capacity of up to 40 million passengers per annum. provide access to high-quality healthcare solutions. For II. Fund of Funds example, the fund has invested in 4 hospitals in Rajasthan, including Jaipur, Sawaimadhopur and NIIF Fund of Funds (NIIF FoF) is one of the most Jhunujhunu. significant India-dedicated Funds of Funds. It is focused on building a portfolio of funds across investment e. Arpwood Partners Fund I: NIIF FoF is an strategies and diversified sectors. NIIF FoF closed its anchor investor in Arpwood Partners’ maiden fund and fundraising in September 2021 at an INR equivalent of has committed approximately INR 600 crore to the Fund, USD 600 million. Anchored by the GOI, it has received which focuses on the mid-market buyout / control commitments from multilateral institutions, including Asian segment. The Fund has invested in one of the largest Infrastructure Investment Bank (AIIB), Asian multi-speciality hospital chains in Gujarat with 6 hospitals Development Bank (ADB) and New Development Bank and a focus on oncology and cardiac with 900+ beds. (NDB). The Fund’s current portfolio consists of six f. YourNest Fund III: NIIF FoF is an anchor portfolio funds: investor in YourNest Innovative Products VC Fund III, a. Green Growth Equity Fund: NIIF FoF and which invests in ventures across a spectrum of deep- Foreign Commonwealth and Development Office (FCDO) tech domains and products built around emerging UK anchored GGEF, India’s first climate-focused fund. It technologies with applications at scale. achieved a final close at ~USD 740 million (~INR5,000 III. Strategic Opportunities Fund crore), making it one of the most significant single-country NIIF Strategic Opportunities Fund (SOF) is a climate-focused funds in emerging markets. EverSource growth equity fund focused on high-growth businesses Capital, a joint venture between Everstone Group and Lightsource BP, manages the Fund. GGEF invests in in financial services, social infrastructure (healthcare, growth-oriented entities in the green infrastructure space education, agriculture), technology and manufacturing. in India and has invested in businesses in utility-scale It is targeting to build a portfolio of domestic champions. renewables, commercial and industrial distributed energy, The Fund is currently raising capital and is in discussion waste management, e-mobility, green finance and waste- with select international and domestic investors. So far, water treatment. Its companies have invested in electric the Fund has raised commitments from GOI and the State buses in UP, a water treatment project in West Bengal Bank of India (SBI). NIIF SOF has made four investments under the Namami Gange scheme, amongst other tasks. so far: 35Annual Report 2022-2023 a. NIIF Infrastructure Finance Limited (NIIF IFL): of INR 10,037.5 crore on December 06, 2019. The Fund NIIF SOF invested in NIIF IFL, an NBFC registered as an has as on December 06, 2022 secured additional Infrastructure Debt Fund with the Reserve Bank of India. commitment of INR 5,000 crore from Government of NIIF IFL provides long-term refinancing solutions to India taking the aggregate Fund’s commitment to INR operational infrastructure projects across the country that 15,530 crore. This additional commitment is subject to have completed at least one year of satisfactory operations. approval by all investors. b. Aseem Infrastructure Finance Limited (AIFL): The Fund invests in RERA-registered housing NIIF SOF also invested in an NBFC-IFC, Aseem projects where 90% of Floor space index (FSI) is Infrastructure Finance Limited (AIFL), which invests in dedicated for Affordable/ Mid-Income Housing, RERA projects across the infrastructure spectrum with a mix of carpet area of the units is less than 200 sqm and houses operating, brownfield and greenfield assets. are priced below INR 2.0 crore in MMR, below INR 1.5 crore in NCR, Chennai, Kolkata, Pune, Hyderabad, AIFL and NIIF IFL work complementarily to cover Bangalore and Ahmedabad and below INR 1.0 crore in the full range of infrastrucsture debt financing in India. The Rest of India. The projects also have to be net-worth total loan book size (across both NBFCs) is ~INR 26,000 positive and at least 30% of the project costs has to be crore, and there is no NPA position across the portfolios of completed. both companies. II. Investment strategy of the Fund: c. Manipal Hospitals: The Manipal Group has 27 hospitals across India, with a critical focus on tertiary and a. The Real estate market has bottomed out in 2017 quaternary care. NIIF SOF’s investment supported Manipal and is now on an uptrend. Affordable and Mid- Hospitals’ expansion plans and has grown from a regional income housing has continued to clock sales and healthcare company to the second largest hospital chain has also received considerable support from the in India. government in terms of tax incentives. Thus, there is an opportunity to invest to complete construction d. Ather Energy: NIIF SOF invested in Ather Energy, of stressed projects. Market studies have shown one of India’s leading electric two-wheeler companies. that INR 55,000 crore are needed to complete Since SOF’s investment, Ather Energy has increased its construction of stressed net-worth positive projects. manufacturing capacity from 1,10,000 scooters per annum However, NBFC funding to the sector has dried up to 4,00,000. and thus there is a substantial deal flow of stressed B. Special Window for Affordable and Mid-Income projects that will need the capital provided by the Housing (SWAMIH) SWAMIH: Fund I. Background: b. The Fund has the opportunity to provide priority last- The proposal to set up a ‘Special Window’ in the mile capital with seniority of charge on the asset form of AIF to provide priority debt financing for the and cash flows and to be repaid completely before completion of stressed / stalled housing projects was any other projects debts are serviced. Thus the Fund approved by the Union Cabinet on November 06, 2019. will be able to generate significant returns for the The Special Window for Affordable and Mid-income reduced risk profile of it seniority in the capital Housing (SWAMIH) Investment Fund I (“Fund”) has been structure. formed to complete construction of stressed, brownfield, c. The Investment Manager of the Fund is SBICAP RERA registered residential developments that are in the Ventures Ltd. (SVL), an asset management affordable housing / mid-income category, are net worth company that is a wholly owned subsidiary of SBI positive and require last mile funding to complete Capital Markets Ltd. which in turn is a wholly owned construction. subsidiary of State Bank of India. The Government of India is the sponsor of the III. CURRENT STATUS OF SWAMIH Investment Fund fund and has committed a fund infusion of up to INR 10,000 I crore in the Special Window. Further investments will be The Fund has made ten drawdowns as of November brought in through institutional and private investors. The 30, 2022 and called for a total INR 4,651.16 crore and Fund has a target corpus of INR 12,500 crore with a all investors have completed their capital contribution greenshoe option of INR 12,500 crore. The Fund achieved as required. a first closing with 14 investors and a capital commitment 36Department of Economic Affairs I Commitments and Investments by ALL Investors (as on 30.11.2022) Investor Committed Amount (INR Cr) Government of India 5,000(1) State Bank of India 1,250(2) Life Insurance Corporation 1,250(2) Union Bank of India 500 Indian Bank 400 Punjab National Bank 400 Canara Bank 400 Bank of Baroda 400 Central Bank of India 400 HDFC Limited 250 Bank of India 100 Bank of Maharashtra 100 Punjab & Sind Bank 75 SBICAP Ventures 5 Total 10,530 Note:(1 ) The Fund has as on December 06, 2022, secured additional commitment of INR 5,000 crore from Government of India taking the aggregate Fund’s commitment to INR 15,530 crore. This additional commitment is subject to approval by all investors. (2) Up to 10% of the Fund size or INR 1,250 crore whichever is lower. IV. OTHER SIGNIFICANT DEVELOPMENTS Debt Platform, comprising of Assem Infrastructure (a) Hon’ble Supreme Court (SC) directed project Finance Limited (AIFL) and NIIF Infrastructure Finance completion: The Hon’ble Supreme Court passed an Limited (NIIF-IFL). order dated September 1, 2020, in respect of the NIIF investing INR 2,299 crores, set up specialised proposed funding by the Fund into the Amrapali infrastructure financing institutions Aseem Infrastructure Group. The Court has provided a broad framework Finance Limited (AIFL), an NBFC-IFC and NIIF for the Fund’s investment funding into the Identified Infrastructure Finance Limited (NIIF IFL), an NBFC-IDF, Site(s) and had directed the Receiver and the Fund together the NIIF Infrastructure Debt Platform (IDP). The to formulate the precise modalities. IDP continues to have a pristine loan book with Nil NPAs The Hon’ble Court has approved the funding of INR with the AUM of INR 26,000+ crores from ~INR 4,200 650 crore in the 6 Identified site(s). The Court crores at acquisition. The IDP has also been an active appointed Receiver has incorporated the Section 8 player in the bond market and has raised ~INR 18,000+ company - Amrapali Stressed Projects Investments crores so far. and Resolution Establishment (“ASPIRE”) for As part of Atmanirbhar Bharat 3.0, the Union funding. The Fund has begun disbursements in the Cabinet approved an additional commitment of INR 6,000 project and has funded Rs 245 crore as of November crores into the IDP. The IDP has drawndown INR 1,700 30, 2022. crores from GOI till November 2022. The GOI (b) Fully exited nine projects and commenced partial commitment and substantial capitalisation during the initial exit in 12 projects: The Fund has received full days enabled AIFL to get an AA+ rating within its first full redemption proceeds of INR 363.3 crore of face value year of operations and facilitated their early access to of NCDs invested in the 9 projects along with bond markets. For NIIF IFL, the capital commitment was redemption premium at an IRR of 12% aggregating instrumental in enabling the platform to take lead positions to INR 415.6 crore as of November 30, 2022. A total and enable larger loans while being an active player in of ~INR 531.9 crore, that includes partial exits, has the bond market. At the platform level, the GOI capital been distributed back by the Fund to all investors. drawndown has been leveraged ~11x times already. (c) Handover of 19,572 houses achieved: As of Further, on the equity capital front, AIFL, has attracted November 25, 2022, the Fund has delivered 19,572 Sumitomo Mitsui Banking Corporation (SMBC), one of homes in 41 projects which are in various phases of Japan’s megabanks to take a 10% stake. completion. Of these, Occupation Certificates (“OC”) Thus, the IDP has been tracking well on all the have been received for 11,532 houses and OCs has objectives set forth for the commitment: Scaling been applied for 8,040 houses. specialised infra financing institutions, catalysing C. NIIF Infrastructure Debt Financing Platform international investors while being a significant player in The Cabinet in its meeting held on 25.11.2020, infrastructure debt financing and acting as an intermediary approved an equity infusion of Rs 6000 crores in NIIF in the Bond Market. 37Annual Report 2022-2023 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 National Rural Livelihoods Project, policy matters of Multilateral Funding Institutions like Strengthening Teaching-Learning and Results for States World Bank Group, International Monetary Fund (IMF), Project, North Eastern Region Power System Asian Development Bank (ADB) and related Institutions. Improvement Project, Raising and Accelerating MSME FB & ADB Division is also the nodal point for facilitating Performance, National Ganga River Basin Project, Green and monitoring Externally Aided Projects (Central & State National Highways Corridor Project, Atal Bhujal Yojana- Projects all over India) which are being implemented National Groundwater Management Improvement, through Multilateral Development Banks and other related Catalyzing Private Financing for Sustainable Recovery Trust Funds / Loans / Grants. An online web portal has and Growth etc. been developed by FB&ADB Division, with technical help 8.4 Major activities pertaining to the World Bank from NIC for facilitating the entire process of availing an in 2022-23 externally aided loan from Multilateral Development Banks (MDBs) and Bilateral Agencies by State Govt/UT/ 8.4.1 Loan Signed & Disbursement: Central Govt. Ministries/Departments/ Central Govt 8.4.1.1 Six World Bank assisted projects were signed PSUs, to ensure paperless interaction between DEA and concerned stakeholders. The portal has led to greater during April-November 2022, amounting to USD 1.99 transparency, better monitoring of project status and billion of assistance. The projects signed during April- faster and uniform sharing of information with all the November 2022 included Raising and Accelerating MSME stakeholders. Performance, Public Service Capability Enhancement Project, Second Tamil Nadu Housing Sector 8.2 World Bank Group Strengthening Program Development Policy Loan, RIGHTS: Inclusion, Accessibility and Opportunities for 8.2.1 The World Bank is among the world's leading Persons with Disabilities in Tamil Nadu, Systems Reform development institutions with a mission to fight poverty Endeavours for Transformed Health Achievement in and improve living standards for people in the developing Gujarat (SRESTHA-G), Catalyzing Private Financing for world by promoting sustainable development through Sustainable Recovery and Growth. Total Disbursement loans, guarantees, risk management products and (non- for the period April to November 2022 was approximately lending) analytic and advisory services. The World Bank USD 1.34 billion. is one of the United Nations' specialized agencies. The World Bank concentrates its efforts on reaching the 8.4.2 Monitoring of the World Bank Portfolio: Millennium Development Goals aimed at sustainable 8.4.2.1 Portfolio performance has improved over the poverty reduction. years as a result of regular review meetings such as Tri- partite Review Meetings for ongoing projects and Pipeline 8.2.2 India is member of four institutions of the World Review Meetings for pipeline projects. The meetings are Bank Group viz., International Bank for Reconstruction organized jointly by Government of India and World Bank and Development (IBRD); International Development and attended by officials from Department of Economic Association (IDA); International Finance Corporation Affairs (DEA), World Bank and Implementing Agencies (IFC) and Multilateral Investment Guarantee Agency of World Bank assisted projects. Under the chairmanship (MIGA). India has been accessing funds from the World of AS (MBC) during April - November, 2022, pipeline Bank (mainly through IBRD) for various developmental review meetings were held on August 30, 2022 and projects1. Fund Bank & ADB Division, DEA is the focal November 29, 2022 to review pipeline projects seeking point for India being represented in the WBG meetings assistance from the World Bank and Tripartite Portfolio for international level deliberations to discuss policy issues Review Meetings was held on July 20-21, 2022 in pertaining to the World Bank Group as also to undertake Lucknow, UP and virtually on September 01, 2022 and projects with assistance from the World Bank (IBRD). September 16, 2022 for reviewing World Bank assisted ongoing projects of various sectors. 8.3 World Bank India Portfolio 8.3.1 The World Bank's India portfolio as of November, 8.4.3 India as donor to IDA: 2022 comprises of 101 projects with a net commitment 8.4.3.1 Since its founding in 1960, IDA has had 19 regular of USD 22.3 billion. The World Bank projects are spread replenishments. In 2014 (IDA 17), India transitioned to being a confident donor. However, it continued to receive [1] India was also a recipient from IDA till 2014. In 2014 (IDA 17) India transition support during IDA17 (2014-17). India became transitioned to being a confident donor. However, it continued to a donor-only nation during IDA18. As a commitment to receive transition support during IDA17 (2014-17). India became a donor only nation during IDA18. India's shared objective of eliminating extreme poverty, 38Department of Economic Affairs I reducing vulnerability and increasing resilience across the country. India is IFC's sixth largest shareholder with countries, India decided to contribute USD 200 million to 3.82% of total voting power. India's Executive Director IDA 17 replenishment. In furtherance of its commitment represents a constituency equal to 4.61% voting power. towards the IDA countries, India announced a pledge of There are three other countries in India's constituency at INR 12.25 billion as its contribution towards IDA 18 the IFC, viz. Bangladesh, Bhutan and Sri Lanka. IFC has replenishment. During the IDA 19 replenishment, India committed over USD 25 billion (including mobilization) in committed INR 15.00 billion. For IDA 20 replenishment, India since the first investment in 1958. Currently, IFC India announced a pledge of INR 17.48 billion. investments are spread over 500 clients in India. As of November 2022, IFC's committed portfolio in India stood 8.5 Meetings of Fund Bank at approximately USD 5.4 billion, making India IFC's largest portfolio exposure which accounts for about 10% 8.5.1 The Development Committee (DC) Meeting of of its global portfolio. India is also one of IFC's largest World Bank Group (WBG) during Spring Meeting of WBG advisory client, as well as the IFC regional hub for South and IMF, 2022 was held on April 22, 2022 in Washington Asia. IFC's investments in India are spread across priority DC which was attended by Hon'ble Finance Minister as sectors like infrastructure, manufacturing, financial Indian Governor of the World Bank. The Development markets, SMEs, affordable housing, renewable energy, Committee Dinner meeting was held on April 21, 2022. low-income states, gender development and climate Further, a Bilateral Meeting between Hon'ble FM and change. In line with the Country Partnership Strategy World Bank Group President was also held on April 22, (CPS) of the World Bank Group, IFC uses its private 2022 in Washington DC. sector expertise to support economic growth that is 8.5.2 The Development Committee (DC) Meeting of inclusive, productive and sustainable. IFC continued to World Bank Group (WBG) during Annual Meeting was deliver over USD 1.3 billion through own account and held on October 14, 2022 in Washington DC which was mobilization in FY22 (July 2021-June 2022) in India. attended by Hon'ble FM as Indian Governor of the World During July 2021-June 2022, DEA approved a total of 28 Bank. The Development Committee Dinner meeting was Article III Notifications. Further, DEA granted approval held on October 13, 2022. Further, a Bilateral Meeting for 8 advisory engagements of IFC between July 2021 between Hon'ble FM and World Bank Group President and June 2022. was also held on October 15, 2022 in Washington DC. 8.7 International Monetary Fund 8.5.3 IDA Day Meetings held during April-November 8.7.1 India is a founder member of the International 2022 are as follows: - Monetary Fund, which was established to promote a  Exceptional IDA-19 Meeting was held virtually on cooperative and stable global monetary framework. At April 11, 2022 to discuss providing financial present, 190 nations are members of the IMF. Since the support to Ukraine and Moldova. IMF was established, its purposes have remained unchanged but its operations - which involve surveillance,  IDA Day meeting was held virtually on May 16, 2022 financial assistance and technical assistance - have to discuss the Impact of the Ukraine War on IDA developed to meet the changing needs of its member Countries and the Bank's Response and closing countries in an evolving world economy. The Board of IDA-19 and Getting Ready to Deliver IDA-20. Governors of the IMF consists of one Governor and one  IDA20 Launch event took place on September Alternate Governor from each member country. For India, 12-13, 2022 in Tokyo, Japan. the Finance Minister is the ex-officio Governor on the Board of Governors of the IMF. There are three other  IDA Day meeting was held on October 17, 2022 countries in India's constituency at the IMF, viz. to discuss Update on IDA20 Long-dated Market Bangladesh, Bhutan and Sri Lanka. Governor, Reserve Bond Program and IDA Financial Outlook and Bank of India (RBI) is India's Alternate Governor. review of IDA Operations.  Exceptional IDA meeting on Sri Lanka was held 8.7.2 Meetings of Board of Governors: virtually on November 03, 2022. 8.7.2.1 The Board of Governors usually meets twice a year viz. the Spring Meetings and the Annual Meetings 8.6 International Finance Corporation (IFC) of the IMF and World Bank to discuss the work of the 8.6.1 The International Finance Corporation (IFC), a respective institutions. At the heart of the gathering are member of the World Bank Group, focuses exclusively meetings of the IMF's International Monetary and on investing in the private sector in developing countries. Financial Committee (IMFC). India is represented by the Established in 1956, IFC has 186 members. India is the Hon'ble Finance Minister in IMFC and the joint World founding member of IFC. IFC is an important Bank-IMF Development Committee (DC), which development partner for India with its operations discusses progress on the work of the IMF and World concentrated on financing and advising private sector in Bank. 39Annual Report 2022-2023 8.7.3 The Spring Meetings of the IMF/ World Bank, In February 2020, the Board of Governors of the meetings of G-20, Bilateral and Investor were held in USA IMF formally concluded the 15th GRQ with no increase in from April 18 to April 27, 2022. The Hon'ble Finance quotas or change in quota formula as the United States Minister, Chief Economic Adviser, Additional Secretary expressed its inability to contribute to any quota increase (MBC), Adviser (IER), Adviser (BC), Director (Investment), under the 15th GRQ. In February 2020, IMF Board of Director (WB) and DS (IMF) represented India in these Governors has adopted a resolution that the 16th Round meetings. Hon'ble FM discussed the current global of GRQ should be concluded no later than December economic outlook and risks in the context of recent 15, 2023. macroeconomic and geopolitical developments. Hon'ble b). India’s contribution to New Arrangements FM also recognized soaring food and energy prices, to Borrow (NAB): In April 2009, the G-20 agreed to impending supply chain disruptions, tightening global increase the resources available to the IMF by up to $500 financial conditions, rising debt and divergent prospects billion (which would double the total pre-crisis lending of recovery as key challenges. The economic and resources of about $250 billion) to support growth in humanitarian repercussions of Russia's invasion of emerging market and developing countries, viz. through Ukraine were also extensively discussed. The 2023 bilateral financing from IMF member countries; and by Spring Meetings of the IMF/ World Bank are expected to incorporating this financing into an expanded and more be held in USA from April 11 to April 16, 2023. 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, Bilateral and Investor were held in USA constitutes a second line of defence to supplement IMF from October 11 to October 16, 2022. The Hon'ble resources to forestall or cope with an impairment of the Finance Minister, Secretary, Department of Economic international monetary system. Through the NAB, a Affairs, Chief Economic Adviser, Additional Secretary number of member countries and institutions stand ready (MBC), Advisers (IER), Director (IER), Jt. Director (IER), to lend additional resources to the IMF. In January 2021, OSD (IER) and Media & Communication Officer, DEA a reform of the NAB took effect following consents from represented India in these meetings in person. 38 NAB participants, almost doubling the size of the NAB Honourable Finance Minister emphasized on the greater to SDR 361 billion (US$521 billion) for the period from role of IMF in the post-pandemic period and the need for 2021 to 2025. India is also one of the 38 creditor countries timely completion of 16th General Review of Quotas to in NAB with a contribution of SDR 8.88 billion. address the under-representation of the Emerging and Developing Market economies and highlighted India's c). India’s contribution to Bilateral Borrowing ambitious climate action path through the updated Arrangements (BBA): BBAs are used as a third line of Nationally Determined Contributions for decoupling of defence after quota and NAB resources are exhausted economic growth from greenhouse gas emissions. substantially. At the Los Cabos G20 Summit in 2012, the Honourable Finance Minister also highlighted the IMFC and G20 jointly called for further enhancement of significance of transfer of climate finance and low-cost IMF resources for crisis prevention and resolution through technologies from developed to developing countries. temporary bilateral loans. 8.7.5 India and IMF: India had agreed to commit USD 10 billion to the 8.7.5.1 The membership of the Fund is committed to BBA 2016 on August 10, 2017, which was set to expire in maintain a strong, quota-based, and adequately December 2019, however, the agreement was further resourced IMF. IMF's total resources presently include extended for another year through December 31, 2020. the following: India's commitment towards Bilateral Borrowing a. Quotas: Primary source of financing for Arrangements is implemented through the mechanism lending; of Note Purchase Agreement (NPA) between Reserve b. New Arrangements to Borrow (NAB) acts Bank of India (RBI) and the IMF. as the second line of defence i.e. after quota resources are exhausted substantially. The new round of bilateral borrowing agreements took effect on January 1, 2021. The BBAs now in effect c. Bilateral Borrowing Agreements (BBAs) with 42 creditors contribute a further SDR 138 billion (USD provide a third line of defence. 195 billion) with India's contribution at USD 3.9 billion. a). India’s Quota and Ranking: The 2010 IMF Quota and Governance Reforms (including the 14th 8.7.6 South Asia Regional Training and Technical General Reforms of Quotas) came into effect on January Assistance Center (SARTTAC) : 26, 2016. Consequent to this Quota increase, India's 8.7.6.1 A Memorandum of Understanding was signed quota shareholding rose to 2.75%. With a quota share of between India and International Monetary Fund for setting SDR 13,114.40 million, India ranks 8th in terms of quota up of South Asia Regional Training and Technical holding in IMF. 40Department of Economic Affairs I Assistance Center (SARTTAC) in India by the Japan and the United States are the largest shareholders International Monetary Fund on March 11, 2016. The with15.57% each of shares. China and India are the third Centre was officially inaugurated on February 13, 2017. (6.43%) and fourth (6.32%) largest shareholders, SARTTAC serves six-member countries of Bangladesh, respectively. Bhutan, India, Maldives, Nepal & Sri Lanka. It provides training to government & public sector employees in order 8.8.3 The Asian Development Fund (ADF) is a to enhance their technical and analytical skills and special fund of ADB, which is utilized for extending improve the quality of their inputs into policy making. It financial support to Group A (and selectively Group B) also provides technical assistance to governments and member countries, which have lesser credit worthiness public institutes in various areas such as macroeconomic and are prone to debt distress and other vulnerabilities. policy, macro & micro prudential regulation, financial India became a donor to ADF in July 2014 and contributed sector supervision as well as national accounts statistics $30 million for the 11th Replenishment of ADF and forecasting. (ADFXI)and US$41.74 million for ADF-XII. For ADF-XIII, India has pledged $51.38 million. ADB provides 8.7.7 India has contributed USD 32.8 million of which concessional financing through ADF to its developing the first instalment of USD 15 million to SARTTAC was member countries (DMC) based on the agreed yardsticks. paid in August, 2016 and the balance USD 17.8 million was paid in November, 2017. 8.8.4 ADB has a Board of Governors (BoG), a Board of Directors (BoD), a President, six Vice Presidents and 8.7.8 Article IV Consultations : specialized officers and staff in its headquarters and country offices. The BoG is ADB's highest policy-making 8.7.8.1 Under Article IV of the IMF's Articles of body, which comprises one representative from each Agreement, the IMF holds bilateral discussions with members, usually every year, to review the economic member nation including India. The Finance Minister of status of the member countries. Article IV consultations India is the designated Governor for India. The BoG are generally held in two phases. During this exercise exercises its powers and functions with the assistance the IMF mission holds discussions with the RBI and of the BoD, which performs its duties full time at the ADB various line Ministries / Departments of Central headquarters. The Directors supervise ADB's financial Government. The Article IV Consultations are concluded statements, approve its administrative budget, and review with a meeting of IMF Executive Board at Washington and approve all policy documents and all loan, equity, DC which discusses the Article IV Report. The Annual and technical assistance operations. India is represented Article IV Mission with International Monetary Fund was in the BoD by an Executive Director (ED), who is held during September 19-27, 2022. Discussions were nominated by the Government of India. ED is supported held on the State of the Indian economy, climate change by officers from India (two advisers and one executive issues, reform initiatives and growth prospects and assistant). Secretary (EA) chaired the Wrap Up session with the 8.8.5 Annual Meetings of BoG are held in a IMF Mission Team on September 27, 2022. The outcome designated member country in early May. Annual of these meetings in the form of the IMF India Article IV Meetings are occasions for the BoG to provide guidance report was published on 23rd December 2022. on ADB administrative, financial, and operational 8.8 Asian Development Bank directions. The meetings provide opportunities for member governments to interact with ADB staff, non- 8.8.1 Membership of ADB: government organizations (NGOs), media, and 8.8.1.1 India was a founding member of the Asian representatives of observer countries, international Development Bank (ADB) in 1966. ADB envisions a organizations, think tanks, and the private sector. Bilateral prosperous, inclusive, resilient, and sustainable Asia and meetings are held between countries on the side lines of the Pacific, while sustaining its efforts to eradicate the Annual Meeting. The 46th Annual Meeting of ADB extreme poverty in the region. ADB assists its members, was hosted by India on 2-5 May 2013 in New Delhi. The and partners, by providing loans, technical assistance, 55th Annual Meeting was held in two stages. The first grants, and equity investments to promote social and stage was held virtually on 5 May 2022, and the second economic development. stage was a combination of virtual and physical events that took place from 26 to 30 September 2022 in Manila. 8.8.2 ADB has 68 members (including 49 regional and19 non-regional members), with its headquarters in 8.8.6 ADB operations in India. ADB's assistance to Manila, Philippines. ADB's authorized and subscribed India commenced in 1986. The ongoing sovereign lending capital stock is US$163.12 billion, of which India's portfolio of ADB projects in India consists of 65 loans subscription is US$10.3 billion. India holds 6.32% of worth $15.15 billion. ADB's annual sovereign lending in shares in ADB, equivalent to 672,030 shares India increased to an all-time high of $4.6 billion in the (@US$12063.5 per share). India has 5.35% voting rights. calendar year 2021, including a $1.5 billion loan under 41Annual Report 2022-2023 the Asia Pacific Vaccine Access Facility (APVAX), which  Energy sector initiatives focus on strengthening supports the government's rapid vaccination rollout to of power transmission and distribution networks contain the pandemic and help reduce the severity of a in India. ADB supported initiatives aim to provide possible third wave. In the same year, ADB committed uninterrupted power supply to all, promoting $273.4 million for its private sector investments in India. smart grid technologies, and low-carbon The 2022 regular program of assistance included projects solutions, including renewable energy and energy in transport, human development, urban, agriculture, and efficiency. public sector management sectors.  The urban sector program supports expanding 8.8.7 ADB support to India is in line with the the coverage, quality, and continuity of basic government's development priorities, evolving focus services to improve the urban quality of life. The areas, and flagship initiatives and emphasizes Finance program aims to contribute to sustainable urban Plus elements. The India country partnership strategy development by supporting policy reform, (CPS) of ADB provides the overarching framework for institutional development, and improved ADB's operations in India. In line with the government's governance of urban services. guiding principle that multilateral development partners add value beyond tangible investments, ADB leverages  The finance sector program endeavors to support knowledge, supports capacity development, and leveraging of finance for infrastructure. incorporates innovation and best practice into its operations. ADB's CPS, 2018-2022 for India was  The agriculture and natural resources sector approved in September 2017. A new CPS for 2023-2027 interventions provide assistance in the key areas is under preparation and is likely to be approved in early of water use efficiency, climate resilience, and 2023. coastal protection. 8.8.8 ADB assistance to India has shifted from COVID-  The human development program encompasses 19 crisis response to the pursuit of medium and long- interventions in the skills/education and health term development goals. They are aimed to accelerate sectors. Skills/education interventions focus on the country's inclusive economic transformation and improving employability of youth in the industries ADB's country program supports India's fast, green, and and services essential to growth through stronger inclusive recovery in alignment with Atmanirbhar Bharat industry engagement and increased focus on Abhiyan (Self-Reliant India), which envisages to make quality and outcomes. The health sector program India a competitive, resilient, self-sustaining, and self- aims to contribute to health sector development generating economy. To synchronize industry growth with and reforms, health care finance, and health well-managed urbanization and environmental insurance and subsidized health programs. sustainability, ADB operations adopt a multidisciplinary 8.8.10 Non sovereign operations strive for approach embodied in projects on multimodal logistics, diversification with larger number of projects. industrial corridor development, and integrated urban Interventions facilitate inclusive access to finance, planning. They also cover innovative initiatives such as including microloans for women and agriculture, transit-oriented development, value capture financing, affordable housing, and small-scale investments in and public-private partnership infrastructure financing. climate change projects. Private equity funds with focus ADB also helps mobilize domestic resources to promote on health, finance, education, agribusiness, and non- a sustainable recovery. ADB operations continue to assist traditional sectors such as technology is supported. in enhancing engagements in the social sectors through Innovative mechanisms like municipal finance and investments in education, health, and skills; support for blended sovereign-non sovereign loans under the One micro, small, and medium enterprises development; and ADB approach is being pursued. ADB also supports the policy advice building on well-performing sustainable and government's priority to enhance private financing of quality infrastructure operations. infrastructure through continuing partnership to 8.8.9 ADB interventions span six sectors of strengthen the PPP policy and institutional framework. operation: transport; energy; urban infrastructure and services; finance; human development; and agriculture 8.8.11 The Technical Assistance (TA) program has and natural resources. also evolved in line with the loan program. TA projects help DMCs enhance capacity, improve project  The ADB transport sector program aims to preparedness and implementation, promote technology improve connectivity and accessibility, promote transfer, and undertake analytical studies. The TA safe and environment-friendly practices, and program underpins strong knowledge work in priority enhance in-country and sub-regional trade areas. ADB's Technical Assistance Special Fund (TASF) corridors and facilities. provides technical assistance improving capacity in the 42Department of Economic Affairs I formulation, design and implementation of projects to and capacity building targeted towards upstream studies facilitate effective use of external financing. India has been that are needed for development of cross border projects voluntarily contributing to TASF, since 1970. The TA or projects that have regional significance; and program adopts a coherent, principles-based, filtering administrative, logistic, knowledge and capacity support framework for prioritization and allocation of scarce TASF for convening of Working Group meetings and Senior resources across projects in India, while leveraging Officials' meetings. cofinancing. 8.8.16 SASEC Operations. As of 15 October 2022, the 8.8.12 Knowledge support is developed and prioritized SASEC portfolio consists of 77 committed projects with to drive ADB operations-identifying transformative cumulative cost of $17.56 billion and ADB funding of about investment and reform opportunities to address complex $10.31 billion since 2001 . The transport sector accounts developmental challenges that require more than for the highest number of projects (44 projects worth a financing. Strategic planning is being mainstreamed to cumulative $12.32 billion), followed by energy (16 projects establish long-term interventions that optimize worth $2.92 billion), economic corridor development/ development impact. Best practices and lessons will be multi-sector (eight projects worth $1.94 billion), trade disseminated, including through state-to-state project facilitation (five projects worth $328.15 million), ICT (two replication to maximize return on investment. projects worth $20.80 million) and health (two projects worth $25.92 million). 8.8.13 Portfolio performance has improved over the years as a result of regular review meetings such as 8.8.17 An additional $199.68 million in 143 technical tripartite portfolio review meetings (TPRM) for ongoing assistance grants was also provided. India received ADB and pipeline projects. In 2021, three such TPRMs were assistance for 21 SASEC projects (transport, economic held virtually under the pandemic environment. ADB corridor development, ICT and tourism) with total cost of continues to build strong pipelines, ensure quality and about $6.36 billion, with cumulative ADB lending of $3.79 readiness at entry from overprogrammed pipelines, and billion. The ADB firm SASEC pipeline for 2023-2025 apply high discipline in implementation. comprises 33 projects. ADB's pipeline for India includes 11 projects with total prospective ADB funding of $2.57 8.8.14 SASEC Program. ADB program deepens its billion. ADB is assisting Government of India in extending engagements in regional cooperation and integration project development support through project readiness under the South Asia Subregional Economic Cooperation financing (PRF) loans along with knowledge support (SASEC) and other regional forums. The SASEC technical assistance to NER states. PRF enables quick Program brings together Bangladesh, Bhutan, India, response to continued demand for project development Maldives, Myanmar, Nepal, and Sri Lanka in a project- and finances project preparation and design activities for based partnership. Under this flagship program, ADB has investments that are expected to be financed under one been working with SASEC countries to build cross-border or more ensuing ADB-financed projects with quality power connectivity, facilitate regional trade, and connect project designs and a high level of implementation transport network for better movement of goods and readiness. people. ADB projects in the North Eastern Region (NER) aimed at helping develop economic corridors to be linked 8.8.18 PRF and KSTA in NER aim to support with neighbouring South Asian and Southeast Asian development of investment plans/projects for key sectors countries, as envisaged under India's Act East Policy will and preparation of feasibility studies, detailed designs, also be highlighted. Several project readiness financing procurement process, and timely completion of pre- projects are included to help accelerate project construction activities of priority projects. Building development and preparation. institutional capacity is one of the key components of PRF and KSTA, which intend to support infrastructure planning 8.8.15 New SASEC Institutional Mechanism. India hosted the SASEC Nodal Officials' Meeting on 20 June, and implementation capacities of the line departments. which formally endorsed the new institutional mechanism Presently, Sikkim Road Sector PRF ($2.5 million) and covering (i) regularizing SASEC Finance Ministers Tripura Urban and Tourism Development PRF ($4.2 Meetings, strengthening sub-regional and national million) are under implementation and the Mizoram Urban institutional arrangements for SASEC, and establishing Transport PRF ($4.5 million). Tripura Industry PRF ($2 SASEC Secretariat in the subregion at ADB India million), Tripura City Infrastructure PRF ($3 million), Resident Mission (INRM); (ii) Strategic reorientation of Manipur Road Sector PRF ($5 million), and Nagaland the SASEC Vision includes a new operational priority; Urban Infrastructure PRF ($2 million) are under and (iii) Proposed new initiatives. ADB is expediting the processing. KSTA support is also being mobilized for setting up of the SASEC Secretariat in INRM for the developing sector investment plans in the state of Tripura development of cross border projects or projects that have and Assam (Road Sector and Urban & Rural Water regional significance for SASEC countries; knowledge Supply -Sanitation). 43Annual Report 2022-2023 8.8.19 Capacity Building. Building the capacity of third installment to the GFATM for 2022-23 (USD 8 million) various executing agencies has been an important was paid in July 2022. element of ADB's assistance to India. The Capacity 8.10.3 India committed USD 25 million to GFATM during Development Resource Center (CDRC), which was the Seventh Voluntary Replenishment cycle (2023-25) established at ADB's India Resident Mission, collaborates as per following schedule (i) US$ 8 million in 2023 and with leading experts and national training institutes to 2024 each and (ii) US$ 9 million in 2025. develop and deliver training courses for executing agencies on operational, technical and substantive topics 8.11 Global Facility for Disaster Reduction and relating to ADB operations in India. In 2020, CDRC carried Recovery (GFDRR) on its work despite the COVID-19 pandemic situation, 8.11.1 GFDRR is a global partnership program through virtual training programs. administered by the World Bank Group. GFDRR supports developing countries to: (i) mainstream disaster risk 8.9 Global Alliance for Vaccines and management and climate change adaptation in Immunizations (GAVI Alliance) 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 countries. Chair is a World Bank representative while its Co-chair India is not only a recipient, but also a contributor to is selected from the member countries for a period of GAVI Alliance. As per 'Contribution Agreement' signed one year. between Government of India and GAVI, India 8.11.2 India became a member of GFDRR in 2013 by committed to contribute USD 3 million per annum to the paying one time member fee of USD 500,000 in three GAVI Alliance during the replenishment cycle of five year installments during 2014-15. DEA vide its O.M. dated Oct i.e. 2021-25. 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 agreed 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 8.12 Multilateral Investment Guarantee Agency (MIGA) Agreement towards the replenishment for the next five years (2021-25) was signed on 30th June, 2021 and 8.12.1 Multilateral Investment Guarantee Agency (MIGA) second installment was made on 31st January, 2022. was founded in 1988 to promote foreign direct investment (FDI) into developing countries. MIGA currently has 182 8.10 Global Fund to Fight AIDS, Tuberculosis and members. It provides investment guarantees to private Malaria (GFATM) sector investors and lenders, particularly in conflict affected countries. MIGA also provides technical 8.10.1 The Global Fund to Fight AIDS, Tuberculosis and assistance to developing countries as well as helps them Malaria (The Global Fund / GFATM) is an international in their efforts to attract foreign capital, technology, and financing organization that aims to attract and disburse know-how. With the approval of Cabinet Committee on additional resources to prevent and treat HIV and AIDS, Political Affairs, the MIGA Convention was signed by India Tuberculosis and Malaria. The organization is public- on April 13, 1992 with a view to creating an environment private partnership with Secretariat at Geneva, for foreign direct investment (FDI) in India to provide Switzerland. The organization began operations in guarantees to prospective investors and mitigating certain January 2002. GFATM supported programs have perceptions like non-commercial risks like inability to estimated to have saved 50 million lives since 2002. transfer profits from the host country, confiscation of 8.10.2 As per the 'Multi-Year Contribution Agreement' assets, damages due to war or civil disturbances which signed between the Government of India and GFATM on were restraining FDI flows in India. India became member 11th June, 2020, India committed USD 22 million to of MIGA on January 6, 1994. At present, India has 3.03% GFATM during the Sixth Voluntary Replenishment cycle capital subscription with a voting power of 2.56% on the (2020-22) as per following schedule (i) US$ 7 million in MIGA Board. As a constituency India has 7402 shares, 2020 and 2021 each and (ii) US$ 8 million in 2022. India's comprising 3.39% of total voting power. 44Department of Economic Affairs I 8.13 Global Development Network (GDN) more inclusive development. Through its global 8.13.1 GDN was created as World Bank Initiative in platform, GDN connects social science researchers 1999. GDN is a public international organization that with policymakers and development stakeholders supports high quality, policy-oriented, social science across the world. In 2001, GDN was established research in developing and transition countries to outside the World Bank as US NGO. GDN has 5 promote better lives. It supports researchers with member countries namely Colombia, India, Spain, Sri financial resources, global networking, as well as Lanka and Hungary. GDN Agreement has not been access to information, training, peer review and ratified by 3 countries namely Egypt, Italy and Senegal mentoring. GDN acts on the premise that better for internal reasons. GDN is currently headquartered research leads to more informed policies and better, in 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 No. which ATNs have been are pending submitted to PAC after vetting No. of ATNs No. of ATNs No. of ATNs by Audit not sent by sent but which have the Ministry returned with been finally even for the observations vetted by first time and Audit is Audit but awaiting their have not been resubmission submitted by by the the Ministry to Ministry PAC 1 2014 Report 1 of 2014, Demand No. 32, Para 3.16 (Annexure 3.14, - - Submitted Item 23 to 25) 2 2014 Report No. 1 of 2014, Demand No. 32, Para 3.16 (Annexure - - Submitted 3.14) 3 2015 Report No. 1 of 2015, Demand No. 33, Para 3.12 (Annexure - - Submitted 3.10 & 3.15, Annexure 3.13) 4 2016 Report No. 34 of 2016, Demand No. 34, Para 3.16 (Annexure - - Submitted 3.13, Item 21), Para 3.17 (Annexure 3.14, Item 6) 5 2016 Report No. 34 of 2016, Demand No. 34, Para 3.18 (Table 3.9, - - Submitted Item 3) 6 2017 Reports No. 44 of 2017, Demand No. 29, Para 3.15 (Annexure 3.12, Item No: 13), - - Submitted Para 3.17 (Annexure 3.14, Item 4) 7 2019 Reports No. 2, Demand No. 29, Para No. 3.3, Table 3.2, Item - - Submitted No. 9 45Annual Report 2022-2023 9. International Economic Relations The first G20 Summit was held in November 2008 in Washington DC under the shadow of the greatest Division financial crisis in the post-war era. This was followed by 9.1. The International Economic Relations Division fourteen summits held in London (April, 2009), Pittsburg of the Department of Economic Affairs deals with (September, 2009), Toronto (June, 2010), Seoul economic and financial matters related to: (November, 2010), Cannes (November, 2011), Los Cabos (June, 2012), St. Petersburg (September, 2013), Brisbane 1. G-20 (November, 2014), Antalya (November, 2015), Hangzhou 2. G-7 (September, 2016), Hamburg (2017) and Buenos Aires 3. G-24 (2018), Osaka (2019), Riyadh (2020) and Rome (October, 2021). The 17th G20 Bali Summit was held under the 4. BRICS Indonesian G20 Presidency in Bali, Indonesia on 15-16 5. SAARC, SDF November, 2022. 6. ASEAN, Caribbean Union India assumed the G20 Presidency on 1st December, 2022 under the theme "One Earth, One 7. World Economic Forum (WEF) Family, One Future". The Leaders' Summit under the 8. OECD, SCO Indian Presidency will be held in September 2023 in Delhi, India. The Presidency of G20 is usually held for a year 9. Asia Europe Meeting (ASEM) with various meetings taking place (across a range of 10. BIMSTEC policy issues) culminating into the G20 Leaders' Summit. 12. External Charges- G20 issues are discussed through two parallel a) South Asia (Afghanistan, Bangladesh, tracks, viz., Finance Track and Sherpa Track. Under Bhutan, Maldives, Nepal, Pakistan, Sri Finance Track, issues such as international financial Lanka), South East Asia (Brunei, Burma, architecture, infrastructure financing, sustainable finance, Cambodia, East Timor, Indonesia, Laos, sustainable and inclusive growth, international taxation Malaysia, Philippines, Singapore, Thailand, and financial sector regulations, financial inclusion are Vietnam), North America(Mexico), East Asia deliberated. The highest level of meeting under Finance (Mongolia, Hong Kong, Taiwan) Track is G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting which is held 3-4 times in b) Matter relating to CIS countries (Armenia, a year. The G-20 member countries are represented by Azerbaijan, Belarus, Georgia, Kazakhstan, their Finance Ministers and Central Bank Governors Kyrgyzstan, Moldova, Tajikistan, (FMCBGs). Preceding every FMCBG Meeting, Finance Turkmenistan, Ukraine, Uzbekistan). and Central Bank Deputies (FCBD) Meetings are held to 13. Sectoral Charge - prepare for FMCBG Meeting. Secretary (Economic a) Ministry of Defence, Affairs) is India's Finance Deputy and Deputy Governor, Reserve Bank of India is India's Central Bank Deputy. b) Ministry of Tribal Affairs Technical level discussions are held through meetings of E- Governance: Working Groups that are usually held 3-4 times a year. Working Groups/areas under the G20 Finance Track are As far as e-governance is concerned, IER as follows: division has fully operationalized E-file System and thrust are being given for optimal usage of Govt Email id for a. Framework Working Group (FWG) official communication in order to make decision swift, b. International Financial Architecture Working transparent, efficient and effective. Group (IFA WG) c. Infrastructure Working Group (IWG) I. G-20 d. Sustainable Finance Working Group (SFWG) The G20 was formed in 1999, as a forum of e. Financial Sector Finance Ministers and Central Bank Governors, in f. Global Partnership for Financial Inclusion (GPFI) recognition of the fact that there was a major shift in the g. International Taxation global economic weight from the advanced economies h. Joint Finance and Health Task Force to emerging market economies. However, G20 rose into a. Framework Working Group (FWG) discusses prominence in 2008 when it was elevated from a forum issues relating to the global economy, risks and of Finance Ministers and Central Bank Governors to that uncertainties, suitable policy responses, and of G20 Heads of Nations in order to effectively respond promoting Strong, Sustainable, Balanced, and to the global financial crisis of 2008 and insulate the world Inclusive Growth (SSBIG) across the G20. India from major economic collapse. along with the UK co-chairs this Working Group. 46Department of Economic Affairs I b. International Financial Architecture (IFA) h. Joint Finance and Health Task Force was Working Group deals with issues related to established during the G20 Rome Leaders' international financial architecture such as Global Summit, 2021. The Task Force is aimed at Financial Safety Net (GFSN), the role of the enhancing dialogue and global cooperation on SDRs in the international monetary system; issues relating to pandemic Prevention restructurings of sovereign debt, debt Preparedness and Response (PPR), promoting transparency and sustainability among others. the exchange of experiences and best practices, This Working Group is co-chaired by South Korea developing coordination arrangements between and France. Finance and Health Ministries, promoting c. Infrastructure Working Group (IWG) collective action, assessing and addressing deliberates on quality infrastructure investments health emergencies with cross-border impact, including innovation in mobilizing financial and encouraging effective stewardship of resources for infrastructure investment. The resources for pandemic prevention, Working Group is co-chaired by Australia and preparedness and response (PPR), while Brazil. adopting a One Health approach. The Task Force is co-chaired by Italy and Indonesia and is d. Sustainable Finance Working Group (SFWG) assisted by a Secretariat housed at the World was established group under the G20 Italian Health Organisation (WHO), with the support of Presidency co-chaired by the US and China. The the World Bank. Working Group deliberates on ways to mobilize sustainable finance as a way of ensuring global Priorities of the G-20 in 2022 under Indonesian Presidency growth and stability and promoting the transitions Indonesia assumed the G20 Presidency on 1st towards greener, more resilient and inclusive December 2021 under the theme "Recover together, societies and economies. Recover Stronger". Indonesia focused on three main e. Financial Sector issues related discussions pillars for its G20 2022 Presidency namely: take place directly at the level of the Deputies (i) Global Health Architecture, and there is no separate Working Group for the same. The key areas of discussion have included (ii) Sustainable Energy Transition and strengthening prudential oversight, improving risk (iii) Digital Transformation management, strengthening transparency, promoting market integrity, establishing Through these pillars, Indonesia focused on supervisory colleges, enhancing cross-border ensuring equitable access to COVID-19 vaccines, payments, smooth LIBOR transition, and Central promoting sustainable and inclusive economic Bank Digital Currencies among others. development through MSMEs participation and digital economy. f. Global Partnership for Financial Inclusion (GPFI) works for advancing financial inclusion The broad Finance track priorities under the globally. Some of the work areas include ways Indonesian G20 Presidency in 2022 were as follows: to improve financial system infrastructure, pursue 1. Coordination of exit strategies to support global policies conducive to harnessing emerging recovery, technologies, facilitating remittance flows and 2. Efforts to deal with the effects of the pandemic reducing the cost of remittance transfers, (scaring effects) on the economy to support financial literacy and consumer protection, digital stronger growth in the future, financial literacy and bridging the digital divide among others. The GPFI Co-Chairs are Italy and 3. Strengthening payment systems in the digital era, Russia. 4. Development of sustainable finance g. International Taxation agenda in the G20 5. Improvement of an inclusive financial system Finance Track is discussed directly at the level of the Deputies and there is no formal Working 6. International Tax Agenda Group on taxation. The matters discussed under Furthermore, G20 Indonesia also discussed several the group include addressing tax challenges legacy issues that included: arising from digitalization of the economy, fighting 1. Integrating pandemic and climate risks in global against tax evasion, ending bank secrecy and risk monitoring; tax havens, exchange of information, and addressing tax avoidance by multinational 2. Strengthening the Global Financial Safety Net corporations. (GFSN); 47Annual Report 2022-2023 3. Increased Capital Flow; strengthening of national health systems by putting people at the centre of preparedness and equip them to respond 4. Continuing the Data Gap Initiatives; effectively. They reaffirmed their commitment to 5. Improving Financial Sector Regulatory Reform; strengthen global health governance, with the leading and 6. Strengthen debt management and transparency; coordination role of WHO and support from other international organizations. They welcomed the 7. Accelerating the infrastructure agenda towards establishment of a new Financial Intermediary Fund for sustainable and inclusive development; Pandemic PPR (the 'Pandemic Fund') hosted by the 8. Optimizing financing support from multilateral World Bank. They looked forward to the launch of the development banks (MDBs); Pandemic Fund's first call for proposals as soon as possible and commended the pledges by current donors, 9. Strengthen health system capacity in pandemic amounting to over USD 1.4 billion, and encouraged prevention, preparedness and response; additional voluntary pledges. 10. Continued support for attracting private sector 4. SDR Channelling: Leaders' committed to investment in low-income countries, such as in support all vulnerable countries to recover together, the African region recover stronger. Leaders welcomed pledges amounting Key Outcomes of Bali Summit, 2022 under the G20 to USD 81.6 billion through the voluntary channelling of Finance Track Special Drawing Rights (SDRs) or equivalent 1. Reflections on war in Ukraine-Leaders' contributions. They also welcomed the operationalization recognized that war in Ukraine further adversely impacted of the Resilience and Sustainability Trust (RST) to help the global economy. They reiterated their national eligible low-income countries, small states and vulnerable positions as expressed in other fora, including the UN middle-income countries address longer-term structural Security Council and the UN General Assembly, which, challenges that pose macroeconomic risks, including in Resolution No. ES-11/1 dated 2nd March 2022, as those stemming from pandemics and climate change. adopted by majority vote (141 votes for, 5 against, 35 Leaders suggested exploring viable options for countries abstentions, 12 absent) deplores in the strongest terms to voluntarily channel SDRs through Multilateral the aggression by the Russian Federation against Ukraine Development Banks (MDBs), while respecting national and demands its complete and unconditional withdrawal legal frameworks and the need to preserve the reserve from the territory of Ukraine. Leaders condemned the assets status of SDRs. war in Ukraine and stressed it is causing immense human 5. Common Framework for debt treatments - suffering and exacerbating existing fragilities in the global Leaders welcomed the progress achieved under the G20 economy - constraining growth, increasing inflation, Debt Service Suspension Initiative (DSSI) and the recent disrupting supply chains, heightening energy and food progress on the Common Framework for debt treatment insecurity, and elevating financial stability risks. They beyond the DSSI including the provision of financing acknowledged that security issues can have significant assurances for Zambia. They also encouraged the consequences for the global economy. conclusion of the debt treatment for Ethiopia under an 2. Reflections on Global Economy- Leaders IMF-supported program. Leaders committed to step up agreed that it is essential that the G20 undertakes efforts to implement the Common Framework in a timely, tangible, precise, swift and necessary actions, using all orderly and coordinated manner and looked forward to available policy tools, to address common challenges, progress in the current negotiations under the Common including through international macro policy cooperation Framework. They also affirmed the importance of joint and concrete collaborations. In doing so, they showed efforts by all actors, including private creditors, to continue commitment to support developing countries, particularly working towards enhancing debt transparency. the least developed and small island developing states, 6. International Financial Architecture- Leaders' in responding to these global challenges and achieving committed to strengthening the long-term financial the SDGs. They agreed to take coordinated actions to resilience of the international financial architecture, advance an agenda for a strong, inclusive and resilient including by promoting sustainable capital flows, and global recovery and sustainable development that delivers developing local currency capital markets. They jobs and growth. welcomed the IMF's revised Institutional View on 3. Global Health: Leaders committed to promoting Liberalization and Management of Capital Flows. They a healthy and sustainable recovery which builds towards also reiterated their commitment to maintaining a strong achieving and sustaining Universal Health Coverage and effective Global Financial Safety Net with a strong, under the SDGs. They reaffirmed the importance of quota-based and adequately resourced IMF at its centre. 48Department of Economic Affairs I They showed commitment to revisiting the adequacy of increase resilience, in particular against cross-border quotas and to continue the process of IMF governance spillovers, including by addressing the identified structural reform under the 16th General Review of Quotas, vulnerabilities in non-bank financial intermediation (NBFI) including a new quota formula as a guide, by 15th from a systemic perspective. They also welcomed the December 2023. FSB progress report on achieving consistent and comparable climate-related financial disclosures and the 7. Infrastructure Investment - Leaders recognized final report on supervisory and regulatory approaches to the importance of revitalizing infrastructure investment climate-related risks and the report by the FSB and the in a sustainable, inclusive, accessible, and affordable way. Network for Greening the Financial System (NGFS) on They endorsed the voluntary and non-binding G20/GI Hub climate-scenario analysis by jurisdictions. Framework on How to Best Leverage Private Sector Participation to Scale up Sustainable Infrastructure 11. Technological Innovation - Leaders welcomed Investment. Leaders endorsed the G20-OECD Policy on-going work by the FSB and international standard Toolkit on Mobilizing Funding and Financing for Inclusive setters to ensure that the crypto-assets ecosystem, and Quality Infrastructure Investment and the InfraTracker including so-called stable coins, is closely monitored and 2.0. They also endorsed the Quality Infrastructure subject to robust regulation, supervision, and oversight Investment (QII) Indicators and associated guidance note, to mitigate potential risks to financial stability. They developed for the G20 and welcomed the progress made welcomed the FSB consultative report on the review of towards developing a possible new governance model its high-level recommendations for the regulation, for the Global Infrastructure Hub (GI Hub) and asked that supervision and oversight of "global stable coin" principles to guide the process be finalized as soon as arrangements. possible. 12. Combating money laundering and terrorist 8. Sustainable Finance- Leaders welcomed the financing - Leaders reaffirmed their commitment to progress made across the G20, international delivering the strategic priorities of the Financial Action organizations, other international networks and initiatives, Task Force (FATF). They welcomed the initiative by the and the private sector in addressing the priorities of the FATF to promote implementation of international G20 Sustainable Finance Roadmap and the standards on virtual assets, in particular the "travel rule", establishment of the Sustainable Finance Working and transparency of beneficial ownership, and Group's online dashboard and repository of relevant work. acknowledged their role in the fight against systemic They endorsed the 2022 G20 Sustainable Finance corruption and environmental crimes, which gravely Report. Leaders also welcomed the valuable discussion impact economies and societies. They supported the on- during the Presidency's Forum on policy levers that going work of the FATF to enhance global efforts to seize incentivize financing and investment to support the criminal proceeds and return funds to victims and states transition. in line with domestic frameworks. They encouraged all G20 members to strengthen collaboration to adopt and 9. Globally fair, sustainable, and modern effectively implement the FATF standards. international tax system - Leaders committed to the 13. Digital Financial Inclusion - Leaders endorsed swift implementation of the OECD/G20 two-pillar the G20 Financial Inclusion Framework on Harnessing international tax package and welcomed the progress on Digitalization to Increase Productivity and Foster a Pillar One. They also welcomed progress on Pillar Two Sustainable and Inclusive Economy for Women, Youth Global Anti-Base Erosion (GloBE) Model Rules. They and MSMEs or Yogyakarta Financial Inclusion Framework supported the progress made on implementing guided by the G20 2020 Financial Inclusion Action Plan. internationally agreed tax transparency standards, including regional efforts and welcome the signing of the Contribution of India for the Summit Asia Initiative Bali Declaration in July 2022. They also India constructively engaged in the discussions welcomed the Crypto-Asset Reporting Framework and under various work streams of the Finance Track during the amendments to the Common Reporting Standard. the G20 Indonesian Presidency. We ensured that a strong voice is lent to the ongoing discourse that not only conveys 10. Financial Sector- Leaders committed to India's position on the agenda issues but is also aimed sustaining global financial stability, including through at representing the views of the Emerging Market continued coordination of policy measures and Economies (EMEs) in general. implementation of international standards. They welcomed the FSB's final report on financial sector exit As a co-chair of the Framework Working Group strategies and scarring effects of COVID-19 and its (FWG), India along with UK and the G20 Presidency conclusions regarding financial stability issues by the end worked alongside the FWG membership in drafting and of 2022. They strongly supported global policy actions to finalizing all deliverables/outcome documents of the FWG. 49Annual Report 2022-2023 India also constructively engaged in the II. BRICS discussions for effective and swift implementation of the BRICS is the acronym for an association of five Common Framework to address debt sustainability issues major emerging economies: Brazil, Russia, India, China of low-income countries and supported the Presidency's and South Africa. The key objective of the BRICS group continued work towards enhancing debt transparency. is to build south-south cooperation and evolve a On climate related issues India constantly coordinated approach to address common concerns of highlighted the need to mobilize climate finance the developing countries, such as international taxation, commitments and technology transfer. climate financing, reforms in governance structure of India supported the health agenda that aimed at international financial institutions (IFIs) etc. enhancing dialogue and global cooperation on issues India has actively participated in all the BRICS relating to pandemic PPR, promoting the exchange of Summits held so far under chair ship of member countries experiences and best practices, developing coordination and has adopted a pro-active stance for incorporation of arrangements between Finance and Health Ministries, critical issues in the BRICS Forum. promoting collective action, assessing and addressing health emergencies with cross-border impact, and Ministry of External Affairs is the nodal Ministry encouraging effective stewardship of resources for overseeing and coordinating across all areas of BRICS pandemic PPR, while adopting a One Health approach. cooperation. IER Division, DEA coordinate on the BRICS India supported the establishment of a new Financial Financial Cooperation agenda in consultation with Intermediary Fund for Pandemic PPR (the 'Pandemic Reserve Bank of India and other key stakeholders from Fund') hosted by the World and contributed USD 10 Government of India. million to the Pandemic Fund. The Chair ship of BRICS was taken over by China India joined other G20 members in supporting from India on 1st January 2022. The XIV BRICS Summit and implementing the work under the Indonesian under the theme "Foster High-quality BRICS Partnership, Presidency to ensure stability of the financial system. Usher in a New Era for Global Development" was held in Further, India has actively contributed its perspective Beijing on 23-24 June 2022. through participation in the Financial Stability Board discussions. BRICS Financial Co-operation Financial Cooperation is one of the prominent Priorities of the G20 in 2023 under Indian Presidency areas of cooperation in the BRICS forum. Issues and The theme of India's G20 Presidency - initiatives under the BRICS financial cooperation are dealt "Vasudhaiva Kutumbakam" or "One Earth One Family by the Ministries of Finance and Central Banks of the One Future" - is drawn from the ancient Sanskrit text of the Maha Upanishad. It manifests our firm belief in the BRICS nations and such issues are discussed during power of unity and the value of interconnectedness. the meetings of BRICS Finance Ministers and Central Bank Governors (FMCBG) assisted by their Finance and Indian Presidency in 2023 offers India a unique Central Bank Deputies. Secretary (EA) is India's BRICS opportunity to set the agenda that is globally relevant and Finance Deputy and Deputy Governor (RBI) is India's at the same time mainstreams the perspectives of the BRICS Central Bank Deputy. Global South in the G20. People centricity of the issues is another important element that is reflected across all the BRICS 2022 Meetings & Outcomes priorities. Given the fact that till 2025, the Presidency of In 2022, under the Chinese Chairship, one the G20 will be with an emerging market economy (Brazil meeting of the BRICS Finance and Central Bank Deputies in 2024 and South Africa in 2025), there is an opportunity and two meetings of the BRICS Finance Ministers and to reflect the aspirations of large number of countries who Central Bank Governors were held. Under BRICS are not members of the G20 but are considerably affected Financial Cooperation, the following agenda items were by the decisions emanating from the forum. Development discussed in 2022: financing, macroeconomic vulnerabilities and maximising Ministry of Finance Issues the full potential of digital public infrastructure for achieving inclusive growth are the key tenets on which India's 1. Macro Economic Outlook and Policy priorities have been hoisted. Coordination The First meeting of the G20 Finance and Central 2. Infrastructure Investment Bank Deputies was held from (13-15) December 2022 3. New Development Bank in Bengaluru, thereby kick-starting the G20 Finance Track meetings under India's 2023 Presidency of G20. 4. BRICS Think Tank Network for Finance 50Department of Economic Affairs I Central Bank Issues Indian Regional Office (IRO) at Gujarat International Finance Tec-City (GIFT City) in Ahmedabad. 1. Contingent Reserve Arrangement Issues d. BRICS Think Tank Network for Finance 2. BRICS Local Currency Bond Fund Issues The BRICS Leaders endorsed the establishment 3. Thematic Cooperation on Key Topics of BRICS Think Tank Network for Finance at the Beijing The key outcomes under the Chinese Chair ship in 2022 Summit. The Think Tank Network will provide intellectual are as follows: support, as and when tasked, for knowledge sharing, exchange of experiences and practices and cooperation a. Macroeconomic outlook and policy on finance issues amongst BRICS countries. coordination Macroeconomic outlook and policy coordination e. Central Bank Issues has been one of the core areas of discussion under the Under the BRICS Contingent Reserve BRICS Finance. India's BRICS Chairmanship in 2021 Arrangement (CRA) the 5th CRA Test Run was conducted introduced a BRICS Finance Ministers and Central Bank in 2022 by testing the Liquidity Instrument under the IMF- Governors Joint Statement under this agenda. A BRICS linked portion, without transfer of funds in alternative Finance Ministers and Central Bank Governors Joint payment currency/currencies. Considerable progress was Statement was brought out in 2022 during the Chinese made on CRA amendment by the BRICS central banks BRICS Chairship. and the third edition of the BRICS Economic Bulletin was produced under China Chair in 2022. The People's Bank The Joint Statement focused on current risks in of China (PBoC) conducted the surveys on transition global economic recovery and sustainable development finance and Central Bank Digital Currencies and the draft and called on members to work together to address Stocktaking Reports were finalized in 2022. The common challenges. It also emphasized the need to cooperation under the existing work program of BRICS deepen cooperation among BRICS countries on Rapid Information Security Channel (BRISC) was infrastructure investment, the New Development Bank, continued by PBoC, which included exchanging cyber Contingent Reserve Arrangement (CRA), the payment incident information and best practices in information system and other financial areas, so as to deepen and security, as well as an update to the e-booklet of consolidate cooperation among BRICS countries on information security regulations. Further, the BRICS finance. Payments Task Force (BPTF) continued to act as a b. Infrastructure Investment platform for knowledge and experience sharing through Focus of this agenda was knowledge and dialogues and discussions with a focus on payments and experience sharing on the theme of PPP serving for settlements regulations. sustainable development. A 'Technical Report on Public- BRICS 2023 Private Partnerships for Sustainable Development' was South Africa assumed the BRICS Chairship on brought out as a deliverable for the year 2022 under 1st January 2023 and will host the XV BRICS Summit in infrastructure investment agenda through BRICS Task August 2023 under the theme: "BRICS and Africa: Force on PPP and Infrastructure. The Technical Report Partnership for Mutually Accelerated Growth, Sustainable illustrates the progress, achievements, good practices Development and Inclusive Multilateralism." and experience of BRICS countries with regards to PPP III. G24 promoting sustainable development in terms of economy, The Intergovernmental Group of Twenty-Four society, and environment, collects corresponding PPP on International Monetary Affairs and Development, or project case studies, and outlines future cooperation. The Group of 24 (G-24) was established in 1971 as a c. New Development Bank chapter of the Group of 77 in order to help coordinate On 19thMay, 2022 the 2nd General Strategy the positions of developing countries on international (2022-2026) of New Development Bank (NDB) was monetary and development finance issues, and to approved at the Bank's 7th Annual Meeting of Board of ensure that their interests are adequately represented Governors. Governors requested the Bank, in its new in negotiations on international monetary matters. In general strategy cycle to further crystallize its identity as particular, the G-24 focuses on issues on the agendas an MDB set by EMDCs and for EMDCs, maintain the of the International Monetary and Financial Committee momentum of membership expansion, expand its non- (IMFC) and the Development Committee (DC) as well sovereign operation, focus on mitigation and adaptation as in other relevant International fora. Though originally of climate change, catalyze private capital and strengthen named after the number of founding Member States, it co-financing with other MDBs, and try to pursue higher now has 28 Members plus China, which acts as a credit rating. The NDB also announced the launch of its Special Invitee since 1981). 51Annual Report 2022-2023 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 International Monetary and Financial Committee and the for SAARC Member Countries: Joint Development Committee of the World Bank and "Framework on Currency Swap Arrangement for the International Monetary Fund (IMF). The plenary G- SAARC Countries" was approved by the Government of 24 meetings are addressed by the heads of the IMF and India on 1st March, 2012. The Framework was formulated the World Bank Group as well as by senior officials of with the intention to provide a line of funding for short the United Nation (UN) System. Issues are first discussed term foreign exchange requirements or to meet balance by the Deputies and culminate at the Ministerial level by of payments crises till longer term arrangements are the approval of a document that sets out the consensus made. Under the facility, RBI offers swaps of varying sizes view of member countries. The Ministerial document is to each SAARC member country (Afghanistan, released as a public Communiqué at a press conference Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri held at the end of the meetings. Decision making within Lanka) depending on their two months import requirement the G-24 is by consensus. and not exceeding US$ 2 billion in total, in US$, Euro or The last G-24 Ministers and Governors Meeting INR subject to a floor of USD 100 Million and a ceiling of was held virtually on 11th October, 2022. It was chaired USD 400 million. Apart from the country specific limits, by Governor of the Bank of Guatemala and was followed there is also a provision of 'Standby Swap' of USD 400 by the adoption of a Communiqué. The discussions were Million within the approved Framework to be operated focused under the theme of "Securing a Sustained Post- from the unutilized balance available, within the overall pandemic Recovery Under Uncertainty". The meeting size of the Facility of USD 2 billion. aimed to discuss the key areas where the international Till date, the validity of the framework has been community and international organisations like the IMF extended from time to time. The 'Framework on Currency and World Bank Group need to increase their assistance Swap Arrangement for SAARC Countries' was last to Emerging Market and Developing Economies extended till 30th June, 2023. During FY 2022-23, the facility (EMDEs). Key areas included ensuring food and energy security, availability of vaccines and treatments, financial has been availed by Maldives, Bhutan and Sri Lanka. access and stability, adequate liquidity support and SAARC Development Fund: SAARC development financing in the near- and medium- term. Development Fund (SDF), headquartered in Thimphu, IV. OECD Bhutan, was established and inaugurated in 2010 by the The Organization for Economic Cooperation and SAARC Member countries (Afghanistan, Bangladesh, Development (OECD), founded in 1961, is a global think Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka) tank that works on a host of economic and development to promote the welfare of people of the SAARC region, issues. Today, there are 37 OECD members1 spanning to improve their quality of life and to accelerate economic from South America to Europe and Asia Pacific including growth, social progress and poverty alleviation in the several advanced economies and three emerging market SAARC region. The Fund serves as the umbrella financial economies (Mexico, Chile, Turkey). All OECD members institution for SAARC projects and programmes. It is are signatories to1960 Convention on the OECD and are aimed to contribute to regional cooperation and committed to democracy and market economy. integration through project collaboration. The projects that India engages with some of the key OECD bodies the SDF aims to fund fall under three broad categories/ through participation in the meetings of committees, their windows namely, Social, Economic and Infrastructure. related bodies and global fora. Additionally, India and In India, IER Division of Department of Economic Affairs, OECD engage in bilateral activities, periodic reviews and M/o Finance is the Counterpart Agency for all SDF related sector- specific publications. OECD also publishes the matters. OECD Economic Survey of India that is usually done on VI. BIMSTEC: a two-year cycle. Till date, 5 Surveys have been published with the last one being released on December 2019. Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), a 1The membership of OECD is constituted by 27 European regional organization, came into being on 6th June 1997 countries (Austria, Belgium, Czech Republic, Denmark, Estonia, through the Bangkok Declaration. It comprises of seven Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Member States lying in the littoral and adjacent areas of Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, the Bay of Bengal - Bangladesh, Bhutan, India, Nepal, Turkey and United Kingdom), 5 from America (Canada, Chile, Sri Lanka, Myanmar and Thailand. DEA, Ministry of 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 Pacific (New Zealand and Australia). the BIMSTEC Forum. 52Department of Economic Affairs I 10. Aid Accounts & Audit Division (AAAD) : as repayment, preparation of Annual External Assistance Brochure, processing of claims, repayment of debt and 10.1 AAAD under Department of Economic Affairs maintenance of Debt Records. All the Officers/Staff implements the financial covenants of external Loans/ members of this Division are well versed with the Grants received by Government of India from various functioning of this system. Multilateral and Bilateral donors. Main functions handled by this Division are processing the claims received from 10.3.2 IT-application is being promoted by way of Project Implementing Authorities of externally aided accepting and processing/forwarding of the draw down projects, to draw down the funds from various external claims from various Project Implementing funding agencies and timely debt servicing liability of Authorities(PIAs). PIAs have been provided software Government of India in respect of availed external loans. support for processing the e-claims. Such software is Besides, this Division is also responsible for maintaining being utilized by the PIAs to maximum extent. E-claims loan records, external debt statistics, publication of external in the form of SOE/Interim unaudited Financial Report assistance brochure on annual basis, and framing of (IUFR) ensure faster disbursals. In case of World Bank, estimates of external aid receipts and debt servicing. In claims are processed in E-disbursement mode through addition, audit of import licenses issued by DGFT offices the World Bank's software client connection from this for Export Promotion is also conducted by this Division. Division to World Bank. 10.2 Performance/Achievements During Financial 10.3.3 The customized software of this division i.e ICS year 2022-23 (as on 30th November, 2022) has been upgraded and declared go live from 18th November 10.2.1 Total of 1430 live loan/accounts are being 2022 with a Technical Assistance (TA) from Asian handled by AAAD. Out of these, 405 loan/Grants accounts Development Bank (ADB). The system is being tested with are in disbursement mode. Rest of the loans are live from a view to check functional suitability and user requirement. debt servicing point of view. 10.4 Trainings & Facilitation 10.2.2 External receipts of Loans on Government 10.4.1 In order to familiarise the officers/staff of the PIAs, Account during financial year 2022-23 ( upto 30th training on E-submissions organized by this Division. November, 2022) is `49286/- crore. In addition to loan As a result of initiatives taken by this Division more claims receipts, a sum of `792 Crore has been received as Cash are being received in e-claim forms. Grant. 10.4.2 In order to increase the capacity of the officers 10.2.3 A comparative position of receipts and repayment/ and staff of this division frequently officers are being payment in the current year as compared to previous nominated to ISTM and other training centres for training. financial year and upto 30th November,2022 is as under. The areas covered under the trainings comprises of ethics In ` crore in Governance and Administration, O&M, Cash and Budget and financial management. This office has SI. Description 2021-22 2021-22 2022-23 developed; over a period of time; an excellent centre of No (as on 30th (as on 30th cross learning as a result of continuous interactions of Nov., 2021) Nov., 2022) the officers and staff at international, national and state 1 Receipts level conference/ workshops. (Loans and Grants) 77697 41267 50078 10.4.3 This office facilitates other ministries, state 2 Payments officials; CPSUs in understanding the fund flow (Principal and mechanism in case of externally aided projects. The data Interest) 42602 25926 28996 maintained by this division is shared with other ministries 3. Net Transfer to be used in different reports and analysis. (1-2) 35095 15341 21082 10.5 Standards & Improvements in the Service 10.3 E-Governance deliveries 10.3.1 The Activities of AAAD have been fully 10.5.1 All the activities of this division have been computerized since April 1999. A software known as organised hierarchically and standards in terms of time "Integrated Computerised System" (ICS) is working. This span at each level for their accomplishment have been covers all the activities in the loan cycle i.e. preparation defined. The standards set out are being adhered to by of Estimates for External Assistance for receipt as well close monitoring. Stakeholders of this division are well 53Annual Report 2022-2023 defined consisting of three broad groups i.e. PIAs, in Department of Economic Affairs is in existence in the external funding agencies and others. Service to be Department. rendered to these groups is also well defined i.e. smooth 11.4 Training of Staff Members and quick disbursal of the Loans/Grants, timely debt 11.4.1 Department of Economic Affairs deputes its servicing and to provide management information as and officials for training to ISTM and other institutes to when required. increase their efficiency and improvement in the quality 10.5.2 To ensure continuous improvement in the of their work. During the period 1.1.2022 to 31.12.2022 a performance standards, Management Review Meeting total of 51 officials were nominated for the trainings of (MRMs) are being held. In MRMs performance is critically different levels, which were conducted by the Institute of reviewed. Methods/suggestions for maintenance/ Secretariat Training and Management (ISTM), New Delhi. improvement of the service delivery standards are 11.5 Redressal Of Public Grievances: discussed by the management. 11.5.1 A Centralized Public Grievances Redressal and 10.5.3 This division is ISO 9001:2015 certified division. Monitoring System (CPGRAM) is operational within the This certification provides additional assurance to all the Government which attends to all the Public Grievances stakeholders with respect to the stated standards of this related to various Ministries/ Departments. During the year division. The terms and conditions of the certification are 2022, 3346 fresh public grievance cases were received ensured through annual surveillance audit. Recertification in the Department besides 214 brought forward from the of ISO Certification of this Division was carried out by previous year. Out of these 3560 cases, 3221 cases were URS on 30.06.2021. Latest ISO annual Surveillance Audit disposed off during the year. Further, 194Appeals against was conducted in 2022. the disposal of grievances were received and 177Appeals were disposed off. Adviser (Admin.) is functioning as the 10.6 Audit of Import Licences Nodal Officer for Public Grievances in Department of 10.6.1 AAAD carries out audit of Import Licenses issued Economic Affairs. by licensing offices of the Director General of Foreign 11.6 Right To Information Act, 2005 Trade located at 25 stations for promotion of Export. As a result of settlements a sum of `154 lakh has been 11.6.1 In order to facilitate dissemination of recovered till 30th November, 2022 Now audit teams are information under the provisions of the Right to being deputed regularly. Information Act, 2005, Department of Economic Affairs has taken the following actions : 11. Administration Division (i) An RTI Section is in operation in DEA to collect, 11.1 Functions transfer the applications under the RTI Act, 2005 11.1.1 Administration Division is responsible for to the Central Public Information Officers/Appellate personnel and office administration, implementation of Authorities/Public Authorities concerned and to Official Language policy of the Government, submit the quarterly returns regarding receipt and implementation of the Right to Information Act, 2005, disposal of the RTI applications/ appeals to the redressal of public grievances, training of officials, Record Central Information Commission. Retention Schedule, Complaints Committee on Sexual (ii) In September 2022, the proactive disclosure page Harassment of Women Employees etc. was uploaded on the Department's website 11.2 Staff Strength (www.dea.gov.in) which contained information as 11.2.1 The staff strength in Department of Economic required under Section 4 of the RTI Act, 2005. It Affairs and its attached/sub-ordinate offices/statutory also contains the details of the Department's bodies along with the representation of Scheduled functions along with its functionaries etc. as Castes (SCs), Scheduled Tribes (STs), Other Backward required under section 4(1)(b) of the RTI Act, 2005. Classes (OBCs) and persons with Disabilities therein is (iii) Under Secretaries/ Deputy Directors/ Assistant given in Annexure I & II respectively. Directors, Sr. Accounts Officers and Economic 11.3 Complaints Committee on Sexual Officers level officers of the Department have been Harassment of Women Employees designated as Central Public Information Officers 11.3.1 A Complaints Committee for considering (CPIOs) under section 5(1) of the Act, 2005 in complaints of sexual harassment of women employees respect of subject(s) being handled by them. 54Department of Economic Affairs I (iv) Deputy Secretaries/ Directors/ Addl. Economic 2. Bilingual Website Advisers have been designated as First Appellate The website of the Department is bilingual. Authorities in terms of Section 19(1) of the Act, Besides other material, all budget document, economic 2005, to deal with the Appeals preferred by survey and other publications and important circulars applicants who does not receive a decision within were uploaded simultaneously in Hindi and English. the time specified in the RTI Act or is aggrieved by a decision of the Central Public Information 3. Official language inspection Officer, as the case may be. To ensure compliance of the Official Language Act, rules made thereunder, annual program and orders/ (v) The list of CPIOs and First Appellate Authorities is updated from time to time on the website of DEA instructions related to official language, etc., in the period for the information of Public. To facilitate the public, from 27/04/2022 to 07/12/2022, a total of 18 inspections the RTI Cell is functioning outside the North Block were carried out in the subordinate offices of the at Gate No. 8, to receive the RTI applications. The Department i.e. SEBI, SPMCIL and NSI, including the applications received are forwarded to the Head Offices and their attached offices in which Director concerned CPIOs/ Public Authorities. (O.L.), Deputy Director (O.L.), Assistant Director (O.L.) (vi) The RTI application can be filed through online and the Translation Officers of the section participated. portal www.rtionline.gov.in. The RTI applicants 4. Dispatch of Quarterly Progress Report can see the status of their application as well as The Quarterly Progress Reports of the Ministry their replies through the website. Further, transfer were collected from all the Sections/Divisions of the of application can also be done online. These all processes have resulted in significant reduction Department. The consolidated quarterly progress report in time for processing of RTI applications. was sent to the Department of Official Language, Ministry of Home Affairs. (vii) During the year 2022 from January 1, 2022 to December 31, 2022, 2453 RTI applications 5. Central Official Language Implementation (including 337 physical applications) and 115 Committee Meetings first appeals, were received in the Department. During this financial year, two meetings of the An amount of `1940 (Rupees one thousand nine Official Language Implementation Committee have been hundred and forty only) was received as RTI held so far, which have been held on February 18, 2022 fees and Documents' fees under the RTI Act. and November 15, 2022, the remaining meetings are to 11.7 Use of Hindi in Official work be held before the end of the financial year. 11.7.1 The progress of implementation of various 6. Circulation of Annual Program programs under the Official Language Policy has been The Annual Program for the year 2022-23 issued continuously reviewed during the year under report. by the Department of Official Language, Ministry of Home 11.7.2 All documents were presented bilingually in the Affairs was circulated on 19th May, 2022 to all the Parliament. Section 3(3) of the Official Languages Act, Sections/Divisions of the Department including the 1963 and Rule 5 of the Official Language Rules, 1976 Subordinate Offices and put on the dash board in the e- made thereunder and other instructions issued by the office of the Department. Department of Official Language were fully complied with. During the year, several steps were taken in the 7. Projected Schemes department to increase the use of Hindi in official work. (i) Hindi Advisory Committee meeting is to be 11.7.3 The official language related activities initiated organized as soon as the works related to in the Department are as follows: the budget and the economic review are completed, along with it is proposed to start 1. Hindi Fortnight an Official Language Shield scheme, under Like other years, this year also "Hindi Fortnight" which the subordinate offices of the was organized in the Department of Economic Affairs Department will be encouraged for the from September 14, 2022 to September 30, 2022. In order to promote the use of Hindi in the Department, various remarkable work being done in the field of competitions were organized to create a conducive implementation of official language and they environment. will be provided shield and citation. 55Annual Report 2022-2023 (ii) A Hindi workshop related to the official Grammarly, Caxin, Indiastat and access to e-journals and language will be organized for the purpose back-filed collection through JSTOR is also available. of spreading information about the rules and 11.8.3 Services instructions related to the official language 11.8.3.1 Finance Library provides different kinds of policy to all the sections. services viz. lending, interlibrary loan, consultation, (iii) Apart from this, there is also a proposal to reprographic, circulation of newspapers and magazines, organize a Hindi conference in the reference service, current awareness service through "WEEKLY BULLETIN" as well as providing services Department, which can be done only after through e-mail and also extended the services of e- the budget session. governance. 8. Translation Work The Finance Library also undertakes the work of All Budget documents are presented to Parliament distribution of publications of Ministry of Finance and in Hindi and English. Besides Budget documents, Hindi Reserve Bank of India to State Governments, Foreign Translation Branch has also prepared Hindi versions of Governments and renowned institutions in India as well Supplementary Demands, Reports on Public Statistics and as abroad. A useful links is also provided on intranet by Status Report of External Debt, FRBM Quarterly Reports the Library, which helps the readers in search, and which were laid before the Parliament. download full text of national and international reports The translation of the other official documents and data. as envisaged in the Official Language Act, 1963 and Rules 11.8.4 Publications made thereunder was also undertaken by the Hindi 11.8.4.1 Finance Library brings out two (print + online) Branch during the year under report. These include publications i.e. "Weekly Bulletin" and "Current contents. agreements with Foreign Governments and International 11.8.5 Digital record Agencies, Cabinet Notes, Parliament questions/ 11.8.5.1 Indian Official Documents relating to Economic assurances, notifications, Standing Committee papers, and Finance Subject (Center and State since independence) Action Taken reports, monthly summary for the Cabinet, and Ministry of Finance Gazette Notifications published in Official letters and External funding Report. the Pt. 2 Sec. 3 Sub-section (i) (ordinary) for the year 1955 11.8 Finance Library & Publication Section to 2010 has been digitized. So far around 02 TB Data has been digitized and available in digital format. 11.8.1 Introduction 11.8.1.1 Finance Library & Publication Section was 11.8.6 Computerisation established in 1945. Finance Library functions as the 11.8.6.1 The Library is fully automated. The Library uses Central Research and Reference Library in the Ministry KOHA Library package for database management, retrieval, and caters to the needs of Officials of all the Departments Library automation and other inhouse jobs. The internet of the Ministry of Finance, Ad-hoc Committees and facility is also available in the Library through which Commissions set from time to time and research scholars information is provided to the Officers of Ministry of Finance. from the various Universities in India as well as abroad. As far as accessibility of the online data is This Library also serves as the Publications concerned, e-governance has been extended to the Section of the Ministry, coordinating in the procurement Ministry of Finance. A link from intranet site "finance.nic.in" and distribution of official documents with the various is made available to access the library information. institutions/individuals on demand in India and abroad. 11.8.7 Other works i. The Library undertook modernization and Finance Library has been categorized as Grade infrastructure improvement and 97% work has III Library on the basis of Department of Expenditure's been completed. O.M. No. 19(1)/IC/85 dated 24.07.1990. All the posts in ii. The Finance Library also undertakes the work of the Library are ex cadre posts. reimbursement of newspapers and magazines 11.8.2 Collection of DEA. 11.8.2.1 Finance Library has specialized collection of iii. This Library also serves specifically as the around two lakh documents on Economic and Financial Publications Section of the Ministry; coordinating matters and subscribe to more than 800 periodicals/ in the procurement and distribution of official newspapers annually and databases like Agriwatch, CMIE, documents with the various institutions/ Bloomberg Terminal/Access Anywhere, CEIC portal, individuals on demand in India and abroad. 56Department of Economic Affairs I 12. Bilateral Cooperation and Sustainable A. Bilateral Official Development Assistance Finance Division Policy 12.2 Bilateral Official Development Assistance 12.1 Bilateral Cooperation & Sustainable Finance Policy: Division deals with the following functions: a. Bilateral Official Development Assistance 12.2.1 India has been accepting external assistance Policy: Bilateral Development Assistance from bilateral partners in the form of loans, grants and from all G-8 countries, namely, USA, UK, technical assistance for development of infrastructure, Japan, Germany, France, Italy, Canada and social sector and for enhancement of knowledge/skills Russian Federation as well as the European of Indian nationals at both Centre and States level. As Union and Republic of South Korea and the per the guidelines issued by this Department in 2005, policy relating to it. bilateral development assistance can be accepted from b. Concessional Credit through Lines of all G-8 countries, namely USA, UK, Japan, Germany, Credit (LoCs) extended by Government France, Italy, Canada and the Russian Federation as well of India to partner countries under Indian as from the European Commission. European Union Development and Economic Assistance countries outside the G-8 can also provide bilateral Scheme (IDEAS) and Concessional development assistance to India, provided they commit Financing Scheme (CFS) a minimum annual development assistance of USD 25 c. Economic Policy Dialogues and Forums: million. BC Division deals with following dialogues/ 12.2.2 A revised set of guidelines on Official meetings- Development Assistance for Development Cooperation  India-UK Economic and Financial with bilateral partners were issued in December, 2015. Dialogue After issuance of revised guidelines, the Republic of  India-US Economic and Financial South Korea has been recognized as bilateral partner Partnership country for accepting Official Development Assistance  Indo-French Bilateral Dialogue on from them. Economic and Financial Issues 12.3 Bilateral Development Cooperation with  India-Korean Finance Minister's Meeting Japan  India-Japan Strategic Dialogue on 12.3.1 Japan-Official Development Assistance: Economic Issues, 12.3.1.1 Japan has been extending Official Development  India-Japan Finance Dialogue Assistance (ODA) to India since 1958. Japanese ODA in  India- Switzerland Financial Dialogue the form of loan assistance, grant aid and technical assistance to India is received through Japan International  India-EU Macro-economic Dialogue Cooperation Agency (JICA). Japan is the largest bilateral  India-China Financial Dialogue donor to India.  India-Australia Economic Policy Dialogue 12.3.1.2 Government of Japan has committed JPY  India-New Zealand Economic Policy 412.258 billion (`26,945 crore approx) for 8 Project Dialogue Proposals to India from January 1, 2022 to November  India-German Finance Ministry Senior 30, 2022. As on November 30, 2022, 67 loan projects Officers Meeting are under implementation with Japanese loan  International Platform on Sustainable assistance. Finance The loan amount committed for these projects  India-Korea Working Group Meeting is JPY 3,162.375 billion (`1.94 lakh crore approx.). The cumulative commitment of ODA loan to India has reached d. UNDP and Sustainable Finance JPY 7,023.63 billion on commitment basis till November e. Short-term Foreign Training Courses: The 30, 2022. Division is the focal point for administering all short-term foreign training courses of the 12.3.1.3 The ODA loan disbursement to India from duration up to four weeks offered by various January 1, 2022 to November 30, 2022 was JPY 457.434 international agencies. billion (`27,849.89 crore). 57Annual Report 2022-2023 12.3.2 Grant in Aid well as in the reconstruction of emerging countries. 12.3.2.1 The Government of Japan provides Grant in Aid Through these cooperation activities, participating to India under the following sectors and criteria: volunteers can, not only contribute to the development of partner countries but also gain valuable experience in i) Criteria: terms of international goodwill, mutual understanding and a) Development impacts; an expansion in their international perspectives. b) Utilization of Japanese technology/know- 12.3.4.2 During 1st January 2022 to 30th November how and likelihood of its dissemination to 2022, 18 proposals were posed to Embassy of Japan other areas. and No-objection to 13 Volunteers were issued. ii) Sectors: 12.3.5 JICA Partnership Programme a) Transport sector, including projects using 12.3.5.1 Recognizing the growing importance of NGOs information and communication in international cooperation, the JICA Partnership technology (ICT) and road projects with Programme (JPP) was introduced in 2002. JPP is a slope protection measures (potential line technical cooperation program implemented by JICA to ministries could include Ministry of Road contribute to the social and economic development of Transport and Highways, Ministry of developing countries at the grass-roots level, in Housing & Urban Affairs, etc.) collaboration with partners in Japan, such as NGOs, universities, local governments and public interest b) Power sector, including small-scale hydro corporations while applying for JPP, Indian NGOs are power projects and solar power projects advised to seek a Japanese partner to take part in the (potential line ministries could include scheme. This has two components: Ministry of Power, Ministry of New and Renewable Energy, etc.) 1. Japanese NGO / Institution / Local Government through JICA will support Indian 12.3.2.2 There are four (4) ongoing Grant-in-Aid projects organization with Japanese expert viz. (a) The Project for Implementation of Advanced personnel, equipment provision and Information and Management System in Core Bengaluru Financial support through FCRA route; (b) Construction of the International Cooperation and Convention Centre in Varanasi (c) The Economic and 2. Japanese NGO / Institution / Local Social Development Programme (Provision of Medical Government through JICA will provide Equipment) and (d) Improvement of Power Supply in training of Indian personnel in Japan. Andaman and Nicobar Islands. 12.3.6 Grassroots Funding 12.3.3 Technical Cooperation Programme 12.3.6.1 The Government of Japan also provides small 12.3.3.1 Technical Cooperation aims at transfer of assistance to Indian NGOs under its Grassroots Funding technology and knowledge in a bid to develop and Programme through FCRA route on receipt of no improve human resources and thus contribute to the objection from DEA. Socio-Economic Development of India. The Technical 12.3.7 Green Aid Plan Cooperation covers a broad spectrum of fields ranging 12.3.7.1 The Government of Japan (Ministry of Economy, from basic human needs to Agriculture and Industrial Trade and Industry) provides technical assistance under Development. 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 15 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. 12.3.4 JOCV Programme 12.4 Bilateral Development Cooperation between 12.3.4.1 JICA's volunteer programs, such as Japan India and Germany Overseas Cooperation Volunteer (JOCV), support a wide range of local activities by Japanese citizens who intend 12.4.1 Germany, through their Ministry for Economic to cooperate in the economic and social development as Cooperation & Development (BMZ), has been providing 58Department of Economic Affairs I both financial and technical assistance to India since 12.4.6 At present, there are 41 ongoing projects 1958. In 2008, the German Ministry for the Environment, receiving external financing/loans from KFW aggregating Nature Conservation and Nuclear Safety (BMUB) also Euro 5.66 billion from Germany. initiated assistance under German Government's 12.5 Bilateral Development Cooperation with AFD, 'International Climate Protection Initiative (IKI)', which is France an additional instrument for the assistance of the German Government over and above and without undermining 12.5.1 The Government of France has been extending the existing sources of Official Development Assistance. development assistance to India since 1968. Priority areas of Cooperation includes: Energy, 12.5.2 In 2006, Government of France proposed to Sustainable Urban Development as well as Environment provide untied development assistance to India through and Management of Natural Resources. the French Agency for Development (AFD). In this regard, 12.4.2 Germany implements its financial assistance an inter-governmental Agreement was signed between programmes through KfW, the German Government's the two Governments on 25.01.2008 during the State visit Development Bank. The technical assistance of French President Mr. Nicholas Sarkozy to India. programmes are implemented through GIZ (earlier GTZ) 12.5.3 AFD has been entrusted with a strategic mandate - a fully-owned corporation of German Government. tailored to the Indian Government's priorities. It is Financial Assistance is provided as Reduced Interest implemented through three main focuses for cooperation: Loan (EURIBOR-based loan) as well as Financing grants. Promote sustainable and integrated urban development; The technical assistance is provided in the form of grant Encourage energy efficiency and renewable energy and services by project experts. development; Conserve the country's biodiversity and 12.4.3 Under bilateral development cooperation natural resources. programme two annual meetings at the level of Joint 12.5.4 Since 2008, total net cumulated financing by AFD Secretary/ Additional Secretary (Bilateral Cooperation) i.e. amounts to EUR 2.5 billion. This financing was provided Indo-German Annual Consultations and Indo-German through ODA- compliant loans, on a sovereign and non- Annual Negotiations are held, generally during 2nd sovereign basis. On an average AFD makes annual quarter and 4th quarter of the year respectively. In the commitment of Euro 250 million. Major areas of ongoing Annual Consultations, apart from the policy issues, the cooperation are in the field of: discussion on ongoing projects and new projects and review of ongoing projects are made. In Annual a) Cooperation in the field of public transport Negotiations, the Government of Germany makes sector; commitments of funds for new projects as well as for b) Smart City Mission and additional funding for ongoing projects. On an average c) Water, Environment and Biodiversity sector. Germany makes an annual commitment of Euro 1 billion. The Indo-German Annual Negotiation meeting 2022 was 12.5.5 At present, there are 11 ongoing loans for Euro held in New Delhi on 28th November 2022. The total 1.13 billion with financial assistance from AFD. Some of volume of funds committed by the German side for the major projects being financed by AFD are Ahmedabad Technical and Financial Cooperation projects and Metro Phase II, Surat Metro, Smart City Programme. programmes in 2022 amounts to EUR 982.97 (EUR 12.5.6 French Government also provides technical 919.50 million FC and EUR 39.50 million TC). The assistance in the form of FASEP facility Scheme. FASEP cumulative volume of commitment made by the Germany facility is managed by the Treasury and Economic Policy for bilateral Technical and Financial Cooperation till 2022 General Directorate of the French Ministry of Economy, amounts to EUR 22.93 billion. Finance and Industry. Under this facility, grants are 12.4.5 Pursuant to the Joint Declaration of Intent signed provided to finance technical cooperation in the area of between Hon'ble PM and German Chancellor Olaf Scholz infrastructure projects (water, sanitation, solid waste, in May, 2022 to commit additional at least Euro 10 billion environment, transport, energy). under the Indo-German Partnership for Green and 12.6 Bilateral Development cooperation with Sustainable Development, the German side has Republic of Korea: committed a total of Euro 1009.96 million till November 2022 which includes Euro 982.97 million committed 12.6.1 In the Joint Statement for Special Partnership during Indo-German Annual Negotiation Meeting held on signed during the Prime Minister's visit to Republic of 28.11.2022. In 2022, record volume of financing Korea (RoK) during May 18-19, 2015, it was agreed to agreements aggregating Euro 1.64 billion were signed upgrade the bilateral relationship between the two under Indo-German Bilateral Development Cooperation. countries to a 'Special Strategic Partnership' and to 59Annual Report 2022-2023 expand it into a wide range of areas. Accordingly, RoK extended sine die vide amendment dated 24th November was accepted as bilateral partner for development 1998. cooperation during October, 2016. In the 5th India-Korea EIB loan signed during 2022-2023 Finance Minsters' Meeting held on June 14, 2017 in Seoul, an Economic Development Cooperation Fund 12.8.3 During the year, two Finance Contracts (EDCF) Agreement was signed between the two aggregating Euro 300 million loan were signed between Governments for US$ 1 billion Official Development DEA and EIB for the following two metro rail projects: Assistance (ODA) to India. a. Bhopal Metro Rail Project 12.7 Development Cooperation between India and b. Pune Metro Rail Project. European Union 12.9 Bilateral Development Cooperation with 12.7.1 The European Union (EU) provides development United Kingdom assistance to India in the form of Grants. The priority 12.9.1 The United Kingdom (UK) has been providing areas include environment, public health and education. development assistance to India since 1958. The Since 2014, the financial component of development assistance from the UK, through its Department for assistance from EU was discontinued, however technical International Development (DFID), flows to mutually cooperation and exchange of best practices remains agreed government projects and programmes in the form active in three lines (i) in areas of mutual interest (ii) in of financial and technical assistance. The Development areas relevant to the Sustainable Development Goals with assistance is received mainly for achieving the civil society organizations and (iii) at a regional level to Sustainable Development Goals (SDGs). Presently, address global challenges. Odisha, Madhya Pradesh and Bihar are the three focus 12.7.2 The closure/execution phase of technical states of DFID. assistance project, namely "Support to Renewable 12.9.2 With effect from January 2016, all new Energy, Clean Technologies and Energy Efficiency in development cooperation programmes by the UK India" is undergoing, which will end in April 01, 2024. Government have been either Technical Assistance (TA) 12.8 European Investment Bank (EIB) programmes focused on sharing skills and expertise, or 12.8.1 External Financing in India by European in investments in private sector under PSDI projects Investment Bank (EIB) focused on helping the poor. 12.8.1.1 The European Investment bank is the European 12.9.3 With effect from September 2, 2020, the UK side Union's financing institution which was established in has informed that the Foreign and Commonwealth Office 1958 under the treaty of Rome (1957) to provide financing (FCO) and the Department for International Development for capital investment. The members of the EIB are the (DfID) have ceased to exist. The Foreign, Commonwealth member States of the European Union, who have all and Development Office (FCDO) will take on responsibility subscribed to the Bank's capital. Outside the European for Memorandums of Understanding and other contracts Union, EIB financing operations are conducted principally agreed by either the Foreign and Commonwealth Office from the Bank's own resource but also, under mandate, or the Department for International Development. from Union or Member States' budgetary resources. 12.10 Bilateral Development Cooperation with the USA Under these arrangements, the EIB's funds are utilized 12.10.1U.S. Agency for International Development to finance investments in countries signatory to (USAID) Cooperation Agreement with the EU. 12.10.1.1 The United States of America's bilateral 12.8.2 EIB in India: development assistance to India started in1951 and it is 12.8.2.1 EIB's activities in India is anchored by the Joint mainly administered through USAID. Since its Action Plan (JAP) of the Strategic Partnership between commencement, USAID has provided economic the EU and India. EIB aims to increase its lending assistance of over US $ 17 billion to India in various activities focusing mainly on environmental sustainability sectors for over 555 projects. Currently, the following and large infrastructure project through FDI, transfer of seven projects worth a total budget of US $ 750 million technology and know-how. EIB investments in India are (approx.) is being implemented by USAID in partnership governed by the Framework Agreement for Financial with GOI: Cooperation. This agreement was signed between India i. Partnership Agreement for Agri. & Food and EIB on 25th November 1993 by the Charge d' Affairs Security Program; of India at Brussels. The Framework Agreement was initially valid for a period of three years and later it was ii. Partnership Agreement for Sustainable 60Department of Economic Affairs I Forests and Climate Adaptation Program; extension to the scheme has been granted in 2015 for another five years i.e. 2015-16 to 2019-2020, with revised iii. Partnership Agreement for Water, Sanitation set of guidelines with a view to improve efficiency and and Hygiene (WASH); make the system robust and transparent. iv. Partnership Agreement for Renewable Energy 12.11. 2 LoCs are being operated through Export-Import Technology Commercialization & Innovation; Bank of India, which raises resources from the market v. Partnership Agreement for Health Project; and provides LoCs to recipient Governments at vi. Disaster Management Support Project; and concessional rates. GoI backs the LoCs through a Deed of Guarantee in favour of the lending bank to guard vii. Partnership Agreement for the Energy against any default by the borrowing Government in Efficiency Technology Commercialization and payment of interest and principal to the lending bank. Innovation Project. GoI also extends Interest Equalization Support (IES) to 12.10.2United States Trade and Development Agency the lending bank for enabling it to lend on concessional (USTDA) terms. 12.10.2.1 USTDA promotes economic growth in emerging 12.11. 3 With the approval of the Cabinet, the Indian economies by facilitating the participation of U.S. Development and Economic Assistance Scheme (IDEAS) businesses in the planning and execution of priority have been revamped and continued till 31 March, 2026, development projects in host countries. Since 1992, the or till further review, whichever is earlier U.S. Trade and Development Agency has supported over 12.11.4 As on November 30, 2022, 312 LOCs have 100 priority development projects in India with public and been extended to 68 countries for an amount of USD private sector sponsors. 32.29 billion. Out of this, value of contracts covered under 12.10.3International Development Research Centre the LOC by Exim Bank is USD 14.33 billion and (IDRC) disbursements made are USD 10.54 billion. During FY 2022-23 (i.e. April, 2022 to November 30, 2022), 5 LOCs 12.10.3.1 The Canadian bilateral development assistance worth USD 659 million have been extended to developing to India is received through IDRC - an entity created and countries''. funded by the Parliament of Canada. IDRC supports research activities in developing countries to promote 12.12 Credit extended under Concessional growth, reduce poverty, and drive large-scale positive Financing Scheme (CFS) change. In India, IDRC extends grant assistance to 12.12.1 The Concessional Financing Scheme was various Govt. and Non-Govt. organizations for research introduced in September 2015 after obtaining the approval projects in the field of agriculture, health and family of CCEA to support Indian companies bidding for welfare, etc. strategically important infrastructure projects abroad. The B. Concessional Credit extended by guidelines on CFS were revised on 10-08-2018 for the Government of India under IDEAS and CFS period from 2018-2023. 12.11 Lines of Credit (LoCs) extended to developing 12.12.2 Under the Scheme, MEA selects the specific countries under Indian Development and projects keeping in view strategic interest of India and Economic Assistance Scheme (IDEAS). sends the same to Department of Economic Affairs (DEA). The strategic importance of a project to deserve 12. 11.1 Lines of Credit (LoCs) form an important financing under this Scheme, is decided, on a case-to- component of India's diplomatic strategy and have been case basis, by a Committee chaired by Secretary (DEA) very useful in generating goodwill and building long term and with members from Department of Expenditure, partnerships. GoI extends Lines of Credit to Developing Ministry of External Affairs, Department for Promotion of African and Non-African Countries through Indian Industry and Internal Trade (DPIIT), Department of Development and Economic Assistance Scheme Commerce, Department of Financial Services and (IDEAS). This Scheme was initially known as "India Ministry of Home Affairs. The Deputy National Security Development Initiative" (IDI) and flows from the Adviser is also a member of this Committee. Once announcement made by the Finance Minister in the Union approved by the Committee, DEA issues a formal letter Budget for FY 2003-04. GoI has been extending Lines to EXIM Bank conveying approval for financing of the of Credit to developing countries under IDEA Scheme project under CFS. since 2005-06. Initially proposed to be operated for five years from 2005-06 to 2009-10, the scheme was granted 12.12.3 The Scheme is being operated through the first extension in 2010 from 2010-11 to 2014-15. Second Export-Import Bank of India, which raises resources from 61Annual Report 2022-2023 the market to provide concessional finance. GoI provides C. Economic Dialogues and Forums counter guarantee and interest equalization support of 14. During the year 2022-23, following dialogues/ 2% to the EXIM Bank. meetings were held : 12.12.4 Two Projects agregating USD 2.6 billion are 12.14.1 India-Japan Finance Dialogue: under implementation under the CFS providing 12.14.1.1 The 1st India-Japan Finance Dialogue was held on 16th June, 2022 in New Delhi under the co- concessional financing to the neighbouring countries chairmanship of Secretary, Department of Economic Bangladesh and Sri Lanka. Affairs, Ministry of Finance and Vice Minister of Finance 12.12.5 The concessional credit extended under the for International Affairs, Japan. Both sides exchanged CFS has been merged as a distinct views on the macroeconomic situation, financial system, component under Indian Development and financial digitalization and investment environment and Economic Assistance Scheme (IDEAS) 2022. agreed to continue discussions for further promoting financial cooperation and strengthening bilateral relations. Azadi Ka Amrit Mahotsav 12.14.2 India-Korea Working Group Meeting: 12.12.6 During the iconic week celebrations by Ministry 12.14.2.1 India-Korea Working Group Meeting (WGM) of Finance under Azadi Ka Amrit Mahotsav , Hon'ble serves as a platform for discussing all the issues Finance Minister launched the New e-Tracking and pertaining to the financial package offered by Republic Remote Administration (NETRA) website and Mobile App of Korea and progress of candidate projects etc. The 10th for Indian Development and Economic Assistance India-Korea WGM was held on July 07, 2022 in Seoul Scheme (IDEAS) on June 8, 2022. under the co-chairmanship of Deputy Director General, 12.13 MoU between EXIM Bank and Republic of DEA from Indian side and Director, Ministry of Economy Chad and Finance from Korean side. 12.13.1 A memorandum of understanding (MOU) is 12.14.3 India-US Economic & Financial Partnership signed between the EXIM Bank of India, on behalf of (EFP) meeting India and the Republic of Chad in respect of their request 12.14.3.1 There is a mechanism of Economic & Financial for debt treatment under the G20 "Common Framework Partnership Ministerial meetings between India and the for Debt Treatments beyond the DSSI". The MoU seeks U.S.A. in place since 2010. The last/ ninth ministerial commitment from the Creditor Committee members to meeting of the India-USA Economic & Financial reconvene the meeting in future when the IMF-WBG Debt Partnership was held on 11th November 2022 in New Delhi, India. The Indian delegation was led by Hon'ble Sustainability Analysis (DSA) assesses that a financing Finance Minister, Smt. Nirmala Sitharaman and the U.S. gap has reappeared. The G20 members including India delegation was led by the Secretary of the U.S. Treasury, and the Paris Club endorsed the "Common Framework Dr. Janet Yellen. for Debt Treatments beyond the DSSI" in the G20 Finance Ministers and Central Bank Governors' (FMCBG) meeting 12.14.3.2 During the meeting, discussions were held on held in November 2020. Under this framework, the debtor a range of subjects, including macroeconomic outlook, country requires signing of an MoU with participating supply chain resilience, climate finance, multilateral creditors and seeks a treatment at least as favorable as engagement, global debt vulnerabilities, anti-money laundering, and combating the financing of terrorism. The the one agreed in the MoU (known as 'Comparability of meeting concluded with the adoption of a Joint Statement. Treatment' (COT) principle) from all its other official bilateral creditors and private creditors. Further, the debt D. UNDP and Sustainable Finance treatment must be supported with the IMF program and 12.15 United Nations Development Programme need for debt treatment and the required restructuring 12.15.1 UNDP is an agency of the United Nations financial envelope should be based on the DSA of IMF- working in the areas of human development, systems WBG. The first request for debt relief under the Common and institutional strengthening, inclusive growth and Framework was received from the Republic of Chad in sustainable livelihoods, sustainable energy, environment December 2020. A committee of creditors was formed and resilience. UNDP is led by the Executive Board which with members from India, China, Saudi Arabia and France provides inter-governmental support to and supervision in April 2021. The signed MOU is the outcome of the of UNDP activities. Currently, India is a member of the series of technical and creditors committee meetings held Board where the Permanent Representative of India to so far to address the debt vulnerabilities of the Republic the United Nations represents India. India's annual of Chad. contribution to the UNDP has been to the extent of US$ 62Department of Economic Affairs I 4.5 million. Besides this contribution, India pays the local inclusive entity, presently has 19 member countries office expense to UNDP towards Government Local representing 55% of greenhouse gas emissions, 51% of Office Contributions. DEA is the point of interface between the world population and 55% of global GDP. Work of UNDP and any other national or sub-national authorities IPSF is informed by twelve observers which include the and agencies in India. DEA decides the amount of World Bank, IMF, UNDP, UNEP and OECD. voluntary contribution to UNDP and makes local office 12.17.2 IPSF will enable India to participate in the contribution. Projects implemented by UNDP in India are process of global deliberations on the evolution of considered for clearance in DEA. Sustainable Finance as a major line of financing for the 12.16 Global Environment Facility future, in the crucial climate change management sector. 12.16.1 Global Environment Facility (GEF) was The third IPSF Annual Report and IPSF Transition established on the eve of the 1992 Rio Earth Summit to Finance report were published in November 2022 at the help tackle earth's most pressing environmental occasion of the IPSF Annual Event. These reports give an overview of the work of the IPSF during the year, such problems. GEF's Secretariat is based in Washington D.C., as the work on taxonomies, disclosures and transition USA. GEF provides grants for projects related to finance. biodiversity, climate change, chemical waste, international waters and land degradation. The GEF connects 184 12.18 Climate Finance Leadership Initiative (CFLI) member countries with international institutions, civil India society organizations (CSOs), and the private sector to 12.18.1 The Climate Finance Leadership Initiative (CFLI) address global environmental issues while supporting India partnership was launched at the 11th India-UK national sustainable development initiatives. Economic and Financial Dialogue held on 2nd September 2021. CFLI is a group of leading financial institutions led 12.16.2 India is a founder member of GEF. The by UN Special Envoy for Climate Ambition and Solutions, Executive Director of India in the World Bank Group Mr Michael Bloomberg. CFLI India aims to work with represents the South Asian Constituency in the Council financial institutions, corporates, and existing sustainable of GEF. The constituency members include Bangladesh, finance initiatives to accelerate efforts to mobilise capital Bhutan, Maldives, Nepal and Sri Lanka. India in GEF is into India for sustainable infrastructure projects in specific represented by DEA as Political Focal Point (PFP) and low-carbon sectors. N. Chandrasekaran, Chairman, Tata by Ministry of Environment, Forest and Climate Change Sons and Shemara Wikramanayake, Managing Director (MoEFCC) as Operational Focal Point (OFP). The PFP and Chief Executive Officer, Macquarie Group are co- deals with the financing framework of GEF as per which chairs of CFLI India. the funds are contributed by the member countries to the GEF kitty. The OFP coordinates all GEF-related E. Foreign Training Courses/Programmes activities within a country and reviews project ideas, 12.18.2 Department of Economic Affairs is the nodal checks against eligibility criteria and ensures that new point for administering short term foreign training courses project ideas will not duplicate an existing project. offered by some bilateral partner countries under bilateral cooperation programme and some multilateral agencies. 12.16.3 India is a donor as well as a recipient member These courses are intended for capacity building of the of GEF. Being the PFP for GEF, DEA decides voluntary officers in various spheres/fields of activities including contribution to GEF. India has contributed around USD sectors such as Education, Health, Water Resources, 96.75 million to GEF since its inception in 1991. This also Disaster Management, Governance, Natural Resources includes committed voluntary contribution of USD 18.75 and Energy, Agriculture, Nature Conservation, million under the current replenishment cycle i.e., GEF-8 Environmental Management, etc. Nominations are invited that runs from 2022-2026. Under GEF-7 (2018-2022), from all Ministries /Departments, State Governments/ India received a total allocation of USD 85.62 million. Union Territories. The nominations are screened by a 12.17 International Platform on Sustainable Finance Selection Committee in DEA and thereafter 12.17.1 International Platform on Sustainable Finance recommended to the sponsoring Government/Agency for (IPSF) is a forum for dialogue between policymakers, acceptance. During 2022-23 (upto November, 2022) DEA with the overall aim of increasing the amount of private has processed trainings for 134 Short Term Foreign capital being invested in environmentally sustainable Training Programmes (less than four weeks) from investments. IPSF, an initiative taken by the European Singapore Cooperation Programme Training Award Union, was launched on 18th October 2019 at (SCPTA), Japan International Cooperation Agency (JICA) Washington DC, USA with India as a founding member. and Malaysian Government as received and suitable This platform, designed as a member driven informal and applicants have been recommended for the purpose. 63Annual Report 2022-2023 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.31-Department of Financial administered by the Division is given below: 13.2 Budgetary allocation of the Grants (on net basis) ( ` in crore) Grant BE 2022-23 RE 2022-23 BE 2023-24 30- Department of Economic Affairs Revenue 6143.36 6803.80 6321.62 Capital 8396.90 4944.07 4559.43 Total 14540.26 11747.87 10881.05 32- Department of Financial Services Revenue 1102.70 1366.42 1112.35 Capital 4211.03 3536.00 212.29 Total 5313.73 4902.42 1324.64 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. 64Department of Economic Affairs I PARAS OF AUDIT REPORTS OF C&AG - Details of ATNs Audit paras pending with different Ministries/Departments and their disposal status - as on 31.01.2023 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 & 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. 6 of 2021 ... ... ... 1 2. 7 of 2021 11 ... 2 ... 3. 18 of 2022 ... ... 1 ... 4. 32 of 2022 ... 1 ... ... Summary of Important Audit Observations:- Chapter 2: Overview of Union Finances Report No. 31 of 2022 (Financial Audit) - Union The Gross Domestic Product (GDP) at the end of FY21 Government Accounts of the Union Government for the was `135,58,473 crore at Constant Prices (base year year 2020-21 2011-12) and `198,00,914 crore at Current Prices. In both Tabled in the Parliament on: 21st December, 2022 cases there was a decline of 6.60 per cent and 1.36 per cent over the previous year respectively. This is against The Report includes matters arising from test audit of a GDP growth of 3.74 per cent at Constant Prices and a the Finance Accounts and the Appropriation Accounts of growth of 6.22 per cent at Current Prices during FY20. the Union Government for the year ended March 2021. However, the prevailing scenario may be viewed in light Chapter 1: Introduction of the fact that the economy suffered adversely during The Annual Accounts of the Union Government presented 2020-21 on account of Covid pandemic. to the Parliament consist of the Finance Accounts and [Para 2.1] the Appropriation Accounts. The Union Government During FY21, the Union Government had total resources Finance Accounts (UGFA) depict the receipts and of `135,36,878 crore through debt receipts (`81,62,910 payments from the Consolidated Fund of India (CFI), crore, 60.30 per cent), gross non-debt receipts Contingency Fund and Public Account. The Union (`25,27,330 crore, 18.67 per cent) and gross receipts Government Appropriation Accounts compare into public accounts (`28,48,879 crore, 21.05 per cent). expenditure with the allotments authorised by the The application of total resources was `135,31,932 crore, Parliament and provide explanations for variations on repayment of debt (`61,84,635 crore, 45.69 per cent), between the two beyond specified limits under each discharge of liabilities on Public Account (`28,44,653 Grant/ Appropriation. crore, 21.01 per cent), actual expenditure (`39,07,647 This Report of the Comptroller and Auditor General of crore, 28.87 per cent) and States' share in Union taxes India (CAG) on the finances of the Union Government (`5,94,997 crore, 4.40 per cent). Gross non-debt receipts analyses the financial performance of the Union of `25,27,330 crore comprise gross revenue receipts Government and discusses the significant trends and (`24,59,510 crore) and Non-Debt Capital receipts structural profile of the Government's receipts and (`67,820 crore). The gross revenue receipts of disbursements during the financial year 2020-21. `24,59,510 crore consist of gross tax receipts of 65Annual Report 2022-2023 `20,27,104 crore (includes States' share in Union taxes Grants-in-Aid (GiA) to States and UTs pertaining to of `5,94,997 crore) and non-tax receipts of `4,32,406 Centrally Sponsored Schemes plateaued in the last four crore. years and was `2,08,394.63 crore in FY21, while the Finance Commission Grants increased substantially from [Para 2.3] `93,703.58 crore to `1,84,062.50 crore in last two years. The Finance Commission Grants increased by 48.79 per In gross tax receipts of `20,27,104 crore, direct taxes cent in FY21 mainly on account of increase in 'post- amounted to `9,45,117 crore (46.42 per cent) and indirect devolution revenue deficit grant' by `46,026.50 crore. In taxes to `10,81,987 crore (53.38 per cent). Further, cess respect of UTs with Legislature, the increase was on collections at `3,99,949 crore constituted about one-fifth account of 'Special Assistance' to Jammu and Kashmir, of the gross tax receipt in FY21. amounting to `30,757 crore. [Para 2.3 and Para 2.3.1.1] [Para 2.4.2(D)] Total expenditure of the Union at `39,07,647 crore in FY21 In FY21, the total liability as per UGFA was `122,85,644 increased by 28.20 per cent over the previous year. While crore. Total liabilities consistently increased by more than revenue expenditure of `33,14,852 crore registered 10 per cent from FY18 onwards. The increase was 17.64 increase of 26.75 per cent, expenditure on loans and per cent in FY21, on account of increase in Public Debt advances of `2,49,846 crore registered increase of (22.88 per cent). 453.48 per cent from `45,141 crore, on account of [Para 2.5] enhanced loans and advances to State and UT Fiscal deficit in FY21 was `19,75,314 crore. Fiscal deficit Governments, and for economic services sector. was financed mainly from the net internal debt with more However, capital expenditure of `3,42,949 crore than 90 per cent share. External debt for financing fiscal decreased by 11.55 per cent compared to the previous deficit also saw a consistent increase through FY17 from year's figures of `3,87,744 crore. `17,997 crore to `89,223 crore in FY21. Fiscal Deficit of `19,75,314 crore in FY21 included borrowing of `1,10,208 [Paras 2.4 and 2.4.1] crore by the Union Government on behalf of State Revenue expenditure of `33,14,852 crore include interest Governments, which was transferred to them as back to payments of `7,20,984 crore (21.75 per cent) in FY21 - back loan, to compensate for shortfall in GST on internal debt (`6,44,829 crore), on Small Savings and Compensation Cess. Out of the fiscal deficit of `19,75,314 Provident Fund, etc. (`42,429 crore), on external debt crore in FY21, `14,50,339 crore (73.42 per cent) was on (`8,204 crore) and rest on other obligations (`25,522 revenue account, with an year on year increase of 8.71 crore). As a proportion of revenue receipts, interest per cent. payments grew from 33.64 per cent in FY20 to 38.67 per [Para 2.7] cent in FY21. Chapter 3: Quality of Accounts and Financial Reporting Practices [Para 2.4.2(A)] Audit of guarantees as depicted in Statement 4 of UGFA Expenditure on subsidies in FY21 rose by 187.81 per revealed instances of non-disclosure of guarantees given cent to `7,54,936 crore over FY20, mainly on account of to public sector entities, variation between guarantees payment of arrears to Food Corporation of India in lieu of shown in UGFA and CPSEs records and non recovery of food subsidy. The annual growth on food subsidy in FY21 guarantee fees. was 398.06 per cent. Due to this substantial increase, [Para 3.2] the expenditure on subsidies increased as a percentage of revenue expenditure from 10.03 per cent in FY20 to UGFA Statement 11 shows the details of investments by 22.77 per cent in FY21. the Union Government in Statutory Corporations, [Para 2.4.2(C)] Companies, other Joint Stock Companies, Co-operative 66Department of Economic Affairs I Banks and Societies etc. There was mismatch of `119,04,054.99 crore, total expenditure thereon was information relating to number of equity shares and `107,52,209.61 crore with overall savings of percentage of Government shareholding in comparison `11,51,845.38 crore. with annual reports of the entities, non-depiction of [Para 4.1.1] investments in certain entities, shortfall in payment of There was excess disbursement of `1,18,651.04 crore dividend and non-depiction of dividend etc. over authorization involving two Grants of Ministry of [Para 3.3] Defence and one Grant pertaining to Department of Food Suspense heads depicted only net balances and did not and Public Distribution. The main reason for excess of disclose the outstanding amount separately as Credit and `1,18,648.60 crore in the Department of Food and Public Debit balances under these heads. Resultantly, the Distribution was payment of subsidy to Food Corporation balances varied by 91.64 per cent under Suspense of India (FCI) and repayment of outstanding balance of NSSF loan to FCI. The Government stated that the Account (Civil) and 58.60 per cent under PSB Suspense. excess would be regularized at appropriate time by Accumulation of large suspense balances Impacts on the obtaining Parliament's approval, in consultation with MoF. accuracy of receipt, expenditure and cash balance [Para 4.2.1] position as appearing in the accounts. [Para 3.4.1 and 3.4.2] Total savings under all the Grants/ Appropriations were `11,51,845.38 crore, constituting 9.68 per cent of total There were instances of short/ non-transfer of collected authorisations. There were Savings of `100 crore or more amounts of cess/ levy to the designated reserve funds, in 113 segments of 77 Grants/ Appropriations amounting non-opening/ non-operationalisation of reserve funds, to `12,68,488.40 crore. Further, out of the 22 Grants/ dormant reserve funds without any transactions Appropriations with savings of `5,000 crore or more in thereunder and deviation from approved accounting FY21, nine had substantial savings in FY19 and FY20 as procedure in accounting the transactions under reserve well. funds. [Para 4.2.2 & 4.2.2.1] [Para 3.6] Significant savings of `500 crore or more at minor-head/ At the end of FY21, an amount of `5,58,394 crore is sub-head level and savings of more than 25 per cent of outstanding as loans and advances given by the Union allocations subject to a minimum of `100 crore were Government to State/ UT Governments and other entities. noticed in 324 cases of 69 Grants/ Appropriations out of Out of this, arrears in recovery (principal and interest) at 97 Civil grants/ Appropriations. the end of FY21 was amounting to `63,763 crore. [Para 3.7] [Para 4.2.2.2] During FY21, Specified Undertaking of UTI (SUUTI) In 11 Minor/ Sub-heads under eight Grants, remitted `3,124.86 crore (`1,497.00 crore towards supplementary provisions amounting to `1,680.17 crore remittances to GoI out of interest and dividend income were obtained during FY21 in anticipation of higher and `1,627.86 crore towards sale of strategic holding in expenditure, but final expenditure of `10,219.33 crore Axis Bank) which was accounted for in the UGFA as was less than the original provisions of `13,017.06 crore. [Para 4.3] 'Other receipts' (Minor Head 800) under Sub-Major Head- 01 under MH 4000-Miscellaneous Capital Receipts, Excess expenditure over total authorisation aggregating instead of treating as non-tax receipts. to `7.58 crore, attracting limitations of New Service/ New [Para 3.8.3] Instruments of Service, occurred in five cases under two grants related to object head 'Grants-in-aid General' and Chapter 4: Budgetary Management 'Grants for Creation of Capital Assets' during FY21, Appropriation Accounts consisting of 101 Demands for without prior approval of the Parliament. FY21 had approved provisions aggregating to [Para 4.8] 67Annual Report 2022-2023 14. Coin and Currency Division of coins, expansion, diversification and modernization of Mints and Security Presses. 14.1 Coin and Currency Division is responsible for policy related to all aspects of the currency and coinage of 14.1.3 SPMC Section deals with matters related to India. The works of the Division is carried out in close SPMCIL, which is under administrative control of the coordination with Reserve Bank of India (RBI), Security Department. The Section deals with issues of this Printing and Minting Corporation of India Limited (SPMCIL), company relating to appointment to Board Level posts, MoU, residual establishment matters of its nine Units, Bhartiya Reserve Bank Note Mudran Private Limited and coordination of meetings of SPMCIL Board, SPMCIL (BRBNMPL) and Bank Note Paper Mill India Private Pension Fund Trust etc. Limited (BNPMIPL). The Division has three Sections viz. Currency, Coin and SPMC Section. Responsibilities among 14.2 Major achievements of the Division are given these Sections are divided as follows: below: 14.2.1 In order to stay ahead of the counterfeiting, 14.1.1 Currency Section deals with all policy matters Government of India, in consultation with RBI, has initiated relating to design, form and material of currency notes/ the process for introduction of new security features in banknotes including security features, and operational Indian banknotes. The Government has approved the issues relating to production, planning of printing of bank recommendations of RBl's Central Board on revised notes, Currency related legislation, indigenization of bank matrix of security features in bank notes in terms of the note materials, expansion, up-gradation and provisions of section 25 of the RBI Act, 1934. RBI has modernization of Presses, Paper Mills, Ink factory, etc. initiated process for introduction of this revised matrix of administration of SBN (Cessation of Liabilities) Act, 2017 security features. This revised matrix of new security and Rules made thereunder, and policy issues on crypto features is expected to protect against counterfeiting of assets including legislation and Central Bank Digital the currency notes. Currency. 14.2.2.1 The production of banknotes by BRBNMPL and SPMCIL is monitored by this Division. The meetings of 14.1.2 Coin Section deals with policy matters relating Strategic Planning Group and Production Planning to design, shape and size of circulation coins, fixation of Committee are also held regularly to review the indent fair selling price of coins, coins related legislations and and production of banknotes and coins & their issuance of Commemorative Coins, security products viz. uninterrupted supply to public. The cumulative production passport, postal stamps, Non-Judicial Stamp Paper, of notes by the currency presses during 2022-23 up to production planning of coins and determination of indent 31.12.2022 is given below: IV. Status of indent of notes by BRBNMPL and SPMCIL during 2022-23 up to 31.12.2022 Press Total Indent allocated Cumulative production Production left for for 2022-23 (in mpcs) 01.04.2022 to 31.12.2022 2022-23 (in mpcs) (in mpcs) BRBNMPL 13,560 11,389 1247* SPMCIL 9,040 6,551.6 2,488.4** Face Value (Cr) BRBNMPL 3,68,760 3,12,401 36,446 SPMCIL 2,45,840 1,69,566.4 76,263.6 * As per the advice of RBI, carry forwarded stock of 924mpcs is adjusted in the production for 2022-23. Supply indent is 13,560 mpcs only. ** 250 mpcs packed stock and around 1500 mpcs of semi finish was also available at Presses on 31.12.2022. 14.2.2.2 The trends in the Note In Circulation (NIC) are visually impaired. Hon'ble Prime Minister on 7th March monitored. The Notes In Circulation (NIC) as on 2019 released the new series coins. The new features November 4, 2016 were `17,74,187 Cr. which have now incorporated in the new series of coins include pattern of increased to `32,52,070 Cr. as on 13th January, 2023. increasing size (i.e. diameter) from lower to higher 14.2.3.1 New Series of Coins which are friendly to denominations and weight in increasing order from lower visually impaired people: This Department vide Gazette to higher denomination. The theme of new series coins notification dated 6th March 2019, has notified new series is 'Agriculture', represented with crop grains on the coins of One Rupee, Two Rupees, Five Rupees, Ten reverse side of the coins. RBI has commenced Rupees and Twenty Rupees easily identifiable to the distribution of new design coins among public. 68Department of Economic Affairs I 14.2.3.2 Furthermore, this Department vide Gazette by the Government of India (Ministry of Finance) directly. notification dated 08th November, 2021 has notified a The Company is wholly owned by the Central Government special series of circulatory coins of One Rupee, Two with Authorized Share Capital of `2500 crores and paid- Rupees, Five Rupees, Ten Rupees and Twenty Rupees up Share Capital of `987.50 crores. to celebrate 75th years of India's Independence under 14.3.2 The Reserve Bank of India (RBI) is the customer the Azadi Ka Amrit Mahotsav (AKAM) celebrations. These for currency notes supplied by two Currency Presses of coins are part of the action plan of Department under the Company, i.e. Bank Note Press (BNP), Dewas and AKAM. This special Series of coin will retain other existing Currency Note Press (CNP), Nashik. The Ministry of features, including all the visually-impaired friendly External Affairs (MEA) and Ministry of Home Affairs features of the New Series of Coins, 2019. These special (MHA) are customers for passports and visa stickers coins were released by Hon'ble Prime Minister on 6th respectively and the State Governments are customers June, 2022. for Non-Judicial Stamp Papers and allied stamps and 14.2.3.3 The trends in Coins In Circulation (CnIC) are the Postal Department is the customer for postal also monitored. As on 31.10.2022, the CnIC of ` 28468.72 stationery, stamps, etc. supplied by the two Security crore. CnIC has risen to `1770.66 crore as compared to Presses of the Company, i.e. Security Printing Press CnIC as on 31.10.2021. (SPP), Hyderabad and India Security Press (ISP), Nashik. These Security Presses also produce various 14.2.4.1 As per the Coinage Act, 2011, commemorative security items like cheques, railway warrants, income coin means any coin stamped by the Government or any tax return order forms, saving instruments, other authority empowered by the Government in this commemorative stamps, excise adhesive labels, behalf to commemorate any specific occasion or event certificates etc. for various customers. The Department and expressed in Indian currency. Accordingly, the of Economic Affairs (DEA), Ministry of Finance is the Government issues commemorative coins on eminent customer for circulation coins supplied by the four India persons/ personalities/ institutions/ events/ programmes/ Government Mints (IGMs) of the Company at Mumbai, history, etc. that have a national or international nature Kolkata, Hyderabad and Noida. The Company has one and which have made a lasting contribution or impact. Security Paper Mill (SPM) at Narmadapuram which The contribution made by the individual/ organisation/ manufactures Security Paper for use by Currency / programme/ event should have transcended the barriers Security Presses. The Company also has an Ink Factory of partisan politics, region, community, language or at Dewas which manufactures Offset Ink, UV Ink and religion. However, on an occasion to express sympathy/ Quickset Intaglio Ink for use by the presses of SPMCIL. grief/ exhibit respect for the sacrifice, Commiserative Coins' would be issued. The Guidelines in this regard 14.3.3 As a company which is manufacturer of has been issued on 29.09.2020. instruments of faith, SPMCIL is inspired by its vision to serve national priorities of producing state-of-the-art 14.2.4.2 During 2022-23 (Upto 11.01.2023), the security products leveraging core competency and Government issued Gazette Notifications for release of building design capabilities. With the commitment to aid 9 Commemorative Coins viz. to mark the occasion of the nation by manufacturing world class and highly 400th Birth Anniversary of Guru Shri Tegh Bahadur Ji, to secured banknotes, coins and security documents, celebrate the Centenary Year of University of Delhi, Birth SPMCIL has almost 100 years of security printing Centenary of Shri Jawaharlal Darda, 175 Years of IIT experience and over two centuries of experience in the Roorkee, 250th Birth Anniversary of Raja Ram Mohan field of minting. Roy, 90th Interpol General Assembly, 150th Birth 14.3.4 SPMCIL has produced 8008 million pieces of Anniversary of Yugvir Jainacharya Srimad Vijay Vallabh the Bank Notes and supplied 8900 million pieces of Bank Suri, 150th Birth Anniversary of Shri Ram Chandra Ji and Notes and 39 mpcs of Re.1 Currency Note to Reserve 150th Birth Anniversary of Sri Aurobindo. Bank of India (RBI) during the year 2021-22. This is 14.3 Security Printing and Minting Corporation of 3.38% lower than the production of 8288 million pieces India Limited (SPMCIL): of the Bank Notes during the last year i.e. 2020-21 and 14.3.1 Security Printing and Minting Corporation of India this reduction in production is due to reduction in the Ltd. (SPMCIL), a Miniratna Category-I, Schedule-'A' indent of Bank Notes by Reserve Bank of India (RBI) Central Public Sector Enterprise (CPSE) was incorporated during the year 2021-22. Production of the Bank Notes on 13th January 2006 to manage four India Government per employee has increased to 3.56 million pieces in Mints, two Currency Presses, two Security Presses and 2021-22 as against 3.24 million pieces achieved during one Security Paper Mill, which were earlier being managed the last year 2020-21. 69Annual Report 2022-2023 14.3.5 SPMCIL has produced 784 million pieces of the The consolidated TCI after taking into account the 50% Circulation Coins and supplied 800 million pieces of the share of Joint Venture Company, Bank Note Paper Mill Circulation Coins to RBI during the year 2021-22. This is India Pvt. Ltd. (BNPMIPL) is `789.48 crores in the year 71.56% lower than the production of 2757 million pieces 2021-22 as compared to the Consolidated TCI of `523.78 of Circulation Coins achieved during the last year 2020- crores in the year 2020-21. 21. Production of Coins per Employee has decreased to 14.3.10In accordance with the guidelines on Capital 0.51 million pieces in 2021-22 as against 1.53 million Restructuring of CPSEs issued by the Department of pieces achieved in the last year 2020-21. The decrease Investment and Public Asset Management (DIPAM), the in the production of Circulation Coins is mainly due to Company has paid the dividend of `259.62 crores huge reduction in the indent of Circulation Coins by RBI including the Interim Dividend of `240.00 crores paid on during the year 2021-22. 25.03.2022 for the financial year 2021-22. 14.3.6 During the year 2021-22, SPM, Narmadapuram 14.3.11 During the year 2021-22, the Company has (a unit of SPMCIL) has produced 7488 Metric Ton (MT) taken-up many modernization and capacity of Security Paper and supplied 7751 MT of Security augmentation initiatives. During the year 2021-22, two Paper to the printing presses. This is 9% higher than new state-of-the-art banknote printing and finishing lines the production of 6870 MT of Security Paper during the comprising of Offset, Intaglio, Numbering, Finishing last year 2020-21. Production of Security Paper per machines and WSRTP plant (one each at CNP & BNP) Employee has increased to 8.49 MT in the year 2021- have been successfully commissioned and made 22 as against 7.35 MT achieved during the previous operational at both Currency Presses of SPMCIL. Also, year 2020-21. two additional Intaglio machines (one each at CNP & 14.3.7 SPMCIL has produced 450 Metric Ton (MT) of BNP) have been successfully commissioned and made Security Inks at Ink Factory, Dewas and supplied 547 operational at both Currency Presses. IGM, Hyderabad Metric Ton Inks to printing presses during the year has installed & commissioned XRF spectrometer 2021-22. This is 25% lower than the production of 600 machine which is used for the determination of the MT of Security Inks during the last year 2020-21. chemical composition of materials including Gold & Production of Security Ink per Employee has decreased Silver. IGM, Noida has upgraded its electrical substation to 7.50 MT in the year 2021-22 as against 8.96 MT to ensure continuous and stable supply of electricity. achieved during the previous year 2020-21. IGM, Kolkata has successfully installed & commissioned 14.3.8 SPMCIL has produced 8.30 million pieces of Multi Colour Medal Press used for coloring different travel documents/passport booklets and supplied 8.44 types of medal designs as per the requirement of the million pieces travel documents/passport booklets to customer. ISP, Nashik has installed Sequential/Non- Ministry of External Affairs (MEA) during the year 2021- Sequential (Random) Numbering Machine. In this 22. This is 35% higher than the production of 6.15 million machine there are two numbering stations on which pieces of travel documents/ passport booklets during the sequential and non-sequential (both types) numbering year 2020-21. SPMCIL has also produced 311.68 million as well as printing of State name can be done on Non- pieces of Non-Judicial Stamp Papers (NJSPs) and Judicial Stamps and India Court Fee Stamps of different supplied 303.22 million pieces NJSPs to various State denominations of different States. SPP, Hyderabad has Governments during the year 2021-22. This is 29.17% done Retrofitting of equipment for online post printing higher than the production of 241.29 million pieces of operations of Excise Adhesive Labels on Rotatek-III. NJSPs during the year 2020-21. SPP, Hyderabad has also installed 2 nos. Automatic 14.3.9 The Revenue from Operations of the Company programmable perforating machines to increase has decreased to `4086.63 crores in 2021-22 from production of CPS and CFS stamps. As a part of e- `4712.57 crores in the previous year 2020-21. The Passport project, ISP, Nashik has manufactured and decrease in revenue is due to reduction in indent of supplied the International Civil Aviation Organization products by the customers. Total expenditure for the year (ICAO) standard compliant e-Passport sample booklets 2021-22 is `3388.00 crores as compared to `4094.00 to MEA for testing and approval. SPM, Narmadapuram crores for the year 2020-21. Profit before Tax (PBT) from has installed indigenous Shredder & Briquetting Machine continuing operations for the year 2021-22 is `880.12 which is useful for conversion of Spoil CWBN paper into crores as compared to `789.74 crores for the year 2020- Paper Briquettes. The Paper briquettes manufactured 21. The Company has achieved a Total Comprehensive are being sold through MSTC. This has resulted into Income (TCI) of `707.77 crores in the year 2021- 22 as protection of environment by avoiding burning of spoil compared to `395.99 crores during the year 2020-21. paper. 70Department of Economic Affairs I 14.3.12 The Corporate R&D Centre, Nashik has been Enterprises (DPE) for giving preference to aspirational certified for ISO 9001: 2015-Quality Management districts, SPMCIL had adopted Barwani District of Madhya System. The Corporate R&D Centre, Nashik in Pradesh as the aspirational District. collaboration with CSIR-National Chemical Laboratory 14.3.15 Indigenization: The Joint Venture Company, has successfully developed varnish/ Coating formulation Bank Note Paper Mill India Private Limited(BNPMIPL) for post-printing treatment for anti-soiling Currency has produced 14110 MT of Security Paper during the Notes. Initiatives are being taken for incorporating year 2021-22. special treatment/technology offering antiviral, 14.4 Bharatiya Reserve Bank Note Mudran Private antibacterial and antifungal properties for Indian Limited (BRBNMPL) banknotes during paper manufacturing process. The Scanning Electron Microscope (SEM) has been 14.4.1 Bharatiya Reserve Bank Note Mudran Pvt Ltd successfully commissioned and made operational at (BRBNMPL) was established by Reserve Bank of India Corporate R&D Centre, Nashik. SEM is high-end as its wholly owned subsidiary on 3rd February 1995 with technology used for elemental Analysis for advanced a view to augmenting the production of banknotes in India forensic examination of banknotes and security features. to enable RBI to bridge gap between supply and demand The equipment is also being utilized for Research and for bank notes in the country. The Company has its bank Development activities related to all Units of SPMCIL. notes manufacturing units at Mysuru, Karnataka and The Ink Factory, Dewas in collaboration with CSIR- Salboni, West Bengal and its Corporate Office at National Physical Laboratory (NPL) has successfully Bengaluru, Karnataka. The present total capacity for both developed 5 GM lab scale sample of Colour Shift Intaglio the presses is 16 billion note pieces per year in a 2-shift operation. (CSI) Ink pigment used for printing of higher denomination of Banknotes. Further, facility for creation 14.4.2 Paper and Ink are the most critical raw materials of mass scale production of CSI ink is under process. used for banknote production. These two raw materials IGM, Kolkata has carried out the project for separation costs approximately 65% of the total production cost. In of cutting oil from water through salting out process. the global banknote production industry, most of the This has resulted into conservation of water and savings countries depend on external sources for paper and ink. in cost of disposal of cutting oil through WBWML. The But, the green field project initiated by BRBNMPL for Company is collaborating with Government IITs/CSIR setting up a new paper mill at Mysuru (Bank Note Paper laboratories for latest technology up-gradation in Mill India Pvt Ltd (a Joint Venture between BRBNMPL currency, coins and security paper. and SPMCIL) and its brown field project of Varnika (in- house Ink Manufacturing Unit) at Mysuru has brought 14.3.13The Manpower Strength of the Company has Indian Currency Printing Industry to its self-reliance and come down to 6454 as on 31.03.2022 which includes to stand ahead of global banknote printers. 352 Executives, 940 Supervisors and 5162 Office staff & Workers working in 9 Units and Corporate Office in 14.4.3 Colour Shift Intaglio Ink (CSII), one of the security comparison to previous year's employee strength of 7234. features used in the Indian banknotes earlier out-sourced, Training and retraining of employees to upgrade their is now being manufactured at In-house Ink Manufacturing functional skills and expertise along with development of Unit of BRBNMPL at Mysuru. BRBNMPL is supplying their soft skills and group dynamics are thrust areas for entire requirement of CSII to both BRBNMPL and SPMCIL the Company. presses and this has put an end on our import dependency and huge cost efficiency. 14.3.14SPMCIL has taken-up many CSR projects in the areas of education, healthcare, disaster management, 14.4.4 Colour Shift Pigment (CSP), which is one of the protection of national heritage including restoration of raw materials required for manufacturing of CSII, was historical building, measures for benefit of armed force earlier procured from the foreign source. Presently CSP veteran, war widows and their dependents etc. in the year is being procured at a ratio of 50:50 from domestic and 2022. Under the Gram Uday Scheme, BNP, Dewas had foreign sources finalized through tender. Further adopted Kawaria village and SPM, Narmadapuram had backward integration for Manufacturing of Colour Shift adopted Chatua village for implementing projects under pigment has already been initiated, under Make-in-India CSR. As per the instructions of Department of Public initiative. 71Annual Report 2022-2023 14.4.5 Indigenization - Status of Indigenization is as under: Financial Year 2018-19 2019-20 2020-21 2021-22 (in crores) Total Consumption – Imported 797.06 388.64 287.42 146.93 (in crores) Total Consumption - 1086.93 1411.33 1173.73 1180.08 Indigenous (in crores) Total consumption 1883.99 1799.97 1461.15 1327.01 (Import+Indigenous) (in crores) Import % in total consumption 42.31% 21.59% 19.67% 11.07% Indigenous % in total 57.69% 78.41% 80.33% 88.93% consumption 14.4.6 BRBNMPL has increased direct remittance of inventory management and control on the movement of banknotes to currency chests which enhances logistical people. efficiency and cost effectiveness to RBI. Number of direct 14.5.3 The Company has been taking various initiatives remittances dispatched to Currency chest during the FY to inculcate a culture of continuous improvement in its 2022-23 (as on 31/12/2022) is 53% (231 direct processes by adopting latest technology to reduce cost remittances out of total 439 remittances). of manufacturing. Some of the important measures like 14.4.7 BRBNMPL is certified with ISO 45001:2018 power purchase from Indian Energy Exchange (IEX), Occupational Health and Safety Management System Reducing and optimizing power demand, Upgradation of apart from ISO 9001:2015 Quality Management System online quality monitoring system to reduce manual and ISO 14001:2015 Environmental Management monitoring, upgrading water filtration system, improving System. washing and flushing system of process lines, developing special machine parts indigenously, developing Indian 14.4.8 BRBNMPL is establishing a state-of-the-art sources for security features, recycling of process water Learning and Development Centre (LDC) at Mysuru to and achieving Zero effluent discharge etc., have cater to the learning needs of all stakeholders in currency contributed towards reduction of manufacturing cost. Due eco system and to carry out process related innovation. to efforts undertaken towards environmental protection 14.4.9 A state-of-the-art facility is being established at BNPM has been able to recover recycle and reuse every Mysuru under the aegis of RBI for conducting cutting edge drop of rain water/seepage water in the campus during research to test the robustness of security features of the year 2021-22. The Company has also initiated steps banknotes and introduction of new security features. towards research and Development with the support of 14.5 Bank Note Paper Mill India Private Limited ICARCIRCOT, Mumbai, SITRA, Coimbatore, and CPPRI (BNPMIPL) Saharanpur to improve its processes. During the year the Company has received national awards for safety 14.5.1 BNPMIPL was incorporated as a 50:50 Joint from National Safety Council, CII National award for Venture Company between SPMCIL and BRBNMPL in Excellence in Water Management, Dasara award for Best the year 2010 at Mysuru to manufacture bank note paper (CWBN Paper) indigenously. The Company has installed Industrial Garden. The Company was awarded with two two line of paper mills having an installed capacity of safety awards from Department of Factories & Boilers, 12000 MT per year. Industrial safety and Health for best package Boilers and best Safe Industry (Large Scale industry category) in the 14.5.2 During the year 2021-22, BNPMIPL has previous year indicates commitment for continuous produced 14110 MT of CWBN Paper (118% of the improvement culture. installed capacity) and supplied 13907 MT of CWBN Paper to all the four banknote printing presses to meet 14.5.4 Under the Corporate Social Responsibility (CSR), their entire requirement of paper to print Indian banknotes. BNPMIPL has been contributing in the areas of rural The Company is ISO 9001:2015, ISO 14001:2015 and education, women empowerment, rural health, supporting ISO 45001:2018 certified for quality management, orphanage, protection of heritage, supporting physically environment management and health and Safety challenged, wildlife conservation, disaster relief, public management systems respectively. The Company has health and hygiene, supporting local bodies for urban also implemented an ERP system for all accounting, sanitation, medical aids to the poor etc. 72Department of Economic Affairs I Annexure-I Representation of SCs, STs, and OBCs Number of Appointments made during the previous calendar year Groups Representation of SCs/Sts/ By Direct Recruitment By Promotion By Other Methods OBCs (As on 31.12.2022) (Internal Recuritment) Total SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs OBCs No.of Employees 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Group 'A' 367 55 18 79 7 0 1 1 32 5 3 0 0 0 0 Group 'B' 944 147 77 193 65 6 4 17 69 9 2 2 2 0 0 Group 'C' 4736 924 432 825 75 10 1 28 540 95 45 25 9 2 8 Total 6047 1126 527 1097 147 16 6 46 641 109 50 27 11 2 8 Annexure-II Representation of Persons With Disabilities Number of Appointments made during the previous calendar year Representatiion DIRECT RECRUITMENT PROMOTION (As on 31.12.2022) Groups 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 No. of Employees 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Group A 91 0 1 1 1 0 0 2 1 0 0 0 0 0 0 0 0 0 Group B 431 1 0 13 0 1 1 16 0 0 1 0 0 0 22 0 0 2 Group C 1779 15 39 87 3 0 0 26 1 0 0 0 0 0 170 2 8 4 Total 2301 16 40 101 4 1 1 44 2 0 1 0 0 0 192 2 8 6 73Annual Report 2022-2023 15. Other Multilateral Institutions (OMI) incomes, and special funds. India has so far pledged USD Division 258 million to IFAD's Resources in various replenishment cycles including USD 47 million as a core grant in IFAD The Other Multilateral Institutions (OMI) Division 12 (2022-24). Apart from this, India also pledged an was created in 2018. This Division has been assigned amount of USD 20 million each as Concessional Partner with the responsibility of eight (8) Multilateral Development Loan (CPL) in IFAD 11 and IFAD12. Banks (MDBs) viz., Asian Infrastructure Investment Bank (AIIB), New Development Bank (NDB), International Fund 15.1.5 IFAD's Investment Operation in India: for Agricultural Development (IFAD), European Bank for 15.1.5.1 India has received funding from IFAD for projects Reconstruction and Development (EBRD), African in rural development, tribal development, women's Development Bank (AfDB), Inter-American Development empowerment, and micro-finance. Since 1979, IFAD has Bank (IDB), Caribbean Development Bank (CDB), and assisted in 32 projects in agriculture, rural development, OPEC Fund for International Development (OFID). tribal development, women's empowerment, natural In addition, the Division has been assigned with the resources' management, and rural finance sector with a sectoral charges of seven Ministries/Departments viz. commitment of USD 1,207.8 million (approx.). Out of Ministry of Women and Child Development, National these, 26 projects have already been closed. Presently, Commission for Women, Ministry of Rural Development, 6 projects with a total assistance of USD 366.35 million Ministry of Panchayati Raj, Department of Water (approx.) in the States of Uttarakhand, Maharashtra, Resources, River Development and Ganga Rejuvenation, Odisha, Nagaland, Mizoram, Meghalaya & Chhattisgarh Department of Science and Technology and Council for are under implementation. Scientific and Industrial Research. The Division has also 15.2 Asian Infrastructure Investment Bank (AIIB) been assigned with the works related to four States 15.2.1 The Asian Infrastructure Investment Bank (AIIB), namely, Punjab, Haryana, Rajasthan, and Goa. an MDB headquartered in Beijing, China, began its 15.1 International Fund for Agricultural operations in January 2016 with 57 founding Members Development (IFAD) focusing on investments in infrastructure to foster 15.1.1 The IFAD is a specialized agency of the United sustainable economic development in Asia and beyond. Nations. It was set up as an international financial The bank has now grown to 106 members in seven years institution in 1977 to support agricultural development of operations, and became the world's second-largest primarily for food production in developing countries. It MDB in terms of members. has supported projects that have reached millions of AIIB Mission people in the world including more than 6.34 million  Green Infrastructure: AIIB intends to prioritize green households in India. At present, IFAD has 177 member infrastructure and support its members meet their of Countries including India as a founder member. environmental and related development goals by 15.1.2 India's Representation at IFAD: financing projects that deliver local environmental 15.1.2.1 IFAD is headed by the President elected by its improvements and investments dedicated to climate member countries for a four-year term. It has two main action. governing bodies viz. the Governing Council and the  Connectivity and Regional Cooperation: AIIB Executive Board. India represents IFAD on the Governing prioritizes projects that facilitate better domestic and Council by Secretary (EA) as Governor and Additional cross-border infrastructure connectivity within Asia and Secretary (OMI) as Alternate Governor. Director (OMI) beyond. The AIIB supported projects also complement represents India as the Director on the IFAD Executive cross-border infrastructure connectivity by generating Board. direct measurable benefits across the countries. 15.1.3 IFAD Governing Bodies meetings in 2022-23:-  Technology-enabled infrastructure: AIIB supports 15.1.3.1 The 12th special session, 135th, 136th and 137th projects where the application of technology delivers sessions of the IFAD Executive Board were held in better value, quality, productivity, efficiency, resilience, February, April, September, and December 2022 sustainability, inclusion, transparency or better respectively. India was represented in these sessions by governance along the full project life cycle. the AS /Director (OMI) in the IFAD Executive Board. The  Private Capital Mobilization: AIIB supports projects 45th Governing Council meeting of IFAD was held on 16th that directly or indirectly mobilize private financing February, 2022 in which AS (OMI) represented GoI who into sectors within its mandate. was the Alternate Governor from India in the IFAD GC. Shareholding in AIIB 15.1.4 India's contribution to IFAD:- The Authorized Capital Stock of the bank is 15.1.4.1 IFAD funds are derived from member USD100 billion, divided into 1 million shares of contributions (made in replenishment cycles), investment USD100,000 each. The paid-in capital of the bank is 74Department of Economic Affairs I maintained at 20 percent (USD 20 billion), while the education. This financing also includes 4 projects totaling remaining 80 percent is the callable capital. Currently, USD 2.25 billion towards Economic Resilience and the bank has subscribed 96.76 percent of its capital stock, COVID-19 response. which is allocated based on the size of each member India's Representation at AIIB country's economy. India plays a key role in the Board of Governors The five largest shareholders in AIIB are China, (BoG) and Board of Directors (BoD) in AIIB. The Finance India, Russia, Germany, and Republic of Korea. About Minister represents India as the Governor while the 83 percent of shares are held by members rated Secretary (EA) as the Alternate Governor on the BoG. investment grade and above. India is the second largest Additional Secretary (OMI) represents India as Director shareholder in AIIB with a subscribed capital of USD 8.37 while Director (OMI) as the Alternate Director on the BoD. billion (8.6 percent of the capital stock of AIIB)- paid-in During 2022-23, Indian representatives participated in capital amounts to 20 percent while the remaining 80 more than 40 Board events including Board meetings by percent is callable capital. In terms of voting power, India virtual means. stands second with 7.6 percent of voting power (85,745). 15.3 New Development Bank (NDB) AIIB's Institutional Developments 15.3.1 The New Development Bank (NDB) is an MDB  Permanent Observer Status in UNGA: AIIB has been established by Brazil, Russia, India, China, and South granted Observer Status in the UN General Assembly Africa in 2014 with the objective to mobilize resources on December 20, 2018. Granting of Observer status for infrastructure and sustainable development projects has put the Bank on a par with more than ninety other in BRICS and other emerging market economies and organizations which enjoy Observer status; developing countries (EMDCs), and started its operation in February, 2016.  AAA credit rating: The Bank has maintained the 'AAA' credit rating over the last three years from all Shareholding and Membership in NDB the premier credit rating agencies including Standards The authorized capital of the Bank is up to USD and Poor, Moody's, and Fitch Ratings 100 billion of which USD 50 billion were subscribed initially by founding members (BRICS). The ratio of the bank's  Membership: The AIIB has now grown to 106 paid-in to callable capital remains at 20:80. As on date, members in seven years of operations, and became about 51.50 percent of NDB's total authorized capital has the world's second-largest MDB in terms of members. been subscribed.  Corporate Strategy: The AIIB has completed its start- With the admission of the UAE, Uruguay, up phase, and developed its first Corporate Strategy Bangladesh, and Egypt as new members, the NDB has targeting 50 percent of climate finance by 2025, 50 grown to nine members. Bangladesh and UAE deposited percent of private sector financing of its actual their instruments of accession by effecting their approved financing and financing 25-30 percent for membership, while Uruguay and Egypt remained as cross-border connectivity projects by 2030. prospective members of the bank. With the change in AIIB's Lending Activities the bank's membership, each founding member has the The bank's Investments are based on sovereign shareholding of 19.42 percent, while Bangladesh and the and non-sovereign loans, equity participations and UAE the newly joined members have 1.83 percent and guarantees. AIIB's financing of sustainable infrastructure 1.08 percent of shareholding, respectively. India has paid is demonstrated by its investment in projects related to USD 2 billion as paid-in capital to NDB in seven the mitigation of the impact of climate change, climate installments. adaptation, and other environmental objectives. NDB's Regional Office in India: The AIIB has approved financings of USD 38.81 To strengthen its operations, NDB has billion in 34 countries for 202 approved projects as of established Regional Offices in South Africa, Brazil, and January, 2022. These financings cover sectors like Russia, while the Indian Regional Office (IRO) has been energy, transport, water, urban, digital infrastructure and full-fledged operational since December 2022 from technology, rural infrastructure and agriculture Gujarat International Finance Tec-City (GIFT City) in development, education, economic resilience, COVID- Ahmedabad. The IRO is expected to be instrumental in 19 response, public health, etc. effective and timely preparation and implementation of the projects in India. As of January, 2023, India is the AIIB's largest receiver of approved financing with 27 Sovereign projects India's Representation at NDB amounting to USD 8.3 billion across various sectors viz. India represents NDB at the BoG and BoD levels. energy, transport, water, urban, public health, and The Finance Minister represents India as the Governor 75Annual Report 2022-2023 while the Secretary (EA) as the Alternate Governor on Société Internationale Financière pour les the BoG. Additional Secretary (OMI) represents India as Investissements et le Développement en Afrique the Director while Director (OMI) is the Alternate Director (SIFIDA), the Association of African Development in the BoD. During 2022-23, India participated in more Finance Institutions (AADFI), and Shelter-Afrique. than 35 Board events including Board meetings by virtual iv. All 81 AfDB members (54, RMCs & 27, NRMCs) are means. grouped into 20 constituencies (13 regional and 7 NDB's Investment operations in India non-regional). India had joined the Nordic India is the second largest recipient of NDB Constituency comprising Norway, Sweden, Finland, financing. India has been received funding from NDB for Denmark, and Ireland. projects in power, water, transport, public health, v. India was allotted a total of 41,475 shares and holds sustainable development, and the social sector. Since 0.287 in AfDB and in ADF has 0.178 percent voting 2016, NDB has approved 24 projects in the amount of share. India participates in the BoG meetings which USD 7. 5 billion (approx.) of which 22 projects in the are held annually and raises concerns during the BoD amount of USD 7.1 billion are sovereign-backed and 2 meetings via our constituency. India is represented projects in the amount of USD 400 million are non- in the Board of Governors by Hon'ble Finance Minister sovereign backed. This includes USD 2.00 billion in of India and the Alternate Governor is the Secretary recoveries (of the USD 10 billion for all 5-member of the Department of Economic Affairs, Ministry of countries) of assistance to India towards COVID-19 Finance. support and economic resilience.  As of December 2022, India has pledged `601.9 15.4 African Development Bank (AfDB) crore (till ADF-15). 15.4.1 The AfDB Group is a regional multilateral  ADF-16 India has pledged `152.64 crore, as pure development finance institution established to contribute grant. (`3.69 crore as grant compensation) to the economic development and social progress of African countries that are the institution's Regional  About `35.66 crore have been contributed towards the Multilateral Debt Relief Initiative Member Countries (RMCs). The AfDB was founded (MDRI) of ADF. following an agreement signed by member states on August 14, 1963, in Khartoum, Sudan, which became 15.5 European Bank for Reconstruction and effective on September 10, 1964. The AfDB comprises Development (EBRD) three entities namely the African Development Bank 15.5.1 EBRD, headquartered in London was established (ADB), the African Development Fund (ADF), and the in 1991 to help the erstwhile economies of Central and Nigeria Trust Fund (NTF). The AfDB headquarters is Eastern Europe reconstruct their economies in the post- officially in Abidjan, Côte d'Ivoire. Cold War era, evolve into open, market-oriented i. The Bank comprises 54 African countries known as economies, committed to the principles of multiparty regional member countries (RMCs) and 27 Non- democracy and pluralism. EBRD works in more than 30 African countries known as non-regional member countries from Central Europe to Central Asia and countries (NRMCs). To become an AfDB member, Southern and Eastern Mediterranean. The EBRD is the non-regional members must first accede to ADF only Bank among MDBs that focuses mainly on the non- membership. When the African Development Bank sovereign operations EBRD has an explicitly political (AfDB) was established, only independent African mandate: firstly, to support democracy-building activities. countries were eligible to be shareholders of the Second, the EBRD does not have a concessional loan Bank, and later in 1982, the memberships were window. To date, the Bank has 70-member countries, as opened to Non-African Countries. well as the European Union and the European Investment Bank. India had joined the EBRD in July 2018 as its 69th ii. India joined the Bank on December 6, 1983. The shareholder and currently holds 0.033 percent Fund comprises, to date, 29 contributing countries shareholding in the Bank. India is part of the Portugal (26 from NRMs and 3 from RMCs/State participants) Constituency in EBRD, which comprises Portugal, and benefits 38 countries. Greece, and San Marino. India paid Euro 1.79 Million iii. The ADB group of financing bodies includes the (14.74 Cr INR) towards its paid-up portion and has an African Development Fund, which grants interest-free initial subscription of 986 shares. India became a member loans to impoverished African countries, and the of the Bank, comprising 179 paid-in shares and 807 Nigeria Trust Fund. The ADB has five associated callable shares. India is represented in the Board of institutions through which public and private capital Governors by Hon'ble Finance Minister of India and the is channeled: the African Import-Export Bank, the Alternate Governor is the Secretary of the Department of Africa Reinsurance Corporation (Africa-Re), the Economic Affairs, Ministry of Finance. 76Department of Economic Affairs I 16. Infrastructure Support and Major Policy Initiatives/ Achievements of PIU Development Division (ISD Division) 1. Financial support to Public Private Introduction : Partnerships in Infrastructure (VGF Scheme) The Department of Economic Affairs (DEA) Infrastructure Support and Development Division, launched the Viability Gap Funding (VGF) scheme for a part of Infrastructure Finance Secretariat in DEA, deals providing financial assistance to financially unviable but with initiatives for promotion of investment in infrastructure socially/ economically desirable PPP projects. Under this development in the country, creation of an enabling scheme, economic sector projects may get up to 40% of environment for private sector investment in infrastructure the Capex as VGF grant. The VGF Scheme includes through Public Private Partnerships (PPPs), etc. The higher provisions of VGF grant for social sectors i.e., division is headed by a Joint Secretary. The Division has Health, Education, Water Supply, Waste Water the following Units: Private Investment Unit, Energy Unit Treatment, Solid Waste Management, etc. Social sector and NIP Facilitation Unit. Each Unit is headed by a projects may get up to 80% of the Capex and upto 50% Director/Deputy Secretary and assisted by Under of Opex for 5 years after Commercial Operation Date Secretary/ Deputy Director. (CoD) as VGF grant. Social Sector projects get VGF grant under following two categories: Private Investment Unit (PIU) a) Sub scheme -1 caters to Social Sectors such Major Functions of PIU, inter alia, include the following: as Wastewater Treatment, Water Supply, Solid 1. Matters relating to appraisal and approval of Waste Management, Health & Education sectors Central sector PPP projects. etc. The projects eligible under this category 2. Matters and proposals relating to clearance by should have at least 100% Operational Cost recovery. The Central Government will provide Public Private Partnership Appraisal Committee maximum of 30% of Capex of the project as VGF (PPPAC) and State Government/Sponsoring Central 3. Matters and proposals relating to the scheme for Ministry/Statutory Entity may provide additional Financial support to Public Private Partnerships support up to 30% of Capex. in Infrastructure Viability Gap Funding (VGF) b) Sub scheme -2 supports demonstration/pilot Scheme social sectors projects. The projects may be from 4. Matters and proposals relating to the scheme for Health & Education sectors. The projects eligible India Infrastructure Project Development Fund under this category should have at least 50% (IIPDF). Operational Cost recovery. The Central Government will provide a maximum of 40% of 5. Developing Multi-pronged and innovative the Capex of the Project and a maximum of 25% interventions and support mechanisms for of Opex of the project for first five years of facilitating PPPs in the country, including commercial operations as VGF. The State Technical Assistance and programmes from Government/Sponsoring Central Ministry/ bilateral/multilateral agencies on mainstreaming Statutory Entity may provide additional support PPPs and support to State and local up to 40% of the Capex of the Project and upto governments. 25% of Opex of the project for first five years of commercial operations. 6. Managing training programs, strategies, exposures for capacity building for PPPs and In the year 2022-23 (till December, 2022), under other matters relating to institution building for the Scheme for support to Public Private mainstreaming PPPs. Partnerships in Infrastructure, 4 projects amounting to a TPC of `29,023.97 Crore were 7. All International interfaces on PPPs & other granted In-Principle Approval and 3 projects were matters concerning PPPs including BRICS granted final approval with a TPC of `11,574.59 Taskforce on PPP and Infrastructure. Crore with a Viability Gap Funding approval of 8. Matters relating to management of PPP related `2,050.25 Crore. The total amount of VGF information, including www.pppinindia.gov.in and disbursed under the scheme in the FY 2022-23 infrastructureindia.gov.in. (till January 2023) by DEA is `9.41 Crores. 77Annual Report 2022-2023 2. Public Private Partnership Appraisal 5. PPP Policy-related matters Committee (PPPAC) In order to ensure smooth functioning of PPP The Public Private Partnership Appraisal projects, DEA is preparing various policy documents such Committee (PPPAC) is the apex body for appraisal of as Model Concession Agreement (MCAs) for nascent PPP projects in the Central Sector. The streamlined sectors like Solid Waste Management, Sports etc., appraisal mechanism for PPP projects ensures speedy revising Model RFP, PPP Procurement Manual, appraisal of projects, eliminates delays, adopts revamping PPP structuring toolkits etc. A workshop with international best practices and promotes uniformity in PPP Stakeholders –both public and private was also appraisal mechanism and guidelines. The PPPAC is organised to share best practices and key learning and chaired by Secretary, DEA with Secretaries of Department come up with solutions to the problems. of Expenditure, Department of Legal Affairs, the 6. Handholding/Support initiatives Sponsoring Central Ministry/Department and CEO, NITI Aayog as members to consider and appraise the To handhold State Governments in PPP matters, proposals for Central Sector PPP Projects. In the year two workshop were organised with State Governments 2022-23 (till January, 2023), Public Private Partnership and Transaction Advisers to disseminate knowledge on Appraisal Committee has appraised 7 projects with a Total VGF Scheme. In addition, a hands-on workshop was Project Cost of `14,026.45 Crore. organised with State Governments to help them understand PPP structuring toolkit. 3. Financial Support for Project Development Expenses of PPP Projects (IIPDF Scheme) Till December’ 22, three chapters of state outreach workshops have been conducted at Mumbai, The very success of PPP projects depends on Chandigarh and Varanasi with participation from a total how well the project is structured. Since PPP projects of 14 States and Union Territories (Uttar Pradesh, Bihar, are complex in nature, conceiving a project demands Madhya Pradesh, Chattisgarh, Himachal Pradesh, expertise of experienced professionals in the field Uttarakhand, Punjab, Maharashtra, Gujarat, Karnataka, (Transaction Advisers). Generally, hiring of transaction Andhra Pradesh, Chandigarh, Jammu & Kashmir, and advisers for project development involves substantial Ladakh). costs and many times Project Sponsoring Authorities (PSAs)face financial crunch in financing this cost. Thus, Energy Unit Department of Economic Affairs (DEA) has launched the Major functions of Energy Unit, inter alia, include the IIPDF Scheme on 03.11.2022 as a Central Sector following: Scheme for funding such project development expenses. 1. All policy related issues pertaining to energy IIPDF Scheme provides necessary support to the sector viz. Petroleum and Natural Gas, Coal, PSAs, both in the Centre and the State Governments, by Atomic Energy and New & Renewable Energy. extending financial assistance in meeting the cost of transaction advisory services engaged in the development 2. Sectoral Charge of M/o Petroleum and Natural of PPP projects. Funding under IIPDF Scheme can be Gas, M/o New and Renewable Energy, M/o Coal, for a maximum amount of `5 Crore for a single proposal. Dept. of Atomic Energy and Dept. of Space. Any funding requirement over and above `5 Crore may 3. Examination of the investment proposals in be borne by the PSAs. Under this scheme, DEA has energy sector requiring the approval of Cabinet/ approved three proposals in the FY 2022-23 (till January, CCI/CCEA/CoS/PIB/EFC for their viability and 2023) with total funding of `7.5 Cr. justification. 4. Empanelment of Transaction Advisors 4. All matters relating to Power Sector (including To create an enabling environment for stepping Policy, Projects, DCNs/CCEA Notes/EFC/SFC, up of private investment in infrastructure and to cater to etc.). State Governments demand, DEA has empanelled 12 5. Internal territorial charge of Chhattisgarh, transaction advisors for PPP projects to provide Maharashtra, Gujarat and Madhya Pradesh. necessary support to project sponsoring authorities in 6. External territorial charge of Iran, Iraq, Cyprus. transaction of PPP projects. The objective of empanelling TAs is to provide access to quality advisory support for 7. Examination of proposals for grant of viability gap PPP projects. This would help the Project Sponsoring funding under the National Clean Energy Fund Authorities to appoint TAs without delay. (NCEF). 78Department of Economic Affairs I 8. Matters relating to OPEC Fund for International Gasification Projects of Government PSUs & Development (OFID). Scheme of Exploration of Coal and Lignite over FFC Cycle. 9. Matters related to Committee on Allocation of Natural Resources (CANR). NIP Facilitation Unit (NIP FU) Major Policy Initiatives/ Achievements: Major functions of NIP FU, inter alia, include the 1. Energy Unit is also acting as a secretariat of the following: Monitoring Committee (MC) set up to review the  Engagement with States in the implementation implementation status of the recommendations of National Infrastructure pipeline (NIP) of the Committee on Allocation of Natural  Handholding assistance to States for PPP project Resources (CANR). A periodic review and follow structuring and development. up is going on with concerned Ministries/  Putting process enablers of PPP in Infrastructure. Department to ensure implementation of these recommendations.  Monitoring of performance of Ministries/ Departments on National Monetisation Pipeline 2. In the year 2022, helped ECoS setup by M/o Coal (NMP); regarding adoption of methodology for auction  General reform Initiatives for creating an enabling of coal and lignite mines/ blocks to approve 9 eco system for increased private sector coal mines to be offered for sale of coal through participation in infrastructure development; auction.  County Charge of West Asian Countries- Iran, 3. Continuous engagement with Gulf countries (i.e., Armenia, Azerbaijan, Cyprus, Georgia, Israel, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, Turkey, Jordan, Lebanon, Palestine, Syria, UAE and Iraq) or investment and other matters Yamen, etc. including liaison with various Sovereign Wealth  State charge of Maharashtra and Gujrat Funds from Gulf countries (such as Public Investment Fund (Saudi Arabia), Abu Dhabi  Co-ordination work within the Division, etc; Investment Authority (ADIA) & Mubadala (UAE) Major Policy Initiatives/ Achievements of NIP FU & Qatar Investment Authority (QIA), Qatar. Public 1. National Infrastructure Pipeline (NIP) Investment Fund (Saudi Arabia), Qatar Holding NIP which had started with 6835 projects has LLC & INQ Holding LLC (two wholly owned since expanded to around 9000 projects. NIP projects subsidiaries of QIA) are notified as SWF under showcase the infrastructure investment opportunities in Section 10(23FE) of Income Tax Act. the states/UTs to domestic and global investors. 4. During the year, Energy Unit had handled Six Continuous engagement with states/UTs were made to Cabinet/ CCEA notes from the line Ministries/ improve NIP performance in the States. Project status Departments. In addition, three PIB proposals, Snapshots of all states/UTs were prepared and shared seven EFC proposals and one SFC proposal with states/UTs for review and further improvement. have been examined during the year. These were 2. National Monetisation Pipeline (NMP) Cabinet/ CCEA Notes on such as Grant to PSU In the year 2021-22, as against monetization Oil Marketing Companies for under-recoveries target of 0.88 lakh crore, transactions with monetisation in domestic LPG, Trusted Vendor System for Power Sector, equity investment by Coal India, value of `0.97 lakh crore was achieved. For the year listing of shares of Bharat Coking Coal Limited, 2022-23, a target of `1.62 lakh crores is envisaged under etc. Energy Unit also handled PIB/EFC/SFC the NMP. In order to ensure performance of NMP, regular notes on Green Energy Corridor Phase-II-Inter review meetings on NMP are chaired by the finance State Transmission System in Ladakh, Sawalkot minister and Cabinet Secretary. HE Project in J&K by NHPC Ltd, and providing 3. Enabling Eco-system and process enablers Additional Financial Contribution to ISA. Various initiatives of enabling eco-system and 5. Energy Unit helped line ministries/ departments process for PPP have been undertaken like preparation in structuring various schemes such as PMUY, of Guidebook on Waterfall Framework for selection of operationalisation of Power System Development project implementation mode, Post Award Contract Fund, VGF scheme for development of Battery Management (PACM) toolkits, revamping of project Energy Storage Systems, PLI Scheme for Coal preparation toolkits, Project Renegotiation framework, etc. 79Annual Report 2022-2023 Annexure-I DEPARTMENT OF ECONOMIC AFFAIRS (MAIN) Representation of SCs, STs, and OBCs Groups Number of Employees Number of appointments made during the previous year i.e. 2022 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 119 17 03 07 0 0 0 0 0 0 0 02 0 0 Group B 234 37 31 49 03 01 0 01 07 03 0 0 0 0 Group C 201 68 06 27 15 02 02 04 05 01 0 0 0 0 TOTAL 554 122 40 83 18 03 02 05 12 04 0 02 0 0 Annexure-II DEPARTMENT OF ECONOMIC AFFAIRS (MAIN) Representation of Persons With Disabilities (PWD) DIRECT RECRUITMENT PROMOTION Group 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 119 - - 01 - - - - - - - - - - - - - - Group B 234 - - 03 - - - - - - - - - - - - - - Group C 201 - - 04 - - - 01 - - 01 - - - 04 - - - Total 554 - - 08 - - - 01 - - 01 - - - 04 - - - Annexure-I NATIONAL SAVINGS INSTITUTE Representation of SCs, STs, and OBCs Groups Number of Employees Number of appointments made during the previous calender year 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 - - - - - - - - - - - - Group B 16 2 - 4 - - - - - - - - - - Group C 30 6 3 9 - - - - - - - - - - Group D - - - - - - - - - - - - - - (Excluding Safai Karamcharis) Group D (Safai Karamcharis) - - - - - - - - - - - - - - TOTAL 49 9 3 13 - - - - - - - - - - 80Department of Economic Affairs I Annexure-II NATIONAL SAVINGS INSTITUTE Representation of Persons With Disabilities (PWD) DIRECT RECRUITMENT PROMOTION Group 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 - - - - - - - - - - - - - - - - - Group B 16 - - - - - - - - - - - - - - - - - Group C 30 - - 1 - - - - - - - - - - - - - - Total 49 - - 1 - - - - - - - - - - - - - - Annexure-I SECURITIES APPELLATE TRIBUNAL, MUMBAI Representation of SCs, STs, and OBCs Groups Number of appointments made during the previous calendar year Representation of By Direct Recruitment By Promotion By other Methods SCs/STs/OBCs (Internal Recruitment) (As on 30.11.2022) Total No. SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs OBCs of Employees 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Group ‘A’ 06 - - - - - - - - - - - - - - Group ‘B’ 06 01 - 01 - - - - - - - - - - - Group ‘C’ 11 02 - 03 - - - - - - - - - - - TOTAL 23 03 - 04 - - - - - - - - - - - Annexure-II SECURITIES APPELLATE TRIBUNAL, MUMBAI Representation of Persons With Disabilities (PWD) Groups Number of appointments made during the previous calendar year DIRECT RECRUITMENT PROMOTION Groups Representation No. of No. of No. of No. of (AS on 30.11.2022) Vacancies reserved Appointments made Vacancies reserved Appointments made Total No. VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH of Employees 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Group ‘A’ 6 - - - - - - - - - - - - - - - - - Group ‘B’ 06 - - 01 - - - - - - - - - - - - - - Group ‘C’ 11 - - - - - - - - - - - - - - - - - Total 23 - - 01 - - - - - - - - - - - - - - 81Annual Report 2022-2023 Annexure-I SECURITY PRINTING & MINTING CORPORATION OF INDIA LIMITED (SPMCIL) Representation of SCs, STs, and OBCs Groups Number of Appointments made during the previous calender year Representation of By Direct Recruitment By Promotion By Other Methods SCs/STs/OBCs (Internal Recruitment) (As on 30.11.2022) Total No. SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs OBCs of Employees 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Group ‘A’ 367 55 18 79 7 0 1 1 32 5 3 0 0 0 0 Group ‘B’ 944 147 77 193 65 6 4 17 69 9 2 2 2 0 0 Group ‘C’ 4736 924 432 825 75 10 1 28 540 95 45 25 9 2 8 TOTAL 6047 1126 527 1097 147 16 6 46 641 109 50 27 11 2 8 Annexure-II SECURITY PRINTING & MINTING CORPORATION OF INDIA LIMITED, (SPMCIL) Representation of Persons with Disabilities (PWD) Groups Number of appointments made during the previous calendar year DIRECT RECRUITMENT PROMOTION Representation No. of No. of No. of No. of (AS on 30.11.2022) Vacancies reserved Appointments made Vacancies reserved Appointments made Total No. VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH of Employees 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Group ‘A’ 367 0 1 1 1 0 0 2 1 0 0 0 0 0 0 0 0 0 Group ‘B’ 944 1 0 13 0 1 1 16 0 0 1 0 0 0 22 0 0 2 Group ‘C’4736 15 39 87 3 0 0 26 1 0 0 0 0 0 170 2 8 4 Total 6047 16 40 101 4 1 1 44 2 0 1 0 0 0 192 2 8 6 82Department of Economic Affairs I Annexure-I INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY Representation of SCs, STs and OBCs as on date (31.12.2022) 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 64 3 2 7 42 3 2 7 1 0 0 25 0 0 2 Executive Assistants - - - - - - - - - - - - - - - Multi- Tasking Staff 3 2 - 1 - 2 - 1 - - - - - - - Total 67 5 2 8 42 5 2 8 1 0 0 25 0 0 2 Annexure-II INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY Representation of Persons with Disability (PWD) By Direct Recruitment BY Promotion Groups No. 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 64 1 0 0 1 1 0 0 42 01 0 0 0 0 0 0 0 0 0 0 Executive Assistants - - - - - - - - - - - - - - - - - - - - Multi- Tasking Staff 3 - - - - - - - - 01 - - - - - - - - - - Total 67 1 0 0 1 1 0 0 42 01 0 0 0 0 0 0 0 0 0 0 83Annual Report 2022-2023 Annexure-I Security and Exchange Board of India (SEBI) Representation of SCs, STs, and OBCs Groups No. of employees in Appointment Appointment Appointment Position (as on 30.11.2022) by Direct Recruitment by Promotion by other methods Total SC ST OBC Total SC ST OBC Total SC ST OBC Total SC ST OBC 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Officers 995 139 58 278 140 24 9 47 143 16 8 41 0 0 0 0 Secretaries 71 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 1069 140 58 281 140 24 9 47 143 16 8 41 0 0 0 0 SEBI does not classify its employees into Groups A,B,C,D. The employees of the Board are classified as follows: a) Officers (Grade A,B,C,D,E,F and Executive Directors) b) Secretaries (Secretarial Staff, accounts assistants and Library Assistants (Grades A,B,C) c) Junior Assistants d) Messenger, Cook and Driver Annexure-II Security and Exchange Board of India (SEBI) Representation of Persons with Disability(PWD) By Direct Recruitment BY Promotion Groups No. 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 995 14 8 10 - 4 6 0 140 2 1 0 - 0 0 0 143 2 2 1 Secretaries 71 1 0 0 - 0 0 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 0 0 Messenger/ Cook 2 0 0 0 - 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 Total 1069 15 8 10 - 4 6 0 140 2 1 0 - 0 0 0 143 2 2 1 SEBI does not classify its employees into Groups A,B,C,D. The employees of the Board are classified as follows: a) Officers (Grade A,B,C,D,E,F and Executive Directors) b) Secretaries (Secretarial Staff, accounts assistants and Library Assistants (Grades A,B,C) c) Junior Assistants d) Messenger, Cook and Driver 84Department of Economic Affairs I 85 SRIAFFA CIMONOCE FO TNEMTRAPED EHT NI TRAHC NOITAZINAGROChapter - 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 titled "Annual report on Pay & Allowances of Central measures for improving quality of expenditure such as Government Civilian Employees". The brochure provides through Utilisation Certificates (UC) are issued by the statistical information regarding expenditure incurred by Personnel Division. 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 of 1.8 RTI Cell Finance (MoF) receives Capital Acquisition/works 1.8.1 The Right to information Act, 2005 is implemented proposals from Ministry of Defence pertaining to Army, in its true spirit and the information required to be Navy, Air Force, DRDO and Coast Guard. These disclosed under the Act has been uploaded on the website proposals are received in MoF after tender evaluation of this Department. The Central Public Information and price negotiations are done by MoD. Ministry of Officers (CPIOs) ensure timely supply of information to Finance is not involved in the appraisal procedure of these applicants and prompt action is taken on appeals by proposals although the proposals have significant Appellate Authorities. The quarterly returns are submitted financial implications. The position of Ministry of Finance to the Central Information Commission by the RTI Cell. is also unique because a large number of proposals Suo-Moto disclosure has been made mandatory as per needing approval of CCS originating from Ministries like Orders of the Department of Personnel & Training. MEA and MHA are also examined in Ministry of Finance. It is the endeavor of Ministry of Finance to ensure that no 1.8.2 RTI Cell works in close coordination with Central duplication of assets are created for meeting similar Information Commission(CIC) and this Cell updates the security environment wherein MoD, MHA or any other quarterly report of this Department on the CIC portal in Ministry is a stakeholder. the matters of RTI and also receives hearing notices from CIC and prompt action is taken on it. During the year 1.5 Service matters pertaining to the Indian Audit and 2021-22 under the RTI Act-2005, 1202 RTI applications Accounts Service(IA&AS), Indian Civil Accounts Service and 39 appeals received in physical form and 4146 RTI (ICAS) and Indian Cost Accounts Service (ICoAS) are applications and 269 appeals received online were dealt with by this Division. Administrative assistance to disposed off in a time-bound manner. the Finance Ministers' Office is also provided by this Division. 1.9 Legal Cell 1.6 The Division also handles the overall 1.9.1 Legal cell is the 'Nodal Section' of the Department administration of the Department of Expenditure and also of Expenditure in respect of all legal matters received controls the cadre for all Central Secretariat from Central Registry of Hon'ble Supreme Court of India, 87Annual Report 2022-2023 various High Courts and Tribunals including other 2.1.2 Out of special assistance in the form of 50-year Ministries/Departments and also coordinate with the interest free loan amounting to Rs. 11,830 crore provided various branches/sections/divisions of Department of to 27 States except the State of Tamil Nadu, an amount Expenditure and also Ministry of Law & Justice for all of Rs. 2,441 crore for completing 3 out of 4 Citizen Centric court cases. Legal cell also compile the information Reforms (One Nation One Ration Card, Ease of Doing regarding pending court cases on monthly basis wherein Business, Urban Local Bodies Reforms and Power Sector Department of Expenditure is one of the respondent and Reforms) was provided to the States of Andhra Pradesh, submit the status report for the appraisal of Finance Madhya Pradesh, Goa, Punjab, Rajasthan, Himachal Secretary and Secretary (Expenditure). Legal Cell do Pradesh, Manipur, Odisha, Telangana, Tripura and overall supervision of all legal matters including monitoring Uttarakhand in the financial year 2020-21. of court cases on the LIMBS Portal for the updated entries 2.1.3 Scheme of Special Assistance to States for Capital made in LIMBS software by the concerned sections of Expenditure was extended for the year 2021-22 with an the Department of Expenditure. The parliament questions allocation of Rs. 15,000 crore including an amount of Rs. received from Department of Legal affairs (DoLA) on legal 5,000 crore earmarked for providing incentive to States matters are also being replied by the Legal cell in for privatisation/disinvestments of the State Public Sector consultation with various sections of Department of Enterprises (SPSEs) and monetization/recycling of Expenditure. assets. 1.10 Staff Inspection unit (SIU) 2.1.4 Out of special assistance in the form of 50-year 1.10.1 The Staff Inspection Unit (SIU) was set up in interest free loan amounting to Rs. 14,186 crore provided 1964 with the objectives of securing economy in the to 28 States, an amount of Rs. 539 crore was provided to staffing of Government organizations consistent with the State of Madhya Pradesh, as incentive for administrative efficiency and evolving performance privatisation/disinvestments of the State Public Sector standards and work norms in Government offices and Enterprises (SPSEs) and monetization/recycling of assets institutions wholly or substantially dependent on in the financial year 2021-22. Government Grants. The Scientific and Technical 2.1.5 The State-wise details of the total amount Organizations are not covered within the purview of the approved and released under 'Scheme for Special SIU but a Committee constituted by the Head of the Assistance to States for Capital Expenditure' in 2020-21 respective Department, with a representative from SIU and 2021-22 is given in Annexure-I. as a Core Member, conducts study of such organization. 2.1.6 Following the Union Budget Speech for 2022-23 1.10.2 The Financial Advisors (FAs) are main links between the SIU in the Department of Expenditure and Department of Expenditure, Ministry of Finance the the other Ministries / Departments / Offices / 'Scheme for Special Assistance to States for Capital Organizations. All requests for staffing studies by the SIU Investment for 2022-23' has outlined an allocation of Rs. are routed through the concerned FAs in the Departments. 1.05 lakh crore including an incentive amount of The study reports are issued after 'on the spot' work Rs.25,000 crore, in the following six areas. The Part-I of measurement study are conducted by the SIU Study team the Scheme has an allocation of Rs. 80,000 crore, which which includes discussion with the senior officials of the has been allocated amongst States in proportion to their organization and finalization of the provision as share of Tax Devolution for 2022-23. assessment report of the SIU. The final report of the 2.1.7 Under Part-I of the Scheme for Special Assistance SIU is required to be implemented by the concerned to States for Capital Investment for 2022-23, capital organization within the stipulated period of three months expenditure on capital projects amounting to Rs. 68,592 as per the instructions in this regard. crore has been approved as on 30.11.2022. Out of the 2. PUBLIC FINANCE-STATES DIVISION approved Capital Expenditure, an amount of Rs. 31,571 crore has been released to the States except the States 2.1 Scheme for Special Assistance to States for of Odisha and West Bengal. Capital Investment/Expenditure 2.1.8 Part-II (PM Gati Shakti related Expenditure) - 2.1.1 Considering the fiscal environment faced by the Rs.5,000 crore: Under Part-II of the Scheme for Special State Governments during 2020-21 due to the shortfall Assistance to States for Capital Investment for 2022-23, in tax revenues arising from the COVID-19 pandemic, capital expenditure on capital projects amounting to Rs. 'Scheme for Special Assistance to States for Capital 1,458 crore has been approved and out of approved Expenditure' with an allocation of Rs. 12,000 crore, was capital expenditure, entire amount has been released to launched in October, 2020 to assist the States in boosting the States of Andhra Pradesh, Bihar, Gujarat, capital expenditure, which has a higher multiplier effect Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, and enhances the productive capacity of the economy. Punjab, Telangana and Tripura as on 30.11.2022. 88Department of Expenditure II 2.1.9 Part-III (PMGSY) - Rs.4,000 crore: For providing of 3.5 percent of Gross State Domestic Product (GSDP) supplemental funding for priority segments including has been allowed to States for the year 2022-23. The support for the States' share. NBC of the States for the year 2022-23 has been fixed at Rs. 8,57,849 crore at 3.5 percent of GSDP of the States. 2.1.10 Under Part-III of the Scheme for Special Assistance to States for Capital Investment for 2022-23, 2.2.2 Further, States have been allowed extra borrowing an amount of Rs. 1,616 crore has been approved towards ceiling equivalent to the employer's and employee's share States' share for priority segments under RCPLWEA and of contribution of its employees pertaining to financial year PMGSY-III and out of approved capital expenditure entire 2022-23 actually deposited with the designated authority amount has been released to the States of Andhra i.e. 'National Securities Depository limited (NSDL)/ trustee Pradesh, Bihar, Chhattisgarh, Kerala, Madhya Pradesh, bank as per the guidelines of National Pension System Maharashtra and Telangana as on 30.11.2022. (NPS), over and above, the normal net borrowing ceiling of 3.5% of GSDP for the year 2022-23. 2.1.11 Part-IV (Incentive for Digitisation) - Rs.2,000 crore: The amount earmarked under this part has been allocated 2.2.3 The XV-FC has recommended performance amongst States in proportion of the result of allocation based additional borrowing space of 0.50 percent of criteria, which is based on weighted average of reforms Gross State Domestic Product (GSDP) to States in the and appropriated population criteria as recommended by power sector. This additional borrowing of 0.50 percent Ministry of Electronics and Information Technology. of GSDP is over and above the NBC. The objectives of the additional borrowing space are to improve the 2.1.12 Part-V (Optical Fiber Cable) - The amount operational and economic efficiency of the sector, and earmarked under this part has been allocated in promote a sustained increase in paid electricity proportion of result of allocation of criteria, which is based consumption. This special dispensation has been on population and areas of the States as recommended recommended for each year for a four year period from by Department of Telecommunications (DoT), Ministry 2021-22 to 2024-25. of Communications. Further, release of funds under this part is recommended by DoT based on compliance of 2.2.4 For the financial year 2021-22, additional prescribed reforms. borrowing permission of Rs. 39,175 crore was allowed to 12 States for meeting the stipulated reform criteria. 2.1.13 Under Part-V of the Scheme for Special For the financial year 2022-23 also, States are eligible Assistance to States for Capital Investment for 2022-23, for additional borrowing of 0.5% of GSDP (approx Rs. capital expenditure on capital projects amounting to Rs. 1,22,551 crore) linked to performance in power sector. 2,215 crore has been approved and an amount of Rs. The additional borrowing is allowed based on the 2,011 crore has been released to the States of Andhra recommendation of Ministry of Power after assessment Pradesh, Chhattisgarh, Goa, Haryana, Jharkhand, of the performance of the States in power sector as per Karnataka, Kerala, Madhya Pradesh, Maharashtra, the guidelines issued by the Department of Expenditure, Manipur, Mizoram, Rajasthan, Sikkim, Tamil Nadu, Ministry of Finance. Tripura, Uttar Pradesh and Uttarakhand as on 30.11.2022. 2.3 Additional central Assistance for Externally 2.1.14 Part-VI (Urban Reforms) - Rs.6,000 crore: Aided Projects Incentive under this Part of the Scheme will be provided on "First Come First Served Basis". Maximum amount 2.3.1 Additional Central Assistance (ACA) for of incentive will vary from Rs.100 crore to Rs.1,000 crore Externally-Aided Projects (EAPs) is passed on to the for different category of States. General Category States on back to back basis on the same terms and conditions on which these loans are 2.1.15 Part-VII (Disinvestment and Monetization)- received by the Union Government from donor agencies. Rs.5,000 crore: incentives to State Governments for However, in case of North Eastern and Himalayan States, privatization/disinvestment of the State Public Sector special dispensation has been made whereby they Enterprises (SPSEs) and monetization/recycling of received the assistance for EAPs in grant: loan ratio of assets. Under this Part, maximum amount of incentive is 90:10. Based on the recommendations of the Office of Rs.1,000 crore and will be provided on 'First Come First Controller of Aid, Account and Audit Division, Department Served Basis'. of Economic Affairs, an amount of Rs. 20,239.16 crore 2.1.16 The State-wise details of the total amount has been released against the total Budget Estimates of approved and released as on 30.11.2022 under Part-I, Rs. 36,002.00 crore under the ACA for EAPs during the Part-II, Part-III and Part-V of the Scheme are given in financial year 2022-23 under the demand No. 42 upto Annexure-II. 30.11.2022. 2.2 Borrowings of the States 2.4 Special Assistance to States 2.2.1 As per the recommendations of the XV-FC, NBC 2.4.1 States are empowered through the budget line 89Annual Report 2022-2023 'Special Assistance to States' for meeting spill over 2.5.4 Local Bodies grants (RLBs & ULBs): The XV-FC committed liabilities for which Budget provision is not has recommended a total grants for duly constituted local made and other need based assistance to the States. governments that sum to Rs 69,421.00 crore for the Accordingly, an amount of Rs. 4,681 crore in 2018-19, period 2022-23. The inter-se distribution of grants for local Rs. 1,624 crore in 2019-20, Rs. 1,949 crore in 2020-21 bodies among the States is based on population and area and Rs. 3,766 crore in 2021-22 were released to states in the ratio of 90:10. as Special Assistance for meeting contextual needs. Now, 2.5.5 The Commission has recommended that 60 per in the financial year 2022-23, an amount of Rs. 979 crore cent of the grants to rural local bodies and for urban local has been released (till 30.11.2022) as Special Assistance bodies in non-Million-Plus cities should be tied to to the States of Andhra Pradesh, and Arunachal Pradesh. supporting and strengthening the delivery of two The details of releases are provided in Annexure-III. categories of basic services: (a) sanitation, maintenance 2.5 Finance Commission Grants to States of ODF status (for Rural Local Bodies), solid waste management and attainment of star ratings as developed 2.5.1 The Finance Commission Division has been by MoHUA (for non-million plus cities / Category-II Cities/ entrusted to deal with releases of Finance Commission Towns; (b) drinking water, rain water harvesting and water grants as per recommendations of successive Finance recycling (both for Rural Local Bodies and Urban Local Commissions during their award period. Bodies). 2.5.2 The recommendations made by the Fifteenth 2.5.6 Health Sector grants to local bodies: To strengthen Finance Commission (XV-FC) have been accepted by and plug the critical gaps in the health care system at the the Union Government for the award period 2021-22 to primary health care level, XV-FC has recommended 2025-26. For the year 2022-23, the Commission has grants for Health sector to be channelized through Local recommended allocation of an amounting to Rs 1,92,108 Governments amounting to Rs.13,192.00 crore for the crore for Grants-in-aid of revenues of States for Post year 2022-23. Devolution Revenue Deficit Grant, grants to Local Bodies including health sector grant and Disaster Management 2.5.7 Disaster Management Grants: The Fifteenth grants under Article 275 of the Constitution. The details Finance Commission for the award period 2021-22 to of allocation and releases of grants to the State 2025-26 has made far-reaching changes to strengthen Government under various components during 2022-23 disaster management in the country. The XV-FC has are as under: recommended that the total States allocation for State Disaster Risk Management Fund (SDRMF) should be S. Components 2022-23 (Rs in crore) subdivided into two funding windows. Accordingly, the No. Allocation Releases (up to State Disaster Response Fund (SDRF) should get 80 per 22nd November, cent of the total allocation and the State Disaster Mitigation 2022) Fund (SDMF) 20 per cent. The Commission has Post Devolution 1. 86201.00 57467.33 Revenue Deficit Grant recommended an amount totalling to Rs 23,294.00 crore for SDRMF in the year 2022-23. Similarly, the Local Bodies Grants 2 69421.00 28609.16 (RLBs & ULBs) Commission has recommended that National Disaster Response Fund (NDRF) should get 80 per cent of the Health Sector Grants to 3 13192.00 275.28 local bodies total allocation of the National Disaster Risk Management Fund (NDRMF) and balance 20 per cent for National State Disaster Risk 4 Management Fund 23294.00 10975.80 Disaster Mitigation Fund (NDMF). (SDRF & SDMF) 3. PUBLIC FINANCE CENTRAL DIVISION Total (1 to 4) 5 192108.00 97327.57 3.1 Public Finance (Central) Division is primarily National Disaster Risk engaged with all issues relating to the Central Plan of the 6 Management Fund 13010.00 886.72 Government of India through various Public Funded (NDRF & NDMF) Programmes/ Projects/ Schemes of various Central Grand Total (5+6) 205118.00 98214.29 Government Ministries/ Departments. This Division is handled in two untis:- Public Finance (Central -I) and 2.5.3 With respect to Post Devolution Revenue Deficit Public Finance (Central-II) . Grant: In order to meet the gap in the Revenue Accounts of the States post-devolution, the XV-FC has 3.2 This division is entrusted with the appraisal and recommended a total Post Devolution Revenue Deficit approval of all public funded schemes and projects of grant of Rs.86,201 crore to 14 States in the financial year the Central Ministries/PSUs. In respect of development 2022-23, out of which an amount of Rs.57,467.33 crore schemes and projects, the focus has been on improving has already been released the quality of public Expenditure though better scheme/ 90Department of Expenditure II Project formulation, emphasis on outputs, deliverables, for the meeting and dispatching minutes after approval impact assessment and convergence approach. has been functional since August, 2017. 3.3 A continuous endeavour is made to rationalize the 3.11 In August, 2021, revised format for appraisal and Centrally Sponsored Schemes (CSSs) and Central Sector approval of new Public Funded Schemes were issued, Schemes (CSs) for optimal and focused use of public to make it more informative, lucid and to incorporate resources. output/ outcome related targets in a logical framework. This will make the appraisal more structured and effective 3.4 Public Finance (Central) division deals with the while placing enhanced emphasis on measurable outputs/ financial restructuring of Central PSUs on the outcomes of public expenditure. recommendations of the Bureau for Restructuring of Public Sector Enterprises (BRPSE). It is also engaged in 4. PROCUREMENT POLICY DIVISION working out modalities for financial assistance to CPSEs, quantification of their Internal and Extra Budgetary 4.1 A Public Procurement Cell (PPC) was set up in Resource (I&EBR) generation for preparation of budget, this Department in June, 2011 to take follow up action on finalizing modernization of plants and machinery to ensure the Report of the Committee on Public Procurement more efficiency in production. Review of Capex and IEBR (CoPP) and for related matters such as drafting of rules of CPSE is also done periodically. and setting up of a Central Public Procurement Portal. The Cell was gradually strengthened and a Division called 3.5 Various issues relating to Food, Fertilizers and Procurement Policy Division (PPD) was created. Petroleum subsidy, including their quantification extension 4.2 Functions of PPD of assistance to the stake holders are also dealt within this division. This Division is actively involved along with The Division deals with the following items of work:- the concerned Department/Ministry, in shaping subsidy i. Public Procurement legislation and rules, policy of the government as to ensure effective targeting notifications, orders there under; coupled with minimum burden on the Government. ii. Policies relating to Public Procurement including 3.6 The PFC division also deals with various issues of administration of General Financial Rules 2017 Direct Benefit Transfer (DBT) in coordination with the DBT on procurement of goods and services and Mission, Adhaar seeding beneficiaries data base and use contract management; policies relating to of the Public Financial Management System (PFMS) in mandatory or preferential procurement; order to have end to end digitized information on all central expenditures encompassing CSSs, CSs, subsidies and iii. Matters relating to standardization of other expenditure. procurement related documents; 3.7 This division is responsible for preparation of iv. All matters related to Central Public Procurement outcome budgets for all Central Ministries/Departments Portal (CPPP) set up for publishing information relating to Public Procurement; in consultation with the NITI Aayog. This Output-Outcome Framework shall be for all CSSs, and CSs dealing with v. Matters relating to electronic procurement; in identified measurable outcome in the relevant medium term framework and physical and financial outputs are vi. Professional standards to be achieved by officials dealing with procurement and suitable training targeted on a year to year basis, consolidated Outcome and certification requirements for the same; Budget 2022-23 was presented in the Parliament as a part of the Budget Documents of 2022-23. vii. Interface with International bodies on matters relating to Public Procurement. 3.8 During the period from 1st April, 2022 to 30th November, 2022, the Expenditure Finance Committee viii. Matters related to operational issues of (EFC) Chaired by Secretary(Expenditure) recommended Government e-Marketplace (GeM). 33 investment proposals/Schemes of various Ministries/ Departments costing Rs. 2,20,073.19 Crore. ix. Handling of proposals relating to Global Tender Enquiry (GTE) received from all Central 3.9 Also during the period, Public investment board Ministries. (PIB) chaired by Secretary (Exp.) considered and recommended 13 proposals involving an amount of 4.3 Central Public Procurement Portal & Rs.14,87,373.28 Crore. e-Procurement 3.10 In order to speed up the appraised process, and i. Pursuant to the recommendations of the online portal for uploading EFC/PIB/SFC/DIB proposals Committee on Public Procurement (CoPP), a to relevant Ministries, receiving comments, fixing dates Central Public Procurement Portal (CPP Portal) 91Annual Report 2022-2023 has been set up for providing comprehensive 5. OFFICIAL LANGUAGE information and data relating to public procurement and is accessible at 5.1 Hindi Section of the Department of Expenditure www.eprocure.gov.in. It is being used at present is responsible for implementation of the provisions made by various Ministries / Departments, CPSEs and under Official Language Act, 1963 and Official Language autonomous / statutory bodies. e-Publishing of Rules, 1976 as amended from time to time. Hindi Section tender enquiries, corrigenda thereto and details is also responsible for coordinating follow-up action on of contracts awarded thereon, on the Portal, has the suggestions/ directions given by Kendriya Hindi been made mandatory in a phased manner w.e.f Samiti, Committee of Parliament on Official Language, 1st January 2012. Hindi Advisory Committee and Central Official Language Implementation Committee. Other responsibilities of the ii. Further, it has also been decided to implement section include implementation of various incentive e-Procurement in Ministries/ Departments of schemes to enhance use of Hindi in official work, the Central Government and instructions facilitation in nomination of officers/ employees for Hindi have also been issued to all Ministries/ language training and organization of Hindi Diwas/week/ Departments to commence e-procurement in fortnight. In addition to these, efforts for achieving annual respect of all procurement with estimated value targets set by Department of Official Language with regard of Rs.2.50 lakh or more in a phased manner. Use to usage of Hindi in official work are made in association of e-procurement has enhanced transparency with the other sections/divisions/offices in the Department. and accountability and made procurement more 5.2 To increase original correspondence with other efficient. This also helps in monitoring delays and Offices/individuals in Hindi, letters/circulars are issued reducing the procurement cycle. to sections/divisions/offices from time to time. As per iii. Currently, more than 1.1 Lakh tenders are floated quarterly progress report for the quarter ended on 31st per month using facility of CPPP (including September, 2022. The original correspondence in Hindi States) which amounts to more than Rs. 21 lakh with Region "A", "B" and "C" is 55.63%, 49.00% and crore per annum. Apart from it, many 30.92% respectively. procurement organizations like Railways, PSUs 5.3 Meetings of the Departmental Official Language like ONGC, BHEL etc. have their own e- Implementation Committee were held on 7th April, 2022, procurement portals. 22nd June, 2022 and 9th September, 2022 in which reports for quarters ending 31st December, 2021, 31st 4.4 Government e-Marketplace (GeM) March, 2022 and 30th June, 2022 received from the i. It is mandatory to buy goods/ services from GeM sections/ divisions/ offices of the Department were only, which are available on GeM. reviewed. Quarterly Progress Reports regarding progressive use of Hindi received from sections/offices ii. In order to promote greater discipline and of the department are reviewed in detail keeping in view timeliness in payment to vendors, it has been the targets prescribed in the Annual Program. Wherever decided that whenever a CRAC is auto generated shortcomings were found, they are advised to rectify/ or issued by a buyer and payment is not made improve usage of Hindi in official work. 10 days thereafter, the buyer organization will be required to pay penal interest @ 1% per month 5.4 Replies of letters received from members of for the delayed payment beyond the prescribed Parliament and other VIPs were promptly sent and follow timeline till the date of such payment. up action ensured. During the period under reference, replies to all the letters received in Hindi were compulsorily 4.5 Capacity Building given in Hindi under rule 5 of the Official Language Rules 1976. Also, official language inspection of Eleven It is imperative that the executives/ officers Sections/Divisions/Offices was conducted. During engaged in public procurement process have thorough inspection their work was found satisfactory and knowledge of all the relevant rules, regulations and suggestions were also given to them to further improve procedures of public procurement. For the purpose, one the progress of Official Language Hindi. week Training Program on Public Procurement is conducted in Arun Jaitely National Institute of Financial 5.5 The Policy of the Government with regard to the Management (AJNIFM), Faridabad with a view to educate propagation and spread of the Official Language is that and familiarize the concerned executives/ officers with the use of Hindi as Official Language may be increased all the relevant rules, regulations and procedures of public with motivation, encouragement and goodwill. Hindi procurement. Around 2000 officers per annum are being workshops are organized from time to time for the trained. So far, around 10000 officers have already been employees of the department to help them solve the trained in AJNIFM. practical difficulties in working in Hindi. This year, Hindi 92Department of Expenditure II workshops were organized in the department on June 6.3 The Integrated Finance Unit expeditiously 2, 2022 and September 9, 2022, in which problems examines and disposes the financial and expenditure faced while filling quarterly progress reports and annual proposals pertaining to the Department of Expenditure evaluation reports were addressed and employees were including the proposals for appointment of consultants, motivated to do noting on files originally in Hindi. "Hindi deputation of officers abroad, payments towards Course Fortnight" was observed in the Department from 14-28 Fees (including grants-in-aid) to National Institute of September, 2022 to motivate the employees for the Financial Management etc. duly observing austerity progressive usage of Hindi in their day-to-day work. instructions issued by the Govt. from time to time. Several competitions viz. Hindi Essay Writing, Noting- 6.4 The expenditure trend of Grant No.31-DoE is Drafting, Hindi Typing on Computer, Poem Writing and monitored consistently and strict control has been Hindi dictation-handwriting were organized to encourage exercised over the expenditure. A report of the review is the employees to work in Hindi and create a conducive regularly submitted to the Secretary (Expenditure) on atmosphere. In addition, a Campaign was launched for monthly basis through DO letter. undertaking more and more work in Hindi (minimum 7. CONTROLLER GENERAL OF ACCOUNTS 2000 words) during the period from 01st to 30th September, 2022. This year, Consolation prizes are 7.1 The Controller General of Accounts (CGA), in the increased to 5. Several officers and employees of the Department of Expenditure, Ministry of Finance, is the Department took part in these competitions/campaigns Authority to administer, manage and supervise enthusiastically. Along with this, in order to promote work departmentalized accounts of Government of India. It also in Hindi, this year, the 'Incentive scheme for noting/ provides advice to various Ministries/Departments of drafting in official work originally in Hindi', promoted by Government of India concerning Financial/Accounting the Department of Official Language, has also been matters and is responsible for establishing and maintaining implemented in the Department of Expenditure. a technically sound Payment and Accounting System. 6. INTEGRATED FINANCE UNIT (IFU) 7.2 The Office of Controller General of Accounts prepares monthly and annual analysis of expenditure, 6.1 The Integrated Finance Unit works under revenues, borrowings and various fiscal indicators for the Additional Secretary & Financial Adviser (Finance) and Union Government. Under Article 150 of the Constitution, deals with the expenditure and Budget related proposals the Annual Appropriation Accounts (Civil) and Union under Grant No.31 - Department of Expenditure which Finance Accounts are submitted to Parliament. Along with includes (i) Secretariat General Services covering the these documents, an M.I.S Report titled 'Accounts at a establishment budget for the Department of Expenditure Glance' is prepared and circulated to Hon'ble Members of (Main Secretariat), O/o Controller General of Accounts, Parliament. O/o Central Pension Accounting Office, O/o Cost 7.3 Functions: i) Formulate policies relating to general Accounts Branch and O/o Chief Controller of Accounts; principles, form and procedure of accounting for the Central and (ii) Other Administrative Services covering the and State Governments; ii) Administer the process of budget for Institute of Government Accounts and payments, receipts and accounting in Central Civil Finance, National Institute of Financial Management, Ministries / Departments; iii) Prepare, consolidate and Contribution to International Body (AGAOA) and the submit the monthly and annual accounts of the Central budget relating to payment of service charges to the Government through a robust financial reporting system Central Recordkeeping Agency for the New Pension aimed at effective implementation of the Government fiscal Scheme. policies; iv) Coordinate and assist in the introduction of Management Accounting Systems in Ministries/ 6.2 This Unit also monitors the Monthly expenditure Departments with a view to optimizing the utilization of under Grant No.31 - Department of Expenditure. Government resources through efficient cash management The allocations under Grant No.31-Department and an effective Financial Management Information of Expenditure are as under: System (FMIS); v) Administer banking arrangements for (Rs. in crore) Budget Estimates 2022-23 *Revised Estimates 2022-23 Grant No. Revenue Capital Total Revenue Capital Total 31 – Department of Expenditure 476.88 0.01 476.89 - - - *Yet to be received. 93Annual Report 2022-2023 disbursements of Government expenditures and v. The Finance Accounts of the Central collection of government receipts and interact with the Government comprises of the accounts of the Central Bank for reconciliation of cash balances of the Central Government as a whole and includes Union Government; and vi) Establish a sound Human transactions of Civil Ministries/Departments, Resource Management System for recruitment, Ministries of Defence and Railways and the deployment and improve the career profile management Departments of Posts & Telecommunication. It of officers and staff, both at the supervisory level and at presents the accounts of receipts and outflows the operational level within the Indian Civil Accounts of the Central Government for the year together Service. with the financial results disclosed by different accounts and other data coming under 7.4 Financial Reporting - Monthly and Annual examination. These accounts include the Revenue and Capital Account, Public Debt i. The office of the Controller General of Accounts account and other liabilities and assets worked is responsible for Monthly Consolidation of the out from the balances in the accounts. It is Union Government Accounts, a detailed analysis supplemented by the accounts separately of the monthly trends of receipts, payments, presented in the form of Appropriation Accounts deficit and its sources of financing are presented for Grants and charged Appropriations. The to the Union Finance Minister every month. The Finance Accounts is an Auditor's presentation of documents has over a period of time evolved into the general accounts of the Government to an extremely useful tool for monitoring budgetary Parliament. compliance and a handy MIS reference for decision making. In consonance with the 7.5 Public Financial Management System(PFMS): Government's policy towards transparency in The Public Financial Management System public functioning, an abstract of the Union (PFMS) is a web-based online software application Government accounts is also released every designed, developed, owned and implemented by the month on the Internet. The data can be accessed Office of the Controller General of Accounts. Public at the website http://www.cga.nic.in. Financial Management System aims to provide a sound ii. With the advancement of technology this office Public Financial Management System for Government of India (GOI) by establishing a comprehensive payment, has started providing flash figures of receipts, receipt and accounting network. It is aimed to achieve (i) payments and deficit to Ministry of Finance for "Just in time" transfer of funds and (ii) complete tracking data dissemination and quick management of realization of funds from its release to its credit into decision. Daily flash figures are provided in the the bank account of intended beneficiaries. Public month of March, in order to monitor various Financial Management System makes a direct and financial parameters and targets. significant contribution to the Digital India Initiative of iii. In tune with the development in best practices, Government of India by enabling electronic payment and Controller General of Accounts’ Office also receipt for Ministries/Departments in Government of India. prepares Provisional Accounts of the 7.5.1 Through PFMS, Rs. 89.09 Crore Transactions Government of India within two months of have been done during FY 2022 - 23 (as on 30.11.2022). completion of the financial year. The The Direct Benefit Transfer (DBT) under various social professionalism with which these accounts are welfare schemes like Scholarships, Subsidy, wages, prepared is evident from the high accuracy level pensions, cash in lieu of food grains etc. directly in the attained in the last few years as only marginal bank account of the beneficiary is being done for 926 variations have been observed between the schemes. A total of Rs. 88.46 Crore transactions Provisional Accounts and final audited Annual disbursing Rs. 1,98,191.36 Crore has been achieved in accounts. FY 2022-23 (upto 30th November 2022). iv. The Finance Accounts of the Union Government 7.5.2 Single Nodal Account (SNA) Implementation:- is submitted to Parliament under the provision of Article 151 of the Constitution of India. The As an important Public Financial Management reform, the fund release mechanism was changed by Finance Accounts of the Union Government Ministry of Finance for the Centrally Sponsored Schemes presents the accounts of receipts and in 2021 that aim at better cash management and best disbursements for the purpose of the Union value realization for every rupee spent by the government. Government together with the financial results disclosed by the revenue and capital accounts, SNA model for Centrally Sponsored Schemes the accounts of the public debt and the liabilities requires every state to designate an SNA for each CSS. and assets are worked out from the balances Funds are now being released by the State Treasury to recorded in the accounts. the State Nodal Agency's bank accounts. The child 94Department of Expenditure II agencies can operate the SNA account or open the Zero 02-03-2022. As on 1st November, 2022, it is rolled out Balance Accounts. This has resulted into effective and in 305 Pay & Accounts Offices (PAOs) of 47 Civil real time monitoring of the funds and expenditure, as the Ministries/Departments and 2 Union Territories. entire funds of the scheme lies in a Single Nodal Account. 7.6 Technical Advice on Accounting matters As on 12th December, 2022, 3500 State Linked 7.6.1 Article 150 of the Constitution provides that "The Schemes corresponding to 124 Centrally Sponsored accounts of the Union and of the States shall be kept in Schemes have been onboarded on SNA Model. such form as the President may, on the advice of the SNA reports have been developed to provide Comptroller and Auditor General of India, prescribe." Note information related to funds released by Government of to Rule 3 of Government Accounting Rules, 1990 provides India, funds transferred by State Treasury to SNA, that "this function is exercised by the Controller General expenditure done by SNA and unspent balances. of Accounts, Ministry of Finance (Department of Expenditure) on behalf of the President of India." 7.5.3 Central Nodal Agency (CNA) Implementation:- 7.6.2 Expenditures are classified according to the With an objective to achieve efficient cash function, programme, and their economic nature using a Management, Ministry of Finance introduced revised fifteen digit numerical code. Receipts are classified procedure of funds flow under Central Sector Scheme according to their nature and source. with effect from 1.4.2022 namely Central Nodal Agency (CNA) System though Public Financial Management 7.6.3 In terms of Rule 26 of GAR, 1990, Controller System (PFMS). This revised procedure is aimed at General of Accounts’ office administers the 'List of Major enhancing the efficiency of fund flows by using the 'just and Minor Heads of Account of Union and States in time' principle for drawl of funds and thereby ensuring (LMMHA)', which contains the classification of account better Cash Management in Government of India. heads upto Minor Head level (and some Sub/Detailed Heads under some of them) in Government Accounts. There are two models of implementation. Under Any amendment in LMMHA is carried out on advice of Model I namely TSA Model, CNA and sub-agencies draws the Comptroller and Auditor General of India (C&AG). In funds directly from Reserve Bank of India based on assignment limits. This model is applicable for all cases involving policy on Accounting Procedure, the schemes having an outlay of more than Rs. 500 crore. Budget Division, Department of Economic Affairs, Ministry For rest of the schemes model 2 is applicable wherein of Finance is also consulted. funds are released from Central Government to CNA's 7.6.4 The Object Heads have been prescribed under scheduled commercial bank account only. Down the Government of India's Orders below Rule 8 of Delegation ladder agencies can either draw funds from CNA account of Financial Power Rules, 1978. The power to amend or directly or open zero balance subsidiary accounts mapped modify Standard Object heads and to open new Object with CNA account. Heads rests with the Department of Expenditure of As on 30th November,2022, total 193 Central Ministry of Finance on the advice of the Comptroller and Sector Schemes are on boarded on CNA system. Out of Auditor General of India. Department of Expenditure in which 29 are under Model 1 and 164 are under Model 2. consultation with Controller General of Accounts’ Office, Comptroller and Auditor General of India’s (C&AG) Office 7.5.4 e-Bill:- In pursuance of the Digital India Initiative and Budget Division of Department of Economic Affairs of Hon'ble Prime Minister, it was decided to develop a (DEA) have reviewed the Standard Object Heads, the system to enable end to end digital processing of bills revised Object Heads have been notified on 16.12.2022 and claims from Vendors, suppliers, contractors and all and will be implemented with the effect from the financial other types of payees of Government. The system was year 2023-24. developed in the Public Financial Management System (PFMS) for the use in all Civil Ministries and Departments. 7.7 Treasury Single Account (TSA) With the initiative of e-bill supported by the revision in 7.7.1 The Expenditure Management Commission the Receipt and Payment Rules, the complete Payment (EMC) vide Para 125 of its September 2015 report had system has become paperless. The system, apart from recommended to gradually bring all Autonomous Bodies providing convenience to vendors/suppliers/other (ABs) under Treasury Single Account (TSA) system. claimants in digital upload of their bills is expected to bring Under Treasury Single Account (TSA) system, all about such advantages as shorter bill payment cycle, Autonomous Bodies (ABs) in receipt of Grants-in-aid from online tracking of the bill position, more effective audit Central Government have to open assignment limit based trails in the payment system, and environmental benefits account in RBI linked with Central Government Principal on account of elimination of paper requirement. Accounts’ Offices Account at RBI. Thereby 'Just-in-time' The e-bill system was launched by Hon’ble FM release is ensured against the assignment limit to on Pilot basis in 9 of 5 Ministries and Departments on Autonomous Bodies (ABs). The unutilized balances at 95Annual Report 2022-2023 the end of the financial year will be written back to paragraphs, Action Taken Replies (ATRs) on PAC Government Account by PAO. The main advantage of paragraphs and Explanatory Notes (ENs) on saving of the project is towards financial gain on account of savings Rs. 100 crore and above and excess expenditure as per due to Just in time releases to Autonomous Bodies (ABs) direction of Public Accounts Committee. Submission of resulting in reduction of borrowings by the Government Action Taken Notes/Action Taken Replies and through RBI. The guidelines for implementation of the Explanatory Notes are being done through the Audit Paras Treasury Single Account (TSA) System were issued by Monitoring System (APMS) Portal, which facilitates online Department of Expenditure, Ministry of Finance. submission of ATNs/ATRs/ENs to Lok Sabha Secretariat. Monitoring Cell is also administrator of APMS Portal 7.7.2 Implementation of Treasury Single Account (TSA) dealing with its development, maintenance and provide has been extended to 40 group of Autonomous Bodies Quarterly training to users of APMS Portal. (ABs), receiving funds amounting to more than Rs. 200 crore each from BE 2021-22 vide Budget Division, The number of ATNs/ATRs on C&AG/PAC Ministry of Finance’s OM dated 22-02-2021. paragraphs and Explanatory Notes submitted/settled through APMS Portal to the Lok Sabha Secretariat (PAC 7.7.3 The coverage of the TSA has been further Branch) during 2022-23, are as under:- expanded. Ministry of Finance vide OM No. F. No. 1(18)/ PFMS/FCD/2021 dated 9th March, 2022 has issued revised procedures for the flow of funds under the Central Paras submitted to Lok Sector Scheme and monitoring utilization of funds S.No. Subject Sabha Secretariat during released w.e.f 1.4.2022 . 01.04.2022 to 29.11.2022 7.8 Revision of Central Government Accounts 1. C&AG Audit Paras 659 (Receipts and Payments) Rules, 1983 2. PAC Paras 89 7.8.1 Central Government Account (Receipts and Payments) Rules, 2022 (RPR, 2022) and Subsidiary 3. Explanatory Notes 18 Instructions to RPR, 2022 were approved. RPR, 2022 was published in the Gazette of India Notifications on 20.8.2022. RPR 2022 is the revised and updated rules 7.10 Institute of Government Accounts and in place of RPR, 1983 and Treasury Rules of the Central Finance (INGAF) Government. RPR, 2022 contain rules regulating the 7.10.1 The Institute of Government Accounts & Finance custody of the Consolidated Fund of India, the payment (INGAF) is the training arm of the Controller General of of money into such funds, the withdrawal of money there Accounts (CGA), Department of Expenditure, Ministry of from, the custody of public money other than those Finance, Government of India. Initially known as the Staff credited to such funds received by or on behalf of the Training Institute, it was set up in February, 1992 to train Government of India, their payment into the Public personnel in specific areas of accounting, administrative Account of India and the withdrawal of money from such Account and all other matters connected therewith or matters and financial management. In the years following ancillary thereto. The rules have been prescribed in two its inception, the Institute has evolved to become a parts (i) RPR, 2022 and (ii) Subsidiary Instructions to premier training centre in the spheres of Government RPR, 2022 (detailed procedures and forms). Accounting and Public Financial Management. In addition, the Institute has Regional Training Centres (RTCs) at 7.8.2 The revision was undertaken to consolidate all Chennai, Kolkata, Aizawl and Mumbai. instructions and cater to new initiatives in receipts and payments in the light of end-to-end electronic processes 7.10.2 Customized or Sponsored Training:- The Institute of Government receipts, payments and its accounting in of Government Accounts & Finance (INGAF) is being the Central Government. regularly approached by various organization to provide in-depth training for their staff and officers from Group A, 7.8.3 RPR, 2022 and Subsidiary Instructions to rules B & C such as Drawing and Disbursing Officers (DDOs)/ will enable an improved, efficient and effective framework Heads of Officers etc. on a variety of subjects. The of Government receipts, payments and its accounting in Institute has formulated and arranged training courses Central Government. for such organization and while some of these training courses are undertaken on cost sharing basis, in cases 7.9 Monitoring Cell of other courses, the entire cost is charged to the Monitoring Cell, Office of the Controller General of concerned departments. Over the last four years (2017- Accounts, Department of Expenditure, Ministry of Finance 18 to 2020-21), this Institute has conducted training is entrusted with the work of co-ordination of timely programs for the different organization whose duration submission of Action Taken Notes (ATNs) on C&AG spanned from one week to five weeks. Prominent of these 96Department of Expenditure II include National Investigation Agency (NIA), National Committees (SFC), Public Investment Board (PIB), Sample Survey Organization (NSSO), Enforcement Delegated Investment Board (DIB), Advisory Committee Directorate (ED), O/o Registrar General of India (ORGI) for consideration of Techno-economic viability of Major / and so on. Medium, Flood Control and Multipurpose Projects; ii) Revised Cost Committee (RCC) to examine time & cost 7.10.3 International Cooperation:- The Institute of overruns or projects helps in identification of reasons for Government Accounts & Finance (INGAF) is a premier time and cost overruns and provide inputs for institute in the field of imparting training to participants rationalization of cost; iii) Member of Rate Structure from countries under ITEC programme in collaboration Committee for Directorate of Advertising and Visual with Ministry of External Affairs. Besides this, the DPFM Publicity (DAVP) advertisement rates for Print Media, FM participants of Sri Lanka Institute of Development Radio, Television, Internet and social media and Administration (SLIDA), Sri Lanka have visited Institute Governing Body of National Pharmaceutical Pricing of Government Accounts & Finance (INGAF) on several Authority (NPPA);iv)Assisting Central Government occasion for training on Public Financial management, Ministries/ Departments/ Organizations in solving In addition, several programmes on Public Expenditure complex price/ cost related issues, in fixing fair prices for Management/Public Financial Management as well as various services/ products and rendering advice to various Internal Audit/Risk Audit have regularly been conducted Ministries/ Departments in cost matters; v)Determination for the participants from Royal Government of Bhutan, /fixation of fair prices of the products and services the Government of Bhutan, the Government of supplied/rendered to Government. Some of the major Afghanistan and Nepal. studies are determination of cost / fair price of bank notes Last but not the least, The Institute of and coins supplied by SPMCIL to Reserve Bank of India, Government Accounts & Finance (INGAF) has been rails supplied by SAIL & traction supplied by BHEL to functioning as the Secretariat for the Association of Ministry of Railways, Contraceptives supplied by HLL Government Accounts Organization of Asia (AGAOA) Lifecare Limited to Ministry of Health & Family Welfare since November 2007. The purpose of AGAOA is to and Continuously Operating Reference Stations (CORS) promote 'professional understanding and technical Services provided by Survey of India etc.; vi) Examination/ cooperation among member institutions through verification of claims between Government Departments/ exchange of ideas and experiences in the fields covered Public Sector Undertakings and suppliers arising out of by Government Accounts Organization to ensure purchase contracts; vii)Vetting of claims under Price transparency, accountability and good governance'. Support Scheme and Price Stabilization Fund for Perishable Agriculture produce and Cereals submitted 7.10.4 MISSION KARMAYOGI by Implementing Agencies and State Governments; and viii) Examination of cost estimates, evaluation of the INGAF continuously thrives to raise its training financial feasibility and other financial parameters of the profile both in terms of magnitude and eminence. To High value Infrastructural Projects like Rail, Highways, facilitate and build the capacity of the officials, INGAF in Power, Education Sector etc. referred by DoE. collaboration with Capacity Building Commission has meticulously curated the digitized course on FRSR III 8.3 The Office of CAC is also cadre controlling office (Leave Rules), under Mission Karmayogi which has been for the Indian Cost Accounts Service (ICoAS),which successfully launched by Hon'ble Finance Minister during broadly encompasses Recruitment, transfer/posting and iconic week of Azadi Ka Amrit Mahotsav. Similar courses career progressions of ICoAS Officers. It also looks after on FRSR-I, FRSR-II, FRSR-IV & FRSR-V are in the training requirements of the officers for continuous up- process of digitization and will be launched shortly. gradation of their knowledge and skills, in addition to 8. CHIEF ADVISOR COST rendering professional guidance to the ICoAS officers working in different participating organizations. ICoAS has 8.1 The Office of Chief Adviser Cost (CAC) is one of the sanctioned strength of 230 officers and is staffed by the divisions functioning in the Department of Cost Accountants / Chartered Accountants. Expenditure, Ministry of Finance. 8.4 The Office of Chief Adviser Cost completed 46 8.2 The Office of Chief Adviser Cost is rendering studies/reports during the period from December, 2021 advice to the Central Government Ministries/ to November, 2022 following last annual report. The Departments/Organizations on complex Price/Cost cost-price studies including vetting of claim/compensation related issues and financial matters, which cover a wide completed during this period are detailed below: spectrum of sectors/areas. It is currently engaged in the following major thrust areas viz. i)Provides inputs for (i) Determination of Fair selling price of products/ rationalization of cost of projects / schemes of various service where Government/Public Sector Ministries / Departments in various committees e.g. Undertaking is the Producer/Service provider as Expenditure Finance Committees (EFC), State Finance well as the user:- a) Determination of Fair Price 97Annual Report 2022-2023 of Coins Supplied by India Government Mint handed over to ITPC by Northern Railway; and (IGM) Hyderabad to RBI during for FY 2019-20; e) Grant-in-Aid claim in respect of establishment b) Determination of Fair Selling Price of Coin cost & provision for PMO Canteen for FY Supplied by IGM-Mumbai to RBI during the FY 2021-22. 2019-20; c) Determination of Fair Price of Coins (iii) Other studies :- a) Revaluation of compensation Supplied by India Government Mint (IGM) payable to the prior allottees of Coal Blocks for Kolkata to RBI during for FY 2019-20;d) 'Mine Infrastructure Other than Land' for various Determination of Fair Price of Coins Supplied by coal blocks; b) Report on cost Analysis of IGM-Noida to RBI during FY 2019- Demand Aadhaar PVC Card Service of Unique 20;e)Consolidated Cost Report of Four IGM at Identification Authority of India; and c) Report on Mumbai, Kolkata, Hyderabad, Noida in respect compensation payable to UCIL for supplying of Fair Price of Coins supplied to RBI during for Uranium Concentrate for year 2019-20. FY 2019-20;f) Price Fixation of Condoms Manufactured / supplied by M/s HLL Healthcare 8.5. Revised Cost Estimates Committees Ltd. to M/o HFW for the year 2019-20; g) Cost of Represented: In pursuance of Ministry of Finance, production and fair selling price of Postal Department of Expenditure's Office Memorandum Stationery items produced supplied by SPPH to No. 24(35)/PF-II/2012 dated 05th August, 2016, Office D/o Posts during 2019-20; h) Fair selling price of of Chief Adviser Cost has represented in 122 Committees Tear Smoke Munitions Manufactured by TSU, for Revision of Cost Estimates in various Ministries/ BSF during the year 2020-21; i) Fixation of the Departments involving a total value of Rs. 1,68,363.41 prices of continuously operating reference station crore during the current year. Proactive role of this Office (CORS); j)Supplementary Report on fixation of in the Revised Cost Committee has facilitated price of NGADU year 2018-19, REC rationalisation of revised cost estimates. OSCOM;k)Vetting of price of Ayurvedic and Unani Medicines manufactured by IMPCL for the 8.6 EFC/PIB Committee Represented: This Office year 2018-19;l)Fixation of rate of compensation has represented and offered comments in 25 Expenditure for NGADU supplied by IREL RED for FY Finance Committee (EFC)/Public Investment Board (PIB) 2019-20;m)Determination of Fair Price of Postal meetings in various Ministries/Departments involving a stationery items produced and supplied by INP total value of Rs. 30,65,718.32 crore during the period Nasik to D/o Posts during for year December, 2021 to November, 2022. 2019-20;n)Study for determination of fair price 8.7 Other Major Committees Represented: Officers of Postal items produced and supplied by SPP- of Chief Adviser Cost's Office owing to their expertise in Hyderabad during year 2018-19;o) costing/finance/commercial accounting have also served Supplementary Report on fixation of rate of as Chairman/Members on the following major multi- NGADU supplied by OSCOM-MoIP of REC year disciplinary Inter-Ministerial/ Expert Committees:- 2017-18; p)Re-Fixation of Fair Selling Price of a)Academic Council Meeting of Arun Jaitley National Tear Gas Gun and Multi Barrel Launches for year Institute of Financial Management (AJNIFM) for 29th 2020-21; and q) Fixation of Common Hourly Probationers Training Course (PTC); b) National Rates and Overhead % for Government of India Pharmaceutical Pricing Authority (NPPA), Department of Press, Temple Street Kolkata, Mayapuri New Pharmaceuticals; c) Advisory Committee on Irrigation, Delhi and Nashik for year 2019-20, Government Flood Control and Multipurpose Projects; d) Committee of India Mayapuri New Delhi, Minto Road New to resolve the issue of interest on delayed payment to Delhi and Nashik for year 2019-20. HIL India Ltd. under Chairmanship of AS&FA, MoH&FW; e) Board of Governors and the society of the Arun Jaitely (ii) Determination of subsidy/Reimbursement of National Institute of Financial Management (AJNIFM), Losses:-a)Vetting of claims of NAFED for Faridabad; f) Governing Body of Tear Smoke Unit, BSF, reimbursement of losses and recovery of Gains Tekanpur, (Gwalior);g)Working Group for reviewing the under Price Support Scheme (PSS) for various calculation of Benefit-Cost Ratio and Procedure for crops/commodities; b)Subsidy payable to Revised Cost estimation for Major & Medium Irrigation Northern Railway Catering Unit Functioning in Flood Control and Multi-purpose projects under the Parliament House Complex for the year 2020- Chairmanship of Member (Water Projects & Planning), 21; c) Vetting of claims under Market Intervention Central Water Commission; h)9th Rate Structure Scheme and Price Stabilization Fund for Committee under the Chairmanship of AS&FA, Ministry Perishable Agriculture produce and Cereals of Information and Broadcasting for DAVP advertisement submitted by Implementing Agencies and State rates for Print Media; i) Committee to adopt Uniform Governments for various years; d) Format of Accounts in Financial Management of Reimbursement of value of crockery, cutlery etc. autonomous bodies; j) Committee for Ethanol price to be 98Department of Expenditure II paid to ethanol suppliers for Ethanol Supply year b. Master of Business Administration in Financial 2022-23 (1st December, 2022 to 30th November 2023) Management- for mid-level officers of Central under the Ethanol Blended Petrol (EBP) Programme; and and State Governments, Autonomous Bodies & k) Disposal of Chana procured under Price Support Defence Services. Scheme (PSS) & Price Stabilization Fund (PSF) to States/ UTs at a discounted rate of Rs. 8/- per kg over issue c. Master of Business Administration (Finance): It price of utilization under various welfare schemes like focus on Financial Analysis, Financial Modelling Mid-Day-Meal, Public Distribution System, ICDP etc. & Forecasting, Big Data Analytics and Risk Management etc. The programme is 8.8 Celebration of Iconic Week of Azadi Ka Amrit comprehensive in nature, covering all major Mahotsav: During the Iconic week of Ministry of Finance areas of financial markets viz. Equity, Debt, in the celebration of Azadi ka Amrit Mahotsav from 6th Mutual Funds, Equity Derivatives, Currency June to 11th June, 2022, various programs/events were Derivatives and Commodities etc. for mid-level organised by Office of Chief Adviser Cost including officers of Government & others. Seminar on 'Appraisal & Monitoring of Infrastructure Projects- Time and Cost Overruns' with Interaction of d. Post Graduate Diploma in Government Finance Secretary & Secretary Expenditure with Financial Accounting and Internal Audit (PGDG&IA) - It is Advisers and participants, 'Walkathon from Lodi Garden a one year programme to upgrade the technical to Office of CAC', Workshop on 'Vision ICoAS@2047', skills of Group-B officers of the Civil Accounts 'Input Tax Credit under Goods and Service Tax (GST) Department. Act' and 'Cost Accounting Standard 19 on Joint Costs. 9. ARUN JAITLEY NATIONAL INSTITUTE 9.3.2 Apart from its regular long term programs, AJNIFM OF FINANCIAL MANAGEMENT conducts short term training programs on various aspects (AJNIFM) of Finance and Public Financial Management. Participants include officers from Central Government, 9.1 Introduction about AJNIFM State Government, Autonomous Bodies, PSUs, Defence 9.1.1 AJNIFM was set up in 1993 as a Society. The & Paramilitary Forces etc. These short-term programs Union Finance Minister is the President of the AJNIFM deal with specific themes and are specially tailored to Society and Secretary (Expenditure) is the Chairman of address the needs of the participants and sponsoring the Board of Governors. organizations. 9.1.2 It began with the core objective of imparting 9.4 Collaboration with other Ministries/ training to Officer Trainees (Probationers) of the six Departments organized Accounts and Finance services. However, over the years, the Institute has expanded its activities with a) AJNIFM has signed a MoU with Research & four long term programs and a dynamic repertoire of Information Division of Lok Sabha Secretariat. short-term programs. In the process, AJNIFM has been The objective of MoU is to provide written able to carve a unique identity for itself as a premier materials/articles like Commentaries, Briefs, institute of Ministry of Finance in professionalizing Public Background Notes on mutually agreed topics to Financial Management and Public Procurement. the R&I Division of Lok Sabha Secretariat. 9.2 Key achievements b) AJNIFM has signed a MoU with Jawaharlal Nehru University (JNU). Under this MoU, JNU Till November 2022, AJNIFM has conducted 71 Capacity Building/Management Development Programs has recognized AJNIFM as a partner institution and 1935 officers have been imparted training. 50 more and participants of two long term programs will Capacity Building/Management Development be enrolled with them for award of MBA Degree Programmes have been slotted during last December, from academic year 2022. 2022 to March, 2023 and 1500 officers are expected to c) AJNIFM has signed a MoU with Department of be trained. Expenditure. This MoU paved the way of setting 9.3 Significant developments - Training up of a Procurement Research Centre(PRC) in Programmes AJNIFM with the aim to conduct research on different facets of Public Procurement. 9.3.1 AJNIFM conducts four long term programs. These are as under: d) AJNIFM has signed a MoA with Department of a. Professional Training Course- for Officer Economic Affairs and various reports are Trainees of various Accounts and Finance submitted to them in accordance with terms of Services of twenty six weeks duration. reference. 99Annual Report 2022-2023 9.5 Initiatives taken with reference to the departments of the Ministry of Finance are sent Northeast region. to the office of the Controller General of Accounts for their consolidation into the Accounts of The programs run by AJNIFM draw participants Government of India. from all over the country. Recently, a special training program of one week duration on Financial Management  The Scheme of Departmentalization of Accounts & other Financial Rules for State Civil Service officers of had envisaged a system of management Arunachal Pradesh has been conducted from 28th accounting O/o CCA prepares monthly and November to 03rd December, 2022. Similar special quarterly review statements for receipt and training programs have been organized for officers of expenditure and submits the same for Government of Himachal Pradesh, Uttarakhand, Odisha information of the Secretaries of the & Madhya Pradesh. Departments. The summary statements are also uploaded on the Ministry's official website. 9.6 Initiatives undertaken for Disabled/ Handicapped and SC/ST as well as other  Internal Audit is the responsibility of the O/o CCA. weaker sections of Society In the Ministry of Finance, the Internal Audit Wing undertakes the audit of all DDOs, attached and The AJNIFM campus is disabled friendly with retro fittings subordinate offices including Banks who are at most of places. Any grievance received in respect of handling Government Schemes such as Public SC/ST or other weaker sections are duly addressed. As Provident Fund, Special Deposit Schemes and on date, no grievance is pending with the Institute. Senior Citizen Savings Scheme. There are about 9.7 Inputs on e-governance 145 auditee units within the jurisdiction of internal audit. 9.7.1 Dissemination of knowledge on new initiatives of the Government: Whenever there are new initiatives  Budget related work for nine (9) Grants pertaining of the Central Government, AJNIFM has been mandated to Department of Economic Affairs, Department to launch special training drives to cover all Government of Financial Services, Department of entities. In fulfilment of this mandate, AJNIFM has run Expenditure, Transfer to States, Department of several training programs on Public Procurement Revenue, Department of Investment and Public including GeM. Asset Management and Department of Public Enterprises are vested with O/o CCA. 9.7.2 Digital Governance: AJNIFM is a partner Institute under NeGD and is successfully delivering capacity building  Providing support staff to Controller of Aid and training programs in e-Governance for all cadres of Accounts and Audit (CAAA). Government officials. Various training courses run at  Pension authorization under the Pension Rules AJNIFM comprise a component on e-governance invariably. to the officials retiring on superannuation, seeking 10. CHIEF CONTROLLER OF ACCOUNTS voluntary retirement and to the families of (FINANCE) deceased employees/pensioners. 10.1 The Chief Controller of Accounts (CCA) is in  Pension payment to foreign pensioners residing overall charge of the payment and accounting set up of in India on behalf of Sri Lanka, Singapore, UK the Ministry, supported by three Controller of Accounts, and Myanmar. two Deputy Controllers of Accounts, two Assistant  Accounting and monitoring of Loans advanced Controllers of Accounts, 37 Senior Accounts Officers and approximately 300 other staff members at various levels. to foreign countries. 10.2 Function of the CCA (FINANCE)  Accounting of total receipts and payments in the entire central Government under the CGEGIS  Payments and accounting functions of six (Central Government Employees Group Insurance Departments in Ministry of Finance viz. Scheme) and calculation & accounting of interest Department of Economic Affairs, Department liability of GOI under both the savings fund and of Expenditure, Department of Revenue, Insurance fund components of this scheme. Department of Investment and Public Asset Management, Department of Financial Services  Provide support for the settlement of C&AG audit and Department of Public Enterprises. Para.  Financial reporting to the Chief Accounting  Responsible for transfer of funds to and from CFI Authority (i.e. the Secretaries of the respective to Public Account. There are 14 such Funds in Departments) and to the Controller General of the Department of Economic Affairs, 2 in Accounts. The monthly accounts, Appropriation Department of Revenue and 1 in Department of Accounts and Finance accounts pertaining to six Expenditure. 100Department of Expenditure II  Formulation of detailed Accounting procedures loans, Back to Back Loans and B2B Loans to in respect of the Funds maintained under Public states in lieu of GST Compensation shortfall) Account of India. were released to various state governments.  Settlement of the cases relating to combined 10.3.2 Internal Audit pension, pro-rata pension, leave encashment, a. Internal Audit functions under the control and leave salary and pension contributions, revision supervision of the CCA and focuses on the Audit of pre-2016 pension cases etc. of the absorbed employees of SPMCIL, after the corporatization of all the DDOs and subordinate offices including of Mints and Presses, in coordination with the Banks who are handling Government Schemes Corporate office of SPMCIL, field units and the such as Public Provident Fund, Special Deposit administrative division in the Ministry. Scheme and Senior Citizen Deposit Scheme. This involves appraisal, monitoring and 10.3 Highlights of important functions evaluation of individual schemes and 10.3.1 Monitoring system for transfer of funds from the assessment of adequacy and effectiveness of Ministry of Finance to State Governments internal controls in general and soundness of financial systems and reliability of financial and  Under the Public Financial Management System accounting reports in particular. (PFMS) implemented under the aegis of CGA, scheme wise funds released to the states are b. The BFI wing of the Internal Audit Wing is visible on the PFMS portal. Under this system, mandated to check delayed remittances by the sanctions are transmitted to Public Financial banks, of deposits under NSSF and impose Management System (PFMS) Portal based on penalties on such delayed remittances. which Inter Government Advices (IGA) are Currently, banks are liable to pay penal interest generated and sent to RBI, Nagpur in respect of for the entire period commencing from the date 28 States. IGA advice in respect of State of receipt at receiving Branch of the Bank to the Government of Sikkim and Delhi are sent to RBI, date of settlement with RBI (CAS) Nagpur beyond Delhi by special messenger. the prescribed (T + 1) day (including holidays).  Grants-in-aid amounting to Rs. 2,17,619.73/- 10.4 Achievements during the year crore towards Externally Aided Projects, Finance Commission Grants including Grants- 1) Enrolment of N.S.I. and Indian Economic In-Aid for State Disaster Response Fund & Service into Employee Information System (EIS). Compensation to State/UT Government for Revenue Loss and Rs.502.74/- crore towards 2) Recovery of outstanding Penal Interest from assistance to States from NDRF for calamities Banks: Audit of the banks handling PPF-1968, of severe nature were released to State SCSS- 2004 & Sukanya Samridhi Account-2016 government through PFMS portal in Financial scheme is conducted by Office of CCA (Finance) Year 2022-23. to check delayed remittances under these  During the Financial Year 2022-23 (up to schemes. A total penalty of Rs. 18,90,81,098.37 30.11.2022) loans of Rs.54,020.46/- crore (Block have been imposed on banks so far. Details of Delayed Penal Interest levied on the Banks for PPF, SCSS and SSA (as on 30/11/2022) (Amount in Rs.) PPF SCSS SSA Total Outstanding as on 31/03/2021 106883091.62 120187586.22 4692425.00 231763102.84 Levied during 2021-22 49740.00 1328186.30 13144.40 1391070.70 Recovered during 2021-22 1203694.70 18823236.82 0.00 20026931.52 Contested and dropped during 2021-22 0.00 2770060.00 0.00 2770060.00 Total outstanding as on 31/03/2022 105729136.92 99922475.70 4705569.40 210357182.02 Levied during 2022-23 (upto 30/11/2022) 13608748.73 40610096.37 14583694.18 68802539.28 outstanding as on 30/11/2022 119337885.65 140532572.07 19289263.58 279159721.30 Recovered during 2022-23 (upto 30123576.32 58849444.61 26491.00 88999511.93 30/11/2022) Contested and dropped during 2022-23 0.00 457700.00 621411.00 1079111.00 (upto 30/11/2022) Net outstanding as on 30/11/2022 89214309.33 81225427.46 18641361.58 189081098.37 101Annual Report 2022-2023 Name of the Schemes Public enterprises will be looked after by AS & FA, Ministry of Finance. The PAO (DPE) under  PPF (Public Provident Fund-1968) Ministry of Finance was set up and PAO functions  SCSS (Senior Citizen Saving Scheme-2004) commenced w.e.f. 01.10.2021 in a record time of 3 months.  SSA (Sukanya Samridhi Account-2016) 9) INDRAA (Internal Debt and Recovery Advanced 3) PFMS has been implemented in all Pay and Application) software has been developed and Accounts offices of the Ministry and all payments is running smoothly in the Ist phase of are being made through PFMS. Use of cheques implementation. as a mode of payment has been more or less eliminated. All payments are now being made 11. CENTRAL PENSION ACCOUNTING electronically. e-bill has been introduced in the OFFICE PAOs of Ministry of Finance. The implementation 11.1 The Central Pension Accounting Office (CPAO) of PFMS coupled with extensive training to the was established w.e.f. 1st Jan, 1990 for Payment and concerned officials and peer to peer knowledge Accounting of Central (Civil) Pensioners and Pension to sharing has resulted in less adaptation time, more Freedom Fighters etc. CPAO is a subordinate office organisational efficiency, less response time in under the Office of the Controller General of Accounts, payments, improved record keeping/tracking Department of Expenditure, Ministry of Finance. It has through digital logs and more transparency. been entrusted with the responsibility of administering 4) This Department has moved to Government e- the scheme of payment of pension to Central Government Market Place for all the procurements. Officials (Civil) Pensioners including UTs, Delhi Administration were provided training on GeM and the except Railways, P&T and Defense through authorized procurements are being made through GeM. The Banks. Its core functions are: procurement/process has now become more  Issue of Special Seal Authorities(SSAs) streamlined, efficient and transparent. This has authorizing payment of pension in fresh as well considerably reduced the hurdles in the as revision of pension cases to the CPPCs procurement process, providing the purchasing (Central Pension Processing Centers) of pension department with more choices and better disbursing Banks; recordkeeping as the bills are in digital format.  Preparation of Budget for the Pension Grant and 5) All pension cases of this department are being accounting thereof; processed through the "Bhavishya Portal" resulting in the expeditious processing of pension  Audit of CPPCs of pension disbursing Banks; related works. The check points in the "Bhavishya Portal" ensures procedural accuracy of the  Maintenance of Data Bank of Central Civil pension cases. Pension cases of Pre-2016 are Pensioners containing all details indicated in the being revised electronically on the e-portal PPOs and Revision Authorities; eppo.nic.in/revision.  Handle the issues raised by Central Civil 6) All work related to feeding of budget, Pensioners; supplementary, re-appropriation and surrender  Payment of Additional Relief to the Pensioners/ orders for each grant along with mapping of Family Pensioners covered under National heads to each scheme on PFMS has been Pension System-Additional Relief Scheme (NPS- successfully done for the Financial Year AR) (as an interim arrangement). The Pension 2021-22. Rules for National Pension System pensioner 7) The Automation of Compilation and have been notified in March, 2021. The process Consolidation of Monthly Accounts on PFMS was of migration of legacy cases & Fresh Pension started from the Month of December, 2020 cases of old Pension Scheme Pensioners is wherein the PAOs and Pr.AO are able to submit under process under the guidance of CGA. the accounts through their respective Digital Signature on PFMS. 11.2 Achievements: The primary function of CPAO is to issue SSAs to the CPPCs of Banks in fresh and revision 8) Vide Gazette Notification No. S.O. 2718(E) dated of pension cases. In the Financial year 2022-23 (as on 06.07.2021 issued by Government of India, 24th Nov, 2022), highlights are as follows: - wherein the Department of Public Enterprises has been made part of the Ministry of Finance  32,456 and 33,857 authorities were issued in and the finance advice charge of Department of fresh and revision of pension cases respectively. 102Department of Expenditure II  Projection or estimate for the remaining period:- writing, debates, paragraph writing etc. have been centered around "Social, Cultural, (i) Fresh Pension Case- 16,000 (Approx.) Economic and Scientific progress of the (ii) Revision of pension case- 17,000 (Approx.) country since independence." 11.3 To endeavor and improve the ease of living of 11.4 e-Governance Initiatives of CPAO pensioners and to bring about transparency in the pension authorization process, the recent initiatives taken by 11.4.1 CPAO is a fully computerized office. A wide range CPAO are as follows: of softwares/packages have been developed/ implemented in this office for streamlining pension a) Pension Adalats: CPAO is organizing 'Pension authorization, accounting, Grievance Redressal etc. Adalat' every year since 2018. However, due to which include:- the Covid pandemic, no Pension Adalat was organized in 2021. For the year 2022, it was held (A) Pension Authorization Retrieval & Accounting on 16th March, 2022 through video conferencing. System (PARAS):- All the pension processing More than 500 pensioners attended each of the activities from receipt to dispatch are managed Pension Adalat in 2018 & 2019. Due to the Covid through PARAS. The web interface of PARAS Pandemic, the Pension Adalat was organized provides the related information to pensioners; through video conferencing facility in 2020 & PAOs/Ministries & Banks. About 15.47 lakhs 2022. Region wise Pension Adalats shall be Central Civil pension cases have been processed organized by CPAO to increase the outreach to by CPAO through this software thereby creating Pensioners spread across country. digital database of these pensioners. Various b) Migration of UT Ladakh Pensioners: Subsequent MIS reports are also generated by this software to the creation of Union Territoty of Ladakh for the purpose of monitoring. (without Legislature), CPAO has successfully migrated the data of pensioners from Treasury (B) Database Management Software:- Software for system to CPAO in a time bound manner; and comparison of banks' database with CPAO's their pensions are now routed through CPAO via database of pensioners has been developed and electronic system. exception reports are generated by it to clean up the database and establish a completely c) Payment of Gallantry Awards through CPAO: Recently, CPAO has started an online system to matching database. pay Gallantry Awards/Police medal Awards (C) Electronic Pension Payment System (e-PPO/e- through banks along with the pension of the SSA System): CPAO has been making an effort awardee. Earlier, the same was paid by the to ensure that pension authorization process concerned office. This issue was pending since becomes completely paperless. At Present, credit long & has led to considerable reduction of delay of the first pension into the account of pensioner/ in payment. family pensioner is carried out immediately on d) Training to CPPC's officers: In current year, the basis of e-PPO and e-SSA received from CPAO has started a new initiative to provide CPAO without waiting for the physical copy of training for hand holding of bank officers for the same. This initiative has led to a significant smooth disbursal of pension. First such training reduction in delays experienced by the by CPAO was held in SBI training Centre Noida pensioners/family pensioners in first credit of in July 2022. pension. e) AzadiKaAmritMahotsav: The following activities (D) Facilitation Centres along with Token Generation have been undertaken by CPAO to System: In Sep, 2022, a Pensioner Facilitation commemorate "AzadiKaAmritMahotsav":- Centre having an automated token generation i. Wide publicity of the system has been established to facilitate pensioners visiting CPAO. The token wise "AzadiKaAmritMahotsav" among the facilitation request/help request is generated for officers/staffs has been done through solving the request & helping in smooth disbursal banners, circulars and website of CPAO. of pension. The generated token report is ii. The theme of various events under "Hindi monitored on regular basis. CPAO is committed Pakhwada-2021 & 2022" such as essay to provide the best services to the pensioners. 103Annual Report 2022-2023 Annexure-I State-wise allocation and releases under ‘Scheme for Special Assistance to States for Capital Expenditure’ in 2020-21 and 2021-22 (Rs. in crore) 2020-21 2021-22 Sl. States No. Approved Released Approved Released 1 Andhra Pradesh 688.00 688.00 501.7900 501.7900 2 Arunachal Pradesh 232.97 232.97 490.2700 371.1900 3 Assam 450.00 450.00 600.0000 600.0000 4 Bihar 843.00 843.00 1246.5000 1246.5000 5 Chhattisgarh 286.00 286.00 423.0000 423.0000 6 Goa 97.66 97.66 111.0400 111.0400 7 Gujarat 285.00 285.00 432.0000 432.0000 8 Haryana 91.00 91.00 135.0000 135.0000 9 Himachal Pradesh 533.00 533.00 800.0000 800.0000 10 Jharkhand 277.00 277.00 409.5000 246.0000 11 Karnataka 305.00 305.00 451.5000 451.5000 12 Kerala 163.00 81.50 238.5000 238.5000 13 Madhya Pradesh 1320.00 1320.00 1533.0520 1512.3610 14 Maharashtra 514.00 514.00 783.0000 771.7300 15 Manipur 317.16 317.16 288.4695 212.8495 16 Meghalaya 200.00 200.00 300.0000 281.2000 17 Mizoram 200.00 200.00 299.9900 299.9900 18 Nagaland 200.00 200.00 300.0000 300.0000 19 Odisha 471.50 471.50 561.0000 517.1200 20 Punjab 296.50 296.50 223.5000 223.5000 21 Rajasthan 1002.00 1002.00 747.0000 692.4100 22 Sikkim 200.00 200.00 300.0000 300.0000 23 Tamil Nadu 0.00 0.00 505.5000 505.5000 24 Telangana 358.00 358.00 260.9371 214.1371 25 Tripura 300.00 300.00 300.0000 118.5400 26 Uttar Pradesh 976.00 976.00 2224.5000 1483.0000 27 Uttarakhand 675.00 675.00 528.6301 263.9201 28 West Bengal 630.00 630.00 933.0000 933.0000 Total 11911.79 11830.29 15927.6787 14185.7777 104Department of Expenditure II 105Annual Report 2022-2023 Annexure-III Releases to the States under Special Assistance (Rs. in crore) Sl. 2022-23 States 2018-19 2019-20 2020-21 2021-22 No. (30.11.2022) 1 Andhra Pradesh 15.81 350.00 350.00 2785.39 478.8830 2 Arunachal Pradesh 309.73 328.77 500.0000 3 Assam 4 Bihar 739.47 195.74 250.00 5 Chhattisgarh 6 Goa 150.00 7 Gujarat 431.00 8 Haryana 9 Himachal Pradesh 10 Jammu & Kashmir 85.00 200.00 10 Jharkhand 11 Karnataka 12 Kerala 13 Madhya Pradesh 14 Maharashtra 15 Manipur 16 Meghalaya 17 Mizoram 18 Nagaland 226.80 219.15 19 Odisha 20 Punjab 21 Rajasthan 146.00 22 Sikkim 150.00 23 Tamil Nadu 24 Telangana 450.00 450.00 25 Tripura 1500.00 698.70 26 Uttar Pradesh 1200.00 27 Uttarakhand 8.00 375.00 405.00 28 West Bengal Total 4680.81 1623.70 1948.66 3766.39 978.8830 106Department of Expenditure II 107 AVI-eruxennA BVI-eruxennA CVI-eruxennAAnnual Report 2022-2023 108Chapter - III Department of Revenue III Department of Revenue 1. Organisation and Functions xvi. Foreign Exchange Management Act, 1999. 1.1 The Department of Revenue functions under the xvii. Union Territory Goods & Services Tax Act, 2017 overall direction and control of the Secretary (Revenue). xviii. Goods & Services Tax (compensation to States) It exercises control in respect of matters relating to all Act, 2017 the Direct and Indirect Union Taxes through two Statutory Boards, namely, the Central Board of Direct Taxes xix. Central Goods & Services Tax Act, 2017 (CBDT) and the Central Board of Indirect Taxes and xx. State Goods & Services Tax Act, 2017; and Customs (CBIC). Each Board is headed by a Chairman who is also ex-officio Special Secretary to the Government xxi. Integrated Goods & Services Tax Act, 2017 of India. Matters relating to the levy and collection of all 1.3 The Department looks after the matters relating the Direct taxes are looked after by the CBDT whereas to the above-mentioned Acts through the following those relating to levy and collection of Goods and Service attached/subordinate offices: Taxes (GST), Customs and Central Excise duties, Service Tax and other Indirect taxes fall within the purview of the i. Commissionerates/Directorates under Central CBIC. The two Boards were constituted under the Central Board of Indirect Taxes and Customs; Board of Revenue Act, 1963. Each Board has a ii. Commissionerates/Directorates under Central sanctioned strength of 6 (six) members. Board of Direct Taxes; 1.2 The Department of Revenue administers the iii. Central Economic Intelligence Bureau; following Acts: iv. Directorate of Enforcement; i. Income Tax Act, 1961; v. Central Bureau of Narcotics; ii. Black Money (Undisclosed Foreign Income & Assets) Imposition of Tax Act, 2015 vi. Chief Controller of Factories; iii. Benami Transactions (Prohibition) Act, 1988; vii. Appellate Tribunal under SAFEMA; iv. Chapter-VII of Finance (No.2) Act, 2004 (Relating viii. Income Tax Settlement Commission; to Levy of Securities Transactions Tax) ix. Customs and Central Excise Settlement v. Central Excise Act, 1944 and related matters; Commission; x. Customs, Excise and Service Tax Appellate vi. Customs Act, 1962 and related matters; Tribunal; vii. Central Sales Tax Act, 1956; xi. Authority for Advance Rulings (for Income Tax viii. Custom Tariff Act, 1975 and Central Excise, Customs & Service Tax); ix. Central Excise Tariff Act 1985 xii. National Committee for Promotion of Social and Economic Welfare; x. Narcotic Drugs and Psychotropic Substances Act, 1985; xiii. Competent Authorities appointed under Smugglers and Foreign Exchange Manipulators xi. Prevention of Illicit Traffic in Narcotic Drugs and (Forfeiture of Property) Act, 1976 & Narcotic Psychotropic Substances Act, 1988; Drugs and Psychotropic Substances Act, 1985; xii. Smugglers and Foreign Exchange Manipulators xiv. Financial Intelligence Unit, India (FIU-IND); (Forfeiture of Property) Act, 1976; xv. Adjudicating Authority under Prevention of Money xiii. Indian Stamp Act, 1899 (to the extent falling within Laundering Act. jurisdiction of the Union); xvi. Revision Application Unit. xiv. Conservation of Foreign Exchange and 1.4 A comparison of the collection of Direct and Prevention of Smuggling Activities Act, 1974; Indirect taxes for the period of F.Y. 2021-22 and F.Y. xv. Prevention of Money Laundering Act, 2002; 2022-23 (provisional) is as follows: 109Annual Report 2022-2023 (Rs. in crore) S. Nature of Taxes Amount collected No. 2021-22 2022-23 (Provisional) (Up to Nov. 2022) 1. Corporate Income Tax* 7,12,037.33 4,49,340.94 2. Personal Income Tax (excluding STT & WT)* 6,73,413.50 4,09,781.92 3. Other Direct Taxes (WT, STT, etc.)* 26,971.62 18,347.47 4. Total Direct Taxes (1+2+3)* 14,12,422.45 8,77,470.33 5. GST (CGST, IGST & Comp. Cess)** 6,99,239 5,57,450 6. Non-GST (Customs, Central Excise & Service 5,91,548 3,62,080 [Tax Arrears])** 7. Total Indirect Taxes (5+6)** 12,90,787 9,19,530 * Source: Pr. CCA (CBDT) ** Source: Pr. CCA (CBIC), DG-Systems (CBIC) 1.5 The details of representation of SCs, STs and regions headed by Principal Chief Commissioners of OBCs are at Annexure-I. Income Tax (Pr. CCIT), who are entrusted with the supervision and collection of direct taxes and taxpayer 1.6 The details of representation of persons with services. The Directors General of Income Tax disabilities are at Annexure-II. (Investigation) supervises the investigation functions and 1.7 The details of ATNs in respect of audit deal with tax evasion and unearthing unaccounted observations are at Annexure-III. income. The Director General of Income Tax (Intelligence and Criminal Investigation) supervises the intelligence 1.8 An Organisation Chart of Department of Revenue gathering and investigation in tax related crimes. The is given at Annexure-IV. Principal Chief Commissioner of Income Tax (Exemptions) supervises the work of exemption and non- 2. CENTRAL BOARD OF DIRECT TAXES profit organizations/ trusts across the country and the 2.1 Organization and functions Principal Chief Commissioner of Income Tax (International Taxation) supervises the work in the field The Central Board of Direct Taxes (CBDT), of International Tax and Transfer Pricing. created by the Central Boards of Revenue Act 1963, is the apex body entrusted with the responsibility of The Principal Chief Commissioners of Income administering direct tax laws in India. CBDT is the cadre Tax are assisted by Chief Commissioners, Principal controlling authority for the officers of the Indian Revenue Commissioners and Commissioners of Income Tax and Service and controlling authority for the officials of the Principal Directors General/ Directors General of Income Income Tax Department (ITD). The CBDT consists of a Tax are assisted by Principal Directors/ Additional Chairman and six members and is assisted by the Directors General of Income Tax within their jurisdictions. following Directorates: Commissioners of Income Tax posted as Commissioners of Income Tax (Appeals) perform appellate functions. i) Directorate of Income Tax (Administration & Tax Payer Services) 2.2 Media Centre (M&TP) ii) Directorate of Income Tax (Systems) I. Dissemination of information related to Direct Taxes: The Pr. CIT (M&TP), CBDT is in-charge iii) Directorate of Income Tax (Training) of the Media Centre, set up in the CBDT in August 2006. The Media Centre disseminates information iv) Directorate of Income Tax (Human Resource of public value relating to Direct Taxes through Development) the Print and Electronic Media. During the year v) Directorate of Income Tax (Vigilance) so far (from 01.04.2022 to 30.11.2022) 54 Press Releases have been issued to bring important vi) Directorate of Income Tax (Legal & Research) decisions, developments and issues related to ITD is the subordinate organization of the CBDT Direct Tax to the public notice and to highlight having jurisdiction across the country. It is divided into 18 different achievements of the CBDT and ITD. 110Department of Revenue III II. Use of Social Media in spreading awareness VDA. Gifting of VDA will also be taxed in hands and amplifying messaging around Azadi Ka of recipient. Thus, clarity in taxation of VDA has Amrit Mahotsav and Special Campaign 2.0: been provided. Awareness about all the major initiatives of the II. Updated return: To increase ease of voluntary Department, including Azadi Ka Amrit Mahotsav compliance and reduce litigation, a new provision and Special Campaign 2.0 was spread through is introduced in the Income Tax Act, 1961 (“the focused and concerted messaging through Act”), facilitating the taxpayer to be able to update Twitter. The national and the regional handles his return anytime within two years from the end altogether put out 81 Tweets (with a total of 221 of the relevant assessment year. A taxpayer can pictures/creatives and 13 videos) around Special file an updated return by voluntarily admitting Campaign 2.0, which garnered a total of omissions or mistakes and paying an additional 11,49,625 Impressions. The events held as part tax as applicable. With the long strides that ITD of the celebration of Azadi Ka Amrit Mahotsav has made in field of technological advancement were also given wide dissemination through and data sharing, there is now a huge amount of messaging on Twitter. In all, 243 tweets were put information and data available in respect of out spreading awareness about the events taxpayers. A formal mechanism of first passively celebrating Azadi Ka Amrit Mahotsav, which sharing information through AIS and then actively registered 11,78,952 impressions. sharing through e-Verification scheme has been 2.3 Direct Tax Collection recently enabled. Non-intrusive voluntary compliance through this two-pronged approach The Direct Tax Collection as on 30th November, is devised to enable access to a taxpayer of 2022 continue to register a steady growth. Direct Tax information available with the Department and Collections upto 30.11.2022 show that gross collections to nudge him to correct omissions/errors/ are at Rs. 10,93,385 crore* which is 29.66% higher than oversights allowing updating of this return of the gross collections for the corresponding period of last income. year. Direct tax collections, net refunds, stands at Rs. 8,77,470 crore which is 22.78% higher than the net III. In order to provide a level playing field between collections for the corresponding period of last year. co-operative societies and companies by This collection is 61.79% of the Budget Estimates (BE) removing the existing disparity in the rate of for Direct Taxes for the F/Y 2022-23. Minimum Alternate Tax payable by them, the rate at which the cooperative societies are required So far as the growth rate of Corporate Income to pay Alternate minimum tax has been Tax (CIT) and Personal Income Tax (PIT) in terms of reduced to fifteen per cent to bring it at par gross revenue collections is concerned the growth rate with the corporate. Further, the surcharge on co- of CIT is 27.66% while that for PIT (including STT) is operative societies has been reduced from 31.97%. After adjustment of refunds, the net growth of present 12% to 7% for those having total income CIT collections is 27.09% and that in PIT collections is of more than 1 crore upto 10 crores. 19.29% (PIT only)/18.65% (PIT including STT). IV. It may be pertinent to note that the introduction Refunds amounting to Rs. 2,15,915 crore have of the concessional taxation regime almost been issued during 30.11.2022 which is 67.82% higher coincided with the onset of the COVID-19 than refund issued during the same period in the pandemic and the subsequent Government preceding year. imposed lockdowns, Further, the second wave (*Source: Pr.CCA, CBDT) of the pandemic also struck the nation in the first quarter of FY 2021-22. The cumulative impact 2.4 Some Recent Legislative Changes in Direct of the persistence of the COVID-19 pandemic Tax Laws has resulted in delay in setting up of new domestic companies and the commencement of I. Provision for taxation of virtual digital asset manufacturing or production. In view of the (VDA): A special provision for taxation of VDA above, Finance Act, 2022 has extended the has been provided wherein income from transfer outer date of commencement of of VDA will be taxed at 30%. No deduction other manufacturing or production of an article or than cost of acquisition shall be allowed while thing for 15% concessional tax rate under computing such income. No loss is to be set off section 115BAB of the Act from 31st March, against income from such transfer. Further, loss 2023 to 31st March, 2024. from transfer of VDA cannot be set off against any income. Tax Deduction at Source (TDS) at V. TDS on benefit or perquisite: A person the rate of 1% has been provided on transfer of responsible for providing any benefit or perquisite 111Annual Report 2022-2023 to a resident carrying on business or profession treatment of himself or family member from is required to deduct tax at the rate of 10 % of an employer or from any person for treatment such benefit or perquisite if the value or of COVID-19 during financial year 2019-20 and aggregate of such benefit or perquisite exceeds subsequent years. The aim of this exemption is Rs. 20,000 during the financial year. This is to to provide relief to taxpayers who suffered on ensure that such benefit/perquisites are brought account of COVID-19 and had to incur sum for to tax. medical treatment of COVID-19 after taking help from employer or any other person. VI. Provisions pertaining to bonus stripping and dividend stripping have been made applicable XIII. In order to provide relief to the family members to securities and units of business trusts and of taxpayers who have lost their lives due to Alterative Investment Funds. Covid-19, income-tax exemption has been provided to ex-gratia payment received by family VII. Concessional tax rate of 15% on dividend members of a person from the employer of such income received by Indian company from person or from other person on the death of the specified foreign company has been withdrawn person on account of Covid-19 during FY 2019- w.e.f. assessment year 2023-24. 20 and subsequent years. The exemption is allowed without any limit for the amount received VIII. In order to widen and deepen the tax-base, it has from the employer and the exemption is limited been provided to make the provisions relating to to Rs. 10 lakh in aggregate for the amount deduction/collection at higher rates for non-filers received from any other persons. more stringent by reducing the time period for which no return has been filed from 2 years XIV. The existing provisions of the Act allow for to 1 year. deduction of hundred per cent of profit and gains of eligible start-ups for three consecutive years IX. In order to give effect to business out of ten years , beginning from the year of reorganisation, amendments were brought in incorporation, at the option of the assessee. to provide that the pending assessment or However, due to the circumstances of Covid-19 reassessment of the predecessor entity shall there had been delay in setting up of such eligible be deemed to be carried out on the successor businesses. So to lend a supporting hand to entity. Further, it has also been provided that these start-ups, the period of incorporation of modified return shall be filed by the successor the eligible start-up has been extended to entity and the Assessing Officer has been 31.03.2023. enabled to issue notice of demand, in consequence to such reorganisation. XV. Widening the scope of reporting expenditure by entertainment industry: the scope of X. Avoidance of repetitive appeals on the same reporting of payment above Rs. 50,000 has been question of law: Taking forward the policy of expanded to cover person involved in specified litigation management, a new provision (section activities such as event management, production 158AB) is made under the Act wherein if a of programs for telecast on television or over the question of law in the case of an assessee is top platforms etc, other performing arts, sports identical to a question of law pending in appeal event management etc. in addition to film before the jurisdictional High Court or the production. Supreme Court in his case or in any other case, XVI. Parity between employees of State and the filing of further appeal to the Appellate Central government: To remove disparity Tribunal or the jurisdictional High Court in the between Central government employees and case of the assessee shall be deferred till such State government employees with respect to question of law is decided by the relevant Court deduction available on employer contribution to subject to certain conditions. the National Pension System (NPS) Tier-I XI. In view of the government’s policy of Account, the tax deduction limit on employer decriminalization, provisions have been contribution has been increased from existing introduced to make initiation of prosecution 10% to 14% of salary in NPS Tier-I Account for under section 276AB of the Act ineffective State Government employees as well. from 1st April, 2022 as the underlying offences XVII. Faceless Schemes: The procedures for faceless under this section were omitted in the Act in 2002. assessment, appeal and levy of penalty under XII. Income-tax relief has been provided to the the Income-tax Act have been streamlined by amount received by a taxpayer for medical optimizing use of resources through functional 112Department of Revenue III specialization and streamlining the procedures (iii) Extension of time limits for various to enable efficient implementation. compliances under the Act in view of difficulties faced by the taxpayers due to XVIII. Streamlining of provisions related to taxation severe covid pandemic and in electronic of income of charitable institutions: The filing of various reports of audit. The ITA provisions related to charitable institutions have division of the Central Board of Direct Taxes been streamlined by aligning the provisions of was continuously monitoring the difficulties two regimes of exemption, streamlining the faced by the taxpayers in view of severe provisions related to violations of different covid pandemic and made timely provisions and providing clarifications where intervention to reduce the compliance there were ambiguities. burden of the taxpayers by exercise of its 2.5 ITA Division powers under section 119 of the Act as and when required. In this regard, Circular 01/ ITA Division of Central Board of Direct Taxes is 2022 dated 11.01.2022 was issued entrusted with the administration and interpretation of regarding extension of time limits for specified sections of the Act. The prominent ones being compliances under the Act. those pertaining to definitions, exemption u/s 10 of the Act, salaries, house property deduction under chapter (iv) Further, on consideration of difficulties faced VIA, profits and gains of business or profession, TDS by the taxpayers in filing various Audit and capital gains under the Act. It is also entrusted with Reports and Income Tax Returns for AY the responsibility of assigning jurisdiction to various 2022-23, ITA Division has issued Circular Income-tax authorities. ITA Division also deals with the No.19/2022 dated 30.09.2022 and Circular issues related to collection of Direct Taxes, allocation of No. 20/2022 dated 26.10.2022 extending the Budget Estimates targets and collection of demand. due date for compliances under the Act. I. A brief note on the significant works 2. Revised Instruction for constitution and functioning of Local Committees to deal with 1. The following measures were taken to avoid taxpayers’ grievances due to high-pitched genuine hardship and ease compliance Scrutiny Assessment: burden of the taxpayers: In line with CBDT’s policy and commitment (i) Condonation of delay under section towards providing enhanced taxpayers’ services 119(2)(b) of the Act in the filing of Form 10- and reduce taxpayers’ grievances, CBDT has IC for Assessment Year 2020-21 issued revised Instruction for constitution and With a view to avoid genuine hardship to functioning of Local Committees to deal with the domestic companies in exercising the taxpayers’ grievances arising out of high-pitched option u/s 115BAA of the Act, Circular No. Scrutiny Assessment through F.No.225/101/ 06/2022 dated 17.03.20222 was issued 2021-ITA-II, dated 23rd April, 2022. condoning delay in filing of Form 10-IC as per Rule 21AE of the Rules for the previous II. Matters pertaining to Start-Ups year relevant to A.Y 2020-21 in cases where In line with the Start up India Initiative, in order to the condition specified in Circular are provide hassle free tax environment to the Startups, CBDT satisfied. issued intimation to Startups under clause (ii) of the (ii) Condonation of delay under section provision to Section 56(2)(viib) of the Act. 1727 119(2)(b) of the Act in the filing of Form 10A intimations were issued in this period. With a view to avoid genuine hardship, the This charge runs the Startup Cell created at Board, in exercise of the powers conferred CBDT for handling redressal of grievances of Startups under section 119(2)(b) of the Act, condoned and addressing its tax related issues. During this period, the delay upto 25.11.2022 in filing Form 45 grievances were solved and disposed of. No.10A under sub-clause (i) of clause (ac) 2.6 Foreign Tax and Tax Research Division of sub-section (1) of section 12A /clause (i) of first proviso to clause (23C) of section 10/ A. India’s Active participation in work related to clause (i) of first proviso to sub-section 5 of addressing tax challenges arising from the section 80G / fifth proviso to sub-section 1 Digitalization of Economy of section 35 of the Act, which was required to be made electronically on or before I. OECD/ G20 Inclusive Framework (IF) on Base 31.03.2022. Erosion and Profit Shifting (BEPS) (consisting 113Annual Report 2022-2023 of 141 jurisdictions) has been working on finding taxation and enhance economic cooperation a solution to address the tax challenges arising between countries) with the present international from digitalization of economy under the mandate standards and the positions taken by India under of G20. The work explores technical issues to MLI. The key developments pertaining to DTAAs be resolved through two main pillars: during FY 2022-23 are as follows:  Pillar One focuses on the allocation of taxing  With an endeavour to broaden India’s treaty rights and seeks to undertake a coherent network with South American countries, and concurrent review of the profit allocation India had successfully negotiated and and nexus rules. signed a DTAA with Chile. Ratification from  Pillar Two focuses on the remaining BEPS Chile has been received this year. The issues and seeks to develop rules that would process for notifying the said agreement is provide jurisdictions with a right to “tax back” under way. where other jurisdictions have not exercised  The Hon’ble External Affairs Minister, on their primary taxing rights, or the payment 24th August, 2022 during his visit to Brazil is otherwise subject to low levels of effective has signed the Protocol in the India-Brazil taxation. It provides for tax rules that will DTAA. The process of ratification is to be ensure that large and profitable Multinational initiated after receipt of original Protocol from Enterprises (MNEs) pay a certain minimum the Mission/MEA. amount of tax on their income.  The Agreement for the Exchange of B. Negotiation of Tax Treaties – Multilateral Information and Assistance in Collection with Instrument (MLI), Double Taxation Avoidance respect to Taxes (AEI & ACT) was signed Agreements (DTAAs) and Amending between the Government of India and the Protocols: St. Vincent & the Grenadines on 19th May I. The Base Erosion & Profit Shifting (BEPS) project 2022. of OECD/G-20 for addressing tax avoidance by  Negotiations are being pursued with Algeria Multinational Enterprises included Action 15, on and Senegal to finalise the DTAA. the BEPS outcomes and minimum standards that all countries have agreed on. This is being  Negotiations are being pursued with Egypt implemented through the Multilateral Convention to finalise the revision of the existing DTAA. for Implementation of Tax Treaty Related  Negotiations to bring the India-Mauritius Measures to Prevent Base Erosion and Profit DTAA on par with the BEPS Minimum Shifting, also called as Multilateral Instrument Standard have been completed. The internal (MLI). processes to ratify the amending Protocol II. India actively participated in the BEPS project are underway. and subsequent to the ratification of the MLI on C. Coordination with other Multilateral Agencies 25.06.2019, the provisions of the MLI were notified vide Gazette Notification S.O.2887(E), i. CIAT dated 9th August 2019. The MLI entered into India is an Associate member of the Center for force in India from 01st October 2019. India had Inter American Tax Administration (CIAT), a notified 93 tax treaties in its final MLI Position. multilateral organization focused on cooperation As on 30th November 2022, 65 treaty partners between the tax administrations of different have notified their tax treaty with India in their jurisdictions to jointly combat international tax respective MLI positions. As a result, the MLI has evasion. To achieve this goal, CIAT organizes a modified/is expected to modify 65 tax treaties. range of activities, including studies, workshops, III. Steps have been taken for bilateral revision of and seminars, where tax administrators can existing treaties to make them more relevant & share their suggestions, practices, and updated by incorporating the provisions, which experiences. Through these activities, CIAT aims will align the existing treaties (Double Tax to support tax administrators in their efforts to Avoidance Agreements to prevent double promote tax compliance and prevent tax evasion. 114Department of Revenue III The 2022 CIAT Technical Conference of the Africa): BRICS is an important multilateral block Inter-American Centre of Tax Administration that seeks to represent the interests of the (CIAT) was held on 04th-06th October, 2022 in developing countries. China held the rotating Grande, Spain. The Conference was in in- chairmanship of BRICS for the year 2022 under person event with the central theme of “The which Tax Experts and Tax Heads meetings were Spaniards Tax Administration: Information and held in November, 2022. In the Tax Expert’s knowledge management to improve the meeting, experts from the Direct Taxes participated prevention and fight against fraud”. As part of the speaker sessions, the head of the and in the Tax Heads meeting, the Revenue delegation from India, Chairman, CBDT, made Secretary (designate) represented India. In the Tax a presentation on “Tax Services; Access of Heads meetings, the best Practices Reports of the information to taxpayers and updated return. BRICS nations were launched which India witnessed. In the said report, two best practices Further, a CIAT seminar on “The CIAT Centre for Technological Innovation and Advanced from India, namely, “AIS and updating of reports” Analytics applications, databases, studies and and “Faceless Tax administration” were also products generated and under development” included. was held in Granada, Spain on 7th October, E. India’s Collaboration with Forum on Tax 2022.The seminar saw session on Artificial Intelligence and tax Administration: New CIAT Administration (FTA) tools like CIAT Public Database-DIP+, toolkit I. Forum on Tax Administration is a forum for GAAR etc; and Ethics in the Tax Administration. co-operation between revenue bodies and was The seminar was attended by Chairman, CBDT. created in July 2002 at the initiative of Committee ii. CATA on Fiscal Affairs (CFA) of the OECD, with the aim India has been a member of the of promoting dialogue between tax administrations Commonwealth Association of Tax and of identifying innovative tax administration Administrators (CATA) since 1979. As a practices to increase efficiency, effectiveness and member of CATA, India has access to a range fairness of tax administration and reduce of benefits, including annual technical compliance burdens. Being a member of the FTA workshops, high-quality training programs for and its Bureau, India is an active participant in the tax officials, in-country training programs work programme of the FTA. tailored to the specific needs of members, a quarterly newsletter, consultancy services, II. India has been actively participating in the FTA research facilities, and information on request. projects such as: CATA’s activities aim to support and improve the capabilities of tax administrators in its  Effective taxation of platform sellers in sharing member countries. & gig economy. India, in association with CATA, have facilitated  Effective use of information received under successfully hosting of the ‘International Common Reporting Standard (CRS). Seminar on the Modern Techniques of Investigation and Intelligence Gathering’ at  Online Cash registers. National Academy of Direct Tax (NADT),  Expansion of Common Transmission System Nagpur in 2017, 2018 and 2020 and in July, (CTS). 2022, it was held virtually. During 2022, India has participated in 42nd Technical conference  Tax Debt Management. held in-person in Nigeria in the month of November, 2022 as well.  Joint International Task force on Shared Intelligence and Collaboration (JITSIC) etc. D. Cooperation with BRICS Countries on Tax Matters Under current work programme of the FTA, India is a member of project group for Co-operation with BRICS countries (Brazil, following projects: Russia, India, China and South 115Annual Report 2022-2023  Small and Medium sized Enterprises capacity building and provide innovative (SMEs): improving tax compliance and approaches to technical assistance, sharing of reducing burdens. expertise and best practices, development and application of technological innovations in the  BEPS Impacts and inputs. fields of taxation and anti-corruption.  Tax administration 2030. 2.7 Investigation Division III. India has been regularly participating in these During the Financial Year 2021-22, the projects through emails and virtual meetings and Government has taken several steps, by way of policy- wherever required, comments/inputs are being level initiatives and more effective enforcement actions sent to the FTA Secretariat from time to time. on the ground to tackle the issue of black money. These During the year, in-person meetings of the FTA steps include creation of more advanced systems and Bureau and the FTA Plenary were held in May, processes with due focus on capacity building and greater 2022 and September, 2022. The Revenue use of information technology. Secretary attended both the FTA Bureau and the i. Search and seizure and survey actions: Plenary meetings, being the FTA Commissioner from India. Further, India is now a part of the During F.Y. 2021-22, search and seizure actions Senior Working Group of the FTA Tax were carried out against 686 groups leading to Administration 3.0 Project, dealing with seizure of assets worth over Rs. 1150 crores. digitalisation/digital transformation of tax Whereas, during F.Y. 2022-23* (upto August, administrations, and attended the first virtual 2022), search and seizure actions were carried meeting of the Senior Working Group in out in 227 groups. The actions in these cases November, 2022. led to seizure of assets worth over Rs. 790 crores. F. Indo-Pacific Economic Framework Further, during F.Y. 2021-22, 1046 surveys were conducted leading to detection of Undisclosed I. The Indo-Pacific Economic Framework for Income over Rs. 5100 crores. Whereas, during Prosperity (IPEF) was launched jointly by USA F.Y. 2022-23* (upto August, 2022), over 335 and other partner countries including India on surveys were conducted leading to detection of May 23, 2022, at Tokyo. The Framework is Undisclosed Income over Rs. 1100 crores. structured around four pillars, relating to Trade; *Figures are provisional Supply Chains; Infrastructure, Clean Energy and Decarbonization; Fair Economy/Tax and Anti- ii. Prosecutions & compounding: Corruption. At the Ministerial Meetings held in Various measures have been taken by the ITD September, 2022, India joined 3 Pillars Supply in the recent past to strengthen the prosecution Chains (Pillar 2), Clean Economy (Pillar 3) and mechanism with a view to identify the deserving Tax & Anti-corruption (Pillar 4). prosecutable cases at the earliest and pursue II. Within Pillar 4 i.e., Tax & Anti-Corruption, IPEF the same with due seriousness. partner countries will seek to level the playing During F.Y. 2021-22, 195 prosecution complaints field for stakeholders within partner countries by were filed and 11 persons were convicted and preventing and combating corruption, curbing tax 468 cases of compounding applications were evasion, and enhancing transparency, accepted. Whereas, during F.Y. 2022-23* (upto recognizing the importance of fairness, August, 2022), 109 prosecution complaints have inclusiveness, the rule of law, accountability and been filed and 10 persons have been convicted transparency. By innovating and strengthening and 216 cases of compounding applications have shared approaches to implementing been accepted. anticorruption and tax measures, the countries * Figures are provisional. will seek to improve the investment climate and boost flows of commerce, trade, and investments iii. Actions under The Black Money (Undisclosed among our economies while advancing a free, Foreign Income and Assets) and Imposition open, and prosperous Indo-Pacific region. of Tax Act, 2015 (“the BM Act”): III. Avenues and opportunities will be explored to Recognizing the limitations of the Income-tax Act, pursue provisions and initiatives that support 1961, etc. in dealing with black money stashed 116Department of Revenue III abroad, the Government enacted a include deposits in bank accounts, plots of land, comprehensive and a more stringent new law flat etc. Provisional attachment of properties that has come into force w.e.f. 01.07.2015. As under the Act has been done in more than 2960 an outcome of the actions taken by the ITD under cases involving Benami properties of more than the BM Act, as on 31.03.2022, order u/s 10(3) Rs. 18400 crores. Further, the Adjudication were passed in 349 cases raising a cumulative Authority (First Appellate Authority under the demand of over Rs. 13500 crores (subject to PBPT Act, 1988) has confirmed the provisional fluctuations in currency conversion). Further, as attachment order in about 1900 cases involving on 31.03.2022, more than 122 prosecution Benami property of more than Rs. 6000 crores. complaints were filed under the BM Act. 2.8 Directorate of Admn. and Tax Payer Services Whereas as on 31.08.2022, order u/s 10(3) has I. Publicity Campaigns: Reaching out to been passed in about 390 cases raising Current Taxpayers: Taxation is a complex cumulative demand of over Rs. 15570 crores subject, and to reach out to taxpayers to both (subject to fluctuations in currency conversion). inform and encourage compliance, CBDT has Further, as on 31.08.2022, 125 prosecution devised interactive and engaging publicity complaints have been filed under the BM Act. campaigns on all major communication channels. iv. Actions under the Prohibition of Benami The ‘Annual Action Plan’ is approved by the Property Transactions Act, 1988 (“the Benami Hon’ble Finance Minister. This Action Plan Act”): includes publicity campaigns on TV, radio, print media, and social media accounts on Facebook, With a view to bridge the gaps and put in place Instagram, LinkedIn for awareness of Budget appropriate effective legislation, the existing Act announcements, payment of Advance Tax, filing was amended through Benami Transactions of Returns, TDS statements, Annual Information (Prohibition) Amendment Act, 2016, and came Returns and other due dates etc. into force w.e.f. 1st November 2016. The amended Act defines benami transactions and II. Publicity Campaigns: Reaching out to Future benami property. It provides for consequences Taxpayers: Taxpayer education has been found of entering into a prohibited benami transactions, to be a critical input in promoting voluntary tax which includes attachment of the benami compliance. The Income-Tax Department aims property, confiscation and prosecution of both the to ‘catch them young’ through the following benamidar and the beneficial owner. The ITD innovative initiatives: has set up 24 Benami Prohibition Units across a. Three comic characters; Jaankari Babu, Tax India for taking effective action under the Benami Pari and Taxa have recently been copyrighted Act. and are being creatively incorporated in the As an outcome of unabated actions taken by ITD, department’s media campaigns to create an the Department has (till 31.07.2022) identified organic connect with taxpayers and promote more than 4200 benami transactions. These a taxpayer friendly image. 117Annual Report 2022-2023 b. Innovative products, Augmented/ Virtual comprising “The Story of Income Tax”, “The Reality (AR/VR) games and comic books Story of Pan card” and “Tax Pari” were which educate and inform taxpayers have launched by Hon’ble Finance Minister during been developed to reach out to potential ‘Iconic Week’ on 11.06.2022 in Panaji Goa. taxpayers and build tax awareness. A series The comic books are available for download of eight comic books was proposed to on https://incometaxindia.gov.in/Pages/ actively promote tax literacy in future comic-books.aspx. taxpayers. Three digital comic books c. Two board games and 1 3D puzzle game projects. It is collaborative in nature wherein for children were also developed by the every person does their best to win together. Directorate and launched by Hon’ble Finance Minister.  The game “Snakes, Ladders and Taxes” through its well-established game pattern intends to encourage good tax practices by being rewarded instantaneously and deters bad tax practices by being penalized instantly in respect of tax events/financial transactions among the players.  The 3D puzzle game “India Gate - 3D Puzzle”uses a 3-dimensional model to intuitively teach children that a nation’s infrastructure is built on the foundation of taxes paid.  The other board game “Building India” introduces the concept of importance of paying taxes through the use of memory cards based on infrastructure and social 118Department of Revenue III The board games and 3D puzzle have been 22. It was virtually launched by the Hon’ble distributed to schools across the country by Finance Minister and dedicated to the the field formations of the Income Tax Nation. Department so as to reach the target audience. III. Samvaad- Reaching out to taxpayers and stakeholders through chat sessions: The Income Tax Department organizes interactive chat sessions with the senior officers of the department having expertise on important issues of concern to taxpayers and other stakeholders. These sessions are recorded at its in-house communication centre at Directorate of Income Tax (PR, P&P). Sessions were recorded on ‘Updated returns’, ‘e-Filing’, ‘Advance Tax’, ‘Charitable Trusts/Institutions’ and ‘Ease of doing d. Launch of Board Games, Puzzle and Business’ etc. These sessions are uploaded on Comic Books by Hon’ble Finance Minister department’s YouTube Channel and the fliers are on 11.06.2022 in Panaji Goa for our future posted on the social media handles of the taxpayers. department. The Samvaad series has received wide appreciation with the YouTube channel V. Other Outreach Activities: Other outreach having clocked close to half a million views on activities undertaken by the department and some of the talks aired. steered by the Directorate, included walkathons, cyclothons, plantation drives, cultural events, IV. Iconic Week: As a part of celebrations of Ministry Swachhta drives, yoga activities, blood donation of Finance, Iconic Week for the department was camps, seminars, felicitation of taxpayers etc. celebrated during 6th -11th June, 2022. The These were part of Azadi ka Amrit Mahotsav following events were held during the week: celebrations. These outreach activities aimed at a. Launch of Pratidhwani e-book by Hon’ble sending the message that the Department is Minister of State (Finance) on 7th June, 2022, conscious of the concerns of its taxpayers and at Civic Centre, New Delhi. This e-book stakeholders. showcases the growth and reforms in the VI. Taxpayers’ Lounge at the India International Department and development of the country Trade Fair 2022: The “India International Trade through the lens of advertisement published Fair”, with over 2500 global exhibitors offered a by the Income Tax Department during the unique platform for staging the best practices period 2000 to 2022 in print and social being adopted by the department. The Lounge media. showcased – ‘Digitalisation through the b. Launch of Aarohan e-book by Hon’ble Transparent Taxation Platform’ launched by Minister of State (Personnel & Parliamentary Hon’ble Prime Minister for ‘Honouring the Affairs) on 8th June, 2022 at Civic Centre, Honest’, comprising ‘Faceless assessments’, New Delhi. This e-book showcases the ‘Faceless appeals’, ‘Taxpayers Charter’, online contribution of different batches of Indian grievance redressal, e-filing, E-PAN, and various Revenue Service to tax administration and Taxpayer services for easing voluntary reforms undertaken since Independence. compliance. Specialised counters offered PAN/ The book is designed as a repository or e-PAN, Aadhaar PAN linking and queries related photographs of most IRS batches since to Grievance Redressal. Independence. To interact with our future taxpayers, a Children’s c. A Sand Art Sculpture was prepared live by Carnival Enclosure was designed with the Padamashri, Shri Sudarshan Patnaik along inhouse Aaycar Video Game, Augmented / Virtual with his student artists at Puri Beach in reality game “VR Nation Builders”. Kids could also Odisha. The sand art sculpture depicted the take a picture with the Department’s 3 contribution of direct taxes to national copyrighted comic character mascots- Jaankari development. The sand art sculpture also Babu, Tax Pari and Taxa. Nukkad Natak, Quiz highlighted highest direct tax collection ever Shows for adults on the themes of Taxation and at Rs.14,09,000/- Crore, during the FY 2021- Nation Building, Magic Shows, Live Caricature 119Annual Report 2022-2023 artist and drawing/painting activities were offered Returns, Refunds and Redressal of Grievances. with T Shirts, Caps and key chains as prizes. All out efforts were made to achieve maximum Mascots ‘in-costume’ i.e., Jaankari Babu and disposal of E-nivaran grievances. Out of the Taxa were hugely popular with kids and adults pending 34,493 E-nivaran cases, 21,799 cases interacting with them. were disposed off. Disposal of E-nivaran grievances during FY 2022-23 has reached upto 98.95%. 3. Central Board of Indirect Taxes and Customs (CBIC) Introduction: 3.1 The Central Board of Indirect Taxes and Customs or CBIC (erstwhile Central Board of Excise & Customs) is a part of the Department of Revenue under the Ministry of Finance, Government of India. It is the apex body for indirect tax administration. It is involved in policy formulation concerning levy and collection of Customs, Central Excise duties, Central Goods & Services Tax The lounge attracted over 7-8000 footfall on (CGST) and Inter-state Goods & Services Tax (IGST), weekdays with double the number on weekends. prevention of smuggling and administration of matters The Income Tax Department was awarded ‘Gold relating to Customs, Central Excise, CGST, IGST and Medal’ under the category Ministry and Narcotics to the extent which is under CBIC’s purview. Departments, PSU, PSB & Commodity Boards The CBIC also plays an active role in GST Council by India Trade Promotion Organisation which meetings and the associated activities of Law Committee lauded the interactive and taxpayer friendly digital which deliberates on all matters brought before the GST initiatives of the Department, showcased in the Council. Lounge. The CBIC constituted under the Central Board VII. Taxpayers’ Charter: The Taxpayers’ Charter of Revenue Act, 1963 consists of a Chairman and six 2020, defines a taxpayer’s rights and obligations Members who are Special Secretaries to the Government under the law. It specifies the Income Tax of India. The CBIC personnel supervise the functioning Department’s commitment to its taxpayers. of the subordinate formations which includes Directorates VIII. Aaykar Seva Kendras (ASKs): ASKs have been and field formations of Customs, GST Commissionerates set up under Sevottam, as per the 12th report of and Narcotics formations such as Opium factories and 2nd ARC aimed at Citizen Centric Governance the Central Revenues Control Laboratory. with the aid of modern technology. ASK is a single The field formations are mainly engaged in window mechanism for centralized receipt of collection of revenue and are spread across the country. returns, applications, grievances, in various The tax payer’s grievances are attended to by these field Income Tax Offices. Disposal of all units of the CBIC on a day to day basis. communications as well as physical returns received in ASKs can be monitored and reviewed The Board is assisted by 19 Directorates who at the highest level, through a robust e- act as adjunct offices and assist the Board in policy governance framework integrated with the formulation. Each Directorate has been assigned with a Income Tax Business Application (ITBA) for specific responsibility. The Directorate General of taxpayer interface. Revenue Intelligence (DRI) is the premier intelligence and investigation agency which collects and collates IX. E-Nivaran: In order to ensure better grievance intelligence relating to Customs duty frauds and redressal, E-Nivaran accessed through the e- smuggling. Similarly, the Directorate General of GST filing portal, is a special electronic grievance Intelligence is tasked with investigation of GST and redressal system which integrates all the online Central Excise/ Service Tax matters. Another important and physical complaints received by the directorate is the Directorate of Human Resource department. These are monitored by the Development (DGHRD) which handles all HR matters of concerned supervisory authorities. During the FY CBIC. 2022-23, a special drive was conducted under the aegis of the ‘Special Swachhata campaign After the introduction of GST in 2017, the 2.0.’ as per Hon’ble Finance Minister’s Directorate of Analytics and Risk Management (DGARM) observation for addressing three R’s namely – was created. The DGARM is engaged in data analytics 120Department of Revenue III and data mining. The results of the data analytics has • Vide Notification No. 14/2022-Central Tax dated helped in detecting large number of fake invoice cases 05.07.2022, UPI & IMPS has been provided as and has helped in augmenting GST collection. The an additional mode for payment of GST to performance of this Directorate has been commendable facilitate taxpayers and to further encourage in the previous two years. The Directorate of Performance digital payment by amending Rule 87(3) of CGST Management is tasked with evaluation of performance Rules. This will provide them flexibility and of the field formations based on laid down parameters. ease in making their GST payment. The Directorate of Audit is mandated to carry out audit • Transfer of CGST / IGST cash ledger balance which is an important tool of compliance verification. has been allowed between ‘distinct persons’ The motto of CBIC is “Desh Sevarth Kar (entities having same PAN but registered in Sanchay”. different states). 3.2 GOODS & SERVICE TAX • Facility has been provided for withdrawal of refund applications made under GST by the 3.2.1 The Constitution was amended vide the 101st taxpayers. Amendment Act, 2016, to provide concurrent powers to both Centre & States to levy GST on goods and Services • In GST, a mechanism has been prescribed for both. Subsequent to the amendment, the GST Council refund of accumulated ITC on export of electricity. comprising of the Union Finance Minister, MoS, Finance • Procedure of sanction of IGST Refund in case and Finance Ministers of all States, is empowered to make of export of goods, where the exporters have recommendations on matters related to GST Law and been identified as risky, has been tax rates. More than 17 taxes and 13 cesses have been streamlined, to expedite verification and subsumed in GST making India – “One Nation One Tax”. processing of such claims. The taxes subsumed in GST include erstwhile Central Excise duty (except on 5 petroleum products & tobacco/ • Clarifications issued on various issues related tobacco products) and Service Tax. to GST to clarify doubts and to reduce litigation 3.2.2 GST has completed more than 5 years, since its implementation. GST has revolutionized the indirect • To facilitate small taxpayers in making supply of taxation regime in India and has allowed India to achieve goods through e-commerce operators (ECOs), the goal of One Nation, One Tax. However, like every and to provide parity in intra-state offline and other law, GST is also an evolving law and Government online supply of goods, in-principal decision has been taken for waiver of requirement of has been sensitive towards the requirements of the trade mandatory registration under GST for intra-state and industry and is making necessary changes required supply of goods through ECOs. Composition in law and procedures under GST to address the concerns taxpayers would also be allowed to make intra- of the trade so as to make India a favourable destination State supply through ECOs subject to certain for investment and to enable India in achieving the Goal conditions. This will open the huge e- of “Atma Nirbhar bharat”. commerce market for the small taxpayers to 3.2.3 Following decisions have been implemented/ sell their goods without getting mandatory proposed to be implemented in GST during 2022-23: registration which will boost small businesses. A. For Easing compliances in GST and Ease of Doing Business: B. For improving compliance • Threshold for mandatory issuance of e- • To prevent fake dealers and shell companies invoice has been reduced to Rs. 10 crore from to pass on fake credit without filing their 01.10.2022. This threshold limit is proposed to GSTR3B returns and paying taxes, a provision be further reduced to Rs 5 crore in future, based introduced with effect from 01.01.2021 to block on the recommendation of the GST council. filing of GSTR-1 by a taxpayer, if 2 or more GSTR 3B returns are not filed by the said • Retrospective amendment made in section 50 taxpayer. This restriction was further tightened of CGST Act with effect from 01.07.2017 to and w.e.f. 01.01.2022, filing of GSTR-1 is not provide that interest is required to be paid on allowed unless the taxpayer has furnished the wrongly availed ITC only when the same GSTR-3B return for preceding tax period. has been availed as well as utilized. Also, rate of interest on wrongly availed and utilized ITC • Filing of GSTR-1 is made mandatory before reduced to 18% from 24% with retrospective filing of GSTR-3B for a tax period w.e.f. effect from 01.07.2017. 01.10.2022, and filing of GSTR-1 has been 121Annual Report 2022-2023 made mandatorily sequential w.e.f. functionality is expected to enhance the 01.10.2022. uniformity in examination, and lower the time taken in the process as well as reduce associated • To tackle the issue of unmatched/non- costs. To harmonize the examination orders reported invoices, Rule 36(4) was brought w.e.f across FAGs, the Board has further extended 09.10.2019 to limit the availment of input tax the Standard Examination Orders to the goods credit by the recipient to 1.2 times of the credit under Assessment Group 5 (Chapter 84). available as per details furnished by the suppliers in their GSTR-1. This limit was reduced in a iv. Implementation of Anonymized Escalation phased manner to 10% w.e.f. 01.01.2020 and Mechanism on ICEGATE which allows importers/ further to 5 % w.e.f. 01.01.2021. The same was Customs brokers to raise grievances, in delays finally brought down to zero w.e.f. 01.01.2022. in Faceless Assessment. W.e.f. 01.01.2022, the input tax credit v. IGCR Rules 2022 : Leveraging the IT driven availment has been limited to the extent of process of (Import of Goods at Concessional the details furnished by the supplier in GSTR- Rate of Duty (IGCR) procedure, more facilitation 1/IFF and which has been made available in measures were added, and the coverage has taxpayer’s GSTR-2B. been extended to cover certain end-use • Any person who is beneficiary of fake invoices notifications and Gold related schemes under this and at whose instance such transactions are procedure by bringing in Customs (Import of conducted has also been made liable for penal Goods at Concessional Rate of Duty or for action. Specified End Use) Rules, 2022 superseding the existing rules. • Aadhaar authentication made mandatory for filing application for refunds under GST. vi. Implementation of Action points mentioned in the National Trade Facilitation Action Plan 2020-23: • In GST, refund to be given in only those bank NTFAP 2020-23 contains total of 66 Action points accounts which are in name and PAN of the which have been categorized into 3 categories: applicant. Technology, Regulatory and Infrastructure. Total • Vide Notification No. 23/2022-Central Tax, the 30 action points have been completed and the implementation of rest of the action points is Competition Commission of India has been under process. empowered to handle anti profiteering cases related to GST. vii. National Time Release Study 2022 was released on 11th April 2022: National Time 3.3 Customs Release Study 2022 is a robust quantitative Reforms carried out by Customs for the year assessment of the EXIM cargo clearance 2022-23 process in the country, covering the four port categories, viz. seaport, inland container depot, i. CBIC has extended Customs clearances beyond air cargo complex and integrated check posts. normal working hours in Inland Container Major finding emerging from the National Time Depot(s) on the requirement of the trade: on a Release Study 2022 has been that there has 24 x 7 basis; on all seven (7) days of the week been a gradual reduction in the overall release (including holidays), with stipulated timings; or time for both imports as well as exports. This beyond normal working hours for specified days indicates the effectiveness of the Trade in a week and with specified timings. Facilitation reforms initiated by the CBIC to expedite the Customs clearances. ii. CBIC undertook key step in decriminalization by revised the guidelines for arrest, prosecution and 3.4 Tax Research Unit bail in relation to offences punishable under Customs Act, 1962 by enhancing the threshold All issues pertaining to rate of taxes (Customs, value limit for offences. Customs Compounding GST, Central Excise), including exemptions, are handled provisions amended making the compounding by the Tax Research Unit of CBIC. of offences more accessible and less 3.4.1 Tax Research Unit-I (GST on Goods) discretionary. A. General policy direction as regards Customs iii. CBIC implemented Standard Examination Orders duty rates to give impetus to economic in the Customs system. The said implementation growth: started for goods covered under Assessment Group 4 in all the Customs Stations. This A1. In recent years, the Customs duty rate structure 122Department of Revenue III has been guided by principles/ objectives as  Finished items of consumption attract higher under: duty, e.g., items like mobile, television, air- conditioner, refrigerators, washing machine,  To incentivize domestic manufacturing with furniture, jewellery, including imitation increased value addition under Make in jewellery, watches, toys attract higher BCD. India and Atma Nirbhar Bharat schemes, which interalia envisages imposition of lower  In Union Budget 2022-23, the Phased duty on raw materials and provide manufacturing Programme (PMPs) on smart reasonable tariff support to goods being watches, hearable devices and smart manufactured in India. Accordingly, Basic meters were notified to promote Customs Duty (BCD) rates have been manufacturing of these high-technology calibrated. electronic goods.  To complement the schemes devised by  The BCD rates of solar cells and modules various ministries, this office has designed were increased from ‘Nil’ to 25% and 40% graded BCD structure under various Phased respectively to incentivize local Manufacturing Programmes (PMPs) manufacturing of these goods. designed by different ministries viz. for  Towards providing a level playing field for cellular mobile phones, electric vehicles, domestic manufacturers, particularly in the X-ray machines, wearable devices (smart MSME sector, import duty was increased on watches), hearable devices (wireless umbrellas and parts of toys in the Union earphones, bluetooth speakers etc), and Budget 2022-23, while concessional rates smart meters. in capital goods and project imports for sectors such as textiles, petroleum, power,  To provide level adequate protection to leather etc been provided a gradual phase- farmers through tariff barrier on agricultural out taking their rates to a moderate tariff of produce, 7.5%.  To rectify inversions in duty structure.  A comprehensive review of Customs duty  To allow Strategic imports like defence exemptions was undertaken in the Union goods not produced locally at concessional Budget 2022-23 through a process of crowd duty. sourcing and taking inputs from various ministries and about 350 exemptions were  To discourage import of non-essential withdrawn. items.  The Customs tariff was simplified by moving  To prescribe trade remedial duties, like unconditional concessional rates from anti-dumping duty, CVD, safeguard duty on notifications to the schedule to the Customs dumped and subsidized imports causing Tariff Act, thus making the import duty rates injury to the domestic industry. on several sectors like textiles, chemicals and metals to essentially operate through  To encourage exports, by making available tariff schedule the raw material at Nil customs duty and allowing refunds of duty/taxes on inputs.  To control the rising prices of essential Prominently, gems and jewellery sector, commodities like edible oils, the textiles, pharma, leather goods, electronics, Government reduced the customs duty rates fisheries, agriculture have been benefitted multiple times over the last year and has by such initiatives relating to exports. extended this concessional duty structure till 31st March, 2023. In the same vein, the A2. Basic Customs Duty structure consequent to effective import duties on Lentils (Mosur), a adoption of the above guiding principles for key food item, was reduced to Nil to arrest inducing economic growth in India: food inflation.  Generally basic customs duty rates of Nil/  In May 2022, the Central 2.5%/5%/7.5% are applied on the inputs/ government reduced import duty on imports intermediate products (other than for of raw materials of Steel like Coal, Coke and agriculture and textiles) used for Ferro-nickel in order to reduce the cost of manufacture of finished goods/intermediate domestic production of steel products. The goods. duty was restored recently. 123Annual Report 2022-2023  To augment domestic availability export duty in-India and promotion of ease of doing business during was imposed on Ores and concentrates and the FY 2022-23: specified steel products A. Rationalization of GST Rates of Services  Concerted efforts have also been made to A1 Following changes have been made in remove inversions in duty structure. Notification No. 11/2017-CT (Rate) dated B. The Goods and Services Tax: 28.06.2017: B1: GST rates for Goods I. GST rate on transport of goods and passengers by ropeways has been reduced  GST rates are prescribed based on the from 18% to 5% (with ITC of services) recommendations of the GST Council which is a constitutional body comprising of II. GST rate of renting of goods carriage with members from both the central government operator where cost of fuel is included in and state governments. consideration has been reduced from 18% to 12%.  Based on the decisions of the 47th Meeting of the GST Council held in June 2022, the III. GST rate on Services supplied by a foreman GST rates on ostomy appliances and some of a chit fund in relation to chit has been specified orthopaedic appliances like changed from 12% to 18%. implants were reduced from 12% to 5% IV. GST rate on Job work in relation to providing relief in health care costs. processing of hides, skins and leather has  IGST on import of Diethylcarbamazine been changed from 5% to 12%. (DEC) tablets supplied free of cost for V. GST rate on Job work in relation to National Filariasis Elimination Programme manufacture of leather goods or footwear was fully exempted. has been changed from 5% to 12%.  Based on the recommendation of the Group VI. GST rate on Job work in relation to of Ministers (GoM) on Rate Rationalization, manufacture of clary bricks has been the GST Council decision in its 47th Meeting changed from 5% to 12%. of the GST Council, the GST rates were calibrated in July, 2022 on various goods like A2 Exemptions on following services have been LED lamps, specific machinery, solar water withdrawn to correct the inverted duty structure heaters, specific kinds of leather goods and allow seamless flow of Input tax credit: etc to remove inversion in duty structure. I. Services by the Reserve Bank of India.  As per the GoM recommendations, a few II. Services provided by Insurance Regulatory exemptions and concessional rates provided and Development Authority to insurers. in GST were also pruned, with respect to few goods. With respect to specific food III. Services provided by Securities and items, the scope of exemption was pruned Exchange Board of India (SEBI) to exclude the goods sold in pre-packaged and pre-labelled retail packs. IV. Services provided by the Goods and Services Tax Network (GSTN) to C. Central excise duty on Diesel and petrol Government for implementation of Goods and Services Tax C1 Excise duty rates: V. Transport of passengers by air in other than  To soften the impact of increasing economy class embarking from or international prices of crude which led to a sharp rise in retail selling price of petrol and terminating in an airport located in NE states diesel, the Road and Infrastructure Cess and Bagdogra. (RIC) was reduced by Rs 8 per litre for Petrol VI. Services by way of storage or warehousing and Rs 6 for Diesel. These prices came into of commodities which attract tax (nuts, effect from 22nd May, 2022. spices, copra, jaggery, cotton etc.) 3.4.2 Tax Research Unit-II (GST on Services) VII. Services by way of transportation by rail or a Following measures have been taken towards vessel from one place in India to another, of rationalization of GST Rates, Atma-nirbhar Bharat, Make- railway equipment or materials. 124Department of Revenue III VIII. Services by way of hotel accommodation 3.5 International Customs Division (ICD) priced up to Rs. 1000 per day per unit. (i) Agreement between the Government of the IX. Services provided by a clinical Republic of India and the Government of the Republic of establishment, an authorized medical the Philippines on Co-operation and Mutual Assistance practitioner, or paramedics by way of room in Customs Matters was signed on 24th April, 2022. The (other than ICU) in the clinical establishment Agreement aims to enhance cooperation between the for which total amount charged exceeds Rs. two Customs Administrations benefitting both the countries. 5000 per patient per day. (ii) Vide notification No. 39/2022-Customs (N.T.) X. Services provided by operators of common dated 30.04.2022, CBIC has notified the Customs Tariff biomedical waste treatmentfacility by way (Determination of Origin of Goods under the of treatment or disposal of biomedical waste Comprehensive Economic Partnership Agreement or the processes incidental thereto. between India and United Arab Emirates) Rules, 2022. XI. Entry 23A of Notification No. 12/2017- CT(R) (iii) CBIC endeavours to replace the system of paper which exempts service by way of access to certificates of origin (COO) used for preferential trade to a road or a bridge on payment of annuity e-COO. In the new trade agreements, use of e-COO is has been deleted w.e.f 01.01.2023. being introduced, while for the old FTAs, discussions have A3 Other miscellaneous changes: been initiated with partner countries. Vide Instruction No. 28/2022-Customs dated 27.10.2022, a mechanism for I. All taxable service of Department of Posts accepting e-COO has been provided. In addition, CBIC would be subject to forward charge with is at an advance stage of development of the Electronic effect from 18.07.2022. Hitherto certain Origin Data Exchange System (EODES) with Korea. taxable services of Department of post were (iv) In order to leverage the vast network of post taxed on reverse charge basis. offices across the country and enable MSME’s (Micro, II. In case of tour conducted for a foreign tourist Small and Medium Enterprises) to export to global (person located outside India), partially in markets using e-commerce or other regular channels, India and partially outside India, the value the CBIC in collaboration with the Department of Posts of tour operator service, for the purpose of (DoP) has notified the Postal Exports (Electronic levy of tax, shall be proportionate to the Declaration and Processing) Regulations, 2022. Under number of days of Indian components of the new system, an exporter need not visit a Foreign Post such tour, provided that the taxable value of Office (FPO) to file the Postal Bill of Export (PBE) rather, he may file the PBE online from his home/office and supply shall not be less than 50% of the total handover the export parcel to postal authorities at a consideration charged for such a tour, nearby booking post office. Postal authorities shall including the component outside India. arrange secure transport of export parcel from booking III. Goods transport agency (GTA) has been post office to an FPO, where customs clearance shall given option to GST at 5% or 12% under take place. forward charge; option to be exercised at (v) Vide Circular No. 09/2022-Customs dated the beginning of Financial Year. RCM option 30.06.2022, CBIC has put in place a simplified regulatory also continues. framework for e-Commerce exports of jewellery via International Courier Terminals (ICTs). To accommodate B. Exemption from levy of GST the e-commerce business need, it incorporates a re- I. Services by the Department of Posts by way import process for return of jewellery. For this purpose, of post card, inland letter, book post and the Courier Import and Exports (Electronic Declaration ordinary post (envelopes weighing less than and Processing) Regulations, 2010 have been amended 10 grams) have been exempted from GST vide Notification No. 57/2022-Customs (N.T.) dated irrespective of whether the recipient is an 30.06.2022. individual or a business entity. (vi) Circular No.08/2022-Customs dated 17.05.2022 C. Issuance of Clarification: has been issued to enable exports from Bangladesh to India by rail in closed containers, with clearance at In addition, various clarification regarding hinterland ICDs. A transhipment module has also been implementation of GST have been issued from time to developed in the Indian Customs EDI System to digitize time to ensure uniformity in accordance with the the procedure. This would decongest the border trade recommendation of GST Council. points and facilitate Bangladesh’s exports. 125Annual Report 2022-2023 (vii) Vide Circular No. 17/2022-Customs dated a) Notification No. 01/2022-Service Tax dt. 09.09.2022, CBIC has enabled export of containerized 16.12.2022 has been issued by the Central cargo from any Inland Container Depot (ICD) to Government to the effect that service tax payable Bangladesh using a combination of rail/road route and under Section 66B of the Finance Act, 1994, on riverine route. the “light-dues” collected by the Directorate General of Lighthouses and Lightships under the (viii) With a view to leveraging the potential of Inland Lighthouse Act, 1927 for the period from Waterways for enhancing trade and transit, CBIC has 01.07.2012 to 30.06.2017 shall not be required allowed movement of containerized export goods of to be paid Bangladesh through India using a combination of riverine and rail routes. This facility, allowed vide Circular No. 19/ b) Notification No.3/2022-Central Excise (N.T) dt. 2022-Customs dated 14.09.2022, involves entry of 20.07.2022 has been issued for the purpose of containerized cargo on a barge/vessel from Bangladesh transfer of appeals filed after the 30th June 2017 into India up to the sea port of Kolkata or Haldia using the riverine route. From the sea port of Kolkata or Haldia, c) Notification No.4/2022—Central Excise (N.T) dt. the goods will travel by rail to the sea port of Nhava Sheva 1.12.2022 has been issued for appointment of or Mundra for final export to third countries by sea route. the Commissioner of Central Excise and Service The Circular lays down detailed procedure and Tax (Appeals) as Central Excise Officer for the documentation and provides for track and trace facility entire territorial jurisdiction of the Principal Chief using ECTS (Electronic Cargo Tracking System). This Commissioner/Chief Commissioner of Central arrangement is expected to save time and cost for the Excise and Service Tax for the purpose of traders by providing an alternate and more efficient trade passing orders-in- Appeal for the CX & ST route. appeals filed after 30.6.2017 (ix) Vide Notification No. 112/2022-Customs (N.T.) d) Circular No.4/2022—Central Excise (N.T) dt. dated 22nd December, 2022, CBIC gave effect to the 1.12.2022 issued for withdrawal of Circular No. Rules of Origin (Chapter 4) of the India-Australia 1027/15/2016-CX dated 25.04.2016 regarding Economic Cooperation and Trade Agreement (India- excisability of waste/residue arising during the Australia ECTA). process of Manufacture 3.6 CENTRAL EXCISE e) Instruction CBIC-240137/14/2022-Service Tax- CBEC dt. 28.10.202 regarding Pre-deposit The Central Excise and Service Tax Wing deals payment method for cases pertaining to Central with the policy issues related to Central Excise and legacy Excise and Service Tax issued issues of Central Excise & Service tax. With the implementation of GST w.e.f. 01.07.2017, the Chapter V f) Instruction CBIC-110267/75/2022-CX.VIII dt. of the Finance Act, 1994, is omitted and the Central Excise 6.10.2022 on Sabka Vishwas (Legacy Dispute Act, 1944 (except as respects goods included in entry 84 Resolution) Scheme 2019 of the Union List of the Seventh Schedule to the Constitution), is repealed and there are only 6 g) Instruction No. 267/55/2020-CX.8(Pt.) dt. Commodities viz. (5 Petroleum Products) Crude Oil, 30.5.2022 regarding manual processing of Diesel, Petrol, Natural Gas, Air Turbine Fuel and Tobacco declarations filed by co-notices under Sabka Products on which Central Excise duty is being levied. Vishwas (Legacy Dispute Resolution) Scheme 2019 issued.” The Budgetary Support Scheme under GST was notified by the Department of Promotion of Industry and 3.7 DRAWBACK Internal Trade, Ministry of Commerce & Industry and is 3.7.1 Functioning of Drawback Division being implemented by CX Wing in CBIC. It covers Union Territory of J&K, Himachal Pradesh, Uttarakhand and Drawback Division in CBIC aims to facilitate trade North Eastern States (Arunachal Pradesh, Assam, and enhance ease of doing business while balancing the Manipur, Meghalaya, Mizoram, Nagaland and Tripura need for compliance and enforcement of Customs laws. including Sikkim). It provides budgetary support to the It performs the following functions: eligible units under erstwhile Area-based Exemption (i) Fixation of All Industry Rates under Duty Scheme and were availing benefits under the respective Drawback scheme, which is a key scheme to central excise exemption notification in the erstwhile rebate the incidence of Customs and Central regime of Central Excise taxation. Excise duties on export products so as make During the current financial year, the Notifications/ country’s exports zero-rated and competitive in Circulars/Instructions issued by the Wing are as follows: international markets. 126Department of Revenue III (ii) Monitoring of sanction and disbursal of drawback (Drawback) was designated as the Secretary to by the field formations; and the Committee and Drawback Division served as secretariat. It being a DOC scheme, ceiling (iii) Monitoring along with DGFT of the functioning rates/caps under the scheme were notified by of all Export Promotion schemes except SEZ, the Department of Commerce/DGFT based on EOU and Gems and Jewellery schemes, which recommendations of the RoDTEP Committee are monitored by the DGEP. and discussion with DoR. Subsequent to (iv) Fixation of rates for other schemes like Rebate submission of its final report on 15.03.2021, the of State and Central Taxes and Levies (RoSCTL) Committee was reconstituted on 18.10.2021 to and Remission of Duties and Taxes on Exported examine anomalies and determination of ceiling Products (RoDTEP). rates for SEZ/EOU/Advance Authorization clients. The Committee has submitted its final 3.7.2 Important items of work accomplished by the report on anomalies on dated 20.07.2022 which Drawback Division of CBIC during the period 01.01.2022 was forwarded to DoC on 06.10.2022. to 30.11.2022 are as follows: f. Formulation of Budgetary mechanism: As per a. Notification No. 37/2022 dated 30.06.2022 issued directions from Ministry, Drawback Division has vide which exemption from Integrated tax (IGST) successfully brought all the scrip-based export and Compensation Cess (C.cess) for import of promotion schemes under budgetary materials under the AA/EPCG Scheme, which mechanism. was allowed on 13.10.2017 initially for the period upto 31.03.2018 and has been subsequently 3.8 CUSTOMS INVESTIGATION WING extended from time to time, is made available The office of Commissioner Investigation beyond 30.06.2022. (Customs), CBIC deals Policy matters relating to Search, b. Notification No. 75/2022-Customs (NT) dated Seizure, Arrest, Summons, Prosecution and 14th September, 2022 has been issued to amend compounding offences under Customs Act 1962 [ All RoDTEP Notification No. 76/2021-Customs(N.T.) legislative matters relating to Chapter XIII, XIV and XVI dated 23.09.2021. The effect of these of the Customs Act, 1962]. This office also deals with amendments is the deletion of certain conditions matters related to Disposal of various seized and related to transferee-holder of the scrip. Further confiscated goods including Gold and Narcotics, MLAT Circular No. 21/2022-Customs dated 26th requests, Prosecution of officers under Customs Act, September, 2022 has been issued for clarification Presidential Awards, Rewards to officers as well as in this regard. informers, NCORD, Election matters and matter pertaining to FATF Cell in CBIC. c. Notification No. 76/2022-Customs (NT) dated 14th September, 2022 has been issued to amend The major activities and policy decisions taken by RoSCTL notification. No. 77/2021-Customs this office: (N.T.) dated 24.09.2021. The effect of these  Mass destruction of Narcotics on ‘Drug amendments is the deletion of certain conditions Destruction Day’ 08.06.2022: As a part of the related to transferee-holder of the scrip. Further Azadi ka Amrit Mahotsav (AKAM) celebrations, Circular No. 22/2022-Customs dated 26th Ministry of Finance celebrated the Iconic Week September, 2022 has been issued for clarification from 06.06.2022 to 12.06.2022. Within the said in this regard week, 08.06.2022, was earmarked as ‘Drug d. Notification No. 79/2022-Customs (NT) dated Destruction Day’. A total of 44 MTS of assorted 15th September, 2022 has been issued vide which drugs (Ganja, Heroin, Methamphetamine, the Electronic Duty Credit Ledger (Amendment) Cocaine, Charas, MDMA, Tablets, Cough syrup, Regulations, 2022, were modified to the extent Injections etc.), were destroyed during the of validity of e-scrip issued under the EDCL initiative. The actual destruction was presided by Regulations from 1 year to 2 year from the date Hon’ble Finance Minister via VC. of its generation. Further Circular Nos. 21/2022 and 22/2022 both dated 26.09.2022 have been  The Controlled Delivery (Customs) issued for clarification in this regard. Regulations, 2022: Section 109A- Power to undertake Controlled delivery into the Customs e. RoDTEP Scheme: Government has constituted Act, 1962 was inserted in Customs Act, 1962 vide a committee for determination of ceiling rates Finance Act, 2018 empowering Customs officers under Remission of Duties and Taxes on Export to undertake controlled delivery of a consignment Products (RoDTEP) Scheme. Joint secretary of goods for the purpose of identifying the 127Annual Report 2022-2023 persons involved in the commission of the collection, bank finance and money laundering. offence or contravention. In this regard, Government from time to time has taken several Controlled Delivery (Customs) Regulations 2022 measures to prevent GST related offences, were issued vide Notification No. 59/2022- which include using robust data analytics and Customs (N.T) dated 12.07.2022. artificial intelligence to identify and track risky taxpayers and detect tax evasion and sharing of  Passenger Name Record Information data with partner law enforcement agencies for Regulations 2022: Passenger Name Record more targeted interventions. A total no. of 12574 (PNR) data along with APIS data is a significant and 8960 cases involving amount of Rs. 73238 tool for passenger risk profiling. India being a Cr. and Rs. 76515 Cr. have been booked for GST party to Chicago Convention and is under evasion on various counts during 2021-22 and obligation to develop capacity for collection, 2022-23 (upto November, 2022) respectively. usage and protection of PNR Data. Finance Act, Amount realized / recovered during the 2017 had introduced legal provisions in the corresponding period was Rs. 25157 Cr. and Rs. Customs Act, 1962 mandating the collection of 21085 Cr., respectively. Further, 342 and 131 no. PNR data. Accordingly, Passenger Name of people have also been arrested during this Record Information Regulations 2022 were period respectively. issued vide Notification No. 67/2022-Customs (N.T) dated 08.08.2022. (b) Transparency and Streamlining enforcement action:  Revision of monetary limits for launching of Prosecution in relation to offences CBIC has issued three instructions during the punishable under the Customs Act, 1962: year 2022-23 on ‘arrests and bail’, ‘summons’, With reference to decriminalization of tax laws and ‘prosecution’ to streamline enforcement emanating from Meeting of Committee of action by its field formations. These instructions Secretaries, the monetary limits of various have been issued with the intent to maintain the offences under the Customs Act, 1962 were uniformity of practice, sensitize field officers and revised. Accordingly, the monetary limits were also to provide transparency in the tax revised vide Circular 12/2022-Customs dated administration. 16.08.2022 for launching of Prosecution in The essence of the instructions on Arrest is relation to offences punishable under the that power to arrest should be exercised Customs Act, 1962 and concomitantly, thresholds judiciously. The arrest should not be made in for revisions of Arrest and Bail were also routine and mechanical manner and reasons to enhanced vide the Circular 13/2022-Customs believe to place a person under arrest should be dated 16.08.2022. unambiguous and recorded in writing. Further, 3.9 GST INVESTIGATION WING arrest should not be resorted to in cases of technical nature. Similarly, instructions on GST Investigation wing of CBIC was created by launching Prosecution under the CGST Act have Instruction No. 01/2018 on 10th September, 2018. Its main been issued for prescribing uniform procedure work is related to deal with policy issues including and time-lines for each step. Further, for twin legislative matters concerning enforcement aspect viz. purposes of optimal utilization of resources search, seizure, arrest, prosecution and compounding available with the department and Government’s under CGST Act, 2017 which eventually refers to GST intention of de-criminalization of laws, launching Policy wing for further implementation. It monitors the of prosecution has been restricted to cases work of DGGI and GST field formations in respect of involving more than Rs. 5 Cr. excluding arrest investigation of cases booked and related reports. It also cases. This effectively decriminalizes certain coordinates with DGARM and DGGI in analysing and offences involving duty less than Rs. 5 cr even disseminating intelligence to field formations. when the same attracts prosecution as per Act. Various activities under taken during this period The instructions on Summons as a measure to are as under: - secure the presence of a person, accused or (a) Government has taken several effective witness, also seeks to streamline the process to measures to curb the GST evasion including ensure that exercise of such power is done menace of fraudulent Input Tax Credit (ITC) judiciously and with due consideration. availment based on fake invoices without actual (c) With the change in the outlook of preventive work, supply of goods and/or services. Besides denting which evolves with the changing trade and GST revenue, it has a bearing on Income Tax industry landscape, as well as the transformed 128Department of Revenue III legal landscape of indirect taxes, the need arises Directorate Heads was launched by to prepare a comprehensive manual for GST Chairman CBIC on 17th March, 2022. It Intelligence and Investigation work. A provides a focused approach to employee comprehensive document covering various development and infrastructure expansion Standard Operating Procedures and instructions in order to harness the Human Resources is being codified in this regard. The same is as a strategic partner in the symbiotic presently being finalized and shall be published process of organizational growth and Nation shortly. building. It augments the HR Management of CBIC by providing real-time information 3.10 The Directorate General of Human Resource pertaining to all four wings of DGHRD. The Development (DGHRD) portal is accessible to all Zonal Chief With a view to providing a more focused cadre Commissioners/ Directors General and they management including time bound career progression can obtain various reports such as Missing APARs, APAR Cycle Pendency, Number of in all grades and infrastructure expansion in order to APAR Representations at Zonal Level and catalyze the Human Resource functions as an engine of Monitoring of Comments/ replies on Service progress, the Directorate of Human Resource Matters. Development (HRD) was set up in November, 2008 by merging the erstwhile Directorate of Organization (iv) E-Pratiniyukti – A portal for streamlining and &Personnel Management and Directorate General of expediting the deputation process for Group Housing &Welfare. The new formation was operational A officers has been launched in Sept, 2020. w.e.f. 1st December, 2008. Presently, there are four wings Since it’s launch, 1510 applications for in DGHRD namely HRM-I, HRM-II, Infrastructure & deputation have been successfully Welfare (I&W) and Expenditure Management Cell (EMC). processed within prescribed time limits in the I. Performance and achievements of HRM-I e-pratiniyukti module till November, 2022. Wing during the year 2022-23 (up to (v) Recruitment Rules (RRs) notified during November 2022): During the year 2022, 2022-23 –Recruitment Rules have been following major initiatives have been taken by DG notified for the post of LDC in Field (HRM): - Formations, MTS in Field Formations, (i) SPARROW-IRS Module: For online writing Additional Assistant Director in Directorates, of APAR of Group ‘A’ IRS officers of Central Tax Assistant in Directorates, Tax Assistant Board of Indirect Taxes and Customs in Field Formations and Executive Assistant (CBIC), SPARROW-IRS Module was (Directorates). successfully implemented w.e.f A.Y. 2016- (vi) Amendments in Recruitment Rules from 17. For the Assessment Year 2021-22, total 2022-23 –Various Recruitment Rules have 6700 (approx.) APARs/NRCs/Foreign been amended during 2022-23 period in Assignment have been generated in wake of the changing requirements and SPARROW module. It also enables the nature of work under various Grades such online submission of IPRs by the officers. as Gr-C posts of Directorates viz. MTS, (ii) In SPARROW-CBIC project, for online Steno Gr-II, LDC, Havaldar and Head writing of APAR of Group B and C officers Havaldar, Havaldar in Field formations, (Grade Pay 1900 and above) of Central Havaldar in Directorates, Steno GR-I in Board of Indirect Taxes and Customs Directorates and Executive Assistant in Field (CBIC), was successfully implemented w.e.f Formations. F.Y. 2018-19 and covered more than 50,000 II. Performance and Achievements of HRM-II Officers/Staff (Head Havaldar and above) of wing of DGHRD CBIC. Havaldars and MTS being the feeder grade/ cadre for further promotion to the (i) Half-Year Booklet was finalized (as on grades where APARs were already being 01.07.2022). written online, a need was felt that their APARs also need to be written online. The (ii) Finalization of SOP for Physical Examination mapping has now been extended upto Test/Physical Standard Test (PET/PST) for Hawaldar and MTS also. the post of Havaldar-2021 examination. (iii) Aadharshila, a portal for monitoring of HRD (iii) Recruitment Drive was conducted on related priorities and timelines by Zonal/ Mission Mode. 129Annual Report 2022-2023 (iv) Civil List 2022 : Civil List of IRS (C and IT) 2022-23, out of the total allocation of Rs.1200 crore under officers as on 1st day of January 2022 was Capital Heads (4059 & 4216) an amount of Rs. 1033.15 released by CBIC. It comprises basic Cr. has been released till 30.11.2022. information including color photographs of Major infrastructure proposals sanctioned/ the officers. Also, a symbolic depiction of a ongoing are Construction of new NACIN complex at medal against the names of Presidential Hindupur, Palasamundram (A.P), Office complex and Awardees and Picture gallery of past residential quarters at Customs Enclave Plot, Wadala, Chairpersons of CBIC, have been Mumbai, residential qtrs. at Anna Nagar, Chennai, incorporated therein. residential qtrs. at Dwarka, residential quarters at (v) The database of Group A officers was Nungambakkam, Chennai, purchase of land for updated and Comprehensive database of construction of office for CGST formations at Noida. The Group ‘B’ & ‘C’ Officers was created. project of construction of 187 residential quarters at Kharghar, Mumbai at a cost of Rs. 110.11 Cr. has been (vi) AGT- 2022: Total 1193 representations of recently completed and was inaugurated by Hon’ble Group A Officers for AGT 2022 and Post Finance Minister on 14.09.2022. Special initiatives have AGT 2022 were received till date. The been taken with reference to development of North- compiled data was placed before the Eastern Region and Sikkim such as Construction of office placement committee and Orders for 729 building at Agartala, office-cum-residence complex at officers were issued till date. Shillong and proposal of construction of office building at (vii) e-HRMS: As part of “Navachar” initiative, Imphal. the CBIC has decided to implement C. Welfare electronic Human Resource Management System. HRM-II has been made resource The Customs & Central Excise Welfare Fund owner for e-HRMS. DoPT is nodal agency was created with the sanction of Hon’ble President of for implementation and NIC is the technical India in 1987 for the purpose of financing various welfare partner for designing, development and schemes for promotion of welfare of staff and their implementation of e-HRMS. At present two families. The Fund is financed by transfer of 5 % of the Zones, Delhi and Panchkula are selected sale proceeds of confiscated goods credited to the Government and Customs/Excise Duties, fines, penalties for implementation of the project on pilot in offence cases realized and sustained in appeal/revision basis. etc. (viii)E-vacancy module: This module replaced A number of welfare schemes are being the manual system of reporting of data implemented for staff welfare under the aegis of Customs regarding Direct Recruitment Vacancies in & Central Excise Welfare Fund. A thorough revision of respect of all Cadres by the CCAs. This most of the welfare schemes has been completed, where- has saved time and also ensured accuracy after not only the schemes have been updated and in compilation of data. rationalized with changing times but amounts granted (ix) Development of e-Preference Module: under the schemes have also substantially enhanced both This module enables online collection and in cases of the schemes targeted for benefits of compilation of preferences from individual individuals and as well for procuring energy efficient and candidates (selected under CGLE and latest technology gadgets/items for setting up of common Stenographer I and II examinations) which facilities. Facilities such as Medical Assistance, Ex-gratia was tedious and time taking process prior assistance to the families of deceased officers, financial to the e-preference module. assistance to the needy Persons with Disability (PwD), Cash Awards to the meritorious children of Departmental (x) Completion of zonal allocation of officials, Cash Awards for winning Medals/Civilian awards candidates under CGLE & Steno- I&II in sports and assistance for participation in sports events, 2019 & 2020 Setting up/ refurbishing of Departmental Guest Houses, Departmental Gyms/ Recreation/ Sports centres, B. Infrastructure Division: Departmental Canteens/ Kitchenettes, creche facilities, DGHRD (Infrastructure Wing) deals with the Preventive and Welfare measures for fighting against infrastructure issues of CBIC including purchase of land, COVID-19 were undertaken under the welfare fund. construction of office buildings and residential D. Expenditure Management Wing accommodation, purchase of ready-built accommodation, repair and maintenance of buildings and other The Expenditure Management Cell is mandated infrastructure related issues. During current F.Y. to act as the Nodal Authority in respect of all Budget 130Department of Revenue III related matters for the Grant No. 37 – Indirect Taxes. 3.11 The Directorate General of Taxpayer Services This year BE was Rs. 9948.46 crore (excluding scrips- (DGTS) based schemes). The funds in BE issued in time as result In terms of Board’s Order No. 02/Ad.IV/2015 of which the utilization of funds upto 30.11.2022 is Rs dated 27.8.2015, the Directorate General of Taxpayer 6026.87 crore which is 60.58 % of the total available Services (DGTS) is entrusted with the task of coordinating budget. taxpayer services and publicity and information EMC wing in collaboration with NIC, developed a dissemination requirements of the CBIC. It is dedicated BEAMS Software with an aim to streamline headquartered at New Delhi with zonal offices at budget estimation, allocation and monitoring of Ahmedabad, Bengaluru, Chennai, Kolkata and Mumbai. expenditure. BEAMS Software replaces manual PUBLICITY monitoring exercise of allocation and expenditure of Budget with an online system. BEAMS is a very unique Publicity Activities till 30.11.2022 during F.Y. 2022-23 application as no other Central Ministry/ Department is a) During the Iconic Week of AKAM celebrations, currently using such an application and it will be in line 07 teasers and 02 documentary videos with CBIC’s focus on paperless work and promoting digital showcasing Customs & GST historic Museum governance. BEAMS marks a generational shift from the ‘Dharohar’ Goa were prepared and released. The manual monitoring exercise of budget to a more museum was rededicated to the nation by systematic online process. The Software can generate Hon’ble Finance Minister. various kind of MIS reports which can be of great use in b) The GST regime completed 05 successful years monitoring expenditure trend and envisaging Budget on 01.07.2022. To publicize this occasion and Estimates. This module brings together all the make public aware about the latest achievements stakeholders viz 68 Budget Control Authority’s (BCAs), under the GST regime, produced 04 teasers and 400 Head of Department’s (HODs) and over 1200 01 short-video on the occasion of completion of Drawing and Disbursing officer’s (DDOs). It will be a single 5 years of GST along with a logo and 10 creatives platform for swifter and seamless processing of all were processed which were circulated to the field matters related to CBIC’s Budget. All efforts are being formations and on social media platforms. made to train field formations to utilize the benefits of the c) DGTS has worked as an interface between the application. This software is fully functional w.e.f. Board and field formations in organizing the Azadi 01.04.2021. ka Amrit Mahotsav (AKAM) commemorating the The efforts are being made to integrate PFMS 75 years of Independence of India. In this regard and BEAMS applications so that real time data is available approx. 50 creatives were prepared and shared in respect of expenditure booked by various BCAs. with field formations on various events i.e. Recently, a meeting has been held between NIC team Commemorating the martyrs of the Jallianwala and office of Pr. CCA to work out modalities to integrate Bagh massacre; World Environment day; International Yoga Day; Quit India Movement; etc. PFMS and BEAMS. 131Annual Report 2022-2023 d) Participation in the 41st India International Trade 320 Creatives were released through social media sites Fair organized by ITPO from 14.11.2022 to Twitter and Facebook covering varied topics related to 27.11.2022. AEO; Azadi ka Amrit Mahotsav (AKAM); Clarification on GST; Deferred Payment of Duty; e-Invoice; GST Refunds; e) For educating and increasing taxpayers’ HSN Code; GST Returns; Trade Friendly Initiatives by awareness in an effective manner, webinars are CBIC; Turant Customs; 46th & 47th GST Council Meeting;. conducted regularly by DGTS Zonal units in GST Day, 2022; Rozgar Mela; CAAR; Dharohar; Special association with field formations and trade Drive for destruction of Drugs; Special Drive for organization (FICCI, ASSOCHAM, CII, etc.). cleanliness in office premises undertaken by CBIC under Some of the topics covered are: Swachhta 2.0; etc. i) E-invoicing processes in GST and Technical/ (Projection till 31.03.2023) System related aspects in GST e-invoicing (the presentation was based on practical Regular reminders for filing GST Returns/ aspects) Deferred payment of Customs Duty/ filing of Central Excise Return/ payment of duties will be issued along ii) Role and Functions of the Customs Authority with any amendments/ legislative changes/ new initiative for Advance Rulings- Best Practices and introduced by CBIC. This Directorate will also carry out Case Studies. publicity campaigns to educate the taxpayers/ public at i) Changes in GST due to the Finance large. As the Country is celebrating 75 years of Act, 2022. independence “Azadi ka Amrit Mahotsav” (AKAM) all the creatives issued by this Directorate are having the logo ii) Outreach /Physical Seminar at Maha of AKAM, will also be preparing a few AKAM oriented Mumbai Metro Operation Corporation Social media Campaign. India holds the Presidency of Ltd (MMMOCL) ( a State Govt. PSU the G20 from December 1, 2022 to November 30, 2023, established for running Metro ) the G20 logo is being used in all the creatives prepared by this Directorate. iii) AEO Scheme & Recent Changes TAXPAYER SERVICE CENTRES iv) 47th GST Council Meeting- Trade Facilitation Measures etc. One of the mandates of DGTS has been to set up Taxpayer Service Centres in all Commissionerates. DGTS has organized 35 Webinars in a span of Vigorous follow-up has ensured setting up of Taxpayer last 8 months time. Services Centres in the Commissionerates of Central Tax, Publicity Activities to be undertaken from 01.12.2022 Customs & Central Excise. to 31.03.2023 (F.Y.2022-23) PUBLICATIONS i. Celebration of 60 Years of Customs Act, 1962. The Directorate brought out publications at the ii. Celebration of International Customs Day, 2023. behest of CBIC and other formations such as DGHRD SS & WS Booklet, Booklet for AKAM, Dharohar Booklet, iii. Publicity of decisions taken by the 48th GST WTO Agreement, Hindi Manual (50 sets of 12 Books), Council. Booklet for GST Day, Civil List, 2022, IITF Booklet, Brochures and Fliers. iv. Publicity of initiatives undertaken by CBIC in the later part of the Financial Year. 3.12 DG SYSTEM v. Publicity of Government of India’s initiative Azadi The Central Board of Indirect Taxes and Customs ka Amrit Mahotsav (AKAM) in the later part of (CBIC), through the Directorate General of Systems and the Financial Year. Data Management (DGoS & DM), implements all the IT and digital requirements for the CBIC officers. The Social Media (As on 30.11.2022) development and maintenance of all the CBIC IT Considering the importance of social media as a applications like ACES GST applications, Indian Customs powerful means of instant communication with citizens, EDI Systems, ICEGATE etc. to provide the digital the Department has effectively used this platform namely workflow for CBIC businesses and also to facilitate Facebook page (CBICINDIA), twitter handle electronic interface with the trade and the general public (@CBIC_India) and Youtube channel (GST_India). Over in respect of Customs and GST Wings of the Department. 132Department of Revenue III The projects in this program are in line with the CBIC’s cancelled taxpayers, preparation of SCN (others commitment to the nation on e-governance and various category), including additional column for Fee in guidelines in the matter. DGoS & DM has initiated several forms DRC 01, DRC 07 and DRC 08 are projects aimed at harnessing Information & developed and rolled out to production. Communication Technology (ICT) in achieving the Further, functionalities like selecting Common objectives of Customs and Indirect tax administration. Adjudication Authority in form DRC 01, issuance DGoS & DM is one of the first government departments of Form DRC 02, De-novo adjudication are under to have implemented an Enterprise Date Warehouse, a advanced stage of development. central repository of clean and consistent and near real time data pertaining to Customs, Central Excise and GST. iii. Appeals, Review & Revision sub-module of DSR ADVAIT (Advanced analytics in Indirect Taxation) leverages the capabilities of big data and predictive Functionalities for Appeal proceedings against analytics to provide platform for improved decision- Refund Orders (Taxpayer & Department Appeal) making, with the threefold objective of enhancing indirect and Appeal proceedings against Registration tax revenue, increasing taxpayer base, and supporting order (Taxpayer Appeal) are rolled out in June data-driven tax policy formulation. ADVAIT provides and November 2022. Further, modification in the business outputs in three formats: Reports, Interactive Review of Demand/Refund orders and Appeal Dashboards, and Analytical Models. In FY 2022-23, till functionalities for first Appellate Authority have 30.11.2022, 110 reports, 10 dashboards and 11 Data been taken up for Development based on science Models are developed as ADVAIT utilities. feedback received from field formations. Furthermore, minimum 19 Reports, 2 Dashboards and 1 iv. Recovery sub-module of DSR Data science models will be developed before the completion of this Financial Year. The functionality of each Development of MIS reports for recovery, output is specifically designed to aid and assist officers providing hyperlinks and color coding of Forms in their day-to-day operations that range from reporting DRC 20, DRC 21 are taken up for development and ensuring tax compliance to detecting tax evasion. as the recovery module consisting of Forms DRC 9 to DRC 25 has already been rolled out in 2021 The Express Cargo Clearance System (ECCS) itself. is an application that enables automated clearances of express cargo. It is a single and common web-based v. Audit Module digital workspace for all stakeholders. The ECCS The module was deployed to production in April facilitates electronic clearance of courier shipments and 2022. Nine APIs released by GSTN are being brings transparency and ease of clearance, in line with integrated in the Audit module. Defects reported the Government’s initiatives such as Digital India and by formations during usage of application, are Ease of Doing Business. This State-of-the-Art ECCS being rectified. application has been built on cutting edge technology products to ensure faster clearance, better compliance vi. E-Way Bill of rules, quick data reporting and enhanced data security. Functionality to Search, View and download E-Way bill data is rolled out during the year. To Development of modules in CBIC GST Application: handle the voluminous data of e-way bill and i. Investigation sub-module of DSR improve performance of the functionality, existing e way bill data and new data is proposed to be The module is rolled out in 2020. As a part of stored in new DB instance and the migration of furtherance of module, development of additional existing data to new instance is taken up. functionalities like Enquiry, IP address search, MOV Forms, Show Cause Notice, MIS reports A. Postal automation project in Customs: etc., are being taken up. a) Development of Customs FPO Application for ii. Adjudication sub-module of DSR Postal Imports: The module is made available from 2018 FPO Import Application being developed by DG onwards and new functionalities are added every Systems & Data Management, Bangalore Zonal year thereafter. In this year, functionality to unit in association with NIC. The same is being facilitate issue of DRC-01 for registration developed in a phased manner. 133Annual Report 2022-2023 b) Development of PBE (Postal Bill of Export) E. Returns & Payments Module: System for Postal Commercial exports: In this module, Comparison of Liabilities Vs ITC PBE (Postal Bill of Export) System for Postal Report, Update the details of Aggregate Annual Turnover Commercial exports is being developed by (AATO) given by the Taxpayer by the Tax Officer, Department of Post (DoP), in association with Generation of GSTR-2B, Enhanced view of GSTR-2A, CBIC. ITC Block-Un Block - Additional fields to provide for Reasons and to upload documents and to facilitate DG Systems was directed to coordinate with negative blocking, View of GSTR-3A Notices issued by Department of Post and monitor the same. DGS GSTN to non-filers of GSTR-3B Returns, Delinking of BZU coordinated for testing, shared BRD and Credit/debit notes from original Invoice details in GSTR- additional requirements on the functionality to be 6, Enhanced view of GSTR-3B (Collection of late fees of added in the PBE system and suggested phased GSTR-1 through GSTR-3B & Inclusion of new table 3.1.1 approach with the CBIC. CBIC has approved and pertaining to supplies made by registered persons through shared those with DoP. Accordingly, DoP has E-Commerce operator), GSTR-1 Changes - New revised the PBE system. Approach B. Refunds: - - To reduce the Return data Gap between GSTN and CBIC data base prospectively and Total Deposit From 26.09.2019, Processing of Refund Summary based on Type of Taxpayer were developed Applications filed by the Tax Payers is made fully and deployed. online. Withhold release functionality was introduced during the year. Further, the Functionality to credit the Further, Functionalities such as Risk based sanctioned Refund Amount to Consumer Welfare Fund Selectivity System for scrutiny of Returns, Summary is also developed and ready to be deployed. Alternate assessment, New TRAN-1/TRAN-2 – View and posting work flow for ICEGATE refunds is also developed and of the amount allowed by the Tax Officer after verification, would be deployed once GSTN implements the same. View of GSTR-4 (Annual Return for composition Taxpayers) are proposed to be rolled out. C. Registration: F. GST Services In registration module, Cancellation of registration by OIDAR taxpayers, Withdrawal of a) For the period 1st January 2022 to 30th cancellation by Taxpayer, and Viewing and downloading November 2022 the helpdesk cbicmitra has received 3,09,002 calls and 27,452 emails and document for UIN Registration along with date 1,00,173 web tickets from taxpayers and tax functionalities were implemented. Further, Change in officers which have been duly resolved. revocation timelines, List page showing suspended taxpayers, Composition levy opt in/opt out status in active b) There was a “GST & Customs Pavilion” in the registration list, Automation of drop proceedings of Suo India International Trade Fair (IITF) organized moto cancellation, and IRP/RP as new class of person from 14th to 27th November, 2022 at the Pragati for registration are proposed to be introduced. Maidan, New Delhi. Therein CBIC Mitra Helpdesk was also setup. D. MIS Analytics team: c) From Jan, 2022 to August, 2022, 111 hand- MIS & Analytics has been generating and sharing holders across 79 locations of CBIC offices the data with field formations based on specific requests were provisioned. Further, after analysis of Daily from field formations. This team is regularly sharing the Activity of Hand-holders. From 01.09.2022 they GSTR-1 and GSTR-3B table wise data for consumption were ramped down to 21 for 21 locations of CBIC by DGARM. MIS & Analytics Team has taken up Auto offices. As on 30.11.2022 there were 18 hand- population of Data for 12 GST MPR for DDM Portal. Data holders actively deployed. was transferred successfully from ACES-GST data base G. Monthly Performance Report (MPR): to Intermediate server of DDM in respect of Five revenue reports. Demo/dry run completed successfully at DDM a) The Directorate of Data Management (DDM) for these reports on 18.10.2022. Team has also taken up successfully completed the migration of all parts automation of Ad-hoc reports into MIS reports which are of the Monthly Performance Report (MPR) being shared by SI on daily basis to field formations. module from NIC Cloud Server Meghraj to the 134Department of Revenue III CBIC Server. All parts of MPR are now available  RMS and IPR Production single-sign-on on Antarang Portal. authentication on OAM 12c has been completed on 13th April 2022 b) Further, a new MPR viz DDM-CUS-7 has been introduced under Customs stream of Part-I to  Atithi Mobile App Version 2.0 launched conducted capture revenue figures from all 100% EOUs. successfully on 26th May 2022 c) The proforma for MPR DRI-CUS-8 has been  ISO 22301 transition audit (Audit based new enhanced to capture the data on Compounding standard ISO 22301:2019) was completed of Offences from the Custom Zones. successfully on 9th-10th June 2022. d) Further, in compliance with the directions of the  Customs DR Drill was successfully conducted Board, data pertaining to manual payments not from 24th to 26th June 2022. being reported in the MPR is being reported on  GST simulation with user testing completed a monthly basis from 20 Zones of Customs & successfully on 23rd Jul’22. CGST & DGRI by DDM through Office 365 Application.  ECCS DR simulation activity with user testing was successfully completed on 9th Aug’2022 H. DGARM Application:  ADVAIT simulation with user testing has been The reach of DGARM application (developed by successfully conducted on 27th Aug’22 DDM) forwarding the analytical reports of the DGARM containing actionable data on suspect & risky taxpayers  ISO recertification of ISO 20000, 22301, and to CGST offices and DGGI has been extended up to the 27001 was completed successfully for CBIC in Range level. the last week of Aug 2022 I. Various study tour and Outreach Activities  Installation of Hindi Indic Tool for Hindi typing in were conducted 21000 AIO’s out of 24000 AIO’s. J. ECCS:  Upgradation of Windows OS 10 pro on 23000 a) In order to enable express clearances, CBIC has AIO’s out of 24000 AIO’s. notified 14 International Courier Terminals (ICTs),  Process optimization conducted for Saksham out of which ECCS is currently operational at 9 Seva helpdesk to ensure that L1 team takes end locations, viz. Bangalore, Mumbai, Delhi, user confirmation on resolution in all cases. Ahmedabad, Cochin, Chennai, Jaipur, Kolkata and Hyderabad.  Phase 1 development for new CBIC website completed. b) A few other noteworthy points regarding ECCS are that ECCS has resulted in 100% Paper less  Web Application Firewall (WAF) enablement in clearance and covers approximately 45000 blocking mode on all public-facing websites – shipments per day cleared out of the major March 2022. express terminals in the country.It has an automated Risk Management System (RMS) and  Application log Integration with Security nearly 90% of shipments are facilitated. The duty Operation Center (SOC) – March 2022. and other fee are paid 100% online electronically.  Mitigation of prominent zero-day vulnerabilities K. System Integration and Security: including Boothole, Log4J, and Spring4Shell – April 2022.  Successful Go-live of E seva - Admin Module launched on 4th Feb 2022.  Integration of Data Leakage Prevention with Advait – May 2022.  Production readiness of API-based Container Scanner solution was completed for 4 locations  Mitigation of Folina zero-day vulnerability – June in Feb 2022. 2022.  IDAM (Identity and Access Management)  Initiation of Security Orchestration Automation migration from 11g to 12C was completed and Response (SOAR) implementation. – August successfully on 18th Feb 2022 2022. 135Annual Report 2022-2023  Initiation of integration of NCIIPCs Threat which, 70 have been accepted till date. Remaining ATPs Dissemination Platform (TDP) with DG Systems are expected to be accepted at the earliest – August 2022. (v) Onboarding of Custodian on CBIC Network  Completed ISO 22301 Transition audit. During the period LAN-WAN vertical received 34 requests  NCIIPC’s Threat Dissemination Platform (TDP) from various field formations for allocation LAN IP Pool integration with Security Operation Centre (SOC) to Custodian locations for access to Data Centers. Out – October 2022. of these request 20 Custodian locations have successfully connected to Data Center and working on CBIC  Enablement of blocking of threat feeds being applications. Further in order to conclude remaining received from TDP – November 2022. requests necessary guidance is being provided to  Framing of advisory for Malware Investigation on Custodians. locations hosting non-saksham desktops/ M. ICEGATE: machines – November 2022. i. Launch of ICEGATE 2.0 (Phase I):  SOAR implementation in CBIC – October 2022. New functionalities were introduced in ICEGATE  Creation of a playbook for automating actions as part of launch of ICEGATE 2.0 on November 16, 2022: through SOAR – November 2022. • Improved Bilingual Website  Creation of playbooks for various security attack scenarios – December 2022. • Personalized Dashboard L. LANWAN: • Chatbot and Advanced Helpdesk (i) Provision of IT Infrastructure • Secured and authenticated communication with external agencies During this period, the LAN/ WAN vertical received 110 IT infrastructure related requests (shifting/ • Availability of both online and offline document addition / repair & maintenance) from various field filing facility formations. 95 requests were successfully executed and work in respect of remaining 15 requests are under ii. Helpdesk: process of completion. Helpdesk has started helping the users in (ii) Commissioning of MPLS Links resolution of their inquiry related incidents from the month of September, 2022 which has increased the scope of During this period, LAN-WAN vertical received support at Helpdesk level. 41 requests from various field formations for commissioning of MPLS Links including the links to be iii. Export Obligation discharge certificate shifted to new premises. MPLS links have been (EODC) enquiry: successfully installed at 23 locations through BSNL/ EODC Enquiry is designed to help exporter to MTNL, while balance is being closely monitored for monitor the status of their applications submitted for grant expeditious completion. of Export Obligation Discharge Certificate. (iii) Extension of WAN Contract EODCs issued by DGFT, should normally be During the period, existing contract for WAN accepted unless there is an intelligence suggesting managed services with BSNL/MTNL had expired on 30th misuse. In cases where Regional Licensing Authority has Sep. 2022. IFU concurrence and approval of the Hon’ble endorsed on the EODC that customs should verify the FM on proposal for extension of the contract for a period Shipping Bills and other documents, such verification of 6 months has been received. would be done. (iv) Analysis and acceptance of pending ATP. iv. Import of Goods at Concessional Rate of Duty (IGCR): ATP reports form a crucial part of verifying the completion of network changes implemented and A module has been made available to the payment to SI is based on the said ATP acceptance. For taxpayer’s post-login to enable them to file their requests the subject period, 86 ATPs were submitted by SI out of online for availing benefits under the Import of Goods at 136Department of Revenue III Concessional Rate of Duty (IGCR) Rules. The broad x. Awards & Recognition: provisions are as under:  ICEGATE, DG Systems has received Jury Award (i) Provision of declaration of advance intimation of from Tax India Online (TIOL) under the category Import of Goods at concessional rate of duty. of ‘Institutional Game Changer’ in the month of November 2022. (ii) Generation of a unique IIN for a Financial Year with facility to amend as and when required.  ICEGATE has also been selected for Platinum Award, given under ‘Digital India Awards 2022’ (iii) A Continuity Bond of IGCR Bond Type can be under the category of ‘Public Digital Platforms – created or amended by the Importer. Central Ministries, Departments’. (iv) Bond Management Module xi. Proposed Launches till March 31, 2023: (v) Multiple Details are auto populated in the monthly  Electronic Cash Ledger (ECL): The e-Cash statement. Ledger module enables a registered/authorised (vi) Interface to accept details, entered by the user, IEC holder to create a virtual account (electronic provided to the jurisdictional Customs officer wallet) on ICEGATE website and credit funds into the virtual account, using Internet Banking, v. Anonymized Escalation Mechanism (AEM): NEFT/RTGS or Over-The-Counter (OTC) Payments, so as to act as a mode of payment The Anonymized Escalation Mechanism enables for customs duties online. importers to submit a grievance on ICEGATE in case of any delay in clearance of a Bill of Entry under faceless  Exchange Rate Automation Module (ERAM): assessment. The grievance is escalated anonymously Using ERAM, automatic updation of exchange to the Assessing Officers and their Supervisory Officers rates for import and export goods will be done at the Faceless port, while concealing the identity of the on daily basis (except Saturdays, Sundays and Faceless Officer and the Port from the importer. Gazetted Holidays) on ICEGATE Website and the ICES System. vi. E-scrip module:  ICEGATE 2.0 (Phase 2): E-Scrip Module provides a facility to the exporters to avail benefits defined under various incentive schemes o ICEGATE Mobile-based application like Remission of Duties and Taxes on Exported Products o Search Functionality (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) in order to avail rebate of Central, State o Chat Bot (Phase 2) and Local duties/taxes/ levies which are not refunded o Remaining Messaging Infrastructure under any other duty remission schemes. o API Integration with external stakeholders vii. Examination Application: (Importer/Exporter/CHA) The utility helps importers to select the time slot o Reports Phase 1 (Dynamic Enquiries on for examination of their Import Consignments in their Transactional Data & Ticket Logging) presence. o E-Payment viii. Air Trans-shipment for outbound Messages: o Registration Module and Admin Portal for Implementation of All India Air Trans-shipment all users (ATP) Message fillings for Air-to Air and Air-to-ICD Trans- shipment in imports, whereby the registered users can  ICEGATE (Phase 3): file the ATP EDI messages via Email or Web Upload in o API Integration with external stakeholders ICEGATE. The existing facility of filing at the Service (Custodians, DGFT, MoS, Centre would also continue without change. o DGCIS, Pr.CCA, DoV, SEZ, Courier, CRIS) ix. Separate PQMS Module: o Refunds & Integration with PFMS An independent PQMS (Plant Quarantine Management System) module was developed replacing o ICEGATE Mobile-based Application for PQIS in line with the Single Window concept. Customs Officers 137Annual Report 2022-2023 o Reports Phase 2 (c) ICES Advisory No. 09/2022 dated 10.06.2022 on Implementation of Notification No.16/2011 - o Helpdesk & Self-service portal Customs (NT) dated 1st March 2011 under IGCR o Social Experience Manager tool consistent with CBIC Notification No. 16/2011 - Customs (NT) dated 1st March 2011 that o Public enquiries for ICEGATE and prescribes import of certain prohibited goods Compliance Information Portal subject to the condition of fulfilment of Import of  Integration with SEZ: Goods at Concessional Rate of Duty for Manufacture of Excisable Good. Functionality for registration of SEZ users and filing of customs documents will be provided at ICEGATE. (d) ICES Advisory No. 10/2022 dated 14.06.2022 issued for system changes relating to AD Code Significant developments / policy decisions taken Registration in exports in accordance with Board during the year for the development of a particular sector, Circular No. 32/2020-Customs dated 06.07.2020. including initiatives for improving delivery of public services and for ensuring “inclusive growth” (e) ICES Advisory No. 12/2022, dated September 8, 2022, issued on the Anonymized Escalation (i) Dual Connectivity Testing Mechanism (AEM) under Faceless Assessment, The LAN-WAN section, initiated and successfully in accordance with Board Circular No. 14/2021, completed failover testing at 85 critical sites of CBIC dated July 7, 2021. having dual connectivity from M/s BSNL/MTNL & M/s (f) ICES Advisory No. 14/2022 issued on September TCL. This has ensured robust connectivity to the system 29, 2022 for customization of alerts/suspension and provided better users experience while working on module for exports in System - Changes made CBIC applications. in System. (ii) Non-EDI to EDI Conversion (g) ICES Advisory No. 18/2022, dated December 5, In order to give shape to Principal DG, DG 2022, for the implementation of a new All India Systems’ vision of conversion of all non-EDI sites to EDI Air transshipment bond for air-to-air and air-to- in the, located in remote border areas, the LAN/WAN ICD transshipment in imports. This National Bond vertical took up the task in a systemic and phased manner. (bond type TA) can be registered at any port and Out of 18 sites proposed in Phase-I, a total of 14 sites then used at any port. have been converted to EDI. For Phase II, out of 16 Initiatives taken with reference to the proposed sites, 01 site has been converted to EDI. Work development of North–Eastern Region and Sikkim on the remaining sites is ongoing and is expected to be including projects/schemes in operation and actual completed at the earliest. expenditure thereon: (iii) Hosting of Hackathon Three non-EDI Customs locations in North-East The DDM successfully hosted the HACKATHON (NE) region have been enabled on the Indian Customs event of EDW vertical of DG Systems. EDI System. (iv) ICES Advisories issued on policy decisions 3.13 National Academy of Customs, Indirect Taxes for activities listed are as follows: & Narcotics (NACIN) (a) ICES Advisory No. 06/2022 dated 18.04.2022 National Academy of Customs, Indirect Taxes & issued for the implementation on IT platform on Narcotics (NACIN) is the apex institute of Government Implementation of IGCR in SEZ Clearances for of India for capacity building in the field of indirect taxation. It also plays a vital role in international capacity building DTA Supplies in accordance with Board Circular by imparting training to officers of various countries in No. CBIC Circular No. 04/2022-Customs vide F. the field of Customs, drug laws and environment No. 450/28/2016-Cus-IV dated 27.02.2022. protection. NACIN is the World Customs Organization (b) ICES Advisory No. 08/2022 dated 30.04.2022 for (WCO) Regional Training Centre (RTC) for the Asia changes introduced by Finance Act 2022 in the Pacific Region. United Nations Environment Program Customs Tariff effective 01.05.2022 in (UNEP) has designated NACIN as a collaboration center accordance with Finance Act 2022. for capacity building in the field of environment protection. 138Department of Revenue III In collaboration with United Nations Office on Drugs & personally monitored by the highest authority at the Crime (UNODC), NACIN is imparting training on drug Ministry to create a World Class Capacity Building Institute law enforcement to various Asian nations. The as pride of Nation and showcase the Indian Heritage and Government of India has entrusted NACIN the Culture to the international community. As the upcoming responsibility of knowledge exchange, experience sharing campus will be hosting many National and International and training with various countries of the world. training programmes being the accredited Regional Training Centre for WCO, BRICS, UNODC and other The charter of functions of NACIN issued by international agencies. NACIN is also under the CBIC mandates training of not only the officers working obligations to extend capacity building assistance to the under CBIC but also of the officers from other friendly countries on MOU basis while collaborating with departments, ministries, and other stakeholders. NACIN’s advanced countries like USA, UK, Russia and other G- flagship program is to conduct the Induction Training of 20 countries. newly recruited IRS (C&IT) Group ‘A’ officers selected through Civil Service Examination conducted by UPSC. b. Mission Karmayogi and iGOT Since last two decades NACIN is conducting complete The National Programme for Civil Services professional training of Officer Trainees of IRS (C&IT). Capacity Building (NPCSCB) approved by Union Cabinet In addition, NACIN through its 18 Zonal/Regional in September 2020 is popularly known as Mission Campuses in 15 state capitals, and 03 major cities, conducts the training programs for the capacity building Karmayogi. It is governed by the “Hon’ble Prime as well as enhancing of skills in-service officers. Minister’s Public Human Resource Council”. One of the aims of the programme is to build and strengthen the NACIN also conducts the Mid-career training Behavioral, Functional and Domain Competencies of civil programs at regular time intervals for the officers to enable servants. them to discharge their responsibilities effectively as per their changed roles and positions. The zonal/ regional i. Accreditation (NSCSTIs): - As a step ahead campuses of NACIN also provide induction training to under Mission Karmayogi, in order to assess the the newly recruited Group B and C officers. NACIN was performance of Central Training Institutes (CTIs)/ also mandated by the Government to provide GST Administrative Training Institutes (ATIs) and training to all officers under CBIC and officers from States, provide them performance-based ranking, the Union territories and other stakeholders at the time of Capacity Building Commission (CBC) identified the introduction of GST. the need for development of an evaluation MAJOR ACHIEVEMENTS: framework for enabling functional assessment of all Civil Service Training Institutions. CBC, in a) NACIN Complex at Palasamudram, Hindupur: July 2022, has launched the portal for National The upcoming NACIN Complex at Standards for Civil Service Institutions (NSCSTI) Palasamudram, Andhra Pradesh is envisioned as a and initiated accreditation certification program Centre of Excellence in Capacity Building, spread across for training institutes. 500 acres of land, with state-of-the-art facilities. The Administrative approval and Expenditure Sanction for Accreditation is a process of establishing Rs.702.27 Crore was given by the Hon’ble Finance competence of a training institute in delivering Minister on 01.12.2021. The laying of the foundation stone the requisite elements and its ability to carry out ceremony was performed by the Hon’ble Union Finance evaluation of competence acquired by the Minister on the 5th of March 2022. The tender for the learners/trainees. Accreditation focus is on project has been awarded to M/s. DEC Infrastructure & learning, self-development and encourages Projects India Private Limited, Hyderabad. The EPC training institutes to pursue continual excellence. contractor had started working on the project on 10th of NACIN has registered for undergoing June 2022. The foundation stage of all the buildings has accreditation process as envisaged under been completed. The construction for the phase I is likely National Standards of Civil Service Training to be completed by July 2023. Institutions (NSCSTI) and would be shortly The NACIN Palasamudram is the only major National undergoing the exercise of filing application and Project under Mission Karmayogi which is scheduled to self-assessed questionnaire along with requisite be inaugurated as part of the Azadi ka Amrit Mahotsav. It documents based on which assessment process is a flagship project of the Ministry of Finance and would begin 139Annual Report 2022-2023 ii. iGOT Karmayogi is a made in India digital ii. SOPs for effective and timely handling of court Platform offering services around Learning and cases on disciplinary matters to protect the Career Management. iGOT Karmayogi is one of interests of the government were issued to all the aspects of Mission Karmayogi and basically field formations; is a platform where Learning Management iii. Sensitization of all IOs on the option to invoke System (LMS) is developed by CBC. the existing Departmental Inquiries (Enforcement NACIN has published content on few topics on of Witnesses & production of Documents) Act Customs and Indirect Taxation on iGOT portal. by Inquiry Authorities to secure the attendance Capacity Building Commission (CBC), in of the witnesses, as the same is not being December 2022, has empanelled six firms for invoked by the Inquiry Authorities due to lack of awareness about this provision; development of e-learning content for various departments. NACIN is in the process of iv. Structured interaction through video conferences developing the content on other remaining topics with Disciplinary Authorities and Inquiry Officers with the help of expert services of the empanelled to take stock of the pendency position and IDAs. nudging them to expeditious finalization of the proceedings; 3.14 DIRECTORATE GENERAL OF VIGILANCE: v. Close monitoring to ensure timely implementation 3.14.1 The vigilance work in CBIC is administered and of penalty orders passed on conclusion of supervised by the CVO through the twin wings of the disciplinary proceedings; vigilance set up of CBIC, viz Directorate General of Vigilance (DGoV) and Ad.V Section in the CBIC. 3.14.3 ACHIEVEMENTS: 3.14.2 INITIATIVES TO IMPROVE PERFORMANCE: The above measures have contributed to the exponential improvement in the year-on-year In 2022, concerted efforts have been made to performance of DGoVin vigilance matters. There has spruce up vigilance administration in CBIC in the current been a high rate of disposal in the key vigilance related year, namely: work areas, such as finalization of inquiries, submission of cases to UPSC and issuance of final orders etc., which A. Improvement in business processes: has been appreciated also by CVC in their review i. Instructions for effectively and timely handling of meetings, wherein disposal of cases in Block Years 2000- 2010, 2011-2018 and 2019 to date were taken up for close court cases on disciplinary matters in Central scrutiny. The major achievements in 2022 (From 1.1.2022 Administrative Tribunals/High Courts/Supreme to 31.12.22) are given below: Courts to protect the interest of the Government dated 09.03.2022 YEAR ON ii. Instructions on updation of data on e-seva vivad YEAR portal in Vigilance matters dated 06.04.2022 S.No. KEY AREA OF WORK PROGRESS 2021 2022 iii. SOPs dated 07.10.2022 for conducting Vigilance Audits of field formations issued. 1 Final Orders issued on 296 344 conclusion of Disciplinary iv. SOPs dated 12/04.2022 for timely completion of Proceedings vigilance matters issued. 2 Prosecution sanctioned 69 106 B. Pro-active steps to sensitize field formations 3 Complaints Handled 1401 970 and monitor progress of Disciplinary Proceedings: 4 Vigilance clearance given 1834 2183 (references) In 2022, some of the notable efforts made to sensitize field formations on various aspects of disciplinary In 2022, 282 Departmental inquiries were proceedings included: completed, and they are at different stages of Disciplinary Proceedings. i. DGoV has published two publications i.e. “Referencer for Vigilance officers -2022” and These initiatives would further contribute to “Handbook for Vigilance Administration-2022” enhancing CBIC’s image as a responsive and efficient covering wider aspect of Vigilance administration administration and would also improve our compliance in CBIC for the guidance of its Officers. commitments to CVC. 140Department of Revenue III 4. Revenue Headquarters Administration  Chairman, Vice Presidents and Members of CESTAT 4.1 Administration  Chairman, Vice Chairman and Members of The Revenue Headquarters looks after matters CCESC relating to all administrative work pertaining to the Department, coordination between the two Boards (CBIC  Director General of CEIB and CBDT), the administration of the Indian Stamp Act  Director of Enforcement 1899 (to the extent falling within the jurisdiction of the Union), the Central Sales Tax Act 1956, Goods and  Competent Authorities (SAFEMA and NDPS) Services Tax (GST) Act, 2017, the Narcotic Drugs and  Director (FIU-IND) Psychotropic Substances Act 1985 (NDPS), the Smugglers and Foreign Exchange Manipulators  Chairperson and Member of Adjudicating (Forfeiture of Property) Act 1976 (SAFEMA), the Foreign Authority set up under PMLA Exchange Management Act 1999 (FEMA), the  Chairman and Members of "Appellate Tribunal" Conservation of Foreign Exchange and Prevention of established under SAFEMA, 1976. Smuggling Activities Act, 1974 (COFEPOSA), the Prevention of Money Laundering Act, 2002 (PMLA) and  CVO, CBDT/ CBIC/ ED matters relating to the following attached/subordinate offices of the Department: 4.2 Directorate of Enforcement a. Enforcement Directorate 4.2.1 Introduction b. Central Economic Intelligence Bureau (CEIB) 4.2.1.1 The Directorate of Enforcement (ED) is the premier law enforcement agency of the Government of c. Competent Authorities appointed under SAFEMA India which has been entrusted with the administration and NDPS and enforcement of the Prevention of Money Laundering d. Chief Controller of Factories Act, 2002 (PMLA), Foreign Exchange Management Act, 1999 (FEMA) and the Fugitive Economic Offenders Act, e. Central Bureau of Narcotics 2018 (FEOA). ED is the nodal agency for collection of f. Customs, Excise and Service Tax Appellate intelligence, carrying out research and analysis and Tribunal (CESTAT) conducting financial investigation for cases involving money laundering, bank frauds, financial scams, foreign g. Appellate Tribunal under SAFEMA exchange violations etc. Under the provisions of PMLA, h. Customs and Central Excise Settlement the officers of ED investigate and prosecute the persons Commission (CCESC) involved in money laundering, attach the proceeds of crime and carry out international cooperation with i. National Committee for Promotion of Social and competent authorities in foreign jurisdictions including Economic Welfare recovery of assets stashed abroad and extradition of j. Financial Intelligence Unit, India (FIU-IND) fugitives. ED is also entrusted with the responsibility to investigate, adjudicate and impose penalty if any person k. Adjudicating Authority under Prevention of Money violates the provisions of FEMA and launch prosecution Laundering Act in appropriate cases. l. National Institute of Public Finance and Policy (NIPFP) 4.2.1.2 In the recent past, the work of Directorate of Enforcement has increased considerably both The following items of works are also undertaken qualitatively and quantitatively. Investigations have by the Headquarters: commenced in several high-profile cases with positive results in terms of attachment and confiscation of Appointment of - proceeds of crime related to bank fraud, corruption, drugs  Chairman and Members of CBIC and CBDT & human trafficking and terror financing etc. 141Annual Report 2022-2023 4.2.2 Functioning of the Directorate and issues Show Cause Notices (SCN) in cases where the allegations of contravention of provisions under FEMA 4.2.2.1 The primary function of the Directorate of are notices. These SCNs upon adjudication results in Enforcement is administration and enforcement of the imposition of penalty as well as confiscation of currency/ Prevention of Money Laundering Act, 2002 (PMLA) property involved. including investigation into the offence of money laundering, filing of prosecution complaint before the 4.2.2.3 The Directorate of Enforcement has also been special court against the accused, attachment and entrusted with the implementation of the Fugitive confiscation of property involved in money laundering, Economic Offenders Act, 2018 (FEOA). The FEOA carrying out international cooperation with competent provides for the measures to deter the fugitive economic authorities in foreign jurisdictions ensuring that the offenders from evading the process of law in India by accused persons do not enjoy the proceeds of crime. staying outside the jurisdiction of Indian Courts and to Unlike in many other countries, in India, ED has the sole preserve the sanctity of the rule of law in India. Action jurisdiction to investigate the money laundering cases and under the said Act can be initiated against economic the Law Enforcement Agencies (LEAs) having the offenders who have left India so as to avoid criminal responsibility to investigate a "predicate offence", prosecution or who, being abroad, refuse to return to India including the State Police Authorities, are required to to face criminal prosecution and the total amount involved make a reference to ED to examine the money laundering in the economic offence is more than Rs. 100 crore. aspect of the criminal activity. In certain cases, the fact 4.2.3 Organizational Structure that a predicate offence has taken place is also obtained from publicly available sources or on receipt of information 4.2.3.1 The Directorate of Enforcement is headed by the from the Financial Intelligence Unit (FIU). On receipt of Director, who is not below the rank of Additional Secretary the reference or information and after making certain to the Government of India. He is assisted in his work at preliminary verification, ED records a case and initiates the Headquarters by officers of all ranks. Sanctioned investigation (Enforcement Case Information Report or strength of 04 Special Directors, 11 Additional/Joint the ECIR) following a risk based approach taking into Directors and a number of other officers/staff is available consideration factors such as materiality of the offence, in HQ to assist the Director, ED. The Headquarter office transnational nature of the crime, complexity of the case, (HQ) of ED is situated in New Delhi. The functional the larger public interest and the availability of resources. establishment of ED is divided into 05 Regions located Investigation under PMLA generally covers collection of at Chandigarh (Northern Region), Chennai (Southern information/evidence from public domain, other Region), Delhi (Central Region), Kolkata (Eastern Region) investigating agencies (Predicate Offence Investigating and Mumbai (Western Region). Each region is headed Agency (LEAs), Income Tax Department, Customs and by a Special Director. Apart from the above Regions, Indirect Tax Department, Ministry of Corporate Affairs, special units named as Headquarters Investigation Units Serious Fraud Office, SEBI, etc.), financial institutions, (HIUs) and Special Task Force (STF) headed by the banks, District Sub Registrar office, etc. as well as using Special Director are also functioning at the Headquarters investigative tools as provided under PMLA. Identification office. Regions are constituted by Zone(s) headed by and quantification of proceeds of crime and involvement Additional Directors/Joint Directors and Sub-Zone(s) of person/ entities in any process or activity connected headed by Deputy Directors. Sub-Zones are controlled with proceeds of crime are main requirements for proving by respective Zones. offence of money laundering as well as for punishment for money laundering offence. 4.2.3.2 Details of functions performed in HQ are as follows: 4.2.2.2 The Directorate of Enforcement is also entrusted with the implementation of the Foreign Exchange Establishment: The headquarters office is the main office Management Act, 1999 (FEMA) whose object is to dealing with work related to the matters of establishment, consolidate and amend the law relating to foreign recruitment, transfer and posting, etc. All Human exchange for facilitating external trade and payments and Resource related work including maintaining incumbency for promoting the orderly development and maintenance position of officers/staff; filling up vacant posts by issuing of foreign exchange resources. ED initiates investigations vacancy circulars/making correspondence with UPSC, 142Department of Revenue III SSC etc.; extension of deputation tenure of officers; Adjudication: This section handles adjudication of FEMA holding of DPC, departmental examination, Selection of cases and Penalty recovery. Legal Consultants, etc.; framing and amendment of Legal: This section handles Appeal /Writ Petition matters Recruitment Rules is being handled in this section. of Supreme Court; filing of appeals before Appellate Admin and Accounts: All administration and accounts Tribunal for Foreign Exchange (ATFE); matters of related work including preparation of office budget and Attachment Orders before Adjudicating Authority under allocation of funds to field formations; management of PMLA; review of Adjudication Orders passed by Joint office expenses; procurement/lease/contract of vehicles, Directors and above; legal vetting; dealing with references office equipment and office premises etc.; processing of from Ministries on legal issues/Law relating to FEMA, bills and financial approvals; posting of sepoys, drivers, PMLA and FEOA; tracking of work of Prosecutors/ DEOs, MTS in HQ; processing of leave applications and Advocates in Courts; empanelment of Advocates etc.; Medical bills; issuance of Departmental IDs; salary, GPF, giving legal opinion in investigative and other matters; pension, gratuity, leave encashment, etc.; management drafting/vetting of PAOs, PCs, affidavits, appeals, LRs, of SSF; etc. are being handled in this section. extradition requests etc.; appearance before the Adjudicating Authority, Appellate Tribunal and Courts on Vigilance: All vigilance related work including disciplinary behalf of the Directorate; Monitoring of court cases and proceedings of Group 'A' officers and officials of legal issues at all India level etc. Headquarters Office; CAT Cases; High Court/ Supreme Court matters of Establishment; Property Returns and Headquarters Investigation Units (HIU): The HIUs were ACRs of all the officials of the Directorate, and Public created at Headquarters of ED in the year 2012 for grievances); Processing of Immovable Property Returns; investigating sensitive and important cases. Vigilance Clearance, Vigilance Complaints, Disciplinary Proceedings, preparation of Agreed List and ODI List, STF: The Special Task Force (STF) has been constituted etc. are being handled by this section. at Headquarters office of the Directorate, specifically to carry out quality investigation in cases related to Drug Coordination: The work handled by this section includes Trafficking, Terrorist Financing and the Unlawful Activities compilation of monthly and other reports from Regions (Prevention) Act (UAPA), 1967. and Zones; Processing of antecedent verification on behalf of Directorate; Monitoring of recording of ECIR in Overseas Investigation Unit (OIU): This section deals coordination with Regions/Zones and predicate agencies; with the overseas enquiries and other matters relating to Compilation and dissemination of ML-1 and ML-2 reports; cooperation with foreign countries with whom India has Parliament Questions; Attending and replying to all RTI got mutual assistant arrangements through MLATs etc.; applications as well as appeals filed before the Appellate coordination related to formal and informal cooperation Authority; etc. with foreign authorities including preparation of LRs and Extradition requests; all forms of international cooperation Intelligence: The work handled by this section include including matters relating to G20-ACWG, UNODC, ARIN- handling of all non-vigilance complaints related to PMLA/ AP, World Bank, StAR Initiative, Asset Recovery etc.; FEMA etc.; dealing with COFEPOSA matters, handling processing of international meetings and trainings; etc. CVC/CEIB/IB/Cabinet Secretariat/other LEA referred matters including terror financing; Dealing with FIU, Systems and Training: This section handles all matters Egmont requests and bulk requests; Examination of STRs relating to information technology, electronics, internet/ and dissemination to Regions/Zones/Sub-zones intranet, coordination with NIC, installation and concerned and obtaining feedback on the same; Matters management of IT related software/hardware, running relating to ICJS; obtaining Customer Application Form and managing the Cyber Lab, computerization project, (CAF) and Call Data Record (CDR); Surveillance work in etc. It also conducts trainings of officers of the Directorate. terms of MHA guidelines; etc. 4.2.3.3 Organizational Structure at Regional, Zonal and Investigation: The work handled by this section includes Sub-zonal Offices: The present structure of all the monitoring the investigation of cases by Zones and Regional, Zonal and sub-zonal offices of the Directorate coordination with other agencies in ongoing investigation is tabulated hereunder: cases. 143Annual Report 2022-2023 S.No. Regions Zones Sub-zones 1. Western Region Mumbai -I Mumbai -II Nagpur Ahmedabad Surat Bhopal Indore Panaji Raipur 2. Northern Region Chandigarh -I Shimla Chandigarh -II Dehradun Gurgaon (Gurugram) Jalandhar Jaipur Srinagar Jammu 3. Southern Region Chennai -I Chennai -II Madurai Hyderabad Visakhapatnam Kochi Kozhikode Bengaluru Mangalore 4. Central Region Delhi -I Delhi -II Patna Lucknow Allahabad (Prayagraj) Ranchi 5. Eastern Region Kolkata -I Kolkata -II Gangtok Bhubaneshwar Guwahati -I Guwahati -II Agartala Aizawl Imphal Itanagar Kohima Shillong (a) Western Region: The Region is having its office is located at Delhi. It comprises of 05 Zones at Mumbai. The Region comprises of 06 Zones, namely Delhi-I, Delhi-II, Lucknow, Patna and namely, Mumbai-I, Mumbai-II, Ahmedabad, Ranchi and 01 Sub-Zone viz. Allahabad Bhopal, Panaji (Goa) & Raipur and 03 Sub- (Prayagraj) Sub-Zone falling under Lucknow Zones, namely, Nagpur under Mumbai-II, Surat Zone. under Ahmedabad and Indore under Bhopal. (e) Eastern Region: The Region is having its Office (b) Northern Region: The Region is having its office at Kolkata. It comprises of 05 Zones, namely, situated at Chandigarh. The Region comprises Kolkata-I, Kolkata-II, Bhubaneshwar, Guwahati- of 06 Zones, namely Chandigarh-I, Chandigarh- I & Guwahati-II and 07 Sub Zones namely II, Gurgaon (Gurugram), Jalandhar, Jaipur and Gangtok under Kolkata-II and other six sub-zones Srinagar and 03 Sub-Zones, namely, Shimla i.e. Agartala, Aizawl, Imphal, Itanagar, Kohima under Chandigarh-I, Dehradun under and Shillong, all under Guwahati-II. Chandigarh-II and Jammu under Srinagar. 4.2.3.4 The Regional Special Directors are assigned with (c) Southern Region: The Region is having its office the role of supervising and monitoring the overall working at Chennai. It comprises of 05 Zones, namely and functioning of the Zonal offices of the Directorate Chennai-I, Chennai-II, Bengaluru, Kochi and located at various cities within the Region and other Hyderabad and 04 Sub-Zones, namely, Madurai administrative/vigilance matters. Similarly, the Zonal under Chennai Zone-II, Mangalore under Additional/Joint Directors are responsible for the overall Bengaluru, Kozhikode under Kochi and supervision and functioning of the FUs under their Vishakhapatnam under Hyderabad. jurisdiction including the Sub-zones. The Sub-zonal offices are headed by Deputy Directors and they report (d) Central Region: The office of the Central Region to the Zonal Additional/Joint Directors. 144Department of Revenue III 4.2.3.5 The offices of the Directorate of Enforcement Explanation. — For the removal of doubts, it located all over India ensures that the money laundering is hereby clarified that,- offences are investigated in an effective manner and it (i) a person shall be guilty of offence of also acts as deterrence for the potential offenders. money-laundering if such person is found to 4.2.3.6 Considering the strategic importance of North- have directly or indirectly attempted to East Region, Directorate of Enforcement has indulge or knowingly assisted or knowingly strengthened its presence and intensified anti-money is a party or is actually involved in one or laundering activities including cross border financial more of the following processes or activities crimes, international hawala, terror financing and drugs connected with proceeds of crime, namely:- trafficking. The Directorate has set up offices in all the (a) concealment; or seven sisters of North-East (07 states under North- Eastern Region). (b) possession; or 4.2.4 Offence of Money Laundering (c) acquisition; or (d) use; or 4.2.4.1 Section 3 of the PMLA criminalizes the offence of money laundering related to a wide range of criminal (e) projecting as untainted property; or offences listed in the schedule to the PMLA. These offences include participation in an organized criminal (f) claiming as untainted property, group and racketeering, terrorism and terrorist financing, in any manner whatsoever; illicit trafficking in narcotics drugs and psychotropic substances, illegal human trafficking, illicit arms (ii) the process or activity connected with trafficking, illicit trafficking in stolen goods, corruption and proceeds of crime is a continuing activity and bribery, fraud, counterfeiting and piracy of products, continues till such time a person is directly environmental crimes, kidnapping, robbery, smuggling, or indirectly enjoying the proceeds of crime extortion, forgery, piracy and insider trading and market by its concealment or possession or manipulation. These offences listed in the schedule are acquisition or use or projecting it as untainted called "predicate offences" and section 3 of the PMLA property or claiming it as untainted property states that whoever is directly or indirectly involved or in any manner whatsoever.". associated with any process or activity connected with 4.2.4.3 Thus, after this amendment, it is not necessary "proceeds of crime" related to these criminal activity will that for committing an offence of money laundering, the be guilty of the offence of money laundering and is liable person concerned should project or claim the proceeds for punishment with rigorous imprisonment of three to of crime as untainted property, it is enough if he is directly ten years under section 4 of the PMLA. or indirectly involved in any process of activity connected 4.2.4.2 The scope of section 3 has been widened over with the proceeds of crime including its concealment, the years following a risk based approach to ensure that possession, acquisition or use. Thus, the definition of the each and every kind of money laundering offence is offence of money laundering is in full compliance with covered under the provisions and the "proceeds of crime" Article 3(1)(b) and 3(1)(c) of the Vienna Convection and are not enjoyed with any person who could in any way Article 6(1) of the Palermo Convention. connected to the underlying criminal activity. Through the 4.2.4.4 Further, it has been clarified that the money Prevention of Money Laundering (Amendment) Act, 2012, laundering cannot be interpreted as a one-time, section 3 was amended in the following manner with effect instantaneous offence that ceases with the concealment from 15th February, 2013 or possession or acquisition or use or projection of the proceeds of crime as untainted property or claiming it as "Whosoever directly or indirectly attempts to untainted. A person shall be considered guilty of the indulge or knowingly assists or knowingly is a offence of money laundering for as long as the said party or is actually involved in any process or person is enjoying the "proceeds of crime". activity connected with the proceeds of crime including its concealment, possession, 4.2.4.5 The offence of money laundering applies to acquisition or use and projecting or claiming it "whosoever" and thus includes a person who commits as untainted property shall be guilty of the offence the predicate offence, if that person is knowingly involved of money laundering." in the laundering of the proceeds and thus the offence of "self-laundering" is covered in the definition. The term In addition, through the Finance (No. 2) Act, 2019, the "whosoever" in its generality also covers any "person" following Explanation was added in section 3 of the PMLA which is defined in section 2(s) of the PMLA to include with effect from 1st August, 2019, an individual and all forms of companies, firms, 145Annual Report 2022-2023 associations and legal persons, which includes laundering evidencing title to, or interest in, such property or assets, by third parties. Thus, the legal persons are also covered wherever located. Through the Prevention of Money and are liable to be fined under the provisions of PMLA. Laundering (Amendment) Act, 2012, an Explanation has Section 70 of the PMLA provides that where the violation been added in section 2(1)(v) and it has been clarified of the Act is committed by a company, both the company for the removal of doubts that the term "property" includes and the individuals in charge of the company will be property of any kind used in the commission of an offence deemed to be guilty of that contravention unless they did under the PMLA or any of the scheduled offences. not have the knowledge of contravention or they have 4.2.4.9 A wide range of criminal offences have been exercised all due diligence to prevent it. listed in the schedule to the PMLA and are the "predicate 4.2.4.6 The term "proceeds of crime" has been defined offence" for the purposes of investigation of the offence in section 2(1)(u) of the PMLA to mean any property of money laundering and attachment/confiscation of the derived or obtained, directly or indirectly, by any person proceeds of crime. The list of predicate offences under as a result of criminal activity relating to a scheduled the PMLA have been expanded over the years based on offence or the value of any such property or where such a Risk Based Approach and the same has been property is taken or held outside the country, then the summarized below:- property equivalent in value held within the country or Sl. Amending Act Modification in the abroad. Many a times the proceeds of crime is consumed No. Scheduled Offence or expended or transferred outside India by the accused persons and is not available for confiscation. In order to 1. The Prevention of Addition of Part C in the deal with such situation, the concept of equivalent value Money-Laundering Schedule to include an of such property which is not available for confiscation Amendment Act, offence of cross-border has been provided under section 2(1)(u) of the PMLA. It 2009 w.e.f. 1.6.2009 implications and which may be noted that the provision for equivalent value of are specified in Part A property held within India, which may be attached/ of the Schedule and the confiscated by Directorate of Enforcement, if the proceeds offences against of crime is taken or held outside India was introduced property under Chapter through the Finance Act, 2015, with effect from 14th May, XVII of the Indian penal 2015, and its scope was further widened to property held Code abroad through the Finance Act, 2018, with effect from 2. Finance Act, 2015 Addition of Section 132 19th April, 2018. (w.e.f. 14.5.2015) of the Customs Act, 1962, relating to false 4.2.4.7 Through the Finance (No. 2) Act, 2019, the declaration, false following Explanation was added in section 2(1)(u) of the documents etc. with a PMLA with effect from 1st August, 2019 monetary limit of Rs. 10 "'Explanation.-For the removal of doubts, it is million hereby clarified that "proceeds of crime" include 3. Finance Act, 2018 Addition of Section 447 property not only derived or obtained from the (w.e.f. 19.4.2018) of the Companies Act, scheduled offence but also any property which 2013 relating to may directly or indirectly be derived or obtained Punishment for Fraud as a result of any criminal activity relatable to the scheduled offence;'." 4. Black Money Section 51 of the Black (Undisclosed Money (Undisclosed Thus, the scope of the expression "proceeds of crime" Foreign Income and Foreign Income and has been widened significantly and would not only include Assets) Imposition Assets) Imposition of of Tax Act, 2015 Tax Act, 2015 properties derived or obtained from the scheduled offence w.e.f. 1.7.2015 but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence. Thus, the money 4.2.4.10 In addition, the PMLA was amended through laundering offences can be investigated independently the Prevention of Money Laundering (Amendment) Act, without necessarily requiring investigation of predicate 2009 with effect from 1st June, 2009, to add Part C in the offence. schedule to provide that the predicate offence would include all the offences specified in Part A and also the 4.2.4.8 It may be noted that the term "property" has also offences against property under Chapter XVII of the IPC, been defined widely in section 2(1)(v) of the PMLA and if the offence has a cross-border implication. Offences means any property or assets of every description, of cross-border implications means any conduct by a whether corporeal or incorporeal, movable or immovable, person outside India which constituted an offence at that tangible or intangible and includes deeds and instruments place and which would have constituted an offence 146Department of Revenue III specified in the schedule to the PMLA had it been Directorate of Enforcement, or any other officer authorized committed in India and if such person transfers in any by him not below the rank of Deputy Director, to carry out manner the proceeds of such conduct or part thereof to search and seizure operation and seize any record or India. Thus, the predicate offences for money laundering property found during the search. If it is not practicable also extend to conduct that occurred in another country to seize such record or property, the officer concerned which constitutes an offence in that country and which may make an order to freeze the property prohibiting its would have constituted a predicate offence had it occurred transfer. Section 18 of the PMLA gives powers to the domestically. Accordingly, if the proceeds of crime relate officers of Directorate of Enforcement to search a person to drug trafficking in a foreign jurisdiction and the same and seize any property. In the case of seizure/freezing is laundered in India, action can be taken under the under sections 17 and 18 of the PMLA, the authorities provisions of the PMLA including attachment/confiscation concerned are required to make an application to the of properties. Adjudicating Authority for retention of such record or property or for continuing the order of freezing. 4.2.4.11An amendment in section 44 of the PMLA was also carried through the Finance (No. 2) Act, 2019, to 4.2.5.4 The Adjudicating Authority is a quasi-judicial body clarify for the removal of doubts that the jurisdiction of comprising of a chairperson and two other members. On the Special Court, while dealing with an offence under receipt of a complaint under sections 5 or 17 or 18 of the the PMLA, will not be dependent upon any order passed PMLA, if the Adjudicating Authority has reason to believe in respect of the schedule offence. Thus, even if a that any person has committed an offence under section accused is discharged/acquitted from scheduled offence, 3 of the PMLA or is in possession of proceeds of crime, it the trial for the offence of money laundering will continue. may serve a notice of not less than 30 days on such This also means that while proving the property as the person calling upon him to indicate the sources of his proceeds of crime, it is not necessary that a person be income, earning or assets, out of which or by means of convicted of a predicate offence. It has also been clarified which he has acquired the said property, the evidence through Finance Act (No. 2) of 2019, for the removal of on which he relies and other relevant information and doubt, that the offence of money laundering are particulars, and to show cause why all or any of such cognizable and non-bailable offences and thus the officers properties should not be declared to be the properties of the Directorate of Enforcement have the powers to involved in money-laundering and confiscated by the arrest subject to certain conditions. Government. 4.2.5.5 The Adjudicating Authority after taking into 4.2.5 Attachment and Confiscation consideration the above reply, hearing the aggrieved 4.2.5.1 Section 5 of the PMLA provides that where the person(s) and the officers of the Directorate of Director, Directorate of Enforcement, or any other officer Enforcement, and after taking into account all relevant not below the rank of Deputy Director authorized by him, material, records a finding whether the properties are has reason to believe (the reason for such belief to be involved in money laundering. recorded in writing), on the basis of material in his 4.2.5.6 After the Adjudicating Authority decides that the possession, that (a) any person is in possession of any property is involved in money-laundering, it confirms the proceeds of crime and (b) such proceeds of crime are order of attachment/freezing and gives a finding that the likely to be concealed, transferred or dealt with in any attachment shall continue during the investigation for a manner which may result in frustrating any proceedings period not exceeding 365 days or during the pendency relating to confiscation of such proceeds of crime, he of the proceeding related to any offence under the PMLA may, by order in writing, provisionally attach such property before a Court, including foreign Courts. Thus, after the for a period not exceeding 180 days from the date of the order of the adjudicating authority, the attachment/freezing order. continues during the investigation and will also continue 4.2.5.2 After the attachment, the officer concerned is after filing of a prosecution complaint till the matter is required to forward a copy of the attachment order along finally decided by the Court. with the material in his possession to the Adjudicating 4.2.5.7 The order of confiscation is passed by the Special Authority for adjudication. The attachment will cease to Court under section 8(5) of the PMLA after conclusion of have effect after the expiry of 180 days or after the order the trial for the offence of money laundering and all rights of adjudication, whichever is earlier. The period of stay and title in the property vest absolutely in the Central by the High Court, however, shall be excluded for Government free from all encumbrances. However, after computing the period of 180 days. During the period of the confirmation of the attachment/freezing by the attachment, however, the persons interested in the Adjudicating Authority, a quasi-judicial body, it is provided enjoyment of the immovable property so attached is not in section 8(4) of the PMLA that the officers of the prevented from such enjoyment. Directorate of Enforcement will take possession of the 4.2.5.3 Section 17 of the PMLA gives power to Director, property attached and thus it is ensured that the offenders 147Annual Report 2022-2023 do not enjoy the "proceeds of crime". Thus, after committing the offence of money laundering or part of it confirmation of attachment/freezing by the Adjudicating or the offence itself has been committed outside the Authority, it no longer remains only a "provisional country or the witnesses and other material evidence are measure" as the property is not available to the criminals. available in another country, it may be necessary to gather information or conduct formal investigation abroad. 4.2.5.8 Any person aggrieved with the order of Adjudicating Authority, including the officers of the 4.2.7.2 Generally, the basis for seeking Mutual Legal Directorate of Enforcement, can file an appeal within 45 Assistance from a Contracting State is the Mutual Legal days before the Appellate Tribunal, another quasi-judicial Assistance Treaty in Criminal Matters (MLAT). As of now, authority under section 26 of the PMLA and the Appellate India has signed MLAT with 45 countries. Mutual Legal Tribunal after giving the parties to the appeal an Assistance can also be sought on the basis Multilateral opportunity of being heard may pass such orders thereon Treaties, such as, United Nation Convention against as it thinks fit, confirming, modifying or setting aside the Corruption (UNCAC) or United Nation Convention on order appealed against. Any person aggrieved with the Transnational Organized Crime (UNCTOC). Where there order of Appellate Tribunal may file an appeal to the High is no such treaty the request can be made on the basis Court within 60 days on any question of law or fact arising of mutual assurance of reciprocity. These requests are out of such order. normally made through the Special Courts under section 57 of the PMLA although under the MLAT or the 4.2.6 Investigation, Prosecution and Conviction multilateral treaties, the requests need not be routed 4.2.6.1 Under the PMLA, the officers of the Directorate through the Courts. of Enforcement have wide range of powers to investigate 4.2.7.3 If an order of attachment/freezing/confiscation the offence of money laundering and for attachment/ has been issued by the officers of the Directorate of freezing and confiscating the proceeds of crime. These Enforcement and the said property is suspected to be in include powers of summons, survey, search and seizure, a foreign jurisdiction, the Special Court may issue a letter search of persons, arrest etc. The officers of various other of request to a court or an authority in the foreign departments such as officers of CBIC, CBDT, police, RBI, jurisdiction for execution of such order. SEBI, IRDA etc. are empowered and required to assist the officers of the Directorate of Enforcement in the 4.2.7.4 The Directorate of Enforcement also provides enforcement of PMLA. assistance to foreign jurisdictions and investigates the offence of money laundering by carrying out necessary 4.2.6.2 After registering the complaint, at the first inquiries if a request is received from a Court or authority instance, the officers of Directorate of Enforcement in the said foreign jurisdiction. It may also attach, seize, identify, quantify and trace the "proceeds of crime". They freeze, or confiscate the property in India derived or also collect the evidence relating to the commencement obtained, directly or indirectly, by any person from the of the offence, which may comprise of information commission of an offence under the corresponding law received from predicate agency on parallel financial committed in the foreign jurisdiction if a request is investigation, examination of accused, other persons received from a Court or authority in the said foreign associated with the offence and third parties, reduction jurisdiction. of their statement in writing, carrying out survey and search etc. They provisionally attach the properties 4.2.8 Performance of Directorate of Enforcement identified as "proceeds of crime" and file a complaint in the area of PMLA before the Adjudicating Authority. In appropriate cases, 4.2.8.1 During the Financial Year (F.Y.) 2022-23 (up to joint investigation in collaboration with the predicate 30.11.2022), the Directorate has taken up investigations agency is also conducted. under the provisions of PMLA in 363 cases. Total number 4.2.6.3 After carrying out the necessary investigation, the of investigations initiated by the Directorate is 5785 as Directorate of Enforcement also file a Prosecution on date. Complaint before the Special Courts constituted under 4.2.8.2 As on date, the Directorate has identified section 43 of the PMLA, who takes cognizance of the proceeds of crime amounting to Rs. 1,85,213 crores offence of money laundering committed under section 3 (approx.). During F.Y. 2022-23 (up to 30.11.2022), the of the PMLA. After trial in the Special Court, the accused Directorate has attached proceeds of crime with the is convicted and is punished in accordance with section aggregate value of Rs. 9092.84 crores by issuance of 4 of the PMLA. 133 Provisional Attachment Orders. The Proceeds of Crime amounting to Rs. 1,13,793 crores have been 4.2.7 International Cooperation attached by issuance of 1588 Provisional Attachment 4.2.7.1 When proceeds of crime related to offence Orders as on date. Thus, 61.43% of the total identified committed in India, is transferred in foreign jurisdictions, proceeds of crime stands attached as on date. The or when accused person(s) has escaped from India, after Adjudicating Authority has confirmed attachment of 148Department of Revenue III properties worth Rs. 8787.20 crores during this F.Y. up Moreover, extradition proceedings in case of high to 30.11.2022. Thus, total amount of confirmed attached profile fugitive economic offenders are also being properly properties by Adjudicating Authority as on date is Rs. followed up by the Directorate. 67,379 crores. 4.2.11 Performance of Directorate of Enforcement 4.2.8.3 During F.Y. 2022-23 (up to 30.11.2022), in the area of Extradition and Red Notice Prosecution Complaints have been filed in 120 cases. During the Financial Year 2022-23 (up to 30th Total numbers of Prosecution Complaints filed under November), the Directorate of Enforcement has made PMLA is 1112 as on date. requests for publishing of Red Notice in respect of 01 4.2.8.4 During F.Y. 2022-23 (up to 30.11.2022), the person. Further, a total of 02 Extradition requests have Special Court, PMLA has ordered for confiscation of Rs. been sent to various countries. Till date, the Directorate 2.42 crore (approx.) and imposed a cumulative fine of of Enforcement has made requests for publishing of Red Rs. 07.40 lakhs (approx.) on the accused. Further, Notice in respect of 36 persons, out of which Red Notice proceeds of crime amounting to Rs. 45.55 crore (approx.) has been published in respect of 19 persons. A total of has also been confiscated by the Special Court, PMLA 35 Extradition requests have been sent to various under section 8(7) of PMLA. Thus, during the F.Y. 2022- countries in respect of 23 individuals. 23 (up to 31.12.2022) total confiscation amount under ED is working tirelessly to extradite the fugitive PMLA is Rs. 47.97 crore (approx.). Further, the total economic offenders who have evaded the process of law confiscation amount under PMLA, as on date is Rs. in India by staying outside the jurisdiction of Indian Courts. 15,623.40 crore (approx.). The efforts of the Directorate have resulted in successful 4.2.8.5 During F.Y. 2022-23 (up to 31.12.2022), the representation before Competent Court abroad in Directorate has secured 06 conviction orders in which extradition of various fugitive economic offenders. In this 12 accused have been convicted by the Special Court regard, it is pertinent to mention that UK Court has PMLA. It is appropriate to mention here that as on date approved extradition of few high profile accused persons the Directorate has secured 21 conviction orders wherein to India following effective representation of the 35 accused have been convicted. Further, in only one Directorate in coordination with other LEAs and Indian case accused has been acquitted by Special Court, PMLA mission abroad. on merit. Thus, it is pertinent to highlight that total percentage of conviction is very high in PMLA cases which 4.2.12 Restitution of properties to Public Sector is 95.45%. There are few cases wherein proceedings Banks under PMLA could not proceed further due to quashing ED is not only actively pursuing the economic of the predicate offences investigated by Law offenders to unravel the money laundering but at the same Enforcement Agencies. time is also making efforts for the restitution of assets to 4.2.9 Performance of Directorate of Enforcement the banks and others who have lost money. Vijay Mallya, in the area of FEMA Nirav Modi and Mehul Choksi have defrauded Public Sector banks by siphoning off the funds through their During the Financial Year 2022-23 (up to 30th November), companies which resulted in total loss of Rs. 22,585.83 the Directorate has initiated investigation in total number crore to the public sector banks. As on 30.11.2022, assets of 2521 cases under the provisions of Foreign Exchange worth Rs. 19111.20 crore have been attached under the Management Act, 1999 (FEMA). A total number of 261 provisions of Prevention of Money Laundering Act, 2002. Show Cause Notice have been issued and 314 cases Out of which, assets worth Rs.15113.91 crores has been have been adjudicated during the period. Further, penalty restituted to the Public Sector Banks. In addition, assets of Rs. 2149.01 crores has also been imposed and penalty worth Rs.764.44 crores have been confiscated to amounting to Rs. 11.93 crore (approx.) have been realized Government of India. As on 30.11.2022, 84.61 % of the during the period. total defrauded funds in these cases have been attached/ 4.2.10 Performance of Directorate of Enforcement seized and 66.91% of total loss to the banks has been in the area of FEOA handed over to Banks/Confiscated to GOI. It is pertinent to mention here that till 30.11.2022, the consortium of As on 30th November, 2022, ED has filed banks led by SBI has realized Rs.7975.27 crore by sale applications under FEOA against 15 persons, out of which of assets handed over to them by Directorate of 09 persons have been declared as Fugitive Economic Enforcement. Offenders by the Competent Courts. Hon'ble Special Court has ordered for confiscation of properties to the 4.2.13 Special Focus on Terror Financing tune of Rs. 862.43 crores (all the Foreign Currency values are converted to INR) respect of various accused. Hearing 4.2.13.1 The Directorate of Enforcement gives special for confiscation of properties in respect of other declared focus on investigation of terror financing cases. The FEOs is underway in the Competent Courts. terrorism cases under UAPA are investigated and 149Annual Report 2022-2023 prosecuted by the National Investigation Agency (NIA) but also files Prosecution Complaints against the terror under the NIA Act, 2008. However, the State Police accused under the PMLA. Authorities also investigate the terrorism cases under 4.2.13.7 ED has taken strict action against terrorist UAPA and also under various provisions of the IPC. activities by way of registering several cases related to 4.2.13.2 The focus of investigation by the Police terror funding against anti-national elements and Authorities are normally on criminal investigation such intensified money laundering investigation to trace and as from where the arms have been received, how the deter the terror funding leading to unearthing of Proceeds conspiracy has been hatched, who was the mastermind, of Crime (PoC) to the tune of more than Rs. 1200 Crores what was the plot, what was the motive, who were (approx.). Out of these identified PoC, 169 (approx.) involved etc. movable and immovable properties having book value of Rs.1062 Crores (approx.) have been attached. The 4.2.13.3 The Directorate of Enforcement, after a attached properties include both movable and immovable reference is made to it by the police authorities, carries properties of Rs. 858.73 Crores (approx.) in India and out the financial investigation, including from where the Rs.203.27 Crores (approx.) in abroad. In one of the case, funds have been received, how the funds were layered the accused has been declared as Fugitive Economic into the banking channels, and if not through banking Offender and the properties worth Rs. 97.99 Crores have channels, whether it was from Hawala or Barter Trade or been confiscated under the provisions of Fugitive Trade Based Money Laundering. It also investigates, how Economic Offenders Act, 2018 (FEOA). A total of 32 and to whom the funds were distributed and if the funds prosecution complaints (Charge-sheets) have been filed have been invested in some property, whether the under the Prevention of Money Laundering Act, 2002 and property still exist or is liquidated. Once the property is in 03 cases the accused have been convicted by PMLA identified, the Directorate of Enforcement provisionally Special Court. Further, 10 accused have been declared attaches the property and then takes possession after proclaimed offender and 03 others have been declared confirmation by the Adjudicating Authority. If the property Fugitive Economic Offenders by the Special Courts. is liquidated, equivalent amount of property, whether in India or abroad, is attached. 4.2.13.8 Action against insurgent groups in the North- East Region: In order to put a curb on the funding of 4.2.13.4 During investigation of cases related to terror insurgency activities in the North-East Region, the financing by ED, it has been found that the terrorists use Directorate has taken up several investigations under the a number of methods for funding including the following: provisions of PMLA against some of the prominent • Banking channels by receipt of foreign extremist groups such as NSCN (IM), NSCN (K), Dima remittances Halam Daogah (Jewel Garolsa Faction). • Authorized money transfer services such as 4.2.13.9 Action against Naxal funding in Bihar, Western Union Jharkhand and Chhattisgarh: Strict actions under PMLA • Hawala Payments have been taken against LWEs active in Bihar, Jharkhand & Chhattisgarh leading to attachment of properties and • Donations to NPOs/Social Welfare Organizations filing of Prosecution Complaints in several cases. As on • Barter Trade 30.11.2022, PoC amounting to more than Rs 18 crores • Fake Indian Currency Notes has been identified in Naxal/LWE related cases out of which, PoC amounting to Rs 10.37 crores involving 147 4.2.13.5 It may be noted that Barter Trade was properties (61 - movable and 86 - immovable) stands allowed between India and Pak Occupied Kashmir, attached in 14 different PAOs. Further, 12 prosecution across the Line of Control. This mode of trade was being complaints have been filed in Naxal/LWE related cases. misused by the Pakistan based elements for illegal inflow 4.2.14 Proactive Steps taken by ED in other key of narcotics, weapons and Fake Indian Currency Notes. areas of money laundering are as follows: Huge seizures of narcotics have been affected from concealments in the trucks being used in the name of (i) Stringent action in money laundering cases trade across LOC. Besides, invoice manipulation was related to NDPS being used for generating cash for terror funding. In NDPS related cases, as on 30.11.2022, Therefore, the Barter Trade has been suspended by the Proceeds of Crime (PoC) amounting to Rs 1445.11 crores Government of India, pending strict regulatory have been identified. Out of which PoC amounting to Rs mechanism in April, 2019. 1132.78 crores stands attached in 49 different PAOs. Total 4.2.13.6 In terror financing cases, ED has a very 40 Prosecution Complaints including 03 supplementary important role both in tracing the proceeds of crime and Prosecution Complaints have been filed before Special its laundering by the terrorists. ED not only attaches the Court PMLA resulting in conviction in 02 cases convicting Proceeds of Crime and takes possession of the same 06 accused persons. Further, 03 accused have been 150Department of Revenue III declared as Fugitive Economic Offender under the As on 30.11.2022, the Directorate has taken up Fugitive Economic Offenders Act, 2018 by the Special investigation in 08 cases related to illegal sand mining Court. which resulted in unearthing of proceeds of crime amounting to Rs. 209.30 crore, out of which proceeds of (ii) Special focus on Cyber Crime & Crypto crime amounting to Rs. 205.80 crore has been attached/ Assets related cases seized. Further, 02 prosecution complaints have also The Directorate has taken vigilant steps in been filed in these cases which are at different stages of tackling the threat of money laundering through Cyber trial. Crime and Crypto assets related cases. As on 30.11.2022, In cases related to illegal Coal mining, proceeds investigation has been initiated in 37 Cyber Crime & of crime amounting to Rs. 198.72 crore has been Crypto Assets related cases which led to identification of attached. Further, 05 Prosecution Complaints have been Rs. 3412.18 crores as Proceeds of Crime under PMLA. filed which are at different stages of trial and 01 accused Out of which Rs.1115.65 crores has been attached/ has been declared as Proclaimed offender. freezed/seized in different PAOs/seizure order/freezing order issued by ED. Total 10 Prosecution Complaints have 39 cases related to illegal mining of other natural been filed which are at different stages of trial. The action resources have been taken up for investigation by the taken by ED is not limited to PMLA but alternate measures Directorate which resulted in identification of proceeds under FEMA has also been explored by ED to curb the of crime amounting to Rs.2724.91 crore, out of which fraudsters and assets amounting to Rs. 289.28 crores proceeds of crime amounting to Rs.2693.71 crore stands has been seized under section 37A of FEMA. attached / seized. Further, 09 Prosecution complaints have also been filed in these cases which are at different (iii) Unearthing of modus operandi adopted by stages of trial. foreign entities / nationals The Directorate of Enforcement has also taken ED has played a pioneering role in unearthing of various up investigation in 17 cases related to Environmental modus operandi adopted by foreign entities / nationals in crimes and 42 cases related to Wildlife crime cases which looting the public money from gullible and innocent resulted in attachment of proceeds of crime of Rs. 8.39 Indians. The method adopted by these unscrupulous crore and Rs.122.55 crore respectively in Environmental foreign entities / nationals are summarized below: crime and wildlife crime cases. 07 Prosecution • Fraud committed through various unauthorized Complaints have been filed in these cases which are at loan apps, micro financing, lending apps. different stages of trial. • Siphoning off Indian money away illegally in the (v) Cases related to SEBI, Hawala, Shell company name of royalty payment. & Real estate • Lack of KYC by payment aggregators and fintech The Directorate has taken up investigation in companies. several cases related to Hawala which resulted in • unearthing of proceeds of crime amounting to Rs. 1635.97 Online gaming/dating/betting applications crore, out of which proceeds of crime amounting to Rs. promoted by foreign entities with the help of 379.38 crore has been attached / seized. Further, 27 dummy Indian Directors. prosecution complaints have also been filed in these • Running app based tokens which promised cases which are at different stages of trial and 15 accused higher gains in mining machines for bitcoin and have been declared as Proclaimed offender. other cryptocurrency. In SEBI related cases, proceeds of crime • Running ponzi schemes through fake websites. amounting to Rs.1505.81 crore have been identified in • 23 cases. Out of which proceeds of crime amounting to Hawala through shell companies. Rs. 578.69 crore have been attached / seized. Further, 05 prosecution complaints have also been filed in these As a result of ED investigations, the Proceeds of cases which are at different stages of trial and 07 accused Crime (PoC) around Rs.4000 crores has been identified, has been declared as Proclaimed offender. out of which PoC amounting to Rs.1275 crores has already been attached under PMLA. However, further In cases related to Shell companies, proceeds PoC and other similar networks are being identified under of crime amounting to Rs.47937.82 crore have been the supervision of the Director, ED. identified, out of which proceeds of crime amounting to Rs.39475.81 crore has been attached / seized. Further, (iv) Money laundering cases related to Sand 89 prosecution complaints have also been filed in these mining, Coal mining, Illegal mining of other natural cases which are at different stages of trial and 06 accused resources, Illegal logging, Wildlife and Environment have been declared as Proclaimed offender. related cases 151Annual Report 2022-2023 In cases related to Real-Estate, proceeds of the Directorate from 12th March, 2021. The crime amounting to Rs. 13425.98 crore have been Mahotsav is being celebrated in this Directorate. identified, out of which proceeds of crime amounting to Rs. 9649.29 crore has been attached / seized. Further, (b) A Vigilance Awareness Week was also organized 26 prosecution complaints have also been filed in these by the Directorate during 31st October to 6th cases which are at different stages of trial and 10 accused November, 2022 to create awareness among has been declared as Proclaimed offender. staff to check corruption at every level so that a corruption free society could be attained. (vi) Money laundering cases having impact over public at large (c) International Day of Yoga was celebrated on 21st June, 2022 by all the offices of this Directorate. In the recent past, the work of ED has increased All the officers / officials of the Directorate considerably both qualitatively and quantitatively. participated with enthusiasm and zeal. Investigations in cases involving bank frauds, corruption in public life and others having impact over public at large (d) To ensure rational distribution of work, the were fast tracked which also resulted in huge cash concept of Functional Unit has been introduced seizure, arrest and filing of Prosecution Complaint within in each field of work across all the offices/ short period of 60 days. ED is working without fear or formations. For ensuring specialized, targeted favour and the Rule of law is being applied to all accused and smooth working, each such unit is self- irrespective of his or her position in Government or contained unit headed by an officer of the rank society. Further, deterrence against future systemic bank of Deputy Director with clearly demarcated frauds has been reinforced by expeditious investigation resources and responsibilities including in several bank fraud cases including YES Bank, PMC investigation, administration, intelligence etc. Bank, ICICI Bank, DHFL. These Functional Units were created vide order Two of such cases caught the attention of whole dated 11.02.2021 and now the functioning of the nation wherein ED recovered huge cash during its search same is streamlined and settled. operation viz. cash of Rs. 19.31 crore was recovered and (e) Further, with a view to have unique designation seized in Jharkhand belonging to a high profile IAS officer. of Deputy Directors and Assistant Directors In another case of fraud to public at large in the SSC posted in the various offices of the Directorate recruitment scam in West Bengal, cash of Rs. 49.80 Crore of Enforcement and to ensure broad uniformity has been seized from two premises connected with a in work allocation amongst the officers working sitting minister of the state government. In addition, in this Directorate, an order in this regard jewellery worth Rs. 5.08 Crore, bank balance of more specifying the designations and broad allocation than Rs. 8 Crore and more than 25 immovable properties of work was issued on 04.05.2021. including land, farm house, residential flats, commercial space and industrial plot have been unearthed and (f) Designation based email IDs at all levels were attached under PMLA. The total amount seized / attached also created in the Directorate to ensure in this case stands at Rs. 103.10 crores. Thus, the continuity, credibility and to preserve the staggering quantum of loot of public money has been institutional memory. This has ensured detected and prompt action taken by ED has not only led definitiveness and accountability in official to recovery of looted public money but also in exposing communications. the criminal nexus of PEPs and bureaucrats. In the above cases and other similar cases where (g) To address the issue of lack of manpower being arrests under PMLA have been made, subsequent filing faced by the ED, a cadre restructuring committee of Prosecution Complaint within statutory period of 60 was constituted and its report dated 01.11.2021 days of arrest has been ensured. was submitted to the Department of Revenue (DoR) which is being examined and is under 4.2.15 Other Initiatives active consideration of DoR. Other initiatives taken by the Directorate of 4.2.16 ED also adheres to the rules and guidelines Enforcement includes the following: framed by Government for the welfare of differently-abled (a) Celebration and commemoration of 75 years of persons, SCs/STs & other weaker sections of the Society independence India and the glorious history of ensuring their adequate representation in different its people, culture and achievements, "Azadi Ka positions in the Organization. Amrit Mahotsav", a 75 week countdown to our 75th anniversary of Independence intended to 4.3 Financial Intelligence Unit - India (FIU-IND) end post a year on 15th August, 2023, started in 4.3.1 Background and function of FIU-IND 152Department of Revenue III Financial Intelligence Unit-India (FIU-IND) was c. Provided information in 3085 cases set up by the Govt. of India to coordinate and strengthen requested by the agencies. collection, analysis and sharing of financial intelligence iv. Regional and global AML/CFT efforts (01 April through an effective national, regional and global network 2022 to 30 November 2022): to combat money laundering and related crimes. 4.3.2 The main functions of FIU-IND include all a. 77 requests received from foreign FIUs matters pertaining to during 01.04.2021 to 30.11.2021. a) Analysis of information/reports received from b. 255 requests sent to foreign FIUs during Reporting Entities as per the provisions of PMLA 01.04.2021 to 30.11.2021. 2002 and Rules made there under and their dissemination to authorized domestic agencies v. Increasing awareness about money for further action. laundering and terrorists financing (01 April 2022 to 31 October 2022): b) Enforcement of the provision of PMLA in so far as it relates to FIU-IND. a. 31 Programmes for training REs were conducted in which 859 participants c) Egmont Group and exchange of information with participated. foreign FIUs. b. 2 Review meetings at FIU-IND were held in d) Interface with reporting entities and their which 4 participants participated. regulators and domestic agencies authorized to c. 34 Training Programmes for training LEAs receive information from FIU-IND including were conducted in which 1260 participants promoting awareness about AML/CFT, capacity participated. building and training. d. 17 meetings with LEAs were conducted in 4.3.3 Highlights of the Performance/ achievements which 348 participants participated. during 2022-23 (from 01 April 2022 to 30 November 2022) vi. Strengthening legislative and regulatory framework: i. Collection of information (01 April 2022 to 30 November 2022): a. Regular interaction with the Department of Revenue and Regulators. a. 9403744 Cash Transaction Report (CTRs) received. b. Suggestions received from stake holders or through Department of Revenue for b. 248082 Suspicious Transaction Reports amendments to the Prevention of Money (STRs) received. Laundering Act, 2002 and the PML c. 141041 Counterfeit Currency Reports (Maintenance of Records) Rules, 2005 were (CCRs) received. dealt with. d. 548806 NPO Transaction Report (NTRs) c. Participated in proceedings of the AML received. Steering Committee for evolving Risk based approach and framing of the National ML/ ii. Analysis and dissemination of information (01 TF Risk Assessment. April 2022 to 30 November 2022): vii. Strengthening IT information: a. 38420 STRs processed. a. Initiation of Project FINnet 2.0 b. 48246 STRs disseminated. b. Designation and Conceptualization of FINnet iii. Collaboration with domestic Law 2.0 features and initiation of tendering Enforcement and Intelligence Agencies (01 process April 2022 to 30 November 2022): 4.4 Economic Security (ES) a. Regular interaction and exchange of information. 4.4.1 Economic Security Cell is dealing with the administration and implementation of the Prevention of b. Received 3314 requests for information from Money Laundering Act, 2002. Based on PMLA, Economic intelligence and Law Enforcement Agencies. Security Cell is also looking after framing / amendment 153Annual Report 2022-2023 of PMLA Rules on matters relating to Know Your orders in Original Complaint and Original Application have Customer (KYC norms), setting up of special Courts been pronounced in 494 nos. of cases (as against 245 under PMLA, Section 66 of PMLA - authorities to whom cases last year) except 146 nos. of cases where the information to be disseminated etc. from time to time. Hon'ble courts granted stay in respect of Provisional Attachment orders/Original applications furnished by 4.4.2 Prevention of Money Laundering Act (PMLA) was Directorate of Enforcement. enacted on 17th January, 2003 and brought into force on 1st July 2005. The object of this Act is to prevent money 4.5 Financial Action Task Force laundering and to provide for confiscation of property i. Financial Action Task Force (FATF) is an derived from, or involved in, money - laundering and for independent inter-governmental body having 39 matters connected therewith or incidental thereto. Two members (37 jurisdictions and 2 organizations) main objectives of the Act are: established by its member jurisdictions for • Criminalize money laundering and provide for effective implementation of legal, regulatory and attachment, seizure and confiscation of property operational measures for combating money involved in money laundering [Implemented by laundering, terrorist financing, combating Enforcement Directorate]; and financing or proliferation of weapons of mass destruction in countries across the world. India • Prescribe obligations on banks, financial became a member of FATF in 2010. India is also Institutions and intermediaries relating to KYC, a member of two FATF Style Regional Bodies record keeping and furnishing reports (FSRBs) -Asia Pacific Group (APG) and Eurasian [Implemented by Financial Intelligence Unit (FIU- Group the combating Money laundering and IND)]. Financing of Terrorism (EAG) 4.4.3 PMLA has been amended from time to time to ii. The core work of FATF is to conduct Mutual overcome the deficiencies and to meet the international Evaluation of its Members and to guide and assist standards on Anti-Money Laundering as prescribed by FSRBs to conduct Mutual evaluation of their Financial Action Task Force (FATF). respective member jurisdictions. India's last Mutual Evaluation was conducted in the year 4.4.4 Adjudicating Authority under Prevention of 2010 and the next Mutual Evaluation is scheduled Money Laundering Act, 2002 to begin in May 2023 based on the revised 4.4.4.1 The Prevention of Money Laundering Act standards of FATF (40 recommendations and 11 (PMLA), 2002 was enacted by the Parliament to prevent Immediate outcomes). money laundering and connected activities, confiscation iii. The Mutual Evaluation is very comprehensive of proceeds of crime and setting up of agencies and and intense exercise and evaluates the anti- mechanism for coordinating measures for combating money laundering and combating terror financing money laundering. (AML/CFT) abilities of a country's financial sector. 4.4.4.2 The Director, Directorate of Enforcement has been designated as the Director for exercising powers iv. FATF Cell was constituted in DoR in 2017 vide under the PMLA, 2002 and is authorized to provisionally GOI Gazette Notification dated 9th Nov, 2017. attach the property allegedly involved in money laundering. The Adjudicating Authority is empowered to v. Coordination or work related to FATF Secretariat confirm/ relief the provisional Attachment after hearing is the main function of FATF Cell. As part of this, the aggrieved parties to ensure that property is not FATF coordinates with other key agencies such disposed of during the pendency of trial for scheduled as ED, FIU-IND, RBI, SEBI, IRDAI, MHA, NIA, offences of money laundering or proceeds of crime MEA, MCA etc. money laundered. vi. The Cell receives, circulates and discusses 4.4.4.3 The Adjudicating Authority consists of a various documents/ proposals related to FATF, chairperson and two Members. The post of Chairperson APG, EAG with all the concerned stakeholders & Members are tenure post after retirement from erstwhile within the country and comments of India are sent job. The Adjudicating Authority received 271 nos. of on these issues, keeping national interests in Provisional Attachment Orders (PAOs) and 271 nos. of view. Original Complaints (OCs) till November 2022. In addition, 169 nos. of Original Application (OAs) for retention of vii. The FATF cell also handles nominations of Indian seized documents from Directorate of Enforcement were delegation to the Plenaries and other important received till November 2022. 2 Nos. of Miscellaneous meetings of FATF, APG and EAG. Officers from Application (MA) also received till November 2022. Final the key agencies along with officers from FATF 154Department of Revenue III Cell participate in these meetings and the Working Group meetings of FATF, EAG, APG are delegation takes part in the multilateral being conducted in virtual mode and Indian discussions on various issues. delegation has been attending the same. Since February 2022, the Plenary and Working Group viii. Currently, the FATF Cell is coordinating the work meetings of FATF are being held in physical related to India's upcoming mutual evaluation. format and therefore have been attended by India Joint Secretary (Revenue) is the National in person. The February 2022 FATF Plenary was Coordinator and Director (FATF) is the Deputy held in Paris, France and was attended by a two National Coordinator for the Mutual evaluation member delegation from India whereas the June exercise. and October 2022 FATF Plenaries, which were held in Berlin and Paris, were attended by a 6 ix. An important part of FATF mutual evaluation is member and 9 member delegation from India. to conduct National Risk Assessment where risk of various sectors of the economy like Banking, 4.6 Narcotics Control (NC) Insurance, Capital Markets, Designated Non- The Narcotics Control Division administers the Financial Business and Profession sectors etc., Narcotic Drugs and Psychotropic Substances Act,1985 are assessed periodically. FATF Cell, DoR (61 of 1985), which prohibits, except for medical and functions as the coordinator for conducting scientific purposes, the manufacture, production, India's/TF NRA. possession, sale, purchase, transport, warehouse, use, consumption, import inter-State, export inter-State, import x. An Inter- Ministerial Coordination Committee has into India, export from India or transshipment of narcotic been constituted under the Chairpersonship of drugs and psychotropic substances. The policy of the Revenue Secretary under Sec.72A of PMLA with Governments has thus been to promote use of narcotic the mandate of macro-level policy decision Drugs and psychotropic substances for medical and making on AML/CFT matters, operational co- scientific purposes while preventing their diversion from operation between the Government, law licit sources, and prohibiting illicit traffic and abuse. The enforcement agencies, the Financial Intelligence Narcotic Drugs and Psychotropic Substances Act divide Unit-India and the regulators or supervisors, and the powers and responsibility of regulation of licit activities. supervision of National Risk Assessment (NRA). Section 9 of the Act has listed various activities which FATF Cell works as the Secretariat to the IMCC. the Central Government can, by rules, regulate while xi. An AML/ CFT Joint Working Group under the Section 10 lists various activities which the State Chairmanship of Additional Secretary (Revenue) Governments can, by rules, regulate. Accordingly, has been created for enhancing operational co- Narcotic Drugs and Psychotropic Substances Rules, 1985 ordination among all stakeholders. have been framed by the Central Government, which regulates cultivation of opium, manufacture, import/export xii. FATF Cell is also part of the core group of narcotic drugs and psychotropic substances. Further constituted by Department of Personnel and to prevent diversion of precursor chemicals, of wide Training to work on G20 Anti-Corruption Working industrial use, for illicit manufacturing of, narcotic Drugs Group (ACWG) and is working closely with all and psychotropic Substances, the Narcotic Drugs and stakeholders on the Action plan for 2022-24 Psychotropic Substances (Regulations of Controlled which covers the year of 2023, India's presidency Substances) Order, 2013 has been framed under Section of G 20. FATF Cell provides regular inputs for 9A of the NDPS Act. the Finance Track of G 20 coordinated by DEA, BRICS AML/CFT meetings, RIC meetings, CT 4.6.1 FUNCTIONS/ WORKING OF THE CENTRAL Dialogues, to UN on Terrorist Financing related BUREAU OF NARCOTICS. Targeted Financial Sanction and meetings of 4.6.1.1 Organizational set up other multilateral economic bodies. The Narcotics Commissioner heads the Central xiii. During the year 2022, FATF Cell, Department of Bureau of Narcotics (CBN) with headquarters at Gwalior. Revenue worked closely with financial sector The Narcotics Commissioner exercises control and supervisors and regulators in order to improve supervision over opium poppy cultivation, which is the existing AML/CFT infrastructure, and presently undertaken in select notified areas of the three meetings were held to improve our compliance states of Madhya Pradesh, Uttar Pradesh & Rajasthan. with FATF standards. Officers from FATF Cell In addition to the work relating to licensing of opium poppy attend FCORD meetings for coordination on cultivation, measurement and test measurement of fields Counter Financing of Terrorism (CFT). and procurement of opium, the CBN also undertakes xiv. Since the advent of pandemic, the Plenary and preventive checks and exercises vigil to prevent diversion 155Annual Report 2022-2023 of opium into illicit channels as well as enforcement of Certificate' for import/export of precursor Narcotic Drugs & Psychotropic Substances Act, 1985. chemicals under the 1961, 1971 and 1988 UN Conventions dealing with narcotic drugs, 4.6.1.2 Responsibilities and Duties psychotropic substances and chemicals/ The broad outline of the functions and substances used for manufacture of these drugs. responsibilities of CBN are as under: vi. 1988 Convention requires CNA of the countries i. Performing the function of the National Opium to take all possible measures to prevent diversion Agency for India under Single Convention on from international trade of precursor chemicals Narcotic Drugs 1961 to exercise supervision over used in illicit manufacture of narcotic drugs and licit cultivation of opium poppy in the country in psychotropic substances in close cooperation terms of Section 5(2) of the NDPS Act,1985. with INCB and competent authorities of concerned countries. ii. Survey, detection and eradication of illicit cultivation of opium poppy throughout the country. vii. Liaison with the International Narcotics Control Board, United Nations Drug Control Programme iii. Enforcement of provisions of the NDPS Act 1985 as well as with the Competent National to suppress illicit traffic in Narcotic Drugs, Authorities of other foreign countries on issues Psychotropic Substances and controlled related to international trade in narcotic drugs, substances including search, seizure, arrest, psychotropic substances and precursor investigation and prosecution of drug offenders chemicals. tracing and freezing of illegally acquired properties of drug traffickers derived from illicit viii. Co-ordination with other Drug Law Enforcement drug trafficking for forfeiture and confiscation. Agencies such as Directorate of Revenue Intelligence, Narcotics Control Bureau, State iv. Issuance of licenses domestic manufactures for Police, State Excise and various other drug law manufacture of synthetic Narcotic Drugs notified enforcement agencies. under the NDPS Act 1985. 4.6.1.3 Performance and Achievements: - v. Performing the functions of Competent National Authority (CNA) for issuance of Export The performance/achievement with respect to issuance Authorizations and Import Certificate for Export/ of NOCs issued by Central Bureau of Narcotics during Import of Narcotic Drugs & Psychotropic the year 2022 for the export/import of Precursor Substances and issuance of 'No Objection Chemicals is as under: Number of NOC issued From From 01.12.2022 Total 01.04.2022 to to 31.03.2023 30.11.2022 (Projected) For export of Controlled Substance 1163 500 1663 For import of Controlled Substance 776 388 1164 No. of Pre-export Notifications (PEN) 980 320 1300 issued No. of Pre-export Notification (PEN) 529 - 529 received Number of Stop Shipments/ 25 NA NA suspended (Import) Number of Stop Shipments/ 8 NA NA suspended (Export) International Narcotics Control Board (INCB) has verifying the legitimacy of the transactions. On the developed online Pre-export Notification (PEN) system initiative, taken by the Central Bureau of Narcotics (CBN), to make exchange of information between the Competent through online PEN system, CBN has identified and National Authorities. CBN had issued 980 PENs (during stopped suspicious transactions of Precursors Chemicals the period from 01.04.2022 to 30.11.2022 to the suspected to be diverted from the licit channels during competent authority of various importing countries, for the year under report. 156Department of Revenue III The performance/achievement with respect to issuance year from for the export/import of narcotic drugs/ of Export authorization and Import Certificate issued by psychotropic substances is as under – Central Bureau of Narcotics during the current financial Particular Psychotropic Substances Narcotic Drugs From 01.04.2022 From From 01.04.2022 From 01.12.2022 to to 30.11.2022 01.12.2022 to to 30.11.2022 31.03.2023 31.03.2023 (Projected) (Projected) No. of Export 3880 2100 241 85 Authorization Issued No. of Import 516 225 168 30 Certificate issued 4.6.1.4 Enforcement of NDPS Act, 1985- traffickers, derived from illicit drug trafficking, for forfeiture and confiscation. The Central Bureau of Narcotics undertakes action to prevent the illicit trafficking of Narcotic Drugs Number of persons convicted/ acquitted in CBN and Psychotropic Substances. It also undertakes cases, decided by various Courts, upto October, 2022 investigations and prosecution of drug related offences, are as under- tracing and freezing of illegally acquired property of drug Year Total no. of Total no. of Total no. Total no. Total no. of Convict persons who persons against of of person facing ion rate were facing whom persons persons prosecution at (%) prosecution at prosecution was convicted acquitted the end of the beginning of launched during year the year the year 2021 540 46 4 4 578 50% 2022 578 69 0 1 646 0% (Upto 31st Oct.2022) Number of cases, decided by various Courts, during the year 2022 are as under (upto October, 2022):- Year Total no. of Total no. of Total no. Total no. of Total no. of Convict persons who persons of persons persons person ion rate were facing against whom convicted acquitted facing (%) prosecution at prosecution prosecution the beginning was launched at the end of the year during the year of year 2021 678+2* 87 5 5 755+2* 50% 2022 755+2* 80 0 1 834+2* 0% (Upto 31st Oct.2022) 157Annual Report 2022-2023 Details of Destruction of Illicit Opium Poppy Cultivation and Cannabis in 2021-2022 are as under (upto 31st October, 2022): - Year State Area Destroyed (In Total Area Destroyed Hectare) (In Hectare) 2021 Opium Poppy 0 Cannabis(Ganja) 0 2022(Upto Arunachal Pradesh Opium Poppy 3615 hectares 31.10.22) Himachal Pradesh Cannabis(Ganja) 1032 hectares Disposal of seized drug by CBN during the year 2022 (upto 31st October, 2022):- Sl. Narcotics Drugs/ Psychotropic No. of Cases Quantity No. Substances/ Precursor 1. Opium 26 62.550KG 2. Heroin 7 1.750 KG 3. Poppy Straw 15 7104.830KG 4. Codeine Phosphate 3 15600 bottles 5. Alprazolam 9 2901840 tablets 6. Tramadol Tablets 6 1763093 tablets 7. Tramadol Injections 5 50 injection Total 46 Seizures effected by CBN during the year 2021 to 2022 (Upto 31st October, 2022) is as follows: Name of Drug/substance 2021 2022 (Upto 21st October 2022) Opium Quantity (in kgs) 62.655 155.92 No. of cases 13 26 Poppy Straw Quantity (in kgs) 17314.73 22139.66 No. of cases 15 16 Poppy straw along with Quantity (in kgs) 175.59 0 black poppy seeds No. of cases 1 0 Black Poppy seeds Quantity (in kgs) 0 11271.5 No. of cases 0 2 Ganja/Ganja Plant Quantity (in kgs) 710.916 kg + 750 636.6 plants No. of cases 6 3 Illicit ganja (Cannabis) Quantity (in kgs) 0.0200 sq. Hectare 0 cultivation No. of cases 1 0 158Department of Revenue III Charas Quantity (in kgs) 0 0.06 No. of cases 0 1 Acetic Anhydride Quantity (in kgs) 24050 0 No. of cases 1 0 Alprazolam tablets Quantity (in kgs) 215046 85810 No. of cases 3 6 Buprenorphine injection Quantity (in kgs) 0 1350 No. of cases 0 1 Alprazolam Quantity (in kgs) 44.895 9.192 No. of cases 1 3 Clonazepam tablets Quantity (in kgs) 3690 800 No. of cases Codeine Phosphate Quantity (in kgs) 4544 268 syrup No. of cases 2 1 Diazepam Quantity (in kgs) 175 0 No. of cases 0 Dephenoxylate mixed Quantity (in kgs) 0 53.095 powder No. of cases 0 1 Etizolam tablets Quantity (in kgs) 3000 0 No. of cases 0 Ayurvedic medicines Quantity (in kgs) 18272 bottles + 180 0 having opium content gram No. of cases 1 0 Heroin Quantity (in kgs) 0.83 2.775 No. of cases 2 6 Illicit opium cultivation Quantity (in kgs) 3.7800 Hectares 1.034 No. of cases 6 7 159Annual Report 2022-2023 Charas Quantity (in kgs) 0 0.06 No. of cases 0 1 Acetic Anhydride Quantity (in kgs) 24050 0 No. of cases 1 0 Alprazolam tablets Quantity (in kgs) 215046 85810 No. of cases 3 6 Buprenorphine injection Quantity (in kgs) 0 1350 No. of cases 0 1 Alprazolam Quantity (in kgs) 44.895 9.192 No. of cases 1 3 Clonazepam tablets Quantity (in kgs) 3690 800 No. of cases Codeine Phosphate Quantity (in kgs) 4544 268 syrup No. of cases 2 1 Diazepam Quantity (in kgs) 175 0 No. of cases 0 Dephenoxylate mixed Quantity (in kgs) 0 53.095 powder No. of cases 0 1 Etizolam tablets Quantity (in kgs) 3000 0 No. of cases 0 Ayurvedic medicines Quantity (in kgs) 18272 bottles + 180 0 having opium content gram No. of cases 1 0 Heroin Quantity (in kgs) 0.83 2.775 No. of cases 2 6 Illicit opium cultivation Quantity (in kgs) 3.7800 Hectares 1.034 No. of cases 6 7 Lanced green poppy Quantity (in kgs) 205 0 capsules No. of cases 0 Larozepam tablets Quantity (in kgs) 720 0 No. of cases 0 160Department of Revenue III Midazolam (inj + nasal Quantity (in kgs) 280 Inj. + 6 spray 0 spray) No. of cases 0 Mephentermine inj Quantity (in kgs) 727 0 No. of cases 2 0 Morphine Quantity (in kgs) 9 0.78 No. of cases 1 2 Pentazocine Inj. Quantity (in kgs) 8840 0 No. of cases 2 0 Phenobarbitone Inj. Quantity (in kgs) 110 0 No. of cases 1 0 Tramadol tablets & Quantity (in kgs) 60256 tablets + 506704 tablets + capsules 28800 capsules 16360 capsule No. of cases 4 7 Tramadol Inj. Quantity (in kgs) 6418 Inj. 980 No. of cases 2 Tramadol Quantity (in kgs) 0 53.028 No. of cases 0 2 Nitrazepam tablets Quantity (in kgs) 0 349 No. of cases 0 2 4.6.1.5 Allotment of General Pool office yield per (kg/hectare) at 70 consistences on the basis of Accommodation (GPO) & general Pool Residential results received from Madhya Pradesh, Rajasthan and Accommodation (GPRA): Ministry of Urban Uttar Pradesh units for the crop 2020-21 was 63.362 kg/ Development, Directorate of Estates, New Delhi was hectare (all India). The All India average yield during the requested for General Pool Office Accommodation and crop year 2021-22 was 65.107 kg/hectare (provisional). General Pool Residential Accommodation. Thus the These figures are for crop year 2021-22 as the crop cycle officers and staff of CBN posted in the cells have become for the cultivation of opium is 1" October, to 30 September eligible for allotment of General Pool Residential of next year. Accommodation. 4.6.1.8 Payment to cultivators through e-Payment: 4.6.1.6 Gender Issues/ Empowerment of Women: Since crop year 2012-13, a new procedure for payment Complaint Committee regarding "Sexual Harassment" of has been adopted. There was high risk in drawing big women at Work place created and working at Hqrs amount from Banks carrying it to weighment centers, Gwalior and unit offices and submission of quarterly report disbursing it to concerned cultivators/Lambardars and to DGHRD on action taken on complaints under the carrying it to villages by cultivators from weighment enters Sexual Harassment of Women at work place (Preventive, in late evening. Banking infrastructure has been improved Prohibition and Redressal Act, 2013). Side by side seven in opium growing areas and it is developing day by day. Considering all these factors, cost of opium/commission newly direct recruited women candidates joined CBN is being paid through e-payment directly in Bank Accounts between 01.04.2022 and till date on various posts. of cultivators during weighment operation. After receipt 4.6.1.7 During the crop year 2021-22, a quantity of 349 of computed challans from Govt. Opium Factories, final Metric Tons of opium at 70°consistence (Provisional payment to cultivators is being done without waiting for figure) was procured from opium cultivators. The average Settlement Operation. 161Annual Report 2022-2023 4.6.1.9 Other highlights of performance and The office of the Chief Controller of Factories is located achievements during the year 2022-23. at New Delhi. Each of the factories at Ghazipur and Neemuch comprises two units - the Opium Factory and (i) GEM Purchase Alkaloid Works. The Opium Factories undertake the work Purchase of items for the official purpose is made of receipt of opium from the fields, their storage and through GEM portal. The dead stock items, perishable processing for exports and domestic consumption. The items are purchased through GEM portal. The upcoming Alkaloid Works are engaged in processing raw opium purchase/ services of the articles will also be made into alkaloids of pharmacopeial grades to meet the through the GEM portal mostly. domestic demand of the pharmaceutical industry. The (ii) World Drug Day,26th June, 2022 by Central GOAWs have employed a total work force of about 467 Bureau of Narcotics: - people at the two opium and alkaloid plants. The work force comprises of officials and staff drawn from the Every year, 26th June is observed as Central Board of Indirect Taxes and Customs, Central "International day against drug abuse and trafficking", in Bureau of Narcotics, Central Revenues Control order to raise awareness for the drug menace in the Laboratory, apart from personnel selected by the Union society and seeking people's participation to deal with Public Services Commission directly. The security this problem. Central Bureau of Narcotics organised aspects of these factories are looked after by the Central several activities like placing Banners on prominent public Industrial Security Force (CISF), a paramilitary force places, bike rally for awareness, use of electronic media under the Ministry of Home Affairs. such as awareness camping through FM Radio, easy and slogan writing and Tree plantation in the official Further, for the first time in India the process of campus implementation of Concentrated Poppy Straw Technology has been commenced. In the Opium Policy 2021-22 of 4.6.2 FUNCTIONS/ WORKING OF GOVERNMENT the Govt. of India licenses have been issued for cultivation OPIUM AND ALKAOLIDS WORKS (GOAW) of unlanced Opium Poppy and tendering of unlanced Poppy Straw to the Government of India. Concentrated 4.6.2.1 The Government Opium & Alkaloid Works Poppy Straw (CPS) is a technology for production of (GOAW) is engaged in the processing of raw opium for alkaloid from unlanced Poppy Straw. The office of Chief export and manufacturing of opiate alkaloids through its Controller of Factories has recently signed two contracts two Factories viz Govt. Opium & Alkaloid Works (GOAW) with private entity, M/s Bajaj Healthcare Ltd. (i) to process at Ghazipur (U.P.) and Neemuch (M.P.). The Products 500 MT of unlanced poppy straw to manufacture CPS manufactured at GOAWs are mainly used by and extract alkaloids/active pharmaceutical ingredients pharmaceutical industry of India for Preparation of cough (APIs), (ii) to process 100 MT of Opium gum to extract syrup, pain relievers, de-addiction drugs and tablets for alkaloids/active pharmaceutical ingredients (APIs). M/s terminally ill cancer and HIV patients. The GOAW are Bajaj Healthcare Ltd. has started Alkaloid extraction from administered by a High-Powered Body called the opium gum w.e.f. 09.12.2022. "Committee of Management" constituted and notified by the Government of India in 1970. The Additional 4.6.2.2 The overall performance / achievements of Secretary (Revenue), Department of Revenue, Ministry Government Opium and Alkaloid Factories (GOAF) for of Finance is the Chairman of the Committee of the Financial Year 2022-23 are as follows: Management. An officer of the rank of Commissioner/ (I) PERFORMANCE OF GOAF FOR THE Joint Secretary is the Chief Controller of Factories who FINANCIAL YEAR 2022-2023 heads the Organization and each of the two factories at Neemuch and Ghazipur are managed by a General A. PRODUCTION Manager of the rank of Additional Commissioner/Director. (Provisional) Sl. Particulars Unit Actual Production Estimated Production from No. April to November 2022 December,202 to March,2023 1 Drying of opium for KG. -- -- Export at 90°C 2 a) Morphine Sulphate KG. 297.200 547.800 b) Codeine Phosphate (C.P.) KG. 24245.900 608.100 c) Pure Thebaine KG. 756.800 783.200 d) Noscapine BP KG. 0.000 7251.000 162Department of Revenue III e) Papavarine S.R. KG. 2290.640 268.360 f) IMO Powder KG. 7000.000 5000.000 g) IMO Cake KG. 0.000 5000.000 Total (2) (a to g) KG. 34590.540 19458.460 3. Codeine Phosphate KG. 26500.000 0.000 Imported for Domestic Market A. SALES (Provisional) Sl. Particulars Actual Sales Estimated Sales from No. April to November, 2022 December,2022 to March,2023 Quantity Amount Quantity Amount ( in Kg.) (Rs. in Crore) ( in Kg.) (Rs. in Crore) 1 Export of opium for at 1380 0.704 100 0.11 90°C a) Morphine Sulphate 333.100 1.38 166.550 0.69 b) Codeine Phosphate 30793.010 140.72 8000.00 36.55 (Indigenous Production & Imported) c) Dionine I.P. 8.000 0.09 4.000 0.045 d) Pure Thebaine 1115.000 5.06 557.500 2.53 e) Noscapine BP 667.000 2.38 333.500 1.19 f) Pholcodine 3.000 0.02 1.500 0.01 g) Papavarine S.R. 1455.000 0.46 727.500 0.23 h) IMO Powder (Dom. 6296.500 6.67 3148.250 3.33 Sales+Export) i) IMO Cake (Domestic 1197.602 1.22 598.801 0.61 Sales+Export) Total 2 (a to i) 41868.21 158 20934.11 78.995 Grand Total (1+2) 43248.21 158.704 21034.11 79.105 B. EXPORT OF OPIUM AT 90°C (excluding domestic sales of IMO Powder & Cake) (a) UPTO NOVEMBER 2022. (Quantity in Kgs) Unit USA France Switzerland Sri Lanka Germany Total 1 Ghazipur 4000 -- -- -- 80 -- 2 Neemuch 1080 -- 300 -- -- 1380 Total 5080 -- 300 -- 80 5460 163Annual Report 2022-2023 (b) FROM DECEMBER 2022 TO MARCH 2023) (Quantity in Kgs) Unit USA France Switzerland Sri Lanka Total 1 Ghazipur -- 4000 -- -- 4000 2 Neemuch -- 100 -- -- 100 Total -- 4100 -- -- 4100 A. REVENUE RECEIPTS (ON REALISATION BASIS) FOR THE FINANCIAL YEAR 2022-23 (a) UPTO NOVEMBER 2022 (Rs. In crore) Opium Factory Alkaloid Works Total 1 Ghazipur 0.12 20.12 20.24 2 Neemuch 0.14 151.21 151.35 Total 0.26 171.33 171.59 (b) FROM DECEMBER, 2022 TO MARCH, 2023 (Rs. In crore) Opium Factory Alkaloid Works Total 1 Ghazipur 0.02 41.50 41.52 2 Neemuch 0.14 60.00 60.14 Total 0.16 101.5 101.66 (I) Achievement of CCF organisation up to the month of November 2022 with comparative data of previous year i.e. 2021 for the similar period A. PRODUCTION (Provisional) Sl. Actual Production % age increase over No. previous year Particulars Unit April to November 2021-22 2022-23 (1) (2) (3) (4) (5) (6) 1 Drying of opium for KG. -- -- -- Export at 90°C 2 Manufacture of Drugs: a) Morphine Sulphate KG. 206.300 297.200 44.06205 b) Codeine Phosphate KG. 12706.000 24245.900 90.82245 c) Pure Thebaine KG. 654.475 756.800 15.63467 d) Noscapine BP KG. 158.000 0.000 -100 f) Papavarine S.R. KG. 1885.100 2290.640 21.51292 g) IMO Powder KG. 1000.000 7000.000 600 164Department of Revenue III h) IMO Cake KG. 3046.000 0.000 -100 Total (2) KG. 19655.875 34590.540 75.98067 3. Import of Codeine Phosphate i) For Domestic Market KG. 11000.000 26500.000 140.9091 A. SALES Provisional Sl. 2021-22 2022-23 No. Particulars April to November April to November Quantity Amount Quantity Amount (Rs. in (Kgs) (Rs. in (Kgs) Crore) Crore) (1) (2) (4) (5) (6) (7) 1 Export of opium on actual basis 137 0.08 1380 0.704 2 Domestic Sale of Drugs: (on actual basis) a) Morphine Sulphate 326.075 1.35 333.100 1.38 b) Codeine Phosphate 22879.48 104.56 30793.010 140.72 (Indigenous & Imported) c) Dionine I.P. 0.000 0.00 8.000 0.09 d) Pure Thebaine 2142.500 9.72 1115.000 5.06 e) Noscapine BP 559.000 1.997 667.000 2.38 f) Papavarine S.R. 1463.000 0.41 1455.000 0.46 g) Pholcodine 220.917 0.08 3.000 0.02 h) IMO Powder (Domestic sale + 9040.000 7.85 6296.500 6.67 Export) i) IMO Cake (Domestic sale + Export) 2110.000 2.15 1197.602 1.22 Total (2) (a+i) 38740.972 128.117 41868.21 158 Grand Total (1+2) 38877.97 128.197 43248.21 158.704 A. Export of Opium at 90°C (up to November of each Financial year). (Qty. in Kgs at 90°C) Unit USA FRANCE SWITZERLAND JAPAN SRI LANKA Germany TOTAL 2021-22 Ghazipur -- -- -- -- -- -- -- Neemuch 137 -- -- -- -- -- 137 Total 137 -- -- -- -- -- 137 2022-23 Ghazipur 4000 -- -- -- -- 80 4080 Neemuch 1080 -- 300 -- -- -- 1380 Total 5080 -- 300 -- -- 80 5460 165Annual Report 2022-2023 A. Revenue Receipts on Realization basis (up to November of each Financial year). (Rs. in Cores) (Provisional) Unit Opium Alkaloid Total Factories Works 2021-22 Ghazipur 0.08 25.64 25.72 Neemuch 0.12 109.94 110.06 Total 0.20 135.58 135.78 2022-23 Ghazipur 0.12 20.12 20.24 Neemuch 0.14 151.21 151.35 Total 0.26 171.33 171.59 4.6.2.3 Development of North Eastern Region: The 1985 for coordinating and strengthening the economic CCF organization including GOAWs are located in Uttar intelligence and enforcement activities under the Ministry Pradesh, Madhya Pradesh and Delhi only and therefore, of Finance. there is nothing to specify with regard to work done on 4.7.1.2 The Bureau is headed by a Director General who the development of North Eastern region and Sikkim is assisted by two Additional Directors General (JS Project Schemes. Equivalent), Joint Secretary (COFEPOSA), Additional/ 4.6.2.4 Grievances Redressal Machinery: Public Joint Directors (DS/Director equivalent), Under Grievances in the CCF's Organization are dealt with Secretaries, Deputy Directors (US equivalent) and other promptly. The grievances of workers are also dealt with staff. The Bureau has a sanctioned strength of 116 expeditiously and the relations between the Management Officers & Staff. & workers during this period was harmonious and cordial. 4.7.1.3 In terms of its existing charter, the CEIB functions 4.6.2.5 Gender Budgeting/Empowerment of Women: as: Equal opportunity / status is enjoyed by women in CCF a) The Secretariat for the Economic Intelligence organization. In case of gender bias / harassment Council (EIC) reported if any, it is ensured that appropriate action is taken against the erring official. Internal Complaint b) Coordination between various agencies for Committee has already been formed at CCF office, New coordinating action and repository of economic Delhi, at GOAW, Neemuch & Ghazipur for the purpose intelligence (ECOINT) and of dealing with the complaints received regarding sexual c) Administers the COFEPOSA Act, 1974 at Central harassment at workplace. Government Level. 4.6.2.6 Activities Undertaken for Disability Sector & SCs/STs & Other Weaker Sections of Society: The 4.7.1.4 As part of its earlier mandate, the CEIB: CCF organization is strictly adhering to the prescribed (a) Maintains databases on economic offenders and rules and regulations for the welfare and development of offences; disabled, SCs, STs and other weaker sections. With an objective to initiate prompt action on grievances of such (b) Studies and analyses macro level economic sections, a committee has been formed with members activities; drawn from such sections. Roster registers for this purpose are also being maintained. (c) Supervises and monitors the functioning of Regional Economic Intelligence Councils 4.7 Central Economic Intelligence Bureau (CEIB) (REICs), which are coordinating bodies at the field level and comprise representatives from 4.7.1 Organization and Functions various Central and State enforcement and 4.7.1.1 The Central Economic Intelligence Bureau is the investigative agencies dealing with economic nodal agency on economic intelligence. It was set up in offences; 166Department of Revenue III (d) Organizes training programmes in premier faced by them and in better monitoring of the offence training institutions for officers of the Department verticals by LEAs themselves. During F.Y 2022-23, GEI of Revenue/ Member agencies of REICs. meetings have been held on feedback on SFIO's Investigation report shared by CEIB and Online Gaming 4.7.1.5 In terms of its existing revised charter dated Industry. 12.12.2003 issued by Department of Revenue (HQ), the A Working Group of Head of Investigative CEIB carries out the following functions: Agencies (HoAs) of Department of Revenue viz. DRI, a) The Secretariat for the Economic Intelligence CBDT, DGGI, ED, CBIC along with associate members Council (EIC); i.e. MCA and RBI was constituted to discuss and review cases having multi agency implications on regular basis. b) Coordination between various agencies for coordinated action; A "Working Group to discuss and analyse issues related to suspicious foreign outward remittance" was c) Repository of economic intelligence (ECOINT); constituted to discuss and review cases of foreign outward remittance with members viz. CBDT, DRI, ED, CBIC d) Administers the COFEPOSA Act 1974 at Central (Customs) and RBI to review cases of multiagency Government Level; ramifications and study pattern of foreign outward remittances. e) Ensures prompt dissemination of intelligence having security implications among the NSCS, As a member of Joint Working Group (JWG) IB & R&AW; which will monitor the progress of India's Mutual Evaluation by Financial Action Task Force (FATF) and f) Coordinates the functioning of Regional improving effectiveness of India's AML/CFT regime, the Economic Intelligence Councils (REICs); inputs/submission pertaining to Technical Compliance (TC) Annexe of the 40 FATF recommendations/ g) Coordination with Multi Agency Centre (MAC); Standards, criteria wise was shared with Department of Revenue (DoR). Besides, CEIB will prepare a paper on h) Organizes meetings of Working Group under the India's technical and effective compliance to beneficial Chairmanship of Revenue Secretary at ownership of Legal persons, to prepare a note prescribed intervals and submits a report to the distinguishing the definitions and meeting of "nominee Chairman of the EIC after every meeting; director" in the FATF context and Indian laws' context and collect data & statistics to demonstrate effectiveness i) Acts as a 'think tank' for the Department of on Immediate Outcome. Revenue, Ministry of Finance on all issues relating to economic offences, and undertakes iii. Functioning of Regional Economic analysis of economic activities at the macro level. Intelligence Councils (REICs) This Bureau functions as the Secretariat to the 4.7.1.6 The details of the activities of CEIB during 2022- EIC (Economic Intelligence Council) and WGIA (Working 23 are as under: Group on Intelligence Apparatus). It supervises working i. Studies in the Bureau and Reports of Inter- of 30 REICs across the country and organises training Ministerial Groups: on various legal and enforcement aspects for REIC member LEAs. Apart from above, the division handles The Bureau conducts study on economic ISP with CBDT, DGCoA, SFIO, SEBI, CCI, IRDAI & Public offences which are of concern for Law Enforcement Sector Insurance Companies. agencies (LEAs). Study reports on Informal remittances using Hawala, Tax havens across the world & diversion The Bureau monitors the performance of all of income and corporate fraud have been finalized. REICs. It also convenes Zonal Conferences of the Further, study reports on Trade based money laundering Conveners of the REICs wherein the performance of the is being finalised and will be completed by December, REICs is reviewed. The Bureau circulates alerts/circulars/ 2022. guidelines regularly to the REICs to facilitate their effective functioning. ii. Group on Economic Intelligence (GEI) and other meetings: REICs were set up in March, 1996 for ensuring regional operational coordination amongst the different The Group on Economic Intelligence (GEI) enforcement and investigation agencies in the field of mechanism formed w.e.f. 01.12.2005 as per directions economic intelligence. It comprises of designated officers from Economic Intelligence Council (EIC) is focused on from CBDT, CBIC, DRI, DGGI, NCB, ED, CBI, IB, RBI, discussing matters critical to LEAs and suggesting a local heads of RoC, EOW of State Police and State Tax calibrated approach in devising solutions to problems 167Annual Report 2022-2023 Authorities etc. The Bureau convenes zonal Conferences all correspondences vide email with nodal officers of of the REIC Conveners to monitor and review the respective banks. This greatly reduces the transit time performance. for both the request for the CEIB report and the consequent reply on the entity in question, thus, facilitating During the current F.Y 2022-23, a Zonal the trade. Conference of REICs of North Zone was held at Chandigarh on 22.08.2022 to discuss and seek views / vi. Other Policy Suggestions by Bureau feedback of the Convenors on improving coordination The Bureau undertook the issue of risk posed amongst the LEAs, to discuss the measures through by the illegal activities of Commercial Chinese entities. A which REICs and CEIB can support each other to meeting was held with concerned LEAs where it was effectively combat economic crimes. suggested to have a common platform for sharing of The relevant statistics relating to REICs is as information amongst each other and the process followed under: by LEAs during their investigations. Also, case report will be prepared on the basis on interim report/inputs received FY No. of No. of Additional Additional Meetings cases Revenue Revenue from all the agencies regarding action taken pre and post held shared Detected Realized the information shared by CEIB involving Chinese entities. (In lakhs.) (In lakhs.) The Bureau has taken up the issue of money 2021-22 132 2127 32210 5565 laundering by digital lending loan apps and various 2022-23 (till meetings were conducted with LEAs. List of suggestions 30.11.2022) 52 684 39205 141 received from LEAs was shared with RBI for taking up with their Working Group constituted on digital lending iv. Information Sharing Protocol (ISP) app. Subsequently, a detailed guideline on digital lending On the basis of decision taken in WGIA (Working based on the recommendations of the working group was Group on Intelligence Apparatus), an Information Sharing issued by the RBI. Protocol (ISP) was finalized by CEIB in April 2018. As Various review meetings were convened on per the ISP, 15 agencies including DRI, DGGSTI, CBDT, Misuse of Liberalised Remittance scheme with concerned CBIC, SFIO, CBI, ED, NIA, NCB, EOW (State Police), LEAs. The Bureau proposed to RBI for examining the RBI, Banks, FIU, SEBI and DGFT have to appoint Nodal possibility of initiating a process of mobile OTP linked Officers responsible for ensuring that reporting is done authentication for purchase of foreign currency from regularly to CEIB and all cases involving detection of FFMCs in future. Also, it was suggested that AD banks contravention of any economic statute are to be shared exercise due diligence in processing heavy remittances within a specified time frame of such detection/ by the proprietary concerns with non-existence business. adjudication with CEIB. The CEIB will further disseminate The proposal is under consideration with RBI. the information and share it with other LEAs (Law Enforcement Agencies), as required. The ISP is being The issue of "Standardization of Bank Formats" amended as and when required, in consultation with was raised in the EIC/ WGIA meetings held in 2014 to LEAs, so as to optimize sharing of inputs. 2019. The Bureau convened regular meetings with concerned LEAs for discussing requirement of a Standard v. CEIB Report on Prospective Borrowers and Bank Format to be shared with RBI for exploring the NPAs to Banks feasibility of mandating such requirement to banks. The As per the DFS guidelines on detection, reporting, suggestions from LEAs were shared with RBI for their investigation, etc. relating to large-value bank frauds of considerations. RBI submitted a Standard Operating more than Rs.50 Crores, reports on prospective Procedure (SOP) with certain timelines for seeking borrowers/NPAs are being sought from CEIB by Public information from banks by LEAs and the approved SOP Sector Banks. Such reports are being furnished by CEIB along with list of compliance officers of banks was as and when such references are received from banks. circulated to all LEAs, REICs, the DGPs of State Police, all State Commissioner of SGST and Regional Directors During the FY 2022-23, 2908 requests amounting RBI. to Rs.17,88,647.51 crores (NPA - 72, amounting to Rs. 23,819.88 crores, Fresh Credit/ Renewal - 2836, The Bureau being a nodal agency tasked with amounting to Rs. 17,64,827.63 crores) were replied to providing feedback on credit/NPA request of the as of 30.11.2022. borrowers seeking sanction of loan or reporting NPA. Keeping in view of mutual interest of both CEIB and RBI, An enhanced SoP with respect to the processing it was proposed to have a memorandum of understanding of bank requests on prospective borrowers and NPAs (MoU) which will enhance the information sharing and has been formulated. Digitization of all correspondences enrich the Bureau's database. It is proposed to reach a with all PSBs in this matter has been initiated by making 168Department of Revenue III logical conclusion and finalization of MoU between RBI of NCB were directed to send details of all identified areas/ and CEIB. The Bureau also suggests that RBI shares all potential places of illicit cultivation in a prescribed format bank fraud cases till the time and MoU is finalized. During to CEIB. the last F.Y 2021-22, total of 872 cases were shared with vii. Development/ generation of sharable inputs various LEAs and CEIB has requested RBI to share all by CEIB bank frauds cases. The Bureau shared intelligence with DRI In line with the mandate of CEIB to carry out pertaining to evasion of customs duty by way analysis on emerging areas, a trend analysis report on undervaluation of LED products imported from China on 'Smuggling of Gold and Smuggling of Red Sanders has the basis of submission of fabricated BIS certificate and been completed. The report inter-alia, includes modus payments through hawala for necessary action in order operandi, smuggling routes, statistical analysis of cases to protect the interest of revenue. Further, intelligence reported in the Bureau. pertaining to evasion of customs duty by way In the current F.Y 2022-23, meetings were misdeclaration of certain imported products viz Neck conducted for action taken on cases shared with LEAs Massager Pillow, Massager belt, Footpad, Full Fit Screen involving Chinese entities, Regulatory measures over and Stretcher was shared with DRI and CBIC for 'Payment Gateways' and 'Payment Aggregators and risk necessary action in order to protect the interest of posed by them and effective sharing of Information under revenue. Information Sharing Protocol (ISP) with LEAs. viii. National Economic Intelligence Network Various review meetings were held with (NEIN) DATABASE. concerned Law Enforcement Agencies (LEAs) to discuss CEIB maintains NEIN database which consists the issue viz. online transmission of CDF data from CBIC of Dossiers and offence cases of economic offenders/ to FIU-IND, Information Sharing from DGCoA and suspected tax evaders, based on inputs received from quarterly review meeting on Trade Based Money the Law Enforcement Agencies across the country. CEIB Laundering. has more than 8680 dossiers and details of 202526 (as The Bureau issued Alert Circulars on various on 28.11.2022) offence cases, booked by various issues such as illegal export of diamonds, illegal trafficking agencies. During current FY 2022-23 (as on 28.11.2022), of Heroin in to India, misdeclaration and misclassification 49720 inputs were entered in the database and inputs of Light Diesel Oil (LDO) and illegal import of luxury cars were disseminated as against intelligence inputs received. by organizing imports in the names of diplomats in India ix. Secure Information Exchange Network to sensitize their field formations. (SIEN): The Bureau has been receiving the imagery As per the directions by the Government, the report of illicit Poppy/ Cannabis cultivation in a CD/DVD operation of SIEN was brought under the domain of Multi on suspected locations of various states generated by Agency Centre (MAC) of MHA on 27.07.2021. The Aviation Research Centre (ARC) and the same is being incremental data of National Economic Intelligence forwarded to Narcotics Control Bureau (NCB), Central Network (NEIN) database till 06.09.2021 was successfully Bureau of Narcotics (CBN), and Advanced Data updated in the Secured Information Exchange Network Processing and Research Institute (ADRIN) immediately (SIEN), (an application for secure exchange of through official mail id for necessary action at their end. information amongst user agencies/LEAs). Further, the In this calendar year, this Bureau has received 32 cases nodal officers of the designated user agencies were of suspected locations of Illicit Poppy Cultivation which briefed about the features, capability and utility of SIEN have been immediately forwarded to the official mails of application. NCB, CBN & ADRIN. Feedback from the agencies is x. National Economic Offence Records (NEOR): awaited. The CEIB envisages 'National Economic The annual meeting on the captioned subject was Offences Records' (NEOR) to be a secure web-based held on 14.10.2022 at NCB headquarters, New Delhi platform that will enable creation of rich data repository through Video Conferencing which was attended by of economic records of economic offenders and its officers from CEIB. CEIB has been asked to coordinate dissemination amongst the intelligence agencies and law in various matters such as Participate in the Training of enforcement agencies. It is envisaged to be an important State officials by NCB & ADRIN/ BISAG (N). (TOT), send tool at the disposal of both CEIB and LEAs in details received from states to ADRIN & BISAG (N) and understanding the micro trends pertaining to economic transmission of Satellite images to concerned states and offences and coping with rapidly changing modus CBIC through secured official email. operandi adopted to defraud the national economic Further, all state nodal officers/ Zonal Directors apparatus. 169Annual Report 2022-2023 The Bureau submitted a proposal to Department clearance to the GEP applicants. of Revenue (DoR) to develop a web-based application During the calendar year, the Bureau has software NEOR. through NICSI and the approval has received 5483 requests for GEP clearance, and 4473 been accorded for development and implementation of reports have been processed by the Bureau. the NEOR Subsequently, the Scope of Work (SoW) and Request for Proposal (RFP) was shared with NICSI/NIC xii. Trainings on Intelligence and other relevant for circulating among empanelled vendors of NICSI. Also, areas coordinated by Bureau a Technical Evaluation Committee comprising members The Bureau organizes training programmes in from CEIB, NIC and NICSI was constituted to evaluate premier training institutions for officers of the Department the technical proposals of empanelled vendors of NICSI of Revenue/ Member agencies of REICs. The Bureau in respect of NEOR Project. Efforts are being made to coordinates training programmes with various specialized meet the timelines decided and it is expected to go live/ agencies on different subjects for upgradation of the roll out by the end of May 2023. capacity and skills of the Officers. xi. Global Entry Program (GEP) It was through earnest efforts of CEIB that a new Global Entry Program (GEP) is a US Customs training on training on Department of Revenue and Border Protection (CBP) program that allows speedy Intelligence Course was conducted by Military Intelligence clearance for low-risk travelers upon their arrival in the Training School & Depot, Pune from 04th April 2022 to US. On landing at the selected airport in the United States, 16th April 2022. the approved applicants can make their way ahead The training calendar for the FY 2022-23 was through automatic kiosks instead of standing in the prepared and shared with all the concerned training immigration lines. The travellers are pre-approved for the institutes. In this year, details of the training programmes program after a serious background check. CEIB is the conducted by the Bureau so far are as under: Nodal Agency in the Ministry of Finance for giving S.No. Name of the Institute Conducted Date/Duration of No. of Course/Training Course/Training the Course/Training Participants Nominated for Training 1. Department of Military Intelligence 04th to 16th April 14 Revenue Intelligence Training School & 2022 Course Depot, Pune (MINTSD) 2. Legal Aspects and National Law 25th to 27th May 36 Legal Matters University, Dwarka, 2022 Delhi 3. Intelligence Gathering Cabinet Secretariat 06th to 10th June 25 Intelligence Tradecraft Training Academy 2022 Gurgaon. 4. Intelligence Gathering National Intelligence 13th to 17 June 2022 50 Intelligence Tradecraft Academy, Intelligence Bureau, Dwarka, New Delhi. 5. Trade Based Money State Bank Institute of 20th & 21st June 15 Laundering Consumer Banking, 2022 Hyderabad 6. Techniques of National Academy of 2nd to 4th August 155 Investigation using Direct Taxes, Nagpur 2022 Digital Forensic 7. Investigating National Institute of 06th to 09th 32 Economic Crime in Securities Markets, September, 2022 Securities Market Navi Mumbai 170Department of Revenue III xiii. Implementation of the conservation of foreign Goods and Services Tax Network (GSTN) incorporated exchange and prevention of smuggling activities for providing IT platform for the GST, Union Territories (COFEPOSA) Act, 1974. Goods and Services Tax (UTGST) Act, 2017 etc. Vide Finance Act, 2021, section 8G has been inserted in the Conservation of foreign exchange and prevention Indian Stamp Act, 1899 regarding strategic sale, of smuggling activities is of prime importance for the disinvestment etc. of immovable property by Government economic health and national security of a Nation. company not liable to stamp duty. Accordingly, the links which facilitate the violations of foreign exchange regulations and smuggling activities are GSTN provides IT backbone to the entire GST required to immobilize by detention of persons engaged system, which has been developed on open-source in these operations as smuggling, foreign exchange platform, using the latest and scalable architecture design. racketeering and related activities have a deleterious The Board of Directors of GSTN in their meeting held on effect on the national economy and thereby causes a 30th June, 2022 has approved and registered the transfer serious adverse effect on the security of the state. of shareholding in favour of Centre and States (including UTs) from Non-Government Institutions. Therefore, To deal with this menace, the Conservation of Centre holds 50% and States hold 50% of total Foreign Exchange and Prevention of Smuggling Activities shareholding in GSTN w.e.f. 30th June, 2022. Act, 1974 (COFEPOSA Act, 1974) has been enacted to provide for preventive detention law to detain smugglers Over a period of time, GSTN has taken various and foreign exchange manipulators from indulging in steps to improve the taxpayer experience in tax these prejudicial activities. compliances and has streamlined the operation of GST System. With these improvements, GST System in now The COFEPOSA Wing of Department of able to scale up and cater more than 3 lakhs taxpayers Revenue is entrusted with the task of effective at any point without any hassle. Further, GSTN has implementation of the COFEPOSA Act, 1974. This wing implemented several initiatives for simplifying GST is functioning under the administrative control of Central compliance with a view to facilitate ease of doing business Economic Intelligence Bureau (CEIB). and has provided e-Invoice facility, SMS based "Nil" return During the current F.Y 2022-23, preventive filing facility, Quarterly return filing and Invoice furnishing detention orders against 06 persons (from 01.04.2022 to facility for MSMEs; auto-drafting of return and tax 30.11.2022) were passed under the COFEPOSA Act, payment. End to end automation of refund and single 1974 whereas 06 detentions orders (including the orders authority disbursement, Invoice Registration Portal (IRP) issued and executed before 01.04.2022) were confirmed for generating Invoice Reference Number (IRN) of e- by the various Advisory Boards constituted under the said Invoice, 59 Minutes Loan Scheme for MSME, enhanced Act. Further, 08 persons (including the absconders in knowledge repository to help quicker resolution of respect of the detention orders issued in previous years) taxpayers' grievances; single window registration of were detained during the period from 01.04.2022 to companies through SPICe-AGILE-Pro system of MCA; 30.11.2022. Geo-coding to capture correct address of the taxpayers; 4.8 STATE TAXES Business Intelligence System for identifying non- complaints and assisting data driven governance; Risk There are two State Taxes Sections in the based identification of non-complaint trade; integration Department of Revenue: of FASTag (RFID) System of NHAI with e-Way Bill System a) State Taxes-I of GST for live tracking of the movement of vehicles etc. have been the spin off advantages of GST System. b) State Taxes-II As a part of revenue augmentation, several 4.8.1 State Taxes - I Section measures have been taken, which include inter-alia Nudging taxpayers through regular emails and SMS, the State Taxes -I Section of the Department of Red-flag reports, Comparison reports, return defaulters' Revenue deals with legislative work relating to Central notice, centralized suspension/ revocation, blocking/ Acts having significant interface with the States like the unblocking of e-Way Bills/ GSTR-1 on non-filing of two Indian Stamp Act, 1899 and the Constitution (One GSTR-3B returns etc. have been implemented. Hundred and First Amendment) Act, 2016 for implementation of Goods and Services Tax (GST) as well The details of GST collection during the last 5 as administrative and budgetary matters in respect to years are furnished as given below: 171Annual Report 2022-2023 (in Rs. Crore) Financial Year Head 2017-18 2022-23 2018-19 2019-20 2020-21 2021-22 (till November, (Annualised) 2022) CGST 1,78,314 2,02,444 2,27,442 2,09,916 2,69,137 2,10,954 SGST 2,57,705 2,78,817 3,09,231 2,72,828 3,44,216 2,67,818 IGST 5,81,034 5,98,739 5,86,699 5,65,719 7,62,270 6,27,816 Domestic 2,89,639 3,08,243 3,19,422 3,03,946 3,85,314 3,12,905 Imports 2,91,395 2,90,495 2,67,277 2,61,774 3,76,956 3,14,911 Compensation Cess 93,922 97,369 98,745 88,342 1,07,667 84,333 Domestic 84,479 87,290 88,303 79,152 98,878 76,838 Imports 9,443 10,080 10,442 9,190 8,789 7,496 GST Collection (Total) 11,10,975 11,77,368 12,22,116 11,36,805 14,83,291 11,90,920 Average Collection 92,581 98,114 1,01,843 94,734 1,23,608 1,48,865 YoY Growth (%) 6% 4% -7% 30% 27% 4.8.2 State Taxes -II Section GST compensation for FY 2017-18, 2018-19 and 2019- 20 has been released to States. Due to impact of Covid State Taxes-II Section of the Department of 19 on GST revenues the Compensation requirement for Revenue handles legislative work relating to Central Acts 2020-21 increased and at the same time the having significant interface with the States like the Central Compensation Cess collection fell down. This created a Sales Tax Act, 1956, the Goods and Services Tax gap in the resources available for payment of (Compensation to States) Act, 2017. Facilitation in respect Compensation to States. of State level Value Added Tax (VAT) in regulation and payment of GST compensation to States/ UTs on account The issue of shortfall of cess collection into of revenue loss due to implementation of GST w.e.f. Compensation Fund and GST compensation to States/ 01.07.2017 have been dealt by this division as per details UTs due to economic impact of the pandemic has been given below: deliberated in 41st, 42nd & 43rd GST council meetings. ` 1.1 lakh crore for FY 2020-21 & ` 1.59 lakh crore for GST Compensation to States/ UTs for revenue loss FY 2021-22 has been released to States/ UTs as back to due to implementation of GST back loan to meet the resource of the States/UTs due to shortfall in GST compensation. This arrangement has Section 18 of the Constitution 101st Amendment, been finalized after detailed deliberations with the States 2016 provides for payment for Compensation to Stats for and all States have opted for this arrangement. Revenue loss on account of implementation of GST for a period of Five years and accordingly, on As per provision of GST (Compensation to recommendation of GST Council GST (Compensation States) Act, 2017 and taking into account ` 1.10 lakh crore to States) Act, 2017 has been enacted by the Parliament. for FY 2020-21 and ` 1.59 lakh crore for FY 2021-22 For the purpose of payment of compensation to States, released to States/UTs as back to back loan in lieu of a GST Compensation Cess is levied on select items under GST compensation as per discussion in GST Council Section 8 of the GST (Compensation to States) Act, 2017. meetings, entire GST compensation dues of States/UTs This is transferred into a non-lapsable Fund known as has been cleared by Central Government for period up GST Compensation Fund which forms part of the Public to 31.05.2022. This decision was taken despite the fact Account of India as provided in Section 10(1) of the Act. that only about ` 25,000 crore was available in the GST The loss on account of introduction of GST is calculated Compensation Fund. The balance around `62,000 crore as per Section 7 of the Act and is fully paid out of the was released by the Centre from its own resources GST Compensation Fund as per section 10(2) of the Act. pending collection of Cess. 172Department of Revenue III On the same line, Centre has also released acquired property of the persons convicted under the Sea `17,000 crore to States on 24.11.2022 from Consolidated Customs Act, 1878, the Customs Act, 1962 and the Fund of India against the pending GST compensation Foreign Exchange Regulation Act, 1947 and Foreign for the period April-June'2022 despite the short Exchange Regulation Act, 1974 and the persons detained compensation cess collection into compensation Fund under the Conservation of Foreign Exchange and to assist the States in managing their resources. In Prevention of Smuggling Activities Act, 1974. The addition, final reconciliation is done for every year, as Narcotics Drugs and Psychotropic Substances Act, 1985 and when States submit CAG certified accounts of GST (NDPSA) provides for tracing, freezing, seizure and revenues of the State. Centre is committed to release forfeiture of illegally acquired property of the persons full GST Compensation to the States/UTs as per GST convicted under that Act or any corresponding law of any (Compensation to States) Act, 2017 as and when the foreign country, and those who are detained under the audited figures are available for a State. Prevention or Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988 and Jammu and 4.9 Competent Authority Kashmir Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988. 4.9.1 The Appellate Tribunal under SAFEMA 4.9.2.2 SAFEM(FOP) Act and NDPS Act provide for 4.9.1.1 The Appellate Tribunal has been constituted appointment of Competent Authorities for carrying out under the Smugglers and Foreign Exchange Manipulators forfeiture of illegally acquired properties. At present, the (Forfeiture of Property) Act, 1976 (SAFEMA). It started Offices of Competent Authorities are located at Kolkata, functioning w.e.f. 03.01.1977. It hears the appeals files Chennai, Delhi, Mumbai and one unit is at Ahmedabad. against the orders of Competent Authority under SAFEM/ SAFEM (FOP)A envisages establishment of an appellate NDPS Acts, Adjudicating Authority under PMLA, FEMA forum, namely the Appellate Tribunal to hear the appeals and Prohibition of Benami Property Transactions Act filed against the orders of Competent Authority under 1998. SAFEMA/NDPSA Act. 4.9.1.2 The Appellate Tribunal is located at New Delhi. 4.9.2.3 As per the latest amendments vide the Finance It consists of a Chairman (who is, or has been a Judge of Act 2021 to the Prohibition of Benami Property the Supreme Court or Chief Justice of a High Court) and Transaction Act, 1988, the Competent Authority appointed four Members. The four Members are appointed from under sub section (1) of section 5 of the Smuggling and among the officers of the Central Government who have Foreign Exchange Manipulators (Forfeiture of Property) held the post of Additional Secretary to the Government Act, 1976 is the Adjudicating Authority to exercise of India or any equivalent or higher post and have jurisdiction, powers and authority conferred by or under performed judicial, quasi-judicial or adjudicating function PBPT Act, 1988. PBPT Act was enacted to prohibit for three years. benami transactions where any person enters into a benami transaction in order to defeat the provisions of 4.9.1.3 During the period 01.12.2021 to 24.11.2022 in any law or to avoid payment of statutory dues or to avoid total 1709 Appeals (836 in PMLA, 108 in NDPSA, 04 in payment to creditors, the beneficial owners, benamidar SAFEMA, 106 in FEMA and 665 in PBPT) were received and any other person who abets or induces any person and in addition 2697 Miscellaneous petitions (1248 in to enter into such benami transaction, shall be punishable PMLA, 158 in NDPSA, 08 in SAFEMA, 161 in FEMA and under the said Act. 1122 in PBPT) were filed during the said period. Total 43 appeals (01 in PMLA and 01 in NDPSA, 01 in SAFEMA, 4.9.2.4 The details regarding the number of reports 01 in FEMA and 39 in PBPT) were disposed during the received by the Competent Authorities from enforcement said period. agencies, the number of show cause notices issued and the value of the property involved therein, the number of 4.9.2 Competent Authority under SAFEMA/ NDPSA orders of forfeiture passed and the value of the property involved therein, and the value of sale proceeds of the 4.9.2.1 The Smugglers and Foreign Exchange property disposed of, year-wise, from 2000-01 to 2022- Manipulators (Forfeiture of Property Act, 1976 2023 are given in Appendix 'A'. (SAFEM(FOP)A), provides for forfeiture of illegally 173Annual Report 2022-2023 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 Forfeiture Value of sale Year reports Forfeiture issued and Orders issued and proceeds of received from value of Property value of Property Property Enforcement involved. involved. disposed of (in Agencies 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 50 2 25.66 4 42.58 536.7 2022-23 (Jan 49 12 1265.96 7 201.05 551.706 2022 to Nov. 2022) 174Department of Revenue III 4.10.1.3 Each Bench of the Tribunal consists of a 4.10 Customs, Excise & Service Tax Appellate Judicial Member and a Technical Member. To expedite Tribunal (CESTAT) the disposal of small cases with financial stake up to Rs. 4.10.1 Functions/ Working of the Organization 50,00,000/- (Fifty Lakhs Rupees), wherein no question of rate of duty or valuation is involved, single member 4.10.1.1 The Customs, Excise and Service Tax bench is constituted. The Tribunal is also the final Appellate Tribunal formerly known as Customs Excise & appellate authority hearing appeals from the orders of Gold (Control) Appellate Tribunal was constituted in the the Commissioner (Appeals). Appeals from the orders year 1982 under the Customs Act, 1966. Appeals are passed by the Tribunal lies to the Supreme Court on filed before the Tribunal against the orders passed by Classification and Valuation issues as they have all India the Commissioners of Customs and Central Excise under ramifications. the Customs Act, 1962, Central Excise Act, 1944 and Finance Act, 1994. Appeals on Anti-Dumping duty are 4.10.1.4 The Tribunal is headed by the President who also filed before the Tribunal under the Customs Tariff is a retired Judge of a High Court. There are 16 posts of Act from the order passed by the Designated Authority in Members (Judicial) and 16 posts of Members (Technical). At present, 13 posts of Technical Members and 7 posts the Commerce Ministry and special bench headed by of Judicial Members are lying vacant. There is anticipated the President of the Tribunal hears such cases. Whenever vacancy of 2 Technical Members and 4 Judicial Members divergent decisions are passed by co-ordinate benches in the year 2023. of the Tribunal, the conflicting decisions are resolved by referring the issue to a Larger Bench constituted by the 4.10.2 Highlights of the performance and achievements President. Decisions rendered by the larger bench is during the year binding on all Division Benches and subordinate During the pandemic, the Tribunal resorted to virtual adjudicating authorities. Whenever difference of opinion hearing mode by engaging open-source platform Jitsi arises between the members in a Division Bench a Meet. This facility was implemented in all 9 benches and reference is made to the Third Member nominated by appeals have been disposed on regular basis. Time limit the President. within which appeals have to be disposed as per the 4.10.1.2 The Principal Bench of the Tribunal is direction of the higher courts have been compiled even situated at Delhi and the regional benches are situated during pandemic time. Appeals filed without pre deposit at Mumbai, Kolkata, Chennai, Bangalore and of mandatory duty/tax were identified and listed on priority Ahmadabad. For speedy disposal of appeals to the benefit basis directly before the Bench instead of taking longer of litigants, the Ministry of Finance, vide notification no. route of issuing defects memo with a view to curb undue 7/2013 has notified creation of three new benches of the financial advantage by the parties. Despite various constraints including several vacancies of Members and Tribunal at Chandigarh, Allahabad and Hyderabad and subordinate staff, the appeals were disposed with a three additional Benches one each at Delhi, Mumbai and consistent pace. A sample statement showing institution Chennai. The regional benches at Allahabad, Chandigarh and disposal of appeals of the current financial year is and Hyderabad started functioning w.e.f. 01.10.2015, given below: 01.12.2015 and 14.12.2015 respectively. With a view to rationalize disposal of appeals, additional benches have Total been shifted to Ahmedabad, Bangalore and Kolkata from Year Institutions Disposal Pendency the existing benches of Delhi and Mumbai. Now the bench position at each place is as follows: April 2022 7372 3390 78015 to S. No. Place No. of Benches November 1. New Delhi 2 2022 2. Mumbai 3 4.10.3 The process of online filing of appeals and 3. Kolkata 2 online payment of appeal fee is undertaken by NIC, which 4. Chennai 2 is nearing completion and expected to be implemented from next year 2023. All orders including daily orders of 5. Bangalore 2 the Tribunal are also uploaded besides real time display 6. Ahmedabad 2 of item number taken by the Bench which is available both on the website accessible to the litigants/advocates 7. Allahabad 1 from anywhere and on the display boards installed in the 8. Chandigarh 1 Tribunal premises. The Tribunal ensures transparency on the judicial side by proactive disclosure of information 9. Hyderabad 1 related to the cases. 175Annual Report 2022-2023 4.10.4 The whole of north eastern region is 4.11.1.1 Highlights of the Performance and conveniently placed under the jurisdiction of Kolkata achievements of the Commission during the Year is Bench as indirect tax litigation from N.E. region is relatively given below: low in number. No. of No. of Duty Settled 4.10.5 All facilities as required by the Government applications applications (Rs. in crores) received upto disposed upto in respect of weaker sections including differently abled November, upto November, and SC/ST are strictly followed and extended to the 2022 November, 2022 eligible candidates/Staff. 2021 4.10.6 All facilities as required under O.M. 118 15** 2.49* No.13018/4/2009-Estt.(L) dated 08/07/2009 are being * Includes Penalty and Interest Amount Settled extended to female employees of this Tribunal to redress ** Includes 12 cases in FY 2022-23 which got the grievances of women, a complaint committee under abated as order could not be passed within the chairperson Dr. Rachna Gupta, Member (Judicial), prescribed time for want of bench in the CESTAT, has been constituted. So far, no complaint has Commission. been received by the committee. 4.11.1.2 Function & Working of the Organization. 4.10.7 The dynamic website started in January 2017 The Central Government have constituted the though meets the requirements of the Tribunal, the basic Customs & Central Excise Settlement Commission under security features are not found in order. Hence data are section 32 of the Central Excise Act, 1944 vide Notification now migrated to the cloud from the local server and a No. 40/99-CX(NT) dated 09.06.1999 and 41/99-CX(NT). new cloud based website is on the anvil. This will be The Commission consists of the Principal Bench presided operational, within the financial year after necessary over by the Chairman at New Delhi and 3 Additional security audit clearance is done by the NIC. The Tribunal Benches at Chennai, Mumbai and Kolkata presided over is poised to start online filling of appeals after more by Vice Chairman with 2 Members in each Bench. The security features are added in the new programme. Commission functions under the Department of Revenue in the Ministry of Finance. 4.10.8 The Tribunal is trying to strictly adhere to the provisions of Fiscal Responsibility & Budget Management The Settlement Commission has been set up to (FRBM) Act. All expenditures are limited to the budget as expedite recovery of Customs, Central Excise & Service allocated for the Tribunal. The Members of the Tribunal Tax revenue locked up in adjudication proceedings. It are being sent on official tour to other benches where offers a one time opportunity to tax payers to make a vacancies are existing. The Members are requested to true and full disclosure of their liabilities. Settlement travel by economy class though the entitlement is Commission has also been empowered to grant immunities from penalty and from prosecution, thus business class. In spite of escalation in prices of various offering an opportunity to tax payers to settle the disputes items/ services, the expenditure is restricted to within the expeditiously. granted funds. Financial propriety and reasonableness are exercised while spending from all heads. At present, there are only 3 members (including Chairman) who are looking after the Settlement 4.11 Authority for Advance Ruling Division Proceedings of all the Benches. 4.11.1 Customs, Central Excise & Service Tax 4.11.1.3 Year-Wise Performance/achievements of the Settlement Commission Settlement Commission: Disposal Year No. of Applications Duty settled Received No. of Applications No. of Applications (Rs. in Rejected Settled Crores) 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 176Department of Revenue III 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 2021-22 194 16* 6 5.40* 2022-23 (upto 118 12** 3 2.49* Nov. 22) Total 20911 3206 17256 6433.94 * Includes Penalty and Interest Amount ** Includes 8 cases in FY 2021-22 and 12 cases in FY 2022-23 respectively which got abated as order could not be passed within prescribed time for want of bench in the Commission. 4.11.2 National Institute of Public Finance and Policy by the authorities below the rank of the Collectors (now (NIPFP) called Commissioners), were concerned, the same were to be filed before the appellate Collectors of Customs & 4.11.2.1The NIPFP is a premier research organization Central Excise. Erstwhile Section 131 of the Customs for conducting research, policy advocacy, and capacity Act, 1962 and Section 36 of the Central Excise & Salt building activities in the field of public finance and policy. Act, 1944, empowered the Central Government to revise Established in 1976 as an autonomous institution under the orders passed by the CBEC and appellate Collectors the Societies Registration Act, 1860, the Institute has in exercise of their appellate jurisdiction. At the made significant contributions to policy reforms at all Government level, while Secretary (Revenue) or Special levels of Government of India. The NIPFP provides Secretary disposed of the Revision Applications against research, engages in policy advocacy and capacity orders passed by the CBEC, and the Addl. Secretary or building on public finance and policy. Joint Secretary disposed of the applications against the 4.11.2.2 The Governing Body is chaired by an Economist orders passed by the appellate Collectors of Customs & of Eminence and at present Dr. Urjit Patel, former Central Excise and executive Collectors of Customs and Governor of RBI, is the Chairman of the Governing Body. Central Excise. The Finance (No. 2) Act, 1980 sought to Government is represented by the Secretary (Revenue), introduce a new system by establishing appellate Tribunal. Secretary (Economic Affairs) and Chief Economic Adviser The appellate jurisdiction of CBEC and Revisionary of the Ministry of Finance. There are three eminent jurisdiction of the Central Government were abolished Economists and representatives of FICCI and with effect from 11.10.1982, except a few residual ASSOCHAM on the Governing Body. There is an transitional provisions and the Customs, Excise and Gold Academic Committee advising the Director. Appellate Tribunal (now CESTAT) was set up with effect from 11.10.1982. The Finance Act, 1984, revived the 4.11.2.3 Initiatives relating to Gender Budgeting and Revisionary powers of the Central Government in Empowerment of Women: specified type of cases. On the Customs side, Section NIPFP has undertaken research in the topic and 129 DD read with proviso to Section 129(A) of the Act, conducted policy dialogue at national and international empowered Central Government to revise the appellate fora including UN organizations. orders passed by the Commissioner of Customs (Appeals). On Central Excise side, Section 35EE read 4.12 Revision Application Unit with first proviso to sub-section (ii) of Section 35B of the Central Excise Act, 1944 gave review and revisionary 4.12.1 Formation, function and working of the Revision Application Unit powers to Central Government to revise the orders passed by the Commissioner of Central Excise (Appeals). 4.12.1.1 The mandate of the Revision Application Unit is to dispense justice. Under the scheme operative till 4.12.1.2 On the Service Tax side the two provisos 10.10.1982, the appeal against the orders of the inserted in sub-section (1) of Section 86 of the Finance Commissioners (then called Collectors), of Customs & Act 1994 vide Section 117 of the Finance Act 2015 (with Central Excise lay with the Central Board of Excise & effect from 14.05.2015) stipulate that where an order, Customs. As far as the appeals against the orders passed relating to a service which is exported, has been passed 177Annual Report 2022-2023 under section 85 and the matter relating to grant of rebate (c) Goods exported outside India (except to Nepal of service tax as input service, or rebate of duty paid on or Bhutan) without payment of duty. inputs, used in providing such service, such order shall be dealt with in accordance with the provisions of section 4.12.2.3 Service Tax jurisdiction - The provisions 35EE of the Central Excise Act 1944. All appeals in such of Section 35EE of the Central Excise Act 1944, which matters pending before the Appellate Tribunal shall also dealt with revision by the Central Government, have been be transferred and dealt with in accordance with the made applicable to Chapter-V of the Finance Act, 1944 provisions of Section 35 EE of the Central Excise Act dealing with Service Tax. In the Finance Act 2015, the 1944. Section 86 has been amended to prescribe that the remedy against the order passed by Commissioner 4.12.1.3 The Revision Applications filed either by (Appeals) in a matter involving rebate of Service Tax, parties or department against the orders of Commissioner shall lie in terms of Section 35EE of the Central Excise (Appeals) are considered and decided by Additional Act 1944. In such cases against the order passed by the Secretary (RA). The Central Government is the highest Commissioner (Appeals), revision application is required authority in such revision and review matters and orders to be filed before AS (RA). thus passed by the Additional Secretary (RA) are final. Petitioners, aggrieved with the revision order passed by 4.12.3 Process Additional Secretary (RA) may take re-course to writ The Revision Application Unit receives the petitions under Article 226 of Constitution of India. revision application in prescribed form EA-8/CA-8 filed 4.12.1.4 The Revision Application Unit is directly by department as well as parties. The stipulated time for responsible to Secretary (Revenue). filing such applications is 90 days from the date of communication of order-in-appeal. Delay up to 90 days 4.12.2 Jurisdiction can be condoned by Central Government in deserving cases. The Revision Application Unit on receipt of revision 4.12.2.1 Customs jurisdiction - Section 129 DD read applications issues the acknowledgement to the applicant with proviso to Section 129 A (1) of Customs Act, 1962 along with deficiency memo if any deficiency is found. empowers the Central Government to revise or review Simultaneously, a check-list in prescribed format is also the appellate orders passed by Commissioner of Customs prepared. Notice is issued to respondent party for filing (Appeals) if such order related to:- counter reply. Thereafter, personal hearing is fixed / held (a) Any goods imported or exported as baggage; in cases, in the order of seniority. Out of turn hearings are allowed only in deserving cases involving substantial (b) Any goods loaded in a conveyance for revenue, recurring issues resulting into multiplicity of importation into India, but which are not unloaded cases, interest liability, the issue is no longer res integra, at their place of destination in India, or so much passenger is going abroad and in cases of financial of the quantity of such goods as has not been hardship. After completion of hearing, final revision order unloaded at any such destination if goods is issued by Additional Secretary (RA). unloaded at such destination are short of the 4.12.4 Latest Developments quantity required to be unloaded at the destination; The Revision Application unit was earlier headed by a Commissioner and ex-officio Joint Secretary. The (c) Payment of drawback as provided in Chapter X working of this set-up was stayed by an order of Punjab and the rules made there under. & Haryana High Court, upheld by the Apex Court also, whereby it was directed that an officer of a higher rank 4.12.2.2 Central Excise jurisdiction - Section 35 EE than the Joint Secretary be posted as the orders of read with proviso to Section 35 B (1) of Central Excise Commissioner (Appeals) are being revised and an officer Act, 1944 empowered the Central Government to revise of the same rank cannot revise these orders. or review the appellate orders passed by Commissioner Subsequently, an officer of the rank of Principal of Central Excise (Appeals) if such order related to: Commissioner and ex-officio Additional Secretary was (a) A case of loss of goods, where the loss occurs posted in Aug, 2017 and an additional office of Additional in transit from a factory to a warehouse or to Secretary (R.A.) was created at Mumbai to reduce the another factory, or from one warehouse to pending cases which got piled up during the period of another or during the course of processing of the stay. The office at Delhi caters to Northern, Southern and goods in a warehouse or in storage, whether in Eastern regions while the Mumbai Unit takes up the cases a factory or in a warehouse; pertaining to Western regions. 4.12.5 Performance (b) A rebate of duty of excise on goods exported to any country or territory outside India or on Since the joining of Additional Secretary in November, excisable materials used in the manufacture of 2020 the work in the unit has picked up very fast, from goods which are exported to any country or November, 2020 to November, 2022, 1170 Revision territory outside India; Applications have been disposed of by Delhi unit alone. 178Department of Revenue III 5. Integrated Financial Unit (IFU) (b) Procurement of goods and services including procurement of anti-smuggling Integrated Finance Division of the Department equipment i.e. scanners and marine vessels. of Revenue is under the direct supervision of Additional Secretary & Financial Advisor (Finance). There are three (c) Proposals for deputation abroad of officers units dealing with budget, finance and expenditure of the Department, CBDT, CBIC and their management in respect of the grants pertaining to field offices. Department of Revenue, Direct Taxes and Indirect (d) Restructuring proposals, redeployment of Taxes. Director (Finance), D/o Revenue/GST & Customs personnel in field formations and constituent and Director (Finance), Direct Taxes/ Expenditure assist units. the Additional Secretary & Financial Advisor (Finance). (e) Comprehensive Computerization of 5.1 Activities undertaken by the Integrated Department of Revenue, its field formation Finance Unit: including Customs and GST formations and All offices under the Department of Revenue, Income Tax field formations. which inter-alia include Revenue headquarters, Central (f) Proposals from Committee of Management Board of Direct Taxes (CBDT), Central Board of Indirect (COM), D/o Revenue which oversees the Taxes & Customs (CBIC), Narcotics Control Division, functioning of Government Opium & Alkaloid Central Bureau of Narcotics, Chief Controller of Factories, Works (GOAWs). Central Economic Intelligence Bureau, Financial Intelligence Unit (FIU-IND), Goods & Service Tax Council (g) Grants-in-aid to National Institute of Public Secretariat, Enforcement Directorate, Customs, Excise Finance & Policy and Central Revenue & Service Tax Appellate Tribunal (CESTAT), Settlement Sports & Cultural Board. Commission (IT/WT), Authority for Advance Rulings, (h) Proposals for Delegated Investment Board Appellate Tribunal for Forfeited Property, Adjudicating (DIB), Public Investment Board and Cabinet Authority under PMLA, Income Tax Ombudsman, Committee on Economic Affairs (CCEA) National Committee for Promotion of Social & Economic relating to comprehensive computerization Welfare, all field offices of Income Tax Department which plan of CBDT/CBIC, capital expenditure include Directorate General of Income Tax (Systems), involving construction of office/residential Directorate General of Income Tax (Legal & Research), complexes and readymade office/residential Directorate of Income Tax (O&M Services), Directorate buildings of all the three Departments. of Income Tax (Infrastructure), National Academy of Direct Taxes and other field offices under the Central Board of (i) Proposals received for sanction of financial Direct Taxes all field offices under Central Board of assistance from the Customs & Central Indirect Taxes & Customs which include Directorate Excise Welfare Fund and Special General of Systems & Data Management, Directorate Equipment Fund. Revision of norms were General of Human Resource Development, Directorate finalized in respect of setting up of/ of Revenue Intelligence, Directorate General of Goods refurbishing of recreation/sports clubs, and Service Tax Intelligence, Directorate General of gymnasiums, Departmental Canteens, Goods and Service Tax, National Academy of Customs, crèches for children of Departmental Indirect Taxes & Narcotics, etc., are serviced by the three officials, guest houses and cash award units of Integrated Finance Division in terms of Budget scheme for meritorious children with formulation, fund allocation, expenditure monitoring & special emphasis on girl children and control, enforcing economy, scrutiny and sanction of children of group ‘D’ staff. expenditure proposals beyond the delegated powers of (j) Schemes proposed by CBDT/CBIC for field offices. utilizing the budget provision under 1% 5.2 Details of expenditure and financial proposals Incremental Revenue Incentive Scheme for scrutinized and approved: obtaining approvals of the competent authority. (a) Creation and continuation of posts, construction/purchase/hiring of offices, as (k) Proposals involving relaxation/interpretation well as residential accommodation for the of financial rules and all proposals requiring field formations of Central Board of Indirect reference to the Department of Expenditure. Taxes & Customs and Central Board of 5.3 The expenditure budget/non-tax revenue receipts Direct Taxes, Department of Revenue and of Department of Revenue, Direct Taxes and Indirect its attached offices. 179Annual Report 2022-2023 Taxes for BE 2022-23 was prepared. RE 2022-23 and 5.6 The Integrated Finance Division has also been BE 2023-24 ceiling has been finalized and communicated entrusted with the formulation of schemes of important by the Budget Division, Department of Economic Affairs. expenditure proposals from their initial stage. It also The Details of RE 2022-23 and BE 2023-24 in respect of follows up with the Department/Boards for the settlement all the three grants are as below: of audit objections, inspection reports, draft audit paras and reports of PAC/Standing Committee. (` in crore) Grant 6. Implementation of Official Language Policy Grant 2022-23 2023-24 No. BE RE BE 6.1 The Department of Revenue has a full-fledged Official Language Division which is entrusted with the task D/o Revenue 35 227552.52 247295.02 189827.37 Direct Taxes 36 9308.80 9431.15 9892.87 of implementing the Official Language Policy of the Indirect Taxes 37 41139.17 36687.94 38510.58 Government of India. This Division consists of one post of Director (OL) and operates through four Official Language Sections; each headed by an Assistant Director 5.4 Integrated Finance Division has taken the following (OL) and there are two posts of Deputy Director (OL) for steps/initiatives in 2022-23: their supervision. Presently one post of Deputy Director (OL); two posts of Assistant Director (OL) and 5 posts of (i) Implementation of Cash Management Plan as Senior Translation Officer are lying vacant. Still matters per Monthly Expenditure Plan (MEP) and relating to implementation of Official Language Policy of Quarterly Expenditure Allocations (QEA) as the Union were dealt with by this division and follow up envisaged by Budget Division of Department of action taken on the orders and instructions issued by the Economic Affairs, Ministry of Finance. Department of Official Language from time to time. Entire (ii) Review of Monthly and Quarterly Expenditure vis- translation work of the Department from English to Hindi à-vis budgetary allocations and MEP/QEA and and vice-versa is ensured by the Official Language report to Revenue Secretary and Expenditure Division. Secretary in compliance of the guidelines of the The Department of Revenue is notified under Department of Expenditure, Ministry of Finance Rule 10(4) of the Official Language Rules, 1976. 30 for strict financial discipline. sections of the Department have been specified for doing their entire work in Hindi. (iii) Review of specific activities/developments of Department of Revenue and report to Secretary 6.2 Performance of the OL Division during the (Expenditure) on monthly basis. year under report: (iv) Enforcement of instructions on economy in a. All the documents pertaining to CBIC, CBDT expenditure by periodic review of expenditure and & Revenue Headquarters were invariably advisories to spending authorities for expenditure issued bilingually as per the requirement control in line with the economy instructions under Section 3(3) of the Official Languages issued by the Department of Expenditure. Act, 1963; b. All gazette notifications, replies to Parliament (v) Preparation and budgetary allocation for Questions and Assurances pertaining to Compensation to States/UTs for revenue loss on CBIC, CBDT and Revenue HQs were roll out of GST; Government Opium & Alkaloid furnished bilingually; Works; Acquisition of residential and office accommodation; Strengthening of IT capability c. Notes and monthly summaries for the for e-governance of CBIC, CBDT and Cabinet, Action Taken Reports (ATRs) on Department of Revenue; Acquisition of ships and the Report of the Comptroller & Auditor fleets to strengthen Marine capability & General of India, Annual Report and Acquisition of Anti-Smuggling equipment. Outcome Budget of the Ministry of Finance were translated and made available 5.5 In addition, the allocation and monitoring of the bilingually; budget relating to advances, viz. House Building Advance, d. A number of Double Tax Avoidance Computer Advance etc. were also done. Further, overall Agreements entered into with various supervision of budgetary mechanism of various scrip- countries were translated into Hindi; based schemes and liaisons with Department of Revenue, Department of Commerce and Department of e. Hindi translation of all the material relating Textiles for operation/ provisioning of funds for these to “Faceless Scheme” for honoring the schemes. honest tax payers was provided; and 180Department of Revenue III f. Website material received from all the fortnight for the gazetted officers, Hindi speaking non- sections of the Department of Revenue gazetted officers as well as the non-Hindi Speaking Headquarters, CBDT and CBIC was non-gazetted officers separately. Those who secured translated into Hindi and uploaded on the first, second and third positions in these competitions Ministry’s website bilingually. have been given cash prizes of Rs. 5000/- (First prize), Rs. 3000/- (Second prize) and Rs. 2000/- (Third prize) 6.3 Hindi Salahakar Samiti and OLIC meetings: and also 3 consolation prizes of Rs. 1000/- each were The Joint Hindi Salahakar Samiti of the Department of given. Revenue, Department of Expenditure, Department of 6.7 Training: Investment and Public Asset Management & Office of the Comptroller and Auditor General of India has been During the year 2021-22, 01 MTS was nominated constituted on 08 August, 2022 and the resolution was for training in Hindi typing in the course run by the Central published in the Gazette of India dated 20-26 August, Hindi Training Institute, Ministry of Home Affairs. 2022. 7. Implementation of the Right to Information 6.4 Inspection by Parliamentary Committee on Act, 2005 Official Language: 7.1 Revenue Headquarters Parliamentary Committee on Official Language In order to achieve the objectives of Good inspected 15 subordinate offices of Department of Governance, it is necessary that the administration Revenue. The Senior officers and Translation Officers of should be transparent, responsive, accountable, citizen- official language division facilitated successful inspections friendly and able to disseminate the information to the of these offices. citizens. Under the provisions of the RTI Act-2005 a 6.5 Official Language Inspections: nodal RTI Cell was set up in the Department of Revenue to coordinate RTI matters. The RTI Cell collects, The officers of the Hindi Division of the Department also dispenses and transfers the application seeking carried out inspections of 11 Subordinate Offices under information to the concerned CPIOs, facilitate the control of the Department of Revenue during the year dissemination of information under the provisions of the under report with the view to assess the progress in use Right to Information Act, 2005. of Hindi in the office and suggested ways to accelerate the use of Hindi in the official work. (i) The Department continued efforts towards to bring transparency and effective governance, we 6.6 Hindi Day/ Hindi Pakhwara: have placed information in the public domain on On the occasion of Hindi Day this year, the Hindi a proactive disclosure basis which is available Divas Sammelan was organised at Pandit Deen Dayal on the Department’s web site (https://dor.gov.in/ Upadhyaay Stadium, Surat, Gujarat. Honourable Minister rti/revenue-headquters) as required under of Home Affairs and Minister of Cooperation inaugurated section 4(1) of the RTI Act. the Hindi Sammelan. The Official Language Officers and (ii) In regards to the transparency audit which is the people involved in the official Language work along carried out each year, the self-appraisal form with the Hindi Scholars from all over India participated in submitted has been audited by the National this Sammelan. Institute of Public Finance & Policy. A message was issued by the Hon’ble Finance (iii) To facilitate contactless and paperless filing of Minister and Honorable Home Minister exhorting all the RTI Applications/Appeals, the RTI online portal officers/employees of the Department to do their (www.rtionline.gov.in) has been very convenient maximum official work in Hindi. in this regard. The replies to the RTI Application Hindi Pakhwara was celebrated from 14 and Appeals are uploaded on the portal which September, 2022 to 30 September, 2022. Various may be viewed exclusively by the Applicant/ competitions like Hindi noting & drafting, Essay writing, Appellant. Extempore Speech competition, Quiz competition, Hindi (iv) To make system of transfer of offline RTI typing and Hindi dictation competitions were organized during the Hindi Pakhwara. Also, there was an award Application to other Public Authorities are lodged scheme for doing maximum work in Hindi during the Hindi on the RTI Request and Appeal Management 181Annual Report 2022-2023 Information System so that it can be transferred (v) The following table indicates the number of online immediately to the concerned Public Authority. RTI Applications and Appeals received in the financial year 2022-23 up to 31.12.2022: Type No. of Applications No. of cases Request Request/ received during the year transferred to other rejected Appeals 2022-23 including cases PAs u/s 6(3) + accepted transferred to other Public returned to the Authorities Applicant Offline RTI Applications 12 12 0 0 Online RTI Applications 4393 3763 156 364 Offline Appeals 28 28 0 0 Online Appeals 111 111 0 0 Total fee received offline u/s 7(1) is Rs. 290/- Additional fee received offline u/s 7(3) is Rs. 340/- 7.2 Central Board of Indirect Taxes & Customs 7.3.2 Chief Controller of Factories (CBIC): A RTI cell in each unit of this organization, such 7.2.1 The Directorate General of Taxpayer as the factories at Ghazipur and Neemuch, as also at Services (DGTS) the Delhi office of the CCF have been set up. These cells function directly under the officials designated as This Directorate is the nodal agency under CBIC CPIO/APIO. The applications received are regularly to monitor the progress of filing of quarterly returns by disposed of within the prescribed timeframe. public authorities under CBIC on the website of Central Information Commission (CIC) as required under 7.4 Financial Intelligence Unit – India (FIU-IND): Section 25(2) of the RTI Act, 2005. It was ensured that all the field formations under CBIC uploaded their RTI Number of RTI applications received, disposed Quarterly Returns on the CIC website. During the period, off and denied during the Year 2022-2023 (Up to 5th applications received under the RTI Act, 2005 were December 2022): efficiently handled. This Directorate is also a nodal formation for monitoring and disposal of CPGRAMS and Received Disposed Off Remarks Appeals. During this period all received CPGRAMS and Transferred Denied Information Appeals were processed/forwarded to the appropriate provided for all 27 formations for further necessary action. Total No of 27 0 0 RTI request CPGRAMS Received -11881 and Total CPGRAMS received disposed- 11180. Total CPGRAMS Appeals Received - 3705 and Total CPGRAMS Appeals disposed-3231. Note: FIU-IND has been included in the Second Schedule of Right to Information Act, 2005 vide Department of 7.3 Narcotics Control (NC): Personnel & Training notification dated 28.09.2005 and 7.3.1 Central Bureau of Narcotics therefore under Section 24(1) of the Right to Information Act, 2005, is exempt from the operation of this Act, except Various provisions of Right of Information Act, for the information pertaining to the allegation of corruption 2005 have been implemented in the Central Bureau of Narcotics in the year 2005. Unit -wise information of and human right violation. CPIO’s and First Appellate Authorities appointed at 7.5 Customs, Excise & Service Tax Appellate present is as follows: Tribunal (CESTAT): S. Headquarters MP Raj. UP The Public Information Officer and the Appellate No. Gwalior Unit Unit Unit Authority as created under the RTI Act are functioning 1 CPIO 1 17 8 2 2 FAA 1 1 1 1 well in all benches of the Tribunal. There is significant decline in RTI applications filed before the information Further, it is to apprise that the application officer. All RTI applications and orders including orders received under RTI section are dealt with the RTI Act of the Appellate Authority are uploaded on the website. and are disposed off in the time limit. Detailed functions Proactive disclosure of information to the true spirit of and various aspects of the work done by the Department RTI Act is done in the interest of the public. are also available on CBN website http://www.cbn.nic.in. 182Department of Revenue III 8. E-governance activities which was launched by the Hon’ble Finance Minister on 28.05.2020. This facility is now 8.1 Central Board of Direct Taxes (CBDT): available for those PAN applicants who 8.1.1 Activities under E-governance: possess a valid Aadhaar number and have a mobile number registered with Aadhaar. (a) Permanent Account Number (PAN): As The allotment process is paperless and an per section 139A of the Act, PAN (Permanent electronic PAN (e-PAN) is issued to the Account Number) is a 10 digit alpha-numeric applicants free of cost. Number of PAN number allotted by the ITD to taxpayers and allotted through this functionality till to the persons who apply for it under the November, 2022 since the inception of the Act. Permanent Account Number (PAN) project is 1,58,96,747. enables the department to link all transactions and correspondences of a b) Integration with Ministry of Corporate person with the department. Affairs (MCA) for issue of PAN and TAN/ Instant e-PAN for corporate entities: PAN database has shown steady growth in PAN and TAN allotment has been integrated tune with economic progress. The with the process of registration of new progressive number of PANs allotted up to companies using a Common Application 30th November, 2022 (cumulative) is Form SPICe at MCA portal. Under this facility 65,35,12,518. During the period between PAN and TAN are being allotted on near to 1st December, 2021 to 30th November, 2022 real time basis. Number of PAN allotted total 6,43,80,513 PANs have been allotted. through this facility till November, 2022 is 8,33,603 and the number of TAN allotted (b) Common Business Identification through this facility till November, 2022 is Number (CBIN or BIN): As per section 139A 8,34,697. During this year of 2022, similar of the Act, role of Permanent Account integration was made with MCA for allotment Number (PAN) was envisaged as that of a of PAN and TAN to new LLPs. Number of tax-payer identity limited to ITD. However, PAN allotted through this integration till PAN is now required for various activities November, 2022 is 23,625 and number of like opening of a bank account, opening of TAN allotted through this facility till a de-mat account, for other financial November, 2022 is 23,578. transactions prescribed in Rule 114(B) of the Income-tax Rules, 1962, registration for c) Integration with SEBI: Integration with Goods and Services Tax (GST) etc. Thus SEBI, for grant of registration to the Foreign PAN is leveraged to become Common Portfolio Investor (FPI) by the SEBI and Business Identification Number (CBIN) or allotment & Issuance of PAN by the ITD has simply Business Identification Number (BIN) been launched. Under this process PAN/e- for providing registration to a number of PAN shall be allotted and issued to the FPIs government departments and services. on the basis of common application form submitted to the SEBI for grant of (c) PAN Verification Facility: PAN verification registration by SEBI to the entity. Number of facility is provided through the website of the PAN allotted to FPIs by the ITD till ITD through link “Verify Your PAN” facility November, 2022 is 2,013. on official website of ITD www.incometax.gov.in, by providing the PAN d) Facility for downloading e-PAN: A facility Full name and Date of Birth. to enable the existing PAN holder to download e-PAN through MSP’s websites Service for PAN verification is also provided after OTP authentication has been created. by Income-tax PAN Service Providers This enables a secure e-PAN which is (UTITSL and NSDL e-Gov) to agencies printable many a time. e-PAN can be falling under any of the approved categories downloaded in pdf format. Further, facility as per procedure laid down by the to download in .xml format (machine Directorate of Income-tax (Systems). readable) has also been launched. 8.1.2 New Initiatives e) Enhanced QR code on e-PAN & Physical a) Instant PAN allotment through Aadhaar PAN Card: The e-PAN is embedded with based e-KYC: For the purpose of an enhanced QR code which captures simplification of Permanent Account Number demographic data as well as photograph (PAN) allotment the PAN module of DIT and signature of applicant. This QR code (System) developed the facility for instant can be read through an app which is freely allotment of PAN (on near to real time basis), available on Google Play Store. The 183Annual Report 2022-2023 enhanced QR code enables offline master data management and data verification of PAN data, thus eliminating analytics. Data has been enriched by possibility of photo shopping etc. standardization of bank account resulting in enhanced security of PAN card number/contact/address, address and e-PAN. clustering, geo-coding, relationship identification/clustering. Data Analytics f) Integration of PAN with AADHAAR UIDAI is being used for identification of high (Aadhaar PAN linking): Integration of risk non-filers, selection of cases for database with UIDAI has already taken place scrutiny under CASS, identification of for seeding of Aadhaar with PAN for dual high risk refund claims, identification purpose. It prevents any of the duplicate of high risk remittances, risk PAN from being issued to any applicant assessment of information received as well as to identify the applicant having under Automatic Exchange of an already issued PAN. Seeding of Information (AEOI), Country-by- Aadhaar number is made mandatory by Country Reporting (CbCR) and provisions of section 139AA of the Income Suspicious Transaction Reports Tax Act except for the categories of person (STRs). as provided by Gazette notification no. S.O. 1513(E) dated 11-05-2017. Till 30.11.2022 iv. Compliance Management Central a total of 48,99,03,322 PANs of individuals Processing Centre (CMCPC) have been seeded with Aadhaar data base, leverages campaign management which is approximately 76.57% of total PAN approach (consisting of emails, SMS, allotted to individuals. Seeding of Aadhaar reminders, outbound calls, letters) to in remaining PANs is presently going on. support voluntary compliance and resolution of compliance issues. A g) Project Insight: An integrated data dedicated compliance portal (https:// warehousing and business intelligence compliance.insight.gov.in) displays platform has been operationalised to enable information to the taxpayer and capture ITD in meeting the three goals namely (i) to response on compliance issues in a promote voluntary compliance and deter structured manner for effective noncompliance; (ii) to impart confidence that compliance monitoring and evaluation. all eligible persons pay appropriate tax; and (iii) to promote fair and judicious tax a. e-campaign for non-filers for AY administration. The key components of 2020-21 was executed. As a Insight System are: result, 4.32 Lakh identified non- filers filed their return and self- i. A State-of-the-Art Data warehouse assessment tax of Rs. 3,850 crore has been operationalized and regular was paid by target segment after reports/MIS are provided to CBDT and campaign. Government for pre-budget analysis, impact assessment and policy b. e-campaign for significant formulation. transactions (during FY 2020-21) was implemented for 6,51,207 ii. A dedicated reporting portal (https:// taxpayers who had conducted report.insight.gov.in) provides a high value transactions in the comprehensive interface between current year and the quantum of Reporting Entities (REs) and the ITD. advance tax paid was lower than The Reporting Portal enables the expected amount. The seamless data filing, data processing, significant transactions were data quality monitoring and report shown to the taxpayer and a facility rectification. Compliance Check for was provided to provide PAN u/s 206AB and 206CCA has also confirmation and feedback (if the been enabled at Reporting Portal for information was incorrect). After REs. the campaign, 1,24,325 taxpayers iii. Income Tax Transaction Analysis paid advance tax of Rs 13,874 Centre (INTRAC) handles data Crore. integration, data processing, data c. E-campaign for high value quality monitoring, data warehousing, transactions (including SFT, TDS/ 184Department of Revenue III TCS, GST, Exports, Imports, access control. The Profile View foreign remittance, securities displays key insights, financial ratios transactions etc.) vis-a-vis the and related information for effective information filed in the ITR was analysis. executed for 7,19,062 taxpayers ix. I- Search has been enabled at insight for A.Y. 2020-21. Underlying high supporting the fuzzy search value transactions were shown functionalities wherein the ITD user can to the taxpayer on the search entity, address, bank account, Compliance portal and online Property, Non-PAN Transaction etc. facility was provided to validate when the Entity ID is not known to the the information and provide user. The user can search on the basis feedback if the information was of attributes such as name, address, incorrect. After the campaign, date of birth, father’s name, email, more than 1,10,137 taxpayers mobile number, passport number, revised their returns and Aadhaar number, vehicle no., bank increased the income in revised account number etc. Suspicious return by 1,609 Crore. Transaction Reports Information v. Annual Information Statement was Search has also been enabled at operationalised in October 2021. Insight. Annual Information Statement (AIS) x. Verification of Information in form of is comprehensive view of information Various Case Types have been for a taxpayer displayed in Form enabled at Insight for Taxpayers and 26AS. Taxpayer can provide feedback Reporting Entities. The ITD Users are on information displayed in AIS. Many able to sought Information from new information sources, not Taxpayer through Issue of Various available in the current Form 26AS, Notices (e.g. 133 (6), 131(1A) and view have been added in AIS. The the Response submitted by Taxpayer objective of AIS is to display complete before Verifying Information. and accurate information to the taxpayer, enable taxpayer to provide xi. Bulk Data Uploading – Utilities like feedback on information and to Case Related Information Upload enable seamless pre-filling of return. Utility and Verification Report Upload Utility have been provided for ITD vi. Business Intelligence Dashboard Users to upload Information in bulk consisting of 200+ interactive w.r.t. a PAN and the corresponding view Business Intelligence (BI) reports has of the Information has been enabled been implemented to provide under the Profile Views of the actionable information to ITD users Respective PANs and to the Person with drill down. The BI reports have uploading the Information packet. been classified under various themes such as Tax Collection, Tax Base, ITR xii. Insight Knowledge Hub, an Information, Business Information, integrated platform consisting of i-Wiki, Exemption, Taxpayer Compliance, i-Library, i-Forum and i-Query, has TDS Information, TDS Compliance, been rolled out to assist ITD in International Transactions, Third “Organizing creating, sharing, using Party Information etc. and managing organisation knowledge for getting the right knowledge to the vii. GIS (Geographical Information right person at the right time”. System) Dashboard consisting of more than 100 interactive GIS reports xiii. Insight Learning Hub, an integrated have been implemented to provide platform consisting of learning high-level geographical view to senior management system, online courses, management for effective monitoring. competency tests and training material repository has been rolled out to viii. Profile View under Insight Portal supports capacity building of ITD provides comprehensive multi-year employees by “delivery and tracking of profile of taxpayer and other entities customized learning content to with secure role based information 185Annual Report 2022-2023 employees using competency-based statements, Intelligence and Criminal training approach”. 15 online courses Investigation (I&CI) data etc. to identify such have also been rolled out for persons/entities who have undertaken high customised training and capacity value financial transactions but have not filed building of assessing officer. their returns. During the year around 19 lakh non-filers with potential tax liabilities were In implementation of faceless schemes Insight identified. The information about System is being leveraged for automated allocation of transactions is made available on the online cases, verification, risk assessment of draft orders, bulk portal and email and SMS is sent to the non- signing etc. filer to provide online response and submit return. Many non-filers file their return and Proposal for Insight Enhancement (insight+) was pay appropriate taxes. The details of high approved after considering the new requirements risk non-filers are pushed to the field emerging from changes in legal framework and operating formation for further action. Further, in view environment. The scope of Insight enhancement consists of the challenges posed by Covid-19, of following components: transformational changes introduced in the department and recent amendments i. Comprehensive API based integration with introduced vis-a-vis reassessment in the Act, internal (CPC 2.0, ITBA) and external (Reporting Multiyear NMS cycle was executed to entities, Exchange Partners) systems. rationalise the work load on field formations ii. Implementation of Intelligent Decision Support w.r.t. already existing NMS Cycle 3 to Cycle System to meet the requirements of Centralised 9 cases. e-Verification Scheme. j) Payment of Taxes: The Online Tax Accounting System (OLTAS) facilitates near iii. Implementation of Annual Information Statement real time reporting, monitoring and (AIS). reconciliation of tax payments made by iv. Aadhaar based login on Compliance, Reporting taxpayers through banks. E-payment of and Data Exchange Portal. taxes has been enabled through Net Banking and ATMs and nearly 89% of tax is v. Mobile app for basic Insight functionalities. collected through this mode facilitating payment of taxes anytime from home/office h) Computer Assisted Scrutiny Selection without having to go to a bank branch. (CASS): ITD has been implementing Companies and auditable cases (taxpayers Computer Assisted Scrutiny Selection where provisions of section 44AB of the Act (CASS) for selecting cases for scrutiny are applicable) are mandatorily required to (audit). The suggestions received from field electronically pay taxes. Financial year wise formations and the outcome in cases percentage of e-payments is as below: selected in prior years are reviewed by a cross functional committee (including Financial % in terms of % in terms of total Year total number amount associated representatives from assessment, of e-challans with e-challans investigation, intelligence, international taxation, transfer pricing, risk assessment, 2019-20 84.36 90.95 systems) to refine the scenarios and 2020-21 86.39 91.27 parameters. New scenarios are also introduced on the basis of analysis of 2021-22 88.16 91.20 information sources and environmental 2022-23 (Till scanning. New approaches such as 19th Dec, 2022) 90.23 92.47 Thematic risk assessment etc were introduced to further refine selection basket New Payment solution (TIN 2.0) has been rolled under few scenarios. out under IEC 2.0 project. As on 15.12.2022, 12 public and private agency banks have been on boarded on TIN i) Non- Filers Monitoring System (NMS): 2.0 portal to receive tax payments. Remaining authorised The ITD has implemented the Non- Filers banks are expected to be on-boarded by end of FY 2022- Monitoring System (NMS) which assimilates 23. The benefits of new payment solution are as under: and analysis in-house information as well as transactional data received from third- • Enable tax payment through NEFT/ RTGS parties, including Statements of Financial mode Transaction (SFT), Tax Deduction at Source • Payment Gateway mode enabled for tax (TDS) and Tax Collection at Source (TCS) collection 186Department of Revenue III • Real time credit of tax payment and MIS has been a steady increase in number and percentage of refunds issued through the scheme. During current • 100% reconciliation of challan data and Financial Year, the percentage of refunds issued through funds the scheme is 99.99 % of the total number of refunds • Online mechanism for challan correction issued all over India as under: k) Refund Banker: The Refund Banker project During FY 2022-23, in upcoming project TIN 2.0, has enabled system driven process for real time integration (API based) between CPC 2.0 and determination, generation, issue, dispatch refund banker has been envisaged to be implemented to and credit of refunds. This project has made ensure direct credit of refund on the same day. the process of delivery of refund completely l) New e-filing Portal: As part of our automated, speedy and transparent. Under commitment to provide improved taxpayer the Refund Banker Scheme, paper and services, the new Income Tax Portal electronic refunds determined by the Income www.incometax.gov.in was launched for Tax Assessing Officers are sent in electronic better e- filing experience and faster files by ITD to the State Bank of India (SBI), processing of ITRs. New facilities in the form which has been designated as the Refund of wizard based questionnaires and prefilled Banker agent of the Department. The Refund returns are being provided as help to the Banker sends ECS or Direct Credits to the assessees. Constant monitoring for bank accounts, where the refunds have been improvement of the present digital platforms processed for electronic payment. is being done. Department has identified the issues being faced by different stakeholders A web based status tracking facility in and the Department has taken corrective collaboration with India Post and Protean eGov measures through the service provider Technologies Limited (NSDL) is available under the based on feedback from taxpayers and tax Scheme. Call centre facility with toll free number 1800- professionals. 42-59-760 is also available for tracking status of refunds a. Faster and accurate outcomes for taxpayer issued through the scheme. b. First time right approach The Assessing Officer’s role in issuing refunds is limited to processing the return of income on computer. c. Enhancing user experience at all stages The status of refunds is updated on the departmental d. Improving taxpayer awareness and application with reasons for non- payment in case of education through continuous engagement unpaid or returned refunds, to enable the assessing officers to re-send the refund for payment after removing e. Promoting voluntary tax compliance the deficiency. Audit trail and MIS on unpaid/unpicked f. Managing outstanding demand refunds (with ageing) are available on departmental system for monitoring status of issue of refunds. There The new income tax e-filing portal www.incometax.gov.in was launched as part of the Financial No. of No. of Total no of Percentage Integrated E-filing and Centralized Processing Centre 2.0 Year Refunds Other refunds of Refunds Project. (Paid) Refunds paid Paid m) Income Tax Business Application (ITBA): through (Paid) through The Income Tax Business Application (ITBA) Refund Refund has been in action for over 4 years. ITBA is Banker Banker used as a platform for delivery of taxpayer services such as Grievance Redressal 2018-19 2,81,90,436 2,493 2,81,92,929 99.99 through E-Nivaran portal, passing of orders 2019-20 2,88,47,480 456 2,88,47,936 99.99 relating to issuance of refunds etc, which are carried out by the officers of the 2020-21 2,53,42,641 205 2,53,42,846 99.99 Department. It has been designed and implemented with the aim of being abreast 2021-22 2,74,45,790 167 2,74,45,857 99.99 with technological changes; re-engineering the business process within the tax 2022-23 administration and empowering the (Reported employees to deliver outcomes in a till 19th consistent, efficient and taxpayer friendly Dec. 2022) 3,25,27,138 225 2,84,33,363 99.99 manner. ITBA’s main objective is to bring all 187Annual Report 2022-2023 internal business processes on a digital ii) Integrated Communication Management: platform so that officers and staff can Based on the learnings of e-filing and CPC increase their efficiency by bringing Projects, this integrated communication information and work at a single place for management system and processes have decision making. Apart from being been implemented in IEC 2.0. The taxpayer accessible over ITD’s private network, ITBA interaction with the Department is better is also accessible over the internet using handled when all the modes of VPN to cater to the challenging times like communication through the communication COVID-19 and to remove hindrances in happens are integrated, as it is convenient timely delivery of taxpayer service. for both taxpayer and the Department to know the concerns raised across all tracks One of the key achievements of ITBA has been and provide a faster and comprehensive the enablement of Faceless Assessments/Appeals/ resolution in totality. All the interactions no Penalty. In August 2020, the Government of India matter whether by call, grievance, email, launched the ambitious Faceless regime under the social media are tracked in a single place taxpayer friendly goal of “Transparent Taxation - and all communication to and from taxpayer Honouring the Honest”. In Faceless, certain legal are managed in this system. proceedings under direct tax laws are conducted by leveraging information technology. Hence, the faceless iii) Capacity Building and e-Learning regime aims to impart greater efficiency, transparency, Module: A learning management system and accountability in the income tax proceedings by and e-Learn programs covering Income Tax eliminating in-person interaction between the taxpayer Act, Rules, Processes of E-filing and and the tax officer. ITBA is the platform for use by the tax Centralised Processing Center as well as officers, for implementing the Faceless regime. ITBA system are developed and used for training of the resources of MSP, Assessing Over 2.10 lakh assessment orders, 3.8 lakh Officers and Officers working in IEC 2.0. penalty orders, and 1.4 lakh appellate orders have been New topics are created to cover the new passed in a faceless manner on the ITBA portal since initiatives of the Department like Crypto- the launch of the respective faceless regimes. currency taxation, etc., are added to courses n) Integrated E-filing & Centralized and these programs are conducted via Processing Centre (IEC 2.0) webinar and webex sessions. This is systemic learning methodology for ITD i) Integrated e-Filing and CPC (IEC 2.0) was officials and tax payers through electronic launched to operations in two phases. First mode. The e-learns for tax payers shall be phase by enabling processing and accounting enabled on the envisaged e-Filing 2.0, CPC of ITRs from AY 2020-21 as CPC 2.0 from web portal and on YouTube channels. There 25th November 2020, wherein more than are thirty-seven Youtube videos are available 20.76 crore ITRs have been processed till for the taxpayers. There are two Awareness November 2022. Second phase by launching Videos. There are five brochures. The Help the e-filing Portal https://incometax.gov.in on Section of the portal under ‘Learn with us’ 7th June 2021, wherein more than 14.29 Crore provides FAQ and other help documents for ITRs have been filed and 2.60 crore Forms the benefit of the taxpayers. There is planned are filed till November 2022. The integrated training calendar for delivering the trainings. e-filing and CPC IEC 2.0 has started delivering a world class experience to the iv) Taxpayer Outreach Program: Campaigns taxpayers similar to that they are experiencing of the Department are now carried out in the in the online world in sync with world -wide digital mode on social media and other trends. A completely re-designed e-Filing online platform using the campaign content portal has been launched with modern day created keeping the target audience in view. technology, which has: The campaign brochures, news items, educative material, release of new forms, a) user friendly designs, release of ITR utility, etc. are run on digital b) wizard based easy to use forms and ITR, platforms including social media on a continuous basis. The campaign will focus c) user journey mapping to enhance on thematic requirements of the department experience, such as requirements for e-filing of return, d) all forms in online mode to provide ease frequently asked questions, common errors, to tax payers. outstanding tax demand, rectification etc. 188Department of Revenue III This outreach has helped to improve the group and e-mails. The conducting of accuracy of the return and assist taxpayers examination through online mode has in the filing, processing and create reduced the paper work and manpower awareness about the initiatives taken by requirements substantially. CPC 2.0. More than 100 Crore SMS and 200 b. ITD has adopted the File Management System Crore email campaigns have been carried (e-File) on the e-Office application of NIC. It is by IEC 2.0 using the creatives created by operational from 27.04.2022. In its first phase, the Taxpayer Outreach facilitation team.350 5000 nodes on e-Office platform of NIC has different email campaigns were carried out. been procured in the Directorate of HRD. A 182 Campaigns were sent in FY 2022-23 till total 3147 nodes have already been allocated October 2022. 151 different SMS campaign during the first phase (i.e. till November 2022) were carried out. 64 different SMS campaigns were sent in FY 2022-23 till covering the administrative hierarchy of the October 2022. Samvad Sessions were ITD across India. carried out to inform the public at large about c. 5000 additional nodes (for e-Office from all the services provided by IEC 2.0, these NIC) are being procured so as to enable pan- sessions on Youtube have received more India coverage of e-Office to all the Officers than 10 lakh views. till the level of ITO. First, the expansion will v) MIS Portal for internal users: MIS Reports cover officers in Delhi and Mumbai regions are emailed to Officers of the Department and gradually be extended to other regions associated with IEC 2.0 daily, covering the across India. key parameters of services like number of d. ITD has shifted to SPARROW portal for APAR ITRs and Forms filed daily and cumulatively, filing of Group A and Group B officers. number of e-PAN allotted, Aadhar PAN Continuous efforts are being made, like online linked, Bank Account PAN linked, sessions, communications through WhatsApp Rectification filed, Updated ITR filed, groups, e-mails, in-person training, so as to Number of logins, number of DSC help the officers w.r.t. navigation on the registered, New Users Registered, etc. SPARROW portal and to address their Apart from the reports that are emailed, MIS grievances promptly. For the reporting year portal has other reports which are updated 2021-22, 97% of APAR filing has been as per the defined frequency for the internal accomplished on SPARROW portal. users of the Project. e. UDAAN: The IRS Mentoring Programme vi) Accreditation of employers, deductors, Scheme had commenced on 1st October, banks CAs etc.: Accreditation program with 2021. The Mentoring Programme, for 73rd employers, deductors, banks, CAs, ERI and batch of IRS officer, showed positive TRPs etc. will enable the department to response. Interim report, sought from all the obtain information about taxpayers relating Pr. CCITS (CCA), showed satisfactory to salary, interest, income from house progress in the respective regions. property, deductions etc. throughout the year Subsequently, the Mentoring Programme in an accurate manner which will enable was initiated for the 74th batch of IRS officers. CPC 2.0 to accurately pre-fill the return and Process of assigning mentors in every region take up these returns for faster processing. was completed as per the SOP issued for 74th batch of IRS officers. Through this 8.1.3 New Initiative in respect of Human Resources programme, the young officers would be Development (HRD) exposed to the right values and ethics at the a. For the very first time, the Departmental nascent stage of their careers. Development Examinations, 2022 were conducted in of a mentoring culture through a pool of Online Mode for ITOS and ITIS from 7th trained and committed mentors has been a November, 2022 to 15th November, 2022 key priority area for the Directorate of HRD. except for ITO, Paper-4 being a subjective paper. Every possible precaution was taken 8.2 Central Board of Indirect Taxes & Customs for fair & smooth conduct of Departmental (CBIC) Examination 2022 for ITOS & ITIs. The initiatives/projects of DG Systems are aimed Instructions were issued, as and when at supporting e-Governance initiatives through the use required, to all the In-charge of Examination, of technology and promoting trade implemented from time to time via phone calls, WhatsApp 189Annual Report 2022-2023 facilitation. The following modules/functionalities were etc.) The workflow and approval process for implemented the fiscal year 2022--23: messages by an officer is similar to that of stuffing report. Stuffing cancellation requests i. Faceless Assessment with Anonymized are available for approval under the “Exam Escalation Mechanism (AEM): Superintendent” role. As required by Board Circular No. 14/2021 iv. New CLK role options for temporary dated July 7th, 2021 on faceless refund scroll assessment measures for expediting customs clearance, an Anonymized To streamline & to reduce the time taken by Escalation Mechanism (AEM) has been the system to generate temporary refund implemented, through which an importer or scrolls, new options have been added under customs broker (CB) can raise a grievance the CLK role in ICES for only those shipping in the event of a delay in the assessment of bills that satisfy all conditions required for a Bill of Entry, for escalation to the concerned scrolling in the final IGST scroll, DBK scroll, Faceless Assessment Group (FAG) while and above IGST scroll for manual SBs, maintaining the officer’s anonymity and the respectively. The existing options for location where the B/E is pending for generating temporary scroll types remain assessment. For monitoring and follow-up, unchanged. Officers can generate a the tickets are routed to Customs officers in temporary scroll from an existing option to supervising role (VDN role at FAG in and ascertain the reason for the non-scrolling of ADN role at local ports) in ICES. This trade various SBs in the final scroll through the facilitation measures are expected to indicated legends/symbols in the temp scroll. enhance accountability & transparency in v. IGCR Implementation in SEZ Clearances faceless assessment. for DTA Supplies ii. System changes pertaining to AD Code A mechanism has been implemented for Registration in Exports SEZ clearances for DTA supplies. The To facilitate trade, as required by Board provision of IGCR bond debit by officer in Circular No. Circular No.32/2020-Customs ICES has been enabled for SEZ bill of entry dated July 6, 2020. ICES has made changes as such SEZ BEs were on another systems to the AD code, (authorized dealer of foreign of Department of Commerce. In IGCR exchange) whereby the AD code and module, BG% modification was done. This associated bank account will now be is a step towards enhance of ease of doing required to be registered in the System at business easier. only one port, and the AD code will then be vi. Online EODC (Export Obligation available at all customs locations. Any new Discharge Certificate) viewing in ICES AD code registration (or update) at any port must be registered via an online request at A new functionality under “EODC View” ICEGATE. The option in ICES for local ports under the LIC role has been introduced in to add/modify the AD code and account ICES for Customs officers to view online against an IEC has been disabled. As is Export Obligation Discharge Certificate (i.e. customary, the request would be approved EODC) for two export promotion schemes by the officer assigned to the relevant role namely Advance Authorization (AA) and (CLK) at that specific port. Once an AD code Export Promotion Capital Goods (EPCG). has been registered against an IEC at one The same can be used for bond monitoring, port, it can be used at all ports. This is bond closure, or bond recovery action, thus intended to be a trade facilitation measure. enabling better monitoring of these schemes. iii. Under the new SCMTR, Stuffing Cancellation (SFCN) is enabled. vii. Incorporation of Notification No. 16/2011 - Customs (N.T.) into the IGCR System A Stuffing Cancellation (SFCN) message was introduced to allow custodians to cancel The above notification has been an incorrect stuffing report, such as one implemented in the system as per the caused by an error in the integration of procedure decided by the Board. While filling message stuffing files due to changes in out the bill of entry, a new scheme code is attributes (such as pkg range, qty, seal no, to be used for the aforementioned 190Department of Revenue III notification. The IGCR bond (EI bond) will system. After processing BE data, RMS will be debited in the system for the assessable generate an examination order for each value at the item level instead of global level. selected BE based on potential risks, according to the new procedure. An RMS viii. Changes to the Customs Tariff enacted generated examination order would include by Finance Act 2022, effective May 1, 2022: the following main points: Changes has been incorporated in EDI (i) the percentage of containers to be Systems timely. examined, ix. Integration of India UAE CEPA into (ii) the percentage of goods in the selected System: area/part (s) to be examined, The India-UAE CEPA has been activated in (iii) item level instructions, and (iv) any the system timely. This included creating a additional examination instructions. new document code for e-Sanchit for BE filing, checks for mandatory defacement xiii. Incorporating condition 3(ii) of CBIC prior to OOC, an Agreement Country code Notification No. 07/2020-Customs (N.T.) for declaring the shipping bill for exports to dated 28.01.2022 for allowing check only the UAE, etc apart from introduction of a new up to 2 digits for chapters 84,85,87 as per license type namely tariff rate quota (TRQ). communication received from Drawback wing. x. Enabling the rail export of goods from Necessary validations have been Bangladesh to India in closed containers: incorporated in the System. With reference to Board Circular No. 08/ xiv. Rounding off of Duties: 2022 dated May 17th, 2022 systems changes were implemented for return of The rounding off various duties collected in containers from Bangladesh to India to now Customs at minor head level has been be used to transport export goods from implemented in System in accordance with Bangladesh to India, this will apply to closed Board instructions/clarification and the containers transported by Indian Railways requirement of Electronic Cash Ledger. on trains operated by Container Corporation xv. Conversion from non-EDI to EDI: of India (CONCOR). Changes have been made to the ICES application to allow for Launch of New EDI Sites in ICES - In this the submission of import reports for such fiscal year, seven (07) customs locations containers at LCS as well as the submission have been migrated from the non-EDI of bills of entry and clearance at ICDs. platform to the EDI platform. xi. Faceless Enhancements Improvements: xvi. Creation of Data Links: A number of changes have been made to A data base link (DB link) has been created enhance trade facilitation and for better in ICES for the Bengaluru Zonal Unit’s FPO monitoring. When BE was being amended, module to access ICES directories, which will aid in the launch of the FPO module. a number of issues arose. Similarly, there were issues with suspended BEs. These and xvii.Enabling MIS reports via the Dashboard: other similar issues were resolved, thereby improving the faceless system for officers. For senior officers with COM/CCOM/NMIS, various reports related to FAG queries under Problems in BEs where amendment was Faceless Assessment, Document pendency applied for or where BE was suspended report in imports and exports, Drawback were identified and resolved. age-wise pendency report, AAKLAN report, xii. Turant Customs - Orders for and so on have been enabled in ICES for Standardized Examination. better monitoring. With reference to Board Circular No. 16/ xviii.Systemic streamlining of RoDTEP and 2022 dated August 29th, 2022, whereby the RoSCTL processing and scrolling: Board had decided to implement system- Various changes have been implemented on generated standard examination orders to the system over time to streamline the harmonize examination orders across processing and scrolling out of benefits for FAGs, changes were implemented on the RoDTEP and RoSCTL claims such as 191Annual Report 2022-2023 increasing the limit of SBs in a scroll to be registered at any port and used 25,000, handling RMS facilitated cases, subsequently at any port when filing a handling LCS shipping bills, etc. Transshipment Permit (TP) from Air to Air xix. System customization of alerts/ and Air to ICD. suspension module for exports: Changes In addition to the foregoing, the following projections are made in System made for the remaining period until March: In the erstwhile alert module, alerts could only i. Conversion of non-EDI customs be set against an IEC and not a GSTIN. As a result, IGST refunds for all GSTINs associated locations to EDI: with that IEC were halted, as were all Efforts to convert non-EDI customs incentives such as Drawback, IGST, RoDTEP, locations to EDI are ongoing. This fiscal and RoSCTL associated with SBs pertaining year, additionally five non-EDI to that IEC at that port. The alert module was revamped. Now alert can be separately for locations, Nagarkata LCS, Kulkuli LCS, IGST benefit and Customs benefits. Manu LCS, Guwhati Steamer Ghat and Dubhri Steamer Ghaat will be A new role for DGARM officers is created in converted to EDI. the modified alert module for imposing an all-India suspension for IGST refunds. In this ii. SEZ Integration: role, DGARM officers have the option of placing either an IEC or a GSTIN alert, which Following Board approval, testing for the would result in the suspension of IGST first phase of SEZ (FTA to SEZ and vice refunds at all Customs EDI ports. This versa) has begun at pilot sites. eliminates the need for individual EDI sites Communication has been sent to the to insert a suspension in respect of IEC for Board for approval for the second phase such DGARM alerts. Furthermore, the of the SEZ (SEZ to DTA and back). DGARM officers have the option to revoke the alert. 8.3 Directorate of Enforcement There are three options available: ED has made a number of efforts to digitize its (i) To suspend only IGST refunds (G), functions for ML risk profiling and streamlining the ML / officers can place an alert against a TF investigations with the use of AI, computerization, etc, GSTIN. It would stop IGST refunds for the same are summarized as below: shipping bills submitted under that i) Project of Computerization of the processes GSTIN. of ED:This project has been initiated to (ii) To suspend only Customs Benefits (I): computerize all the processes of the ED including Officers can issue an alert suspending identification of ML cases on risk based Customs Calculated Benefits (i.e. mechanism, handling all matters of investigation Drawback, RoSCTL and RoDTEP). in the system, having interface with other external This type of alert can only be placed against an IEC, and not a GSTIN. agencies for smooth and expeditious exchange of information, etc. Important features of this (iii) To suspend both the IGST refund and project which will assist in digital transformation the Customs Calculated benefit (B), of ED are as under:- officers can issue an alert suspending all benefits (i.e. IGST, Drawback, a) The ED will get a customized software RoDTEP and RoSCTL). This type of [termed as Core ED Operations System alert can only be placed against an IEC, (CEDOS)] developed for use of its officers not a GSTIN. Shipping bill level alert and all the file work will be replaced by can also be placed. system based functioning in all areas of work xx. Air Transportation Bond (TA) Bond: including intelligence collection and The All India National Air Transshipment processing, investigation, management of Bond has been implemented in ICES, properties, human resource management, whereby a National Bond (bond type TA) can etc. 192Department of Revenue III b) The system will be able to integrate with This project will enable smooth and fast co- various external agencies through API which ordination between ED and various domestic predicate are following as – agencies and FIU& NATGRID. ED will have access to databases of various domestic agencies which will enable • FIU: The STRs from FIN-NET could be ED to verify facts in real time which would have otherwise accessed through the interface taken weeks to months. The AI used in the project will between the two applications save time taken in various processes and would fasten • CBI: Interface with CRIMES system of the pace of the ML investigation. The Detailed Project CBI to ensure timely exchange of Report (DPR) was submitted to DoR, Ministry of Finance. information. The recommendations of Delegated Investment Board (DIB) were received from DoR. Request for Proposal • NATGRID: Information could be (RFP) of Digitization Project has been sent to DoR for extracted by NATGRID through which their consideration and approval is awaited. ED can get inputs. ii) Risk Assessment Monitoring Committee: In • GSTN: This will lead to allowing access consonance with FATF standards, the Directorate to the financial information filed by a of Enforcement has formulated a risk based person in the GST returns which will system for selection of cases for money assist in intelligence collection and laundering investigation which provides that investigation. certain categories of cases should be mandatorily • CBDT: Information about the PAN investigated and certain cases shall be number, bank accounts, filing income, investigated on the basis of risk involved. 26 AS, etc could be made available in The access to CCTNS/ICJS database (which is the system. a repository of the FIRs registered by the LEAs) • Integration with other relevant has been given to all the offices of the Directorate. government bodies application like e- All the potential cases of ML are identified online courts, CCTNS, ICJS, etc. through logging into CCTNS/ICJS portal and the cases which do not fall under the mandatory c) The system shall create and maintain a criteria are examined by a Risk Assessment database of all the intelligence/inputs Monitoring Committee (RAMC), which holds received from LEAs, etc. and ongoing cases meetings every quarter through Video of ED so that a consolidated database may Conference. The digitization project will further be created including details of individuals, lead to refinement in selection of cases based Bank Accounts, Corporate Entities, Mobile on risk profile. Numbers, PAN / Aadhar Number / CIN # / IEC Code etc. This will help in ensuring that iii) Analysis of call data records:ED intercepts ED has a ready-made database to refer back calls of various persons during the course of or to provide linkages as and when they investigation. However the same are voluminous come in contact with ED during any new and various difficulties are faced in analyzing investigation. them. To overcome the same, Directorate of Enforcement contacted BARC which has d) An easy to access and responsive search developed 2 software (one each for Hindi and functionality shall be available to ED officers English languages) to convert speech to text and to help them conduct search on individuals, analyse these call data records automatically. transactions, cases, supporting documents Also, this project is being further extended to and underlying data. Every time the above assimilate the major Indian regional languages. parameters are entered in the system, the For this, data (both audio and transcript) has been database can provide all details related to it. obtained from Central Institute of Indian e) The CEDOS solution shall also have Languages (CIIL), Mysuru and provided to BARC advanced analytics and capability of for developing similar software in Regional performing advanced analysis on high languages too. volume data received from various case iv) Summons module: The Directorate of proceedings as well as received from Enforcement has implemented an intranet external agencies. application for generating summon(s) [issued f) The existing records shall also be scanned under the provisions of Section 50(2) of the with OCR capability so that the details are PMLA, 2002]. This module has helped ED in captured in the database. digitalizing the process of issuance of summon(s) 193Annual Report 2022-2023 and bring transparency in the process. Further, Further, the officials of ED Cadre have filled their it has also brought awareness among public to APARs for F.Y. 2021-22 online through ensure the credibility of summon(s) issued by this SPARROW Portal. Directorate and prevent them from being conned/ 8.4 Narcotics Control fooled by unknown persons through fake summons. As a result of implementation of this 8.4.1 Central Bureau of Narcotics module, a racket which was using fake summons of this Directoratefor extortion was busted in co- As regards, E-Governance activities, it is stated ordination with Delhi Police and several accused that various instructions of the Government, on issue of persons were arrested by the Delhi Police. e-governance, are noted for compliance and necessary action. Use of CCTV’s Camera’s at Settlement and v) Handling of digital evidences:ED seizes huge Weighment centres was also successfully carried out. number of digital evidences(e.g. hard disks, Payment to cultivators made through e-payment from the mobile phones), during search and seizure crop year 2012-2013 continuously. operations. Analysis of these evidences is extremely essential for the purpose of Computers have been provided, almost, in each investigation. But, it often consumes a lot of time section and have been inter-connected through Network. (2 to 6 months) to get data retrieved from All urgent reports or replies to the references received certifiedNational Cyber Labs. To overcome this from the Ministry are being forwarded to the Ministry of issue, the Directorate signed a MoU with National Finance, New Delhi and other offices through e-mail, as Forensic Sciences University (NFSU), far as possible. Gandhinagar to help ED to create its own cyber lab with trainedstaff. Now, ED has 6 cyber labs The Central Bureau of Narcotics website has ofits own wherein forensic analysis of these digital been updated and all the application forms for issue of evidences is done by using specialized forensic export/import authorization for export/import of tools. Now ED is able to analyze digital evidences Psychotropic substances, Narcotics Drugs and Precursor in 4-5 days of seizure operations following due chemicals can be downloaded from the CBN website: procedures. Further, ED has entered into a MoA www.cbn.nic.in. The opium cultivation data from 1998- with the National Forensic Sciences University 99 has also been uploaded on the CBN website: (NFSU), Gandhinagarfor management of www.cbn.nic.in. existing six (06) Cyber Labs of ED and A work has been awarded to a firm for establishment of a new Cyber lab (i.e. 7th Cyber development of software for complete online solution to Lab of ED) at NFSU, Gandhinagar. The 7th Cyber issues related to issuance of Import Certificates, Export Lab of ED situated at NFSU, Gandhinagar, Authorisations and No Object Certificates required for Gujarat will become functional during Financial import/export of narcotic drugs, psychotropic substances Year 2022-23 itself. and precursor chemicals. vi) Revamping of ED’s website: The Directorate 8.4.2 Chief Controller of Factories of Enforcement has revamped the ED’s website (i.e. https://enforcementdirectorate.gov.in), to The Organization of Chief Controller of Factories make it more informative and user friendly. In has re-launched its own website which contains complete addition, ED has also implemented a unique information about the organization, its activities, contact feature on official website for verifying details, etc. All tenders for procurement of material and summon(s) issued by ED by scanning the QR services are timely uploaded on the website for code printed on summon(s). Using this facility, information and participation of the manufacturers / the receiver of summon(s) can verify the suppliers. The organization has also arranged to display authenticity of summon(s). various information pertaining to production of drugs, sale vii) Implementation of SPARROW in ED cadre for of drugs, etc. through internet. Placing of various other APARs: The Directorate of Enforcement (ED) information for information of the concerned authorities has implemented SPARROW for all the have also been taken up and likely to be provided soon employees of ED cadre so that their APARs can through internet. Placing of various other information of be filed online through system by logging into the concerned authorities have also been taken up. The SPARROW Portal, using their name based organization purchase goods & services through official email ids. ED has implemented Government e-market (GeM) and tendering through e- SPARROW within a very short span of time (i.e. procurement portal. Implementation of Opium container around 03 months) successfully and also created tracking application (OCTA) for smooth sampling and name based email IDs of approx. 800 officials. testing of Opium. 194Department of Revenue III 9. Swachh Bharat Campaign to maintain overall cleanliness & proper ambience of the office premises. Emphasis was also given on curbing 9.1 Revenue Headquarters: single use plastic (SUP) and discourage use of plastic in Department of Revenue under “Azadi Ka Amrut the Department. All the activities relating to Swachhta Mahotsav” has taken several steps as a part of Swachh were undertaken during Swachhta Action Plan 2022-23 Bharat Campaign initiated by Government of India under covering Revenue Headquarters as well as field offices Swachhta Action Plan 2022-23. Various activities were of CBDT & CBIC. undertaken by the Department, viz. Swachhata Pakhwada Department of Revenue also celebrated “Azadi campaign from 16th January, 2022 to 31st January, 2022 Ka Amrit Mahotsav” by undertaking various activities like and Swachhta Campaign and Special Campaign for arrangement of decorative plants in corridors of North Disposal of Pending Matters (SCDPM), 2022 from 2nd Block. Banners/Posters were also displayed in the office October 2022 to 31st October 2022. Many activities were premises. During the Mahotsav, Department has undertaken and images were uploaded on the web portal disposed of e-waste and broken/ old wooden furniture of the Ministry of Drinking Water and Sanitation. The items etc., amounting to Rs. 3.28 lakh during year 2022. Department has been monitoring the implementation of The Department also organized “COVID Vaccination Swachhta Action Plan of all field formations of Central Amrit Mahotsav Camp” for officers and staff on Board of Direct Taxes (CBDT) and Central Board of 25.08.2022 and 23.09.2022. Indirect Taxes and Customs (CBIC). Feedback via video conferencing with Nodal Officers of CBDT & CBIC was 9.2 Central Board of Indirect Taxes & undertaken during Swachhta Pakhwada. During 2022- Customs (CBIC): 23, to encourage cleanliness in the office complexes, awareness drives for maintaining cleanliness with the 9.2.1 Directorate General of Human Resource participation of the officers and employees were Development undertaken in this Department in addition to routine An Information, Education and Communication cleaning, sweeping/mopping of floors/ corridors of all the (IEC) training program regarding behavioural changes rooms including staircases, toilets, open area etc. towards use of plastic and paper and their waste was Sufficient steps were taken to sanitize the rooms/ open organized. A Swachhta campaign for creating awareness areas etc. As a measure of prevention of spread of among people regarding ban on single use plastic and COVID, masks, sanitizers, soap and other safety-related management of plastic waste was also organized. products were distributed to officers/staff of the Department on routine basis, as per the protocol issued 9.3 Directorate of Enforcement by the Ministry of Home Affairs and Ministry of Health & Swachh Bharat Abhiyan launched by the Family Welfare, from time to time. Staff cars allocated to Hon’ble Prime Minister on 2nd October, 2014 is being senior officers were also sanitized regularly to prevent vigorously followed by ED. During the month of spread of COVID-19. October, 2022, a pledge ceremony was organized Special Drive, for weeding out of old records/ across all offices of the Directorate where all the files, disposal of waste material, disposal of officers and staff members took pledge to keep our newspaper waste/ old & written off books, disposal nation ‘Swachh’. Further, various drives have been of e-waste etc., was carried out in the Department. organized including installation of banners for creating Weeding/ recording/ digitization / scanning of old records awareness among citizens and government officials was carried out for optimization of office space. Disposal towards the cause of this “Abhiyan”. Regular inspection of obsolete goods/ e-waste was also carried out regularly of the office premises is also being done. 195Annual Report 2022-2023 196 I - eruxennA sCBO/sTS/sCS fo noitatneserpeR )CIBC( smotsuC dma sexaT tceridnI fo draoB lartneC :noitazinagrODepartment of Revenue III 197 I - eruxennA )TDBC( sexaT tceriD fo draoB lartneC :noitazinagrO )TDBC ,IV .dA :ecruoS( sreciffO 72 tneserp ta ,revewoH .0202 )ESC( noitanimaxE secivreS liviC hguorht detceles setadidnac eht ot TDBC yb deussi erew stnemtnioppA fo reffO * derednet evah 0202-ESC fo sTO 9 ,rehtruF .LOE no era 0202-ESC fo sTO 33 dna rupgaN ,TDAN ta gniniart gniogrednu era 0202-ESC fo )sTO( seeniarT .evoba 5 ot 2 nmuloc ni dedulcni ton era srebmun esehT .ecivres eht denioj ton evah setadidnac 5 dna noitangiseR lacinhceT -es-retni aidnI lla fo rettam eht ni struoc suoirav erofeb noisiced gnidnep ot eud 1202 raey radnelac suoiverp gnirud edam neeb evah stnemtnioppa oN ** erew )92-TS ;55-CS( sOTI 102 latot ,0202 raey radnelac eht ni ,revewoH .edarg TICA ot noitomorp rof edarg redeef a si hcihw ,OTI fo edarg eht ni ytiroines emerpuS elb’noH eht fo 8102.80.92 detad redrO ot tcejbus 0202.21.61 detad 0202 fo 952 .oN redrO eciffO s’TDBC ediv TICA fo edarg eht ni detnioppa .1102/12603 .oN )c( PLS ni truoCAnnual Report 2022-2023 198 I - eruxennA retrauQ daeH euneveR :noitazinagrODepartment of Revenue III 199 I - eruxennA )DNI-UIF( tinU ecnegilletnI laicnaniF :noitazinagrO hcihw tsniaga ,CIN htiw 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 * .2202.11.03 no sa dellif era stsop 52 ,stsop ’A‘ puorG 23 gniniamer eht fo tuO .flesti erdac CIN yb edam era stnebmucni eht fo gnitsop )’C‘ puorG( STM 60 fo tsop eht rof tpecxe noitatuped si tnemtnioppa fo edom ehT :etoNAnnual Report 2022-2023 200 I - eruxennA AMEFAS rednu lanubirT etalleppA ehT :noitazinagrODepartment of Revenue III 201 I - eruxennA ytreporP deriuqcA yllagelli fo erutiefroF rof ytirohtuA tnetepmoC :noitazinagrOAnnual Report 2022-2023 202 I - eruxennA )TATSEC( lanubirT etalleppA xaT ecivreS & esicxE ,smotsuC :noitazinagrODepartment of Revenue III 203 I - eruxennA noissimmoC tnemeltteS xaT ecivreS & esicxE lartneC ,smotsuC :noitazinagrOAnnual Report 2022-2023 204 I - eruxennA scitocraN fo uaeruB lartneC :noitazinagrO seirotcaF fo rellortnoC feihC :noitazinagrODepartment of Revenue III 205 I - eruxennA tnemecrofnE fo etarotceriD :noitazinagrOAnnual Report 2022-2023 206 I - eruxennA yciloP dna ecnaniF cilbuP fo etutitsnI lanoitaN :noitazinagrODepartment of Revenue III 207 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(Annual Report 2022-2023 208 II- eruxennA )TDBC( sexaT tceriD fo draoB lartneC :noitazinagrO )TDBC ,IV .dA :ecruoS( .2202 raey radnelac eht gnirud 0202 noitanimaxE secivreS liviC hguorht detceles setadidnac eht ot TDBC yb deussi neeb evah 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 3 esehTDepartment of Revenue III 209 II- eruxennA retrauQ daeH euneveR :noitazinagrOAnnual Report 2022-2023 210 II - eruxennA )DNI-UIF( tinU ecnegilletnI laicnaniF :noitazinagrO hcihw tsniaga ,CIN htiw 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 * .2202.11.03 no sa dellif era stsop 52 ,stsop ’A‘ puorG 23 gniniamer eht fo tuO .flesti erdac CIN yb edam era stnebmucni eht fo gnitsopDepartment of Revenue III 211 II - eruxennA AMEFAS rednu lanubirT etalleppA ehT :noitazinagrOAnnual Report 2022-2023 212 II- eruxennA ytreporP deriuqcA yllagellI fo erutiefroF rof ytirohtuA tnetepmoC :noitazinagrODepartment of Revenue III 213 II- eruxennA )TATSEC( lanubirT etalleppA xaT ecivreS & esicxE ,smotsuC :noitazinagrOAnnual Report 2022-2023 214 II - eruxennA noissimmoC tnemeltteS esicxE lartneC & smotsuC :noitazinagrODepartment of Revenue III 215 II - eruxennA scitocraN fo uaeruB lartneC :noitazinagrO scitocraN fo uaeruB lartneC :noitazinagrOAnnual Report 2022-2023 216 II- eruxennA tnemecrofnE fo etarotceriD :noitazinagrODepartment of Revenue III 217 II- eruxennA yciloP dna ecnaniF cilbuP fo etutitsnI lanoitaN :noitazinagrOAnnual Report 2022-2023 Annexure - III Summary of important observations included in Audit Reports presented to Parliament during 2022 1. Central Board of Direct Taxes (CBDT) S. Lok No. of Para/PA Details of the Para/PA reports on which ATNs are No. Sabha reports on pending which ATR have been submitted to PAC after vetting by Audit No. of ATR No. of ATR sent No. of ATR not sent by but returned with which have the Ministry observation and been finally even for the Audit is awaiting vetted by the first time their Audit but have resubmission by not been the Ministry submitted by the Ministry to the PAC 1 14 0 0 0 0 2 15 0 0 0 0 3 16 33 0 0 0 4 17 7 27 3 0 Total 40 27 3 0 2. 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 218Department of Revenue III 219 VI - eruxennADepartment of Investment and Public Asset Management IV Chapter - IV Department of Investment and Public Asset Management I. FUNCTIONS for accelerating economic development and augmenting Government's resources for higher expenditure. As per the present Allocation of Business rules, the mandate of the Department is as follows: III. MISSION 1 (a) All matters relating to management of Central (i) List CPSEs on stock exchanges to promote people's Government investments in equity including ownership through public participation and improving disinvestment of equity in Central Public Sector efficiencies of CPSEs through accountability to its Undertakings. shareholders. (b) All matters relating to sale of Central Government equity (ii) To bring in operational efficiencies in CPSEs through through offer for sale or private placement or any other mode strategic disinvestment, ensuring their greater in the erstwhile Central Public Sector 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, one Economic Adviser strategic disinvestment. and one Advisor (Cost). The Department functions on 3. All matters related to Independent External Monitor the Desk Officer pattern and the assigned work is handled (s) for disinvestment and public asset management. at the levels of Joint Secretary, Director/Deputy Secretary 4. (a) Decisions in matters relating to Central Public and Under Secretary. Sector Undertakings for purposes of Government The Organizational Structure of the Department is placed investment in equity like capital restructuring, bonus, at Appendix -I. dividends, disinvestment of government equity and other V. CURRENT POLICY ON DISINVESTMENT IN related issues. 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 sale of entire or Trust of India (SUUTI). substantial Government shareholding of a CPSE along with transfer of management control. The policy on II. VISION strategic disinvestment is based on the economic (i) Promote people's ownership of Central Public Sector principle that Government should discontinue in sectors, Enterprises (CPSEs) to share in their prosperity through where competitive markets have come of age and disinvestment. economic potential of such entities may be better (ii) Efficient management of public investment in CPSEs discovered in the hands of strategic investor due to 221Annual Report 2022-2023 various factors such as infusion of capital, technological broad Strategic Sectors have been delineated based on upgradation and efficient management practices. the criteria of national security, energy security, critical infrastructure, provision of financial services and Government policy on Strategic disinvestment of CPSEs availability of important minerals: was implemented till 2004. However, thereafter, till 2014- 15, disinvestment in CPSE was carried out only through  Atomic Energy, Space and Defense; limited minority stake sale. Since 2016, the Government  Transport and Telecommunication; has substantially overhauled the approach towards  Power, Petroleum, Coal and other minerals; and disinvestment in CPSEs. The policy for strategic disinvestment was revived. The Department was  Banking, Insurance and Financial Services. renamed as Department of Investment and Public Asset In Strategic sectors, bare minimum presence of the Management (DIPAM) with effect from 14th April, 2016. existing public sector commercial enterprises at Holding A comprehensive guideline on "Capital Restructuring of Company level will be retained under Government control. CPSEs" was laid down in May, 2016 for efficient The remaining enterprises in a strategic sector, will be management of Government's investment in CPSEs in considered for privatisation or merger /subsidiarization areas such as, payment of dividend, buyback of shares, with another PSE or for closure. PSEs in non-strategic issues of bonus shares and splitting of share. sectors shall be considered for privatisation, where NITI Aayog was mandated to identify the CPSEs for feasible, otherwise such enterprises shall be considered strategic disinvestment. Till February, 2021 NITI Aayog for closure. identified CPSEs for strategic disinvestment based on Approval of the Government for strategic disinvestment the criteria of (i) National Security; (ii) Sovereign function of a specific PSE shall be taken from time to time, on a at arm's length, and (iii) Market Imperfections and Public case-to-case basis. The timing for specific transactions Purpose. will however, be contingent, inter alia, on the The strategic disinvestment process was modified in 2019 considerations of appropriate sequencing, sectoral to make the process result-oriented and expeditious. The trends, administrative feasibility, investors' interest, etc. new process provides for an Inter-Ministerial Group (IMG) New policy initiative chaired by Secretary, DIPAM & Secretary of Administrative The procedure for Strategic Disinvestment is modified Ministry to drive entire process, while minimizing from time to time to make it more result oriented, and to redundancy and multiplicity of approvals to prevent tackle new challenges. Keeping this in view, the Cabinet dilution of bidder's interest and performance of the delegated certain additional powers to the Alternative CPSEs. The overall process is also overseen by the Mechanism during the year 2022-23. Similarly, the Independent External Monitor (IEM) comprising eminent Cabinet on 18.05.2022 had given approval for persons. empowering the Board of Directors of the Public Sector Thrust on privatization: New PSE policy Enterprises (PSEs) to recommend and undertake the In order to realize the mission of New, Self-reliant India, transactions for Disinvestment (both strategic there was a need to redefine public sector participation disinvestment and minority stake sale) or closure of any in business enterprises and to encourage private sector of their subsidiaries or units or sale of stake in JVs. It participation in all sectors. Against this backdrop, the New was also approved that based on proposal of Board of Public Sector Enterprise ("PSE") Policy for Atmanirbhar CPSE and Administrative Ministry, DIPAM will obtain an " Bharat was approved by Cabinet, on 27th January 2021 in-priniciple" approval of Alternative Mechanism. and was notified on 4th February, 2021. The policy intends Thereafter, the Board of CPSEs can undertake the to minimise the presence of Government in the PSEs process of disinvestment or closure of subsidiaries/units/ across all sectors of economy. JVs based on DIPAM or DPE guidelines. Under New Public Sector Enterprise ("PSE") Policy public Guiding principles for strategic disinvestment/ Minority sector commercial enterprises have been classified as Stake sale of subsidiaries/units/sale of stakes in JVs by Strategic and Non-Strategic sectors. The following four the holding/parent PSE was issued by DIPAM on 222Department of Investment and Public Asset Management IV 14.09.2022. Guiding principles for closure of subsidiaries/ Achievements: Since 2014-15, 17 CPSEs (including LICI) have been listed which yielded Rs 50,385.74 crore. units by their Holding/Parent Public Sector Enterprises During this period, 70.80 lakh retail investors invested was issued by DPE on 31.10.2022. an amount of Rs. 15,813 crore in IPOs of CPSEs. An additional market capitalization of Rs 7.31 lakh crore Minority stake sale (Market-capitalization calculated based on listing price) For some CPSEs, the government carries out minority was achieved through the new listings. At present, 54 Holding CPSEs are listed (excluding public sector banks stake sale without transfer of management control and insurance Companies) with a total market cap of Rs through various SEBI-approved methods, in order to 15.97 lakh crore as on 21.02.2023. The total M-cap of 16 unlock the value, promote public ownership, meet the public sector banks and insurance companies are Rs. minimum public shareholding norms of SEBI and for 13.82 lakh Crore as on 21.02.2023. ensuring higher degree of accountability. The modes of Listing of LIC disinvestment commonly used for minority stake sale The LIC was successfully listed in stock exchanges on include Initial Public Offer (IPO), Offer for Sale (OFS), 17.05.2022 and Government received proceeds of Rs. Buyback of shares etc. These methods play important 20,516.12 crore. The issue received enthusiastic response from the investors and policy-holders. The IPO role in strengthening the capital market through (i) of LIC has been instrumental in galvanizing investor increasing the float of well performing CPSEs (ii) providing interest even when markets worldwide remained on the opportunity to retail investors to participate in an extended edge due to rising geo-political tensions. Listing of LIC range of stocks and bonds and (iii) increasing liquidity added about Rs 5.5 lakh crore to the Indian market. The IPO, which is the biggest ever issue launched in India so and depth of the markets. far, saw around 73 lakhs investors applications from all categories other than the Anchor Investors. This is the highest number of bids in the history of Indian capital VI. DISINVESTMENT PERFORMANCE market. The Issue has been oversubscribed (2.95 times) The various modes of disinvestment are: in all categories including 6.11 times in the policyholder's category and 1.99 times in the retail category.  Initial/Further Public Offer (IPO/FPO) Apart from creating investment opportunities for the  Exchange Traded Fund people, the LIC IPO, in view of sheer volume of applicants  Offer for sale (OFS) and investors, also brought about a great deal of structural  Buyback of shares and systemic improvement in the Indian markets through:  Strategic Disinvestment  Process and system changes to enable multiple Sponsor Banks at Stock Exchanges A. Performance: Minority Stake Sale  System readiness and capacity to achieve higher i. Initial Public/Further Offer IPO/FPO Transaction per second in stock exchanges Public Offer: When an issue / offer of shares or convertible (TPS) securities is made to new investors for becoming part of  Addition of CPU & memory and dedicated shareholders' family of the issuer, it is called a 'public multiple servers issue'. Public issue can be further classified into Initial  Depositories and Bank Clearance Process public offer (IPO) and Further public offer (FPO). The Calibrated for Large Volumes significant features of each type of public issue are illustrated below:  UPI Mechanism for Policyholder and Employee Category a) Initial public offer (IPO): When an unlisted company  API based integration of depositories with stock makes either a fresh issue of shares or convertible exchanges securities or offers its existing shares or convertible securities for sale or both for the first time to the public, it  30 lakh emails were sent within one hour of the is called an IPO. This paves way for listing and trading of share allocation process the issuer's shares or convertible securities on the Stock  Creation of policy-holders category in all bidding Exchanges. terminals. b) Further public offer (FPO): When an already listed The IPO of LIC made the organization to adopt the state company makes either a fresh issue of shares or of the art techniques for calculation of embedded value convertible securities to the public or an offer for sale to as well as interacting regularly with the minority the public, it is called a FPO. stakeholders to protect their interests. 223Annual Report 2022-2023 ii. Buyback of shares Achievements : After listing, further disinvestment by OFS mechanism yielded Rs 1,10,293 crore through Buyback is the repurchase by a company of its shares 60 transactions in last eight years (As on 03.03.2023). from the existing shareholders that reduces the number This included the largest OFS of over Rs. 22,000 crore of its shares in the open market. in case of Coal India Limited in January, 2015. Objectives: Companies buy back their shares for a During the current financial year (As on 03.03.2023), OFS number of reasons: of ONGC, IRCTC and PPL have been concluded yielding a) To increase the value of shares held by Rs.3058.78 crore, Rs.2724 crore and Rs.497.27 crore promoters. respectively. Sale of shares of Axis Bank through SUUTI has yield Rs.3838.99 crore in current FY. The CCEA on b) To eliminate any threats by minority shareholders 25.05.2022 has approved DIPAM's proposal for stake sale who may be looking for a controlling stake. of Governments residual (29.54%) in Hindusthan Zinc c) For CPSEs, buyback is a tool for Govt. of India Limited (HZL) through SEBI approved methods in the to disinvest the equity held by GoI in CPSEs and open market. to make proper utilization of idle cash left with iii. Exchange Traded Fund CPSEs. Through various offers of CPSE-ETF and Bharat-22 ETF, d) As per DIPAM guidelines dated 27.05.2016 the Govt. could realize disinvestment proceeds of Rs.98,949 criteria for identifying potential buyback cases are crore since 2016-17. However, there is now limited scope as under: of disinvestment through existing ETF window as many  CPSE with net worth of Rs. 2,000 crore and underlying Stocks in CPSE-ETF and Bharat-22 ETF have cash and bank balance of Rs. 1,000 crore reached close to 51% level of GOI equity or some stocks should mandatorily go for buyback. in the ETF basket are no longer available for disinvestment due to strategic disinvestment or other  Other CPSEs may also go for buyback, based reasons. Also, there has been concern that large and on the merits of each case. repeated tranches of Equity ETF were acting as a Achievements : In order to make the use of idle cash disincentive for investors in PSU stocks due to price lying with CPSEs and for improving the Earning per share, overhang. Therefore, Government has now decided to Govt. has used buyback method effectively. During the pause employing Equity ETFs as a tool for minority stake last eight years, disinvestment proceeds of Rs 45,104 sale. crore (as on 03.03.2023) were realized from buyback of B. Performance in Strategic Disinvestment shares by 45 CPSEs. During the current FY, buyback of GAIL was carried out and Government realised Rs. The Government, since 2016, has given 'in-principle' 497.27 crore from the transaction. approval for strategic disinvestment of 36 cases of CPSEs and/or Subsidiaries/ Units/ Joint Ventures of CPSEs/ iii. Offer for Sale (OFS) Bank. Out of the 36 cases, 33 cases are being handled Offer for sale (OFS) is a simpler method of sale of shares by DIPAM and 3 cases are being handled by the through the exchange platform for listed companies. The respective Administrative Ministry/Department. Out of the mechanism was first introduced by SEBI in 2012, to make 33 cases being handled by DIPAM, strategic it easier for promoters of publicly-traded companies to disinvestment transactions have been completed in 10 cut their holdings and comply with the minimum public cases; 5 CPSEs are under consideration for closure; 1 shareholding norms by June 2013. The method was case held up due to litigation,1 case is under Corportate largely adopted by listed companies, both state-run and Insolvency Resolution process (CIRP) in NCLT 2 cases private, to adhere to the SEBI norms of minimum public are not feasible. Remaining 14 transactions are at various shareholding. Government often used this route to divest stages. The details are given at Annexure-I. its shareholding in CPSEs. Privatization of Air India: Privatization of Air India was Salient features of OFS: completed on 27.01.2022. M/s Talace Pvt Ltd, a wholly  simple to execute owned subsidiary of M/s Tata Sons Pvt Ltd was the successful bidder with a bid of Rs 18000 crore which  market-driven includes Rs 2700 crore as cash consideration and Rs  Govt. continues to retain management control 15,300 crore as debt component. Air India had received more than Rs.1 lakh crore Government support since  Cost-effective 2009-10 and yet continued to be in huge losses. At the  Time efficient (completed in 2 trading days) time of disinvestment, Air India was suffering loss of Rs.20  Transparent allocation based on price-parity crore per day and had to be supported by the Government basis. using taxpayers' money. Privatization of Air India will 224Department of Investment and Public Asset Management IV improve performance and productivity of the airline and VII. OTHER INITIATIVES help to rejuvenate the aviation sector of the country (i) Launch of Bharat Bond ETF Privatization of NINL Privatization of NINL was completed Bharat Bond ETF comprising of AAA rated CPSEs, was on 4.07.2022. M/s Tata Steel Long Products Limited was launched in December 2019 which was the first the successful bidder for 93.71% of shares of Neelachal Ispat Nigam Ltd (Joint Venture partners of 4 CPSEs and instrument of its kind based on high-quality public-sector 2 Odisha Govt State PSEs) at the Enterprise Value of bonds. Tranche -I of Bharat Bond ETF launched in Rs. 12,100 crore. The transaction sets the stage for large December, 2019 raised over Rs. 12,400 crore. Tranche- scale investment in the steel sector in Odisha. : Before II of BHARAT Bond ETF was launched in July, 2020 strategic disinvestment, the company was running in huge raising over Rs. 11,000 crore Tranche III was launched losses and plant was closed since 30.3.2020. The in December, 2021 raising over Rs. 6,200 Cr. employees were not getting salaries.The closed blast furnace has now been restarted within three months of The three tranches received huge response from all privatization, reflecting turnaround in operations. sections of investors especially retail investors. Asset Under Management (AUM) for the Bond ETF market has C. Disinvestment Targets & achievements grown to around Rs 65,903 crore (as on 31.01.2023) out The B.E for disinvestment proceeds for the year 2022- of which about 85% is accounted for Bharat Bond ETF 23 was fixed at Rs.65,000 crore. The RE for (around Rs. 55,901 crore as on 31.01.2023). Provided disinvestment proceeds for the year 2022-23 has been opportunity to retail investors to access bonds with kept at Rs. 50,000 crore. So far, Government has received smaller amount (as low as Rs 1,000) while helping CPSEs Rs. 31107 crore (as on 03.03.2023) from disinvestment mobilize debt at reduced cost. Based on this model, many of CPSEs through IPO, Offer for Sale and buyback of Bond-ETFs based on G-Sec, State Development Loans shares etc. (SDLs) and Corporate Bonds have come to the market. Target (BE) No. of Target (RE) Actual Year (In Rs. Transactions After the successful launch of three tranches with an AUM (In Rs. crore) (In Rs. crore) crore) of Rs. 50,000+ Cr., the fourth tranche BBETF - 2033 of 2014-15 43,425 26,353 24,349 8 BHARAT Bond ETF with 10+ years maturing in April 2033 2015-16 69,500 25,313 23,997 9 launched on 2nd December 2022 and ended on 8th December 2022. The April 2033 issue of BHARAT Bond 2016-17 56,500 45,500 46,247 21 ETF has been oversubscribed 2.8 times against the base 2017-18 72,500 1,00,000 1,00,057 36 issue size of Rs. 1,000 cr. The total Rs 2800 crore was 2018-19 80,000 80,000 84,972 28 raised against the base issue size of Rs.1000 crore. 8 2019-20 1,05,000 65,000 50,300 15 CPSE namely PFCL, IRFC, REC, NABARD, HUDCO, 2020-21 2,10,000 32,000 32885 18 NTPC Limited, HPCL, and NPCIL are expected to 2021-22 1,75,000 78,000 13534 10 participate and issue bonds. 2022-23 65,000 50,000 31107* 9 (ii) Guidelines on Investment of Surplus Funds by *as on 03.03.2023 CPSEs. Disinvestment Receipts FY 2022-2023 (as on 03.03.2023) DIPAM brought out the revised Guidelines on Investment of Surplus Funds by CPSEs on 5.12.2022 with the Method of Receipts S. No Name of CPSEs Disinvestment (in Rs. Crore) approval of the Finance Minister after inter-Ministerial 1 ONGC OFS 3059 consultations. 3 LIC IPO 20516 (iii) Asset Monetization (Non -core land of CPSEs) 4 PPL OFS 472 5 GAIL BB 497 Government approved setting up set up a Special 6 NINL# SD 0.00 Purpose Vehicle named National Land Monetization Others (Sale of Axis Corporation (NLMC) as a wholly owned Government of 7 Bank Shares held by OTHERS 3839 India company with an initial authorized share capital of SUUTI) Rs 5000 crore and paid-up share capital of Rs 150 crore. 8 IRCTC OFS 2724 NLMC will undertake monetization of surplus land and Total Sum 31107 building assets of Central Public Sector Enterprises # NINL was a Joint Venture company, in which 4 CPSEs namely (CPSEs) and other Government agencies.Going forward, Department of Public Enterprises (DPE) has been MMTC, NMDC, BHEL and MECON and 2 State PSUs of Odisha mandated to oversee Non-core land monetization of Government; namely IPICOL and OMC were share-holders. GOI holds CPSEs. no equity in NINL.The highest bid of M/s Tata Steel Long Products (iv) Monetization of Enemy Shares Limited for 93.71% of shares of Joint Venture partners of 4 CPSEs and 2 Odisha Govt State PSEs at the Bid Enterprise Value of Rs. Cabinet in its meeting on 8th November, 2018 approved the procedure and mechanism for disposal of Enemy 12,100 cr. was accepted by the Government. 225Annual Report 2022-2023 Shares, which is also being handled by DIPAM. As per successful and as a result, CPSE indices have the enemy shares provided by CEPI MHA, more than significantly improved over the last year, beating the 99.6% shares have been sold. As on 19.01.2023, total matching the benchmark Sensex. The significant rise in shares of value of Rs. 2709.11 crore have been sold and dividend payouts by CPSEs has also encouraged the proceeds have come back to GoI. investors to invest in CPSE stocks. VIII. CHALLENGES TO DISINVESTMENT X INITIATIVES UNDERTAKEN FOR PERSONS WITH The first and second wave of COVID 19 had a serious DISABILITIES, SCHEDULED CASTES, impact on disinvestment transactions in 2020 and 2021. SCHEDULED TRIBES AND OTHER BACKWARD Several officers of the Department, other concerned CLASSES: Departments in the Inter-ministerial Committees and The staff strength in the Department along with Transaction and Legal Advisers and their family members representation of Scheduled Castes, Scheduled Tribes, got infected. Coupled with pandemic induced uncertainty Persons with disabilities and Other Backward Classes is in financial markets, geo-political tensions resulting from given in Appendix -II. Ukraine conflict (since February 2022) adversely impacted global supply chain with a cascading impact XI INITIATIVES RELATING TO GENDER on various sectors like oil and gas, metals, agriculture BUDGETING AND EMPOWERMENT OF WOMEN etc in various countries including India. This posed The nature of allocated work of the Department does not significant challenges before the disinvestment efforts have any scope for gender budgeting and empowerment of the government, both for minority stake sale and of women. strategic disinvestment, as financial capacity and risk- reward options of potential bidders turned worse. XII OFFICIAL LANGUAGE POLICY Apart from the global challenges, strategic disinvestment The Department has a full-fledged Official Language Unit transactions have to deal with matters such as resolving to implement the Official Language Policy. The website land title, lease and land use issues with State Govt of the Department is bilingual. authorities, disposal of non-core assets, excess XIII E-GOVERNANCE manpower and labour unions, protection of process and functionaries etc. Multiple Court cases filed by the As a part of good governance through the use of employees' unions and other interest groups against information technology, the following initiatives have been disinvestment policy of the government and also specific taken: transactions also act as a hindrance. Any of these issues  Website of the Department (www.dipam.gov.in) is may impact the transaction time-line. updated on a regular basis, in both English and Hindi. Challenges to disinvestment through Minority Stake Sale The website is compliant with the Guidelines for include reduced availability of government stake over Indian Government Websites (GIGW). 51% for large listed CPSEs; relatively muted perception  Maintenance of the Payroll Package of investors in CPSE stocks as compared to private sector peers; price overhang in the market due to high  Implementation of e-Office disinvestment target and frequent use of ETF route for  Following web based monitoring systems are in stake sale till 2019-20. place: Rajya Sabha Question, Answer Monitoring IX. DIVIDEND RECEIPTS System and Lok Sabha Question, Answer Monitoring System Dividends from CPSEs form an important component of non-tax receipts. Total dividend receipts from CPSEs in  Centralized Public Grievance Redress and FY 2021-22 stood at Rs 59,168 crore, which exceeds Monitoring System (CPGRAMS) the Revised Estimate (RE) of Rs 46,000 crore, and is  Centralized Tender/Procurement Monitoring System. more than actual dividend receipts (Rs 39,750 crore) Tenders are regularly put on the website and e- during the previous financial year. Total dividend receipts Publishing in e-procurement portal is being done this FY stands at Rs 49,282 crore (as on 03.03.2023). regularly. Consistent Dividend Policy was framed by DIPAM (in  Representations of Reserved Categories in Posts November 2020) for ensuring predictability in dividend and Services in Government of India (RRCPS) payment by companies. A predictable dividend regime Monitoring System (SC/ST Commission Portal). would help revive investor interest and improve market sentiments for CPSE stocks as predictability in regular  APAR Monitoring system for IAS Officers (JS level & dividend payment would attract quality investors to CPSE above), CSS/ CSSS Officers (All levels). stocks and retain them in the hope of a future dividend.  Cadre Management System (for CSS Officers). Government will also get predictable and periodic dividends as interim dividend. This policy has been  Pension Portal 226Department of Investment and Public Asset Management IV  Use of GeM portal XVII INITIATIVES FOR GOOD GOVERNANCE  Quarterly Rolling Plan As per the mandate provided by the Government of India  Data Portal (Data.gov.in). (Allocation of Business) Rules, 1961, the Department is not involved in the delivery of any public services and XIV REDRESSAL OF PUBLIC GRIEVANCES thus, does not have any direct interface with the citizens The Department is using the Centralized Public Grievance or public at large. However, the Department has initiated Redress and Monitoring System (CPGRAMS). The the following measures as a part of good governance: website of the Department also has an in built mechanism Timelines have been prescribed for disposal of for receiving grievances from public. A Joint Secretary transaction related bills to avoid delay and any scope of has been designated as Nodal Grievance Officer and Additional Secretary has been nominated as Nodal corruption as also to promote good governance. The Appellate Authority for the purpose. following measures have also been implemented in the Department for promoting good governance: Internal Complaints Committee on Sexual harassment of women employees (a) Special Campaign 2.0 : The Special campaign 2.0 was undertaken with full enthusiasm focusing on disposal In compliance with Supreme Court's Judgement dated of pending references in the identified categories, 13th August, 1997 in Visakha case relating to prevention reviewing/ weeding out of files, disposing of old unusable of sexual harassment of women at work place, an internal articles and digitization of records. During the Campaign complaints committee has been put in place for the progress was regularly uploaded on the 'SCDPM' considering complaints of sexual harassment of women portal and the pendency was brought down to the employees in Department of Investment and Public Asset minimum level almost in all categories. DIPAM has no Management (DIPAM). attached/ sub-ordinate office under its administrative XV VIGILANCE MACHINERY control. An Additional Secretary has been designated as part- (b) Monitoring of Court Cases: Monitoring of Court time Chief Vigilance Officer in the Department. cases in DIPAM are now being done in Legal information XVI RIGHT TO INFORMATION ACT, 2005. briefing System 2.0 (limbs 2.0). Joint Secretary (Admn) has been nominated as Nodal Officer of limbs portal of In order to facilitate dissemination of information under DIPAM and DD/US/DS level officers of every Division the provisions of the Right to Information Act, 2005, the have been designated as limbs user by Nodal officer of following initiatives have been taken by the Department: DIPAM for the purpose of entry, updation and transferring (i) An RTI Cell has been set up to collect, transfer the of court cases in limbs portal. Therefore, the status of applications under RTI Act, 2005 to the Central Public pending court cases are monitored regularly at the users Information Officers/ Public Authorities concerned level in the divisions of the Department through limbs and to submit the quarterly returns regarding receipt portal. and disposal of the RTI applications/ appeals, to the Central Information Commission. (c) Capacity Building of DIPAM Officials/staff: DIPAM collaborated with the Capacity Building Commission and (ii) Details of functions of the Department along with its formulated a training module suitable for developing a functionaries etc. have been placed on Department's skillset amongst the staff coming to DIPAM from varied website (www.dipam.gov.in) in compliance with fields/experiences. In pursuance, as a first instance, ISB Section 4(1)(b) of the RTI Act and is updated from was engaged as per the suggestions of the Capacity time to time. Building Commission to upskill the existing staff posted (iii) One Under Secretary has been designated as the in DIPAM in developing a three-module training course. Nodal Central Public Information Officer and 1 Deputy First module was organized online giving basic accounting Directors, 1 Assistant Director and 9 other Under and financial management training. Second module was Secretaries as Central Public Information Officers organized as a four days residential training. In the third, under Section 5(1) of the Act, in respect of subjects module, the staff worked on different projects related to handled by them. disinvestment and public asset management. These (iv) 1 Joint Secretary, 7 Directors, 1 Joint Director and 3 projects have been reviewed by the ISB team online and Deputy Secretaries have been designated as First offline. The Capacity Building Unit (CBU) in DIPAM has Appellate Authorities in terms of Section 19(1) of the been constituted on 28.11.2022. Training of 13 officers Act for all matters relating to their Divisions. from DIPAM was conducted at NSE Academy, Mumbai 227Annual Report 2022-2023 as a part of the Capacity Building Programme on 1-2 XVIII AUDIT PARAS/OBJECTIONS December, 2022. Meeting of CBU was held on No CAG or PAC paras/Objections are pending in the 15.12.2022 under the chairmanship of Secretary, DIPAM Department. the chairmanship of Secretary, DIPAM to discuss the XIX INTEGRATED FINANCE UNIT Annual Capacity Building Programme for DIPAM officers. A meeting was held by Secretary, DIPAM with Member The Integrated Finance Unit works under Additional (Admn), Capacity Building Commission and Deolitte Secretary & Financial Adviser (Finance) and deals with representatives on 16.12.2022 to discuss the Annual expenditure and Budget related proposals of Grant No. Capacity Building Programme for DIPAM officers. DIPAM 34 - Department of Investment & Public Asset specific training will be encapsulated to help officials to Management - which includes Secretariat General learn easily through audio/visual modules, in line with the Services covering the establishment budget for the Karmyogi mission, for future use. Department of Investment & Public Asset Management. The budget allocation under Grant No. 34 is as under: - Grant No. Budget Estimates 2022-23 Revised Estimates 2022-23 Plan Non-Plan Total Plan Non-Plan Total 32 - Department of ---- 290.42 290.42 ---- 197.06 197.06 Investment & Public Asset Management The Integrated Finance Unit monitors all financial and country to commemorate the Azadi ka Amrit Mahotsav. expenditure related proposals of the Department like The Conference was addressed by the Finance Minister appointment of consultants, foreign deputation/visits of as part of the celebrations. The objective of the officers etc. The expenditure trend of the Department is Conference was to encourage and educate the general consistently monitored by the IF Unit. All budget related public and the potential investors on ways to benefit from matters including issues concerning Standing Committee the capital market. on Finance come within the purview of this unit. Post address of the Finance Minister, the function continued in all local venues with local Speakers/ experts giving speeches and taking part in the interactive session XX PARTICIPATION IN 'AZADI KA AMRIT with the attendees on various topics related to investment MAHOTSAV' (AKAM) in stock market, risk mitigation etc. A short movie in 11 A Conference on the theme "Creating Wealth through regional languages prepared to showcase DIPAM's Market" was organized by DIPAM on 10.06.2022 as an activities and related theme was also shown in all the 75 iconic event in 75 cities (including New Delhi) across the venues in local languages. 228Department of Investment and Public Asset Management IV Annexure-I List of PSEs and/or Subsidiaries/ Units/ Joint Ventures of PSEs and Bank for which Government has given 'in-principle' approval for strategic disinvestment since 2016. 1. Ongoing Transactions being processed by DIPAM S. No. Name of PSE 1. BEML Limited 2. The Shipping Corporation of India Limited 3. HLL Lifecare Limited 4. Project & Development India Limited 5. Ferro Scrap Nigam Limited (subsidiary) 6. Indian Medicines Pharmaceuticals Corporation Limited 7. Container Corporation of India Limited 8. Rashtriya Ispat Nigam Limited 9. NMDC Steel Limited (NSL) (a) Bharat Petroleum Corporation Ltd (except Numaligarh Refinery Limited) @ 10. (b) BPCL stake in Numaligarh Refinery Limited to a PSE strategic buyer $ 11. Pawan Hans Limited 12. Central Electronics Limited (CEL)## Alloy Steel Plant, Durgapur^; Salem Steel Plant; Bhadrawati Steel Plant@ - units of Steel Authority of 13. India Limited 14. IDBI Bank @ EoI process called off due to lack of sufficient Bidder's interest to proceed. $ Transaction completed. ^ Transaction halted for the time being. ## Successful bidder disqualified and transaction has been terminated. 2. Transactions being processed by respective Administrative Ministries S. No. Name of PSE 15. Various Units of India Tourism Development Corporation Limited 16. Hindustan Antibiotics Limited 17. Bengal Chemicals & Pharmaceuticals Limited 3. Transactions halted as the PSEs recommended / approved for closure; or any other reason S. No. Name of PSE 18. Hindustan Fluorocarbons Limited (subsidiary)** 19. Scooters India Limited** 20. Bharat Pumps & Compressors Limited** 21. Hindustan Prefab Limited 22. Units of Cement Corporation of India Limited (Nayagaon Unit) # ** Government approved for closure of the Company. # Transaction not feasible and the mines are being returned to the State Governments 229Annual Report 2022-2023 4. Transactions held up due to litigation S. Name of PSE No. 23. Karnataka Antibiotics & Pharmaceuticals Limited 5. Under Corporate Insolvency Resolution Process (CIRP) in NCLT S. Name of PSE No. 24. Hindustan Newsprint Limited (subsidiary)*** ***Resolution Plan of Kerala Industrial Infrastructure Development Corporation (KINFRA) approved by the NCLT, Kochi vide order dated 29.01.2021 is under implementation at present. 6. Transactions not Feasible S. Name of PSE No. 25. Engineering Projects India Limited 26. Bridge & Roof Company (India) Limited 7. Completed Transactions S. PSE No. 27. Hindustan Petroleum Corporation Limited (HPCL) 28. Rural Electrification Corporation Limited (REC) 29. HSCC(India) Limited 30. National Projects construction corporation Limited (NPCC) 31. Dredging Corporation of India Limited (DCIL) 32. THDC India Limited (THDC) 33. North Eastern Electric Power Corporation Limited (NEEPCO) 34. Kamrajar Port Limited 35. Air India^^ 36. Neelachal Ispat Nigam Limited (NINL) ^^Subsidiaries which are now with AIAHL are still to be divested 230Department of Investment and Public Asset Management IV 231 trahC noitasinagrOAnnual Report 2022-2023 232 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 duplicate drafts, misbehaviour/rude behaviour/ harassment on the part of staff of the Institution, non- 1.1 Banking Operation-I (BO-I) settlement/delay in settlement of deceased accounts, non-transfer/delay in transfer of accounts from one office Appointment of Governor/Deputy Governor of to another, non-opening/delay in opening of new RBI, Chairman & MDs of SBI, CMDs and EDs of accounts, non-compliance with standing instructions of Nationalised Banks, salary allowances and other terms the customers, non-payment of term deposits before and conditions of Whole Time Directors of PSBs. maturity, delay in payment to pensioners, including those Constitution of Boards of Directors of RBI and PSBs: related to credit cards, ATMs, etc. All kind of complaints appointment of Workmen Employee Directors, received from DARPG/DPG relating to Public/ Private appointment of Part Time Non-Official Directors and Sector/Foreign Banks/FI/Ins. Officer Employee Directors of PSBs. Nomination of Directors on the Board of PSBs. All kinds of complaints received from MPs/VIPs /PMO against Private Sector & Foreign Banks. Banking 1.2 Banking Operation-II (BO-II) Customer Service. Banking Ombudsman. Coordination Administration of all Acts/Regulations/Rules of PRAGATI meetings. related to Financial Systems like the Negotiable 1.4 Banking Operation & Accounts-I (BOA-I) Instruments Act, 1881, the Chit Funds Act, 1982 and the Price Chits and Money Circulation Schemes (Banning) Preparation of annual consolidated review on the Act, 1978, etc., Banning of Unregulated Deposit Scheme working of Public Sector Banks (PSBs) and laying it on Act, 2019, Deposit Insurance and Credit Guarantee the Tables of both Houses of Parliament. Pattern of Corporation (DICGC), Act, 1961. Coordination of work accounting and final accounts in Public Sector Banks. on matters related to Disaster management and crisis Study and analysis of the working results of PSU Banks. management, Payment and Settlement System Act, 2007 Taxation matters of PSBs/FIs. Dividend payable to Central and matters relating to Digilocker, wherein the proposal Government by PSBs. Scrutiny of the annual financial is to enable the updation of the address of the account- reviews of PSBs conducted by RBI under Section 35 of holder in banks. Disposal of appeals received under the Banking Regulation Act, 1949 and follow up action. section 9 of the Payment and Settlement Systems Act, Capital restructuring of PSBs (including restructuring of 2007. Factoring Regulation Act, 2011. State Legislations weak PSBs) and Government’s contribution to share – Protection of Interest of Depositors Acts of State capital, public issue of banks. Release of externally aided Governments. grants to ICICI Bank under USAID. Disputes and arbitration between PSBs and between PSBs and other Matters relating to Multi-Level Marketing and Govt. Departments/PSEs. Appointment of advocates in Ponzi Schemes. Setting up of IFSC – GIFT. International Relations (Banking) / Bilateral issues. International PSBs. Residuary matters of Portuguese Banks in Goa. Cooperation in. WTO, RCEP, JCCII and CEPAs/CECAs/ Opening and shifting of administrative offices of banks. FTAs of India with bilateral and multilateral partners. All Policy matters related to Banking Operation Matters relating to Financial Sector Development Council such as Licensing, amalgamation, reconstruction, and its Sub-committees. Matters relating to Central moratorium funds, and acquisition of private sector banks. Economic Intelligence Bureau (CEIB). Matters relating Functioning of PSBs. Notification regarding exemption to office of Court Liquidator, Kolkata. Work relating to from various sections of the Banking Regulation Act, 1949 Government Agency Business. Financial Action Task and appointment of appellate authority to hear appeals Force (FATF). Setting up of Currency Chest by banks in under BR Act and Banking Companies (Acquisition and border districts (within 80 KMs of International Border). Transfer of Undertakings) Act of 1970 and 1980. Rationalization of Bank Holidays / declaration of bank Administration of all Acts/ Regulations/ Rules related to holidays under section 25 of the Negotiable Instruments Public Sector Banks, RBI and State Level Banks. Laying Act, 1881. Know Your Customer (KYC) all matters – AML and CFT matters. of annual reports and audit reports etc., of PSBs in Parliament. 1.3 Banking Operation-III (BO-III) 1.5 Banking Operation & Accounts-II (BOA-II) Customer Service in Banks/FI/Ins.All kinds of complaints/representations received from individual/ Credit Information Companies (CICs). Works associations for redressal of their grievances in these relating to monitoring of NPAs and Recovery including institutions such as delay in clearance of cheques, non- compromises and OTS of all PSBs. Parliament matters, payment/non-issue of drafts, non-issue/delay in issue of VIP/PMO references, complaints and other matters 233Annual Report 2022-2023 relating to above works. All matters related to NPA/ 1.8 Financial Inclusion (FI) Stressed Assets (other than Sectoral Stress), including Work relating to financial inclusion, coordination relief measures by banks in area affected by natural with other sections, offices, institutions etc on Financial calamities. Stressed Assets Stabilization Fund (SASF). inclusion. Branch expansion of banks. Lead Bank Audit of banks, appointment and fixation of remuneration Scheme and Service Area Approach. District and State of auditors of PSBs/FIs. Bank guarantees, Letters of Level Bankers’ Committee (SLBC). Regional imbalances Credit and Letters of Undertaking / Comfort by PSBs and of banking network, matters related to Business related complaints. Citizen’s Charter of PSBs/RBI. Correspondents/Business Facilitators, Mobile Banking Acquisition/Leasing/Renting/Vacation of premises, Estate etc., matters relating to e-Governance in all FIs and e- Officers under Public Premises Act, 1971. Operation of Payments in banking system and computerisation of foreign banks in India (including IDC and FDI Policy PSBs. Matters relating to Payment Regulatory Board matters). Banking Sector Reforms (including EASE Index (PRB) constitution and matters related to PRB. Matters and PSB Reforms Agenda). NBFCs and Appellate relating to Minimum deposit balance, cash handling & Authority on NBFCs. Operational risk management (other digital payment charges; On-boarding of merchants on than cyber-security and digital payments security), digital payment platforms other than cards. Banking including frauds and fugitive offenders. Administration of matters relating to digital payment platforms; Pradhan all Acts/Regulations/Rules related to NBFCs and CICs. Mantri Jan Dhan Yojana (PMJDY), Mission Office. All Statement of Intent / Key Performance Indicators / matters related to Stand Up India (SUI). Performance evaluation of whole-time Directors. 1.9 Industrial Relations (IR) Insolvency Bankruptcy Code (IBC). Overseas branches of Indian banks. Service matters of PSBs including IDBI/ RBI, Pension matters of NABARD. Industrial Disputes Act 1.6 Agriculture Credit (AC) matters, HR matters relating to PSBs and RBI Unions Credit flow to Agriculture and allied sectors. and Associations in the Banking Industry, Bipartite Agricultural Debt Waiver and Debt Relief Scheme, 2008. settlements of policy of transfer, promotion, and HRD in Matters relating to NABARD (except pension matters), banks. IB reports about political activities of bank employees. Pay and Allowances of bank employees in Agriculture Finance Corporation (except Service matters), overseas branches. HR Reforms. State Legislations on the subject, Co-operative Banks (including Urban Co-operative Banks), external aided 1.10 Coordination (Coord.) projects relating to rural/agriculture credit, appeals made by co-operative banks, financial assistance to persons Organisation of FM’s meetings with CEOs of affected by natural calamities, riots disturbances, etc. PSBs and regional consultative committee meetings. Staff Meeting of Secretary (FS)/ Senior Officers Meeting Bank credit to KVIC, handloom and handicraft sector. (SOM). Monitoring & Review of disposal of VIP Citizen Charter of NABARD. Appointment of CMDs & references, PMO references, coordination of RBI pending Directors of NABARD. Kisan Credit Card (KCC) Scheme. matters. Parliament Questions related to VIP references. Secretarial assistance to the designated appellate Monthly DO letter to Cabinet Secretary from Secretary authority in regard to appeal by Urban Cooperative banks (FS). Appointment of CPIOs, ACPIOs, AA and Nodal against cancellation of license by RBI. Section for RTI matters of DFS and to deal with CIC for 1.7 Regional Rural Banks (RRB) Annual Report etc. Updation of Induction Material for DFS; Co-ordination of VIP, PMO, President-Sectt.etc., Legislative matters with regard to RRB Act, 1976 references involving more than two Divisions of DFS. and framing of rules there under. Nomination of non- official directors on the Board of RRB, appointment of 1.11 Establishment (Estt.) Chairman, Recommendation of RRBs, review of Matters pertaining to the Officers and Staff of DFS performance of RRBs, wage revision, manpower including RRs, appointment, ACRs, deputation (including planning. Laying of Annual Reports of all RRBs along abroad), training, IWSU, SIU, welfare, review of officers with review thereof. Formation of Staff Service Regulation under FR 56(J), internal vigilance, staff grievances, and Promotion Rules for employees and officers of RRBs, pension, etc. Grant of various advances to officers and IR matters of RRBs. Citizen’s Charter of RRBs. Priority staff, payment of fees to advocates, settlement of medical Sector Lending, Micro Finance and other related matters claims and CGHS matters, family welfare programme. which includes lending to weaker sections including SC/ 1.12 General Administration (GA) ST, PM’s New 15 Point Programme for the Welfare of Minorities, Credit to minorities, follow up action of Select Housekeeping/Security matters, cleanliness, Parameters recommended by Sachar Committee, DRI stores, canteen, R&I, library. Staff Car Drivers, vehicles Scheme. to the officers of DFS. Purchase of Computer Hardware 234Department of Financial Services V and maintenance of Computers, Printers and other Deposits and advances of banks. Rates of interest on equipment’s. Maintenance of furniture and electricity bank deposits and advances. Dissemination of results items. Logistic support for arranging farewell of staff of and important information relating to RBI, IBA, studies DFS. Providing of Identity Cards to the Staff of DFS and on banking reforms. Analysis of other international reports CMDs/EDs/PROs of Public Sector Banks/Financial relevant to banking sector in India. Analysis of Reports Institutions/Insurance companies, etc. of committees on Financial Sector Reforms etc. Management Information System - collection, collation 1.13 Parliament of data relating to Banking Industry. Result Framework Collection, identification and marking of Document (RFD), Speeches of FM/MOS on different Parliament Questions, Notices, admitted Questions, and occasions. Audit Paras. UN e-Government Index & Digital getting the files approved from the Minister. Preparation Services. Work related to committee of Financial Sector of facts and replies for pads of Ministers. Keeping track Statistics. Coordination of budget proposals of DFS. and record of pending Assurances, Special Mentions and Matters related to Budget Announcements, Output- References under 377 and other matters as mentioned outcome Monitoring Framework. Sustainable in the Induction Material. Presidential address to the Joint Development Goals – Indicators pertaining to DFS. Session of Parliament. Compilation and submission of 1.18 Industrial Finance-I(IF-I) material for Parliament Questions to other Ministries/ Departments. Parliamentary Committee Matters, etc. Administration of the Export-Import Bank Act- 1981 and Scheme for financing Viable Infrastructure 1.14 Hindi Projects (SIFTI) of IIFCL, Operational/Policy/Budgetary Implementation of Official Language Policy of the matters relating to Exim Bank, IIFCL, IWRFC and IIBI Government.Translation work relating to Parliament Ltd. Matters related to IFCI Ltd, IDFC Ltd, winding up Questions. Standing Committees, Minutes of the matter related of IIBI Ltd, and other related matters. Board Meetings. Hindi Teaching Scheme and other level Appointments-Whole Time Directors- IIFCL, EXIM, 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 infrastructure, power, textiles, exports; steel, telecom, Matters relating to recruitment, promotion and road, shipping (added) etc. matters related to sectoral welfare measures of SC/ST/OBC/PH and Ex-servicemen issues. Laying of annual reports of IIFCL, EXIM Bank, in Public Sector Banks/Financial Institutions and Public IFCI Ltd and Liquidator’s report of IIBI Ltd. Before the Sector Insurance Companies (PSBs/FIs/PSICs). Matter Parliament. of policy regarding reservation for these categories in PSBs/FIs/PSICs, reservation matters in RRBs etc. Matters related to Ratnagiri Gas and Power Pvt. Inspection/examination of Reservation Roster for SCs/ Ltd (RGPPL). Citizen’s Charter of EXIM Bank and IIFCL. STs/OBCs in PSBs/FIs/PSICs. All matters related to resolution and registration issues of Asset Reconstruction Company (ARC) and to track 1.16 Reservation Cell the activities of the ARCs. All matters related National Assistance to the Liaison Officer for smooth Investment and Infrastructure Fund. Appointment of functioning and discharging of his duties and Statutory Auditor in EXIM Bank. Media and Publicity responsibilities as Liaison Officer for SC/ST/OBC/EWS/ related matters of DFS. Project Monitoring Group (PMG) PwD, preparation / maintenance of reservation roster of Meeting. Partial Credit Guarantee Scheme (PCGS). SC/ST/OBC/EWS/PwD for the proper secretariat of this Legislative work related to NaBFID act and EXIM Act. Department, reply to Parliament Questions/National Matter related to establishment and operation of NaBFID. Commission for SC/ST/OBC/PwD in respect of SC/ST/ Matters related to office of Custodian. OBC/EWS/PwD staff of the Department, maintenance 1.19 Industrial Finance-II (IF-II) of data of SC/ST/OBC/EWS/PwD staff of the Department, submission of all reports/ information to other Ministries/ Administration of National Housing Bank Act, Departments/Parliamentary Committees, etc. in the 1987. Administration of Small Industries Development related matters. Bank of India Act. Administration of National Housing Bank Act Administration of State Financial Corporation 1.17 Data Analysis (DA) Act. Operational, Policy and Budgetary matter relating to Reserve Bank of India Credit Policy - Busy SIDBI and NHB. Matters relating to NHB and Housing Season - Slack Season and selective credit control. Policy. Post winding up of BIFR & AAIFR matters. Matters Financial sector assessment and sectoral credit analysis. related to Micro, Small and Medium Enterprises Banking Statistics regarding bank deposits and advances. (MSMEs), TReDS. SIDBI, SFCs, Credit Guarantee Fund 235Annual Report 2022-2023 for Micro and Small Enterprises, CGFMU, CGFSI, Filling up of the posts of Chairpersons, Presiding Officers, CGTMSE, CGFF, MLIs, Credit Guarantee Scheme and Registrars, Assistant Registrars, Recovery officers, and other related matters on the subject. Citizens Charter of other posts in DRTs/DRATs. Issuing clarifications/ NHB and SIDBI. guidelines etc. on administrative matters/review. Progress and disposal of cases by DRT/DRATs. Budget provisions, All matters related to Educational Loans including monitoring, etc relating to DRTs/DRATs. Vidyalakshmi Portal, Govt. Sponsored Schemes-PMEGP, Education, employment generation scheme of SJSRY, Administration of SARFAESI Act, appointment of SGSY and other poverty alleviation programmes and Registrar/MD & CEO, CERSAI, ease of doing business other related matters, VIP references, Audit Paras, agenda- flowing from recent amendments. CKYC matters CPGRAM, RTI, Parliament Questions, Assurances, under Prevention of Money Laundering Act, 2002. Policy Grievances, Budget Announcements, Coordination with matters relating to Central Registry of Securitisation Asset RBI and State Govts. Appointment and all personnel Reconstruction and Security Interest (CERSAI), a PSU, matters of Whole Time Director in SIDBI and NHB. including the Central Registry under the SARFAESI Act, 2002. Appointment of Non-Official/Independent Directors and Government Nominee Directors in SIDBI 1.22 Insurance-I (Ins.-I) and NHB. Laying of annual reports of SIDBI and NHB Corporate governance, appointment and before the Parliament. service matters pertaining to public sector insurers and All matters related to Pradhan Mantri Mudra AICIL, Insurance Regulatory and Development Authority Yojana (PMMY). of India, Council of the Institute of Actuaries of India, Insurance Ombudsmen, Council of Insurance Micro Finance - Matters related to Micro Finance Ombudsmen, recruitment and the terms and conditions Institutions and Legislation thereon, Self Help Groups as of agents of the Life Insurance Corporation of India, and well as NABARD’s Micro Finance, etc. Matter related to insurance appointment related matters pertaining to psbloansin59minutes portal. Banks Board Bureau Administration of the Actuaries Act, 1.20 Vigilance 2006 and related matters. Matters of public entities relating to the Public Premises (Eviction of Unauthorized Consultation with CVC/CTE. Nomination of Occupants) Act, 1971. Parliamentary, audit, right to CVOs for PSBs/FIs/PSICs. Correspondence with CBI. information, court, arbitration and VIP reference related Annual Action Plan on Anti-Corruption measures. matters and dealing with matters referred through receipts Investigation of cases of frauds by CBI & RBI. Matters or otherwise in respect of any of the items enumerated under Prevention of Corruption Act. Preventive vigilance. above or connected thereto. Vigilance systems and procedures in RBI/PSBs/FIs and Insurance Companies PFRDA and IRADI/RBI. Inquiry into 1.23 Insurance-II (Ins.-II) complaints against GMs/EDs and CMDs of PSBs/FIs/ Administration of the Insurance Act, 1938; Life PSICs/PFRDA and IRADI/RBI and Vigilance Surveillance Insurance Corporation Act, 1956; General Insurance over them. Major frauds in PSBs (in India and abroad). Business (Nationalisation) Act, 1972; Insurance PMO references on anti-corruption measures. Bank Regulatory and Development Authority Act, 1999 and security, robberies & loss prevention in banks. related matters, other than those related to corporate Sanction of prosecution in case of ED/CMDs. War Book governance, appointment and service matters or those Matters. Annual Reports of CVC. Conduct Regulation in relating to recruitment and the terms and conditions of PSBs/FIs, employment after retirement regulations in agents of the Life Insurance Corporation of India. Policy PSBs. CVC/CBI references relating to DRTs/DRATs. matters relating to insurance, and to this end, analysis of Vigilance clearance, sanction of prosecution and any the trends and development in and the performance of other matter of Board level appointees of PSBs, FIs, the insurance sector and various bodies established by PSICs, PFRDA, IRDA and RBI. Vigilance matters of or under the said Acts. Administrative matters pertaining Officials in DFS, Officers of Office of Custodian and to public sector insures and Agriculture Insurance Government Officials in DRTs/DRATs. Corporation of India Limited (AICIL), other than governance, appointment and service matters. 1.21 Debts Recovery Tribunals (DRT) Assessment of capital requirements, divided payouts and performance of public sector insurance and AICIL. Establishment of DRTs/DRATs under the Recovery of Debts due to Banks and Financial Institutions Social security schemes for insurance protection Act, 1993. Administration of Recovery of Debts and and other insurance schemes sponsored/ supported by Bankruptcy (RDB) Act, framing or amending rules for the Government. Insurance Ombudsmen Rules and implementing of the provisions of the Act. administration thereof, other than corporate governance, 236Department of Financial Services V appointment and service related matters pertaining to court cases of surplus staff. RTI and personal matters of Insurance Ombudsmen and the Council of Insurance surplus staff such as leave, retrial benefits, perks & Ombudsmen. Foreign investment in insurance sector. allowances etc. Reforms in the sector and public sector insurers, including 1.28 Office of the Custodian and Special Court adoption of technology in insurance (except matters allocated to the Cybersecurity and FinTech Section). Joint Parliamentary Committee (JPC) (which Supporting the section in charge of international enquired into irregularities in securities transactions). cooperation matters on insurance related aspects of Disciplinary action against bank employees/executives international cooperation. Taxation matters relating to involved in irregularities in securities transactions. insurance sector. Matters relating to the industry, including Establishment matters relating to Special Courts/Office those raised by industry bodies/associations. of the Custodian. All issues pertaining to continuation of Implementation of Law Commission Reports. All residual posts, budget matters of the O/o Custodian and Special matters relating to insurance which are not enumerated Court including extension of the O/o Custodian and specifically as an item of work allocated to either appointment of Custodian. Insurance-I Section or Insurance-II Section. Parliamentary, audit, right to information, court, arbitration, 2. Developments in Banking Sector VIP reference related matters and dealing with matters Overall condition of banking sector referred through receipts or otherwise in respect of any of the items enumerated above or connected thereto. As a result of implementation of reforms in the financial system, and particularly in PSBs by the 1.24 Pension Reforms (PR) Government, performance of banking sector has Reforms in the Pension Sector. Policy matters significantly improved, as indicated below: with respect to NPS, Atal Pension Yojana and (a) Asset quality has improved significantly with- Swavalmban Scheme. Administration of PFRDA Act, 2013. Framing of rules under PFRDA Act, 2013.  Gross NPA ratio of SCBs declining from the Appointments of Chairperson and Board member of Mar-18 peak of 11.18% (Rs. 10.36 lakh PFRDA, CVO in PFRDA, Budget and Funds of PFRDA crore) to 5.82% (Rs. 7.42 lakh crore) in Mar- and Legislative and policy prescriptions to PFRDA. 22, and to 5.61% (Rs 7.34 lakh crore) in June-22. 1.25 Cybersecurity and FinTech (IT)  Gross NPA ratio of PSBs declining from the Matters relating to overall cybersecurity for the Mar-18 peak of 14.58% (Rs. 8.96 lakh crore) financial services sector and in the Department. to 7.28% (Rs. 5.41 lakh crore) in Mar-22, Coordination of FinTech and Deep Tech (artificial and 6.09% (Rs. 4.87 lakh crore) in Sep-22. intelligence, big data, block chain, etc.) matters related to the financial services sector and the Department (other  Net NPAs ratio of SCBs declining from than matters related to e-payments in the banking 5.94% in Mar-18 to 1.67% in Mar-22. system). Management of the Department’s website and web services. Coordination with NIC for the Department.  Net NPAs ratio of PSBs declining from 7.97% in Mar-18 to 2.19% in Mar-22, and Parliamentary, audit, right to information, court, arbitration 1.69% in Sep-22. and VIP reference related matters and dealing with matters referred through receipts or otherwise in respect (b) Resilience has increased with- of any of the items enumerated above or connected thereto.  Provision coverage ratio of SCBs rising to 86.85% in Mar-22, from 49.31% in Mar-15. 1.26 GST Cell  Provision coverage ratio of PSBs rising to Overseas preparedness of all institutions under 86.65% in Mar-22 (88.91% in Sep-22), from DFS to implement GST, to provide inputs to the “ Banking, 46.04% in Mar-15. Financial and Insurance” Sectoral Group with reference (c) Capital adequacy has improved significantly, to GST.Other matters related to coordination, rollout and with— implementation of GST w.r.t institutions under administrative control of DFS etc.  CRAR of SCBs improving by 386 bps to reach 16.80% (all time high level) in Mar-22 1.27 Surplus Cell from 12.94% in Mar-15. All service matters and day to day administrative matters related to surplus staff of AAIFR & BIFR including  CRAR of PSBs improved by 317 bps to reach 14.62% in Mar-22 (14.53% in Sep- their redeployment. Consultation with DoPT, handling of 22) from 11.45% in Mar-15. 237Annual Report 2022-2023 (d) In FY 2021-22, SCBs earned record profit of while 1,807 have ended in orders for Rs. 1.82 lakh crore. All PSBs are in profit with liquidation. Further, the creditors, in cases aggregate profit being Rs. 66,543 crore in FY wherein the resolution plans were approved, 2021-22 (Profit continued with Rs. 40,992 crore have realised Rs. 2.43 lakh crore against the in first half of FY 23). aggregate claims of Rs. 7.91 lakh crore and aggregate liquidation value of Rs. 1.37 lakh (e) Banks, earlier placed under Prompt Corrective crore. Though the creditors could realise only Action (PCA) framework by RBI, have made approx. 31% of their admitted claims in these significant improvement resulting in removal of cases, yet the realised amount was more than each one of them from the PCA restrictions. 177% of the liquidation value of these CDs. 2.1 Steps Taken to Reduce Stressed Assets  The SARFAESI Act, 2002 has been amended Government and RBI regularly issue guidelines to make it more effective, with provision for and have taken several initiatives aimed at resolution three months’ imprisonment in case the of long-standing stressed assets on the books of banks borrower does not provide asset details, and as well as timely identification and recognition of stress for the lender to get possession of mortgaged immediately upon default and take corrective actions property within 30 days. for mitigation of the same. These measures complement  Jurisdiction of Debt Recovery Tribunal (DRTs) the statutory provisions already available to lenders for was increased from Rs. 10 lakh to Rs. 20 lakh recovery and resolution, including, inter alia, Recovery to enable the DRTs to focus on high value of Debts and Bankruptcy Act, 1993, Securitisation and cases resulting in higher recovery for the Reconstruction of Financial Assets and Enforcement banks and financial institutions. Six new DRTs of Security Interest (SARFAESI) Act, 2002 and have also been established to expedite Insolvency & Bankruptcy Code, 2016 (IBC). As a result recovery. of these comprehensive steps SCBs recovered an aggregate amount of Rs. 8,57,002 crore from NPAs over Enabled by the above, PSBs have also recovered the last eight financial years. The steps taken include, an aggregate amount of Rs. 89,560 crore for FY21-22 from inter alia, the following – NPAs, which includes Rs. 20,201 crore through IBC, Rs. 20,248 crore through SARFAESI, Rs. 9,417 crore through  IBC has led to behavioural change in the DRT and Rs 2,442 crore through Lok Adalat etc. for the debtor-creditor relationship by shifting the FY21-22. focus from the ‘Debtor in Possession’ to a ‘Creditor in Control’ regime, wherein the 2.2 Position of Bank frauds creditors of the Corporate Debtor (CD), RBI has issued Master Directions on Frauds in through their appointed Interim Resolution 2016, and Government has instituted wide-ranging Professional/ Resolution Professional structural and procedural reforms to check frauds in banks. (IRP/RP), remain in control of the assets Such systemic and comprehensive checking for frauds, of the CD from the time the application is including of the legacy stock of NPAs, led to unearthing of admitted by the AA. This fear of losing frauds perpetuated over the years. The improved detection control of the firm on initiation of Corporate and reporting accompanied with the comprehensive steps Insolvency Resolution Process (CIRP), is taken to check frauds have resulted in sharp decline in the nudging debtors to settle their dues with occurrence of such frauds, with fraud occurrence as a the creditors as soon as possible. Till percentage of gross advances, having declined sharply 30.9.2022, 23,417 applications for initiation from a peak of 1.12% in FY2013-14 to 0.05% in FY2021- of CIRPs, having underlying default of Rs. 22 in SCBs, and from a peak of 1.16% in FY2013-14 to 7.31 lakh crore were resolved before their 0.06% in PSBs in FY2021-22. admission itself. This may be attributed to the behavioural change effectuated by IBC. 2.3 National Asset Reconstruction company Limited (NARCL)  Since CIRP coming into force on 1.12.2016, a total of 5,893 CIRPs have The Board composition has been completed for commenced by the end of September, both National Asset Reconstruction Company Limited 2022, out of which, 3,946 have been (NARCL) and India Debt Resolution Company Limited closed. Of the CIRPs closed, the CD was (IDRCL). Regular MD & CEOs and most of the key rescued in 2,139 cases, of which 846 have executives of NARCL and IDRCL have joined their been closed on appeal or review or settled; respective organisations. NARCL is intended to resolve 740 have been withdrawn; and 553 cases both fully and partially provided legacy stressed assets have ended in approval of resolution plans; amounting to about Rs. 2 lakh crore in the Indian banking 238Department of Financial Services V system. Acquisition of assets would be under the extant total bank branches in the country, their share in guidelines whereby through the 15:85 structure, 15 per total number of rural branches is about 29%. In cent of the net value of assets will be paid upfront to the rural areas of aspirational districts, RRBs lenders and security receipts will be issued to the lenders have about 40% of the rural branches. Moreover, for the remaining 85 per cent. many RRBs have branches in remote areas and they are providing financial services to vulnerable A total of 66 accounts of Rs. 2.28 lakh crore have been sections. identified for transfer to NARCL in a phased manner. Due diligence (DD) in 41 accounts has been initiated by (v) In rural areas, the share of deposit accounts of NARCL with DD completed in 16 accounts. Binding offers RRBs is about 26% and RRBs have the highest in 12 accounts of about Rs. 67,090 crore have been given average balance in PMJDY accounts amongst to lenders. Swiss challenge initiated by lenders has been all categories of banks. In North-eastern region, completed in four accounts with binding offers worth Rs. RRBs cater to the banking needs of about 38% 3,931 crore. Letter of acceptance has been issued in of the rural people. As against the overall Rural favour of NARCL in one account with consideration CD Ratio of 64% for all the banks, RRBs have amount of Rs. 3,570 crore. Rural CD Ratio of 75%. 2.4 Regional Rural Banks (RRBs) 2.4.2 Unprecedented Capital Support for RRBs The RRBs were established under the provisions FY 2021-22 was a watershed year in the context of the ordinance promulgated on 26th September, 1975 of RRBs as Government of India decided to infuse Rs. and RRBs Act, 1976. The first 5 Regional Rural Banks 10,890 crore (GoI share (50%)- Rs.5,445 crore) of capital (RRBs) were established on 2 October 1975 to in RRBs during FY 2021-22 and FY 2022-23. commemorate the birth anniversary of Mahatma Gandhi with the objective to create an alternative channel to The total recapitalisation assistance budgeted for cooperative credit structure with a view to ensure sufficient RRBs during FY 2021-22 and FY 2022-23 amounts to institutional credit for rural and agriculture sector. The Rs.10,890 crore including the proportionate share capital RRBs, with focus on serving the rural areas, are an contribution by State Governments (15%) and Sponsor integral segment of the Indian banking system. Banks (35%). The total capital infusion from 1975 to FY Sponsored by the Commercial Banks, the equity of RRBs 2020-21 was Rs.8,393 crore by all stakeholders. are held by the Central Government, concerned State Government and the Sponsor Bank in the proportion of Rs.8,168 crore (GoI Share: Rs. 4,084 crore) was 50:15:35. These banks are envisaged to be State- sanctioned as recapitalisation assistance to 22 RRBs for sponsored, regionally based and rural-oriented. The FY 2021-22. DFS, GoI vide their sanction letter dated 28 purpose of establishment of the RRBs is to develop the March 2022 accorded approval for placing GoI’s share rural economy by providing credit and other facilities to of Rs.4,084 crore towards recapitalization of 22 RRBs at the small and marginal farmers, agricultural labourers, the disposal of NABARD, with the advice to release the artisans and small entrepreneurs. As on 31 March 2022, GoI’s share to RRBs on pro-rata basis, depending upon 43 RRBs are operating through a network of 21,892 the proportionate prior release of the funds by the Sponsor branches covering 702 districts of the country. All Banks and the State Governments. branches of RRBs are on CBS Platform. As on 20 December 2022, NABARD has 2.4.1 Role of RRBs released GoI’s share (in portion/ full) amounting to Rs. 4,007.80 crore to 22 RRBs after confirming RRBs have a mandate to ensure rural proportionalprior release of the funds by the Sponsor development and foster financial inclusion. Over the Banks and the State Governments. years, the RRBs have traversed a long journey. The contributions being made by RRBs as a whole at present, 2.4.3 Objectives of the Recapitalisation scheme are briefly as under: RRBs have been regularly infused with capital in (i) Of the total loans extended by the RRBs, about the past to help them meet the regulatory requirement of 46% goes to agriculture. About 90% of loans are 9% CRAR (Capital to Risk Weighted Assets Ratio). extended to the priority sector. Of the total loans, about 79% is extended to weaker sections. However, this latest scheme aims to rejuvenate and revitalise the RRBs with sufficient growth capital to (ii) RRBs play a significant role in extending micro facilitate reinventing themselves as sustainably viable and credit. They account for 30% of the SHG self-sufficient financial institutions and for leading the accounts and 26% of the loan amount. 19% of growth process and the change in rural areas. The capital total KCCs have been issued by the RRBs. infusion will help RRBs in technology adoption and to (iii) Share of RRBs in total accounts/enrolments efficiently cater to the financial inclusion needs of the rural under Government Sponsored Schemes like populace. PMJDY, PMJJBY, PMSBY, APY, etc varies from Further, the recapitalisation scheme will be 12% to 19%. accompanied by operational and governance reforms (iv) 92% of the branches of RRBs are in rural and under the broad ambit of Sustainable Viability Plan with semi urban areas. Though RRBs have 14% of a well-defined implementation mechanism aimed at credit 239Annual Report 2022-2023 expansion, business diversification, NPA reduction, cost c) In order to facilitate comprehensive monitoring rationalisation, technology adoption, improvement in of the performance of RRBs including corporate governance etc. performance under their Viability Plans, DFS, in association with NABARD, has developed a 2.4.4 Important Developments in the context of dashboard called RRB n{ÉÇhÉ (RRB Darpan). Data RRBs in FY 2022-23 in respect of more than 120 quantitative and a) In order to ensure optimal utilisation of qualitative metrics are collected from RRBs on a recapitalisation assistance sanctioned to RRBs, monthly basis. The Dashboard presents the data Hon’ble Finance Minister addressed the submitted by the RRBs in the form of ingenious Chairmen of all RRBs on 7 July 2022 during a charts and reports. discussion meeting held on ‘Operational and Governance Reforms in RRBs’ on 7 July 2022. d) Department of Financial Services, Government of India vide notification dated 14 September b) A Workshop on ‘Operational and Governance 2022 has issued ‘Guidelines for Raising Reforms in RRBs’ was held on 3 September 2022 Resources from Capital Market’ for RRBs. RRBs at Reserve Bank of India’s College of Agricultural Banking (RBI CAB), Pune under the meeting certain indicative criteria have been Chairmanship of Secretary, DFS, GoI with permitted to approach capital market for raising participation of MD&CEOs & EDs of Sponsor resources after approval of all concerned Banks, Chairmen of RRBs and officials of DFS regulators and GoI. Sponsor Banks of RRBs have and NABARD. All RRBs were advised to prepare been advised to identify such RRBs and provide a board approved Viability Plan with SMART handholding support. (Specific, Measurable, Achievable, Relevant, Time-bound) indicators. The metrics which were e) Keeping in view the need to promote the spread to be adopted under the Viability Plan were of digital banking in rural areas, RBI, vide their finalised during the workshop and all the RRBs notification dated 1 November 2022, has relaxed rolled out their Board approved Viability Plans in the criteria for RRBs to be eligible to provide the first week of October. internet banking. 2.4.5 Key Financial Parameters (Amount in Rs. crore) Particulars 2019-20 2020-21 2021-22 No. of RRBs (No.) 45 43 43 Branch Network (No.) 21,847 21,856 21,892 Share Capital 7,849 8,393 14,880 Reserves 26,814 30,348 34,359 Deposits 4,78,737 5,25,226 5,62,538 Borrowings 54,393 67,864 73,881 Investments 2,50,859 2,75,658 2,95,665 Gross Loans & Advances O/s 2,98,214 3,34,171 3,62,838 No. of RRBs earning Profit 26 30 34 Amount of Profit (A) 2,203 3,550 4,116 No. of RRBs incurring Losses 19 13 9 Amount of Losses (B) 4,411 1,867 897 Net Profit of RRBs (A – B) -2,208 1,682 3,219 GNPA (Amount) 31,106 31,381 33,190 GNPA (%) 10.4 9.4 9.1 240Department of Financial Services V 2.5 National Portal for Credit Linked Government Stand Up India, Weavers Credit Card; MUDRA Loans; Schemes – Jan Samarth Portal: Agriculture Marketing Infrastructure Scheme (AMI); Agriculture Infrastructure Fund (AIF); Agri clinics and The Hon’ble Prime Minister launched the Agribusiness Centers Scheme (ACABC); Deendayal National Portal for Credit-linked Government Schemes Antyodaya Yojana- National Rural Livelihood Mission ‘Jan Samarth’ on 06.06.2022. The purpose of ‘Jan (DAY-NRLM); Central Scheme for Interest Subsidy on Samarth’ is to enable greater ease and convenience to Education Loans for Economically Weaker Sections all beneficiaries of credit-linked Government sponsored (CSIS); PadhoPardesh Scheme; Dr. Ambedkar Central schemes. Sector Scheme of Interest Subsidy on Education Loan The Government runs various credit-linked for Overseas Studies for OBCs & EBCs; PM Employment schemes to meet the needs of citizens, especially the Generation Programme (PMEGP); PM Street Vendor’s underprivileged for livelihood, education and housing etc. AtmaNirbhar Nidhi (PM-SVANidhi); and Self-Employment Such credit requirement of beneficiaries is met through Scheme for Rehabilitation of Manual Scavengers multiple Ministries/Department and Banks etc. To improve (SRMS). The Portal has feature of on-boarding more ease of living and convenience, a need was felt for a Central Government schemes and also State single platform, where a beneficiary can avail benefits Government Schemes in future. under multiple Government programmes. ‘Jan Samarth’ The Portal’s benefits are that beneficiaries can portal enables loan application under multiple track loan application and sanction and disbursement Government schemes to be processed at a single place. under multiple Government programmes on a single An applicant desirous of obtaining credit under portal. Assessment of creditworthiness of borrowers by Government schemes can visit ‘Jan Samarth’ portal. banks becomes more efficient as necessary information Under different schemes he can check his eligibility for provided by ‘Jan Samarth’. As far as Government loan, potential lending institution and loan conditions etc. Ministries/ Departments are concerned, faster loan and apply. The application made by the beneficiary on disbursement leads to improved programme efficiency the ‘Jan Samarth’ portal would be transmitted to lending and MIS reports are available on ‘Jan Samarth’ to improve institution along with details necessary for assessing monitoring of schemes. credit worthiness of the borrower. After assessment by the lender, sanction of loan and disbursement will be 2.6 Account Aggregator conveyed electronically and the beneficiary can track the Union Budget 2020-21 announcement: - “An app- status of the application on the portal based invoicing financing loans product will be launched. The Portal brings together various stakeholders This will obviate the problem of delayed payments and in the credit appraisal and disbursal process, including consequential cash flows mismatches for the MSME”. Banks and other lending institutions and other 2.6.1 Developments stakeholders on a common platform which is designed to streamline the credit delivery process. The most A Committee constituted by Department of important player in the process of credit appraisal and Economic Affairs (DEA) on 12.1.2022 with members from disbursal – banks and other lending institutions – have DFS and Department of Revenue (DoR) to discuss next been onboarded. ‘Jan Samarth’ facilitates data exchange steps to scale up Cash Flow based Lending to MSMEs from other stakeholders for purposes of appraisal of loan through SAHAY app using the Account Aggregator (AA) application and ease of disbursement also, including Framework, recommended DoR to facilitate GSTN Unique Identification Authority of India (UIDAI) for integration with AAs and DFS to monitor and encourage Aadhaar validation and fetching of customer details, adoption of AA by PSBs. SIDBI developed a product “GST National E-Governance Services Ltd (NeSL) for digital Sahay”, which, is an application for invoice-based documentation, Goods and Service Tax (GST) data for financing for small business that is real time, cash flow digital access to access GST returns of applicant, based and end to end digital. RBI has approved on Protean eGov Technologies Limited for PAN 6.6.2022 SIDBI’s application for testing GST Sahay. verification, Central Board of Direct Taxes (CBDT) for Pending integration of GSTN with AA, the GST Sahay Income verification, Local Government Directory (LGD) App used GSPs (GST Suvidha Providers) to access GST for geographical location mapping etc. for locating nearest data. lending institution; and UDYAM integration for UDYAM Aadhaar registration details. Data sharing by these 2.6.2 Account Aggregator Framework entities with banks is done through ‘Jan Samarth’ Portal  Account Aggregator is a Non-Bank Finance which enables validation of data provided by the Company (NBFC) engaged in the business of providing beneficiary and facilitate faster processing by the lenders. the service of retrieving or collecting financial information 13 Credit-Linked Government Schemes have pertaining to the customer. No financial information of already been onboarded on ‘Jan Samarth’, including the customer is retrieved, shared or transferred by AA 241Annual Report 2022-2023 without the explicit consent of the customer. AA transfers  More than 1.1 billion bank accounts are eligible data from one financial institution to another based on to share data on AA an individual’s instruction and consent. In this direction,  2.74 million users have linked their Accounts on RBI has issued the Master Direction viz Non-Banking the AA framework. Financial Company (NBFC) – Account Aggregator (Reserve Bank) Directions, dated September 02, 2016.  2.62 million users successfully share data via AA.  Entities may enrol themselves on AA framework Source: sahamati.org.in as Financial Information Provider (FIP) viz. banking 2.7. International Trade Settlement in Indian company, non-banking financial company, asset Rupees (INR) management company, depository, depository participant, insurance company, insurance repository, pension fund The Reserve Bank of India (RBI) has allowed etc. and as Financial Information User (FIU) which is an invoicing and payments for international trade in Indian entity registered with and regulated by any financial sector Rupees vide A.P (DIR Series) Circular No. 10 RBI/2022- regulator. At present, RBI has granted Certificate of 2023/90 dated 11.07.2022 on “International Trade Registration to six companies as AA Settlement in Indian Rupees (INR)”.  The RBI Circular broadly provides guidelines on The broad framework for cross-border trade Process of Registration, Consent Architecture, Data transactions in INR under the Foreign Exchange Security, Technical Specifications, Sharing of Financial Management Act, 1999 (FEMA) has been delineated by Information by Financial information Providers and Use RBI in the said Circular dated 11.07.2022. The Circular of information by Account Aggregator and Financial lays down that all exports and imports under the Information User. arrangement may be denominated and invoiced in Rupee (INR), the exchange rate between the currencies of the 2.6.3 Initiatives two trading partner countries may be market determined, DFS has conducted series of meetings to review and the settlement of trade transactions under the the progress of app for invoice-based lending and status arrangement shall take place in INR in accordance with of Account Aggregator with all PSBs, all Public Sector the procedure laid down in the Circular. RBI has put in Insurance Companies (PSICs), NABARD, DoR, DEA, place the arrangement for invoicing, payment, and GSTN, SIDBI, IRDAI, RBI, PFRDA, major Private sector settlement of exports / imports in INR in order to promote Life Insurance companies, CDSL, NSDL & Sahmati growth of global trade with emphasis on exports from Foundation. Latest meeting was held on 12.12.2022, India and to support the increasing interest of global wherein Reserve Bank of India (RBI), Insurance trading community in INR. Regulatory and Development Authority of India (IRDAI) and Pension Fund Regulatory and Development Authority The framework put in place by RBI for allowing (PFRDA) were requested to accelerate scale-up of the invoicing and payments for international trade in INR is AA ecosystem. GST SAHAY app which is based on GST applicable for any partner country seeking to undertake invoices will be made operational after GSTN integration. trade with India in INR in terms of RBI’s Circular dated Regular reviews at DFS conducted with latest progress 11.07.2022. In terms of Para 10 of RBI’s Circular, the on AA as below: approval process is that for opening of Special INR Vostro accounts, banks of partner countries may approach  RBI vide circular dated November 23, 2022 has Authorized Dealer (AD) banks in India which may seek included Goods and Service Tax Network approval from RBI with details of the arrangement (GSTN) as a FIP under AA framework. 3. Financial Inclusion  26 Financial Institutions have gone live as FIPs, including all 12 PSBs, 10 Private Sector Banks, 3.1 Pradhan Mantri Jan Dhan Yojana (PMJDY) 1 Small Finance Bank, 3 Life Insurance With a view to increase banking penetration, promote Companies financial inclusion and to provide at least one bank  96 Financial Institutions have gone live as FIUs, account per household across the country, a National 75 RBI Regulated, 10 SEBI Regulated, 9 IRDA Mission on Financial Inclusion (FI) known as Pradhan regulated entities, 2 PFRDA regulated entities. Mantri Jan Dhan Yojana (PMJDY) was announced on 242Department of Financial Services V 15thAugust, 2014. The Scheme was formally launched Guarantee Fund for coverage of defaults in overdraft on 28th August, 2014 at National level by the Hon’ble Prime accounts and unorganised sector pension schemes like Minister. Comprehensive financial inclusion of the Swavlamban. excluded sections was proposed to be achieved by 14th c) Extension of PMJDY August, 2018 in 2 phases as under: PMJDY has been extended beyond 14.8.2018 a) Phase I (15th August, 2014 - 14th August, 2015) with the focus on opening of accounts shifting from “every Universal access to banking facilities in all areas, household” to “every unbanked adult” and making the except those with infrastructural and connectivity scheme more attractive with upward revision in: - constraints and providing basic banking accounts and  OD limit from Rs.5,000 to Rs.10,000; RuPay Debit card with inbuilt accident insurance cover of Rs. 1 lakh and organizing Financial Literacy  accident insurance cover on RuPay card holders Programme. from Rs.1 lakh to Rs.2 lakh; b) Phase II (15th August, 2015 - 14th August, 2018)  age limit for availing OD facility revised from 18- 60 years to 18-65 years and Overdraft (OD) facility up to Rs. 5,000 after six months of satisfactory operation/history. Creation of Credit  no conditions attached for OD up to Rs. 2000. Performance of PMJDY Major achievements of PMJDY are as under: (Numbers in Crore) Breakup by Gender Breakup by Geography Deposits in PMJDY PMJDY Accounts Accounts No of No of No of (in Rs. crores) As on (in crore) PMJDY PMJDY PMJDY No of PMJDY Accounts Accounts Accounts Accounts (Urban/Metro) (Male) (Female) (Rural/Semi 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 March’22 45.06 19.98 25.08 30.07 14.99 1,66,459 As on 47.57 21.17 26.40 31.74 15.83 1,76,912 30.11.2022  A total of 47.57 crore Jan-Dhan accounts have been opened till 30.11.2022 under PMJDY, with a deposit balance of Rs.1,76,912 crores. The average deposit balance is approx. Rs.3719 per PMJDY account.  There are 26.40 crore (55.5%) women Jan-Dhan account holders, with about 31.74 crore (66.7%) accounts opened in rural and semi-urban areas.  Approximately 32.43 crore RuPay cards with an inbuilt accidental insurance of Rs.2 lakh (Rs.1 lakh for accounts opened before 28.08.2018) coverage has also been provided to PMJDY account holders.  Out of total operative accounts opened under PMJDY, 85.1% have been seeded with Aadhaar number of the account holder on user consent basis, which has enabled interoperable and immediate Aadhaar based transactions, including for Direct Benefit transfer (DBT) through Aadhaar Payment Bridge. 243Annual Report 2022-2023 3.2 Banking Touch Points: 3.2.1 The strength of bank branches and ATMs has been augmented over the years as indicated below: Table 1:Number of bank branches of Scheduled Commercial Banks: RURAL SEMI-URBAN URBAN METROPOLITAN TOTAL 31.03.2017 49,860 38,931 25,103 26,530 1,40,424 31.03.2018 50,860 39,616 25,458 26,536 1,42,470 31.03.2019 51,609 41,031 26,399 27,157 1,46,196 31.03.2020 52,382 42,213 27,318 28,133 1,50,046 31.03.2021 52,651 42,441 27,446 28,055 1,50,593 31.03.2022 53,204 42,443 27,433 28,181 1,51,261 30.06.2022 53,292 42,514 27,455 28,132 1,51,393 30.09.2022 53,372 42,685 27,565 28,275 1,51,897 Source: RBI Table 2: Number of ATMs of Scheduled Commercial Banks (SCBs), Small finance Banks (SFBs), Payment Banks (PBs) and White Label ATM Operators. As on Off-site ATMs* On-site ATMs Total ATMs* 31.03.2016 110111 101950 212061 31.03.2017 112666 109809 222475 31.03.2018 115471 106776 222247 31.03.2019 115323 106380 221703 31.03.2020 121086 113271 234357 31.03.2021 122983 115605 238588 30.09.2021 125220 115762 240982 31.03.2022 129766 116794 246560 30.09.2022 131713 120236 251949 Source: RBI *includes ATMs deployed by White Label ATM Operators • The number of card acceptance devices of Point of Sale (POS) has increased from10.7 lakh in March 2014 to 73.51 lakh in November 2022. 3.3 Jan DhanDarshak App data uploaded by the banks on JDD app, out of the 5.54 lakh (5,53,804) mapped villages on the app, 5.54 lakh A mobile application, has been launched to (5,53,572) (99.96%) villages are having branch or BC provide a citizen centric platform for locating banking within a distance of 5 kilometres. touch points such as bank branches, ATMs, Bank Mitras, Post Offices, etc. in the country. The web version of this 3.4 Jan-Dhan Aadhaar Mobile (JAM) application could be accessed at the link http:// A Jan Dhan Aadhar Mobile (JAM) pipeline has findmybank.gov.in. Banks/ IPPB have been provided login been laid for linking of Jan-Dhan account with mobile credentials to upload the GIS location of their branches, number and Aadhaar. This infrastructure pipeline is Business Correspondents and ATMs on the app. providing the necessary backbone for DBT flows, As per JDD app, as on Nov’22, there are 1.68 adoption of social security/ pension schemes, facilitating lakh branches, 6.92 lakh BCs (including IPPB-BCs) and credit flows, promoting digital payments, etc. It has 2.17 lakhs ATMs mapped by the banks. Further, as per provided the much-needed support for accelerating the 244Department of Financial Services V pace towards achieving a digitalised, financially inclusive coverage under the Scheme is for Rs. 2 lakhs in case of and an insured society. The instant transfer of Direct accidental death or total permanent disability and Rs. 1 Benefits under various Government Schemes has been lakh for partial permanent disability due to accident at a made possible through the JAM pipeline. premium of Rs. 20/- per annum which is to be deducted from the account holder’s bank / Post office account 3.5 Digital Banking Units through ‘auto-debit’ facility. The Hon’ble Prime Minister dedicated 75 Digital Key reforms in the implementation of schemes Banking Units (DBUs) in 75 districts of the country to PMJJBY and PMSBY: commemorate the 75 years of independence of our country(Azadi ka Amrit Mahotsav) on 16.10.2022. These  Enrolment and claim forms for PMJJBY and DBUs set-up by 24 banks including Public, Private Sector PMSBY have been modified with a view to and Small Finance Bank, cover all the States and Union minimise pendency and ensure benefits to rightful Territories of the country. The DBUs are to assist those claimants at the earliest who are not tech savvy to adopt digitalbanking and wherein the products and services will be offered to  Mobile number, email id and age of the nominee customers in 2 modes: Self Service Mode and Digital (or the appointee of a minor nominee) are now Assistance Mode. captured and in the event of an unfortunate incident, nominees are proactively informed of Services being offered through DBU include the benefit available and the claim process in banking facilities like opening of savings account, English and regional language. balance-check, print passbook, transfer of funds, investment in fixed deposits, loan applications, stop-  Waiting period under PMJJBY has been reduced payment instructions for cheques issued, application for from 45 days to 30 days with effect from 1st June credit/debit cards, view statement of account, paytaxes, 2021 paybills,make nominations,etc. The DBUs will also facilitate on boarding to Government credit link Schemes  Banks have been requested to identify from their through the Jan Samarth portal and end-to-end digital core banking solution (CBS), the existing processing of a small ticket MSME/retail loans. Total subscribers who did not have sufficient balance interventions in 75 DBUs during the period 16th in their accounts as on 31.5.2022 to enable auto October’2022 to 15th November 2022 have been more debit of their premium and to inform them by SMS than 2.18lakh and further increased to more than 7.77 / email about the revision in premium rates. lakh, till December, 2022. As on December, 2022, 83 DBUs have now been operationalised.  The documents have been prescribed for claim settlement procedure on an ongoing basis.In view 4 Key Schemes of the pandemic, in addition to Death Certificate as proof of death or cause of death, several other 4.1 Pradhan Mantri Jeevan Jyoti Bima Yojana documents were made as valid proof (up to (PMJJBY) — The Scheme is available to people in the 30.11.2021 or till further revision, whichever was age group of 18 to 50 years having a bank / Post office earlier). Banks forward the claim documents account who give their consent to join / enable auto-debit. electronically to their partner Insurer (s) through Risk coverage under this Scheme is for Rs. 2 lakhs in case of death of the insured, due to any reason at an designated app to enable expeditious claim annual premium of Rs. 436/- which is to be auto-debited settlement within 14 days from the subscriber’s bank / Post office account.  Banks/ post office to forward claim documents 4.2 Pradhan Mantri Suraksha Bima Yojana (PMSBY) — electronically to their partner insurer’s designated The Scheme is available to people inthe age group of 18 app / email id within seven days of submission to 70 years with a bank / Post office account who give of the claim and insurers to settle claims within their consent to join / enable auto-debit facility. The risk 7days of receipt of claim documents. Progress as on 30.11.2022 is as under: Scheme Eligibility Premium Cumulative Claims Claims amount Settlement (Yrs) (p.a) Enrollments (crore) Paid (crore) Ratio(%) PMJJBY 18 to 50 Rs 436 14.43 6,27,817 Rs.12,556.34 98.32% PMSBY 18 to 70 Rs 20 31.31 1,07,062 Rs.2125.56 99.93% 245Annual Report 2022-2023  In view of adverse claim experience of the PMJJBY and PMSBY, following changes have been made in the rules: o Premium rates have been revised as follows: Schemes Premium per annum per subscriber Existing Revised PMJJBY Rs.330 Rs.436 PMSBY Rs.12 Rs.20 o A grace period of thirty days from the due date of renewal of PMJJBY and PMSBY i.e. up to 30th June, 2022, has been allowed for debit of enhanced premium from the accounts of subscribers. 4.3 Pradhan Mantri Mudra Yojana (PMMY) Category-wise break-up is as under: The Scheme was launched on 8th April 2015 for Category Percentage as per Percentage as financing income-generating small business enterprises No .of Loans per Amount in manufacturing, trading and service sectors, including Sanctioned activities allied to agriculture such as poultry, dairy, Shishu 85% 41% beekeeping, etc. Under PMMY, both Term loan and Kishore 13% 35% Working Capital requirements can be met. Loans under Tarun 2% 24% PMMY are extended through MLIs viz; Banks, Non- Total 100% 100% Banking Financial Companies (NBFCs) & Micro Finance Institutions (MFls). 4.4 Stand Up India Scheme(SUPI) a) Categories: Shishu — upto Rs. 50,000/-, Kishore — above Rs. 50,000/- and up to Rs.5.00 lakh, The Stand Up India Scheme launched on 5thApril, Tarun —above Rs.5.00 lakh and up to Rs.10.00 2016 aims to promote entrepreneurship among the Scheduled Caste/ Scheduled Tribe and Women by lakh; facilitating bank loans of value between Rs.10 lakh and b) No insistence on collateral(s); Rs.1 crore to at least one SC/ ST borrower and one woman borrower per bank branch of Scheduled c) A Credit Guarantee Fund for Micro Units Commercial Banks for setting up greenfield enterprises (CGFMU) was set up for guaranteeing loans in trading, manufacturing and services sector. In 2019- extended to eligible micro units under Pradhan 20, the Stand Up India Scheme was extended for the Mantri Mudra Yojana (PMMY) by Member entire period coinciding with the 15th Finance Commission Lending Institutions (MLls) and Overdraft loan period of 2020-25. Pursuant to an announcement made amount sanctioned under Pradhan Mantri Jan by the Union Finance Minister in the Budget speech of Dhan Yojana (PMJDY) accounts. From FY 2020- FY 2021-22, the following changes have been made in 21 onwards, loans sanctioned to Self Help the Stand Up India Scheme: - Groups (SHGs) between Rs.10 lakh to Rs. 20 lakh would also be eligible for coverage under a) The extent of margin money to be brought by CGFMU. The National Credit Guarantee Trustee the borrower has been reduced from ‘upto 25%’ to ’upto Company Ltd. (NCGTC), a wholly-owned 15%’ of the project cost. However, the borrower will continue to contribute at least 10% of the project cost as company of Government of India, constituted own contribution. The Scheme envisages ’upto 15%’ under the Companies Act, 1956 (2013) is the margin money which can be provided in convergence trustee of the Fund. with eligible Central/State schemes; d) As on 31.10.2022 the sanction amount covered b) Loans for enterprises in ‘Activities allied to under live guarantee is Rs.1.80 lakh crore. agriculture’ e.g. pisciculture, beekeeping, poultry, As on 25.11.2022, more than 37.76 crore loan livestock, rearing, grading, sorting, aggregation agro accounts amounting to Rs. 21.02 lakh crore have been industries, dairy, fishery, agriclinic and agribusiness sanctioned since the launch of Scheme. Out of this, about centres, food & agro- processing, etc. (excluding crop 68% loans have been sanctioned to Women loans, land improvement such as canals, irrigation, wells) Entrepreneurs and 51% loans have been sanctioned to and services supporting these, shall be eligible for SC/ST/OBC category of borrowers. coverage under the Scheme. 246Department of Financial Services V As on 28.11.2022, a total number of SCs/STs and Women borrowers benefited under the Stand-Up India Scheme are as under. (Amt. in Rs. crore) SC ST Women (General) Total No of Sanctioned No of Sanctioned No of Sanctioned No of Sanctioned A/Cs Amt. A/Cs Amt. A/Cs Amt. A/Cs Amt. 23,554 4928.03 7718 1661.22 127165 29297.69 158437 35886.94 4.5 Regional imbalances: Focused attention beneficiaries on the Digital Payment Platforms and to promote transactions by the beneficiaries, cash back up Special focus is being given to 112 Aspirational to Rs. 1,200 per annum is available under the Scheme. Districts (ADs) wherein a Targeted Financial Inclusion Interest subsidy @ 7% per annum is to be paid on quarterly Intervention Program (TFIIP) program has been launched basis on timely or regular repayment of all loans (1st, 2nd to improvethe performance of these Districts under and 3rd tranche) disbursed till December, 2024. Financial Inclusion (FI) parameters. Departmentis also working on ‘Mission Utkarsh’ to improve the performance As on 27.11.2022, a total of 42.92 lakh loan of 10 selected Districts which are lagging behind on FI applications have been sanctioned in all tranches together, parameters. out of which 37.47 lakh applications have been disbursed. 4.6 PM Street Vendor’s Atmanirbhar Nidhi 5. Agriculture Credit Scheme (PMSVANidhi) In order to boost the agriculture sector with the The scheme is a Central Sector Scheme help of effective and hassle-free agriculture credit, the implemented by Ministry of Housing and Urban Affairs Government has been fixing annual targets for ground (MoHUA), with the objective of providing relief to street level agriculture credit by Scheduled Commercial Banks, vendors affected by Covid-19 lockdown. The Scheme, Regional Rural Banks (RRBs) and Cooperative Banks. launched on 01 June, 2020 and valid till 31.03.2022, has now been extended till 31.12.2024. DFS is facilitating Year wise position of target and achievement MoHUA in smooth implementation of the scheme which under agricultural credit flow for the last seven years and envisages empowering street vendors by not only current year given below indicates the sustained trend of extending loans to them but also for their holistic actual disbursement, surpassing the incremental annual economic development. targets year after year. As against the annual target of The Scheme has provision for collateral free Rs.16.50 lakh crore for 2021-22, agriculture credit to the working capital loan up to Rs. 10,000 for 12 months under tune of Rs.18.63 lakh crore was disbursed, registering 1st tranche, up to Rs. 20,000 for 18 months under 2nd 113% achievement. Agriculture credit target for year 2022- tranche and upto Rs.50,000 for 36 months under the 3rd 23 has been set at Rs. 18.50 lakh crore with a sub-target tranche. On timely/early repayment, the vendors will be of Rs. 1.26 lakh crore for Animal Husbandry, Dairying eligible for the next cycle of working capital loan with an and Fisheries farmer. As on 31st December 2022, Rs. enhanced limit. No penalty is payable on early repayment 13.75 lakh crore was disbursed (Provisional) against of the loan. The Scheme facilitates free on boarding of target of 18.50 lakh crore registering 74 % achievement. The Agriculture targets and achievements Source: ENSURE Portal of NABARD (Rs.crore) 247Annual Report 2022-2023 5.1 Kisan Credit Card contributed by Commercial Banks, Foreign Banks, Regional Rural Banks and Small Finance Banks in a The Kisan Credit Card (KCC) scheme was proportion indicated by RBI, with respect to banks’ introduced in 1998-99, as an innovative credit delivery shortfall in priority sector lending. The fund which started mechanism that aims at adequate and timely credit as a “last mile approach” to facilitate completion of support from the banking system to the farmers for their ongoing irrigation, flood protection and watershed cultivation needs including the purchase of inputs in a management projects during 1995-96, today covers as flexible, convenient, and cost-effective manner. Banks many as 39 activities, broadly classified under three have been advised to issue Kisan Credit Cards (KCC) to categories, viz., (i) Agriculture and related sector (ii) Social all eligible farmers. The KCC Scheme has since been Sector and (iii) Rural Connectivity. The annual allocation simplified with facilities like one-time documentation, built- of funds towards RIDF has gradually increased from Rs. in cost escalation in the limit and facility of ATM enabled 2,000 crore in 1995-96 to Rs. 40,000 crore in 2022-23. debit card etc. Under the present guidelines of KCC, the limit is sanctioned for 05 years and the beneficiaries have The cumulative funding commitment, as on ease and flexibility in withdrawl and repayment. 30.11.2022 to 31 States/UTs stood at Rs. 4.72 lakh crore (including Bharat Nirman) against which Rs. 3.67 lakh GoI has approved interest subvention @ 1.5% crore have been disbursed as of 30.11.2022. Over the on short term loans for agriculture and allied activities years, RIDF has emerged as a dependable source of which is available on an overall limit of Rs. 3 lakh per public funding of impactful rural projects. Of the total RIDF annum and subject to a maximum sub-limit of Rs. 2 lakh loans sanctioned to State Governments under various per farmer involved in allied activities related to Animal tranches since 1995-96, 27% accounted for rural roads, Husbandry, Dairy, Fisheries, Bee Keeping etc. within the 31% for irrigation, 20% for social sector, 12% for prescribed limit of Rs. 3.00 lakh availed through Kisan agriculture sector (other than irrigation) and 10% for rural Credit Card (KCC) for the F.Y. 2022-23 and 2023-24. An bridges. additional interest subvention of 3% is provided to farmers on prompt repayment of loans, which effectively reduces 5.3 Short Term Cooperative Rural Credit the rate of interest to 4%. (Refinance) Fund As announced in PM Atmanirbhar Bharat The Short Term Cooperative Rural Credit- package, over 3.86 crore farmers have been covered STCRC (Refinance) Fund was set up in NABARD in under the ongoing KCC saturation drive effective from 2008-09 with an initial corpus of Rs.5,000 crores to February, 2020 with sanctioned credit limit of about Rs. provide Short Term refinance to Cooperative Banks so 4.47 lakh crore as on 16.12.2022. At present, there are as to ensure increased and uninterrupted credit flow to 7.13 crore operative KCC accounts with a total farmers at concessional rate of interest. NABARD outstanding loan of Rs.9.38 lakh crore. provides refinance to Cooperative bank at an interest rate of 4.5 % per annum for crop loans up to Rs.3.00 lakh While ensuring convenient and cost-effective disbursed by cooperative banks at an interest rate of 7% credit delivery to farmers, the ongoing campaign will be per annum to ultimate borrowers. An allocation of instrumental in driving the rural economy and further Rs.50,000 crores (Rs.50,002.23 crores, including residual accelerating agricultural production and allied activities, allocation of earlier years) has been made for the STCRC besides enhancing the income level of farmers. (Refinance) Fund during 2022-23. As on 30.11.2022, Rs. The facility of KCC has been extended to animal 24,833.17 crores have been utilised out of STCRC husbandry and fisheries farmers in year 2019 to help them (Refinance) Fund during 2022-23. meet their working capital needs. Further, in order to cover animal husbandry and fisheries farmers, under KCC, 5.4 Short Term Regional Rural Bank (Refinance) special saturation drive in the form of weekly “District- Fund level Camp” was launched w.e.f. 15th November, 2021 The Short Term Regional Rural Bank (Refinance) for ensuring convenient and cost-effective credit delivery (STRRB) Fund was set up with an allocation of Rs.10,000 to the farmers and accelerating agriculture output. The crores in 2012-13, so as to enable NABARD to provide campaign has been extended up to 15th March, 2023. Short Term refinance to RRBs to meet their crop loan 5.2 Rural Infrastructure Development Fund lending obligations. NABARD provides refinance to RRBs (RIDF) at an interest rate of 4.5 % per annum for crop loans up to Rs.3.00 lakh disbursed by RRBs at an interest rate of 7% In the backdrop of declining public investment in per annum to ultimate borrowers. The allocation under agriculture and rural infrastructure, RIDF was instituted in NABARD during 1995-96 with an initial corpus of STRRB Fund was at Rs.15,000 crores (Rs.15,000.49 Rs.2,000 crore with the main objective of providing loans crores, including residual allocation of earlier years) during to State Governments for completing ongoing rural 2022-23. As on 30.11.2022, Rs.7,341.02 crores have been infrastructure projects. Resources to the fund are utilised out of STRRB (Refinance) Fund during 2022-23. 248Department of Financial Services V 5.5 Long Term Rural Credit Fund (LTRCF): 5.7.2 Pradhan Mantri Awaas Yojana- Gramin (PMAY-G) This fund has been set up for the purpose of providing long term refinance support to Cooperative The Government of India through the Ministry of Banks and Regional Rural Banks for their lending towards Rural Development launched ‘Pradhan Mantri Awaas investment activities in agriculture with a view to provide Yojana- Gramin’ (PMAY-G) on 1st April, 2016, with an objective to ensure “Housing for All” by 2022. A total of a fillip to capital formation in the sector. Government has 2.95 crore houses are to be constructed under PMAY-G. allocated Rs.15,000.75 crores to this fund (including During 2017-18 to 2020-21, NABARD has extended loans residual allocation of earlier years) during 2022-23. As to National Rural Infrastructure Development Agency on 30.11.2022, Rs.7,496.69 crores has been utilised out (NRIDA), a SPV of GoI, towards part funding of Central of LTRCF during 2022-23. share under the Scheme. The cumulative sanction and 5.6 Strengthening the Capital Base of NABARD release under PMAY - G as on as on 30th November 2022 stood at Rs.61,975 crores and Rs.48,819.03 crores, NABARD Amendment Act, 2018 has been respectively. notified on 19th January, 2018 which empowers the Government to increase the authorised capital of 5.7.3 Swachh Bharat Mission – Gramin (SBM-G) NABARD from Rs.5,000 crores to Rs.30,000 crores and The Government of India through the Ministry of to increase it beyond Rs.30,000 crores in consultation Jal Shakti (earlier Ministry of Drinking Water & Sanitation), with RBI as deemed necessary from time to time. This launched SBM-G on 2nd October, 2014 with the goal to will enable NABARD to potentially increase its borrowing achieve universal sanitation coverage in rural areas by in future for funding the large investments being made in 2nd October, 2019. For the construction of around 3 crore rural infrastructure in sectors like irrigation, housing, Individual House Hold Toilets, 1500 Community Sanitary universal sanitation, dairy, fisheries, etc. Complexes and Solid & Liquid Resources Management works during 2018-19, the total fund requirement towards Government of India provides equity support to Central Share was estimated at Rs.30,343 crores, out of NABARD to enable it to fulfil its lending commitment under which Rs.15,000 crores were to be raised through various Government initiatives including the flagship borrowing from NABARD. During 2018-19 & 2019-20, programmes i.e. PMAY-G, LTIF, MIF and Swacch Bharat NABARD has extended loans to National Centre for Mission. Total paid up capital as on 30.11.2022 in respect Drinking Water, Sanitation & Quality (NCDWS&Q), a SPV of NABARD is Rs.17,080 crores. of GoI, towards part funding of central share under the scheme. As on 30th November, 2022, the cumulative 5.7 Role of NABARD in Government of India sanction and release by NABARD under SBM -G stood Initiatives at Rs.15,000 crores and Rs.12,298.20 crores 5.7.1 Long Term Irrigation Fund (LTIF) respectively. The Government of India, through the Dept. of 5.7.4 Micro Irrigation Fund (MIF) Water Resources, River Development and Ganga Micro Irrigation Fund with a corpus of Rs.5,000 Rejuvenation, Ministry of Jal Shakti (earlier Ministry of crore has been operationalized from 2019-20 in NABARD Water Resources) has taken a major initiative to complete with an objective to facilitate State Govts. Efforts in various stalled major/medium irrigation projects in the mobilizing additional resources for expanding coverage country, for which a Long-Term Irrigation Fund (LTIF) was under micro irrigation and incentivizing its adoption set up in NABARD. As on 30 November 2022, against beyond provisions of PMKSY-PDMC. The cumulative the total estimated amount of Rs.77,595 crores for the sanction and release under MIF as on 30th November 99 identified projects, sanctions have been accorded by 2022 stood at Rs.4710.96 crores and Rs.2198.62 crores NABARD under LTIF to the tune of Rs.71,219.54 crores. respectively. This will facilitate in expanding micro Further, loan amount of Rs.11,217.71 crores has been irrigation to an area of 17.12 lakh ha. involving 13.06 lakh sanctioned for the Polavaram Irrigation project, farmers. Rs.1,378.61 crores for North Koel Reservoir Project, 6. Priority Sector Lending (PSL) Rs.485.35 crores for Shahpurkandi Dam and Rs.826.17 crores for Relining of Sirhind and Rajasthan Feeder under PSL guidelines are issued by the Reserve Bank LTIF. The cumulative amount released against sanction of India for compliance by all Commercial Banks, RRBs, of 99 identified projects stood at Rs.44,800.36 crores. SFBs, UCBs and LABs.The objective of priority sector Similarly, for Polavaram Irrigation project, North Koel lending (PSL) has been, inter-alia, to ensure access to Reservoir Project and Shahpurkandi Dam Project, credit to vulnerable sections of society and have adequate cumulative releases stood at Rs.10,650.15 crores, flow of resources to those segments of the economy Rs.721.22 crores and Rs.207.45 crores, respectively. which have higher employment generation potential and 249Annual Report 2022-2023 help in making an impact on poverty alleviation. Thus, of lending to non-corporate farmers does not fall the sectors that impact large sections of the population, below the system wide average of the last three the weaker sections and the sectors which are years achievement which is separately notified employment-intensive such as agriculture and micro and every year. The applicable target for lending to small enterprises are part of the priority sector. the non-corporate farmers for FY 2022-23 is 13.78% of ANBC or CEOBE whichever is higher. 6.1 With the objective of making the Priority Sector Lending norms more broad-based, the guidelines are 6.3 The outstanding priority sector advances of reviewed from time to time to align them with the emerging Public Sector Banks was Rs. 25,38,507 crore as on March national priorities. As a part of this process, the PSL 31, 2021 and Rs. 27,74,746 crore as on March 31, 2022. guidelines have been revised in 2020. The revised Outstanding advances to agriculture by PSBs amounted guidelines also aim to encourage and support to Rs. 12,16,707 crore as on March 31, 2022 constituting environment friendly lending policies/schemes and help 19.10 percent of ANBC of PSBs (Annex-I). For the to achieve Sustainable Development Goals (SDGs). quarter ended September 2022* total outstanding priority 6.2 Some of the salient features of the revised sector advances of public sector banks is Rs. 27,80,646 PSL guidelines are: crore and outstanding towards agriculture under priority sector is Rs. 12,69,507 crore. (* Provisional figures as a) To address regional disparities in the flow of reported by banks to RBI.) priority sector credit, higher weightage has been assigned to incremental priority sector credit in 6.4 Education Loan ‘identified 184 credit deficit districts’ where priority sector credit flow is comparatively low, and vice Every meritorious student should have access versa. to bank credit to pursue higher education, if they so desire. Indian Banks’ Association (IBA) had prepared the Model b) The targets prescribed for “small and marginal Educational Loan Scheme and circulated to banks in the farmers” and “weaker sections” are being year 2001. The Scheme is for all students including increased from 8% to 10% & 10% to 12% students belonging to the economically weaker sections respectively in a phased manner from 2021-22 and those below the poverty line. Indian Nationals who to 2023-24. have secured admission to a higher education course in c) Credit to new sector like Compressed Bio Gas a recognised Institution in India or abroad through an (CBG), Solar projects, credit for start-ups (up to entrance test/merit-based selection process are eligible Rs.50 crore) engaged in Agriculture & allied for educational loans under the Scheme. The Scheme activities and MSME have been made eligible has been modified from time to time keeping in view the under PSL. changing needs of the students. The latest revision to Model Educational Loan Scheme incorporating the d) Higher credit limit has been specified for Farmers changes suggested by the Department of Financial Producers Organisations (FPOs)/Farmers services (DFS) was approved by the IBA Managing Producers Companies (FPCs) undertaking Committee in its meeting held on January 15, 2021, for farming with assured marketing of their produce adoption and implementation by the member banks. at a pre-determined price. 6.4.1 Service Area Norms for Education Loans- RBI e) Credit limit has also been enhanced in case of sector like renewable energy sector, Health guidelines Infrastructure (including Ayushman Bharat) and RBI has advised the Banks on 9th November, education loan. 2012 that Service Area Norms are to be followed only in f) In order to ensure greater flow of credit to the the case of Government Sponsored Schemes, circulated farmers against pledge/hypothecation of vide their circular dated December 8, 2004 and are not agricultural produce, and to encourage use of applicable to sanction of educational loans. Hence, banks NWR/eNWR issued by warehouses registered do not reject any educational loan application for reasons and regulated by Warehouse Development and that the residence of the borrower does not fall under the Regulatory Authority, the PSL limit for loans bank’s service area. against NWRs/eNWR has been increased from Rs.50 lakh to Rs.75 lakh per borrower. 6.4.2 Performance of Education Loans g) Target for lending to Non-Corporate Farmers for The details of total outstanding education loans FY 2022-23 - All Domestic banks (other than of Public Sector Banks (PSBs) for FY 2020-21, FY 2021- UCBs) and foreign banks with more than 20 22 and FY 2022-23 (ason 30.09.2022) stood at branches are required to ensure that their share Rs.84,751.93 crores in 19,09,164 accounts. 250Department of Financial Services V Education Loan Outstanding Amount 7.2 Public Sector Insurers Sr. No. Year Loan Outstanding The Public Sector Insurance Companies (Rs. In crore) operating in the sector are as follows: 1 FY 2020-21 75,125/- (1) Life Insurance Corporation of India 2 FY 2021-22 78,544/- (2) General Insurance Corporation of India – GIC 3 FY 2022-23 84,752/- Re (Re-Insurer) (01.04.22-30.09.22) (3) The New India Assurance Company Limited Source: PSBs (4) United India Insurance Company Limited 6.4.3 Vidya Lakshmi Portal (5) National Insurance Company Limited Vidya Lakshmi Portal is a first of its kind portal (6) The Oriental insurance Company Limited providing single window for students to access information and make application for Educational Loans (7) Agriculture Insurance Company of India Limited provided by Banks. The Portal has the following features: – Specialised Insurer (Company floated by Public Sector general insurance companies along with a) Information about Educational Loan Schemes of NABARD) Banks; (8) ECGC Limited – Specialised Insurer b) Common Educational Loan Application Form for (Government of India enterprise for export credit Students; guarantee) c) Facility to apply to multiple Banks for Education 7.3 Legislative Framework governing the Loans; Insurance Sector d) Facility for Banks to download Students’ Loan The Insurance Division is responsible for policy Applications; formulation and administration of the following Acts: e) Facility for Banks to upload loan processing (1) The Insurance Act, 1938 status; (2) The Life Insurance Corporation Act, 1956 f) Facility for Students to email grievances/queries (3) The General Insurance Business relating to Educational Loans to Banks; (Nationalisation) Act, 1972 g) Dashboard facility for Students to view status of (4) The IRDA Act, 1999 their loan application (5) The Actuaries Act, 2006 h) Linkage to National Scholarship Portal for information and application for Government The Government promulgated an Ordinance namely - the Insurance Laws (Amendment) Ordinance, Scholarships. 2014 on December 26, 2014 to make amendments to Banks have been requested to give wide publicity the Insurance Act, 1938, the General Insurance Business to this Portal so that students needing education loans (Nationalization) Act, 1972 and the Insurance Regulatory can apply for it and indicate their bank of choice. and Development Authority Act, 1999 in accordance with the Insurance Laws (Amendment) Bill 2008 as reported 7. Insurance Sector by the Select Committee of the Rajya Sabha. The Ordinance was replaced by the Insurance Laws 7.1 Overview (Amendment) Act, 2015. With the coming into force of Insurance, being an integral part of the financial the Insurance Laws (Amendment) Act, 2015, the foreign sector, plays a significant role in India’s economy. Apart investment cap in an Indian Insurance Company has gone from protecting against mortality, property and casualty up from 26 per cent to 49 per cent with the safeguard of Indian ownership and control. risks and providing a safety net for individuals and enterprises in urban and rural areas, the insurance sector Recently, further amendment in the Insurance encourages savings and provides long-term funds for Act 1938, was brought by promulgating the Insurance infrastructure development and other long gestation (Amendment) Act, 2021 enacted on March 25, 2021 by projects of the Nation. The development of the insurance which the Government has further enhanced the FDI cap sector in India is necessary to support its continued from 49 per cent to 74 per cent with certain conditions in economic transformation. the terms of Indian ownership and control. 251Annual Report 2022-2023 New entrants in the insurance industry  Government of India bears the differential return, i.e. the difference between return generated by Since the opening up this sector for private and LIC and the assured return committed under the foreign investment in the year 2000, the number of scheme as interest-gap subsidy on an annual participants in the insurance industry has gone up from basis. seven (7) insurers (including the Life Insurance Corporation of India, four public sector general insurers,  Maximum Investment allowed is Rs 15,00,000. one specialized insurer and General Insurance Corporation as the national re-insurer) to sixty-seven (67)  Under the scheme, a loan of up to 75% of the insurers as on March 31, 2022 operating in the life, purchase price is allowed after completion of general, and reinsurance segments (including specialized three policy years. insurers, namely Export Credit Guarantee Corporation  As per LIC a total number of 8,61,255 subscribers Limited and Agricultural Insurance Company of India (No. of Policies 11,88,571) are being benefited Limited). As on March 31, 2022, there are 24 Life insurers under the scheme as on 30.11.2022. including one in Public Sector, 32 general insurers including four in public sector, two specialized insurers in  The Scheme is valid up to 31st March 2023 Public Sector, five Stand-Alone Health Insurers (SAHI) 7.5 Insurance Industry Statistics and 12 reinsurers including one in Public Sector. Insurance Coverage Registered Insurers and Reinsurers (As on 31.03.2022) Insurance coverage refers to the number of Type of Public Private Total lives covered under insurance for life, health and other Insurer Sector Sector insurance categories. The cumulative enrolments as on 28.12.2022 under PMJJBY is 14.82 crore and Life 1 23 24 PMSBY is 31.88 crore. In addition, as per IRDAI report General 6 20 26 during 2021-22 the General & health insurance companies have covered 52.04 crore lives under 2.26 Standalone Health - 5 5 crore health insurance policies. Personal Accident Re-insurers 1 11 12 Insurance covered a total of 115.66 crore number of lives (including PMSBY, PMJDY and IRCTC e-ticket Total 8 59 67 passengers) and 19.09 lakh lives were covered under 7.4 Insurance related Social Security Schemes: Travel Insurance policies. Apart from the two Social Security Schemes, Insurance Penetration and Insurance Density Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) (for The measure of insurance penetration and details please refer Key Schemes at para-4) the other density reflects the level of development of insurance scheme related to insurance sector is as under: sector in a country. While insurance penetration is measured as the percentage of insurance premium to 7.4.1 Pradhan Mantri Vaya Vandana Yojana: GDP, insurance density is calculated as the ratio of  Pradhan Mantri Vaya Vandana Yojana (PMVVY) premium to population (measured in US$ for convenience is offered by the Life Insurance Corporation of of international comparison). India (LIC) and supported by the Government of Globally insurance penetration and density in India, to provide senior citizens of age 60 years 2021-22 were 3.0 per cent and USD 382 for the life or more an assured minimum pension for a term segment and 3.9 per cent and USD 492 for the non-life of 10 years, linked to the price at which they purchase the pension policy. segment respectively. India India Malaysia Thailand China (2001-02) (2021-22) (2021-22) (2021-22) (2021-22) Insurance 2.7 4.2 5.3 5.4 3.9 Penetration (%) (Life:3.20 % & Non- Life: 1%) Insurance 11.5 91 600 387 482 Density (US$) 252Department of Financial Services V Life insurance industry income of Rs.6.93 lakh crore during 2021-22 as against Rs.6.29 lakh crore in the previous financial year, Post liberalization period has witnessed sharp growth in the insurance industry, more particularly in the registering a growth of 10.16 per cent (9.74 per cent life segment. Life insurance industry recorded a premium growth in previous year). New business premium underwritten for Life Insurance Industry 2021-22 Market Share New Premium Total Premium Growth Underwritten LIC 63.18% 1.99 lakh crore 3.15 lakh crore 12.98% Private Insurers 36.82% 1.16 lakh crore (Data Source : IRDAI) General insurance industry 22 as against Rs.1.99 lakh crore in 2020-21, registering a growth rate of 11.06 per cent as against 5.19 per cent The general insurance industry (including growth rate recorded in the previous year. standalone health insurers) underwrote total direct premium of Rs. 2.21 lakh crore in India for the year 2021- Premium Growth Market Share PSU 0.90 lakh crore 1.50 % 40.72 % Private Insurers 1.31 lakh crore 8.12 % 59.28 % (Data Source : IRDAI) One of the benefits of opening up of the insurance premium of the general insurance industry within India sector has been the extension of health cover to a wider (including standalone health insurance companies) in cross-section of the society. Health premium accounted 2021-22 (Rs. 63,752.97 crore constituting 32.08 per cent for 36 per cent (Rs.80,502.27 crore) of the gross direct in 2020-21). 7.6 Investments of the Insurance sector As on March 31, 2022 the accumulated total investments held by the insurance sector was: Insurance Insurance Life Insurers Public sector Insurers Sector Sector (2021-22) (2021-22) (2021-22) (2020-21) Total 54.37 49.13 91.09 % 72.19 % investments lakh crore lakh crore of total investment of total investments (Data Source : IRDAI) 7.7 Rural and Social Sector Business All the life insurers* including LIC have fulfilled their rural sector obligations for the year 2021-22. Life Insurance Private Life Insurance LIC Companies Companies Rural Sector 64.97 lakh policies 26.98% of total policies 20.73 % of total policies Obligations (22.32 %) Total lives covered 4.03 crore (19.38%) 22.05 % of total policies 11.51 % of total policies under Social sector. (*M/s Sahara India Life Insurance Co. Ltd. is not considered for this obligation as it was directed by IRDAI not to underwrite new business as per the IRDAI order dated June 23, 2017) 253Annual Report 2022-2023 All the public and private sector general insurance dated 22.12.2003 to replace the defined benefit pension companies including standalone health insurance system by defined contribution pension scheme in order companies (SAHI) have fulfilled their obligations in the to provide old age income security in a fiscally sustainable rural and social sector for the year 2021-22. The General manner and to channelize small savings into productive insurers underwrote a premium of Rs. 28,282 crores in sectors of the economy through prudential investments. the rural sector in the year 2021-22. Public Sector and It was made mandatory for all new recruits to the private insurers underwrote 26.56 per cent and 73.44 per Government service (except armed forces) with effect cent respectively of total gross premium procured in the from 01.01.2004, and has also been rolled out for all rural sector. citizens with effect from 01.05.2009, on voluntary basis. NPS has been adopted by most State Governments and 7.8 Micro insurance most of the Central and State autonomous bodies. Micro insurance being a low price-high volume Subsequently, with the passing of the PFRDA Act in 2013, business, its success and sustainability depends mainly the contributory pension system notified by the said on keeping the transaction costs down. IRDAI notification dated 22.12.2003 has been deemed to be (Obligations of insurers to Rural and Social sectors) 2015 National Pension System (NPS) w.e.f. 01.01.2004, in promulgated under Section 32B and 32C of the Insurance accordance with Section 20(1) of the PFRDA Act, 2013. Act, 1938 stipulate obligations of insurers in respect of The Scheme offers two types of accounts, namely Tier-I rural and social sector, which has also contributed and Tier-II. The Tier-I account is the Pension account, substantially to the development and promotion of micro while the Tier-II account is a voluntary withdrawable insurance products in India. account which is allowed only when there is an active Tier-I account in the name of the subscriber. Presently, a IRDAI reviewed the Micro Insurance Regulations, Government employee under NPS has to mandatorily 2005 and notified IRDAI (Micro Insurance) Regulations, contribute 10% of pay and Dearness Allowance (DA) and 2015 permitting several more entities like RBI regulated 14% of pay and DA is contributed by the Government to NBFC-MFIs, District Cooperative Banks, Regional Rural the employee’s Tier-I account. At exit on superannuation, Banks, Urban Co-operative Banks, Business subscriber would be mandatorily required to invest at least Correspondents (BCs), Primary Agricultural Cooperative 40% of the pension wealth in Tier-I to purchase an annuity Societies (PACs) and other cooperative societies to be from an Insurance Regulatory and Development Authority appointed as Micro Insurance agents facilitating better of India (IRDAI) regulated Insurance Company and a penetration of Micro Insurance business. The Regulations maximum of 60% of the accumulated corpus in the Tier also included additional policy holder protection measures. –I account is given to the individual in lump-sum. If the In micro-insurance-life, the individual new subscriber exits before superannuation or 60 years of business premium for the year 2021-22 was Rs. 297.14 age, he/ she has to invest at least 80% of the accumulated crore through 8.77 lakh new policies and the Group new balance to purchase an annuity and the remaining 20% business premium amounted to Rs. 6,048.88 crore can be withdrawn as lump sum. There are a number of covering 1,320.73 lakh lives. There were 99,961 micro benefits available to the employees under NPS. Some of insurance agents attached to life insurers at the end of the features are listed below: FY 2021-22. Total number of general insurance policies a. Unbundled NPS Architecture: issued by Micro Insurance Agents (excluding of Standalone health insurers) were 1,40,696 in the year NPS architecture consists of Point of Presence 2021-22. (PoP) and aggregators as collection and distribution arms, a Central Record keeping Agency (CRA) which maintains IRDAI has permitted Pradhan Mantri Fasal Bima the data and records, Trustee Bank to manage the Yojana (PMFBY) covering non-loanee farmers, to be banking operations, Pension Fund Managers (PFMs) for solicited and marketed by Micro Insurance Agents under generating and maximizing returns on investments of IRDAI (Micro Insurance) Regulations, 2015. Further, subscribers, Custodian to take care of the assets general insurance policies issued to Micro, Small and purchased by the Fund managers and NPS Trust which Medium Enterprises as classified in MSMED Act, 2006 holds the assets of subscribers for their benefit and under various lines of general insurance business will oversees the investment operations. also qualify as general Micro Insurance business upto Rs.10,000 premium per annum per MSM enterprise. NPS has an unbundled architecture where each intermediary has its own expertise and domain 8. Pension Sector knowledge. The Points of Presence (PoP), which are 8.1 National Pension System (NPS) authorized to open NPS accounts, receive contributions from the subscribers and remit them to the Trustee Bank The National Pension System (NPS) was (for government subscribers this function is carried out introduced by the Government of India vide notification by the nodal offices) to the credit of the NPS Trust account 254Department of Financial Services V which holds the assets/ securities for the benefit of the v. Minimum 40% of the amount is to be subscribers. mandatorily utilized for purchasing an annuity from the Annuity Service Provider The Pension Funds registered with PFRDA registered and regulated by the Insurance manage pension corpus through various schemes under Regulatory and Development Authority and National Pension System in accordance with the empanelled by PFRDA. Amount utilized for provisions of the PFRDA Act, Rules and Regulations purchase of annuity is not taxable. Further, made thereunder, agreements executed with the National amount utilised for purchase of annuity is Pension System Trust and other intermediaries under exempted from GST. NPS architecture. (B) Tier II: b. Provision for Partial withdrawal under NPS i. Contribution by the Central Government Subscribers can withdraw up to 25% of their own employees under Tier-II of NPS is now contributions at any time before exit from NPS Tier-I for covered under Section 80 C of the Income a maximum of three times during the entire tenure of Tax Act, 1961, for deduction up to Rs. 1.50 subscription under NPS for certain specified purposes lakh for the purpose of income tax at par such as marriage of children, purchase of house, medical with the other schemes such as GPF, CPF, treatment etc, after minimum of 3 years from the date of EPF, and PPF provided that there is a lock- joining. in period of 3 years. Tax Benefits presently available under NPS: (I) Freedom of choice for selection of Pension Funds (A) Tier I: and pattern of investmentto Government employees i. Subscriber is allowed an additional tax (a) Choice of Pension Fund: Vide Government deduction of Rs. 50,000/- under section Notification dated 31.01.2019, the Government 80CCD 1(B) of the Income Tax Act, 1961, in subscribers are also allowed to choose any one of the addition to the deduction of Rs. 1.50 lakhs pension funds including Private sector pension funds, as allowed under section 80 CCD (1). in the case of subscribers in the private sector. They can change their option once in a year. However, the current ii. The mandatory contribution by the Central provision of combination of the Public-Sector Pension Government for its employees covered Funds will be available as the default option for both under NPS Tier-I has been enhanced from existing as well as new Government subscribers. the existing 10% to 14% w.e.f 01.04.2019. Some State Governments have also (b) Choice of Investment pattern: The following enhanced its contribution to 14% for its options for investment choices are offered to Government employees. The additional 4% employer employees: - contribution from the Central Government  Government employees who prefer a fixed return and State Government will also be tax with minimum amount of risk have an option to exempt under 80 CCD (2) invest 100% of the funds in Government iii. To ensure parity of tax treatment between securities (Scheme G). NPS and various retirement products such  Government employees who prefer higher as General Provident Fund (GPF), returns have the options of the following two Life Contributory Provident Fund (CPF), Cycle based schemes. Employees Provident Fund (EPF) and Public (A) Conservative Life Cycle Fund with maximum Provident Fund (PPF), the limit of tax exposure to equity capped at 25% at the age of exemption under section 10(12A) of the 35 years and tapering off thereafter (LC-25). Income Tax Act, 1961, in respect of the amount withdrawn as lump sum to the extent (B) Moderate Life Cycle Fund with maximum of 40% of the total accumulated balance has exposure to equity capped at 50% at the age of been enhanced to up to 60% of the total 35 years and tapering off thereafter (LC-50). accumulated balance at the closure of The existing scheme in which funds are allocated account. With this, the entire withdrawal is by the PFRDA among the three Public Sector Undertaking now exempt from income tax. fund managers based on their past performance in iv. Interim/ Partial Withdrawal from NPS Tier I accordance with the guidelines of PFRDA for Government up to 25% of the contributions made by NPS employees will continue as the default scheme for both subscriber is tax free. existing and new subscribers. 255Annual Report 2022-2023 The status of NPS as on 30th November, 2022, is as under: Sector No. of subscribers (in lakhs) Assets Under Management(in Rs Crores) Central Government 23.43 2,45,259 State Government 59.29 4,21,996 Corporate 16.10 1,08,473 All Citizen Model 25.80 38,233 NPS Lite * 41.81 4,851 Total 166.43 8,18,812 *(No fresh registration permitted w.e.f 01.04.2015) (II) Recent developments under NPS in APY is being administered by PFRDA under the Government Sector overall administrative and institutional architecture of the NPS. Currently, the Scheme is being distributed through a) Notification of Central Civil Services more than 269 active APY service providers including all (Implementation of NPS) Rules, 2021: The banks and post offices. CCS (Implementation of NPS) Rules, 2021, have been notified by the Department of Pension and 8.2.1 The key features of APY are as under Pensioners’ Welfare (DoPPW) on 30.03.2021 for a) APY is primarily focused on workers in the Central Government employees. The said Rules, unorganised sector, however, all citizens of inter alia, stipulate the timelines for PRAN the country in the eligible category may join generation, contribution upload, deduction and the scheme remittance, including exits and withdrawals and also the provision for payment of interest on b) Any Indian citizen between 18-40 years of delayed deposits of NPS contributions and age can join through their savings bank fixation of the responsibility in case of delays in account or post office savings bank account. subscriber registration and remitting of NPS contributions. c) Minimum pension of Rs. 1000 or Rs. 2000 or Rs. 3000 or Rs. 4000 or Rs. 5000 is b) Applicability of provisions of Gazette guaranteed by the Government of India to Notification of Department of Financial the subscriber at the age of 60 years, with a Services dated 31-01-2019 on employees of minimum monthly contribution (for those Central Autonomous Bodies (CABs)- The joining at age 18) of Rs. 42 or Rs. 84 or Rs. provisions of the notification dated 31.01.2019, 126 or Rs. 168 and Rs. 210, respectively. regarding enhancement of employer contribution to 14%, choice of the pension fund and d) After the subscriber’s demise, the spouse investment pattern in the Tier I and payment of of the subscriber shall be entitled to receive compensation in case of delayed or non-deposit the same pension amount as that of the of NPS contributions for any period during 2004- subscriber until the death of the spouse. 2012, have been extended to the employees of e) After the demise of both the subscriber and CABs (covered under NPS) vide OMs dated the spouse, the nominee of the subscriber 26.08.2021 and 21.10.2021 issued by shall be entitled to receive the pension Department of Expenditure wealth, as accumulated till age 60 of the 8.2 Atal Pension Yojana (APY) subscriber. Atal Pension Yojana (APY) was launched by the f) If the actual returns during the accumulation Hon’ble Prime Minister on 9th May, 2015, and is being phase are higher than the assumed returns implemented with effect from 1st June, 2015. The for minimum guaranteed pension, such Scheme aims to provide monthly pension to eligible excess will be passed on to the subscriber. subscribers not covered under any organized pension g) The contributions can be made at monthly / scheme. APY is open to all bank and post office account quarterly / half yearly intervals through auto holders in the age group of 18 to 40 years. Under this debit facility from savings bank account/ post Scheme any subscriber can opt for a guaranteed pension office savings bank account of the of Rs 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000 and Rs 5,000 subscriber. The monthly / quarterly / half receivable at the age of 60 years. The contributions to be yearly contribution depends upon the made vary based on pension amount chosen and the intended / desired monthly pension and the age at time of enrolment. age of subscriber at entry. 256Department of Financial Services V 8.2.2. Category wise number of enrolments under Banks, State Level Bankers’ Committees APY as on 30th November, 2022: (SLBCs) & LDMs for National, State and District level focused promotion of APY Category of Banks Number of Enrolments across the country. Public Sector Banks 3,35,92,201 ii. APY Felicitation and Outreach programs at Private Banks 32,28,182 20 locations have been held in which stake- Small Finance Bank 1,29,803 holders from Banks at state/district-level have participates. Payments Bank 14,51,069 Regional Rural Banks 92,19,257 iii. Training programs are being organized, town hall meetings, regular Strategy & Review District Co-op Banks 70,116 Meetings are being conducted to increase State Co-op Banks 6,439 pension literacy. Urban Co-op Banks 25,356 iv. Several Central Ministries and State Department of Posts 3,75,845 Governments have been approached to get Total 4,80,98,268 their unorganized workforce like MNREGA workers, Self Help Groups, Asha workers, As on 30th November, 2022, the number of Aanganwadi workers covered under APY. subscribers under APY is more than 4.80 crore with contribution of Rs. 22,437 crore and AUM of Rs. 24,829 v. Periodical advertisements in the print and crores. electronic media being issued and updates 8.3 Major measures/steps undertaken to increase posted in social media like YouTube, Twitter, coverage under the Schemes: Facebook to create awareness about the scheme. (i) National Pension System vi. Information about APY is being (a) Expansion of NPS distribution channel: To disseminated through APY KI PATHSHALA expand the NPS distribution channels the YouTube channel. following steps are being taken. vii. Subscriber Awareness Program through VC i. Individual agents are being engaged for NPS have been conducted for subscribers, field distribution through Points of Presence staff, business correspondents of APY-SPs, (PoPs). in coordination with an empanelled training ii. Fintech companies like Paytm Money, ET agency. Money, Funds India & Fisdom are being engaged for NPS distribution. b) Engaging Fintechs and Banking Correspondents (BCs) for widening the outreach (b) Steps for pension literacy i. PFRDA is engaging Payment banks like i. Webinars/conference have been organized Airtel Payment Bank and Small Finance in association with various trade bodies, The banks to achieve larger enrolment Federation of Indian Chambers of Commerce & Industry (FICCI), The ii. Engagement of BCs with suitable Confederation of Indian Industry (CII) PHD incentivization is also helping in increasing Chamber of Commerce and Industry outreach of the Scheme. (PHDCCI), Merchants’ Chamber of Commerce & Industry (MCCI). c) Updating of APY mobile App ii. Financial literacy website has been hosted i. To enhance ease of availing various (www.pensionsanchay.org.in) services, features such as account details, viewing contribution made, the APY mobile (c) Publicity and media campaign App have been updated. i. Media campaign is being run by PFRDA by engaging electronic media, print media and 8.4 Mechanism put in place to measure social media. development outcomes of major schemes/ programmes implemented through the (ii). Atal Pension Yojana Department/ Division a) Promotion and pension literacy Under NPS, continuous engagements/ guidance/ i. Pension Fund Regulatory and Development training to PoPs and periodic review meetings of PoPs Authority (PFRDA) is actively engaged with are undertaken by the Authority. 257Annual Report 2022-2023 Under APY, daily MIS Data highlighting total implementing the scheme and other operational issues number of enrolments of each APY SP and each state are taken up rigorously and reviewed at regular intervals. and daily Average tracker highlighting performance with PFRDA monitors and supervises compliance respect to allocated targets in terms of Average Account related parameters in respect of functioning of PoP-NPS, Per Branch (AAPB) is obtained from CRA-NSDL for NPS-Lite and PoP-APY to ensure that subscribers’ interest analysis of performance and review of the progress of is served. Further, PFRDA periodically conducts quarterly the scheme. Similarly, the grievances faced by the review meetings with the Pension Funds to analyze their subscribers, difficulties faced by the intermediaries in performance under NPS on various parameters. 8.5 Budget provisions earmarked under various schemes are as under: Head BE 2022-23 RE 2022-23 (Proposed) Atal Pension Yojana Payment of incentive Rs. 200.00 cr Rs. 180.00 cr Atal Pension Yojana Promotional Campaign Rs. 0.01 cr Rs. 3.00 cr Atal Pension Yojana Gap Funding 0.00 Rs. 542.00 cr Swavalamban Scheme- Govt.co-contribution 0.00 Rs. 1.31 cr 8.6 Initiative taken with reference to the UbharteSitaare Programme (USP) aimed at offering development of North- Eastern Region and future export champions, a combination of equity, debt Sikkim including projects/ schemes in and technical assistance, to qualitatively and quantitatively operation and actual expenditure thereon grow their exports under the programme. Under NPS, the PoPs are advised to enroll As on November 30, 2022, the Bank has subscribers in NPS across the country including the north sanctioned an aggregate amount of USD 2.99 billion for east region. Several NPS webinars conducted for North 34 projects under Buyer’s Credit under National Export East region in association with trade bodies and PoPs. Insurance Account (BC-NEIA). Two facilities aggregating to USD 385.83 million sanctioned by the Bank are awaiting Under APY, Zone wise review meetings are approval of Committee of Direction. As on November 30, conducted PAN India for review of performance of APY 2022, under BC-NEIA, Bank has already disbursed USD SPs, SLBCs/ UTLBCs with special emphasis on North- 102.28 million during current FY. The current outstanding Eastern region by organizing regular meetings to popularize amount under BC-NEIA stands at USD 1.52 billion, which the scheme, handholding sessions etc. Further, trainings will be utilised over the years. As regards Overseas are imparted through webinars and offline mode to explain Investment Finance (OIF), during FY 2021-22, the Bank the features and benefits of APY scheme. sanctioned funded and non-funded assistance aggregating Rs.1,719 crore to 12 Indian corporates for part financing 9. Financial Institutions their overseas investments in 7 countries. From April to 9.1 Export -Import Bank of India (Exim Bank) November 30, 2022, funded and non-funded assistance aggregated Rs.2,416 crore to 10 Indian corporates for part Exim Bank has been established as a statutory, financing their overseas investments in 6 countries. As apex financial institution in 1982 under an Act of the on November 30, 2022, the Bank’s net loans and advances Parliament of India, for financing, facilitating and stood at Rs.1,27,671 crore, while the non-fund portfolio of promoting India’s international trade, for functioning as the Bank was at Rs. 15,971.27 crore. The total business the principal financial institution for coordinating the portfolio of the Bank, which stood at Rs. 2,81,345 crore as working of institutions engaged in financing export and on November 30, 2022, is estimated at Rs. 2,90,000 crore import of goods and services with a view to promoting as on March 31, 2023. the country’s international trade, and to function as a key policy-input provider to the Government of India (GOI). 9.2 India Infrastructure Finance Company Limited (IIFCL) Exim Bank offers a comprehensive range of lending and service / advisory programmes, aimed at IIFCL is a wholly-owned Government of India aiding the globalisation efforts of Indian companies. This company set up in 2006 to provide long-term financial enables the Bank to promote inclusion of a large cross- assistance to viable infrastructure projects. IIFCL has section of Indian exporters, in the opportunities being been registered with the Reserve Bank of India as Non- thrown up by globalisation. Exim Bank especially Banking Finance Company – Infrastructure Finance distinguishes itself in the areas of Project Exports, Lines Company (NBFC-IFC) since September 2013. IIFCL has of Credit (LOCs) and Overseas Investment Finance (OIF), set up three wholly-owned subsidiaries as under. which benefit a gamut of externally oriented Indian a) IIFC(UK) companies, including SMEs. The Bank has launched 258Department of Financial Services V b) IIFCL Asset Management Company Limited stakeholders. This co-ordination will be done to (IAMCL) facilitate building and improving the relevant institutions to support the development of long- c) IIFCL Projects Limited (IPL) term non-recourse infrastructure financing in The organization gives overriding priority to India including the domestic bonds and Public-Private-Partnership (PPP) projects. IIFCL provides derivatives markets. long term financing to viable infrastructure projects through a product mix of Direct Lending (SIFTI), Takeout The Board of the Institution is functioning with Finance, Refinance and Credit Enhancement. Taking its Chairperson (Shri K V Kamath), Managing Director (Shri developmental role further, IIFCL has, in FY2021-22, Rajkiran Rai G), Deputy Managing Director (Shri B S ventured into investment in Infrastructure Project Bonds Ventakesha & Ms. Monika Kalia), two Govt. Nominee and lending to Infrastructure Investment Trusts (InvITs). Directors (Shri Pankaj Jain, Secretary, M/o PNG & Ms. Sumita Dawra, Additional Secretary, DPIIT) and three On a standalone basis, till 30th November, 2022, Independent Directors. IIFCL has made Cumulative Gross Sanctions of Rs.2,02,138 crore under Direct lending, Takeout Finance The NaBFID was set up with an authorised share and Refinance scheme, InVITs and Investment in Bonds. capital of Rs. 1 lakh crore as per Budget Announcement This includes Cumulative Gross Sanctions of Rs.1,08,939 of FY 2021-22. Capital support of Rs. 20,000 crore has crore to 544 projects under Direct Lending. The Company been released to the Institution to enable it to start its has made Cumulative Disbursements of Rs. 95,928 crore business operations. A grant of Rs. 5,000 crore has also till November 2022, which includes Rs.28,915 crore under been released on 31.03.2022. NaBFID has disbursed its Refinance and Rs.16,683 crore under Takeout Finance. first loan on 29.12.2022 amounting to 520 crore. The expected credit pipeline for FY 2022-23 is Rs. 63,000 crore. 9.3 National Bank for Financing Infrastructure and Development (NaBFID) 9.4 National Housing Bank (NHB) National Bank for Financing Infrastructure and The National Housing Bank (NHB) is a Development is infrastructure focused development development financial institution, established in 1988, financial institution (DFI) established in pursuance of under the National Housing Bank Act, 1987 (Central Act announcement made in Union Budget 2021-22. The no. 53 of 1987). NHB operates as the principal agency to Institution was established to support the development promote housing finance institutions and to provide of long-term infrastructure financing in India. Reserve financial and other support to such institutions. NHB’s three Bank of India (RBI) has advised that NaBFID shall be broad functions are Supervision of Housing Finance regulated and supervised by RBI as an All India Financial Companies (HFCs), Financing and Promotion & Institution (AIFI). Development. NHB provides finance to the housing sector through two windows namely Refinance and Project NaBFID has both financial and developmental objectives: Finance. NHB’s business includes refinancing individual housing loans of HFCs, SCBs, Regional Rural Banks and a) The financial objective of the Institution shall be Small Finance Banks (SFBs) and financing public agencies to lend or invest, directly or indirectly and seek and public private partnerships for their housing projects. to attract investment from private sector investors and institutional investors, in infrastructure 9.4.1 Refinancing projects with a view to foster sustainable Till 30.11.2022, National Housing Bank has economic development in India. disbursed cumulative refinance of Rs. 3,27,491 crore, b) The developmental objective of the Institution out of which Rs. 33,254.13 crore has been disbursed shall be to co-ordinate with the Central and State under Affordable Housing Fund. The details of refinance Governments, regulators, financial institutions, activities undertaken by NHB during FY 2021-22 and institutional investors and such other relevant FY2022-23 (till 30.11.2022) are as below: (Rs. in crore) FY2021-22 (01.07.2021 – 30.06.2022) FY2022-23 (01.07.2022 – till 30.11.2022) Business Groups Outstanding Outstanding as on Sanction Disbursement as on 30-06- Sanction Disbursement 30-11-2022 2022 Institutional Finance 2,088.00 1,685.60 10,187.94 6,450.00 472.00 9,463.80 (Refinance) - Banks Institutional Finance 20,242.00 17,627.27 63,744.72 21,885.00 5,514.56 62,530.78 (Refinance) - NBFC (HFCs) Total 22,330.00 19,312.87 73,932.65 28,335.00 5,986.56 71,994.58 259Annual Report 2022-2023 9.4.2 Supervision  Bank projects further tentative sanctions amounting to Rs.4,000 crores and tentative  A stronger supervisory framework was put in disbursements amounting to Rs.30,000 crores place with a dedicated Supervision Team. during the period December, 2022 to March, 2023.  Off-site supervision was strengthened with introduction of Early Warning Signals (EWS) & 9.5 Small Industries Development Bank of India Automated Data Flow (ADF) successfully (SIDBI) implemented at Top 20 HFCs covering 94% Small Industries Development Bank of India has business of HFCs. been established under an Act of the Parliament in April  NHB actively engaged with RBI for a smooth and 02, 1990. SIDBI is mandated to serve as the Principal seamless transition of regulation of HFCs to RBI. Financial Institution for executing the triple agenda of 9.4.3 Promotion & Development Promotion, Financing and Development of the Micro, Small and Medium Enterprises and coordination of the  During April 2022 to November 2022, NHB, as a functions of the various Institutions engaged in similar Central Nodal Agency under PMAY-CLSS (U), activities. disbursed subsidy amounting to Rs.2,290 crore to 0.91 lakh households under PMAY-CLSS for 9.5.1 Operational Highlights during FY 2021-22 EWS/LIG. Despite the challenges posed by the pandemic,  To track the movement in prices of residential the Bank has continued its growth trajectory during the properties in 50 select cities, NHB published NHB fiscal. Key financial highlights are as below: RESIDEX, on a quarterly basis till September, 2022.  Bank has taken a step forward for creating a  Asset Base of the Bank stood at Rs.2,47,379 crore centralized repository of data on Housing finance at the end of FY 2022, a Y-o-Y growth of 29%. which provides a seamless way to Primary  Loans and Advances stood at Rs.2,02,252 crore Lending Institutions to share data on Housing at the end of FY 2022, a Y-o-Y growth of 29%. finance with NHB, known as the Housing Finance Repository (HFR) portal.  Net Interest Income for FY 2022 stood at  Under the aegis of “Azadi ka Amrit Mahotsav” Rs.3,012 crore, with Net Interest Margin at 1.5%. (AKAM), NHB organized several Outreach Programmes.  Bank registered Net Profit of Rs.1,958 crore during FY 2022. 9.4.4. Financial Highlights 9.5.2 Financing during FY 2021-22  Bank posted a Net Profit of Rs.1920 crore for the year (July 2021-June 2022) with ROA of SIDBI extends assistance to MSMEs directly and 2.33%, ROE of 19.35% and Capital Adequacy indirectly. Under indirect route, SIDBI extends Refinance Ratio (CRAR) of 16.02%. Banks Gross NPA ratio assistance to banks, NBFCs, MFIs, etc. (Institutional stood at 2.07%. Finance) against their lending to MSEs. This helps in 9.4.5. Projections/estimates for the period from creating multiplier effect and results increase in flow of 01.12.2022 to 31.03.2023 credit to MSMEs. Under Direct Finance, SIDBI extends financial assistance by way of term loan, working capital,  Bank has disbursed a cumulative amount of etc. directly to MSMEs. Brief of Financial assistance Rs.6,016.56 crore during the FY 2022-23 (July- extended by SIDBI is given below: June) as on 15-12-2022. (Rs in crore) Business FY2021 FY2022 Outst. Groups Growth % Sanction Disb. Outstanding Sanction Disb. Outstanding Direct Credit 4746 4007 11581 6760 5673 14187 23% Institutional Finance 81637 81637 131664 122781 122335 166832 27% (Refinance) -Banks NBFC 7562 7802 11292 13178 12677 17935 59% MFI 2717 2583 1672 4178 2893 3118 86% Cluster Dev. - - - 1038 180 180 - Total 96662 96029 156209 147935 143758 202252 29% 260Department of Financial Services V Institutional Finance accounts for approximately 9.6 Industrial Finance Corporation of India (IFCI) 93% of loans & advances of the Bank. Outstanding under IFCI Limited (IFCI) was set up as a Statutory Institutional Finance was at Rs.1,87,885 crore at the end Corporation (“The Industrial Finance Corporation of of FY 2022 which includes refinance to Banks & Small India”) in 1948, as independent India’s first Development Finance Banks (SFBs), Assistance to Non-Banking Financial Institution, for providing medium and long term Financial Companies (NBFCs) and Assistance to finance to industry. In 1993, after repeal of the IFCI Act, Microfinance Institutions (MFIs). IFCI became a Public Limited Company, registered under During FY 2022, in-principle commitment of the Companies Act, 1956. IFCI is also registered with Rs.5968.50 crore was made by SIDBI to 11 States and 1 the Reserve Bank of India (RBI) as a Systemically UT, from RBI’s allocation of Rs 7,000 crore under Cluster Important Non-Deposit taking Non-Banking Finance Development Fund (CDF) Scheme to extend Company (NBFC-ND-SI) and is also a notified Public concessional assistance to State Governments/ UTs to Financial Institution under Section 2(72) of the create infrastructure for development/growth of MSME/ Companies Act, 2013. IFCI became a Government clusters. As on March 31, 2022, financial assistance was Company in April 2015 and as on date, the shareholding sanctioned to 5 States against 37 projects (34 Greenfield of GoI stands at 66.35% of paid-up capital of IFCI. and 3 Brownfield Projects) for an aggregate amount of 10. Measures taken during COVID-19 pandemic Rs.1038 crore. Total disbursement of Rs.180.82 crore was made under SIDBI CDF, against 22 projects. 10.1 Emergency Credit Line Guarantee Scheme (ECLGS) During the current FY, though the entire fund remains committed in-principally, formal sanctions to the  Emergency Credit Line Guarantee Scheme tune of Rs.1,054 crore were accorded to 28 additional (ECLGS) was launched in May, 2020 as part of projects. As on 30th December, 2022, commutatively, 8 Aatmanirbhar Bharat Abhiyaan to support eligible State Governments and 1 UT have been sanctioned Micro, Small and Medium Enterprises (MSMEs) Rs.2092 crore against 65 projects and total disbursement and business enterprises in meeting their made is Rs.757 crore. operational liabilities and restarting their businesses in context of the disruption caused 9.5.3 Promotion & Development by the COVID-19 pandemic. A slew of initiatives has been undertaken under  This scheme covers all the sectors of the promotion & development operations for kindling economy. Under ECLGS, 100% guarantee is entrepreneurship in youth, and towards inclusive and provided to Member lending Institutions (MLIs) innovative engagements for reaching out to micro- in respect to the credit facility extended by them entrepreneurs and budding entrepreneurs in the to eligible borrowers. In view of the evolving underserved segment. Some of the key initiatives include situations in the light of Covid waves and its effect Swavalamban Challenge Fund (SCF) & Swavalamban on the various sectors of the economy, scope of Connect Kendras (SCKs). Project Management Units the scheme has been extended many times in (PMUs) have been set-up in total 16 states (including 11 the form of additional credit and expanded scope which were set up in FY 2021), for closer engagement of eligible borrowers, by the introduction of with states to strengthen MSME ecosystem along with ECLGS 2.0, 3.0 and 4.0 as well as changes from transferring the good practices among the states, in line time to time. with the UK Sinha Committee recommendations.  Post the Budget announcement of Union Budget 9.5.4 Digital Enablers 2022-23, validity of the scheme has been extended upto 31.3.2023 and limit of admissible The maturing, highly successful and user-friendly guarantees has been increased from Rs. 4.5 lakh digital ecosystem like Aadhar, UPI payment system, GST, crore to Rs. 5 lakh crore, with the additional open API system, Regulatory Sandbox framework, Open amount is specifically earmarked for enterprises Credit Enablement Network (OCEN), Account Aggregator in hospitality and related sectors. (AA) framework, etc. have helped increasing the pace of digitization of financial services including credit delivery.  Recognising that an efficient and strong civil SIDBI used digital solutions to power several MSME aviation sector is vital for the economic ecosystem solutions underlining its digital prowess. development of the country, ECLGS was Various digital initiatives undertaken by the bank include modified in October, 2022 to enhance the Stand Up Mitra & Udyamimitra Portals (Twin Portals), maximum loan amount eligibility for airlines “PSB Loans in 59 Minutes” Platform, Open Network for under ECLGS 3.0 to 100% of their fund based Digital Commerce, GST Sahay Project. MSME or non-fund-based loan outstanding as on the reference dates or Rs. 1,500 crore per borrower, Formalisation project, Blockchain based wholesale whichever is lower; and of the above, Rs. 500 lending security sharing and MSME FIT Rank. 261Annual Report 2022-2023 crore shall be considered, based on proportionate Scheduled Commercial Banks (SCBs). Important equity contribution by the owners. features of the Scheme are as under:  The validity of ECLGS has been extended upto  The Scheme is applicable to all loans sanctioned 31.03.2023. As informed by National Credit up to 31.03.2023, or till an amount of Rs. 50,000 Guarantee Trustee Company Limited (NCGTC), crores is sanctioned, whichever is earlier. as on 16.12.2022, loans amounting to Rs 3.71  Credit facilities will be sanctioned up to Rs. 100 lakh crore have been sanctioned under the crores per project in the form of fund based and scheme, benefitting about 1.19 crore borrowers. non-fund-based facilities. 10.2 Loan Guarantee Scheme for Covid affected  The scheme shall provide credit guarantee of 50 Sectors (LGSCAS) per cent to all brownfield projects and of 75 per The Government of India has introduced Loan cent to all greenfield projects to be set up at the Guarantee Scheme for Covid Affected Sectors (LGSCAS) centres other than Metropolitan cities (8 in with a corpus of Rs. 2,000 crores for providing credit number). For aspirational districts, the guarantee guarantee coverage to projects under healthcare sector. cover for both brownfield expansion and The brief of provisions under the Scheme are as under: greenfield projects shall be 75%.  Loan Guarantee Scheme for Covid Affected  Interest rate under the Scheme is capped at 7.95% p.a. Sectors (LGSCAS) has been launched with a corpus of Rs.2,000 crores to provide financial  No Guarantee Fee shall be charged by NCGTC (credit) guarantee cover for brownfield expansion from SCBs under the Scheme. and greenfield projects related to health/ medical infrastructure. The aforesaid credit guarantee As informed by National Credit Guarantee Trustee would be provided by National Credit Guarantee Company Limited (NCGTC), as on 16.12.2022, the status Trustee Company Limited (NCGTC) to of loan sanctioned/disbursed is as under: Sanctioned Amount Disbursement Amount Project Type Number of Units (Rs. in Cr) (Rs. in Cr) Brownfield Project 507 1723.51 481.46 Greenfield Project 1182 6284.66 1091.92 Total 1689 8008.17 1573.38 10.3 Credit Guarantee Scheme for Micro Finance  The Scheme is expected to benefit around 25 Institutions (CGSMFI) lakh small borrowers. The Credit Guarantee Scheme for MFIs  The Interest rate on loans from SCBs to NBFC- MFIs and MFIs for this purpose would be capped (CGSMFI) was launched in June, 2021 as part of the at 1-year Marginal Cost Based Lending Rate Economic Relief Package announced to support Indian (MCLR) + 2% p.a. economy in fight against COVID-19 pandemic. The brief of provisions under the Scheme are as under.  On lending is being provided by NBFC-MFIs and MFIs to small borrowers at an Interest rate which  It is guarantee Scheme for loans by Scheduled is at least 2% below the maximum rate prescribed Commercial banks (SCBs) or other by RBI on such loans. Institutions (as decided from time to time) to NBFC-MFIs and Micro Financial Institutions  80% of the assistance provided by NBFC-MFIs (MFIs) in the country for onward lending to and MFIs under the Scheme would be for creation of fresh loan assets and not for small borrowers. repayment of earlier loans.  Guarantee upto 75% for a maximum period of 3  All existing or new small borrowers (not in default years. for more than 90 days) within the regulatory definition of micro finance as prescribed by RBI  The Scheme operationalised w.e.f. 15.07.2021. are eligible to avail the Scheme. It was valid till March 31, 2022 or till guarantees for an amount of Rs.7,500 crore are issued,  No guarantee fee would be charged by NCGTC whichever is earlier. for this Scheme. 262Department of Financial Services V  As informed by National Credit Guarantee have been sanctioned under the scheme as per Trustee Company Limited (NCGTC), as on details as under: 31.03.2022, loans amounting to Rs 10,000 crores (Amount in Rs. crore) Sanction by MLIs Disbursement No of Sanctioned by MFI Disbursement by MFIs to to MFI reported by MLIs to MFI Beneficiaries to Small Borrowers Small Borrowers as by NCGTC as on reported by under CGPAN as as reported by reported by NCGTC 31.03.2022 NCGTC as on reported by NCGTC 31.03.2022 NCGTC as on 30.09.2022 Amount Amount 10,000 9,765.04 24,28,127 9,478.89 9,464.44 11. Representations from SCs, STs, OBCs and officer, Director, Under Secretary and Section Officer in PWDs in financial sector institutions. the discharge of his functions. The Vigilance Section in the DFS deals with, inter alia, the following matters Department of Personnel & Training (DoP&T) in pertaining to PSBs, PSICs and FIs: - the Ministry of Personnel, Public Grievances and Pension, is the Nodal Department for implementation of the a. Consultation with CVC/CTE/CBI on matters relating reservation policy for Scheduled Castes (SCs) & to complaints, vigilance clearance, sanction of Scheduled Tribes (STs) in the Government of India. prosecution and any other matter of -; Instructions regarding reservation in recruitment and promotion are issued by DoP&T from time to time. (i) Board level appointees of PSBs, FIs, PSICs, Department of Financial Services (DFS), circulates these PFRDA, IRDA and RBI. instructions to the Public Sector Banks (PSBs), Public Sector Financial Institutions (PSFIs), Public Sector (ii) All officials in the Department of Financial Insurance Companies (PSICs), Reserve Bank of India Services, officers of office of Custodian and (RBI), Insurance Regulatory and Development Authority Government officials in DRTs/ DRATs. of India (IRDAI) and Pension Fund Regulatory and Development Authority (PFRDA) for implementation. b. Appointment of CVOs in PSBs, FIs and PSICs. These organizations implement the reservation 12.1.1 Performance policies issued by DOP&T from time to time, after adoption by their respective Board of Directors. Similarly, a) The Vigilance Division of the Department the instructions issued by DOP&T from time to time, on monitors the progress on disposal of complaints the welfare of SCs/STs category employees, are also received from various sources and pendency of circulated to all PSBs, PSFls, PSICs, RBI etc for disciplinary / vigilance cases regularly and holds implementation.The date of implementation of meeting with CVOs in this Department at Reservation policy for SCs/STs in Direct Recruitment is appropriate intervals. the date on which the Banks were nationalized or constituted. In Promotion, the date of effect is 01.01.1978 b) Instructions have been issued from time to time or from the date on which the Bank came into existence, as and when any gap in the system is observed whichever is later to strengthen the preventive vigilance in these organisations. Details of representations from SCs/STs/OBCs and Persons with Disabilities (PWDs) in Public Sector c) Vigilance Awareness Week was observed from Banks / Financial Institutions and Insurance Companies 31.10.2022 to 04.11.2022. is at Annexure I & II respectively. 13. Special Court 12 Vigilance The Special Court (Trial of offences relating to Department of Financial Services (DFS) is the Transactions in Securities) Act, 1992 came into force on Administrative Department for Public Sector Banks 06.06.1992. The Act was necessitated by reasons of the (PSBs), Public Sector Insurance Companies (PSICs) and unprecedented situation wherein very large amount of Financial Institutions (FIs). An Additional Secretary level public monies had been siphoned off into private pockets. officer has been designated as Chief Vigilance Officer of The legislature sought to set up a Special Court through the Department. He is assisted by Joint Secretary level 263Annual Report 2022-2023 this Act for (a) speedy trial of offences (b) immediate the Custodian and 13341 cases have been disposed of attachment and freezing of all assets of parties suspected by the Special Court, leaving a balance of 76 cases for to be involved in the scam and (c) a reasonable and their disposal as on 30th November, 2022. The total equitable distribution of the property. outstanding liabilities of notified parties were for Rs.41,976 crore as against the assets to the tune of Rs.5,424 crore, The Special Court, at present, has one sitting out of which Rs.1118 crore are non-recoverable assets. Judge on its strength. To support their day to day Till 30th November 2022, Rs.11,532 crores (approx.) has functioning, the office of the Special Court functions with been recovered by the Custodian and out of these assets, a staff of 26 officials at various levels. These are renewed Rs.7,138 crore has been distributed to Income Tax on a year-to-year basis by DFS, Ministry of Finance with Department, Banks and others. the approval of IFU. As on 05.12.2022 a total number of 15 Debt Recovery Appellate Tribunal/Debt pending matters in the Special Court are 86 which Recovery Tribunal includes, Suits and Special Cases (Criminal). a. Mandatory e filing of cases amounting to Rs 100 14. Office of the Custodian crore and above To assist the Custodian in discharging the duties Notification dated 22.07.2021 issued by the under the Special Court (TORTS) Act, 1992, at present Department whereby e-filing of cases amounting to Rs there are two offices functioning at New Delhi and at 100 Crore or above has been made mandatory before Mumbai. The Delhi office handles the Administration and DRTs. Establishment matters of both the offices of Custodian and also deals with Supreme Court cases. The Mumbai The e-filing of cases would enable the banks and Office mainly deals with the Court matters of Special financial institutions to file the cases online. The filing of Court, which is presided over by a sitting Judge of Hon’ble cases would be easier through e-filing as the documents Bombay High Court. Apart from that Mumbai Office also can be uploaded on the website and would be easily manages attached properties of notified persons involved accessible while virtual hearing of the cases. The online in security scam. The sanctioned strength of the Office submission of fee would be an easier option for the of the Custodian has been reduced from 29 to 18 litigants. Even if the last date of limitation is approaching, (excluding the post of Custodian) with effect from with the facility of e-filing the cases can be filed within the 01.03.2022. The charge of Custodian has also been given limitation period and there will be no delay in filing the to a Joint Secretary level Officer of Department of cases. Financial Services with effect from 11.04.2022. b. The details of application filed and disposed in Since inception, a total of 13417 cases were filed DRTs during the period from 01.04.2022 to 20.12.2022 in the Special Court, which were defended/contested by are as under: - Applications Filed during the period from 01.04.2022 Disposed of 01.04.2022 to to 20.12.2022 20.12.2022 OA 32753 20787 SA 15827 9700 Total 48580 30487 c. Recovery effected by Debts Recovery Tribunals increased their efficiency. It has enabled the Tribunals to (DRTs) in the Financial Year 2022-23 (up to 30.11.2022) ensure online availability of case related information. Further, e-filing of cases by the litigants has also been As per the provisional data made available by all enabled in e-DRT software from 24.01.2020, with the DRTs, a recovery of Rs. 4,953.89 crore has been made provision of online court fee payment using the by DRTs in the Financial Year 2022-23 (upto 30.11.2022). BharatKosh Payment Gateway. d. e-DRT Project During the financial year 2022-23, following new The e-DRT project to digitize the functioning of features have been introduced which are as under: - all 39 Debts Recovery Tribunals (DRTs) and 5 Debts Recovery Appellate Tribunals (DRATs) has been  Helpdesk support for e-DRT system has been enabled for the convenience of the users/litigants. implemented by Department of Financial Services (DFS) This allows the users to register their complaints/ through National Informatics Centre (NIC). The e-DRT project has automated the full cycle of workflow of DRATs problems/suggestions relating to the use of e- and DRTs, which has brought transparency and has also DRT system. It helps in getting feedback 264Department of Financial Services V regarding the services for making suitable Websites (GIGW) requirement was undertaken by modifications in the system for smooth operation Standardisation Testing and Quality Certification (STQC) of the e-DRT portal. and the certificate on the same was issued to this Department.  Chatbot has been enabled which act as automated virtual assistant to reply to the queries (c) Cyber Crisis Management Plan raised by the users through text messages. The purpose of Cyber Crisis Management Plan  MIS reports are being generated for effective (CCMP) is to establish the strategic framework and monitoring and functioning of DRTs/DRATs. actions to prepare for, respond to and begin to coordinate Search option has been enabled in e-DRT recovery from a cyber incident. CCMP has been put in system to extract information relating to case place in this Department in October, 2020 and had been details of applicants/respondents. duly updated for the year. 16 Information Technology and Cyber Security 17 Disposal of Public Grievances Key initiatives of the Department of Financial (a) Timely redressal of public grievances relating to Services in the year 2022-23 are as below: banking and insurance sectors is an important tool (a) Identification of Critical Information towards upgrading the quality of customer service in this Infrastructure in financial sector. very crucial segment of financial sector. This is achieved through the CPGRAMS. Department of Administrative Critical Information Infrastructure (CII) has been Reforms and Public Grievances (DARPG) has defined in the Information Technology Act, 2000 as the established CPGRAMS (Centralised Public Grievance computer resource, the incapacitation or destruction of Redressal and Monitoring System), (an online web-based which shall have debilitating impact on national security, system), to resolve public grievances. economy, public health or safety. With a view to identifying CII in the financial services sector, this Department plays (b) The maximum permissible time for resolution of a pivotal role in coordinating with Regulators (Reserve grievances permitted earlier was 45 days which is now Bank of India, Insurance Regulatory and Development reduced to 30 days by Department of Administrative Authority of India & Pension Fund Regulatory and Reforms and Public Grievances (DARPG) vide its Office Development Authority) and NCIIPC for identifying and Memorandum dated 27.07.2022. Same was notification of critical infrastructure of regulators as also communicated to RBI/IRDAI/ All PSBs/PSICs/FIs vide its regulated entities. To streamline the process of this Department letter dated 05.08.2022 for taking identification of CII within financial services sector and to necessary action. Regular monitoring of adherence to build a clear roadmap and pipeline for identification of time lines is done by Department of Financial Services. CIIs in banking, insurance and pension sector, a Standard (c) In Department of Financial Services, a large Operating Procedure (SOP)has been put in place, in number of grievances/complaints concerning Banking consultation with NCIIPC. As of now, Real Time Gross Settlement (RTGS) System, National Electronic Fund and Insurance Sectors are received directly from citizens, Transfer (NEFT) System and e-Kuber System of RBI, both online and by post. The postal grievances are also Core systems of NPCI, State Bank of India, Life Insurance digitized and processed through CPGRAMS for its Corporation of India, ICICI Bank, HDFC Bank, Punjab onward transmission to the designated Nodal Officers National Bank, Bank of Baroda, Union Bank of India, i.e. Deputy General Manager/General Manager (DGM/ Kotak Mahindra Bank, Canara Bank and Axis Bank were GM) of concerned Public Sector Banks/Public Sector notified as protected systems. Insurance Companies (PSBs/PSICs) for its redressal within a maximum time limit of 30 days. These directions (b) Website security & quality audit are followed by all organisations under the Department Web Application Security Audit of this of Financial Services. Action taken reports are uploaded Department’s Website, which is conducted annually has on the system and a scanned copy of the reply is provided been completed by Indian Computer Emergency to the complainant that can be viewed by the complainant Response Team (CERT-In) empanelled auditor and the online. Replies through post are also sent to those certificate of the same has been issued to this complainants who have lodged their grievances Department. Website quality Certification of this physically. In addition, a dedicated Grievance Handling Department’s website [under E-Government Cell has been set up in the Department, which is Development Index (EGDI) exercise], conducted every accessible at the Telephone No. 23346785 and email three years as per Guidelines for Indian Government address sobo3-dfs@nic.in. 265Annual Report 2022-2023 (d) The Banks and Insurance Companies have grievance (e) IRDAI has set up IRDAI Grievance Call Centre redressal mechanism in place and are also hosted on their (IGCC) which receives complaints through a toll-free respective websites. The first level of grievance redressal telephone number and by email and registers complaints is Branch Manager in Banks and Insurance Companies apart from furnishing the status of the resolution. IRDAI followed by Zonal Managers and then General Manager has put in place the Integrated Grievance Management (Customer Care) in Head Office. The grievances System (IGMS) as an online system for grievance concerning private banks and private insurance companies management that is not only a gateway for registering are resolved through Reserve Bank of India (RBI) and and tracking grievances online but also act as an Insurance Regulatory and Development Authority of India industry-wide grievance repository for IRDAI to monitor (IRDAI), respectively. The PSBs have also established Ombudsman for settlement of grievances. disposal of grievances by insurance companies. Life Private Life LIC General Private Public General Insurance Insurance Insurance Insurance General Companies Companies Companies Companies Insurance Companies Grievances 99.92 % 99.72 % 99.98% 97.44% 97.22% 97.78% Resolved (f) The Reserve Bank of India (RBI) has launched ‘The the administrative control of nine-member body i.e. Reserve Bank Integrated Ombudsman Scheme, 2021’ Council for Insurance Ombudsmen (CIO), which has on 12.11.2021. The Scheme integrates the existing three been constituted under the Insurance Ombudsman Rules, Ombudsman Scheme of RBI namely – (i) the Banking 2017. The object of these Rules is to resolve complaints Ombudsman Scheme, 2006 (ii) the Ombudsman Scheme of all personal lines of insurance, group insurance for Non-Banking Financial Companies, 2018 and (iii) the policies, policies issued to sole proprietorship and micro Ombudsman Scheme for Digital Transaction, 2019. In enterprises on the part of Insurance companies and their addition to integrating the three existing schemes also agents and intermediaries in a cost effective and impartial includes under its ambit Non-Scheduled Primary Co- manner. operative Banks with a deposit size of Rs.50.00 crore (h) In case the petitioners are not satisfied with the and above. The scheme adopts “One Nation One kind of disposal by the concerned Banks/Insurance Ombudsman mechanism”. Companies, they can file their complaints with the (g) There are 17 Insurance Ombudsman set up by Ombudsmen concerned for the settlement of their IRDAI. The Offices of Insurance Ombudsman are under grievance through mediation and passing of awards. The status of complains in Insurance Ombudsman as of March 2022 is as below: Source: Annual report of CIO 2021-22 266Department of Financial Services V (i) As per CPGRAMS database the details of receipt, disposal and pending grievances during the period 01.04.2022 to 30.11.2022 in respect of banking and insurance sectors are as follows: Sector Brought Received Disposed Pending as on % of Disposal Less More Forward 30.11.2022 as on than 30 than 30 days 30.11.2022 days old old Banking 8028 173088 172794 8322 95.40% 7593 729 (Pg) Insurance 1025 22485 22693 817 96.52% 774 43 (Pg.) Total 9053 195573 195487 9139 95.53% 8367 772 (j) As per CPGRAMS database the details of receipt, disposal and pending grievances during the period 01.04.2022 to 30.11.2022 in respect of banking and insurance sectors for COVID-19 grievances are as follows: Sector Brought Received Disposed Pending as on % of Disposal More than 3 Forward 30.11.2022 as on days old 30.11.2022 Banking 132 6698 6700 130 98.10% 119 Insurance 20 958 972 6 99.39% 4 Total 152 7656 7672 136 - 123 (k) In January 2021, DARPG has started Appeal Joint Director in DFS have been nominated as Appellate Mechanism in CPGRAMS wherein the customers who Authorities assigning specific organizations (PSBs/ are not satisfied with the resolution of their grievance PSICs/FIs/IRDAI/RBI) under control of DFS for monitoring and disposing of the appeals. canappeal for review by higher Authorities. Since there was provision of creation to Sub-appellate authority, a (l) As per CPGRAMS database (Appeal Portal) the Sub-appellate authority was created in all PSBs/PSICs/ details of receipt, disposal and pending appeal during FIs/ IRDAI/RBI and at each Section level in DFS. In view the period 01.04.2022 to 30.11.2022 in respect of banking of large number of appeals, Directors/Deputy Secretary/ and insurance sectors for Appeal are as follows: Sector Brought Received Disposed Pending as on % of Disposal Less More Forward 30.11.2022 as on than 30 than 30 30.11.2022 days old days old Banking 2142 32111 33401 852 97.51% 807 45 Insurance 141 3690 3677 154 95.98% 149 5 Total 2283 35801 37078 1006 97.36% 953 50 18 Right to Information (RTI) Act, 2005 During FY 2021-22, 7457 RTI Applications and 261 First Appeals were received on various matters Coordination section in Department of Financial related to Banking, Insurance and pension. All the Services is the nodal section for implementation of the applications and appeals were replied/disposed of within RTI Act, 2005. The applications received under the RTI the stipulated time as prescribed under the RTI act, 2005. Act, 2005 are disposed by the Central Public Information Officers (CPIOs) and the Appellate Authorities (AAs) Section 4 of the RTI Act casts an obligation on every public authority to make certain suo-moto designated for each of the sections of this Department. disclosures on its website. DFS has also made such suo- As per RTI Act, any citizen can seek information moto disclosures on its website, regarding information under RTI by making an appropriate application in writing on various functions, powers and duties etc. with respect along with the prescribed fees to the Central Public to DFS. Information Officer, Department of Financial 19 Audit Paras Services,3rdFloor, Jeevan Deep Building, Parliament Street, New Delhi-110091 and/or can also file an RTI A summary of Audit observations made under RTI Act, 2005, on Online Portal available at available by the Office of C&AG pertaining to DFS is at www.rtionline.gov.in Annexure-III. 267Annual Report 2022-2023 268Department of Financial Services V 269Annual Report 2022-2023 270Department of Financial Services V 271Chapter - VI Department of Public Enterprises Department of Public Enterprises (DPE) 1 Public Enterprises Survey 2.1.1 Chairperson cum Managing Director: The Department of Public Enterprises brings out the Appointment of CMD on the Board of CPSE is made by Public Enterprises Survey on the performance of Central the concerned administrative Ministry on the basis of Public Sector Enterprises (CPSEs), which is laid in the recommendations of Public Enterprises Selection Board Parliament every year. (PESB) after obtaining approval of competent authority and after completing due formalities in this regard. As per PE Survey 2021-22 there were 389 Central Public Sector Enterprises under the administrative control of 2.1.2 Government Directors: various Ministries/ Departments as on 31.3.2022. Out of The Government Directors are generally senior officers 389 CPSEs, 248 are in Operation of which 188 CPSEs of the Government of India, State Government(s) or other showed profit during 2021-22, 59 CPSEs incurred losses Government agencies who are nominated to the Boards during the year, and 1 CPSE has no profit no loss. The of CPSEs by the concerned administrative Ministries in ‘Net Profit’ of 188 profit making CPSEs was ` 2.64 Lakh ex-officio capacity. The dual role of a Government Director crore in 2021-2022 and the ‘Net Loss’ of 59 loss making is clearly demarcated i.e. as a Director of the company CPSEs stood at ` (-) 0.15 Lakh crore during the year. and representative of the Government. As Director of the The profit of profit making CPSEs increased by 39.85% company, they are bound to exercise due diligence and and the total loss of loss making CPSEs declined by act in the best interest of the company keeping in view 37.82% during Financial Year 2021-22. The overall Net the provisions of the Companies Act 2013. Government Profit of the 248 operating CPSEs increase by 50.87% being the major shareholder in CPSEs, they are also to ` 2.49 lakh crore in 2021-22 from `1.65 lakh crore in required to protect its interest. In doing so, they can take 2020-21. The contribution of CPSEs to the Central formal instructions from the Government on critical issues Exchequer increased from ` 4.97 lakh crore in 2020-21 and voice them in the meetings of the Board of the to ` 5.07 lakh crore in 2021-22. company. They are required to provide timely feedback A comparison of performances of CPSEs during 2021- on decisions taken by the company to their administrative 22 vis-a-vis the previous year i.e. 2020-21, 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. 273Annual Report 2022-2023 viz Operations, Finance, Marketing, Human Resources 2.2 Maharatna Scheme etc. The functional Directors are appointed on the Boards The main objective of the Maharatna scheme which was of CPSEs by the concerned administrative Ministry on introduced in 2010 is to empower mega CPSEs to expand the basis of recommendations of Public Enterprises their operations and emerge as global giants. The Boards Selection Board (PESB) after obtaining approval of of such CPSEs have been delegated enhanced powers competent authority and after completing due formalities in the areas of (i) capital expenditure, (ii) investment in in this regard. PESB is under the administrative joint ventures/subsidiaries, (iii) mergers & acquisitions, jurisdiction of Department of Personnel & Training. PESB (iv)human resources management, etc. During the year issues the advertisement, shortlists candidates and holds 2022-23, one CPSE, namely, REC Limited was granted selection interviews for selection to the posts of functional Maharatna status. Directors. The functional Directors are appointed for a tenure of 5 years or till their superannuation whichever 2.3 Navratna Scheme is earlier. The Government introduced the Navratna scheme, in 2.1.4 Non-Official (Independent) Directors: - 1997, to identify Central Public Sector Enterprises (CPSEs) that had comparative advantages and to support The presence of Non-Official Directors (NoDs) on the them in their drive to become global giants. Under this Boards of CPSEs is important for sound Corporate scheme, the Boards of Navratna CPSEs have also been delegated autonomy enhanced powers in the areas of (i) Governance as their constructive role is essential for capital expenditure, (ii) investment in joint ventures/ smooth and transparent functioning of the company. The subsidiaries, (iii) mergers & acquisitions, (iv) human NoDs play an important role in various committees of resources management, etc. Boards viz. Audit Committee, Nomination & 2.4 Miniratna Scheme Remuneration Committee, CSR Committee etc. In October 1997, the Government decided to grant The proposals for appointment of Non-Official Directors enhanced autonomy and delegation of financial powers (NoDs) on the Boards of CPSEs are initiated by the to some other profit-making companies subject to certain concerned administrative Ministry which submits a panel eligibility conditions and guidelines to make them efficient of names to DPE with the approval of their competent and competitive. These companies, called Miniratnas, are authority. DPE places such proposals before the Search in two categories, namely, Category- I and Category-II. Committee, which presently consists of Secretary 2.5 The salient features of Maharatna, Navratna & (DoPT) as Chairperson, Secretary (DPE), Secretary of Miniratna scheme and list of these CPSEs are provided the Administrative Ministry/ Department of the at Annexure-4 and Annexure-5 respectively. concerned CPSE and 2 non-official Members. The 2.6 Performance Appraisal of Board Level concerned Administrative Ministry/ Department appoints Executives of CPSEs: the Non-Official Director on the basis of 2.6.1 DPE has laid down the guidelines for annual recommendations of Search Committee after performance appraisal of functional Directors of CPSEs completing due formalities in this regard and after which, inter-alia, prescribe the format, time schedule, obtaining the approval of competent authority. The non- components of Annual Performance Appraisal Reports official Directors are appointed for tenure of 3 years. (APARs) and their relative weight, channel of submission, Details of the qualifying standards for being eligible to etc. The performance assessment of functional Directors be appointed as NoD is at Annexure-3 of CPSEs is determined in the following manner: Designation Weightage MOU score/ Targets flowing from Personal attributes and Total rating MOU assigned to functional competencies Directors of the officer Chairman cum 75 - 25 100 Managing Director (CMD) Functional 40 35 25 100 Director 274Department of Public Enterprises VI 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 Authority Accepting Authority No. PAR is to be written 1 Executive Secretary Admin. Minister In-charge Minister In-charge Chairman/CMD/MD Ministry/Departments 2 Functional Directors Executive Secretary Admin. Minister In-charge Chairman/CMD/MD Ministry/Departments 3. Wage Policy and Manpower Rationalization package for Board and Below Board level Executives and Non-Unionized Supervisors The Department of Public Enterprises (DPE) functions should not be more than 20% of the Average as the nodal Department for policy relating to pay revision Profit Before Tax (PBT) of the last three financial of CPSE executives at Board as well as below Board years preceding the year of implementation. All level and non-unionized supervisors. DPE also issues the expenditure on this account will be met by guidelines for wage settlement negotiations in case of the CPSE implementing the revised pay scales workmen in CPSEs. The Department renders advice to & allowances and no budgetary support shall be the Administrative Ministries/ Departments and CPSEs provided by the government. in matters relating to revision in pay scales of executives and also for the wage policy negotiations of workmen. 3.1.2 Pay Revision for employees of CDA pattern The CPSEs are largely following the Industrial Dearness in CPSEs: Allowance (IDA) pattern of scales of pay. However, in For the employees of CPSEs following the CDA pattern, some CPSEs, Central Dearness Allowance (CDA) pattern DPE vide OM dated 17.08.2017 issued guidelines for of scales of pay is also followed. DPE issues quarterly revision of pay scales and allowances w.e.f. 01.01.2016. DA orders in respect of IDA employees. The DA orders The benefit of pay revision is allowed to the employees for CDA employees of CPSEs are issued for six monthly of those CPSEs that are not loss making and are in a period. position to absorb the expenditure on account of pay 3.1 Pay Revision for employees of CPSEs: revision from their own resources without any budgetary support from the Government. Further, DPE vide OMs 3.1.1 Pay Revision for Executives and Non- dated 21.05.2018 and 04.07.2019 conveyed the Unionised Supervisors of IDA pattern in Government decision on allowances applicable to CDA CPSEs: employees of CPSEs. (i) The third Pay Revision Committee (PRC) was 3.1.3 Wage Revision for Workmen under IDA constituted under the Chairmanship of Justice pattern in CPSEs: (Rtd.) Shri Satish Chandra to consider and DPE has issued policy guidelines for the 8th Round of recommend pay scales for Board and Below Wage Negotiations with unionized workmen of CPSEs Board level executives and non-unionized (effective from 01.01.2017) vide its OM dated 24.11.2017. supervisors of CPSEs under IDA pattern of pay The validity of the wage negotiation as per para 2(xi) of scale. Based on the recommendations of the DPE OM dated 24.11.2017 would be minimum period of third PRC and Government’s decisions thereon, five years for those who opted for a five-year periodicity the revised pay scale guidelines effective from and for a maximum period of ten years for those who 1st January, 2017 were issued vide DPE OMs have opted for a ten-year periodicity of wage negotiation dated 03.08.2017, 04.08.2017 and 07.09.2017. w.e.f. 01.01.2017. (ii) The revised pay scales and allowances 3.2 Guidelines recently issued: recommended by third PRC were based on the basic premise of affordability. These pay scales 3.2.1 DPE has issued DA orders in respect of CDA and allowances would be implemented subject pattern pay scales in cases of 5th, 6th & 7th CPC for the to the condition that the additional financial impact CPSEs employees. Similarly, industrial DA rates on in the year of implementing the revised pay- quarterly basis (January, April, July & October) were also 275Annual Report 2022-2023 revised for employees of the 2017/2007/1997/1992 & 5. Monitoring & Evaluation 1987 pay scales of CPSEs. 5.1 Memorandum of Understanding: 3.2.2 DPE issued guidelines vide OM dated A Memorandum of Understanding (MoU) is a negotiated 21.02.2022 regarding additional Transport allowances agreement between the administrative Ministry/ payable to Person with Disability (PWD) employees kept Department and the management of respective Central outside the overall ceiling of cafeteria approach as Public Sector Enterprises (CPSEs). Under this, CPSEs mentioned in DPE OM dated 03.08.2017 extending the undertake to achieve targets set in the MoU. In MoU benefit to under privileged class of society. evaluation, the performance of CPSEs on selected 3.2.3 DPE vide OM dated 02.12.2022 has issued parameters is compared with the determined targets. The guidelines regarding reimbursement of rent/Payment of inclusion of a MoU helps make ‘management’ of the HRA to Board level and below Board level executives, enterprise accountable to the government. Non-Unionized Supervisors and CVO of CPSEs during 5.1.1 Scope: their temporary stay (up to a maximum period of six months) in Guest Houses run by CPSE/Central All CPSEs (Holding as well as Subsidiaries) are required Government /State Government / Autonomous to sign a MoU. The holding CPSEs sign the MoU with Organizations etc. their Administrative Ministries/ Departments, while the subsidiaries sign the MoU with their respective holding 4. Categorization of CPSEs companies. 4.1 The Public Sector Enterprises are categorized 5.1.2 Institutional arrangements for into four Schedules namely ‘A’, ‘B’, ‘C’ & ‘D’. The Implementation of MoU Policy: categorization of CPSEs has implications mainly for organizational structure and salary of Board level a) High Powered Committee (HPC): The High- incumbents of the concerned CPSE. It also plays a role Powered Committee is the Apex body under MoU in grant of autonomy to the Boards of CPSEs under system for laying policy guidelines. HPC is ‘Ratna’ scheme. headed by the Cabinet Secretary and comprises following members: CEO (NITI Aayog), Finance 4.2 The initial categorization of CPSEs in the mid- Secretary, Secretary (Expenditure), Secretary sixties was made on the basis of their importance to the (Statistics & Programme Implementation), economy and complexities of their problems. Over the Chairman (Public Enterprises Selection Board), years the Department of Public Enterprises has evolved Chief Economic Advisor (Economic Affairs) and norms for the purpose of categorization/re-categorization Secretary (DPE). of CPSEs. Categorization is based on both quantitative factors like investment, capital employed, net sales, profit (b) Inter-Ministerial Committee (IMC): The IMC before tax, number of employees and units, capacity finalise the sectoral template/ CPSE wise MoU addition, revenue per employee, sales/capital employed, parameters. The purpose of sectoral templates capacity utilization, value added per employee and is to select and identify the parameters and qualitative factors such as national importance, weightages relevant to the core business complexities of problems being faced by the company, activities in that sector and or CPSE. IMC will level of technology, prospects for expansion and also set the requisite levels of performance against each of the parameters, so decided, as diversification of activities and competition from other benchmarked targets. The IMC comprises sectors etc. The other factors, wherever available, relate Secretary (DPE) as Chairman, Representative to share price, MoU ratings, Maharatna/Navratna/ of Chief Economic Advisor (Department of Miniratna status and ISO certification. In addition, the Economic Affairs), Department of Expenditure, factor relating to the critical/Strategic importance of the MoSPI, NITI Aayog and Secretary/ representative CPSE is also taken into account. At present there are 70 of Administrative Ministry as special invitee and Schedule ‘A’, 69 Schedule ‘B’, 44 Schedule ‘C’ and 5 any other expert co-opted on need basis. Schedule ‘D’ CPSEs. The Schedule-wise list of CPSEs is given in Annexure-6. 5.1.3 MoU Framework (FY 2021-22 & onwards) 4.3 Procedure for Categorization: Proposal for Based on the recommendations of the HPC, the categorization of a CPSE is initiated by the concerned framework for MoU System using an online dashboard Administrative Ministry/Department and submitted to for the target setting and performance evaluation of DPE. The latter examines such proposals in consultation CPSEs has been put in place and made applicable from with the Public Enterprises Selection Board (PESB) and FY 2021-22 & onwards. The parameters included in the then the approval of Minister In-charge is obtained through revised MoU process are market oriented, reflecting the Cabinet Secretary. shareholders’ interest in terms of growth in revenue, 276Department of Public Enterprises VI EBITDA margin, return on net worth, return on capital on growth and emerging trends of the sector, vision that employed, asset turnover ratio, and market capitalization. has been worked by the Ministry about the sector, and Adequate weightage has also been given to production peer performance. linked parameters pertaining to CPSE’s core operations. All the parameters are quantifiable and verifiable from 5.1.4 MoU Score and Rating the documents in public domain. Besides, certain The CPSEs will be allotted marks proportionately for government’s priorities/ programmes such as procurement from MSEs, CSR, etc. have also been achievement of target figure for each parameter. Score included for compliance by CPSEs, the non- compliance on all parameters would be added to arrive at MoU score. of which would result in deduction of marks. The revised The rating system of CPSEs based on the MoU score is MoU framework also provides for benchmarking based as 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 6. Corporate Social Responsibility (CSR) Organizations on one platform for experience sharing and developing appropriate models of interventions which 6.1 As per Section-135 of the Companies Act, 2013, would be sustainable and complement existing all profit-making corporates, including Central Public Government interventions in area of health & nutrition, Sector Enterprises (CPSEs) exceeding threshold limits etc. Hon’ble Minister of State (Finance) inaugurated the prescribed in the Act, i.e., net worth of Rs. 500 crore; or workshop virtually which was attended by more than 200 turnover of Rs. 1000 crore or net profit of Rs. 5 crore are participants from various CPSEs, senior officers of district mandated to spend at least 2% of the average net profits administration from Aspirational Districts and (Profit Before Tax) of the company made during the three representatives of civil society organizations. immediately preceding years. 7. Schemes for ‘Counselling, Retraining and 6.2 The CPSEs are required to follow the provisions Redeployment (CRR)’ and ‘Research, contained in Section-135 of the Companies Act, 2013 Development and Consultancies (RDC)’ and the Companies (CSR Policy) Rules, 2014 notified thereunder by Ministry of Corporate Affairs and the 7.1 Counselling, Retraining and Redeployment Schedule-VII of the Act, which lists the activities that can (CRR): be undertaken under CSR. The Scheme for Counselling, Retraining and 6.3 Based on the recommendations of CPSEs Redeployment (CRR) of Rationalized Employees of Conclave held in April, 2018 and with the approval of Central Public Sector Enterprises (CPSEs) is being competent authority, Department of Public Enterprises implemented by Department of Public Enterprises (DPE) has issued guidelines on 10.12.2018 to all administrative as a Central Sector Scheme since 2001-02. CRR Scheme Ministries & CPSEs for adopting a theme based focused was modified in November, 2007 in order to widen its approach every year on CSR expenditure by CPSEs. scope and coverage. One dependent of Voluntary These guidelines inter-alia provide that CSR expenditure Retirement Scheme (VRS)/Voluntary Separation Scheme for such thematic programmes should be around 60% of (VSS) optee is also eligible in case the VRS/VSS optee annual CSR expenditure of CPSEs and the aspirational is not interested for self. The scheme has been districts identified by NITI Aayog may be given preference. subsequently modified in February, 2016 in order to The common theme identified for the FY 2022-23 is broaden the network of training providers and also to ‘Health & Nutrition’. follow standardized methodology of training, design and delivery. Under this scheme, a tripartite agreement is 6.4 DPE organized a workshop on the Corporate signed between DPE, National Skill Development Fund Social Responsibility with special focus on Aspirational under the Ministry of Skill Development & Districts on 10th June, 2022 at Mahatma Mandir, Entrepreneurship and National Skill Development Gandhinagar. The daylong workshop brought together Corporation to provide skill training as per National Skills CSR stakeholders, i.e., CPSEs, representatives from Qualification Framework to employees of CPSEs who Aspirational Districts, NITI Aayog and Civil Society left service under VRS/VSS or their dependents. 277Annual Report 2022-2023 7.1.1 Objective of the CRR Scheme be short duration programmes according to the trade decided during counselling. (i) Bringing separated employees of CPSEs into the mainstream economy and thereby contribute to Redeployment: It will be the endeavour to redeploy such national income rationalized employees in the production process through the counselling and retraining efforts. At the end of the (ii) Reorientation of VRS/VSS optees or dependents programme, VRS/VSS optee or dependent should be able to enable them to adjust to new environment and to engage themselves in alternate vocations of self/wage adopt new vocations employment. Although there cannot be any guarantee that the separated employee will be assured of alternate (iii) Skill development of VRS/VSS optees or employment, yet possible help from the identified nodal dependents for redeployment training agencies as well as from the CPSEs concerned (iv) Provide opportunities of self/wage employment would be extended to them for starting new vocations. to the VRS/VSS optees or their dependents who 7.1.3 The CPSEs are the key to the success of the successfully complete skill training scheme. They are expected to extend all possible support 7.1.2 Elements of the CRR scheme for the welfare of the separated employees by clearing their compensation/dues before release. Long Counselling: Counselling is the basic pre-requisite of association with employees puts CPSEs in a better the rehabilitation programme of the separated employees. position to identify their retraining needs. In order to The separated employees need psychological counselling reinforce this linkage, DPE jointly with National Skill to absorb the distress of loss of assured livelihood and Development Corporation (NSDC) organized a half-day to face the new challenges and also needs support to workshop on CRR scheme at New Delhi on 18th October, plan his compensation amount prudently. He/she also 2022 to familiarise the executives of CPSEs with the needs to be made aware of the new environment of features and benefits of CRR scheme which was attended market opportunities so that he/she may, depending upon by 53 participants from various CPSEs. The his/her aptitude and expertise, take up economic activities representatives of various Sector Skill Council presented and continue to be in the production process. the details of job roles available for VRS optees and their dependents. DPE now plans to organize similar Retraining: The objective of such training is to help the workshops with CPSEs having significant number of VRS separated employees for rehabilitation. The trainees will optees. be helped to acquire necessary skill/expertise/orientation to start new vocations and re-entre the productive process 7.1.4 Year wise number of persons trained under the after loss of their jobs. These training programmes will 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 & 2021-22 1,141 278Department of Public Enterprises VI 7.1.5 The following sectors and job roles have been selected for the skill training during the year 2022-23 under ongoing CRR-V project. S.No. Sector Job Role 1 IT-ITES Data Entry Operator 2 Telecom CCE – Call Centre 3 IT Data Entry Operator 4 Management Retail Team Leader 7.2 Scheme of Research, Development and scheme, Management Development Programmes on Consultancies (RDC): various topics for increasing the knowledge & skillsets of executives of CPSEs and SLPEs are organized at various 7.2.1 DPE is implementing Central Sector Scheme of centres of excellence such as IIMs, IITs, IIPA New Delhi Research Development and Consultancies (RDC) for the executives of Central Public Sector Enterprises (CPSEs) etc. The details of implementation of the scheme during and State Level Public Enterprises (SLPEs). Under this last three years are as under: Year Budget Revised Actual Programmes Persons Estimates Estimates Expenditure Organized covered (Nos.) (Rs. crore) (Rs. crore) (Rs. crore) (Nos.) 2019-20 6.00 6.00 5.15 31 886 2020-21 6.00 3.27 2.95* 5 355 2021-22 5.15 4.54 4.54 46 2152 *Due to situation arising from outbreak of COVID-19 pandemic, trainings could not be organized. 7.2.2 DPE is to organise 22 training programmes and 8.2 The Department of Public Enterprises (DPE) has 9 workshops during the year 2022-23 under the RDC been brought under the Ministry of Finance vide Scheme in residential/non-residential/synchronous mode notification dated 6th July, 2021 of Cabinet Secretariat. through institutes such as IITs/IIMs/ IICA etc. Vide order dated 17th August, 2021 of Finance Secretary, demarcation of certain responsibilities between DIPAM 7.2.3 In addition, 5 orientation programmes for non- and DPE has been done. DPE has been entrusted with official Directors and one orientation programme for the responsibility to identify CPSEs for closure or Government Directors of CPSEs are also being organized privatization in Non-Strategic Sector in consultation with under RDC scheme during the year 2022-23. administrative Ministries/Departments. DPE is also 7.2.4 Statement of Scheme wise Expenditure for the year required to drive the closure process for CPSEs approved 2021-22 is enclosed at Annexure-7. for closure. For implementation of the above, a Disinvestment Division has been created in DPE. 8. Implementation of New Public Sector Enterprises (PSE) Policy 8.3 In order to operationalize the New Public Sector Enterprise (PSE) Policy for CPSEs in Non-Strategic 8.1 The Government notified the new Public Sector Sector and to drive the closure process of CPSEs Enterprise (PSE) Policy on 4th February, 2021. The new identified for closure, DPE has prepared guidelines in PSE policy envisages classification of CPSEs into consultation with D/o Expenditure, D/o Economic Affairs, Strategic and Non-Strategic Sectors and exempts certain D/o Revenue, DIPAM and NITI Aayog. These guidelines CPSEs such as that setup as not for profit companies have been issued on 13.12.2021and are provided at under the Companies Act, 2013 or those providing support Annexure-8. to vulnerable groups or having developmental/ promotional roles, etc, from the scope of the policy. The 8.4 The salient features of the guidelines are given policy proposes that in Strategic Sector, bare minimum below: presence of the existing public sector enterprises at holding company level will be retained under the i) identification of the CPSEs either for closure or Government control. The remaining enterprises in privatization in Non-Strategic Sector will be done Strategic Sector will be considered for privatization or in consultation with the concerned Administrative merger or subsidiarization with another CPSE or for Ministries/Departments, NITI Aayog, Department closure. CPSEs in Non-Strategic Sector shall be of Expenditure and DIPAM. In this regard, considered for privatization, where feasible, otherwise Committee of Group of Officers (CGO) has been such enterprises shall be considered for closure. constituted; 279Annual Report 2022-2023 ii) seeking ‘in-principle’ approval of the CCEA Department of Heavy Industry (DHI) model, under regarding the CPSEs identified for closure and/ which ex-gratia payment made is equivalent to 45 days or for disinvestment in Non -Strategic Sectors; emoluments (Pay + DA) for each completed year of service or the total emoluments for the balance period of iii) the details of CPSEs approved for disinvestment service, whichever is less. The employees who have by CCEA will be communicated to DIPAM for completed not less than 30 years of service will be eligible taking necessary action as per its extant for a maximum of 60 (sixty) months’ salary/wage as procedure. Whereas, DPE will drive the process compensation and this will be subject to the amount not for CPSEs approved for closure and exceeding the salary/wage for the balance period of iv) transfer of leasehold land of CPSEs under service left. closure to the respective state governments. The 10. Executive Development Programmes freehold land will be transferred to National Land Monetization Corporation (NLMC), a Special 10.1 The Central Public Sector Enterprises (CPSEs) Purpose Vehicle (SPV) set up for their disposal. design their own human resource development The alienation of land from the CPSEs under programmes to upgrade skills and knowledge of middle closure will help in expediting the closure and senior level executives by giving them training in process. various fields of management development through their own management institutes or outsourcing the services 8.5 Incorporation of National Land Monetization of premier management training institutions in India. Corporation: In pursuance of the Budget announcement 2021 and based on the approval of the Cabinet on 10.2 Secretary, DPE is an ex-officio member of the 09.03.2022 “National Land Monetization Corporation” Executive Board and Governing Council of the Standing (NLMC), as a 100% Gol owned company, has been Conference of Public Enterprises (SCOPE), New Delhi. incorporated on 03.06.2022 under the administrative 10.3 Secretary, DPE is member on the Board of control of Department of Public Enterprises to carry out Governors of the Institute of Public Enterprise, the monetization of non-core assets of CPSEs as well as Hyderabad. other Government agencies. 10.4 India is a founder Member of International Centre 9. Voluntary Retirement Scheme (VRS) for Promotion of Enterprises (ICPE) headquartered in 9.1 As a result of the restructuring in some Central Slovenia. It was established as an inter-Governmental Public Sector Enterprises (CPSEs), Government organisation of developing countries for improving the announced the Voluntary Retirement Scheme (VRS) in performance of their public enterprises as Strategic October, 1988. A comprehensive scheme was later instrument of economic and social development. ICPE notified by the Department of Public Enterprises (DPE) pursues its goals by carrying out research, education, in May, 2000. training, consultancy work and disseminating information through documentation and publishing activities directed 9.2 VRS in CPSEs that can support the scheme on towards bridging the gap between theory and practice their own on a wide range of issues pertaining to corporate Enterprises, which are financially sound and can sustain governance, management and other related fields. 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 respect of appointments against below Board level posts 9.3 VRS in marginally profit or loss Making / sick / are formulated by the management of respective CPSEs. unviable CPSEs However, on matters of general importance, policy Marginally profit /loss making CPSEs as well as sick and guidelines are issued by the Government of India to the unviable units may adopt either of the following models: enterprises so as to enable them to frame their individual corporate policies. Furthermore, formal Presidential Gujarat Model, under which the compensation is Directives are issued to CPSEs by the concerned computed by allowing 35 days salary for every completed administrative Ministries to ensure reservation in regard year of service and 25 days for each year of the balance to employment for Scheduled Castes, Scheduled Tribes service left until superannuation subject to the condition and Other Backward Classes (OBCs), on similar lines that compensation shall not exceed the sum of salary for as applicable in the Central Government Ministries/ the balance period left for superannuation. Departments. DPE through its OM dated 25.02.2015 has 280Department of Public Enterprises VI stipulated that those instructions as issued by concerned with the CPSEs in follow-up of DoPT Government in respect of reservations to SC/ ST/ OBC/ instructions for employment of physically challenged Disability & Ex-servicemen are to be taken as mutatis persons in CPSEs. With the enactment of the Persons mutandis extended to all the CPSEs concerned unless with Disabilities (Equal Opportunities, Protection of Rights specified otherwise by DPE. and Full Participation) Act, 1995, the reservation to physically challenged persons have been extended to 11.2 A comprehensive Presidential Directive identified Group ‘A’ and ‘B’ posts to be filled through Direct incorporating all important instructions on reservation for Recruitment. As per the ‘The Rights of Persons with SCs and STs was issued by DPE to all the administrative Disabilities Act, 2016, not less than 4% posts shall be Ministries/Departments concerned on 25th April, 1991 for reserved for persons with disabilities. formal issuance of the same to CPSEs. Necessary changes and modifications are also circulated to CPSEs 11.6 DPE has also extended instructions vis-à-vis the through their administrative Ministries/ Departments for scheme for reservation for Ex-servicemen in CPSEs information and compliance. through the administrative Ministries/ Departments. Instructions for streamlining the procedure for recruitment 11.3 Subsequently, based on the recommendation of of Ex-servicemen have also been issued with a view to the Second Backward Classes Commission (Mandal augment their in-take in CPSEs. Such CPSEs, which are Commission) and in accordance with the Hon’ble Supreme in a position to offer agencies/dealerships, have been Court Judgment in the Indira Sawhney case, instructions advised to reserve quota of such agencies/dealership for were issued for providing reservation of 27% of vacancies allotment to Ex-servicemen. in favour of Other Backward Classes (OBCs). Reservation for OBCs was made effective w.e.f. 8.9.1993. The 11.7 The instructions issued by DoPT vide its OM Department of Personnel & Training (DoPT) which dated 19.01.2019 & 31.01.2019 and DO letter dated formulates the policy in respect of reservation in services 21.01.2019 in respect of 10% reservation to Economically has been issuing instructions from time to time on various Weaker Sections (EWSs) are also mutatis mutandis aspects of reservation in respect of OBCs. Department of extended to all the CPSEs in terms of DPE OM dated Public Enterprises (DPE) has been extending these 25.01.2019 and 01.02.2019. instructions to CPSEs through their administrative 11.8 The need to ensure timely filling up of reserved Ministries for compliance. A comprehensive Presidential posts and the backlog has been stressed through various Directive incorporating these instructions was forwarded instructions issued from time to time. All administrative by the Department of Public Enterprises to all administrative Ministries/Departments have been requested to advise Ministries vide DPE’s OM dated 27th July, 1995 for formal the CPSEs under their administrative control to take issuance to the CPSEs under their control. effective steps to fill up the unfilled reserved posts in Direct 11.4 Further in terms of DPE OM dated 25-10-2017, Recruitment as well as in Promotion in accordance with all executives i.e. Board & below board level will be the existing instructions. Further, the DoPT has issued considered as creamy layer subject to the proviso that instructions from time to time to launch a Special those executives whose annual income as per criterion Recruitment Drive (s) to fill up backlog of reserved given in DoPT OM dated 08-09-1993 is less than Rs. 8 vacancies for SCs, STs & OBCs in CPSEs. DPE has lakhs (as amended vide DoPT OM dated 13-09-2017) also extended these instructions to all administrative will not fall under creamy layer criteria. It is for the Ministries/Departments dealing with CPSEs to fill up these concerned CPSE to issue the necessary orders for the vacancies in a time bound manner. posts covered under creamy layer criteria on the above- 11.9 The present quota for providing reservation for mentioned principle. candidates belonging to Scheduled Castes, Scheduled 11.5 DPE has issued Presidential Directive on Tribes and OBCs as well as other categories of persons 11.3.1997 to all the administrative Ministries /Departments entitled to reservation of vacancies is shown below: 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 un-skilled posts are reserved for Ex-servicemen in & Dependents of those killed in action, 14.5% posts in CPSEs. respect of skilled workers and 24.5% post in respect of 281Annual Report 2022-2023 12. Official Language Policy 13.2 Government e-Marketplace (GeM) which is hosted by Directorate General of Supplies & Disposals 12.1 DPE’s Hindi Section is primarily responsible for (DGS&D), is a paperless, cashless, & system-driven e- implementation of the various provisions of the Official market place that enables procurement of common-use Language Act 1963 and the Rules framed there under. goods & services with minimal human interface. It is a Hindi Section is also responsible for translation of dynamic, self-sustaining, & user-friendly portal for documents required to be issued under Section 3(3) of procurement by offices of various Government Ministries the Official Language Act, 1963. As more than 80% of & Departments, CPSEs, & autonomous bodies of the the staff of this Department knows Hindi, the Department Central Government. DGS&D has developed GeM with has been notified under rule 10(4) of the Official Language technical support of National e-Governance Division, Rules, 1976. Ministry of Electronics & Information Technology. 12.2 Resolutions, notifications, notices, circulars, 13.3 DPE has been engaging with the CPSEs to papers etc. to be laid on the Table of the both houses of ensure that the CPSEs comply with the provisions relating Parliament have been issued bilingually during the year to procurement from MSEs and enhance their 2021-22. Efforts were also made to promote original procurement through GeM portal. In line with support correspondence in Hindi. The Official Language measures announced by the Government for MSEs, Implementation Committee of DPE continues to function procurement by CPSEs from MSEs during the year 2021- under the Chairmanship of the Joint Secretary. 22 was around 32% as against the mandated 25%. During the year 2022-23 (till December, 2022), procurement by 12.3 To create awareness and expanding the use of the CPSEs from MSEs has further increased to 35.59%. Hindi as Official Language, Hindi Pakhwada was organized by the Department from 14th September, 2022 13.4 Continuous engagement with stakeholders has to 29th September, 2022. During the Hindi Pakhwada five ensured manifold increase in procurement by CPSEs competitions namely, Hindi Shrutlekh, bhasha Gyan, Hindi from GeM. Cumulative procurement from MSEs has risen nibandh and Chitra varnan and Kavita path were from Rs. 7,035 crores in the financial year 2020-21 to organized for the officers and staff including officials on Rs. 45,970 crores in financial year 2021-22. It stands at contract basis. Certificates and Rewards have been Rs.55,618 crore in the financial year 2022-23 as on felicitated to successful employees on 15.12.2022. December, 2022. 12.4 Annual Public Enterprises Survey on the working 13.5 Trade Receivables Discounting System (TReDS) of Central Public Sector Enterprises is presented in the - TReDS is an electronic platform for facilitating the Parliament every year by this Department. This is very financing / discounting of trade receivables of Micro, Small voluminous and comprehensive document brought out and Medium Enterprises (MSMEs) through multiple by the Department simultaneously in English and Hindi. financiers. These receivables can be due from corporates and other buyers, including Government Departments 13. Procurement by CPSEs from MSEs and and Public Sector Undertakings. DPE has been through GeM continuously engaging with the CPSEs and their administrative Ministries/Departments to register CPSEs 13.1 The Government of India notified the Public on TReDS portal and to increase usage of TReDS portal. Procurement Policy for Micro & Small Enterprises (MSEs) 177 CPSEs are now registered on the TReDS portal in 2012 to be administered by Ministry of Micro, Small & which account for 98% of total procurement by CPSEs. Medium Enterprises. The objective of this policy is to In order to facilitate more effective use of the TReDS promote and develop MSEs by supporting them in portal by the CPSEs and ensure timely payments to MSE marketing of products & services. As per provisions of vendors as provided in the MSMED Act, 2006, a this policy, w.e.f., 2012-13, every CPSE should achieve parameter with a weight of 5 marks on ‘timely acceptance/ an overall procurement goal of minimum 20% of total rejection of goods and services by the CPSEs through annual purchase from MSEs in a period of three years. TReDS portal within stipulated time (15 days)’ has been Of the 20% target of annual procurement from MSEs, a introduced in the MoU framework for the year 2022-23. sub-target of 4% must be earmarked for procurement DPE has directed all CPSEs to include a clause/provision from MSEs owned by SC/ST entrepreneurs. At the end with reference to payment terms through TReDS platform of three years (i.e., from FY 2015-16), the overall in their standard tender document/notice inviting tenders procurement goal of minimum 20% would be mandatory. for procurement. Financial Advisers of all administrative This policy was amended on November 9, 2018 to Ministries/Departments have also been requested to increase the minimum annual procurement from MSEs monitor usage of TReDS portal by the CPSEs under their from 20% to 25% and to mandate procuring minimum administrative control. 3% out of the 25% from MSEs owned by women, in addition to 4% to be procured from MSEs owned by SC/ 13.6 Workshops on Procurement by CPSEs with ST entrepreneurs. special focus on vendor interface with Micro & Small 282Department of Public Enterprises VI Enterprises (MSEs) and vendor interface with GeM on i. an Outreach program on the new MoU 11th June, 2022 at Mahatma Mandir, Gandhinagar- These dashboard at Kasauli on 09.05.2022 for CPSEs interactive workshops aimed at encouraging and of Power Generation, Power Transmission & promoting public procurement by MSEs (vendors or Finance sectors; followed by programs regarding potential vendors) from CPSEs. The workshops offered MoU dashboard guidelines at Gandhinagar on insights on Government initiatives to support MSEs, 10.06.2022 for CPSEs Oil Exploration, Oil existing best practices, opportunity for networking, Marketing, Gas Transmission, Fertilizers, discussions, between CPSEs and MSEs to discuss Manufacturing, Consultancy & Construction, business opportunities and resolve any issues or Mining, Steel, Coal, Trading & Services Sectors, concerns. During the workshop, an overview of GeM was and at Delhi on 28.06.2022 for CPSEs of also presented along with its new initiatives, sharing of Multiproduct, Consultancy & Construction, success stories on GeM and immersive presentation by Manufacturing, and Trading & Services Sectors. MSEs and Start-ups. Buyers & Sellers perspectives were also presented in the workshop through a panel ii. an exhibition on ‘Nation Building and CPSEs’ discussion. These workshops were attended by more from 9th to 12th June, 2022 at Mahatma Mandir than 300 participants (169 from MSEs and 146 from (Gandhinagar) - 75 CPSEs had set up stalls CPSEs). showcasing their products and services. 13.7 DPE organized a workshop on procurement by iii. a roundtable conference of CEOs of CPSEs on CPSEs from MSEs on 21st December, 2022 at New Delhi ‘Role of CPSEs for a self-reliant India’ on 9th June, with the support of Ministry of Micro, Small & Medium 2022 at Mahatma Mandir (Gandhinagar). Enterprises and in collaboration with SCOPE. The workshop drew unprecedented response as it was iv. a plantation drive across the country by CPSEs attended by more than 200 senior officials from 77 CPSEs to plant 75,000 saplings in their offices, and more than 50 invitees from various Industry townships, production units, etc. associations, besides senior officers from DPE, Ministry v. a workshop on the Corporate Social of MSME and SCOPE. The technical sessions of the Responsibility (CSR) with special focus on workshop were addressed by senior officials of Ministry aspirational districts on 10th June, 2022 at of MSME, NIC, National SC/ST Hub, RBI and TReDS Mahatma Mandir (Gandhinagar). platforms with interactive presentations. Representatives of Industry Associations were also given the platform to vi. an interactive workshop on procurement by present their views and raise their concerns. A specific CPSEs with special focus on vendor interface interactive session with senior GeM officials was also with micro & small enterprises (MSEs) and conducted to address the problems being faced by vendor interface with GeM on 11th June, 2022 at CPSEs in operation of GeM portal. Mahatma Mandir (Gandhinagar) which was 14. Events organized by DPE under the aegis of attended by more than 300 participants (169 from Azadi ka Amrit Mahotsav MSEs and 146 from CPSEs). DPE organized a series of events under the aegis of Azadi vii. 15 CPSEs are developing some of their ka Amrit Mahotsav during the iconic week of 6th to 12th townships as Mini Smart Cities as per parameters June, 2022 as per following details: identified by Ministry of Housing & Urban Affairs. 283Annual Report 2022-2023 Annexure-1 Department of Public Enterprises Organogram Hon’ble Finance Minister Hon’ble Minister of State (Finance) Secretary ` Joint Joint Principal Economic DDG Addl. Secretary Secretary Advisor (Cost) Advisor (Survey) Secretary & FA Dy Director Jt Director Director Jt Director Dy Secretary Jt Director Secretary (Policy-I) (Disinvestment) (MoU) (Policy-II) (Wage) (Survey) CCA (Admn) 284Department of Public Enterprises VI Annexure-2 Table 1: Performance of CPSEs during 2021-22 SI Item/Indicator 2020-21 2021-22 % Change No. (Rs. Crore) (Rs. crore) 1. Gross Revenue of (operation) CPSEs 24,08,243 31,94,592 32.65 2. Total paid up capital of all CPSEs 2,84,432 3,69,261 29.82 3. Investment (equity plus long-term loans) of 21,57,917 22,81,090 5.71 all CPSEs 4. Capital employed (Paid up capital + long 32,92,882 35,21,047 6.93 term loans and reserves & surplus) of all CPSEs 5. Profit of (profit making) CPSEs 1,88,703 2,63,895 39.85 6. Loss of (loss making) CPSEs -23,458 -14,586 37.82* 7. Overall Net Profit 1,65,245 2,49,309 50.87 8. Reserves and Surplus of all CPSEs 11,34,966 12,39,957 9.25 9. Net Worth of all CPSEs 13,81,007 15,57,882 12.81 10. Contribution of all CPSEs to Central 4,96,551 5,07,193 2.14 Exchequer * The total loss of loss making CPSEs has declined showing improvement of 37.82%. 285Annual Report 2022-2023 Annexure-3 Details of Eligibility Criteria for appointment as Non-Official (Independent) Directors: Details of Eligibility Criteria for appointment as Non- (v) Former CEOs of private companies if the Official (Independent) Directors: company is (a) listed on the Stock Exchanges or Criteria of Experience: (b) unlisted but profit making and having an annual turnover of at least Rs.250 crore. (i) Retired Government officials with a minimum of 10 years’ experience at Joint Secretary Level or (vi) Persons of eminence with proven track record above. from Industry, Business or Agriculture or Management. (ii) Persons who have retired as CMD/CEOs of CPSEs and Functional Directors of the Schedule (vii) Serving CEOs and Directors of private ‘A’ CPSEs. The ex-Chief Executives and ex- companies listed on the Stock Exchanges may Functional Directors of the CPSEs will not be also be considered for appointment as part-time considered for appointment as non-official Director on the Board of the CPSE from which non-official Directors on the Boards of CPSEs in they retire. Serving Chief Executives/Directors exceptional circumstances. of CPSEs will not be eligible to be considered for Criteria of Educational Qualification appointment as non-official Directors on the Boards of any CPSEs. Minimum graduate degree from a recognized university. (iii) Academicians/Directors of Institutes/Heads of Criteria of Age Department and Professors having more than 10 years teaching or research experience in the The age band should be between 45-65 years (minimum/ relevant domain e.g. management, finance, maximum limit) marketing, technology, human resources, or law. This could, however, be relaxed for eminent (iv) Professionals of repute having more than 15 professionals, for reasons to be recorded, being limited years of relevant domain experience in fields relevant to the company’s area of operation. to 70 years. 286Department of Public Enterprises VI 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 Board of Maharatna CPSEs in the following manner: The CPSEs meeting the following eligibility criteria are (i) The proposal for establishing financial joint considered for Maharatna status: ventures and subsidiary entities will be presented a) Having Navratna status to the Board of the concerned CPSE. b) Listed on Indian stock exchange with minimum (ii) The concerned administrative Ministry/ prescribed public shareholding under SEBI Department will obtain the concurrence of NITI regulations 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 2.1 Eligibility criteria: The CPSEs which are exercising all powers to Navratna CPSEs, exercise Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or enhanced powers in the area of investment in joint ‘very good’ MOU rating in three of the last five years and ventures/subsidiaries and creation of below Board level have a ‘Composite Score’ of performance to be 60 or posts. The Boards of Maharatna CPSEs have powers to (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 Net worth 25 2 Manpower Cost to total Cost of Production or Cost of Services 15 3 PBDIT to Capital employed 15 4 PBIT to Turnover 15 5 Earnings per Share 10 6 Inter Sectoral Performance 20 Total 100 287Annual Report 2022-2023 2.2 Procedure for grant/divestment of Navratna (b) The delegated powers to establish financial joint status: ventures and subsidiary entities would be exercised by the Board of Navratna CPSEs in The proposals for grant/divestment are initially considered the following manner: by the Inter-Ministerial Committee and then by the Apex Committee. The recommendations of Apex Committee (i) The proposal for establishing financial joint for grant/divestment of Navratna status are to be placed ventures and subsidiary entities will be before Minister (In charge of DPE) for a decision. presented to the Board of the concerned CPSE. 2.3 The Powers Delegated to Navratna CPSEs: (ii) The concerned administrative Ministry/ 2.3.1 Capital Expenditure: - The Navratna CPSEs Department will obtain the concurrence of have the powers to incur capital expenditure on purchase NITI Aayog for such proposals on a case- of new items or for replacement, without any monetary to-case basis and firm up its view on the ceiling. 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 (iii) The Government Directors will ensure that and obtain by purchase or other arrangements, the views of the Government, being the technology and know-how. 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 when Government Directors are present in 2.3.4 Human Resources Management: - The the board meeting. Navratna CPSEs have been empowered to create posts upto E-6 level and wind up all posts up to non-Board level 2.3.7 Mergers and acquisitions: - The Navratna Directors and make all appointments up to this level. The CPSEs have been delegated powers for mergers and Boards of these CPSEs have further been empowered acquisitions subject to the conditions that (i) it should be to effect internal transfers and re-designation of posts. as per the growth plan and in the core area of functioning The Board of Directors of Navratna CPSEs have the of the CPSE, (ii) conditions/limits would be as in the case power to further delegate the powers relating to Human of establishing joint ventures/subsidiaries, and (iii) the Resource Management (appointments, transfer, posting, Cabinet Committee on Economic Affairs would be kept etc.) of below Board level executives to sub-committees informed in case of investments abroad. Further, the of the Board or to executives of the CPSE, as may be powers relating to Mergers and Acquisitions are to be decided by the Board of the CPSE. exercised in such a manner that it should not lead to any change in the public sector character of the concerned 2.3.5 Resource Mobilization: - These CPSEs have CPSEs. been empowered to raise debt from the domestic capital markets and for borrowings from international market, 2.3.8 Creation/Disinvestment in subsidiaries:- The subject to condition that approval of RBI/Department of Navratna CPSEs have powers to transfer assets, float Economic Affairs, as may be required, should be obtained fresh equity and divest shareholding in subsidiaries through the administrative Ministry. subject to the condition that the delegation will be in 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 (ii) 15% of the net worth of the CPSE in one Chief Executive of Navratna CPSEs have been delegated project, powers to approve business tours abroad of functional 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. 288Department of Public Enterprises VI 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 net worth of the net worth. CPSE or Rs. 250 crores, 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 net worth 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 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 289Annual Report 2022-2023 have the power to further delegate the powers relating to 3.3.7 Creation/Disinvestment in subsidiaries :- To Human Resource Management (appointments, transfer, transfer assets, float fresh equity and divest shareholding posting, etc.) of below Board level executives to sub- in subsidiaries subject to the condition that the delegation committees of the Board or to executives of the CPSE, as may be decided by the Board of the CPSE. will be in respect of subsidiaries set up by the holding company under the powers delegated to the Miniratna 3.3.5 Tour abroad of functional Directors: - The Chief Executive of these CPSEs have the power to CPSEs and further to the proviso that the public sector approve business tours abroad of functional directors up character of the concerned CPSE (including subsidiary) to 5 days’ duration (other than study tours, seminars, etc.) would not be changed without prior approval of the in emergency, under intimation to the Secretary of the Government and such Miniratna CPSEs will be required administrative Ministry. 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 Government guidelines as may be issued from time to contingent on certain conditionalities. time. 290Department of Public Enterprises VI Annexure-5 (List of Maharatna, Navratna & Miniratna CPSEs as on December, 2022) Maharatna CPSEs 6. BEML Limited 1. Bharat Heavy Electricals Limited 7. Bharat Sanchar Nigam Limited 2. Bharat Petroleum Corporation Limited 8. Braithwaite & Company Limited 3. Coal India Limited 9. Bridge & Roof Company (India) Limited 4. GAIL India Limited 10. Central Warehousing Corporation 5. Hindustan Petroleum Corporation Limited 11. Central Coalfields Limited 6. Indian Oil Corporation Limited 12. Central Mine Planning & Design Institute Limited 7. NTPC Limited, 13. Chennai Petroleum Corporation Limited 8. Oil & Natural Gas Corporation Limited, 14. Cochin Shipyard Limited 9. Power Finance Corporation 15. Cotton Corporation of India Ltd. 10. Power Grid Corporation of India Limited 16. EdCIL (India) Limited 11. REC Limited. 17. Garden Reach Shipbuilders & Engineers Limited 12. 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. HSCL 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. Shipping Corporation of India Limited 30. India Trade Promotion Organization Miniratna CPSEs 31. IRCON International Limited Category - I CPSEs 32. KIOCL Limited 1. Airports Authority of India 33. Mazagaon Dock Shipbuilders Limited 2. Antrix Corporation Limited 34. Mahanadi Coalfields Limited 3. Balmer Lawrie & Co. Limited 35. MOIL Limited 4. Bharat Coking Coal Limited 36. Mangalore Refinery & Petrochemical Limited 5. Bharat Dynamics Limited 37. Mineral Exploration Corporation Limited 291Annual Report 2022-2023 38. Mishra Dhatu Nigam Limited 57. Security Printing and Minting Corporation of India Limited 39. MMTC Limited 58. South Eastern Coalfields Limited 40. MSTC Limited 59. Telecommunications Consultants India Limited 41. National Fertilizers Limited 60. THDC India Limited 42. National Projects Construction Corporation Limited 61. Western Coalfields Limited 43. National Small Industries Corporation Limited 62. WAPCOS Limited 44. National Seeds Corporation Category-II CPSEs 45. NHPC Limited 63. Artificial Limbs Manufacturing Corporation of India 46. Northern Coalfields Limited 64. Bharat Pumps & Compressors Limited 47. North Eastern Electric Power Corporation Limited 65. Broadcast Engineering Consultants India Limited 48. Numaligarh Refinery Limited 66. Central Railside Warehouse Company Limited 49. ONGC Videsh Limited 67. Engineering Projects (India) Limited 50. Pawan Hans Helicopters Limited 68. FCI Aravali Gypsum & Minerals India Limited 51. Projects & Development India Limited 69. Ferro Scrap Nigam Limited 52. Railtel Corporation of India Limited 70. HMT (International) Limited 53. Rail Vikas Nigam Limited 71. Indian Medicines & Pharmaceuticals Corporation Limited 54. Rashtriya Chemicals & Fertilizers Limited 72. MECON Limited 55. RITES Limited 73. National Film Development Corporation Limited 56. SJVN Limited 74. Rajasthan Electronics & Instruments Limited 292Department of Public Enterprises VI Annexure-6 (Schedule-Wise List of Central Public Sector Enterprises as on December, 2022) Schedule- A 32. Mahanagar Telephone Nigam Limited 1. Airports Authority of India 33. Mangalore Refinery & Petrochemicals Limited 2. Advanced Weapons and Equipment India 34. Mazagon Dock Shipbuilders Limited Limited 35. MECON Limited 3. Armoured Vehicles Nigam Limited 36. MMTC Limited 4. BEML Limited 37. MOIL Limited 5. Bharat Electronics Limited 38. Mumbai Railway Vikas Corporation Limited 6. Bharat Heavy Electricals Limited 39. Munitions India Limited 7. Bharat Petroleum Corporation Limited 40. National Aluminum Company Limited 8. Bharat Sanchar Nigam Limited 41. NBCC (India) Limited 9. Central Warehousing Corporation 42. National Fertilizers Limited 10. Coal India Limited 43. New Space India Limited 11. Container Corporation of India Limited 44. NHPC Limited 12. Dedicated Freight Corridor Corporation of India Limited 45. NMDC Limited 13. Electronics Corporation of India Limited 46. National Textiles Corporation Limited 14. Engineers India Limited 47. NTPC Limited 15. Fertilizers & Chemicals (Travancore) Limited 48. NLC India Limited 16. Food Corporation of India 49. North Eastern Electric Power Corporation Limited 17. GAIL (India) Limited 50. Oil & Natural Gas Corporation Limited 18. Heavy Engineering Corporation Limited 51. Oil India Limited 19. Hindustan Aeronautics Limited 52. ONGC Videsh Limited 20. Hindustan Copper Limited 53. Power Finance Corporation Limited 21. Hindustan Paper Corporation Limited 54. Power Grid Corporation of India Limited 22. Hindustan Petroleum Corporation Limited 55. Power System Operation Corporation Limited 23. HMT Limited 56. RITES Limited 24. Housing & Urban Development Corporation Limited 57. RailTel Corporation of India Limited 25. I T I Limited 58. Rail Vikas Nigam Limited 26. Indian Oil Corporation Limited 59. Rashtriya Chemicals and Fertilizers Limited 27. IRCON International Limited 60. Rashtriya Ispat Nigam Limited 28. Indian Railway Finance Corporation Limited 61. Rural Electrification Corporation Limited 29. Karmyogi Bharat 62. SJVN Limited 30. Konkan Railway Corporation Limited 63. Security Printing & Minting Corporation of India 31. KIOCL Limited Limited 293Annual Report 2022-2023 64. Shipping Corporation of India Limited 28. Goa Shipyard Limited 65. Solar Energy Corporation of India Limited 29. Handicrafts & Handlooms Export Corporation Limited 66. State Trading Corporation of India Limited 30. Hindustan Cables Limited 67. Steel Authority of India Limited 31. Hindustan Fertilizer Corporation Limited 68. Telecommunications Consultants (India) Limited 32. HLL Lifecare Limited 69. THDC India Limited 33. Hindustan Newsprints Limited 70. Yantra India Limited 34. Hindustan Organic Chemicals Limited Schedule- B 35. Hindustan Shipyard Limited 1. Air India Asset Holding Company Ltd. 36. Hindustan Steelworks Construction Company 2. Andrew Yule & Company Limited Limited 3. Balmer Lawrie & Company Limited 37. HMT (International) Limited 4. Bharat Coking Coal Limited 38. HMT Machine Tools Limited 5. Bharat Dynamics Limited 39. HMT Watches Limited 6. Bharat Gas Resources Limited 40. India Optel Limited 7. Bharat Petro Resources Limited 41. India Tourism Development Corporation Limited 8. Bharat Pumps & Compressors Limited 42. India Trade Promotion Organization 9. Brahmaputra Crackers & Polymers Limited 43. Indian Drugs & Pharmaceuticals Limited 10. Brahmaputra Valley Fertilizer Corporation Limited 44. Indian Railway Catering & Tourism Corporation 11. Biotechnology Industry Research Assistance Limited Council 45. Indian Rare Earths Limited 12. Braithwaite & Company Limited 46. Indian Renewable Energy Development Agency 13. Bridge & Roof Company (India) Limited Limited 14. British India Corporation Limited 47. Instrumentation Limited 15. Burn Standard Company Limited 48. M S T C Limited. 16. Cement Corporation of India Limited 49. Madras Fertilizers Limited 17. Central Coalfields Limited 50. Mahanadi Coalfields Limited 18. Central Electronics Limited 51. Mineral Exploration Corporation Limited 19. Central Mine Planning & Design Institute Limited 52. Mishra Dhatu Nigam Limited 20. Chennai Petroleum Corporation Limited 53. National Handloom Development Corporation Limited 21. Cochin Shipyard Limited 54. National Jute Manufacturers Corporation Limited 22. Cotton Corporation of India Limited 55. National Projects Construction Corporation 23. Eastern Coalfields Limited Limited 24. Engineering Projects (India) Limited 56. National Seeds Corporation Limited 25. Fertilizer Corporation of India Limited 57. National Small Industries Corporation Limited 26. Garden Reach Shipbuilders & Engineers Limited 58. Northern Coalfields Limited 27. Gliders India Limited 59. Numaligarh Refinery Limited 294Department of Public Enterprises VI 60. Orissa Mineral Development Company Limited 22. HMT Bearings Limited 61. PEC Limited 23. HMT Chinar Watches Limited 62. Pawan Hans Limited 24. Hooghly Dock and Port Engineers Limited 63. Projects & Development India Limited 25. HSCC (India) Limited 64. Scooters India Limited 26. Hotel Corporation of India Limited 65. South Eastern Coalfields Limited 27. The Jute Corporation of India Limited 66. Troop Comforts Limited 28. Karnataka Antibiotics & Pharmaceuticals Ltd 67. Uranium Corporation of India Limited 29. Nagaland Pulp & Paper Company Limited 68. W A P C O S Limited 30. National Backward Classes Finance & Development Corporation. 69. Western Coalfields Limited 31. National Film Development Corporation Limited Schedule- C 32. National Handicapped Finance & Development 1. Andaman & Nicobar Islands Forest & Plantation Corporation. Development Corporation Limited 33. National Minorities Development & Finance 2. Artificial Limbs Mfg. Corporation of India Corporation 3. Brathwaite Burn & Jessop Construction Company 34. National Research Development Corporation of Limited India. 4. Bengal Chemicals & Pharmaceuticals Limited 35. National Safai Karamcharis Finance & 5. BHEL Electric Machines Limited Development Corporation. 6. Bharat Wagon & Engineering Company Limited 36. National Scheduled Castes Finance & Development Corporation 7. The Bisra Stone Lime Company Limited 37. National Scheduled Tribes Finance & 8. Broadcast Engineering Consultants India Limited Development Corporation 9. Central Cottage Industries Corporation of India 38. NEPA Limited Limited 39. North Eastern Handicrafts & Handloom 10. Central Inland Water Transport Corporation Development Corporation Limited Limited 40. North Eastern Regional Agricultural Marketing 11. Central Railside Warehouse Company Limited Corporation Limited 12. Certification Engineers International Limited 41. Rajasthan Electronics & Instruments Limited 13. Delhi Police Housing Corporation 42. Richardson & Cruddas (1972) Limited 14. EdCIL (India) Limited 43. STCL Limited 15. FCI Aravali Gypsum & Minerals (India) Limited 44. Tungabhadra Steel Products Limited 16. Ferro Scrap Nigam Limited Schedule- D 17. Hindustan Antibiotics Limited 1. Birds Jute & Exports Limited 18. HIL (India) Limited 2. Hindustan Fluorocarbons Limited 19. Hindustan Photo Films Manufacturing Company 3. Indian Medicines Pharmaceutical Corporation Limited Limited 20. Hindustan Prefab Limited 4. Orissa Drugs & Chemicals Limited 21. Hindustan Salts Limited 5. Rajasthan Drugs & Pharmaceuticals Limited 295Annual Report 2022-2023 Annexure-7 Statement of Scheme Wise Expenditure Department of Public Enterprises Demand No. 47 2021-22 Scheme Rs. In Thousand BE RE Total Expenditure 2021-22 2021-22 2021-22 (As on 31.03.2022) CRR Scheme Publications 0 0 0 Other Administrative Expenses 500 0 0 Professional & Special Services 29,600 25,200 20,848 Grants-in-Aid 500 100 0 CRR Scheme NER (Grant-in Aid) 3,400 1,700 1,700 CRR Total 34,000 27,000 22,548 RDC Scheme Domestic Travel Expenses 1,200 700 654 Foreign Travel Expenses 500 0 0 Publications 1,000 4,700 2,116 Other Administrative Expenses 3,000 0 0 Professional & Special Services 29,200 19,400 26,381 Grants-in-Aid 500 100 100 Contribution ICPE 11,000 11,000 11,000 RDC Scheme NER (Grant-in-Aid) 5,100 5,100 5,100 RDC Total 51,500 41,000 45,351 Grand-Total 85,500 68,000 67,899 296Department of Public Enterprises VI Annexure-8 Guidelines For Implementation of New Public Sector Enterprises (PSE) Policy for CPSEs In Non-Strategic Sector 2.2 Preparation of CCEA Note seeking in- principle: After identification of CPSEs for closure or 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 that 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 i) Atomic Energy, Space, and Defence necessary action as per its extant procedure. Closure of 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 for closure, on the lines of disinvestment process being intimating about the intention of closure and also run by DIPAM. write to the Ministry of Labour and Employment 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 297Annual Report 2022-2023 for settlement at minimum value. Administrative period of lease, current land use, FAR and other rights Ministry/Department may critically examine the relating to use of land, whether land compensation (partly/ best possible settlement including schedule of fully) paid by the CPSEs/ Central Government at the time 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- to the unsecured creditors should be worked out. operate, the Administrative Ministry/ Department can take a view on removing the Functional Directors including h. Estimation of movable assets: Updating details the CMD and give additional charge of the CMD to the of movable assets including plant(s) & Joint Secretary concerned and charge of Functional machineries and verification of inventory from an Directors to other senior officers in the administrative independent third party e.g., a firm of Chartered Ministry/ Department as per extant guidelines in this Accountants/Cost Accountants. Besides, Book regard. This information regarding removal of the Value of the movable assets, the current Functional Directors including the CMD will be estimated market value and realisable value from 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 however, clarified that the Central Government reserves disposal of land as per the DPE closure guidelines dated the right to decide which of the requirements of funds it 14.06.2018, LMA will continue to manage the land and can dispose off the same to any appropriate agency at will permit out of budgetary support. best discovered price. The Forward Auction Platform of 3.1.3 Updating of land records of immovable GeM or MSTC can also be availed by LMA or assets: Updating of land records such as title deed, lease Administrative Ministry directly for disposal of immovable hold land, freehold land, conditions of lease, remaining assets. 298Department of Public Enterprises VI 3.2.3 The Secretary of the Administrative Ministry/ (f) If the CPSE is not able to dispose of movable Department will monitor the progress of alienation of assets within the stipulated time-frame, it should immovable assets from the CPSE. be brought to notice of the Administrative Ministry/ Department by the CPSE. Thereafter, the 3.3 Implementation of VRS/VSS: Administrative Ministry/ Department shall redress (a) The Administrative Ministry/ Department through the matter within 15 days and shall take a Board of CPSE will settle wages/salaries of decision on settlement of the disposal of movable employees and statutory dues and complete the assets. VRS/VSS process and payment of compensation 3.6 Budgetary support from D/o Expenditure: to non-VRS optees as per law. Based on the detailed liabilities to be settled as per the (b) The CPSE staff shall be assigned specific tasks Closure Note, DPE will make a request for budgetary during implementation of VRS/VSS so that all support to DoE in respect of the liabilities to be settled. the groundwork is completed within the above- However, the right to decide as to which of the mentioned period and there is no requirement of requirements of funds is to be permitted out of budgetary retaining the staff during subsequent process of support would vest with the Central Government. closure. 4. Filing of application before Registrar of 3.4 Settlement of liabilities Companies (RoC): Once the requisite formalities related (a) The payment of statutory dues/ liabilities towards to settlement of all liabilities and assets are completed, revenues, taxes, cesses and rates due to Central the Board of Directors of the CPSE shall take necessary Government or State Government or to the local steps for filing the application for removal of name from authorities to be completed first. the Register of Companies as given below: (b) Administrative Ministry/Department will negotiate a) Apply under Section 248 of the Companies Act, with the Secured Creditors to settle their dues at 2013 to the RoC for removal of the name of the the minimum value as One Time Settlement CPSE from the Register of Companies with the (OTS). new revised form STK-3A issued by Ministry of Corporate Affairs (MCA) vide notification dated (c) The order of priority of settlement of other 29th June, 2020 along with other forms (STK-2&4) liabilities will be in the priority of distribution as prescribed under the Companies (Removal of mentioned in Section 53 of Insolvency & Names of Companies from the Register of Bankruptcy Code 2016. Companies) Rules, 2016 by MCA. This 3.5 Disposal of movable assets: amendment enables the authorized representative (Under Secretary or its equivalent) (a) The CPSE shall carry out the processes of of the concerned administrative Ministry/ disposal of movable assets including plant & Department to furnish indemnity bond on behalf machinery in a transparent manner through an of the administrative Ministry/Government of Auctioning Agency (such as MSTC) appointed / India (Owner of CPSE) for any future liability ‘Forward Auction’ Platform available on GeM by instead of by individual Directors of the CPSE. the CPSE under the supervision of administrative , Ministry/ Department. b) The Administrative Ministries/Departments and their CPSEs filing closure application before the (b) Intangible assets like brand name, goodwill, Registrar of Companies will also take a note of trademarks, intellectual property, etc. of the the MCA Circular No. 1/2020 dated 1st July, 2020 CPSE under closure shall be transferred to the issued to all the Registrars of Companies to concerned administrative Ministry/Department of the CPSE for disposing of separately. enable processing of applications of CPSEs having pending litigations relating to service (c) The leasehold movable assets may be returned matters, VRS/VSS of employees, so that the to the lessor at latter’s option. same is not the ground for rejection of such closure applications. (d) In case, any of the movable assets are required by its holding company or by the administrative 5. Policy support: For any policy support or Ministry/ Department, the same may be clarification on any issue for completing the closure transferred to them. process, as required by the administrative Ministry/ (e) The CPSE in consultation with the administrative Department, the same will be provided by the IMC. While Ministry/ Department, if necessarily required, may taking the “in-principle” approval of CCEA, the approval dispose of factory building structure along with will also be sought for empowering the Hon’ble Finance disposal of movable assets. Minister to approve the cases of any deviation with respect 299Annual Report 2022-2023 to the closure process of Non-Strategic sector CPSEs 7. Closure of subsidiaries/units of CPSEs: The from the decision of CCEA. The concerned administrative process of closure of subsidiaries/JVs/units of CPSEs Ministry/Department shall refer the proposal for shall be carried out by the Board of Directors of the clarification/policy support to DPE for placing before the Holding CPSE(s) in accordance with above guidelines. IMC. The recommendations of IMC shall be thereafter 8. Process for on-going Cases: Cases in which referred by DPE to Finance Minister for seeking approval. the Administrative Ministry/ Department has obtained the DPE will function as the secretariat for processing the CCEA/ Cabinet approval for closure, the concerned policy matters to be referred to Finance Minister. administrative Ministry/Department will review and seek 6. Special cases: Closure u/s 248 of CA 2013 is the budgetary support from D/o Expenditure through recommended as primary mode under the revised Financial Adviser (FA) within 15 days of the issue of these guidelines. In complex cases especially involving guidelines to complete the closure process as per revised exorbitantly high liabilities, IBC 2016 route may be mechanism. However, the right to decide as to which of followed while providing adequate justification in the note the requirements of funds is to be permitted out of for CCEA approval by DPE. The process of filing budgetary support would vest with the Central application under IBC 2016 shall be done within 3 months Government. of receipt of Minutes of CCEA approval by concerned 9. Time-lines: The entire process of closure of CPSE CPSE Board & its Administrative Ministry. In addition, in shall be completed within the Timeframe mentioned in respect of the listed CPSEs, the SEBI Delisting Annex-I. Regulations, 2009 and regulatory requirement(s) will be 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. 300Department of Public Enterprises VI Annexure-I to Annexure-8 Timelines of activities for closure of CPSEs Sl.No. Milestones/ Activities Time-Lines 1 In principle approval of closure / disinvestment of CPSEs in a Preparatory date (T ) 0 Non-Strategic Sector by the Cabinet/ CCEA. 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 T + 3 months 0 ascertaining statutory 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 T + 5 months 0 approval of FM on 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 T 7 months and 45 days. 0 + CPSE 301Annual Report 2022-2023 Annexure-II to Annexure-8 Definitions i) Preparatory Date (T ) shall be the date on which Engineering Projects (India) Ltd.(EPIL) or a public 0 ‘in principle’ approval of closure of CPSE has agency under Ministry of Housing and Urban been taken by the CCEA. Affairs (MoHUA) which has been appointed and 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 Government are classified as CPSEs. The vi) Forward Auction Platform: It is a facility Subsidiaries of these Companies in which any available on GeM for auction of movable and 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 Immovable asset like Plant & Machinery, CPSE such as NBCC (India) Ltd.(NBCC)/ Furniture, vehicles etc. 302For 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 iANNUAL REPORT 2022-2023 ANNUAL REPORT 2022-2023 MINISTRY OF FINANCE ºÉiªÉàÉä´É VɪÉiÉä ºÉiªÉàÉä´É VɪÉiÉä Government of India MINISTRY OF FINANCE PRINTED AT BUDGET PRESS, MINISTRY OF FINANCE, NEW DELHI