Annual Reports 2024-25

ºÉiªÉàÉä´É VɪÉiÉä Government of India MINISTRY OF FINANCE ANNUAL REPORT 2024-2025 ANNUAL REPORT 2024-2025 MINISTRY OF FINANCE ºÉiªÉàÉä´É VɪÉiÉä 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 7 4. Financial Stability and Cyber Security Division 25 5. Financial Sector Reforms and Legislation Division 28 6. Infrastructure Policy and Planning Division 30 7. Investment Division 32 8. FB & ADB Division 36 9. International Economic Relations Division 41 10. Aid Accounts & Audit Division 48 11. Administration Division 49 12. Bilateral Cooperation and Sustainable Finance Division 51 13. Integrated Finance Division 58 14. Coin & Currency Division 62 15. Other Multilateral Institutions Division 68 16. Infrastructure Support and Development Division 69 Annexures 73 Organisation Chart 79 iCHAPTER II Department of Expenditure 1. Personnel Division 81 2. Public Finance-States Division 83 3. Public Finance Central Division 85 4. Procurement Policy Division 86 5. Official Language 87 6. Integrated Finance Unit (IFU) 88 7. Controller General of Accounts 88 8. Chief Adviser Cost 92 9. Arun Jaitley National Institute of Financial Management (AJNIFM) 94 10. Chief Controller of Accounts (Finance) 96 11. Central Pension Accounting Office 98 Annexures I to III 100 Organisation Chart 102 CHAPTER III Department of Revenue 1. Organization and Functions 103 2. Central Board of Direct Taxes 104 3. Central Board of Indirect Taxes and Customs 113 4. Revenue Headquarters Administration 132 5. Integrated Financial Unit (IFU) 175 6. Implementation of Official Language Policy 176 7. Right to Information Act, 2005 178 8. Swachh Bharat Campaign 179 Annexure - I - Representation of SCs/STs/OBCs 180 Annexure - II - Representation of the PWD 191 Annexure - III - Summary of Audit Reports / Paras 201 Annexure - IV - Organization Chart 206 iiCHAPTER IV Department of Investment and Public Asset Management I. Functions 207 II. Vision 207 III. Mission 207 IV. Organisational Structure 207 V. Current Policy on Disinvestment in CPSEs 207 VI. Value Creation in CPSEs 209 VII. Disinvestment Performance 210 VIII. Other Initiatives 212 IX. Capital Management & Dividend Receipts 213 X. Initiatives Undertaken for Persons with Disabilities, Schedule Castes, Scheduled Tribes and Other Backward Classes 213 XI. Initiatives Relating to Gender Budgeting and Empowerment of Women 213 XII. Official Language Policy 213 XIII. E-Governance 213 XIV. Redressal of Public Grievances 214 XV. Vigilance Machinery 214 XVI. Right to Information Act, 2005 214 XVII. Initiatives for Good Governance 214 XVIII. Audit Paras/Objections 214 XIX. Integrated Finance Unit 214 XX. Special Campaign 4.0 215 XXI. Monitoring of Court Cases 215 Annexure I 216 Appendix I - Organisation Chart 218 Appendix II 219 iiiCHAPTER V Department of Financial Services 1. Organisations/Institutions/Regulators Under DFS 221 2. Organisational Chart 222 3. Work Allocation among Sections 223 4. Developments in Banking Sector 230 5. Financial Inclusion 245 6. Key Schemes 251 7. Agriculture Credit 258 8. Priority Sector Lending (PSL) 261 9. Insurance Sector 263 10. Pension Sector 268 11. Financial Institutions 271 12. Special Court and Office of Custodian 280 13. Disposal of Public Grievances 281 14. Right to Information (RTI) Act, 2005 282 15. Vigilance 282 16. Debt Recovery Tribunals (DRTs)/ Debt Recovery Appellate Tribunals (DRATs) 282 17. Cyber Security and Fintech 283 18. Representation from SCs, STs, OBCs and PWDs in Financial Sector Institutions 284 19. Audit Paras 285 Annexures 285 ivCHAPTER VI Department of Public Enterprises 1. Public Enterprises Survey 287 2. Organisation and Autonomy of CPSEs 287 3. Wage Policy and Manpower Rationalization 288 4. Categorisation of CPSEs 289 5. Monitoring and Evaluation 290 6. Corporate Social Responsibility (CSR) 290 7. Scheme for Research, Development, Consultancies and Re-orientation for Central Public Sector Enterprises (RDCR) 291 8. National Land Monetization Corporation 293 9. Voluntary Retirement Scheme (VRS) 293 10. Executive Development Programmes 293 11. Reservation for Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs) and Others, in the CPSEs 293 12. Official Language Policy 295 13. Procurement by CPSEs from MSEs and through GeM 295 14. Significant Initiatives 296 15. Cyber Security Compliance Report 296 Annexure 1 - Organisation Chart 297 Annexures 2-7 298 vIntroduction Introduction The Ministry comprises of six Departments catalyse the growth. From the angle of aggregate demand namely:— in the economy, private final consumption expenditure at constant prices is estimated to grow by 7.3 per cent, driven  Department of Economic Affairs by a rebound in rural demand. PFCE as a share of GDP  Department of Expenditure (at current prices) is estimated to increase from 60.3 per  Department of Revenue cent in 2023-24 to 61.8 per cent in 2024-25. This share is  Department of Investment and Public Asset the highest since 2002-03. Gross fixed capital formation Management (GFCF) (at constant prices) is estimated to grow by 6.4 per cent.  Department of Financial Services  Department of Public Enterprises On the external side, India's total exports have also shown positive momentum in the first nine months of FY25, 1. Department of Economic Affairs witnessing a year-on-year (YoY) growth of 6.031 per cent. India's total imports during April-December 2024 registered a YoY growth of 6.91 per cent. The faster pace of increase Economic Growth in merchandise imports compared to exports contributed The global economy demonstrated resilience in 2024 to the widening of the merchandise trade deficit. However, despite challenges posed by evolving geopolitical rising net service receipts continued to support dynamics. The International Monetary Fund, has projected improvement in the current account balance. growth of 3.2 per cent and 3.3 per cent for 2024 and 2025, Performance of the Agriculture sector respectively. While the overall outlook remains stable, regional variations in growth trajectories are evident. The Indian agriculture sector grew by 1.4 per cent in Inflation rates globally have converged, pointing to a decline 2023-24. Agriculture and the allied sector grew by 3.5 per in global inflation rates. Global headline inflation is cent in the Q2 of FY25. The total food grain production projected to fall from an annual average of 6.7 per cent in during 2023-24 is estimated at a record 3323 Lakh Tonne 2023 to 5.7 per cent in 2024 and further to 4.2 per cent in (LT), which is higher by 26 LT than the production of food 2025, with advanced economies nearing their inflation grains achieved during 2022-23. A record increase foodgrain targets sooner than emerging and developing economies. production is due to higher production of rice, wheat and Sudden eruptions in financial market volatility could tighten shree anna. Total rice production was higher by 20.7 LT in financial conditions and weigh on investment and growth. 2023-24 than 2022-23, while wheat production is higher Further disruptions to the disinflation process could by 27.4 LT than the previous year. The production of shree potentially be triggered by new spikes in commodity prices anna is estimated at 176 LT in 2023-24 as compared to amid persistent geopolitical tensions. Against this 173 LT in 2022-23. Further, the total pulses production backdrop, India continues to demonstrate a resilient during 2023-24 is estimated at 243 LT and total oilseeds economic performance, reaffirming its position as the production is estimated at 397 LT. fastest-growing major economy, driven by strong Table 1: Agricultural Production (Lakh Tonnes) macroeconomic fundamentals and a promising outlook. Crops 2019-20 2020-21 2021-22 2022-23 2023-24* As per the first advance estimates released by the Rice 1188.7 1243.7 1294.7 1357.6 1378.3 Wheat 1078.6 1095.9 1077.4 1105.5 1132.9 National Statistical Office, Ministry of Statistics & Nutri/Coarse Programme Implementation, the real GDP growth for 2024- 477.5 513.2 511.0 573.2 569.4 Cereals 25 is estimated to be 6.4 per cent. The real GVA growth is Total Pulses 230.3 254.6 273.0 260.6 242.5 also estimated to be 6.4 per cent. Among the sub-sectors Total Nine 332.2 359.5 379.6 413.6 396.7 in the economy, construction, utility services such as Oilseeds Cotton # 360.7 352.5 311.2 336.6 325.2 electricity, gas, water supply & other utility services, Source: M/o A&FW finance, real estate & professional services, public Note:* 1st advance Estimates (as on 5 November 2024) administration, defence & other services are estimated to #In Lakh bales, 1 Bale = 170 kgs. 1 https://pib.gov.in/PressReleasePage.aspx?PRID=2093104. Note: The latest data for services sector released by RBI is for November 2024. The data for December 2024 is an estimation, which will be revised based on RBI’s subsequent release. viiAnnual Report 2024-2025 The livestock sector grew at a compound annual growth economy, accounting for 1.1 per cent in the national GVA rate (CAGR) of 12.9 per cent during 2014-23 and is one of and 7.3 per cent in agricultural GVA in 2022-23. The total the fastest-growing sectors of the country. As per the fish production in FY24 stood at a record-high 183.76 lakh estimates of National Accounts Statistics 2024 for sector- tonnes. wise Gross Value Added (GVA) of agriculture and allied sectors, the contribution of livestock in total agriculture Performance of industries and allied sector GVA has increased from 24.4 per cent in The performance of the industrial sectors based on 2014-15 to 30.2 per cent in 2022-23. The livestock sector the Index of Industrial Production (IIP) comprising mining, contributed 5.5 per cent of the total GVA in 2022-23. Egg manufacturing and electricity sectors witnessed continued production has increased by 76.3 per cent over the past 9 momentum during FY24 (April-November), barring a few years from 78.5 billion numbers during 2014-15 to 138.4 months. According to NSO, MOSPI, the IIP-based billion numbers during 2022-23. Per capita Egg production industrial growth during FY25 (April-November), was 4.1 has increased from 62 numbers per person per annum to per cent, as compared to 6.5 per cent during FY24 (April- 101 numbers for the same period. November). The three broad sectors, mining, manufacturing Milk production has increased by 57.6 per cent, from and electricity sectors registered growth of 3.3 per cent, 146.3 million tonnes in 2014-15 to 230.6 million tonnes in 4.1 per cent and 5.3 per cent, respectively in FY25 (April- 2022-23. Per capita availability of milk increased from 319 November) as against 9.1 per cent, 5.9 per cent and 7.7 grams per person per day in 2014-15 to 459 grams per per cent growth, respectively, during the corresponding person per day in 2022-23. period last year. In terms of used-based grouping, all subgroups, except consumer non-durable goods, The fisheries sector progressively contributing to the witnessed positive growth during FY24 (April-November). Table 2: Growth of index of industrial production (IIP) (%) (Base 2011-12=100) 2023-24 2024-25 Industry group Weight 2023-24 (April-Nov) (April-Nov) Mining 14.37 7.5 9.1 3.3 Manufacturing 77.63 5.5 5.9 4.1 Electricity 7.99 7.1 7.7 5.3 Growth by used-based industrial group Primary Goods 34.05 6.1 7.2 4.0 Capital Goods 8.22 6.3 7.6 4.4 Intermediate Goods 17.22 5.3 5.0 4.2 Infrastructure/Construction Goods 12.34 9.7 11.4 6.3 Consumer Durable Goods 12.84 3.6 0.6 8.7 Consumer Non-Durable Goods 15.33 4.1 5.7 -0.5 General Index 5.9 6.5 4.1 Source: M/o SPI The index for eight core industries comprising coal, FY25 (April-Dec) compared to 8.3 per cent in FY24 crude oil, natural gas, refinery products, fertilizers, steel, (April-Dec). The production of cement, coal, steel, cement and electricity with a combined weight of nearly electricity, refinery products, crude oil and fertilizers 40 per cent in the IIP, registered growth of 4.2 per cent in recorded positive growth in December 2024. Table 3: Growth in eight core industries (%) 2023-24 2024-25 Industry group Weight 2023-24 (April-Dec) (April-Dec) Coal 10.33 11.8 12.5 6.2 Crude oil 8.98 0.6 -0.3 -2.1 Natural gas 6.88 6.1 5.6 0.7 Petroleum refinery products 28.04 3.6 4.9 2.7 Fertilisers 2.63 3.7 6.2 1.6 Steel 17.92 12.5 14.0 5.8 Cement 5.37 8.9 9.4 3.3 Electricity 19.85 7.1 7.0 5.3 Overall growth rate 100 7.6 8.3 4.2 Source: O/o Economic Adviser, DPIIT viiiIntroduction Performance of the service sector Q3 of FY25, the MPC has raised the inflation forecast for FY25 to 4.8 per cent from an earlier forecast of 4.5 percent. Service sector is estimated to have grown by 7.2 per cent during FY25 as per the first advance estimates. Bank Developments in capital markets credit to the services sector saw a YoY growth of 12.7 per cent in October 2024, amounting to `47.8 lakh crore. Capital markets are central to India's growth story, Within the services sector, computer software, shipping, catalysing capital formation for the real economy, aviation and professional services witnessed a strong enhancing the financialisation of domestic savings, and growth in bank credit. India's services exports have been enabling wealth creation. As of December 2024, the Indian consistently rising. Services exports stood at USD 93.5 stock market has achieved new highs, with intermittent billion in Q2 FY25, recording a growth of 12.2 per cent corrections, in the midst of geopolitical uncertainties, currency depreciation and domestic market volatility over the corresponding period of FY24. Software and challenges. Investor participation has been a contributor, business services together constituted around 74 per cent with number of investors growing from 4.9 crore in FY20 of India's total services exports in Q2 FY25. to 13.2 crore as of 31 December 2024. This growth, Trends in retail and wholesale price inflation combined with active listing activity and recent measures by the regulator, viz. Securities and Exchange Board of Retail inflation measured by Consumer Price Index- India (SEBI), to temper excesses, is expected to foster Combined declined from 5.4 per cent in FY24 to 4.9 per sustainable market expansion. cent in FY25 (April-Dec). While core inflation (non-food, The total resource mobilisation from primary markets non-fuel) moderated in FY25 (April-Dec), food inflation (equity and debt) stands at `11.1 lakh crore from April to escalated due to price volatility in certain specific food December 2024, which is 5 per cent more than the amount items. Inflation measured in terms of Wholesale Price mobilised during entire FY24. This also amounts to 25.6 Index (WPI) was 2.2 per cent in FY25 (April-Dec). WPI per cent of gross fixed capital formation of private and food inflation averaged 6.1 per cent in FY25 (April-Dec) public corporations during FY24. The number of IPOs compared to 3.2 per cent recorded in FY24. increased by 32.1 per cent to 259 during April to December Table 4: Trend in retail and wholesale price inflation (%) 2024 from 196 in the corresponding period of the previous Year Inflation based on Inflation based on year, while the amount raised almost tripled from `53,023 Consumer Price Wholesale Price Index crore to `1,53,987 crore in the same period. The mainboard Index-General platform witnessed a significant increase in issue size as 2019-20 4.8 1.7 the average IPO deal size rose to `2,124 crore, up from 2020-21 6.2 1.3 2021-22 5.5 13 `814 crore in entire FY24. In the case of small and medium 2022-23 6.7 9.4 enterprises (SMEs) IPOs, the average deal size increased 2023-24 5.4 -0.7 to `39 crore from `31 crore during the same period. 2024-25 4.9 2.2 Reflecting the buoyant market conditions, Qualified (April-Dec) Institutional Players (QIPs) emerged as the preferred equity Source: M/o SPI and D/o PIIT fundraising mechanism for the corporates during FY25, Monetary developments with a 11.4 per cent share in total capital raised. Resource mobilisation through rights issues remains buoyant, with During FY25 (April-December 2024), the MPC has `16,881 crore raised during April to December 2024, decided to keep the policy repo rate unchanged at 6.5 per compared to `6,538 crore in the corresponding period of cent. Until its August 2024 meeting, the committee the previous year. retained its stance on withdrawing accommodation to Since the commencement of FY25, they have ensure inflation aligns with the target while supporting experienced significant volatility driven by various events. growth. Considering the prevailing and expected inflation- These include the general elections in June 2024, the growth dynamics, i.e., resilient domestic growth outlook, unwinding of carry trades in Japan in August 2024, the better prospects for rabi and kharif crops, and availability escalation of conflict in the Middle East and the U.S. of ample buffer stocks of foodgrains, the committee in its Presidential Election (November 2024). Notwithstanding October 2024 MPC decided to change the monetary policy the intermittent corrections, the markets showed a stance from the withdrawal of accommodation to 'neutral'. consistent upward trend until September 2024, scaling In its December 2024 meeting, taking note of the recent new all-time highs. Strong domestic economic prospects, growth momentum slowdown, it revised its growth forecast robust domestic institutional investor inflows, foreign for FY25 to 6.6 per cent from an earlier forecast of 7.2 per portfolio investments, anticipated policy pivots from major cent. Driven by a rise in inflation in October 2024 central banks, etc., drove the uptrend. However, this trend (surpassing the RBI's upper tolerance limit) and the has moderated since October 2024, driven by economic expectations of high food inflation pressures to persist in stimulus measures in China, the US Presidential elections ixAnnual Report 2024-2025 and valuation concerns. On account of recent corrections, growth from March 2024. The mutual fund segment the benchmark index, Nifty 50, delivered a return (in local presently has more than 10 crore Systematic Investment currency) of 4.6 per cent return from April to December Plan (SIP) accounts, with cumulative SIP inflows of `10.9 2024. The highest returns (in USD) were delivered by Hong lakh crore since inception. Monthly average gross SIP Kong's Hang Seng (22.2 per cent), followed by Nasdaq flows have more than doubled in the last three years, from Composite (17.9 per cent), Singapore FTSE Straits Times `0.10 lakh crore in FY22 to `0.23 lakh crore in FY25. (16.2 per cent) and South Africa's FTSE/JSE All Share Aided by these sustained inflows, mutual fund ownership index (13.3 per cent) during the same period. in Indian listed companies has risen to a fresh all-time high of 9.5 per cent4 in the quarter ending September The period since the pandemic has seen a surge in 2024, from 8.7 per cent in FY24. individual and household participation as capital market investors through direct (trading in markets through their Liquidity conditions and its management accounts) and indirect (through mutual funds) channels. Healthy corporate earnings, stable macro fundamentals, Examining the trend in various measures of money efficient and robust technology architecture facilitating supply in the economy, viz., different aggregates that reflect efficient trading, clearing, and depository systems, and varying degrees of liquidity, it is seen that the monetary trust garnered by mutual fund ecosystem and online digital base, viz. the most liquid form of money, M0, recorded a investment platforms have encouraged greater participation year-on-year (YoY) growth of 3.6 per cent as of 3 January in capital markets. The incremental addition to demat 2025, compared to 6.3 per cent a year ago. The growth in accounts has been continuously increasing, with the M3, excluding the impact of the merger of a non-bank number of demat accounts rising sharply by 33 per cent with a bank (with effect from 1 July 2023), was 9.3 per to 18.5 crore at the end of December 2024 on a YoY basis. cent (YoY) as of 27 December 2024, compared to 11 per In the equity cash segment, individual investor share cent a year ago. Component-wise5 , aggregate deposits turnover2 was 35.6 per cent from April to December 2024. were the most significant component and contributed most There are 11.5 crore unique investors with demat accounts to the expansion of M3. Amongst sources6 , bank credit and 5.6 crore unique investors in mutual funds as of the to the commercial sector was a major contributor to the end of December 2024. Higher investor participation has engendered a self-reinforcing cycle of strong market increase in M . As of 27 December 2024, MM7, i.e., the 3 returns, bringing in even more investors. This, in turn, will ratio of M to M , stood at 5.7 against 5.5 a year ago. 3 0 eventually transform the securities market into a more Adjusted for reverse repo amounts, analytically akin to diverse, inclusive, and robust platform for wealth creation. banks' deposits with the central bank, the adjusted MM was lower at 5.6 as of 27 December 2024. The mutual fund industry has grown well in the last few years and is now crucial in channelling financial savings Performance of the Banking sector towards risk capital formation and leveraging technology and innovation. The rise in retail participation through The GNPA ratio of SCBs has declined consistently mutual funds is reflected in the doubling of unique investors from its peak in FY18 to a 12-year low of 2.6 per cent at from 2.9 crore in FY21 to 5.6 crore as of December 2024. the end of September 2024. Lower slippages and a The total number of folios (excluding FoF domestic reduction in outstanding GNPAs through recoveries, schemes) increased from 17.8 crore at the end of FY24 upgradations, and write-offs have led to this decrease. to 22.5 crore at the end of December 2024, and retail Lower GNPAs and higher provisions accumulated in recent investors3 held mutual fund units worth `18.6 lakh crore. years also contributed to a decline in net NPAs at around This surge in participation, coupled with strong market performance, has led to a remarkable increase in mutual 0.6 per cent at the end of September 2024. Improvements funds' assets under management, which rose to `66.9 in asset quality parameters were observed across all major lakh crore as of December 2024, registering 25.3 per cent bank groups. 2 Share turnover refers to the ratio of the value of traded shares of individual category to the total turnover in the cash market (BSE and NSE). 3 Defined as individuals investing 2 lakh or below. 4 Includes passive and active (Source: NSE Market Pulse, November 2024) 5 Components of Broad Money=Currency with the Public + Aggregate Deposits (Demand Deposits with Banks + Time Deposits with banks + ‘Other’ deposits with Reserve Bank). 6 Sources of Broad Money=Net Bank Credit to Government + Bank Credit to Commercial Sector + Net Foreign Exchange Assets of Banking Sector + Government’s Currency Liabilities to the Public- Banking Sector’s Net Non-Monetary Liabilities). 7 The money multiplier measures the maximum amount of money that a banking system generates with each unit of central bank money. xIntroduction The restructured standard advances (RSA) ratio, which Sector-wise, the growth in agriculture credit as of 29 is the share of RSA in total gross loans and advances, for November 2024 in the current financial year was 5.1 per SCBs declined from 1.8 per cent at the end of March 2022 cent. The growth in idustrial credit picked up and stood to 0.7 per cent at the end of September 2024. All major at 4.4 per cent as of the end of November 2024, higher bank groups reported a decrease in this ratio. The CRAR than 3.2 per cent recorded a year ago. Across industries, of SCBs has increased in the post-asset quality review bank credit to micro, small, and medium enterprises period, which was conducted from August to November (MSMEs) have been growing faster than credit disbursal 2015. For FY24, around 93 per cent of the increase in the to large enterprises. As of the end of November 2024, capital funds was contributed by the rise in Tier-I capital credit to MSMEs registered a YoY growth of 13 per cent, of banks, indicative of the robustness of capital buffers. At whereas it stood at 6.1 per cent for large enterprises. the end of September 2024, the CRAR of SCBs stood at Credit growth to the services and personal loans segments 16.7 per cent and all banks met the Common Equity Tier- also moderated to 5.9 per cent and 8.8 per cent, 1 (CET-1) requirement of 8 per cent. respectively, as of the end of November 2024 in the current financial year. Amongst the services sector, the The profitability of SCBs improved during H1 of FY25, moderation has been driven by a slowdown in credit with profit after tax (PAT) surging by 22.2 per cent (YoY). disbursal to NBFCs. Vehicle and housing loans drove the The cost of funds rose in sync with the tightening monetary moderation in the personal loans segment. In terms of policy cycle. During Q2 of FY25, the cost of funds increasing risk weights to NBFCs and credit cards, RBI’s increased marginally for SCBs. As the transmission was policy interventions contributed to the moderation of credit faster for lending rates relative to deposit rates and the growth in those segments. overall yield on assets remained broadly stable during the last year, the net interest margin (NIM) has marginally External trade declined across all bank groups. Despite a contraction in According to the latest trade update by UNCTAD10 , NIM, both return on equity and return on assets ratios the gradual increase in global trade that began in H2 of improved in September 2024. Further, as the GNPAs and 2023 has persisted into 2024. The WTO database shows slippages declined, the provision coverage ratio improved a YoY growth of 3.5 per cent and 3 per cent, respectively, further to 77 per cent at the end of September 2024 per in global merchandise export and import indices in Q3 of cent from 74.9 per cent in March 2023. 2024 (seasonally adjusted, 2005 Q1=100). Further, the Credit Growth global services exports and imports grew by 7.9 per cent and 6.7 per cent (YoY) during the same period. At the end of November 2024, the growth in overall bank credit moderated to 11.8 per cent (YoY) from 15.2 Factors such as moderating global inflation, stable per cent a year ago8. The moderation in credit growth can economic growth forecasts, and improving business activity be attributed to an increase in lending rates (as a result of are expected to foster positive momentum in global trade monetary policy transmission of higher policy rates to in early 2025. Nonetheless, this optimistic view faces higher lending rates) and the imposition of increased capital substantial challenges. Modest changes in U.S. tariffs can requirements for unsecured personal loans, credit cards significantly impact global trade dynamics due to its role and lending to Non-Banking Financial Companies (NBFCs) as a major consumer market and the interconnectedness by the RBI from 100 per cent to 125 per cent9. of cross-border value chains. An increase in tariffs and 8 The statistics in this section on bank credit exclude the impact of the merger of a non-bank with a bank. 9 RBI notification, ‘Regulatory measures towards consumer credit and bank credit to NBFCs’, dated 16 November 2023, https:// rbi.org.in/Scripts/NotificationUser.aspx?Id=12567&Mode=0. 10 UNCTAD Global Trade Update December 2024, https://unctad.org/publication/global-trade-update-december-2024. xiAnnual Report 2024-2025 the imposition of retaliatory measures can harm The merchandise trade deficit decreased from USD 264.9 international trade, investments, and overall economic billion in FY23 to USD 241.9 billion in FY24. During FY25 growth. The tendency to impose measures to promote (Apr-Dec), the trade deficit widened to USD 210.8 billion the production of sustainable and environmentally friendly from USD 189.7 billion in the corresponding period of the products will also likely hinder the growth of international previous year. This was largely due to moderate export trade, especially in strategic sectors. growth and a strong increase in merchandise imports in India's Merchandise Trade developments during FY23, the first nine months of FY25. FY24 and FY25 (April-Nov) may be seen in the table below. Table 5: Trends in India's Merchandise Trade FY23 FY24 Change in FY24 FY24 (Apr-Dec) FY25 FY25 (Apr-Dec) over over FY23 (Apr-Dec) FY24 (Apr-Dec) P Total Exports 451.1 437.1 -3.1 316.7 321.7 1.6 Total Imports 716.0 678.2 -5.3 506.4 532.5 5.2 POL Imports 209.4 178.7 -14.7 130 138.3 6.4 Non-POL Imports 506.6 499.5 -1.4 376.4 394.2 4.7 Trade Balance -264.9 -241.1 -9.0 -189.7 -210.8 18.4 Source: Department of Commerce, Department of Commerce and Industry Note: P: Provisional Balance of payment situation higher net services receipts. As per the press release of the RBI, the developments In the Capital Account and Financial Account, net in India's Balance of Payments for FY24 (April-Sept) and foreign direct investment inflows at USD 4.4 billion in H1 FY25 (April-Sept) may be seen in the Table 6. India's of FY25 were higher than USD 3.9 billion in H1 of FY24. current account deficit stood at USD 21.4 billion (1.2 per Foreign portfolio investors recorded net inflows of USD cent of GDP) in H1 of FY25 compared to USS 20.2 billion 20.8 billion in H1 of FY25 compared with net inflows of (1.2 per cent of GDP) in H1 of FY24. Net invisibles receipts USD 20.7 billion a year ago. During H1 of FY25, there at USD 119.0 billion were higher in H1 of FY25 compared was an accretion of USD 23.8 billion to the foreign exchange to USD 101.0 billion a year ago, primarily because of reserves (on a BoP basis). Table 6: Major Items of India's Balance of Payments (USD billion) Items FY24 (Apr-Sep) PR FY25 (Apr-Sept) P Credit Debit Net Credit Debit Net A. Current Account 453.3 473.5 -20.2 487.3 508.7 -21.4 1. Goods 213.2 334.4 -121.2 215.1 355.6 -140.4 of which: POL 41.7 84 -42.2 36.3 88.9 -52.6 2. Services 163.9 88.9 75.1 182 97.7 84.2 3. Primary Income 20.9 42.8 -21.8 28.8 49.4 -20.7 4 Secondary Income 55.3 7.5 47.8 61.5 5.9 55.5 B. Capital Account and 387.6 368 19.7 572.9 551.6 21.3 Financial Account of which: 1. Direct Investment 35.9 32 3.9 45.2 40.7 4.4 2. Portfolio Investment 201.8 181.1 20.7 342 321.2 20.8 3. Other Investments 139.2 114.5 24.7 173 144 29 of which: NRI Deposit 40.2 34.7 5.4 52.3 42.2 10.2 ECBs to India 17.9 14.1 3.7 20.8 14.2 6.7 4. Reserve Assets [Increase (-)/ 0 27 -27 0 23.8 -23.8 Decrease (+)] C. Errors & Omissions (-) (A+B) 0.5 0 0.5 0.1 0 0.1 Source: RBI Note: (i) PR stands for Partially Revised, and P for Provisional (ii) The total of sub-components may not tally with the aggregate due to rounding off. xiiIntroduction There was a moderate decline in India's foreign recovery in UR has been accompanied by an increased exchange reserves during FY25. The forex reserves stood labour force participation rate (LFPR)14 and the worker- at USD 640.3 billion at the end of December 2024, population ratio (WPR)15. The LFPR increased from 50.2 compared to USD 646.5 billion at the end of March 2024. per cent in 2018-19 to 60.1 per cent in 2023-24. At the The Indian rupee depreciated by 3.8 per cent against the same time, the WPR rose from 47.3 per cent to 58.2 per US dollar from 3 April 2024-31 December 2024. Further, cent during the same period. Notable, there has been a the INR depreciated against the Pound Sterling and Euro significant increase in female LFPR from 24.5 per cent in by 5.8 per cent and 0.4 per cent. The rupee appreciated 2018-19 to 41.7 per cent in 2023-24. against the Japanese Yen by 12.4 per cent during the same time period. The quarterly PLFS for urban areas (available till July- Sept 2024) shows an improvement in all the key labour Labour market indicators market indicators. The urban UR for individuals aged 15 As reported in the 2023-24 annual Periodic Labour and above has improved, decreasing from 6.6 per cent in Force Survey (PLFS)11 report by the NSO, the all-India Q2 FY24 to 6.4 per cent in Q2 FY25. During the same annual unemployment rate (UR)12 for individuals aged 15 period (from Q2 FY24 to Q2 FY25), the LFPR rose from years and above (usual status)13 has declined from 5.8 49.3 per cent to 50.4 per cent, and the WPR increased per cent in 2018-19 to 3.2 per cent in 2023-24. This from 46 per cent to 47.2 per cent. Table 7: Quarterly Employment Indicators for age 15 years and above Quarters LFPR Worker Population Ratio UR Jul-Sep 2021 46.9 42.3 9.8 Oct-Dec 2021 47.3 43.2 8.7 Jan-Mar 2022 47.3 43.4 8.2 Apr-Jun 2022 47.5 43.9 7.6 Jul-Sep 2022 47.9 44.5 7.2 Oct-Dec 2022 48.2 44.7 7.2 Jan-Mar 2023 48.5 45.2 6.8 Apr-Jun 2023 48.8 45.5 6.6 Jul-Sep 2023 49.3 46.0 6.6 Oct-Dec 2023 49.9 46.6 6.5 Jan-Mar 2024 50.2 46.9 6.7 Apr-Jun 2024 50.1 46.8 6.6 Jul-Sept 2024 50.4 47.2 6.4 Source: Quarterly PLFS reports. Employees' Provident Fund Organisation (EPFO) data Climate Action in India indicates the formalisation of the economy. Net additions India has ambitious commitments towards climate to EPFO subscriptions have more than doubled, rising action despite being one of the lowest per capita carbon from 61 lakh in FY19 to 131 lakh in FY24. In FY 25, emitters. We had submitted an ambitious NDC under the cumulative net additions to EPFO reached 95.6 lakh from Paris Agreement in October 2015 and were making steady April to November 2024, marking a 3 per cent YoY increase progress towards those commitments. India submitted its compared to the 92.9 lakh recorded during the same period updated NDC in August 2022. As per the updated NDC, in FY24. India stands committed to reducing the emissions intensity 11 PLFS survey year corresponds to July – June. For example, data for 2023-24 refers to the period July 2023 to June 2024. 12 UR is defined as the percentage of persons unemployed among the persons in the labour force. 13 For a person to be categorised as employed as per usual status (ps+ss), the individual must have pursued an economic activity for at least 30 days during the 365 days preceding the date of the survey. 14 LFPR is defined as the percentage of persons in labour force (i.e. working or seeking or available for work) in the population. 15 WPR is defined as the percentage of employed persons in the population. xiiiAnnual Report 2024-2025 of its GDP by 45 per cent by 2030 from the 2005 level and 3. Department of Revenue achieving about 50 per cent cumulative electric power installed capacity from non-fossil fuel-based energy The Department of Revenue exercises control in resources by 2030. It also takes forward the Hon'ble Prime respect of revenue matters relating to Direct and Indirect Minister's vision of sustainable lifestyles and climate Union taxes. The Department is also entrusted with the administration and enforcement of regulatory measures justice to protect the poor and vulnerable from adverse provided in the enactments concerning Goods and impacts of climate change, including through a mass Services Tax (GST), Central Sales tax, Stamp duties and movement for 'LIFE'- 'Lifestyle for Environment' as a key other relevant fiscal statutes. Control over production and to combating climate change. This update to India's disposal of opium and its products is vested in this existing NDC is a step towards our long-term goal of Department. Apart from this, Directorate of Enforcement, reaching net zero by 2070. FIU-IND, GSTN, CBN, CCF, CEIB, NIPFP are under the The country has been progressively decoupling administrative control of Department of Revenue. economic growth from greenhouse gas emissions and is making steady progress towards achieving those 4. Department of Investment and commitments mostly based on domestic resources. The Public Asset Management emission intensity of GDP was reduced by 36 per cent in The Department of Disinvestment was set up as a 2020 as compared to 2005, and the non-fossil fuel as a separate Department on 10th December, 1999 and was proportion of installed capacity is 47.1 per cent as of the later renamed as Ministry of Disinvestment from 6th end of December 2024. India's climate actions have been September, 2001. From 27th May, 2004, the Department largely financed from its own domestic sources. of Disinvestment is one of the Departments under the Ministry of Finance. 2. Department of Expenditure The Department of Disinvestment was re-named as The Department of Expenditure is the Nodal Department of Investment and Public Asset Management Department for overseeing the Public Financial (DIPAM) with effect from 14th April, 2016. Management System in the Central Government and matters connected with state finances. It is responsible 5. Department of Financial Services for the implementation of the recommendations of the Finance Commission and Central Pay Commission, As per Allocation of Business Rules (AOBR), the functions of the Department of Financial Services (DFS) monitoring of audit comments/observations and preparation include legislative and administrative matters pertaining of Central Government Accounts. It further assists Central to financial services sectors of Banking, Insurance, and Ministries/Departments in controlling the costs and prices Pension reforms. These include the administration of of public services, reviewing system and procedure to various acts related to financial services sector and optimize outputs and outcomes of public expenditure. The monitoring the performance of public sector banks, principal activities of the Department include overseeing insurance companies and other development financial the expenditure management in the Central Ministries/ institutions like NABARD, SIDBI etc. Departments through the interface with the Financial Advisors and the administration of the Financial Rules/ All matters pertaining to three financial sector Regulations/Orders, pre-sanction appraisal of major regulators, viz., Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India (IRDAI) and schemes/projects and handling bulk of the central Pension Fund Regulatory and Development Authority budgetary resources transferred to State. (PFRDA) are processed through this Department. It also The business allocated to the Department of functions as administrative department for Debt Recovery Expenditure is carried out through its Personnel & Tribunals (DRT) / Debt Recovery Appellate Tribunals Establishment Division, Public Finance-States Division and (DRAT). Public Finance-Central Divisions, Office of Chief Advisor This Department is responsible for appointment of key Cost, Office of Controller General of Accounts and Central functionaries of the financial services sector such as Pension Accounting Office. The Department has under Governor / Deputy Governor of Reserve Bank of India, its administrative control the Arun Jaitley National Institute Chairman / Members of IRDAI and PFRDA, Chairman / of Financial Management (AJNIFM), Faridabad, which is Managing Director and Chief Executive Officers (MD & an autonomous body. CEOs)/Executive Directors (EDs)/ Non-official Directors xivIntroduction to the Board of Public Sector banks/ insurance Public Sector Enterprises, including the companies/ other development financial institutions. Memorandum of Understanding mechanism. 2.7 Review of capital projects and expenditure in The Department of Financial Services (DFS) oversees Central Public Sector Enterprises. several key programs / initiatives of the Government 2.8 Survey of Public Enterprises. concerning the Banking Sector, the Insurance Sector and 2.9 Counselling, Retraining and Rehabilitation of the Pension reforms Sector in India. The key flagship employees in Central Public Sector schemes being currently managed by the Department Undertakings under Voluntary Retirement include the Financial Inclusion scheme of Pradhan Mantri Scheme. Jan Dhan Yojana (PMJDY), the social security schemes, 2.10 Rendering advice relating to revival, restructuring namely Pradhan Mantri Jeevan Jyoti Bima Yojana or closure of Public Sector Enterprises including (PMJJBY), Pradhan Mantri Suraksha Bima Yojana the mechanisms therefor. (PMSBY) & Atal Pension Yojana (APY) and the credit 2.11 Matters relating to Standing Conference of Public schemes namely Pradhan Mantri Mudra Yojana (PMMY) Enterprises. & Stand Up India (SUI). 2.12 Matters relating to International Center for Public 6. Department of Public Enterprises Enterprises. 2.13 Identification of CPSEs under Non-Strategic 1. Introduction : - sector for closure/ privatization and driving the closure process. In their 52nd Report of the Estimates Committee of 2.14 Monetization of Non-Core assets of CPSEs and 3rd Lok Sabha (1962-67) highlighted the necessity of other Government organizations. establishing a centralized coordinating unit to continually assess the performance of public enterprises. 3. Organizational Structure: - Consequently, the Indian government established the Department of Public Enterprises is headed by Bureau of Public Enterprises (BPE) in 1965, placing it Secretary to the Government of India who is assisted by under the Ministry of Finance. Following a reorganization an establishment with an overall sanctioned strength of of the Union Government's Ministries and Departments in 115 officers/personnel. The organizational structure of DPE September 1985, BPE became a part of the Ministry of is at Annexure-1. The Department has the following Industry. Further reforms took place in May 1990, elevating constituent Divisions: BPE to a full-fledged Department known as the Department of Public Enterprises (DPE). Department of Public 3.1Policy Division-I Enterprises was made part of the Ministry of Heavy Industries & Public Enterprises. DPE was brought under Policy Division-I oversees matters related to the Ratna the Ministry of Finance vide Cabinet Secretariat Notification Scheme of CPSEs, including delegation of powers, dated 6th July, 2021. The Department of Public Enterprises classification, creation of board-level posts, creation of (DPE) remains under the Ministry of Finance continues posts below board level and exemption from immediate to play a pivotal role in formulating policies and guidelines absorption. concerning the functioning and performance of public sector enterprises in India. 3.2Policy Division-II 2. Functions: Policy Division-II deals with issues related to MSME procurement under Public Procurement 2012 Policy, GeM The following subjects are being dealt by DPE: procurement by CPSEs, examination of COS/ECOS 2.1 Coordination of matters of general policy proposals, PIB/SFC/EFC/Cabinet/CCEA notes (other than affecting all Public Sector Enterprises. those related to disinvestment and infusion of equity), CSR 2.2 Composition of Boards of CPSEs. spending and policy framework thereto, Employment and 2.3 Categorization of Central Public Sector reservations in CPSEs, formulation or modification of Enterprises including conferring 'Ratna' status. guidelines of CRR and RDC schemes and conduction & 2.4 Matters relating to Administrative Mechanism coordination of training under these schemes, Databank for Resolution of CPSEs Disputes (AMRCD). of NoDs (IDs) and proposals for selection and appointment 2.5 Wage policy & manpower rationalization of of IDs on the Boards of CPSEs, training/orientation of CPSEs. 2.6 Evaluation and monitoring the performance of BoDs, training of DPE employees, including matters xvAnnual Report 2024-2025 related to Capacity Building Commission and Karamyogi Non-Strategic Sector driving the closure process. Bharat, engagement of Interns, programmers under RDC & CRR for OTNS related work, etc. 3.7Administration, Establishment, Parliament & Coordination Division 3.3Wage Cell The Division handles all administrative and Wage Cell deals with the policy relating to pay revision coordination matters of DPE relating to personnel of CPSE executives at Board as well as below Board level management, maintenance of personnel records including and non-unionized supervisors, and issues broad leave, salary, service book and Parliamentary matters. guidelines for wage settlement negotiations in case of workmen in CPSEs. Wage Cell also issues DA orders for 3.8Administrative Mechanism for Resolution both of IDA employees and CDA employees of the CPSEs. of CPSEs Disputes (AMRCD) 3.4MoU Division Administrative Mechanism for Resolution of CPSEs The MoU Division is responsible for formulating Disputes deals with all COMMERCIAL DISPUTES between guidelines and implementing the Memorandum of Central Public Sector Enterprises (CPSEs) inter se and Understanding (MoU) framework for performance evaluation also between CPSEs and Government Departments/ of Central Public Sector Enterprises (CPSEs). Additionally, Organizations (excluding disputes relating to Railways, the division compiles data on capital expenditure (CAPEX) Income Tax, Customs & Excise Departments), as per incurred by select CPSEs and compliance status of Revised AMRCD Guidelines Dated 14.12.2022. Corporate Governance guidelines for the CPSEs. 3.9National Land Monetization Corporation 3.5Survey Division (NLMC) Survey Division collates information on important physical and financial attributes of all CPSEs into a NLMC has been incorporated to support other comprehensive annual report "Public Enterprises Survey" Government entities and CPSEs in monetizing their non- and places the same in both the Houses of Parliament core assets in an efficient and professional manner, every year. maximizing their value realization. It deals with all matters related to Secretarial assistance for meetings of IMG/ The Survey division also facilitates the laying of the Reports of the Comptroller and Auditor General (C&AG) CGAM/ AM, Coordination with CPSEs and Govt. agencies of India (Commercial) in the Parliament. It also follows up for monetization of assets, with the administrative Ministries / Departments for submission of Action Taken Notes (ATN) on Audit Paras 3.10 Information Technology Cell (IT Cell) as and when requested by C&AG. Information Technology cell looks after the portals of the department and online platforms. IT Cell deals with all 3.6Disinvestment Division matters related to Maintenance and Up gradation Disinvestment Division is responsible for the Dashboard, Development and Maintenance online implementation of new PSE Policy in Non-Strategic Sector platforms, Supervision of IT Cell and Social Media for identification of CPSEs for closure or privatisation in Management xviChapter - I Department of Economic Affairs 1. Economic Division  External Sector Unit 1.1 The Economic Division provides expert advice  Industry Unit to the Government on important issues of economic  Macro unit policy. The Division examines domestic and international  Money and Banking Unit economic trends and undertakes research studies having a bearing on economic policies and management of the  Prices Unit economy and renders policy advice.  Public Finance Unit 1.2 The work of the Division culminates each year  Services Unit in the publication of the annual Economic Survey, which is presented to Parliament as a curtain raiser to the  Social Sector Unit Annual Union Budget. Over time, the Economic Survey  Co-ordination Unit has become a respected and authoritative source, Agriculture and Food Management Unit providing a comprehensive overview of the Indian economy's annual performance. Additionally, the division 1.5 Agriculture and Food Management unit is contributes key inputs to the Budget Division, including responsible for: (a) Providing policy advice on issues the macro-economic framework statement, and matters related to Agriculture and Food macroeconomic overviews for the half-yearly review Management; (b) Examining/Appraising Cabinet/ CCEA/ statement, GDP projections, and more. The division also CoS/EFC and other policy notes on fixing Minimum coordinates the pre-budget consultations between the Support Prices (MSPs) for major crops/crop insurance Hon'ble Finance Minister and various stakeholders. policy/ other agricultural policies; (c) participates in the Furthermore, the Climate Change Finance Unit within Pre-Budget meetings with stakeholders in farm the Economic Division serves as the nodal point for all sector;(d) Briefs for the Parliamentary Standing climate change finance-related matters within the Committee on Agriculture-related issues; (e) Occasional Finance Ministry. review/ reports on specific issues as and when required 1.3 The division also brings out Monthly Economic (f) Analysis of issues related to Allied sectors like dairy Review (MER), which gives the review of recent progress sector, fisheries, forestry and food processing; (g) in macro-economic trends and the latest available data Preparation of the Chapter on 'Agriculture and Food on the key sectors of the economy. The division prepares, Management' for Annual Economic Survey; (h) Handling from time to time, briefs on the macro-economic trends, VIP/ Parliament/ Other references and Private Member price situation, performance of the agriculture and Bills related to agriculture and food management. industrial production, trends in tax collection, balance of Climate Change Finance Unit payments, and monetary situation. In addition, the division undertakes short-term forecasting of key economic 1.6 The Climate Change Finance Unit (CCFU) is the variables. As part of its advisory functions, the Economic nodal point for all climate change finance matters in the Division prepares analytical notes and background papers Finance Ministry. It represents the Ministry in climate on important policy issues and provides briefs for finance-related issues in all international and domestic meetings of the various committees and working groups fora. It represents the country in international negotiations set up by the Government. The Division works in close on climate finance under the UN Framework Convention cooperation with the RBI, the NITI Aayog, the MoSPI and on Climate Change (UNFCCC). The unit is the nodal body the economic and statistical wings of their Ministries. of the G20 Taskforce on Global Mobilization against Climate Change (TF-CLIMA) launched by Brazil's G20 1.4 The work of the Economic Division is organized presidency. It provides inputs on climate finance-related under the following 11 units: issues to other G20 working groups, such as the Energy  Agriculture and Food Management Unit Transition Working Group (ETWG), the Sustainable  Climate Change Finance Unit Finance Working Group (SFWG), the FrameworkAnnual Report 2024-2025 Working Group, etc. The Unit prepares briefs and position etc. (b) Publication of Quarterly Report on India's External papers for the Government of India's position on climate Debt for the two quarters ending September and change finance and international instruments being used December, through collection and compilation of data to address climate change. It provides guidance and from different stakeholders. The remaining two quarters' inputs to MOEFCC to feed into climate change reports are published by RBI. (c) Collection, compilation negotiations. It assesses the submissions on climate and provision of inputs on India's External Debt data on change finance from various national Governments that quarterly basis to World Bank for its centralized database are Parties to the UNFCCC. called, 'Quarterly External Debt Statistics (QEDS)', in compliance with IMF's Special Data Dissemination The Unit is responsible for the analytical works Standard (SDDS)requirements.(d) Dissemination of on climate change, sustainable development, renewable India's defence debt data on a quarterly basis to all energy-related issues, carbon market and any other relevant stakeholders.(e)Monitoring and analyzing the emerging issues in the area of climate change, as well developments in India's External debt and providing policy as drafting the chapter on climate and environment for inputs/ briefs/ comments, etc., relating to same. (f) the Economic Survey. It examines the proposals of the Analysis of recent trends and developments in India's Green Climate Fund (GCF), Global Environment Facility external debt and incorporate a section on the same in (GEF), and proposals of the MDBs on climate-related the External Sector Chapter published in the Economic projects. It analyses the domestic proposals relating to Survey. (g)Issues relating to foreign exchange reserves climate change finance and provides inputs relating to and exchange rate (h) Policy inputs for Hon'ble FM, MOS, climate change finance on ongoing domestic policies Secretary on: (i) Parliamentary debates and questions like the National Action Plan on Climate Change related to external debt (ii) Leading economic discussions (NAPCC). at bilateral and multilateral forums such as G-20, World External Sector Unit Bank, IMF, OECD, concerning India's external debt 1.7 Trade & Balance of Payments: Monitoring and sustainability. analyzing the developments in India's Trade and Balance Industry of Payments (BoP) and providing policy inputs/ briefs/ 1.9 The unit analyses the data related to the Index comments, etc., relating to same.(b)Analysis of recent of Industrial Production (IIP) and eight core industries. trends and developments in India's trade and BoP which The unit prepares comprehensive analytical notes on both culminates into the External Sector Chapter published in the IIP and eight core sectors, every month. The unit Economic Survey. (c)Preparation of a monthly trade note prepares a chapter on industry for the annual economic based on the press release of the Department of survey. It also contributes to policy formulation by Commerce for the perusal of the Secretary, DEA and examining and providing comments on various policy Chief Economic Adviser (CEA). (d) Matters relating to notes, expenditure finance committee notes, and cabinet Short-term Balance of Payments (STBoP) Monitoring notes concerning the industrial sector. The unit monitors Group. (e) Economic Activity tracker: Data maintenance the budget announcements monthly pertaining to the and updation of India's key trade and BoP indicators on Department of Fertilizers. The Unit participates in pre- a weekly/monthly/ quarterly/annual basis as per budget meetings and prepares briefs and notes for the availability of data. (f) Policy inputs for Hon'ble FM, MOS, department. It also provides inputs for parliamentary Secretary on: (i) Parliamentary debates and questions questions, VIP references and other references received related to trade and BoP (ii) Speeches related to important from different Ministries/ Departments. economic events (iii)Leading economic discussions at bilateral and multilateral forums such as G-20, World Macro unit Bank, IMF, OECD, concerning India's trade & BoP 1.10 The Macro unit, Economic Division is primarily position. responsible for: (a) Monitoring macroeconomic 1.8 External Debt Management Unit: Publication parameters and analysis of macroeconomic trends (b) of an Annual Status Report on India' External Debt, based Preparing the State of the Economy chapter for the on inputs from relevant stakeholders like RBI, Aid, Economic Survey (c) Preparing the macroeconomy- Accounts & Audit Division, Ministry of Defence, SEBI, related sections for the Monthly Economic Report 2Department of Economic Affairs I (d) Coordinating the country's participation in the Special Services Unit Data Dissemination Standard (SDDS) (e) Updating the 1.14 The unit is responsible for (a) Preparing the National Summary Data Page on the Ministry of Finance chapter on the Services Sector for the Economic Survey website (f) Annual updating of metadata in SDDS (g) (b) Monitoring the performance of the services sector (c) Parliament matters (h) Providing macroeconomic briefs Parliament Matters. and inputs on reports or events as per requirement (i) Coordinating the interactions of credit rating agencies with Social Sector the Ministry of Finance and (j) Provision of inputs for 1.15 The unit is responsible for: (a) Providing policy Budget Related matters, which includes: Inputs for the advice on issues related to social infrastructure, Macro Economic Framework Statement for the Union employment and human development; (b) Analysis of Budget, Macroeconomic overview for the statement on half-yearly review of the trends in receipts and expenditure labour issues, employment trends, health, education and in relation to the budget at the end of the first half and other topics concerning social sector; (c) Examining/ second half of the financial year and GDP projections Evaluating results of employment and unemployment before the preparation of the budget. surveys; (d) Examine/ Appraise Cabinet Notes/CoS/EFC/ SFC/PIB/ CEE notes on labour and skill development Money and Banking Unit including various issues related to health, education, 1.11 The unit is responsible for: (a) Monitoring of social empowerment, gender issues, rural development money market trends and developments in monetary etc. those received from the other Divisions in DEA; (e) policy; (b) Monitoring of banking policy and aggregate Participation/membership of Standing Committee on trends in credit flows; (c) Fortnightly analysis of the Labour Force Statistics; (f) Preparation of chapters on monetary parameters; (d) Monitoring yields on G-Sec/ Treasury Bills; (e) Monitoring behaviour of Call Money ‘Social Infrastructure’ and ‘Employment’ for Annual Rates and LAF operations; (f) Periodical updates on Economic Survey; (g) Pre-budget meetings with labour monetary policy and quarterly reviews of RBI. unions, civil society organizations, health, education, welfare and women's organizations/ experts etc.; (h) Prices Unit Handling VIP/ Parliament/Other references related to the 1.12 The unit is responsible for: (a) Inflation themes in social sector; (i) Occasional review/reports on monitoring based on the: (i) Wholesale Price Index specific issues as and when required; (j) Organizing (WPI), base: 2011-12=100 (ii) Consumer Price Index workshops/ inter-departmental meetings on specific (CPI)- Rural, Urban, Combined, base: 2012=100; (b) themes. Price/inflation-related issues:(i) related to domestic and international price behaviour; (ii) related to seasonal Coordination Unit price behaviour; (iii) related to Price Policy and inflation 1.16 The Unit is responsible for (a) Internal management; (c) Preparation of Monthly Inflation Report administration and coordination of economic division; (b) (d) Drafting chapter on prices for pre-budget Economic Survey. (e) Committees/ Working groups: (i) Organizing the Finance Minister's Pre-Budget meetings Participation in the various committees on price indices with various stakeholders; (c) Nomination of officers of (CPI, WPI and RESIDEX); (ii) Participation in macro the economic division for foreign deputation to OECD financial monitoring group constituted under DEA; (iii) meetings and other meetings and workshops; (d) Participation in the meeting of Committee of Secretaries Coordination with all units of economic division for on Review of prices of essential commodities. publishing Economic Survey and laying them before Public Finance Unit parliament; (e) Organizing Arun Jaitley Memorial Lecture, the annual international conference on thematic issues; 1.13 Public finance unit is responsible for monitoring (f) Coordination of parliament work, RTI matters, VIP of central fiscal parameters including deficit indicators, references, public grievances etc; (g) All administrative expenditure, revenue trends & public debt and provide a narative in Monthly Economic Review & Economic matters of economic division viz. transfer/posting of Survey. officers within the division. 3Annual Report 2024-2025 2. Budget Division 2.2.3 From 1st April, 2024 to 31st December, 2024, 19 Reports of the C&AG of India were laid before the 2.1 RESPONSIBILITIES Parliament and 31 proposals of entrustments / re- 2.1.1 Budget Division is responsible for the preparation entrustment of audit of various bodies to the C&AG of of and submission to the Parliament, the Annual Budget India were dealt by this Division during the said period. as well as Supplementary and Excess Demands for 2.2.4 Small Savings Schemes: Grants of the Central Government and of States/UTs under President's Rule. 2.2.4.1 Following Small Savings Schemes are currently administered by Budget Division in Department of 2.1.2 Budget Division is also responsible for Economic Affairs: administration of "Fiscal Responsibility and Budget Management Act, 2003". Statements of Fiscal Policy, Half-  Post Office Savings Account yearly Reviews including Mid-term Review and disclosure  National Savings Time Deposits (1,2,3 & 5 years) statements are presented in the Parliament in accordance with the requirements of the FRBM Act.  National Savings Recurring Deposits 2.1.3 The Division also deals with issues relating to  National Savings Monthly Income Scheme Public Debt, Market Loans of the Central Government  Senior Citizens Savings Scheme and guarantees given by the Government of India and  National Savings Certificate (VIII-Issue) the administration of the Contingency Fund of India. Processing of proposals from other Ministries/  Public Provident Fund Departments for re-appropriation of savings in a Grant  Kisan Vikas Patra where prior approval of the Ministry of Finance is required  Sukanya Samriddhi Account. is also handled by Budget Division. The Division also handles the issues pertaining to National Savings Institute  PM CARES for Children Scheme, 2021 (NSI), Small Savings Schemes and National Defence  Mahila Samman Savings Certificate, 2023 Fund. The work relating to Treasurer, Charitable 2.2.4.2 Small Savings Collections: Endowment is also assigned to the Budget Division. The provisional estimates for gross deposits 2.1.4 Budget Division also coordinates the Pre-Budget under various small savings schemes during FY 2024- Meetings for finalization of Revised Estimates for the 25 are `15,44,323.23 crore as against the deposit of current year and Budget Estimates for the ensuing year. `14,32,479.70 crore during 2023-24. An amount of Detailed work allocation within Budget Division is available `13,167.55 crore (provisional estimate) is to be invested, at https://dea.gov.in/allocation-business. as share of net small savings collections and amount 2.2 MAJOR ACHIEVEMENTS DURING 2024-25 received on redemption of securities to Kerala, Madhya 2.2.1 Regular Budget 2024-25 was delivered on 23rd Pradesh and UT of Delhi during FY 2024-25, as against July, 2024 in paperless form. During the Financial year the sum of `15080.23 crore invested to these States and 2024-25, the First Batch of Supplementary Demands for UT of Delhi during 2023-24. Grants 2024-25 was presented and passed in the 2.2.4.3 National Small Savings Fund: Parliament in December 2024. In order to account for all the monetary 2.2.2 Release of States' share of Central Taxes and transactions under small savings schemes of the Central Duties to State Governments as per approved Government under one umbrella, the "National Small recommendations of the Finance Commission is also Savings Fund" (NSSF) was set up in the Public Account handled by Budget Division. In this respect, total of of India w.e.f. 1st April, 1999. The net accretions under `11,29,494 crore was devolved to all State Governments the small savings schemes were being invested in the during the Financial Year 2023-24 as against `10,21,448 Special Securities of State Governments and U.T.s (with crore projected in BE 2023-24. Further, `9,01,150 crore legislature). However, based on the recommendation of was devolved to all State Governments till December, the Fourteenth Finance Commission, it has been decided 2024 during the Financial Year 2024-25 as against to advance NSSF loans only to the willing States w.e.f. `12,47,211 crore projected in BE 2024-25. 01.04.2016. Accordingly, only two States, namely, Kerala 4Department of Economic Affairs I and Madhya Pradesh and one UT with legislature namely, Schemes is decided in view of the recommendations of Delhi have opted for the NSSF loan. Shyamala Gopinath Committee and the Government's 2.2.4.4 Interest Rates on Small Savings Instruments: development/fiscal considerations. Interest rates on Small Savings Schemes are The rate of interest on various small savings decided/ notified by Government every quarter of the schemes for the FY 2024-25 is given below: Financial Year. The rate of interest on Small Savings Rate of Interest in FY 2024-25 (in %) Instrument Quarter I Quarter II Quarter III Quarter IV Savings Deposit 4.0 4.0 4.0 4.0 1 Year Time Deposit 6.9 6.9 6.9 6.9 2 Year Time Deposit 7.0 7.0 7.0 7.0 3 Year Time Deposit 7.1 7.1 7.1 7.1 5 Year Time Deposit 7.5 7.5 7.5 7.5 5 Year Recurring Deposit 6.7 6.7 6.7 6.7 5 Year SCSS 8.2 8.2 8.2 8.2 5 Year MIS 7.4 7.4 7.4 7.4 5 Year NSC 7.7 7.7 7.7 7.7 PPF 7.1 7.1 7.1 7.1 Sukanya Samriddhi Account 8.2 8.2 8.2 8.2 Kisan Vikas Patra 7.5 (will mature 7.5 (will mature in 7.5 (will mature 7.5 (will mature in 115 months) 115 months) in 115 months) in 115 months) 2.2.5 Public Debt Management: management strategy covering various risks, etc. The PDMC also publishes quarterly report on Public Debt and 2.2.5.1 Budget Division is responsible for implementation is also responsible for uploading the public debt related of the Government Market borrowing (including T-Bills) programme in coordination / consultation with the Reserve data on National Summary Data Page following Special Bank of India and the Public Debt Management Cell Data Dissemination Standard (SDDS) of International (PDMC). Monetary Fund (IMF). 2.2.5.2 PDMC, under Budget Division, plays an important 2.2.5.4 As announced in the Union Budget 2022-23, the role in public debt management through planning the GoI, as part of its overall market borrowings, issued borrowing of the Government of India (GoI), formulating Sovereign Green Bonds (SGrBs) for an aggregate debt management strategy, cash monitoring and amount of `16,000 crore and `20,000 crore in the year management, increased interaction with market 2022-23 and 2023-24, respectively, for mobilising participants, etc. resources for green infrastructure. The proceeds are 2.2.5.3 Towards ensuring the enhanced transparency in deployed in budget financed schemes / projects which public debt management operations, a Status Paper on help in reducing the carbon intensity of the economy. Government Debt for the year 2022-23 was released on During the FY 2024-25, `11,697 crore has been raised July 31, 2024. This report covers various facets of public through SGrBs so far and in the remaining period of the debt including overall debt position of the country, FY further `10,000 crore has been planned to raise assessment on aspects of debt sustainability, debt through SGrBs. 5Annual Report 2024-2025 2.2.5.5 Budget Division administers the two B) Disclosure statements presented with Budget Appropriations namely, Interest Payments and 2024-25 Repayment of Debt. Gross borrowing of the Central a) Tax Revenues raised but not realised Government during FY 2024-25 was budgeted at `14.01 b) Arrears of Non-Tax Revenues lakh crore (BE). c) Asset Register 2.2.5.6 The Government Debt is held predominantly C) Half yearly Statements on Review of the trends (approx. 95%) in Indian currency. Outstanding external in receipts and expenditure in relation to the debt is financed by multilateral and bilateral agencies at budget at the end of- concessional rates. Internal debt consists largely of marketable and non-marketable securities. A low rollover a) Second Half of the Financial Year 2023-24 risk is signified through debt maturing within the next 5 b) First Half of the Financial Year 2024-25 years. This accounted for about 26% of total outstanding 2.2.6 3 Fiscal indicator targets for RE 2023-24 and BE stock of G-Secs at end-Sep, 2024. Detailed analysis of 2024-25 are as below: existing debt and liabilities of the Government is brought (as % of GDP) out in the annual debt papers (available on https:// dea.gov.in/public-debt-management). Fiscal Indicators/ Year 2023-24 (RE) 2024-25(BE) 2.2.6 Fiscal Responsibility and Budget Fiscal Deficit 5.8 4.9 Management: Central Government Debt* 58.1 56.8 2.2.6.1 Administration of the Fiscal Responsibility and Note: Budget Management Act (FRBM), 2003 and the Rules i. GDP for FY 2023-24 is `295.36 Lakh crore issued by framed thereunder is the prime function of the FRBM M/o Statistics & Programme Implementation on Section. The FRBM Act, 2003 provides for the 31.05.2024. responsibility of the Central Government to ensure inter- generational equity in fiscal management and long-term ii. The GDP for BE 2024-25 has been projected at macro-economic stability by removing fiscal `326.37 lakh crore assuming 10.5% growth over the estimated GDP of `295.36 Lakh crore for 2023-24 impediments in the effective conduct of monetary policy (Provisional Estimates). and prudential debt management consistent with fiscal sustainability through limits on the Central Government iii. GDP is the Gross Domestic Product at current market borrowings, debt and deficits, greater transparency in price. fiscal operations of the Central Government and * Central Govt. debt includes external public debt valued conducting fiscal policy in a medium-term framework at current exchange rates, total outstanding liabilities and for matters connected therewith or incidental on Public Account including investment in Special thereto. Securities of States under NSSF and EBR liabilities etc. 2.2.6.2 During the period from April 1, 2024 to December 2.2.7 Budget Press 20, 2024 in compliance with the relevant provisions of 2.2.7.1 Budget Press is responsible for printing of all the FRBM Act and Rules framed thereunder, the following Budget Documents relating to the Union Budget including documents were prepared and laid before both Houses Detailed Demands for Grants, Supplementary Demands of Parliament: for Grants and Annual Report (English/Hindi) of the Ministry of Finance. A) Statements of fiscal policy presented with Budget 2024-25 2.2.7.2 Apart from the above, the Budget Press inter alia printed Highlights of Economic Survey 2023-24, First a) Medium-Term Fiscal Policy cum Fiscal Policy Batch of Supplementary Demands for Grants for the year Strategy Statement 2024-25, the Action Taken Report, Cabinet Notes (Hindi b) Macro-Economic Framework Statement & English) and several Discussion Papers. 6Department of Economic Affairs I 3. Financial Markets (FM) Division Centres Authority (IFSCA) and Securities Appellate Tribunal (SAT). The division also participates in financial 3.1 Introduction regulatory dialogues with USA, UK, Japan and EU. Financial Markets (FM) Division is primarily FM Division is also responsible for the responsible for policy issues related to the development administration of SEBI Act 1992, Foreign Exchange of the securities markets and matters incidental thereto. 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 commodity Regulation (SCRA) Act 1956, Depositories Act, 1996 and derivative markets. The division looks after the Section 20 of the Indian Trust Act, 1882 and related rules, administrative matters of the Securities and Exchange regulations and notifications thereunder. The organogram Board of India (SEBI), International Financial Services of FM Division is given below: 3.2 Sections of FM Division 2. Matters related to Corporate Governance and The various Sections and their work allocation Minimum Public Shareholding. are given below (each of the section handles the 3. Policy issues related to mergers, takeovers and parliament questions, grievances, RTIs, court cases acquisitions miscellaneous references etc. belonging to their work 4. Development of corporate bond market areas): 5. Financial literacy I. Primary Markets (PM) Section 1. Policy formulation on issues relating to initial and 6. Corporate governance of companies further issue of capital and related intermediaries engaged 7. Policy articulation on agenda items of SEBI's Board in the same such as: meetings (primary responsibility) (a) Mutual funds, 8. SEBI Act, related rules and regulations (b) Collective investment schemes, 9. Investment Guidelines for Non-Government Provident Funds, Superannuation Funds and (c) Alternative investment funds, Gratuity Funds (d) Domestic credit rating agencies, 10. Coordinating DEA-AJNIFM Research Programme (e) Merchant Banks etc. and other Research Programme 7Annual Report 2024-2025 II. Secondary Markets Section 3. Representing DEA in commodity derivatives market related matters in the inter-ministerial 1. Policy issues of Secondary Market and related committees on Essential Commodities price rise Market Infrastructure Institutions (MIIs), etc Intermediaries and Participants (Stock Exchanges, Clearing Corporations, Depositories their 4. Commodity derivatives trading related matters: participants, Trading Members, and Investment cases of manipulation /speculation etc Advisors etc.), their ownership and governance 5. Handling Policy matters of commodities markets issues etc. like delivery arrangements, matters related to 2. Social Stock Exchange/SME Exchange/New WDRA accredited by stock exchanges and Ministry Segments/ platforms for trading in securities /crowd of Consumer Affairs. funding platforms 6. Evaluation of relevant items in SEBI board 3. Taxes and Stamp Duties in Securities Market Agenda. 4. Skilling in securities market /capacity building 7. Policy Matters related to Electronic Gold Receipt initiatives (EGR) and Gold Spot Exchange. 5. Delisting of companies and associated policy 8. Commodity segment of exchanges of NSE, BSE concerns and matters related to NCDEX and MCX. 6. Creating a Single Demat Account for all financial 9. Skilling, capacity building and awareness initiatives assets related to commodity derivatives market 7. Database relating to Securities Markets 10. Monitoring the action taken by investigating and enforcement agencies and regulatory authorities 8. Monitoring of Stock Market Movements in the payment crisis at NSEL, sending reports on 9. Self-Regulatory Organizations NSEL matter to PMO, giving inputs to Vigilance Division on NSEL related Vigilance matters. 10. Cyber security related matters in context of Securities Market IV. External Markets (EM) Section 11. Regulation of distributors /distribution of financial 1. Administration of Foreign Exchange Management products in context of Sumit Bose Committee Act, 1999 recommendation 2. Processing all references, cases and proposals 12. Matters related to Investor Education and concerning Rules and Regulations framed under Protection the Foreign Exchange Management Act, 1999 13. Policy on Frozen Demat Accounts 3. Matters relating to establishment of Liaison office / Branch office/ Project Office in India by foreign 14. Ratification of UNIDROIT / Geneva Securities entities Convention 4. Matters relating to opening Non Resident Ordinary 15. Securities Contracts (Regulations) Act, 1956 and (NRO) and Non Resident Rupee (NRE) Accounts related Rules and Regulations by foreigners/ non residents 16. Depositories Act, 1996 and related Rules and 5. Matters relating to trade payments settlement Regulations mechanism with Iran III. Commodity Derivatives Section 6. Matters relating to foreign travel of Chief Ministers/ Ministers/MLAs/Administrators/Officers of States 1. Policy matters related to development of and Union Territories commodity derivatives market and other derivative products on goods/commodities. 7. Approval for purchase of immovable property in India by foreigners/ Non-Resident Indians 2. Issues related to Notifying commodities for trading in stock exchanges: Resumption/suspension of 8. Facilitating Annual Commonwealth Parliamentary futures trading in various notified commodities/ Association Conference related visits of Speakers Options Contract etc. and Members of Legislative Assemblies 8Department of Economic Affairs I V. External Commercial Borrowings (ECB) (i) Aircraft Leasing and Financing Section (ii) Bullion Trading 1. Policy issues related to External Commercial (iii) Fin Tech Borrowings, Foreign Currency Bonds and Trade (iv) Insurance/Re-Insurance Credits (v) Banking 2. Framework for issuance of Rupee denominated Bonds in off-shore market [Masala Bonds]. (vi) Fund Management 3. Policy Matters relating to Securities and Exchange (vii) Global-In-House Centres Board of India (Foreign Portfolio Investors) (viii) Others Regulations, 2014 5. Preparation of Cabinet Notes for signing of bilateral 4. Framework for Investment by Foreign Portfolio and multilateral MoUs by IFSCA for strengthening Investors in Government Securities and corporate mutual co-operation with overseas financial bonds regulators/authorities 5. Matters relating to Depository Receipts Scheme 6. Facilitating international outreach by IFSCA and (ADR/GDR) GIFT City 6. Matters relating to Bharat Depository Receipts/ 7. Enhancing inter regulatory coordination between Indian Depository Receipts (BhDR/IDR) SEBI, RBI, IRDAI, PFRDA to enable 7. Matters relating to International Settlement of Indian comprehensive regulations and new financial Debt Securities (through Euroclear and Clear products/services in IFSC stream) 8. Budgetary assistance for IFSCA and transfer of 8. References concerning Local Currency Settlement grants from central government for expenditure on Mechanisms salaries, allowances and other establishment expenses of the Authority 9. Policy Issues concerning Currency Derivatives markets in India (OTC and Exchange Traded) and 9. Supervising projects and schemes sanctioned to Interest Rate Futures. IFSCA including the IFSCA HQ Project, Sup-Tech Project and Fintech Incentive Scheme 10. Issues relating to Sukuk Bonds 10. Examination and furnishing of comments on all 11. Issues concerning Bilateral/Multilateral Currency Draft Cabinet Notes Swap Agreements 11. Firming up of agenda items related to development 12. Organizing road-shows and investor meets with of IFSC under various economic and financial foreign investors in India and abroad dialogues 13. BRICS and G-20 matters relating to Financial VII. Regulatory Establishment (RE) Section Markets 1. Carrying out Board level appointments of VI. International Financial Services Centres Securities and Exchange Board of India(SEBI), Authority (IFSCA) appointment of Presiding Officer, Members and 1. Administration of the IFSCA Act, 2019 and framing Registrar of Securities Appellate Tribunal (SAT) of Subordinate Legislation under the Act and administration of related Rules and Regulations 2. Policy formulation on issues related to IFSCA Act, 2019 and related rules and regulations 2. Constitution of the Financial Sector Regulatory Appointments Search Committee (FSRASC) 3. Policy articulation on agenda items of IFSC Authority meetings 3. Establishment matters of SEBI like audit, appointment of CVO etc. 4. Facilitating overall development of core and niche segment in the financial ecosystem of IFSC 4. Establishments matters of SAT like residential through inter departmental coordination on areas accommodation, grant of budget to SAT and related including- matters, Grant of vehicle to the officers in SAT etc. 9Annual Report 2024-2025 5. Strengthening of SAT - Creation of additional 5. Study/ Survey on reforms required in Investors' benches / creation of posts / creation of additional Grievance Redressal Mechanisms in context of office space for SAT / Implementation of e-Court Securities Markets in SAT etc. 6. Internal Charge of 5 states (Bihar, 6. Administration of the Securities Appellate Tribunal U.P.,Uttarakhand, Himachal Pradesh & Jharkhand) (Salaries, Allowances And Other Terms And X. Coordination Section Conditions Of Presiding Officer And Other 1. Internal Coordination within FM Division for Members) Rules, 2003 providing periodical inputs /reports to various Departments /Ministries, submission of material for 7. Bilateral and multi-lateral MoUs between SEBI and annual reports, Economic Survey etc. securities market regulators of foreign countries. 2. Meeting of Senior Management Group (SMG) 8. Remittances from SEBI to the Consolidated Fund taken by Secretary (EA) to evaluate pending VIP of India reference, PMO reference and Parliamentary 9. Foreign visits of the Chairman of SEBI; Hosting of matters. Management of e-Samiksha and portals meetings of foreign delegations - obtaining the in respect of FM Division related complaints, VIP/ necessary clearances PMO references, cabinet notes and court cases etc. VIII. International Cooperation (IC) Section 3. Monthly summary in respect of activities, major 1. Indo-US Financial Regulatory Dialogue achievement and important policy decisions taken 2. India-UK Financial Market Dialogue in DEA are sent to Cabinet Secretariat 3. India-UK Financial Partnership 4. Work management /allocation issues within FM Division 4. Regulatory aspects of India-Japan Financial Dialogue 5. Website management in respect of FM Division 5. Negotiations under Financial Services Track for 6. Internship matters within FM division Free Trade Agreements (FTAs) especially A. Indian Market Performance pertaining to capital markets and International i. During FY25 (till November), the Indian stock Financial Services Centre. market has achieved new record highs, consistently 6. Input facilitation for various bilateral outperforming its emerging market peers despite Macroeconomic Dialogues and international downside risks from geopolitical uncertainties and agreements election-driven market volatility. In May 2024, India's market capitalization surpassed the $5 trillion mark, 7. Financial Development Index (FDI) under Global making it the fourth largest equity market globally and Indices for Reform and Growth (GIRG) underscoring India's robust long-term growth potential. 8. Other international matters This growth, combined with active listing activity and SEBI's recent measures to temper excesses has fostered IX. Joint Parliamentary Committee (JPC) and sustainable market expansion. Investor Grievances (IG) Section ii. The performance of India's benchmark indices Nifty 1. Matters related to Section 20 of Indian Trust Act 50 and BSE Sensex surged by 8.1 per cent and 8.4 per 1882 cent during Apr-Nov 2024, respectively as against 28.6 2. Preparation of Progress Report on Action taken on per cent and 24.9 per cent during FY24. The Indian recommendations of Joint Parliamentary indices corrected about 6 to 7% during Oct-Nov 24 after Committee (JPC) on Stock Market Scams and reaching all-time high in September 2024. The corrections matters related thereto. were driven by combination of factors such as aggressive selling by FPIs due to excessive market valuation, weaker 3. Matters related to Nizam Trust than expected Q2 corporate earnings, geopolitical 4. Handling of Investors' Grievances (Electronic & tensions and elections in US. On an overall level, the all- Physical) related to FM Division/ transferring of India market capitalisation grew by 15 per cent during other representations to respective authority FY25 (Apr- Nov). 10Department of Economic Affairs I Table 1: Performance of Major Markets in the World Performance in FY Performance in 2023-24 FY 2024-25 Last Day of Last Day of Last Day of (% change as on (% change as on Index 2022-23 2023-24 2024-25 28.03.2024 over last 29.11.2024 over last (31.03.2023) (28.03.2024) (29.11.2024) closing of closing of FY 2022-23) FY 2023-24) Indian Markets BSE Sensex 58,992 73,651 79,803 24.9% 8.4% Nifty 50 17,360 22,327 24,131 28.6% 8.1% Emerging Markets FTSE/JSE, South Africa 76,100 74,536 84,510 -2.1% 13.4% TAIEX, Taiwan 15,868 20,147 22,263 27.0% 10.5% Shanghai Composite, China 3,273 3,011 3,326 -8.0% 10.5% Ibovespa, Brazil 1,01,882 1,28,106 1,25,668 25.7% -1.9% KOSPI, Korea 2,477 2,746 2,456 10.9% -10.6% Developed Markets Hang Seng, Hong Kong 20,400 16,541 19,424 -18.9% 17.4% Nasdaq, USA 12,222 16,379 19,218 34.0% 17.3% Dow Jones, USA 33,274 39,807 44,911 19.6% 12.8% Straits Times, Singapore 3,259 3,224 3,559 -1.1% 10.4% DAX, Germany 15,629 18,492 19,626 18.3% 6.1% FTSE 100, UK 7,632 7,953 8,287 4.2% 4.2% Nikkei, Japan 28,041 40,168 38,208 43.2% -4.9% CAC, France 7,322 8,206 7,235 12.1% -11.8% Domestic Institutional Investors moving beyond their The net inflow by DIIs was largely driven by countervailing role increasing domestic investor participation through the In the FY25 (Apr-Nov) so far, DIIs net inflow into mutual funds route. Over the past few years, domestic the equity markets has reached an all-time high of institutional Investors led by mutual funds have not only `3,78,740 crore recording growth of 80.8 per cent from played their role as a countervailing force to volatile FPI FY24 (of which mutual funds investment was 92.7 per flows but have also become the single largest investor in cent). domestic listed companies. 11Annual Report 2024-2025 Chart 1: DIIs counterbalancing FPI’s outflows (`crore) Source: NSDL, BSE, NSE B. Primary Market Oct) was `5,38,416 crore. While fund raised through a. Capital market, both debt and equity, have Hybrid instruments REITs and InvITs during FY25 (Apr- become increasingly important for India’s growth story. Oct) was `10,612 crore. During FY25 (Apr-Oct), total of `1,21,631 crore has been c. The assets under management (AUM) of mutual raised through 302 public-equity and rights issues. fund industry stood at `67.2 lakh crore as on the end of Qualified Institutions’ Placement(s) (QIPs) emerged as October 2024. preferred equity fundraising mechanism for the corporates, with total amount mobilisation of `80,339 d. In the current financial year so far, there has been crore during FY25. 42 Substantial Acquisition of Shares and Takeovers b. The total amount raised through public issue and involving `1,463 crore compared to 73 such takeovers private placement of corporate bonds during FY25 (Apr- during FY24 involving `10,252 crore. Table 2: Capital Raised from the Primary Market through Public and Rights Issues Total (Public + Category-wise (Equity) Issues-Type Financial Rights) Public# Rights Preferential Issue QIP Year No. of Amount No. of Amount No. of Amount No. of Amount No. of Amount issues (₹ crore) issues (₹ crore) issues (₹ crore) issues (₹ crore) issues (₹ crore) 2022-23 238 65,824 165 59,073 73 6,751 454 83,832 11 8,212 2023-24 340 83,093 273 67,982 67 15,110 689 45,155 61 68,972 2024-25 302 1,21,631 215 1,09,255 87 12,376 575 61,348 60 80,339 (Apr-Oct) # includes IPOs and FPOs 12Department of Economic Affairs I Table 3: Funds Mobilized through Issuance of Corporate Bonds in India No. of Public Amount Raised No. of Pvt. Amount Raised Total Amount Raised Financial Issues through Public Placement through Private through Public Issue and Year Issue (₹ Crore) Placement (₹ Crore) Pvt. Placement (₹ Crore) 2022-23 34 9,221 1,524 7,54,467 7,63,688 2023-24 45 19,167 1347 8,37,756 8,56,923 2024-25 25 5,526 976 5,32,890 5,38,416 (Apr-Oct) Table 4: Resource Mobilisation through Municipal Bonds Financial Year No. of municipal bond Issues Amount Raised (₹ Crore) 1 2021-22 100 2022-23 1 244 2023-24 3 500 Table 5: Resource Mobilization through REITs and InvITs Net asset value of Financial REITs InvITs#@ Total REITs/InvITs Year Amount (₹ crore) Amount (₹ crore) Amount (₹ crore) Amount (₹ lakh crore) 2022-23 0 6,360 6,360 2.48 2023-24 5,905 33,119 39,024 6.05* 2024-25 --- 1,228 9,384 10,612 (Apr-Oct) # InvITs includes both listed and unlisted InvITs @ includes funds raised through public issue, private placement, preferential issue, institutional placement, rights issue *Net asset value for FY 2023-24 is based on estimation and is provisional figure. Fund Mobilisation through Mutual Funds Income/ debt-oriented schemes amounting to `3,30,665 During FY25 (Apr-Oct), mutual funds had mobilised crore (42.8 % of net inflows), followed by inflows of `7,71,995 crore as compared to a net inflow of `2,87,602 `2,45,685 crore in growth/ equity-oriented schemes, crore in the corresponding period of last year. During the `97,822 crore in other schemes and `95,914 crore in period under review, highest inflows were observed in hybrid schemes. Tab le 6: Resource Mobilization by Mutual Funds (in `Crore) Financial Gross Mobilisation Redemption/Repurchase Net Inflow/ Outflow Assets Year at the End of Period Pvt. Public Total Pvt. Public Total Pvt. Public Total Sector Sector Sector Sector Sector Sector 2022-23 77,54,916 27,52,442 1,05,07,357 77,38,933 26,92,199 1,04,31,132 15,983 60,242 76,225 39,42,031 2023-24 88,41,565 26,06,650 1,14,48,215 85,32,667 25,60,847 1,10,93,513 3,08,898 45,803 3,54,701 53,40,195 2024-25 62,47,516 16,33,199 78,80,716 55,92,596 15,16,124 71,08,721 6,54,920 1,17,075 7,71,995 67,25,615 (Apr-Oct) 13Annual Report 2024-2025 Table 7: Scheme Category-wise Net Inflows/Outflows into/from Mutual Funds ( `crore) Period Income/Debt Growth/Equity Hybrid Solution Other Total Oriented Oriented Schemes Schemes Oriented Schemes Schemes Schemes 2022-23 -2,09,061 1,44,775 -18,813 1,836 1,57,489 76,225 2023-24 -34,588 1,81,362 1,44,954 2,284 60,689 3,54,701 2024-25 3,30,665 2,45,685 95,914 1,909 97,822 7,71,995 (Apr- Oct) Portfolio Managers increase in client base, cumulative AUM of the portfolio With rise in HNIs, there has been growing demand management services as at the end of Oct 2024 stood at for portfolio management services outside the traditional 36.2 lakh crore, up by 19.1 per cent over the previous mutual fund space. Propelled by market appreciation and year. Table 8: Growth in assets managed by PMS Period AUM (in ₹ Crore) Discretionary Non-Discretionary Co-Investment Advisory Total Oct-24 30,29,522 2,98,014 3,489 2,92,082 36,23,107 Sept-24 30,27,983 2,99,496 2,700 2,97,507 36,27,686 Oct-23 25,49,406 2,44,657 742 2,48,255 30,43,061 Source: SEBI; The above data is as per submissions made by 431 Nos. of PMS on the SI Portal of SEBI till Nov 30, 2024  Upfront collection of Option Premium from C. Secondary Markets: options buyers, i. To promote a robust and regulated derivatives  Removal of calendar spread treatment on the market with enhanced investor protection, revised Expiry Day, eligibility criteria have been introduced for the entry and exit of stocks in the derivatives segment on  Intraday monitoring of position limits, exchanges. This change aims to ensure that  Revised contract size for index derivatives, stocks in the derivatives market maintain liquidity and participation levels that support market stability  Rationalization of Weekly Index derivatives and development. The criteria for exit shall apply products, to only those stocks which have completed at least  Increase in tail risk coverage on the day of 6 months from the month of entry into the derivative options expiry segment. In addition, Product Success Framework (PSF), in line with the PSF for index derivatives, iii. In order to bring consistency and uniformity with has also been introduced in single stock futures respect to independent evaluation of performance and options. This framework will evaluate liquidity of MIIs by an external agency, the broad framework and participation levels in single stock derivatives with basic minimum criteria has been put in place. to ensure that the liquidity and participation To ensure consistency in the manner of witnessed in the derivative markets are supportive assessment and outcomes across similar MIIs, of market development, regulation, and investor compare performance of such MIIs and monitor protection. The stocks that do not satisfy the PSF trends over time, a rating framework has been would exit the derivative segment. developed which would be assigned after evaluation of the MIIs. ii. In order to review the existing regulatory measures for investor protection while ensuring the orderly iv. Existing processes related to charges levied by development and strengthening of equity MIIs on their members (i.e. stockbrokers, derivatives market, following measures were depository participants, clearing members), entail introduced in staggered manner: volume based slab-wise charge structure. It was 14Department of Economic Affairs I found in many cases that the aggregated charges ix. Keeping in view the growth of benchmark indices collected by the members from the end clients is in the previous decade and to further enhance the higher than the end of month charges paid to the participation of retail investors in the securities MII. Hence it was mandated that MII charges which market, the Basic Services Demat Account (BSDA) are to be recovered from the end client should be for Financial Inclusion and Ease of Investing facility True to Label and MIIs were directed to redesign was comprehensively reviewed. The BSDA facility the existing charge structure and associated now allows securities upto `10 lakh and No Annual processes. This will ensure that the fee structures Maintenance Charges (AMC) for BSDA holding are transparent and True to Label to reflect, the securities upto `4 lakh subject to a maximum of actual services provided. `100. v. Taking into account the changing market dynamics x. For the purpose of ease of compliance and investor of the equity derivatives segment, with a view to convenience, non-submission of 'choice of have a more comprehensive understanding of the nomination' shall not result into freezing of demat prevalent tail risk in the equity derivatives segment, accounts/ MF Folios/physical folios and withholding SEBI has specified additional hypothetical stress of dividends/interest etc. Further, the process of testing scenarios/ methodologies for determining providing nomination was streamlined and only the Minimum Required Corpus (MRC) of Core three fields have been mandated for providing SGF in the equity derivatives segment. nomination details. vi. To safeguard client assets and prevent the xi. Environment friendly measure introduced to potential misuse of securities by brokers, a provide emails as default mode of dispatch for mechanism of pay-out of securities directly to Consolidated Account Statement (CAS) by clients' demat account has been implemented depositories, mutual fund -registrar and transfer wherein securities from trade settlements will be agents and holding statement by depository directly credited to the client's demat account participants. rather than the broker's pool account. Under this xii. The proposal to mandate the Qualified Stock system, Clearing Corporations will handle the pay- Brokers (QSBs) to provide either the facility of out of securities, ensuring they are credited directly trading supported by blocked amount in the to the client's demat account following trade secondary market (cash segment) using UPI block execution. mechanism (ASBA-like facility for the secondary market) or the 3-in-1 Trading Account facility is vii. For prevention and detection of fraud or market under consideration at SEBI. The UPI block abuse, institutional mechanism changes have mechanism will offer enhanced safety of investors been implemented to cast responsibility on brokers viz. through hassle-free and immediate return of to put in place systems for detection and prevention funds and securities in case of default by trading of fraud or market abuse including setting up of member, adequate protection to the funds of the robust surveillance and control systems, ensuring investors, and the funds blocked from savings appropriate escalation and reporting mechanisms account will enable the investors to earn interest. (including to exchanges), and having a whistle blower policy in place. Stock Market Performance viii. To address the issue of liquidity for investors, Notwithstanding the intermittent corrections, Indian especially retail investors, and also to enhance markets showed consistent upward trend until September their investment in debt securities, a framework of 2024, scaling new all-time highs. Strong domestic providing a Liquidity Window facility by the issuers economic prospects, robust domestic institutional investor through use of put options exercisable on pre- inflows, FPI investment, anticipated policy pivots from specified dates/intervals was introduced. The major central banks etc. drove the uptrend. However, the issuers can offer this facility on an ISIN basis to uptrend moderated since October 2024, driven by eligible investors at their discretion for prospective economic stimulus measures in China, U.S. presidential issuances. election and the valuation concerns. 15Annual Report 2024-2025 Chart 2: Movement of Indian Benchmark Indices Source: Refinitiv Despite the recent corrections, the Indian benchmark highest returns were delivered by Hong Kong’s Hang index, Nifty 50, delivered a return of 8.1% during FY25 Seng, followed by USA’s Nasdaq and Singapore’s Straits (April to November) among selected major markets. The Times. Chart 3: Return of Major World Indices Valuations (P/E Ratio) compared to peer markets. However, this is lower than the long-term average, whereas current valuations of At the end of November 2024, the PE ratio other global benchmark indices are higher than their long- (trailing) of Nifty 50 stood at 22.2, which was higher term valuations. 16Department of Economic Affairs I Chart 4: Comparison of P/E Ratios of Major Indices with the Long Term Average Source: Bloomberg, NSE Retail Participation in the Capital Market Nov), which was same for the corresponding period last Individual investor’s share in the equity cash year. segment turnover was at 35.5 per cent in FY25 (Apr- Table 9: Share of Individual Investors in Equity Cash Segment Turnover (per cent) Year Share of Individual Investors (per cent) 2023-24* 35.5 2024-25* 35.5 *During April to November for the respective financial year Note: Individual investors includes individual domestic investors, NRIs, sole proprietorship firms and HUFs, Source: NSE, BSE The incremental addition of demat accounts have 1,820 lakhs at the end of November 2024, as compared been continuously on an increasing trend during FY25. to 1,514 lakhs at the end of March 2024. The number of demat accounts rose by 20.3 per cent to Table 10: Trends of Demat Accounts Total no. of Demat Accounts added during the Period Period Total No. of Demat Accounts (in lakh) (in lakh) 2022-23 1,144.6 247.8 2023-24 1,513.8 369.1 2024-25* 1,820.5 306.7 *Till November 30, 2024 Turnover Statistics except currency derivatives. Turnover of currency Driven by increased participation of investors and derivatives declined after RBI’s directive requiring buoyant market trend, the value traded increased across exchange traded currency derivatives to be backed by all segments in the exchanges during FY25 (Apr-Nov), underlying exposures. 17Annual Report 2024-2025 Table 11: Trends of Turnover (Monthly average in `lakh crore) Segment FY24 FY25* Variation from FY24 to FY25* Equity Cash segment 18 27 48% Equity Derivatives- Notional 7,330 10,050 37% Equity Derivatives- Premium 41 57 41% Currency Derivatives 31 1 -95% Commodity Derivatives 23 45 93% *Till end of November, 2024 Commodity derivatives monthly average turnover rose by 93% during FY25 (Apr-Nov) when compared to the monthly average for FY24, driven by increase in turnover in energy segment. Table 12: Exchange-wise Market Share in Notional Turnover of Commodity Derivatives (Monthly average in `crore) % variation of 2023- % variation of 2024-25* Exchange 2022-23 2023-24 2024-25* 24 over 2022-23 over 2023-24 MCX 12,31,714 23,04,623 44,14,952 87% 92% NCDEX 17,243 17,176 12,876 -0.4% -25.0% NSE 1,480 16,808 83,675 1036% 398% BSE 697 3 35 -100% 1070% All India 12,51,134 23,38,611 45,11,537 87% 93% *Till November 2024 Source: SEBI Bulletin D. Commodity Derivatives Market construction, and activities. This signifies a significant The Government of India, in an effort to expand evolution in India’s commodity derivatives market the commodity derivatives market, issued a notification regulations. on June 26, 2024, under the Securities Contracts (Regulation) Act, 1956 (SCRA, 1956) in consultation with The commodities eligible for derivatives trading the Securities and Exchange Board of India (SEBI) for are notified by DEA, MoF in consultation with SEBI. At expansion of the list of commodities eligible for derivatives present, major agricultural commodities trading on trading and ‘Option in Goods’ from 91 to 104, permitting derivatives platforms include Barley, Castor Seed, recognized stock exchanges to introduce standardized Coriander, Cotton, Guar Seed, etc. Major non-agri contracts for new goods like Apple, Cashew, and Freight. commodities traded on commodity derivatives platforms Alloys of base metals such as Aluminium and Zinc were in India are metals (Zinc, Aluminium, Copper, Gold, Silver) also included. The categorization was restructured from and energy commodities (Crude Oil, Natural Gas). The 12 to 18, incorporating new sectors like fruits and total turnover in the commodity derivatives segment is vegetables, dairy and poultry, forestry, chemicals, distributed across exchanges as follows: 18Department of Economic Affairs I Table 13: Market share of exchanges year wise Total 2024-25* % variation % variation Turnover# 2020-21 2021-22 2022-23 202324 of 2023-24 of 2024-25 (in ₹crore) over 2022-23 over 2023-24 All-India 9,222,927 1,00,27,900 1,50,13,608 2,80,63,326 3,07,61,813 86.92% 9.61 MCX 8,264,585 87,81,757 1,47,80,566 2,76,55,480 3,00,79,694 87.11% 8.76 NCDEX 318,814 4,57,186 2,06,921** 2,06,112 91,597 -0.39% -55.55 NSE 27839 19,744 17,755 2,01,699 5,90,241 1036.01% 192.63 BSE 610,023 7,69,075 8,365 36 281 -99.57% 680.55 * Data as on 31st October,2024, ** the downfall of turnover at NCDEX may be due to the suspension of futures trading of major agricultural commodities from August 2021 (Chana), October 2021 (Mustard seed) and December 2021 (Chana, mustard seed, paddy (non-basmati), wheat, soya bean & its derivatives, crude palm oil and moong). The suspension of those commodities mentioned here has been extended up to 20 December 2024. # includes notional values Source: SEBI Bulletin, November, 2024 E. External Market b. The Foreign Exchange Management (Non- i. In FY25 (Apr-Dec) so far, FPIs have been net debt Instruments) (Second Amendment) sellers in the equity market, with a total outflow of 10,446 Rules, 2024 notified vide Notification No. crore till December, 2024. Conversely, they were net 1361(E) dated 14th March, 2024 to enable buyers in the debt segment with a net inflow of 94,287 the issuance of partly paid units by crore till December, 2024. investment vehicles, including AIFs, to ii. Indian markets witnessed significant net FPI persons resident outside India. inflows into debt segments, primarily driven by the c. The Foreign Exchange Management (Non- inclusion of Indian sovereign bonds in JP Morgan’s GBI- debt Instruments) (Third Amendment) Rules, EM index, effective June 28, 2024. Furthermore, Indian 2024 notified vide Notification No. 1722(E) sovereign bonds are slated for inclusion in Bloomberg dated 16th April, 2024 with the aim to liberalize and FTSE Russell indices in January 2025 and foreign investment in the space industry, September 2025, respectively, potentially attracting more aligning with the evolving global landscape foreign investment. and India’s aspirations in space exploration iii. Following amendments to the Foreign Exchange and utilization. Management (Non–debt Instruments) Rules, 2019 have d. The Foreign Exchange Management (Non- been made with the aim to bolster investment debt Instruments) (Fourth Amendment) opportunities in India: Rules, 2024 notified vide Notification No. a. The Foreign Exchange Management 3492 (E) dated 16th August, 2024 to (Nondebt Instruments) Amendment Rules, streamline compliance processes and 2024 vide Notification No. S.O. 332(E) 24th facilitate easier Foreign Direct Investment January, 2024. This was done in pursuance and Overseas Investment. of the announcement on July 28, 2023 by e. The Government of India has notified the Union Minister for Finance and Corporate Foreign Exchange (Compounding Affairs Smt. Nirmala Sitharaman and to notify Proceedings) Rules 2024 in supersession the ‘Direct Listing of Equity Shares of of the Foreign Exchange (Compounding Companies Incorporated in India on Proceedings) Rules, 2000 with the aim to International Exchanges Scheme’. expedite and streamline the processing of 19Annual Report 2024-2025 compounding applications, introduction of clarify the process. These amendments digital payment options for application fees indicate commitment of the Government and compounding amounts, and a focus towards promoting ‘ease of investment’ for on simplification and rationalization of the investors and ‘ease of doing business’ for provisions to eliminate ambiguity and businesses. Table 14: FPI Net Investments - Financial Year ₹ Crores Financial Year Equity Debt Debt - Debt- Hybrid Total VRR FAR 0 2014-15 1,11,333 1,66,127 0 0 2,77,461 2015-16 -14,172 -4,004 0 0 0 -18,176 2016-17 55,703 -7,292 0 0 0 48,411 2017-18 25,635 1,19,036 0 0 11 1,44,682 2018-19 -88 -42,357 0 0 3,515 -38,930 0 2019-20 6,153 -48,710 7,331 7,698 -27,528 2020-21 2,74,032 -50,443 33,265 0 10,247 2,67,101 2021-22 -1,40,010 1,628 12,642 0 3,498 -1,22,242 2022-23 -37632 -8937 5814 0 -181 -40936 0 2023-24 208212 121059 -2972 12767 339066 2024-25* -10466 54955 10370 28962 4551 88549 *Upto 31st December, 2024 Source: NSDL Table 15: Monthly FPI Net Investments Monthly FPI Net Investments (Calendar Year - 2024) ₹ Crores Month Debt- Debt- Equity Debt Hybrid Total VRR FAR January -25744 19837 -710 24 -6593 February 1539 22419 862 6997 31817 March 35098 13602 2478 818 51996 April -8671 -10949 3267 94 -16260 May -25586 8761 4283 -369 -12911 June 26565 14955 -973 1211 41757 July 32365 22363 -6189 257 48796 August 7320 17960 -885 1098 25493 September 57724 1299 8592 22959 2455 93538 October -94017 -4406 100 674 1250 -96538 November -21612 1217 3034 -4287 -37 -21444 December 15446 3755 -859 9616 -1408 25938 Total 427 110813 13000 28962 12390 165769 Source: NSDL 20Department of Economic Affairs I Table 16: External Commercial Borrowing (net inflows) in India ( `crore) Financial 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25* Year Amount 29,399 4,248 12,888 610 9498 11,782 *Upto October 2024 F. GIFT IFSC & International Financial Services India (RBI), Securities and Exchange Board of India Centres Authority (IFSCA) (SEBI), Insurance Regulatory and Development Authority of India (IRDAI) & Pension Fund Regulatory and (i) The Union Budget announcement (2015-16) paved Development Authority (PFRDA), in so far as the way for operationalizing the maiden IFSC in GIFT development and regulation of financial products, financial City Multi-Service SEZ, Gujarat. Government of India implemented a major financial sector reform by institutions and financial services within the IFSCs in establishing and operationalizing India’s maiden concerned. International Financial Services Centre (IFSC) in GIFT (v) The maiden IFSC since inception has witnessed City, Gujarat. substantial growth across the entire spectrum of (ii) The vision of the Government is to develop GIFT financial services activities including Banking, Capital IFSC as a leading internationally recognized financial Markets, Insurance, Fund Management, Aircraft centre with trusted business regulations, competitive tax Leasing, etc. The IFSCA has introduced internationally structure and ease of doing business. The IFSC has aligned regulatory regime, which has enabled large been designated as a special international financial number of international and domestic financial services jurisdiction, which is treated as a non-resident zone under firms to set up presence in GIFT IFSC. With Foreign Exchange Management Regulations, thereby internationally aligned regulatory regime, competitive facilitating transactions in any freely convertible foreign tax structure and ease of doing business, GIFT IFSC currency. is fast emerging as a preferred jurisdiction for availing wide array of international financial Services. (iii) The Hon’ble Prime Minister of India during his July 2022 visit to GIFT IFSC articulated his vision for GIFT (vi) In this direction, over the last three years, IFSCA City and stated that “the vision of India’s future is has endeavored to develop a regulatory architecture associated with GIFT City, which is an important gateway for IFSCs, which is aligned to international best to connect India with global opportunities”. He further practices and also has ease of understanding for stated “that if one integrates with GIFT City, one will enhanced compliance. IFSCA has since its inception integrate with whole world”. come up with 30+ Regulations to regulate Banking, (iv) To further promote ease of doing business and Capital Markets, Insurance, Bullion, Fund Industry, provide for dedicated regulatory intervention, Government Global In House Centers, Foreign University/foreign of India through an Act of Parliament in 2019 set up the institutions etc. within IFSC. IFSCA being a unified International Financial Services Centres Authority Authority for IFSCs in India, has undertaken (IFSCA) as a unified regulator for development and consolidation of domestic regulations to a large extent regulation of financial markets in the IFSCs in India. From pertaining to Insurance, Fund Industry, Capital Markets 1st October 2020, IFSCA assumed powers of four etc., which is unique in the Indian regulatory domestic sectoral regulators namely Reserve Bank of architecture. 21Annual Report 2024-2025 (vii) Presently, GIFT IFSC has more than 600 + entities August, 2024. The MoU, exchanged registered across various business segments including subsequently between the Authorities, aims to Banks, Capital Markets, Insurance, FinTech, Aircraft strengthen bilateral relations, promote Leasing, Bullion Exchange, etc. The financial services knowledge sharing, and enhance the market is rapidly growing with healthy and growing development of financial centers. participation of International and domestic financial (e) In order to give impetus to development of institutions. pension landscape in IFSC, schemes operated (viii) Major traction in GIFT IFSC has taken place in the by pension funds in IFSC were notified as last one year. Some of the key notable achievements in financial product under IFSCA Act, 2019 to the last one year are as follows – cater to global clientele. (a) The Finance Act (No. 2), 2024 provided tax (f) Shipping Corporation of India (SCI) was regime for retail schemes and exchange- granted Certificate of Registration for traded funds regulated by the International undertaking Ship Leasing activities from GIFT Financial Services Centres Authority (IFSCA), IFSC. aligning them with the tax treatment available for Category III Alternative Investment Funds. (g) Similarly, Power Finance Corporation (PFC) has also been granted Certificate of (b) On June 27, 2024, the Securities and Registration to set up Finance Company in Exchange Board of India (SEBI) issued a IFSC. circular amending the SEBI (Foreign Portfolio Investors) Regulations, 2019. This (h) To supports India’s commitment to amendment permits Foreign Portfolio environmental sustainability and in alignment Investors (FPIs) based in International with the pillar of Green Growth, the trading and Financial Services Centres (IFSCs) in India, settlement of Sovereign Green Bonds (SGrBs) such as GIFT City, to have up to 100% has been permitted with a view to facilitate aggregate contribution from Non-Resident easier access for non-resident investors to Indians (NRIs), Overseas Citizens of India invest and trade in SGrBs through IFSC and (OCIs), and Resident Indian (RI) individuals to enhance global climate capital flows into (c) In July 2024, the Reserve Bank of India India. To further strengthen the framework and permitted Indian residents to remit funds to facilitate informed decision-making, improved GIFT-IFSC for all permissible purposes under transparency, and reduced ‘greenwashing’ LRS for: risks, IFSCA has also enabled Credit Rating  availing financial services or financial Agencies to undertake additional activities products in accordance with the relating to ESG Ratings and Data Products International Financial Services Centres Providers Authority Act, 2019 (“IFSCA Act”); and (i) To materialize the goal of Digital economy, the  conducting all current and capital Single Window IT System (SWIT) portal was account transactions in foreign launched by Hon’ble Prime Minister at a public jurisdictions (excluding IFSCs) via a function at Ahmedabad on September 16, Foreign Currency Account held in IFSC. 2024. This portal will provide a one-stop online (d) The Cabinet approved the signing of a solution, eliminating the need for multiple Memorandum of Understanding (MoU) permissions and excessive documentation, between the International Financial Services and facilitating inter-regulatory coordination Centres Authority (IFSCA) and the Labuan between RBI, SEBI, and other regulators and Financial Services Authority (FSA) on 16th promote ease of doing business. 22Department of Economic Affairs I Table 17: Business Development Numbers (GIFT IFSC) As on September 2024 S.No. Parameter Till Sept. Till Sept. Growth in last Six Months End 2020 End 2024 (April - Sept. 2024) 1. Number of IFSCA Registrations1 129 687 120 + Banking Sector 2. Total Number of Banks2 13 28 1 3. Foreign banks 1 12 1 4. Indian Banks 12 16 0 5. Total Banking Asset Size $ 14 Bn $ 70.92 Bn $ 10.52 Bn 6. Total Banking Transactions $ 53 Bn $ 975.80 Bn $ 180.8 Bn 7. Total OTC Derivative Transactions including NDF3 $ 65 Bn $ 982.12 Bn $ 186.12 Bn Capital Market Sector 8. Monthly turnover on IFSC Exchanges $ 21.7 Bn4 $ 102 Bn5 $23.06 Bn 9. Average Daily Turnover on GIFT Connect NA $ 4.8 Bn $ 1.1 Bn 10. Total Debt Listing on Exchanges $ 23 Bn $ 64.31 Bn $ 7.81 Bn 11. Green/ESG/Sustainable Bond listing $ 2.1 Bn $ 13.93 Bn $ 1.63 Bn Funds Industry 12. Fund Management Entities NA 1286 14 13. Total Funds/Schemes NA 173 53 14. Targeted Corpus of Funds NA $ 40.6 Bn $ 7.6 Bn Insurance Sector 15. Number of Insurance Firms & Brokers* 17 37 2 16. Re(insurance) Gross Premium booked by Insurance $ 45 Mn $ 388 Mn7 $ 28 Mn Offices in IFSC 17. Re(insurance) Premium transacted by Insurance $ 158 Mn $ 973 Mn $ 55 Mn Intermediaries Aircraft Leasing 18. Registered Aircraft Lessors NA 31 4 19. Total Aircrafts/Engines leased/Ground Support NA 159 1 Equipment leased Ship Leasing 20. Registered Ship Lessors NA 16 5 21. Total Ships leased NA 12 8 Finance Company (Core & Non-Core including ITFS) 22. Finance Company (Core and Non-Core) NA 15 7 23. ITFS NA 04 0 FinTech 24. Number of Fintech Approved NA 61 9 25. FinTechs approved under Incentive Scheme NA 12 2 26. Number of Hackathons Completed NA 13 2 Bullion Ecosystem 27. Qualified Suppliers NA 28 3 28. Qualified Jewelers NA 143 25 29. Quantity of Gold Traded on IIBX NA 43.56 tonnes 35.23 tonnes 30. Quantity of Silver traded on IIBX NA 1146 tonnes 237.2 tonnes Foreign Universities 31. Number of Foreign Universities NA 2 0 1 Excluding Qualified Jewellers 2 Excluding New Development Bank 3 NDF refers to Non-Deliverable Forwards 4 Exchange turnover for the month of September 2020 5 Exchange turnover for the month of September 2024 6 Excluding in-principle approvals 7 Insurance Data till June 2024 End 23Annual Report 2024-2025 G. Regulatory Establishment Tribunal vide gazette notifications dated 4th April, 2024. The post of Judicial Member in the i. Securities Appellate Tribunal (SAT) is tribunal was advertised vide vacancy circular established under Section 15K of the Securities dated 02.02.2024. Justice (Retd.) Shri Mayank and Exchange Board of India Act, 1992, to Kumar Jain, Former Judge, High Court of exercise the jurisdiction, powers and authority Allahabad, has been appointed as Judicial conferred on the Tribunal by or under the SEBI Member of SAT by the Central Government Act 1992, PFRDA Act 2013, Insurance Act 1938 vide gazette notification dated 3rd January, and any other law for the time being in force. 2025. ii. The Securities Appellate Tribunal consists of iii. SAT is also the designated Tribunal to hear a Presiding Officer, two Technical Members appeal cases against the orders passed by and a Judicial Member. The Central International Financial Services Centres Government appointed Justice (Retd.) Shri P. Authority (IFSCA) for matters related to S. Dinesh Kumar, Former Chief Justice, High securities, insurance, and pension under the Court of Karnataka as Presiding Officer and Acts mentioned above. As on 31.12.2024, 1121 Shri Dheeraj Bhatnagar, Retd. Principal Chief appeals are pending before SAT and its duration Commissioner of Income Tax, Delhi as wise breakup is as follows: - Technical Member of the Securities Appellate Table 18: Appeals Pending Before SAT Category Opening Balance Cases filed Total Cases Disposed Cases Pending Cases SEBI 739 736 1475 370 1105 IRDA 11 06 16 00 16 PFRDA 00 00 00 00 00 TOTAL 750 742 1491 370 1121 H. International Cooperation (IC) cooperation and private sector collaboration to increase bilateral trade and investment in financial services was The third meeting of India-UK Financial Markets also discussed. Dialogue was hosted by Department of Economic Affairs, Ministry of Finance in GIFT City, Gujarat on 12 I. Investor Grievances (IG) December 2024 in hybrid mode with the participation of The investors’ grievances related to share officials from Indian and UK Governments and financial market, stocks, mutual funds etc. are handled promptly regulators of both parties. Participants from both India and effectively. Out of 2,537 grievances received on the and UK touched upon reforms in respective financial CPGRAMS Portal, 2,308 grievances have been disposed services sectors. Opportunities for inter-regulatory of. 24Department of Economic Affairs I 4. Financial Stability & Cyber Security 4.2 FSDC Sub-Committee (FSDC-SC) Division 4.2.1 The FSDC is supported by a Sub-Committee (FSDC-SC), chaired by the Governor, RBI. Excluding the 4.1 Financial Stability and Development Council Finance Minister (the Chair of the FSDC) and the Minister 4.1.1 The Financial Stability and Development Council of State for Finance, all members of the FSDC are also (FSDC) was set up by the Government of India as the the members of the FSDC-SC. Additionally, all four apex level forum in December 2010 with a view to Deputy Governors (DGs) of RBI, and Secretary (FSDC), strengthening and institutionalising the mechanism for, are also the members of the FSDC-SC. Executive inter-alia, maintaining financial stability, enhancing inter- Director of RBI, who is in-charge-of Financial Stability, is regulatory coordination and promoting financial sector the Member Secretary, and the Financial Stability Unit development. The Chairperson of the FSDC is the (FSU) of RBI is the Secretariat for the FSDC-SC. The Finance Minister of India and its Members include Minister FSDC-SC has met thirty one (31) times so far. of State for Finance, the heads of the financial sector 4.2.2 During the year 2024-25, FSDC-SC held the 31st regulators and Secretaries of the relevant Ministries/ meeting on 5th September, 2024. The Sub-Committee Departments of the Government of India. reviewed major global and domestic macroeconomic and 4.1.2 The FSDC monitors macro-prudential financial developments and issues relating to inter- supervision of the economy and deliberates on contextual regulatory coordination in the Indian financial sector. issues covering financial stability, financial sector Members shared their assessments of potential risks to development, inter-regulatory coordination, financial financial stability and discussed various issues that may literacy, financial inclusion, coordinating India's have financial stability implications. The Sub-Committee international interfaces with financial sector bodies like also reviewed the activities of various technical groups the Financial Action Task Force (FATF), Financial Stability under its purview, and the functioning of State-level Board (FSB) and other Standard Setting bodies (SSBs). Coordination Committees (SLCCs) in States/Union The Financial Stability and Cyber Security (FS&CS) Territories (UTs). The FSDC-SC resolved to continue its Division in the Department of Economic Affairs provides focus on improving financial sector resilience through secretarial assistance to the FSDC. The Division-Head inter-regulatory coordination, while remaining watchful of in charge of Financial Stability & Cyber Security (FS&CS) emerging challenges to the economy and the financial Division, Department of Economic Affairs, Ministry of system, including those from global spillovers, cyber Finance also works as Secretary of the FSDC. hazards and climate change. 4.1.3 Till date, FSDC held 28 meetings with the latest 4.2.3 Early Warning Group (EWG) is one of the one on 21st February, 2024. In the 28th meeting, the FSDC, Working Groups under the FSDC-SC, which coordinates inter alia, deliberated on issues related to macro financial the response of Government / Regulators in the time of stability and India's preparedness to deal with them. The a crisis situation. Regular meetings of EWG are chaired ongoing inter-regulatory issues were also discussed to by various regulators (RBI, SEBI, IRDAI and PFRDA) with support GIFT International Financial Services Centre yearly rotation. For 2024-25, IRDAI is chairing the EWG (GIFT IFSC) in its strategic role to become one of the meetings. In 2024-25 (till December 2024), EWG held 4 world's premier international financial centres and perform meetings, numbering from 40th to 43rd. The 40th meeting its envisioned role of facilitating foreign capital and was held on 8th May, 41st meeting on 5th July, 42nd meeting financial services. The FSDC also discussed formulation on 4th October and 43rd meeting on 10th December of of strategy for implementing pending Union Budget 2024. EWG also held a special meeting on June 10th, 2024 to discuss exponential rise in domestic equity announcements and FSDC decisions on uniform KYC derivatives trading and its implications for financial norms, digitalisation of KYC process, kickstarting fund- stability. Under the regular EWG meetings discussion, raising by social enterprises through social stock inter-alia, included agendas on Review of Action Taken exchanges, monitoring unauthorised lending through Report (ATR), discussion on Financial System online apps and measures to curb their further spread. It Vulnerabilities Monitoring Template and major was noted that there is a need to monitor the financial developments since the last meeting, having a bearing sector risks, the financial conditions and market on the risk to the financial stability. developments on a continuous basis by the Government and the regulators so that appropriate and timely 4.3 Financial Stability Board (FSB) measures can be taken to mitigate any vulnerability and 4.3.1 The FSB is an international body established in strengthen financial stability. April, 2009 under the aegis of G20 by bringing together 25Annual Report 2024-2025 the national financial authorities, standard setting bodies namely, Standing Committee on Assessment of and international financial institutions. The FSB is Vulnerabilities (SCAV) and Standing Committee on responsible for undertaking vulnerabilities assessment, Supervisory and Regulatory Cooperation (SRC). DG, RBI policy development and coordination, implementation also represents India in the Steering Committee that monitoring, and also act as a compendium of standards provides operational guidance between Plenary meetings for financial sector regulation and reforms in members' to carry forward the directions of the FSB, promotes jurisdictions. coordination across the Standing Committees and coordinates and conducts reviews of the policy 4.3.2 India, as a member of the FSB, remains development work of the international standards setting committed to adoption of the priority and other areas of bodies. financial sector reforms and international standards in a phased manner, calibrated to local conditions wherever 4.3.5 During the year 2024-25, meetings of the FSB necessary. The Department of Economic Affairs (DEA) Plenary were held on March 27th 2024, 14th June, and 3- is the nodal point for India to coordinate with the FSB 4 December, 2024. FSB's Steering Committee meeting and India-specific information is regularly provided to the were held on 26th January, 2024, 17th April, 2024, and FSB in consultation with the financial sector regulators 23rd October, 2024. SCSI meetings were held on 21st (namely, RBI, SEBI, IRDAI and PFRDA) while responding March, 2024,15th May, 2024, 2-3rd September and 9th to various FSB questionnaires, surveys and reports. India October, 2024. Besides, two in person meetings of the also participates in the peer reviews, meetings and RCG Asia were held on 29-30th April, 2024 and 15-16th conference calls of the FSB and presents its views and October, 2024. All these meetings were attended by comments as a member. representatives of DEA at suitable levels. 4.3.3 The Plenary is the sole decision-making body of 4.3.6 G20 Brazilian Presidency, continued working on the FSB, the Steering Committee provides operational the financial sector issues priorities taken forward from guidance between Plenary meetings to carry forward the the earlier G20 Presidencies. Noteworthy progress has directions of the FSB and prepare the Plenary meetings taken place under priorities like Regulation of Crypto in order to allow the Plenary to efficiently fulfil its mandate. Assets, Cross Border Payments Roadmap, etc. There are four Standing Committees (SCs) with specific continuing from Indian Presidency. However, much work but complementary responsibilities in attaining FSB's needs to be done on areas like NBFI and Cyber security objectives. These Standing Committees are (a) on and their impact on financial stability. To support the work Assessment of Vulnerabilities (SCAV) - for identifying and under Brazilian Presidency, continuous engagement was assessing risks in the financial system, (b) on Supervisory maintained through various virtual meetings / conference and Regulatory Cooperation (SRC) - for supervisory policy calls of Plenary, SCSI, RCG, etc. and inputs on surveys analysis for regulatory response to vulnerability, (c) on and reports circulated by FSB were provided in Standards Implementation (SCSI) - for monitoring and consultation with the regulators from time to time. implementing the agreed FSB policy initiatives and 4.3.7 For 2024, under G20 Brazilian Presidency, it was international standards and (d) on Budget and Resources also proposed to work towards developing a reporting (SCBR) - for oversight of the FSB's resources and budget. framework for mitigating system-level vulnerabilities for 4.3.4 The Regional Consultative Group on Asia (RCG the financial sector from cyber risks, especially through Asia) is one of the 6 regional groups established by FSB greater convergence in cyber incident reporting and in 2011 to expand upon and formalise the FSB's outreach coordination of relevant definitions and terminologies. In activities beyond the membership of the G20 and to reflect New Delhi Leader's Declaration of G20, FSB's the global nature of the financial system through recommendations to achieve greater convergence in interaction with the non-members. Secretary, DEA cyber incident reporting, updates to the Cyber Lexicon represents India in the FSB Plenary and in the two out of and Concept Note for a Format for Incident Reporting the four FSB standing Committees, namely, the Standing Exchange (FIRE) were welcomed. Subsequently, FSB Committee on Standards Implementation (SCSI) and the has established a new working group (FIRE WG) Standing Committee on Budget and Resources (SCBR). comprising financial sector authorities under the FSB Secretary (DEA) also represents India in the Regional Standing Committee on Supervisory and Regulatory Consultative Group on Asia (RCG Asia). Chairperson, Cooperation (SRC). In 2024, the FSB developed FIRE in SEBI, and the Deputy Governor (DG), RBI are the other consultation with private sector participants. The process two members from India in the FSB Plenary as well as in included a Discovery Phase to identify commonalities in the RCG Asia. The DG (RBI) represents as a Member incident reporting needs and a Design Phase to develop from India in the other two Standing Committees of FSB, the components of FIRE. As per consultative report of 26Department of Economic Affairs I FSB, a Testing Phase is underway to validate the design financial sector Regulators and Ministries / Departments and robustness of FIRE using different incident types and concerned, facilitates and coordinates all financial sector scenarios. After the public consultation, the final version matters related to FSAP undertaken for India, including of FIRE is expected to be published by April 2025 under following up on the recommendations of FSAP. India the South African G20 Presidency, with a workshop underwent its first FSAP exercise in 2011-12 and the planned for 2027 to review experiences and determine second one in 2017. Subsequent to the FSAP exercise the need for revisions. in 2017, the IMF and the World Bank published their reports, including the Financial System Stability 4.3.8 Carrying forward from Indian Presidency, FSB is Assessment Report (FSSA) along with IMF Press also actively pursuing the G20's Roadmap for enhancing Release, Staff Supplement and Statement of India's cross-border payments under the current G20 South Executive Director in IMF and Financial Sector African presidency to achieve global targets for faster, Assessment (FSA) report, in December, 2017 on their cheaper, more transparent and inclusive cross-border respective websites, followed by a few Detailed payments by 2027. In this respect FSB delivered its Assessment Reports (DARs) and Technical Notes (TNs) progress report in October 2024. As regards the on selected topics. The third FSAP exercise for India for regulation of crypto assets, it was stated in the New Delhi the year 2023-24 started with the Scoping Mission Leaders' Declaration of G20 that they welcomed the IMF- meeting held during 11-14th December, 2023, followed FSB Synthesis Paper, including a Roadmap, that will by the FSAP Mission's first visit from 6th March 2024 to support a coordinated and comprehensive policy and 1st April 2024, where the IMF and the World Bank held regulatory framework for crypto assets and that the in-person meetings with financial sector regulators and Finance Ministers and Central Bank Governors will other relevant institutions and public authorities across discuss taking forward the Roadmap at their meeting in the country inter alia, on cross-cutting issues of cyber October 2023. Subsequently, the G20 membership security, financial safety net, crisis management, climate adopted the roadmap outlined in the Synthesis Paper as risk, role of state, etc. FSAP Mission team after concluding the G20 Roadmap on Crypto Assets in the meeting of the work shared the respective draft TNs on Cybersecurity the FMCBGs in October 2023 and asked the IMF and Risk Supervision and Oversight and Financial Safety Net FSB to provide regular and structured updates on the and Crisis Preparedness for stakeholders' comments. progress of implementation of the G20 Roadmap on The main and closing mission commenced from 3rd June, Crypto Assets. Accordingly, FSB submitted the Crypto 2024 where FSAP team held detailed discussions on the Roadmap Status Report to G20 in October 2024. Under subjects of MSME Finance, Capital Markets, NBFCs, etc. the South African Presidency 2025, the aim will be to in addition to the above-mentioned issues, with regulators, promote the implementation of those recommendations private sector organisations, standard setting bodies to reduce the scope for regulatory arbitrage, (SSBs) also. It was followed by in-person meetings with fragmentation and evasion. state and central government authorities including Debt 4.3.9 Other G20 priorities going forward in 2025, Recovery Tribunal (DRT), Employee Provident Fund include adoption of Artificial Intelligence (AI) across Organisation (EPFO), Invest India, etc. in Delhi from 11th financial sector including risks emanating from it, June 2024 onwards. Post the meetings, FSAP team addressing risks from NBFI leverage, address issues circulated Aide Memoire for stakeholder comments along related to non-bank data availability, use and quality, and with stream specific technical notes on Role of State, review of monitoring the implementation of the FSB Climate Risk and Opportunities, MSME finance, Capital recommendations. Markets, Credit Infrastructure, etc. As a follow up, FSAP 4.3.10 The FSB's work programme for 2025 addresses team will conclude the year-long exercise in line with IMF's challenges including digitalisation, climate change, Article-IV mission and publish FSA and FSSA reports by resolution reforms, vulnerabilities assessment, cross- February 2025. border payments and Implementation monitoring and 4.5 Computer Security Incident Response Team- evaluations. Finance Sector (CSIRT-Fin) 4.4 Financial Sector Assessment Programme 4.5.1 The Computer Security Incident Response (FSAP) Team-Finance Sector (CSIRT-Fin) has been set up on 4.4.1 FSAP is a quinquennial exercise jointly 15th May 2020 as a unit of the Indian Computer conducted by the IMF and the World Bank that involves Emergency Response Team (CERT-In) within the Ministry a comprehensive and in-depth analysis of a country's of Electronics and Information Technology (MeitY). financial sector to assess financial stability and financial CSIRT-Fin is responsible for coordinating and supporting sector development. The DEA, in close coordination with the response to cybersecurity events or incidents within 27Annual Report 2024-2025 the financial sector. CSIRT-Fin is the incident response 5. Financial Sector Reforms and force which focuses on mitigation processes, providing Legislation Division on-site awareness, expertise, and recovery oversight. 5.1.1 The Financial Sector Reforms and Legislation CERT-In provides the requisite leadership for the (FSRL) Division was created in 2013 to facilitate the operations of CSIRT-Fin under its umbrella. The strategic direction is provided through a strategic advisory implementation of Financial Sector Reforms committee co-chaired by Secretary (DEA) and Secretary recommended by the Financial Sector Legislative (MeitY) having representation from DEA, Department of Reforms Commission (FSLRC) or as deemed Financial Services, National Security Council Secretariat, necessary. CERT-IN, National Critical Information Infrastructure 5.1.2 The key reforms implemented by the Division Protection Centre and financial sector regulators. based on the FSLRC recommendations include: 4.6 Critical Information Infrastructure (CII) identification in Financial Sector i. Financial Sector Regulatory Appointment 4.6.1 The FS&CS Division of DEA collaborates Search Committee (FSRASC) has been created regularly with the National Critical Information for recommending names of suitable persons Infrastructure Protection Centre (NCIIPC), and financial for appointment to board level positions of sector regulators and Government Departments to financial sector regulatory bodies with the identify critical information infrastructure (CII) in the approval of the ACC on 24th November, 2015. financial sector, the incapacitation or destruction of which The FSRASC has been reconstituted on 9th shall have a debilitating impact on national security, June, 2017 to bring about uniformity in the economy, public health or safety. The FS&CS Division selection of board members of financial sector also coordinates the declaration of systemic important regulators. CIIs as "protected systems". In accordance with NCIIPC recommendations, the protected systems must apply a ii. The Forward Markets Commission (FMC) has higher level of security measures, hence, must comply been merged with the Securities and Exchange with Information Technology (Information Security Board of India (SEBI) with effect from 28th Practices and Procedures for Protected System) Rules, September, 2015 to achieve the convergence of 2018 to ensure that the CIIs are effectively secured. regulations of the securities market and the 4.6.2 During the year 2024-25, CIIs and its dependent commodity derivatives markets. FMC stands computer resources hosted by Bank of Maharashtra, abolished and the Forward Contracts IndusInd Bank, RBL Bank, Federal Bank and Indian (Regulation) Act, 1952 has been repealed. Overseas Bank have been declared as "Protected Systems". During the year 2023-24, CIIs and its iii. Towards strengthening the financial consumer dependent computer resources hosted by ICICI Bank, protection in India, 'Investor Charter' have been Central Bank of India, IDBI Bank, Yes Bank, Bank of India, issued by the financial regulators for the Indian Bank, Paytm Payments Bank Ltd., CAMS RTA, protection of all financial investors across all KFintech RTA and Central Registry of Securitization Asset financial products. Reconstruction and Security Interest of India (CERSAI) had been declared as "Protected Systems." During the iv. Implementation of governance-enhancing non- year 2022-23, CIIs hosted by NPCI, SBI, LIC of India, legislative recommendations of the FSLRC by HDFC Bank, ICICI Bank, Punjab National Bank, Bank of financial sector regulatory agencies. Baroda, Axis Bank, Canara Bank, Kotak Mahindra Bank v. Government set up a Public Debt Management and Union Bank of India were declared as "Protected Systems". In addition, the identification procedure has Cell (PDMC) on 4th October, 2016, as an been expedited, and a sizeable number of information independent and statutory debt management technology (IT) systems in the BFSI sector have been Agency. notified as CIIs. The process of CIIs identification in the vi. Government Institutionalised the statutory financial sector and further assessment for validation of Monetary Policy Framework, including setting "Protected Systems" after every two years is ongoing. Further, continuous coordination with relevant agencies of inflation targeting and formation of a and the financial sector regulators was done through Monetary Policy Committee to determine policy virtual meetings and onsite visits to strengthen the cyber interest rates, through amendment to the resilience of the financial sector. Reserve Bank of India Act, 1934. The Monetary 28Department of Economic Affairs I Policy Committee is entrusted with the task of Policy Committee (MPC) are to be appointed by fixing the benchmark policy rate (repo rate) the Central Government. Accordingly, the first required to contain inflation within the specified MPC was constituted on September 29, 2016 target level. A Committee-based approach for and re-constituted on October 05, 2020. The determining the Monetary Policy will add value present MPC was constituted and notified in the and transparency to monetary policy decisions. Gazette of India Extraordinary dated October 01, The meetings of the Monetary Policy 2024 as follows: Committee shall be held at least 4 times a year a. Governor of the Reserve Bank of India- and it shall publish its decisions after each such Chairperson, ex officio; meeting. b. Deputy Governor of the Reserve Bank of vii. Provisions of the RBI Act relating to the chapter India, in charge of Monetary Policy-Member, on Monetary Policy have been brought into force ex officio; through a Notification in the Gazette of India Extraordinary on June 27, 2016. The Rules c. One officer of the Reserve Bank of India to governing the Procedure for Selection of be nominated by the Central Board-Member, Members of Monetary Policy Committee and ex officio; Terms and Conditions of their Appointment and d. Prof. Ram Singh, Director, Delhi School of factors constituting failure to meet inflation target Economics, University of Delhi-Member; under the MPC Framework have also been notified in the Gazette of India, Extraordinary on e. Shri Saugata Bhattacharya, Economist- June 27, 2016. The Government, in consultation Member; and with the RBI, notified the inflation target in the f. Dr. Nagesh Kumar, Director and Chief Gazette of India Extraordinary dated August 5, Executive, Institute for Studies in Industrial 2016, for the first five-year period ending on the Development, New Delhi-Member. March 31, 2021. The Members of the Monetary Policy Committee viii. Keeping in mind the primacy of price stability referred to in sub-paragraphs (d) to (f) above shall in the wake of supporting macroeconomic hold office for a period of four years or until further policies to boost the economic recovery from orders, whichever is earlier. COVID-19 induced slowdown, and to further strengthen credibility of monetary policy in 5.1.3 The Bilateral Netting of Qualified Financial guiding the inflation expectations in the Contracts Act, 2020: This Act provides a legal basis for economy, the Government, after consultation measuring credit exposure on net basis for recognized with the RBI, has decided to continue with the financial contracts, specifically for OTC contracts. existing inflation target for the next five-year Consequently, there is a reduced credit exposure and period starting from April 1, 2021 to March 31, decreased need for regulatory capital and margins for 2026, as under: financial institutions entering into these contracts. Accordingly, RBI, IFSCA and SEBI have issued Inflation Target : 4 per cent. notifications for Qualified Financial Contracts (QFCs) and Qualified Financial Market Participants (QFMPs) under Upper tolerance level : 6 per cent. the Section 4 of the Act, as under: Lower tolerance level : 2 per cent. (a) Notification No. FMRD.DIRD.2/14.03.043/2020- The Inflation target has been notified by the 21 dated 9th March, 2021 issued by RBI. Government in the Gazette of India, (b) Circular dated 30th March, 2021 issued by RBI. Extraordinary dated March 31, 2021. (c) Notification No. IFSCA/2020-21/GN/008 dated ix. As per the provision of section 45ZB of the RBI 2nd February, 2021 issued by IFSCA. Act, 1934, out of the six Members of Monetary Policy Committee, three Members are from the (d) Notification No. SEBI/LAD-NRO/GN/2021/24 RBI and the other three Members of Monetary dated 12th May, 2021 issued by SEBI. 29Annual Report 2024-2025 6. Infrastructure Policy & Planning (IPP) aspects of infrastructure related topics. The working group Division is co-chaired by Australia and Brazil. Infrastructure Policy & Planning (IPP) Division is The Finance Unit collaborated with the G20 headed by Shri Solomon Arokiaraj, Joint Secretary. The Brazilian Presidency in the Infrastructure Working Group Division has the following Units: (IWG) to advance the following flagship priorities: Finance Unit (FU) 1. Financing climate-resilient infrastructure; Policy & Planning Unit (PPU) 2. Linking infrastructure and poverty reduction; Capacity Building Unit (CBU) 3. Mitigating exchange rate risks; and 4. Building cross-border infrastructure Each Unit is headed by Director/Deputy Secretary/Joint Director and assisted by Deputy Director/ The IWG arrived at consensus and endorsed the Assistant Director etc. deliverables pertaining to these priorities. 1. Finance Unit (FU) 1.2.2 Real Estate Investment Trusts (REITs)/ Infrastructure Investment Trust (InvITs) 1.1 Major Functions: Finance Unit deals with financing requirements REITs/ InvITs are trust-based structures that of infrastructure including conceiving new initiatives maximize returns through efficient tax pass-through and related to infrastructure financing and promotion of improved governance structures. Guidelines/Regulations investment in infrastructure sectors. The Unit deals with: for InvITs and REITs were notified by SEBI on 26 September, 2014. SEBI regulations permit InvITs/REITs  Financial Sector Reforms for long-term to have a single tier structure comprising the Trust and availability of financing from Domestic sources Special Purpose Vehicle (SPV) or a two-tier structure & Foreign capital, Development Finance comprising the Trust, Holdco (Holding Company) and Institutions and Financial Markets. SPV. Presently, there are 26 registered InvIT's with SEBI.  Infrastructure Financing from Fiscal resources, InvITs have raised cumulative funds of about PSE's IEBR and Private sector `1,20,676.79 crores till date either through public issue,  Matters related to infrastructure financing, private placement, or rights issue. Similarly, total 6 REITs including development of Infrastructure are registered with SEBI. REITs have raised cumulative Instruments and promotion of investments in funds of about `20,067.89 crores1 in the commercial infrastructure sectors. real estate segment through public issue.  Matters relating to Infrastructure Debt Funds 1.2.3 Infrastructure Debt Funds (IDFs) (IDFs), Real Estate Investment Trusts (REITs)/ IDFs were created essentially to act as vehicles Infrastructure Investment Trust (InvITs), Tax Free for refinancing existing debt of infrastructure companies, Bonds, Municipal Bonds, Sovereign Green thereby creating fresh headroom for banks to lend to fresh Bonds and other instruments meant for infrastructure projects. IDFs were expected to channelize infrastructure financing. long term funds from insurance and pension funds,  Matters relating to Credit Enhancement of sovereign wealth funds etc to supplement lending for Infrastructure Projects and New Credit Rating infrastructure projects by commercial banks which are System for Infrastructure. increasingly being constrained by their asset-liability  All International engagement on infrastructure mismatch and exposure limits. financing (other than PPPs). IDFs are set up by sponsoring entities either as  Matters relating to issues of Municipal Bonds by NBFCs - which are regulated by the RBI and as Mutual Urban Local Bodies (ULBs) for PPP and Non- Funds which are regulated by SEBI. As on date, three PPP Projects. IDFs under NBFC route are in operation.  Matters relating to Infrastructure Working Group 1.2.4 Sovereign Green Bonds Framework (IWG) of G-20. The Government of India has taken a number of  Matters relating to meetings of Board of Directors measures to combat climate change, along with growth of IIFCL, AIAHL, HUDCO as JS (IPP) is and development aspirations, to create a climate-resilient Government nominee Director and inclusive society. The Union Budget 2022-23 announced that the Sovereign Green Bonds will be issued 1.2 Major Policy Initiatives/ Achievements: for mobilizing resources for green infrastructure. The 1.2.1 G20 Infrastructure Working Group (G20-IWG) proceeds from the issue were to be deployed in public sector projects that help reduce the intensity of the Infrastructure Working Group (IWG) is a working economy's emissions. group under the G20 Finance Track that drives G20's infrastructure agenda. The IWG deliberates on various 1SEBI Website 30Department of Economic Affairs I In FY 2022-23 and FY 2023-24, the Government 2.2 Major Policy Initiatives/ Achievement: of India raised `16,000 crores and `20,000 crores, 2.2.1 Harmonized Master List of Infrastructure Sub- respectively, through the issuance of Sovereign Green sectors Bonds (SGrBs). Further, `1,697.398 crore has already As announced in Budget Speech 2023-24, an been raised through SGrBs for FY 2024-25 (as on 24th Expert Committee on Infrastructure Classification and January, 2025). The proceeds from these bonds are Financing Framework was constituted to undertake a allocated under the eligible green schemes/projects of comprehensive assessment of the characteristics/ the various Ministries/Departments, which help in parameters defining infrastructure and the financing reducing the economy's carbon intensity, as per the framework. The Committee has completed extensive Framework of Sovereign Green Bonds. consultations with the stakeholders and is finalising the 1.2.5 Sovereign Green Bonds Allocation Report report. Issued under Green Finance Working 2.2.2 Accelerating capital expenditure by Committee’s Supervision, 1st Allocation report Infrastructure Ministries corresponding to FY 2022-23 was brought out in 2024, As part of Viksit Bharat 2047, the Centre has and provided information on the status of funded projects, stressed upon the importance of increasing capital amounts allocated and any remaing unallocated proceeds. expenditure to crowd-in private investments and enable 2. Policy & Planning Unit (PPU) extraordinary increase in the economic growth. 2.1 Major Functions: In Revised Estimates (RE) 2024-25, the Capital  Infrastructure Investment Policy Expenditure is estimated to be `10,18,429 crore (3.1 percent of GDP) while Grants in Aid for creation of Capital  Institutional Mechanism on the Harmonized assets is estimated to be `2,99,891 crore (1.2 percent of Master List of Infrastructure Sub-sectors GDP), bringing Government’s Effective Capital  Sectoral charge of Ministries/Departments: Expenditure to `13,18,320 crore (4.3 percent of GDP)  M/o Road Transport & Highways, underscoring its commitment to infrastructure  M/o Ports, Shipping & Waterways, development. This substantial investment in large-scale public infrastructure projects aims to stimulate economic  M/o Civil Aviation, growth, generate employment, and enhance long-term  M/o Railways, productivity through its significant multiplier effects. By  M/o Housing and Urban Affairs, addressing critical gaps in infrastructure and creating opportunities for private sector participation, the  Dept. Of Telecommunications, and government's focused approach is set to drive  Dept. Of Posts. comprehensive and sustainable economic progress.  Analysing non-PPP investment proposals 2.2.3 Infrastructure Investment Proposals concerning A total of 26 CCEA/Cabinet/GoM Notes, 12 PIB/  Road Transport & Highways, EFC/DIB Memorandum and 39 SFC Memorandum,  Ports, Shipping, Inland Water Transport, received from line Ministries/Departments i.e. MoRTH,  Railways, MoHUA, M/o Shipping, M/o Railways, DoT, MoCA and Dept. of Posts have been examined. All these Investment  Telecommunications, Proposals were related to a number of infrastructural  Civil Aviation & projects, implementation of which would play an important  Urban Development sectors role in improvement in the infrastructure and would automatically bring socio-economic growth in the region  Institutions: where the project would be implemented.  National Industrial Corridor Development Corporation (NICDC) Limited (erstwhile Delhi 2.2.4 National Infrastructure Pipeline (NIP) Mumbai Industrial Corridor Development The National Infrastructure Pipeline (NIP) aims Corporation (DMICDC) Limited), to enhance project preparation and attract infrastructure  National Industrial Corridor Development and investment. All projects costing over `100 crores during Implementation Trust (NICDIT) FY 2019-25, regardless of their stage, are included in the NIP. The IIG/NIP and PMG portals were Integrated  National Highways Authority of India (NHAI), Project Monitoring Portal (IPMP), aiming to reduce data  Digital Communications Commission entry efforts with a Common Uploand Foan (CUF). In (erstwhile Telecom Commission), the next phase, the OCMS portal of MoSPI is being  Monitoring of NIP Implementation by 22 Union integrated with IPMP, and the CUF has been updated to Ministries/Departments meet MoSPI’s requirements. 31Annual Report 2024-2025 3. Capacity Building Unit (CBU) 7. Investment Division Investment Division comprises of five different 3.1 Major Functions: sections, viz. Foreign Direct Investment & Overseas Capacity Building Unit (CBU) is entrusted with Direct Investment Policy (FDI & ODI) Section, the work related to Capacity Building in Central Ministries/ International Investment Treaties and Framework (IITF) State Governments and other Agencies through trainings/ Section, Foreign Trade & Services (FT) Section, Domestic workshops/seminars for project preparation, design and Investment (DI) Section and Digital Economy (DE) Section. The major functions of the Investment Division structuring, project appraisal, project financing, pre- are as under: project activities, procurement, implementation planning (i) To provide policy support on Foreign/ Domestic and management etc. lnvestment policies including new policy initiatives Considering the need for a larger programmatic in Foreign Direct lnvestment/ Domestic approach to improve capacity it is desirable to provide lnvestment Policy besides FDI/Dl policy training/workshop for officials executing projects and clarifications & related matters. drafting concessions/contracts etc. in order to have (ii) Foreign Exchange aspect related to Gold including Gold Monetisation Scheme, Indian Gold rigorous understanding of the frameworks, principles, Coins etc. regulations guiding our Infrastructure ecosystem. Such (iii) To coordinate with Ministry of Steel, Ministry of a programmatic training design is required to not only Micro, Small & Medium Enterprises (MSME), enhance the appraisal of capacity of the officials working Ministry of Textiles, Ministry of Electronic and at the ground level but also support in better Information Technology, Department of Chemical conceptualization and structuring of projects. This and Petro Chemicals, Department of Investment becomes much more important for Public Private and Public Asset Management (DIPAM), Partnership (PPP) projects where expertise is required Department for Promotion of Industry & Internal in areas such as PPP Structuring, Project Appraisal and Trade (DPllT), Department of Public Enterprises Approval Process, Value for money analysis, cost benefit (DPE), Department of Commerce and Ministry analysis, Project Selection approaches, Data analysis and of Heavy Industry on economic issues and also offering them comments/suggestions on various Legal bidding clauses etc. matters as per need of the Indian economy. This The capacity building programmes are also Division has the external territorial charge of instrumental in stirring necessary dialogue between Central and South American Nations. Ministries and State Governments to learn from pitfalls (iv) To negotiate and conclude Bilateral lnvestment and success of each other's project experiences. Treaties (BlTs) and lnvestment Chapter of FTAs/ CECA/ CEPA with other countries on the basis 3.2 Major Policy Initiatives/ Achievement: of the revised Model Bilateral lnvestment Treaty This financial year (FY 2024-25) as on 30th (BlT) Text which was approved by the Cabinet November 2024, 5 offline training programs have been on 16th December, 2015 and to also handle the conducted by CBU, DEA in association with AJNIFM, Investor State Dispute Settlement (ISDS) notices/ Faridabad. A total of 168 officers from central ministries, cases arising out from BITs/FTAs signed with foreign countries as a nodal Department in GOI. CPSEs, state governments, and union territories from across the country have participated in these trainings. (v) Matter related to equity investments from both domestic and international sources for CBU, DEA has launched a Learning infrastructure development in commercially Management System (LMS) for hosting e-learning viable projects, both greenfield and brownfield, courses. Since December 2023, an e-course on "Public- including stalled projects through National Private Partnership (PPP) Beginner's" has been launched lnvestment and lnfrastructure Fund, works on both LMS and iGoT Karmyogi portals. As of 30th relating to SWAMIH Fund-I. November 2024, 2,572 users have registered for this e- (vi) Matter relating to Digital Economy including course. FinTech, identifying policy interventions, digital infrastructure gaps and International For the remainder of the financial year, a total collaborations in Fintech. of 7 offline training programs have been scheduled to A) Foreign Direct Investment & Overseas Direct be organized in association with AJNIFM, Faridabad, Investment Policy (FDI & ODI) Section with the objective of training 245 officers across these The function of this section is to provide policy programs. support on foreign investment policies including new 32Department of Economic Affairs I policy initiatives in Foreign Direct Investment and FDI B) Domestic Investment (DI) Section policy clarifications & related matters along with The Domestic Investment (DI) Section plays a processing of FDI proposal(s) received in D/o Economic crucial role in channeling investments towards sectors Affairs. This section co-ordinates with DPIIT, D/o of national importance for India, especially infrastructure Revenue, RBI and SEBI on foreign investment issues and middle-income housing. It manages two funds- the and also offers them comments/suggestions on any National Investment and Infrastructure Fund (NIIF) and amendment in FDI policy. It also suggests measures for the SWAMIH Fund. The Section processes requests from improving investment environment in India with respect fund managers to release funds. to FDI policy. This section also publishes Overseas Direct Investment outflows data across sectors and countries NIIF Funds on DEA's website on monthly basis. National Investment and Infrastructure Fund Limited ('NIIF Ltd.') presently manages 3 Funds registered DEA is entrusted with the approval/examination as Category II Alternative Investment Funds under the of FDI proposals (as per the FDI Policy, 2020) for: (i) Securities and Exchange Board of India (AIF) "Financial services which are not regulated by any Regulations, 2012. Financial Sector Regulator or where only part of the financial services activity is regulated or where there is (a) National Investment and Infrastructure doubt regarding the regulatory oversight"; and (ii) Fund ('NIIF Master Fund') Applications for foreign investment into a Core Investment This fund invests primarily in assets in core Company or an Indian company engaged only in the infrastructure sectors such as roads, ports, airports, activity of investing in the capital of other Indian company power etc. The investments are largely in businesses / companies. often operating in regulated environments or under To promote Foreign Direct Investment, the concession or long-term agreements. Investors include Government has put in place an investor-friendly policy the Government of India, Abu Dhabi Investment Authority, which is transparent, predictable and easily Ontario Teachers, Australian Super, Canada Pension Plan comprehensible. Except for a small negative list, most Investment Board, Temasek, PSP Investments, United sectors have been made open for 100% FDI under the States Development Finance Corporation, and domestic Automatic route. FDI under the automatic route does not financial institutions among others. require prior approval either by the Government of India The Portfolio is as follows: or RBI. Investors are only required to notify and file (in ` Crores) documents with the concerned Regional Offices of RBI. Under the Government approval route, applications are Particulars Amount as on 31.12.2024 filed in the Foreign Investment Facilitation Portal (FIFP), Total capital commitment 15,998 the new online single point interface of the Government of India for investors to facilitate Foreign Direct Investment Capital drawn down 11,828 and approved by the respective subject matter Ministries. Portfolio investments committed 14,599 Space sector has been liberalized for foreign direct (b) NIIF Fund of Funds-I ("NIIF FOF") investment in prescribed sub-sectors/activities in 2024. This fund invests in third-party managed funds Overseas Investment Rules and Regulations Notified: with sectors of focus which among others includes green The Government of India in consultation with the infrastructure, mid-income/affordable housing, Reserve Bank undertook a comprehensive exercise to infrastructure services, social infrastructure, urban simplify these Overseas Investment Rules & Overseas infrastructure, industrials and telecommunications. The Investment Regulations. Final Foreign Exchange fund follows a diversified strategy across sectors, Management (Overseas Investment) Rules and Foreign products and investment styles. Anchored by the GOI, it Exchange Management (Overseas Investment) has received commitments from multilateral institutions Regulations, 2022 had been notified. The copy of the including Asian Infrastructure Investment Bank ('AIIB'), notification was laid on table of Lok Sabha and Rajya Asian Development Bank ('ADB') and New Development Sabha in Winter Session of Parliament in December 2022. The revised regulatory framework for overseas Bank ('NDB'). investment provides for simplification of the existing The Portfolio is as follows: framework for overseas investment and has been aligned (in ` Crores) with the current business and economic dynamics. Clarity on Overseas Direct Investment and Overseas Portfolio Particulars Amount as on 31.12.2024 Investment has been brought in and various overseas Total capital commitment 4,281 investment related transactions that were earlier under Capital drawn down 3,507 approval route are now under automatic route, significantly enhancing "Ease of Doing Business". Portfolio investments committed 4,070 33Annual Report 2024-2025 (c) India Japan Fund ('IJF') dedicated for Affordable/ Mid-Income Housing, RERA NIIF launched India-Japan Fund (IJF) of `4,900 carpet area of the units is less than 200 sqm and houses crore (~USD 600 millions) backed by GOI and the Japan are priced below `2.0 crore in Mumbai Metropolitan Bank of International Cooperation (JBIC) in August 2023. Region, below `1.5 crore in National Capital Region, The Fund will focus on investments in India's Chennai, Kolkata, Pune, Hyderabad, Bangalore and environmental sector, including renewable energy, e- Ahmedabad and below `1.0 crore in Rest of India. The mobility businesses, and circular economy sectors such projects also have to be net-worth positive and at least as waste management and waste-water management. 30% of the project costs has to be completed. The Fund will also invest in opportunities to foster Details of commitments made by each of the collaboration between Indian and Japanese companies fourteen investors in SWAMIH: across sectors. Sl. No. Investor Amount (`in Cr) The Portfolio is as follows: (in ` Crores) 1 Government of India 10,000 2 State Bank of India 1,250 Particulars Amount as on 31.12.2024 3 Life Insurance Corporation 1,250 Total capital commitment 4,908 4 Union Bank of India 500 Capital drawn down 1,092 5 Indian Bank 400 Portfolio investments committed 1,000 6 Punjab National Bank 400 (d) US-India Green Transition Fund (USIGF) 7 Canara Bank 400 In addition to the above developments, 8 Bank of Baroda 400 emanating from visit of Hon'ble PM to the US and the 9 Central Bank of India 400 subsequent meeting of the two leaders on the sidelines 10 HDFC Bank Limited Bank Limited of India's G20 Leaders Forum, the special initiative for (earlier HDFC limited) 250 the creation of US-India Green Transition Fund (USIGF) 11 Bank of India 100 was formalized. The objective of the proposed Fund is to 12 Bank of Maharashtra 100 help lower the cost of capital and attract international 13 Punjab & Sind Bank 75 private finance at scale to accelerate the deployment of 14 SBICAP Ventures Limited greenfield renewable energy, battery storage, and (Investment Manager) 6 emerging green technology projects in India. Total 15,531  US and India, through US Development Finance Corporation (DFC) and the National The Portfolio of SWAMIH Fund I is as follows: Investment & Infrastructure Fund (NIIF) have (in ` Crores) committed to contribute USD 500 million each by way of catalytic capital for USIGF. Particulars Amount as on 31.12.2024  USIGF has a target corpus of USD 2 billion Total capital commitment 15,531.0 and is structured as a credit fund for financing Capital drawn down 8,735.5 greenfield infrastructure projects in India. It Portfolio investments committed 12,257.4 is likely to be one the largest green transition The Fund has made 125 investments, across funds in emerging economies investing in India. Upon completion of the project, the Fund has development projects. achieved profitable full exits from 36 investments. About Special Window for Affordable and Mid-income 49492 housing units have applied for/achieved Housing (SWAMIH) Investment Fund I completion. The Fund was incorporated in December 2019 C) Digital Economy Section after the announcement by the Hon'ble Finance Minister The Digital Economy and FinTech Section has to set up a 'Special Window' in the form of Category-II been actively engaged in the initiatives aimed at Alternative Investment Fund to provide priority debt enhancing the digital economy, through the promotion of financing for the completion of stalled/stressed housing financial technology (FinTech) solutions for inclusive and projects. The Fund is managed by SBI Ventures Limited sustainable growth. This Section identifies the gaps and (formerly known as SBICAP Ventures Limited) a policy interventions required for the Digital Economy and subsidiary of State Bank of India. The investment FinTech sector like promoting digital payments, objective of the Fund is to complete construction of stalled simplification of KYC (Know Your Customer), taking / stressed residential development across geographies - Account Aggregator to population scale, bridging the pan India. credit gap in MSME financing etc. Extensive international The Fund invests in RERA-registered housing collaborations in Fintech sector are also undertaken to projects where 90% of Floor space index (FSI) is grow India's contribution in the Global Digital Economy. 34Department of Economic Affairs I This section is the secretariat for three Joint (e-commerce), UAE, Singapore, Sri Lanka, Mauritius and Working Groups (JWGs) with Philippines, Singapore, and Nepal. UPI-Pay.Now interlinkage has also been the United Kingdom to enhance collaboration in the established to facilitate cross-border remittance between FinTech sector. These Fintech JWG's aim to engage India and Singapore. Reserve Bank of India is continually relevant stakeholders and promote advancements in engaging with various Indian Missions abroad for digital payment connectivity and financial technology. globalizing the UPI payment rails, one of the most (i) The India-Singapore Joint Working Group (JWG) important foundational DPIs. National Payment has been convened sixth time in August 2024, Corporation of India (NPCI) international has reached out focusing on various aspects of FinTech for UPI Globalization in 80 plus countries and has already cooperation. Key topics of discussion, among executed MOU with more than 20 payment partners others, included the status of digital payment covering 30 plus countries. connectivity, particularly updates on the UPI- D) International Investment Treaties and Pay.Now interlinkage. Participants also Framework (IITF) Section discussed the ONDC and Proxtera initiatives The main function of IITF Section is to negotiate aimed at enhancing SME trade connectivity and and conclude Bilateral Investment Treaties (BITs) with financial services collaboration. other countries on the basis of the revised Model Bilateral (ii) The inaugural meeting of the Joint Working Investment Treaty (BIT) Text which was approved by the Group (JWG) between India and the Philippines Cabinet on 16th December, 2015. This section also was held in September 2024. The stakeholders handles the Investor State Dispute Settlement (ISDS) engaged in discussions on several agenda items. notices/cases arising out from BIT/Investment Protection These included sharing experiences on policies, Chapter under FTAs/CECA/CEPA signed with foreign regulations, and FinTech initiatives, which aims countries. Investment related issues in International to enhance understanding and cooperation in Forums such as UNCITRAL, UNCTAD, G20, BRICS and financial technology. The meeting also explored WTO are also dealt in this section. Additionally, Capacity collaboration on digital payments and financial building initiatives for central and state governments on inclusion, emphasizing the importance of making BIT issues are also organized. financial services accessible to all. Another critical area of discussion was promoting Achievements cooperation between FinTech firms, potentially 2. Based on India's Model BIT 2015, India has leading to innovative partnerships and solutions. signed the following Treaties/Agreement with other The meeting addressed cybersecurity and countries/Jurisdictions: financial frauds, highlighting the need for S. Country and Date of Signing Date of measures to protect financial systems. No. Name of of Agreement Enforcement (iii) The first roundtable meeting of the India-UK Agreement Payment Roundtable has taken place in October 1. Belarus: Bilateral 24th September, 5th March, 2024. The meeting successfully brought together Investment Treaty 2018 2020 key stakeholders to discuss critical topics on the 2. Brazil: Investment 25th January, Pending payments landscape in both the countries. Cooperation & 2020 Participants engaged in meaningful discussions Facilitation Treaty on UK payments priorities, the evolving retail 3. Kyrgyz Republic: 14th June, Pending payments landscape in India, and the Bilateral Investment 2019 internationalisation of UPI. The meeting also Treaty included valuable insights from Project Nexus, 4. Taiwan: Bilateral 18th December, 14th February, fostering an environment of collaboration and Investment Agreement 2018 2019 knowledge sharing. between India Taipei This section also looks into the forward-looking Association (ITA) in perspective of outlining a strategic blueprint for elevating Taipei and Taipei Financial Sector DPI across domestic and global scale. Economic and Cultural Center It offers a range of policy recommendations with the (TECC) in India objective of strengthening the foundations of DPI worldwide. The section is involved in taking Unified 5. UAE: Bilateral 13th February 31st August, Payment Interface (UPI) fast payment system global by Investment 2024 2024 building UPI like digital payment infrastructure and making Agreement digital payment infrastructure interoperable by means of 6 Uzbekistan - 27th September, Pending mutual acceptance and interlinkage of fast payment Bilateral Investment 2024 systems. Currently, the UPI is accepted in Bhutan, France Agreement 35Annual Report 2024-2025 3. India is currently discussing and negotiating 8. FB & ADB Division Bilateral Investment Treaties with many countries. 8.1 Introduction 4. In May 2022, India had signed Investment 8.1.1 The FB & ADB Division is concerned with policy Incentive Agreement (IIA) with Government of USA. In matters ultilateral Institutions like World Bank Group, addition to this, India signed Joint Interpretative International Monetary Fund (IMF), Asian Development Statements (JIS) on 4th October 2017, 4th October, 2018 Bank (ADB) and related Institutions. FB & ADB Division is also the nodal point for facilitating and monitoring and 11th July 2022 with Bangladesh, Colombia and Externally Aided Projects (Central & State Projects all over Mauritius respectively. India) which are being implemented through Multilateral E) Foreign Trade & Services Section Development Banks and other related Trust Funds / The main function of Foreign Trade (FT) section Loans / Grants. of Investment Division is dealing with the Policy matters 8.2 World Bank Group related to foreign exchange aspects related to Gold/Silver, 8.2.1 The World Bank is among the world's leading policy matters related to Gold viz. Gold Monetisation development institutions with a mission to fight poverty Scheme (GMS), Indian Gold Coin (IGC) and Gold Metal and improve living standards for people in the developing Loan (GML), drafting policy for promotion of Gold as a world by promoting sustainable development through loans, guarantees, risk management products and (non- Financial Asset Class. lending) analytic and advisory services. The World Bank Gold Monetization Scheme is one of the United Nations' specialized agencies. The With a view to mobilize the idle gold held by World Bank concentrates its efforts on reaching the households and institutions in the country; and put this Millennium Development Goals aimed at sustainable gold to productive use, e.g., by making available gold for poverty reduction. the gems and jewellery sector; and, over time to reduce 8.2.2 India is member of four institutions of the World the country's dependence on the import of gold, Bank Group viz., International Bank for Reconstruction Government launched the Gold Monetisation Scheme on and Development (IBRD); International Development Association (IDA); International Finance Corporation 5th November, 2015. (IFC) and Multilateral Investment Guarantee Agency The minimum deposit at any one time shall be (MIGA). India has been accessing funds from the World 10 grams of raw gold (bars, coins, jewellery excluding Bank (mainly through IBRD) for various developmental stones and other metals). There is no maximum limit for projects. Fund Bank Division, DEA is the focal point for deposit under the Scheme. Depositors may avail two India being represented in the WBG meetings for options for deposit: international level deliberations to discuss policy issues pertaining to the World Bank Group as also to undertake  Short term bank deposit (1-3 years) and projects with assistance from the World Bank (IBRD).  Medium and Long Term deposit (5-15 years) 8.3 World Bank India Portfolio Till November 2024, approximately 31,164 8.3.1 The World Bank's India portfolio as of 23rd kilograms of gold have been mobilised under GMS. The October, 2024 comprises of 83 projects with a net details are as under: commitment of USD 18.15 billion. The World Bank projects are spread across sectors like Agriculture, Details of Gold Mobilised under GMS Education, Energy, Environment, Finance, Governance, (as on 30th November 2024) Health, Infrastructure, Macroeconomics, Social, S.No. Types of Deposit Deposited Gold Transport, Urban, Water, Digital Development, etc. as on 30.11.2024 (in Kgs) 8.4 Major activities pertaining to the World Bank from 1st April, 2024 to 23rd October, 2024 1 Cumulative Quantity 8.4.1 Loan Signed & Disbursement: Five World Bank of Gold (in Kg) 31,164 assisted projects were signed during April - September a. Short term Gold Deposit 7,509 2024, amounting to USD 2.198 billion of assistance. The projects signed during April - September 2024 included b. Medium Term Gold Deposit 9,728 Second Low-Carbon Energy Programmatic Development c. Long Term Gold Deposit 13,926 Policy Financing, Fisheries Sector Prosperity Project, Karnataka Urban Water Supply Modernization Project- 2 Number of participating banks 10 AF, Uttarakhand Climate Responsive Rainfed Farming 3 Number of depositors 5,693 Project, and Assam Resilient Rural Bridges Program. 36Department of Economic Affairs I 8.4.2 Monitoring of the World Bank Portfolio: Portfolio climate change. In line with the Country Partnership performance has improved over the years as a result of Framework (CPF) of the World Bank Group, IFC uses review meetings such as Tri- partite Review Meetings its private sector expertise to support economic growth for ongoing projects and Pipeline Review Meetings for that is inclusive, productive and sustainable. pipeline projects. The meetings are organized jointly by 8.6 International Monetary Fund (IMF) Government of India and World Bank and attended by 8.6.1 India is a founder member of the International officials from Department of Economic Affairs (DEA), Monetary Fund, which was established to promote a World Bank and Implementing Agencies of World Bank cooperative and stable global monetary framework. At assisted projects. Two Tripartite Meetings to discuss the present, 191 nations are members of the IMF. Since the World Bank's on-going and pipeline projects were held in IMF was established, its purposes have remained April, 2024 in Udaipur and in September, 2024 in Mumbai. unchanged but its operations - which involve surveillance, 8.4.3 India as donor to IDA; since its founding in 1960, financial assistance and technical assistance - have IDA has had 20 regular replenishments. In 2014 (IDA 17), developed to meet the changing needs of its member India transitioned to being a confident donor. However, it countries in an evolving world economy. The Board of continued to receive transition support during IDA 17 Governors of the IMF consists of one Governor and one (2014-17). India became a donor only nation during Alternate Governor from each member country. For India, IDA18. As a commitment to India's shared objective of the Finance Minister is the ex-officio Governor on the eliminating extreme poverty, reducing vulnerability and Board of Governors of the IMF. There are three other increasing resilience across countries, India decided to countries in India's constituency at the IMF, viz. contribute USD 200 Million to IDA 17 replenishment. In Bangladesh, Bhutan and Sri Lanka. Governor, Reserve furtherance of its commitment towards the IDA countries, Bank of India (RBI) is India's Alternate Governor. India announced a pledge of INR 12.25 billion as its 8.6.2 Meetings of Board of Governors contribution towards IDA 18 replenishment. During the The Board of Governors usually meets twice a IDA 19 & IDA 20 replenishment, India committed INR 15 year viz. the Spring Meetings and the Annual Meetings bn & INR 17.48 bn respectively. Discussions on IDA 21 of the IMF and World Bank to discuss the work of the replenishment are on-going and will be finalized during respective institutions. At the heart of the gathering are the final pledging seminar in December 2024. meetings of the IMF's International Monetary and 8.5 International Finance Corporation (IFC) Financial Committee (IMFC). India is represented by the 8.5.1 The International Finance Corporation (IFC), a Hon'ble Finance Minister in IMFC and the joint World member of the World Bank Group, focuses exclusively Bank-IMF Development Committee (DC), which on investing in the private sector in developing countries. discusses progress on the work of the IMF and World Established in 1956, IFC has 186 members. India is the Bank. founding member of IFC. IFC is an important 8.6.3 The Spring Meetings of the IMF/ World Bank, development partner for India with its operations WB- IMF Side events, 2nd G-20 FMCBG, Bilateral and concentrated on financing and advising private sector in Investors were held in USA from April 15 to April 19, 2024. the country. India is IFC's sixth largest shareholder with Secretary (EA), Chief Economic Adviser, Additional 4.13% of the total capital subscription and 3.93% of the Secretary (FB, OMI & crypto), Additional Secretary total voting power. India's Executive Director represents (Revenue), Advisers (IER) and Director (IER) represented a constituency equal to 4.71% voting power. There are India in these meetings. three other countries in India's constituency at the IFC, viz. Bangladesh, Bhutan and Sri Lanka. IFC has 8.6.4 India voted in the favour of Dr. K. V. Subramanian, committed over USD 33.5 billion (including mobilization) ED India at IMF in the 2024 Regular elections of Executive in India since its first investment in 1958. IFC continued Directors at IMF. to deliver over USD 3.342 billion through own account 8.6.5 India has committed to contribute USD 50 million and mobilization in FY24 (July 2023-June 2024) in India. for Phase II of SARTTAC Operations (January 2024 - During July 2023-June 2024, DEA approved a total of 28 April 2029) in two instalments of 25 million each. The Article III Notifications. Further, DEA granted approval second tranche of first instalment amounting to for 3 advisory engagements of IFC between July 2023 Rs 107,83,87,335.00 equivalent to USD 12,974,828.91 and June 2024. IFC's portfolio as of August 31, 2024 million has been contributed by India on May 29, 2024 included 288 projects with 217 clients, with portfolio which completes the first instalment of USD 25 million. exposure of USD 8.7 billion, making India IFC's largest portfolio accounting for 10.7% of its global exposure. India 8.6.6 The IMF Mid-year staff visit was held during is also one of IFC's largest advisory client, as well as the August 7-14, 2024, with the Wrap Up meeting, chaired IFC regional hub for South Asia. IFC's investments in by Secretary (EA) and attended by all concerned India are spread across priority sectors like infrastructure, Departments, on August 14, 2024. Discussions were held manufacturing, financial markets, MSMEs, affordable on the Macroeconomic issues and financial sector issues housing, renewable energy, gender development and and Data Adequacy Assessment. 37Annual Report 2024-2025 8.6.7 The Annual Meetings of the IMF/ World Bank, investment (FDI) into developing countries. MIGA meetings of G-20, Bilateral meetings and Investment currently has 182 members. It provides investment meetings and other associated meetings at the side-lines guarantees to private sector investors and lenders, were held in Mexico and USA from October 17 to October particularly in conflict affected countries. At present, India 26, 2024. The Hon'ble Finance Minister, Secretary (EA), has 3.03% capital subscription with a voting power of Chief Economic Adviser, Additional Secretary (FB, OMI & 2.53% in the MIGA Board. As a constituency India has crypto), Director (FB), Deputy Secretary (Investment) and 3.41% of total voting power. MIGA also provides technical Deputy Secretary (IER) represented India in these meetings. assistance to developing countries as well as helps them in their efforts to attract foreign capital, technology, and 8.7 Global Alliance for Vaccines and know-how. MIGA's mission is to support economic Immunizations (GAVI Alliance) growth, reduce poverty, and improve people's lives by 8.7.1 The GAVI Alliance (formerly the Global Alliance mobilizing cross-border private investment into for Vaccines and Immunization) was founded in 2000 to developing countries. MIGA guarantees help borrowers reduce the historical gap in access to life saving vaccines (sub-sovereign and state-owned enterprises) diversify and reduce child mortalities. GAVI's mission is to save their funding sources with improved financing terms and children's lives and protect people's health by increasing conditions without needing the Government of India's access to immunization in poor countries. India is not counter indemnity. MIGA set up its first office in India in only a recipient, but also a contributor to GAVI Alliance. November 2022 (one of only 10 MIGA overseas offices) As per 'Contribution Agreement' signed between to further enhance its engagement in the country and the Government of India and GAVI, India committed to broader South Asia region. India has recently approved contribute USD 3 million per annum to the GAVI Alliance the Host Country Approval (HCA) of MIGA with SBI for during the replenishment cycle of five year i.e. 2021-25. refinancing of USD 200 million of an existing IBRD loan 8.7.2 A proposal of MoHFW was received in 2020 for extended to SBI for the Grid Connected Solar Rooftop enhancement of India's contribution to the GAVI in the Program. The MIGA guarantee will support the next replenishment cycle of five year i.e. 2021-25. It was refinancing of operating rooftop solar projects in India. decided with the approval of Hon'ble Finance Minister 8.10 Asian Development Bank that the Govt. of India will make a contribution of US$ three million per annum to GAVI, i.e., a cumulative 8.10.1 ADB Membership: India became a founding contribution of US$ 15 million for the next replenishment member of the Asian Development Bank (ADB) in 1966. cycle of GAVI of five years. The Multi-Year Contribution ADB envisions a prosperous, inclusive, resilient, and Agreement towards the replenishment for the next five sustainable Asia and the Pacific, with a steadfast focus years (2021-25) was signed on 30th June, 2021 and on eradicating extreme poverty. Through loans, technical Fourth installment was made on 5th January, 2024. assistance, grants, and equity investments, ADB supports its members and partners in their pursuit of social and 8.8 Global Fund to Fight AIDS, Tuberculosis and economic development. Malaria (GFATM) 8.10.2 ADB has 69 members, split into 49 regional and 8.8.1 The Global Fund to Fight AIDS, Tuberculosis and 20 non-regional members. Headquartered in Manila, Malaria (The Global Fund / GFATM) is an international Philippines, ADB's authorized and subscribed capital stock financing organization that aims to attract and disburse stands at $163.12 billion, of which India's subscription is additional resources to prevent and treat HIV and AIDS, $10.3 billion. India holds 6.32% of shares in ADB, Tuberculosis and Malaria. The organization is public- equivalent to 672,030 shares (@$12063.5 per share). India private partnership with Secretariat at Geneva, has 5.35% voting rights. Japan and the United States are Switzerland. The organization began operations in the largest shareholders with 15.57% each of the shares. January 2002. GFATM supported programs have China and India are the third and fourth largest estimated to have saved 50 million lives since 2002. shareholders, with 6.43% and 6.32%, respectively. 8.8.2 As per the 'Multi-Year Contribution Agreement' 8.10.3 The Asian Development Fund (ADF), a special signed between the Government of India and GFATM on fund of ADB, is dedicated to extending financial support 6th February, 2023, India committed USD 25 million to to less credit worthy and prone to debt distress members, GFATM during the Seventh Voluntary Replenishment primarily those classified under Group A, with selective cycle (2023-25) as per following schedule (i) US$ 8 million support to Group B member countries. India became a in 2023 and 2024 each and (ii) US$ 9 million in 2025. donor to ADF in July 2014 and contributed $30 million for India's Second installment to the GFATM for 2024-25 the ADF 11 replenishment. This commitment was followed (USD 8 million) was paid in December 2024. by a contribution of $41.74 million to ADF 12. Continuing 8.9 Multilateral Investment Guarantee Agency its support, India has pledged $51.38 million to ADF 13 (MIGA) and $61.31 million to ADF 14. ADB provides concessional 8.9.1 Multilateral Investment Guarantee Agency financing through ADF to its developing member countries (MIGA) was founded in 1988 to promote foreign direct (DMC) based on agreed yardsticks. 38Department of Economic Affairs I 8.10.4 ADB is governed by a structure that includes a programs to improve the country's health system Board of Governors (BoG), a Board of Directors (BoD), a preparedness and capacity to respond to future President, six Vice Presidents and specialized officers and pandemics as well as state level projects to strengthen staff in its headquarters and country offices. The BoG is tertiary health care and medical education system and to ADB's highest policy-making body, with representatives improve early childhood development and maternal from each member nation, including India, where the mental health. Finance Minister serves as the Governor. The BoG Portfolio performance has improved over the exercises its powers and functions with the assistance of years as a result of regular tripartite portfolio review the BoD, which performs its duties full time at the ADB meetings (TPRM) for ongoing and pipeline projects. India headquarters. The Directors supervise ADB's financial achieved a record sovereign loan disbursement of $3.7 statements, approve its administrative budget, and review billion in 2022, followed by $2.69 billion in 2023 and $2.93 and approve all policy documents and all loan, equity, and billion in 2024. technical assistance operations. India is represented in the BoD by an Executive Director (ED), who is nominated 8.10.7 ADB assistance to India supports the by the Government of India. ED is supported by officers government's development priorities, evolving focus from India (two advisers and one executive assistant). areas, and flagship initiatives. The India country partnership strategy (CPS) of ADB provides the 8.10.5 Annual Meetings of BoG are held in a designated overarching framework for ADB's operations in India. In member country in early May. Annual meetings are line with the government's guiding principle that occasions for the BoG to provide guidance on ADB multilateral development partners add value beyond administrative, financial, and operational directions. The tangible investments, ADB leverages knowledge, meetings provide opportunities for member governments supports capacity development, and incorporates to interact with ADB staff, nongovernment organizations innovation and best practices into its operations. ADB's (NGOs), media, and representatives of observer countries, country partnership strategy (CPS), 2023-2027 for India international organizations, academia, and the private was approved in May 2023. sector. Bilateral meetings are held between countries on the side lines of the annual meeting. The 46th Annual 8.10.8 The new CPS seeks to catalyze the country's Meeting of ADB was hosted by India on 2-5 May 2013 in robust, climate-resilient, and inclusive private sector-led New Delhi. The 57th Annual Meeting was held on 2-5 May growth by accelerating structural transformation and job 2024 in Tbilisi, Georgia. The 58th Annual Meeting is creation, promoting climate-resilient green growth, and scheduled to be held from 4-7 May 2025 in Milan, Italy. deepening social and economic inclusiveness. ADB will support strategic and coordinated investments and 8.10.6 ADB assistance to India commenced in 1986. strengthen the logistics-industry-urban-skilling nexus to Till date, ADB has committed 309 sovereign loans help cities serve as engines of economic growth. ADB amounting to $56.00 billion. The ongoing sovereign will operationalize a holistic engagement framework to lending portfolio of ADB projects in India consists of 80 enable the central and state governments to prioritize and loans worth $16.84 billion. ADB's annual sovereign implement climate actions. ADB will also strengthen its lending in India increased to an all-time high of $4.6 billion human development, and agriculture and rural in 2021, including a $1.5 billion loan under Asia Pacific development portfolio while keeping its focus on basic Vaccine Access Facility (APVAX) to support government's urban services, prioritizing lagging states and districts. rapid vaccination rollout to contain the ongoing pandemic ADB shall be engaging in upstream studies and sustained and help reduce severity of a possible third wave and dialogues with key central line ministries to identify their loss to life. In 2022, the annual lending level declined to development priorities, financing, and knowledge needs. $1.8 billion due to the impact of COVID-19 on project At the state level, ADB shall pursue a differentiated readiness. The 2022 regular assistance program included approach to prioritize projects on basic services, critical projects in transport, urban, energy, and public sector infrastructure and services, institutional strengthening, management sectors. In 2023, ADB committed sovereign and private sector development through the sovereign lending of $2.59 billion, covering projects in transport, operations in low-income states. Support for more urban, energy, agriculture, and public sector management developed states will focus on transformational programs sectors. In 2024, ADB committed sovereign lending of with policy and knowledge advice, combined with non- $4.24 billion. To develop cities as engines of economic sovereign operations. growth, ADB focused on water and urban sector to support climate resilient, sustainable and inclusive 8.10.9 The South Asia Subregional Economic infrastructure and services. To support India's climate Cooperation (SASEC) Program brings together action, ADB financed projects aimed at promoting green Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, infrastructure, decarbonization of energy and transport and Sri Lanka in a project-based partnership. Under this sectors and building resilience of communities to climate flagship program, ADB has been working with the SASEC change. ADB also prioritized health sector by supporting countries to build cross-border power connectivity, 39Annual Report 2024-2025 facilitate regional trade, and connect transport network be financed under one or more ensuing ADB-financed for movement of goods and people. SASEC countries projects with quality project designs and a high level of share a common vision of boosting intraregional trade implementation readiness. PRF and KSTA in NER aim to and cooperation in South Asia, while also developing support development of investment plans/projects for key connectivity and trade with Southeast Asia, East Asia, sectors and preparation of feasibility studies, detailed and the global market. The SASEC Vision was launched designs, procurement process, and timely completion of in April 2017 in the SASEC Finance Ministers' Meeting in preconstruction activities of priority projects. Building New Delhi. It articulates shared aspirations of SASEC institutional capacity is one of the key components of PRFs countries and set the path to achieve these through and KSTAs, which intend to support infrastructure planning regional collaboration. The vision document lays out a and implementation capacities of the line departments. plan to transform the subregion by leveraging natural Presently, Sikkim Road Sector PRF ($2.5 million), Tripura resources, promoting industry linkages for the Urban and Tourism Development PRF ($4.2 million), and development of regional value chains, and expanding the the Mizoram Urban Transport PRF ($4.5 million) are under region's trade and commerce through the development implementation. Tripura Industry PRF ($2 million), Tripura of subregional gateways and hubs. The SASEC City Infrastructure PRF ($3 million), Manipur Road Sector Operational Plan presents the strategic objectives of the PRF ($5 million), and Nagaland Urban Infrastructure PRF SASEC partnership, and the operational priorities of the ($2 million) are under processing. KSTA support is also four main SASEC sectors: transport, trade facilitation, being mobilized for developing sector investment plans in energy, and economic corridor development. It is Tripura and Assam (Road Sector and Urban & Rural Water supported by a list of potential projects regularly updated Supply - Sanitation). by SASEC countries to be implemented during 2016-2025. 8.10.10 The Capacity Development Resource Center Bhutan hosted the SASEC Working Group (CDRC) at ADB's India Resident Mission is a unique meetings on transport, trade facilitation, and energy in institutional arrangement to help build capacities of Thimphu from 4-7 November 2024. More than 100 executing agencies in ADB procedures, project government officials of the SASEC countries participated. implementation, thematic topics, and presentation of good The decisions of the SASEC working groups were practices to support robust portfolio performance. In 2024, discussed and endorsed in the SASEC Senior Officers' CDRC conducted 25 capacity development programs meeting (SOM) held in Thimphu from 8 November 2024. benefitting 1,408 executing and implementing agency The SASEC SOM updated Action Plan of SASEC Initiative staff (24% women) from 86 projects covering entire India (2024-2026) and asked ADB to initiate work on next rolling portfolio. Majority of participants evaluated the programs plan of APSI (2025-2027). The SOM resolved to focus as useful and 96% rated it as relevant, demonstrating on initiatives on decarbonatization and digitalization for that the training courses are demand driven and enhanced regional cooperation and integration. operationally relevant. A knowledge exchange program was organized by CDRC for the representatives from Govt As of 30 June 2024, SASEC Countries have of Indonesia and Nepal. The program shared India's signed and implemented 87 projects worth $20.75 billion, project management practices with the delegations, with ADB financing of $12.80 billion. The transport and covering project readiness checklist of DEA, Capacity tourism sector accounts for most projects (51 projects Development Resource Center, MDB financing, digitized worth a cumulative $8.70 billion), followed by energy (16 solutions, procurement, safeguards clearances, tripartite projects worth $1.57 billion), economic corridor portfolio review meetings (TPRMs) and environmental development (7 projects worth $1.64 billion), trade clearances. For long term sustainability and large-scale facilitation (7 projects worth $343.67 million), ICT (2 projects replication to benefit Indian agencies, CDRC is working worth $12.57 million), and health (3 projects worth $356.47 towards institutionalizing training programs within the million). In addition, ADB technical assistance has national eco system to benefit other MDBs, Bilaterals, supported SASEC investment projects in India, regional GOI and State Government agencies. The plan is cooperation forums, and knowledge-sharing initiatives, and proposed for implementation during 2025-2026. pilot projects since 2001. An additional 155 technical 8.10.11 Technical Assistance (TA) program has also assistance projects with total cumulative value of $224.78 evolved in line with the loan program. TA helps DMCs million has been provided to assist in project preparation, enhance capacity, improve project preparedness and strategic planning, and capacity building. ADB is assisting implementation, promote technology transfer, and Government of India in extending project development undertake analytical studies. support through project readiness financing (PRF) loans, along with grants in the form of knowledge support 8.10.12 ADB's Technical Assistance Special Fund technical assistance (KSTA) to northeastern region (NER) (TASF) provides technical assistance improving capacity states. PRFs enable quick response to continued demand in the formulation, design, and implementation of projects for project development and finance project preparation to facilitate effective use of external financing. India has and design activities for investments that are expected to been voluntarily contributing to TASF since 1970. 40Department of Economic Affairs I 9. International Economic Relations 2009), Toronto (June, 2010), Seoul (November, 2010), Division Cannes (November, 2011), Los Cabos (June, 2012), St. Petersburg (September, 2013), Brisbane (November, 9.1. The International Economic Relations (IER) 2014), Antalya (November, 2015), Hangzhou (September, Division of the Department of Economic Affairs handles 2016), Hamburg (2017), Buenos Aires (2018), Osaka matters related to the following forums, including content (2019), Riyadh (2020), Rome (October, 2021) and Bali and coordination with stakeholder Departments/ (2022). The 18th G20 Summit was held under the Indian Ministries: G20 Presidency in New Delhi, India on 9-10 September,  G20 Finance Track; 2023. The 19th G20 Summit was held under the Brazilian  BRICS; G20 Presidency in Rio de Janeiro on November 18-19, 2024.  G7; G20 issues are discussed through two parallel  G24; tracks, viz., Finance Track and Sherpa Track. The  OECD; Finance Track of the G20 discusses global economic and  SAARC, SAARC Development Fund financial issues. The track is headed by G20 Finance Ministers and Central Bank Governors who are assisted  ASEAN, Asia Europe Meeting (ASEM), by G20 Finance and Central Bank Deputies. Hon'ble Caribbean Union Finance Minister and Governor, RBI jointly head the G20  World Economic Forum (WEF) Finance Track work in India. They are assisted  BIMSTEC respectively by Secretary, Economic Affairs (who is India's G20 Finance Deputy) and Deputy Governor, RBI (who is  Shanghai Cooperation Organisation (SCO); India's G20 Central Bank Deputy). The G20 Finance  Voice of Global South Summits; Ministers and Central Bank Governors usually meet three to four times a year. They finally report to the G20 Leaders  Commonwealth of Independent States (CIS) who are the apex decision-makers in the G20. Meetings countries (Armenia, Azerbaijan, Belarus, of Finance and Central Bank Deputies (FCBD) are held Georgia, Kazakhstan, Kyrgyzstan, Moldova, in the run-up to every FMCBG Meeting. Technical-level Tajikistan, Turkmenistan, Ukraine, Uzbekistan), discussions are held through meetings of Working  South Asia (Afghanistan, Bangladesh, Bhutan, Groups, usually 3-4 times a year. Maldives, Nepal, Pakistan, Sri Lanka), South East Asia (Brunei, Burma, Cambodia, East The Finance Track comprises 8 workstreams. Timor, Indonesia, Laos, Malaysia, Philippines, There are Working Groups for 5 of these workstreams Singapore, Thailand, Vietnam), North America and a Joint Finance-Health Taskforce, listed as under: (Mexico), East Asia (Mongolia, Hong Kong, 1. Framework Working Group (FWG) Taiwan) 2. International Financial Architecture Working Group  Capacity Building Unit of DEA (IFA WG)  Sectoral Charge 3. Infrastructure Working Group (IWG) a) Ministry of Defence, 4. Sustainable Finance Working Group (SFWG) b) Ministry of Tribal Affairs 5. Financial Sector Issues E- Governance: 6. Global Partnership for Financial Inclusion (GPFI) IER division has fully operationalized E-file System. 7. International Taxation I. G-20 8. Joint Finance and Health Task Force (JFHTF) The G20 was formed in 1999, following the Asian financial crisis, as a forum for Finance Ministers and The mandates of G20 Finance Track workstreams Central Bank Governors to discuss global economic and along with relevant details are as follows: financial issues. It gained prominence in 2008 when it 1. Framework Working Group (FWG) discusses was elevated to the level of G20 Heads of Nations to the global economic outlook, monitoring of global risks effectively respond to the global financial crisis of 2008. and uncertainties and recommends possible areas of The first G20 Summit was held in November 2008 policy coordination aimed at promoting Strong, in Washington DC. This was followed by sixteen summits Sustainable, Balanced, and Inclusive Growth (SSBIG) held in London (April, 2009), Pittsburgh (September, across the G20. 41Annual Report 2024-2025 Co-chairs - India has been co-chairing this group 6. Global Partnership for Financial Inclusion since its inception in 2009. From 2009 to 2019, India co- (GPFI) is mandated to advance financial inclusion globally chaired the Group with Canada. UK has been the co- by increasing access to, as well as usage of, sustainable chair of the FWG since 2020. formal financial services, thereby expanding opportunities for underserved and excluded households and 2. International Financial Architecture (IFA) enterprises. The GPFI's scope of work and overall Working Group discusses reforms to enhance the objectives are defined by a G20 Financial Inclusion Action stability and cohesion of the international financial Plan (FIAP) drafted and agreed upon every three years. architecture, including issues relating to debt sustainability The two broad priorities of G20 2023 FIAP are Digital and transparency; strengthening the Global Financial Financial Inclusion and MSME Financing. In addition, Safety Net (GFSN), reform of IMF quotas and governance GPFI continues to work on reducing the cost of reforms, Special Drawing Rights (SDRs); capital flow remittances below 3% as mandated by SDGs; building management measures, development finance and relationship with non-G20 countries and engagement with Central Bank Digital Currencies (CBDCs). Standard Setting Bodies (SSBs). Co-chairs: The IFA-WG is co-chaired by France Co-chairs: India and Italy are the Co-Chairs of the and South Korea. The group was set up in 2012. GPFI. The GPFI was created in 2010 3. Infrastructure Working Group (IWG) discusses 7. International Taxation At the Antalya Summit in the mobilization of finance for infrastructure and 2015, G20 Leaders stressed the need to prevent base developing infrastructure as an asset class. The Group erosion and profit shifting and tasked OECD with has been deliberating on policies for improving the developing and implementing a new international taxation preparation, financing, and management of quality agenda known as the Inclusive Framework on Base infrastructure investments. Erosion and Profit Shifting (BEPS). The work is focused Co-chair: At present, the IWG is co-chaired by on addressing Base Erosion and Profit Shifting issues in Australia and Brazil. The group was set up in 2014. international taxation; taxation of the digital economy; tax 4. Sustainable Finance Working Group (SFWG) is transparency; tax avoidance; tax certainty and reforms mandated to work towards mobilizing sustainable finance of the international tax system. Presently, this work is as a way of ensuring global growth and stability and anchored in the G20 by OECD Inclusive Framework on promoting the transition towards greener, more resilient, BEPS comprising 141 members. The work is reported inclusive societies and economies. The Group is tasked by the OECD directly to the G20 Finance Ministers and to identify institutional and market barriers to sustainable Governors. There is no working group under the G20 finance and develop options to overcome such barriers, Finance Track on this agenda. and contribute to better alignment of the international 8. Joint Finance and Health Task Force was financial system to the objectives of the 2030 Agenda established during the G20 Rome Leaders' Summit, and the Paris Agreement. 2021. The Task Force is aimed at enhancing dialogue Co-chair: The SFWG is co-chaired by China and and global cooperation on issues relating to pandemic the US. The United Nations Development Programme Prevention Preparedness and Response (PPR), promoting the exchange of experiences and best (UNDP) serves as the Secretariat for the SFWG. The practices, developing coordination arrangements Group was set up in 2021. between Finance and Health Ministries, promoting 5. Financial Sector agenda focuses on monitoring collective action, assessing and addressing health the implementation of financial market regulation and emergencies with cross-border impact, and encouraging coming up with solutions as and when new challenges to effective stewardship of resources for pandemic financial stability arise. The work is anchored in the prevention, preparedness and response (PPR), while Financial Stability Board (FSB) which is mandated to adopting a One Health approach. assess vulnerabilities affecting the global financial system Co-chairs: The Task Force is co-chaired by Italy as well as to identify and review, on a timely and ongoing and Indonesia and is assisted by a Secretariat housed at basis within a macroprudential perspective, the regulatory, the World Health Organisation (WHO), with the support supervisory and related actions needed to address these of the World Bank. vulnerabilities and their outcomes. The work is reported by the FSB directly to the G20 Finance Ministers and Brazilian G20 Presidency 2024 Governors. There is no working group under the G20 Brazil assumed the Presidency of G20 from India Finance Track on this agenda. on December 1, 2023. The Brazilian Presidency is centred 42Department of Economic Affairs I on the theme, "Building a fair world and a sustainable culmination of the efforts of the G20 Task Force for the planet", and has three overarching priorities: Mobilization against Climate Change (TF CLIMA) during a) Social inclusion and the fight against hunger the Brazilian Presidency. The Joint Ministerial Statement b) Energy transition and sustainable and the TF CLIMA outcome document may be seen at development in its three aspects (social, https://www.g20.org/en/tracks/sherpa-track/climate- economic and environmental) change c) Reform of global governance institutions The 19th G20 Leaders' Summit was held on Brazil Presidency also set up two new G20 Task November 18 and 19, 2024, in Rio de Janeiro, Brazil. Forces, viz., the Global Alliance against Hunger and The outcome of this summit is the G20 Rio de Janeiro Poverty (TF GAHP), and Global Mobilization against Leaders' Declaration3, which was adopted by the G20 Climate Change (TF CLIMA). Under TF GAHP, the Leaders. The declaration reflects the key outcomes of Presidency launched the Global Alliance against Hunger the Sherpa and Finance Tracks of the G20 under the and Poverty at the Rio Summit in November 2024. Brazilian Presidency. The first communique1 of the G20 Finance Key priorities from the 2023 Indian Presidency taken Ministers and Central Bank Governors (FMCBG) under forward by the Brazilian Presidency in 2024 the Brazilian Presidency was adopted on July 25-26, 2024 a) Strengthening Multilateral Development Banks during the third meeting of the G20 FMCBGs held in Rio (MDBs): In 2023, Indian Presidency held focused de Janeiro, Brazil. The key factor that enabled the discussions on several aspects of MDB evolution, Brazilian Presidency to arrive at an agreed Communique including incentive structure, operational approaches, was the consensus reached by G20 Sherpas to issue a and financial capacity for making MDBs better equipped separate Chair's Statement on geopolitical issues along to address the global challenges of the 21st century and with Ministerial Communiques. This was aimed at the development needs of low and middle-income separating the geopolitical debate from the subject matter countries. The two key outcomes of the Indian of Ministerial Meetings. In July, the Brazilian Presidency Presidency under the MDB agenda were the 2 volume also produced a standalone G20 International Tax Report of the G20 Independent Expert Group (IEG) on Declaration2 under which the G20 members committed Strengthening MDBs and the G20 Roadmap for the to strengthen their respective domestic reform endeavours, implementation of the recommendations of the G20 engage cooperatively to ensure that ultra-high-net-worth Independent Review of Multilateral Development Banks' individuals are effectively taxed and make significant Capital Adequacy Frameworks (CAF). The Brazilian progress towards the implementation of Pillar 2 and Presidency's outcome on the MDB agenda in 2024 is finalisation of all components of Pillar 1, among others. the G20 Roadmap for better, bigger, and more effective The fourth and final meeting of the G20 Finance MDBs. The Roadmap is a key deliverable of the Brazilian Ministers and Central Bank Governors (FMCBG) under G20 Presidency which was endorsed by the G20 the Brazilian Presidency was held on 23-24 October 2024, Leaders in the November 2024 G20 Rio Summit. The in Washington DC, US, on the sidelines of the IMF/WB Roadmap has been built on the mandate received from Annual Meetings. The G20 FMCBG meeting was G20 Leaders in New Delhi Declaration and identifies preceded by the Fifth G20 Finance and Central Bank recommendations and actions for MDB reforms based Deputies Meeting on 22 October 2024, during which the on the IEG Report. Deputies negotiated the G20 Communiqué, leading to b) Macroeconomic risks stemming from Climate its adoption by FMCBGs on October 24, 2024. The Change and Transition Pathways: One of the key Communique may kindly be seen at https://www.g20.org/ priorities of Brazilian Presidency in 2024 is assessing the pt-br/documentos/trilha-de-financas/4th-fmcbg- distributional implications of climate change and communique.pdf/@@download/file sustainable transition policies. The G20 Note on the The G20 Brazil Presidency also hosted a G20 macroeconomic and distributional impacts of climate Joint Meeting of Finance, Climate & Environment, and change and transition policies, was delivered to the G20 Foreign Affairs Ministers and Governors of Central FMCBGs in the October G20 FMCBG Communique. The Banks on 24 October 2024. This meeting marked the note builds on the 2023 G20 report on macroeconomic 1https://www.gov.br/fazenda/pt-br/assuntos/g20/declaracoes/2-3rd-fmcbg-communique.pdf. It may be noted that in the first meeting of the G0 FMCBGs under the Brazilian Presidency, a Chair's Summary was produced by the Presidency since a consensus on the communique was unable to be reached at by the membership due to differences on how the geopolitical issues may be referenced in the FMCBG communique. 2https://www.g20.org/pt-br/documentos/trilha-de-financas/1-g20-ministerial-declaration-international-taxation-cooperation.pdf/@@download/file 3https://www.consilium.europa.eu/media/l11hh2mb/g20-rio-de-janeiro-leaders-declaration-final.pdf 43Annual Report 2024-2025 risks stemming from climate change and transition e) Crypto-assets: Policy and Regulations: Under pathways, which was endorsed by the G20 Leaders in the Indian Presidency, a joint IMF-FSB Synthesis Paper New Delhi. was developed which provided policy and regulatory recommendations to identify and respond to c) Advancing Financial Inclusion: Implementation macroeconomic and financial stability risks associated of 2023 Financial Inclusion Action Plan (FIAP) endorsed with crypto assets and outlined a roadmap for effective under India's G20 Presidency and two FIAP deliverables and coordinated policy implementation. The paper was were produced in 2024, viz. G20 Policy Options for welcomed by the Leaders in the G20 NDLD and the improving 'last mile' access and quality inclusion through G20 Roadmap on Crypto Assets was adopted at the digital infrastructure, including Digital Public Infrastructure G20 FMCBG meeting held in Marrakesh. During the (DPI), consumer protection and other FIAP objectives. July 2024 G20 FMCBG meeting, Ministers and (endorsed by the G20 FMCBGs in October 2024 Ministerial Governors recognized the joint efforts of the IMF and meeting) and the New G20 Action Plan for MSME the FSB, in collaboration with the World Bank, the Financing (the G20 FMCBGs took note of the advances Financial Action Task Force (FATF) and its global regarding this deliverable and looked forward to its final network, and SSBs, towards the implementation of the version). In addition, GPFI also produced "Updates to G20 Roadmap on Crypto Assets, including beyond G20 Leaders on the Progress towards G20 Remittances Target" jurisdictions. The first status report related to the G20 as one of the continuing areas of GPFI. roadmap on crypto assets was welcomed at the 4th Additionally, India, alongside Italy, managed the FMCBG in October 2024. GPFI Co-Chair Secretariat, which included implementing f) International Taxation Agenda: One of the GPFI priorities, overseeing the development of GPFI flagship priorities of the Indian G20 Presidency under the deliverables, coordinating with all members, and International Taxation agenda was enhancing tax organizing meetings. transparency. On the request of the Indian G20 Further, in January 2023 'India's G20 Task Force Presidency, the OECD had presented a report to the G20 on Digital Public Infrastructure for Economic on 'A roadmap for enhancing international tax Transformation, Financial Inclusion and Development' transparency on real estate' which was taken note of in was established to oversee and facilitate achieving India's the New Delhi Leaders Declaration (NDLD). Under the G20 Presidency agenda and priorities on Digital Public Brazilian Presidency, the work is being carried forward, Infrastructure (DPI) and Financial Inclusion. The Task and during the 3rd FMCBG Meeting, the OECD has Force was led by the Co-Chairs - Shri Amitabh Kant, G20 presented a report titled 'Strengthening International Tax Sherpa of India and Shri Nandan Nilekani, Co-founder Transparency on Real Estate - From Concept to Reality', and Chairman of Infosys and the Founding Chairman of building on the July 2023 Report to the Indian G20 UIDAI (Aadhaar). It released the 'Report of India's G20 Presidency. In the Ministerial Declaration issued by G20 Task Force on Digital Public Infrastructure' by 'India's Finance Ministers on International Cooperation, OECD G20 Task Force on Digital Public Infrastructure for has been invited to continue work on exchanging Economic Transformation, Financial Inclusion and foreseeably relevant information regarding real estate for Development' in 2024. tax purpose, building on the Indian G20 Presidency. d) Scaling up sustainable finance: During India's g) Financing Cities of Tomorrow: In 2023 the G20 G20 Presidency, the SFWG developed Technical Leaders emphasised the need for enhanced Assistance Action Plan (TAAP) to scale up capacity- mobilisation of finances and efficient use of existing building efforts in sustainable finance. Under the Brazilian resources in the efforts to make the cities of tomorrow Presidency, the Implementation Mechanism for G20 inclusive, resilient, and sustainable. This emphasis on TAAP was convened by UNDP to facilitate knowledge inclusivity and resilience has been carried forward under sharing, and tailoring capacity-building efforts in line with the Brazilian G20 Presidency in the form of two key the national circumstances. To discuss the progress on priorities identified in the Infrastructure Working Group the implementation of TAAP a G20 session was held on work plan, namely, financing climate-resilient the side-lines of 4th SFWG Meeting. Further, expanding infrastructure and linking infrastructure with poverty the area of work under Analytical framework for SDG- reduction. The report pertaining to the priority aligned finance developed during the Indian Presidency, 'Approaches for Financing and Investment in Climate- the Brazilian Presidency took financing of Nature based Resilient Infrastructure' has been welcomed in the July Solutions as one of the key priority areas under SFWG 2024 FMCBG meeting while the other report for 2024. 'Infrastructure and Poverty Reduction: Innovative 44Department of Economic Affairs I Policies for Effective Access' has been endorsement in  The Ministry of External Affairs is the nodal Ministry the October 2024 FMCBG Meeting. The report on on BRICS. IER Division, DEA coordinates on the 'Infrastructure and Poverty Reduction: Innovative BRICS Financial Cooperation agenda in Policies for Effective Access' draws upon the G20/OECD consultation with the Reserve Bank of India and report on 'Financing Cities of Tomorrow' under the Indian other key stakeholders. G20 Presidency to highlight the need for attracting  The Chairmanship of BRICS was taken over by private financing, and leveraging innovative financing Russia from South Africa on 1st January 2024. and funding mechanisms. BRICS Financial Co-operation h) Finance-Health Collaboration: The August 2023 Financial Cooperation is one of the prominent areas report on Framework for Health, Social, Economic of cooperation in the BRICS forum. Issues and initiatives Vulnerabilities & Risks (FEVR), under the Indian under the BRICS financial cooperation are dealt with by Presidency, envisioned an update and expansion of the the Ministries of Finance and Central Banks of the BRICS analysis in the existing Framework, as well as the nations and such issues are discussed during the development of a comprehensive report on global meetings of BRICS Finance Ministers and Central Bank health, social, and economic vulnerabilities. The Governors (FMCBG) assisted by their Finance and Brazilian G20 Presidency has further updated and Central Bank Deputies. Secretary (EA) is India's BRICS refined the Framework as presented in the G20 Global Finance Deputy and Deputy Governor (RBI) is India's Report on FEVR related to Pandemics. They have also BRICS Central Bank Deputy. elevated a focus on addressing inequity, including BRICS 2024 Meetings & Outcomes through discussing the social determinants of health Russia assumed the BRICS Chairmanship on 1st (SDH): the conditions in which people are born, grow, January 2024 and hosted the XVI BRICS Summit in work, live, and age, that impact health and well-being October 2024 under the theme: "Strengthening across the life course and the inequities in access to Multilateralism for Equitable Global Development and power, decision-making, money and resources that give Security". rise to these conditions. In the Finance Track under Russian Chairmanship The New Delhi Leaders Declaration also supported of BRICS, two meetings of the BRICS Finance Ministers advancing work on "mapping pandemic response and Central Bank Governors (FMCBG) and four meetings financing options and gaps", as well as further discussions of the BRICS Finance and Central Bank Deputies were on optimizing, coordinating, and, where necessary, held, the following being the issues under discussions in enhancing financing mechanisms for efficient 2024: deployment. In this regard, the G20 Operational Playbook Ministry of Finance Issues provides a much-needed overview of pandemic response 1. BRICS Economic Outlook financing needs and sources, covering both domestic and 2. Improvement of International Monetary and external financing options for different categories of Financial System response. 3. Cooperation on Customs and Tax South African G20 Presidency 2025 4. Infrastructure and Investments South Africa assumed the Presidency of the G20 5. BRICS Think Tank Network for Finance from December 1, 2024 under the theme "Solidarity, Equality, and Sustainability". Central Bank issues 1. Contingent Reserve Arrangement (CRA) II. BRICS 2. BRICS Rapid Information Security Channel  BRICS is the acronym for an association of five (BRISC) major emerging economies: Brazil, Russia, India, 3. Transition finance, Sustainable development and China and South Africa. In 2023, this grouping climate transition expanded to include Egypt, Ethiopia, Iran and the 4. BRICS Payments Task Force (BPTF) United Arab Emirates. The key objective of the 5. Fintech research group (Innovation Hub) BRICS group is to build South-South cooperation 6. Platform for the BRICS central banks' training and evolve a coordinated approach to address events & seminars common concerns of the developing countries, such as international taxation, climate financing, Joint Ministry of Finance and Central Bank issue reforms in the governance structure of international 1. Improvement of the International Monetary and financial institutions (IFIs) etc. Financial System 45Annual Report 2024-2025 The second BRICS FMCBG meeting in October Operator Joint Action Plan towards Mutual Recognition saw the adoption of a Joint Statement and a Report to of their Respective Authorized Economic Operator Leaders on the issue of local currencies, payment Programmes. instruments and platforms as was tasked by the Leaders d. Infrastructure and Investments in the Johannesburg II declaration of 20234 . The key Under Russia's Presidency in 2024, blended outcomes under the Russian Chairmanship in 2024 were finance was a key priority in the infrastructure investment as follows: workstream. The work this year aimed to enhance a. Improvement of International Monetary and understanding and develop effective approaches to Financial System financing, implementing and developing infrastructure to The Russian BRICS Chair focused on improving achieve sustainable economic growth in the BRICS the international monetary and financial system (IMFS) countries and bridge the infrastructure gap. The BRICS in order to make it more responsive to the needs of all Public-Private Partnership and Infrastructure Task Force countries. The key idea was that the IMFS needs to analysed best practices of blended finance to increase better meet the needs of developing countries and the attractiveness of investment and the interest of private adequately reflect their growing share in the global investors in infrastructure projects. The Task Force economy. The Chair prepared the BRICS Chairmanship prepared the Technical Report on Infrastructure Projects Research on Improvement of the International Monetary Blended Finance, which was endorsed by the FMCBGs and Financial System. The report was taken note of by through the Joint Statement in FMCBG meeting. the FMCBGs through the Joint Statement and the e. BRICS Think Tank Network for Finance FMCBGs appreciated the efforts of the Chair towards The BRICS Chair launched the work of the BRICS this work. Think Tank Network for Finance. An MoU was signed by the Think Tanks from BRICS member countries on the b. Practical Financial Cooperation Initiatives sidelines of the BRICS Meetings in Moscow in October The Chair made efforts to develop practical 2024. The Network is expected to contribute evidence- financial cooperation initiatives. The Chair was based intellectual support to the Finance Ministers and instrumental in developing a conceptual document on the Central Bank Governors' Meetings on various issues BRICS Cross-Border Payment Initiative (BCBPI), a under the Finance Track. voluntary and non-binding project, aimed at enhancing cooperation on cross-border payments among BRICS The BRICS XVI Summit took place in Kazan from countries. The Chair also made efforts to introduce October 22-24, 2024 and a Leaders Declaration was voluntary initiatives - BRICS Clear (to complement adopted5 . existing financial market infrastructure) and BRICS BRICS Presidency 2025 (Re)Insurance (to develop an independent reinsurance Brazil is expected to take over the Presidency of capacity). the BRICS in 2025 from Russia. c. Cooperation on Customs and Tax matters III. G24 In 2024, the BRICS Tax Workstreams identified i. The Intergovernmental Group of Twenty-Four on several key collaborative projects aimed at improving tax International Monetary Affairs and Development, or The administration and cooperation among member Group of 24 (G-24) was established in 1971 as a chapter countries. These included initiatives focused on the of the Group of 77 in order to help coordinate the positions modernization of VAT administration, the use of big data of developing countries on international monetary and to strengthen tax audit capabilities and improve public development finance issues, and to ensure that their services, the exchange of knowledge in the application interests are adequately represented in negotiations on of HR strategies and a client-centric approach in BRICS international monetary matters. In particular, the G-24 tax authorities. Further, the BRICS Heads of Tax focuses on issues on the agendas of the International Authorities Governance Framework was also adopted. Monetary and Financial Committee (IMFC) and the The Framework introduces new agendas, establishes Development Committee (DC) as well as in other relevant Working Groups, and creates a rotational secretariat to International fora. Though originally named after the enhance knowledge sharing and coordination across number of founding Member States, it now has 28 member nations. The BRICS Heads of Customs Members plus China, which has been a Special Invitee Administrations signed the BRICS Authorized Economic since 1981. 4 https://brics2023.gov.za/wp-content/uploads/2023/08/Jhb-II- 5https://cdn.brics-russia2024.ru/upload/docs/ Declaration-24-August-2023-1.pdf Kazan_Declaration_FINAL.pdf?1729693488349783 46Department of Economic Affairs I ii. The governing body of the G-24 meets twice a year, the 'Framework on Currency Swap Arrangement for preceding the Spring and Fall meetings of the SAARC Countries 2019-22.' The Framework on Currency International Monetary and Financial Committee and the Swap Arrangement for the SAARC countries has been Joint Development Committee of the World Bank and in place since 2012 to provide SAARC countries with a the International Monetary Fund (IMF). The plenary G- line of funding for short-term foreign exchange 24 meetings are addressed by the heads of the IMF and requirements. the World Bank Group as well as by senior officials of Under the new Framework, a separate INR SWAP the United Nations (UN) System. Issues are first Window of ?25000 crore is introduced in addition to the discussed by the Deputies and culminate at the Ministerial existing USD/Euro SWAP Window of USD 2 billion to level by the approval of a document that sets out the encourage drawals in INR with a view to give emphasis consensus view of member countries. The Ministerial on INR internationalization. During FY 2024-25, the facility document is released as a public Communiqué at a press was availed by Bhutan and Maldives. conference held at the end of the meetings. Decision making within the G-24 is by consensus. SAARC Development Fund: SAARC Development Fund (SDF), headquartered iii. The 112th G-24 Ministers and Governors Meeting in Thimphu, Bhutan, was established and inaugurated in was held in Washington DC on 21-22 October, 2024 on 2010 by the SAARC Member countries (Afghanistan, the margins of the IMF and WBG Annual Meetings. The Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and theme of the meeting was Bretton Woods System at 80: Sri Lanka) to promote the welfare of people of the SAARC Historical and Emerging Challenges and Options for region, to improve their quality of life and to accelerate Reform. economic growth, social progress and poverty alleviation IV. OECD in the SAARC region. The Fund serves as the umbrella i. The Organization for Economic Cooperation and financial institution for SAARC projects and programmes. Development (OECD), founded in 1961, is a global think It is aimed to contribute to regional cooperation and tank that works on economic and development issues. integration through project collaboration. The projects that Its members include several advanced economies and a the SDF aims to fund fall under three broad categories/ few emerging market economies. All OECD members windows namely, Social, Economic and Infrastructure. are signatories to the 1960 Convention on the OECD and In India, IER Division of Department of Economic Affairs, are committed to democracy and market economy. M/o Finance is the Counterpart Agency for all SDF related ii. Cooperation between India and the OECD covers a matters. diverse range of issues such as taxation and fiscal affairs, VII. BIMSTEC competition policy and financial education and literacy. The Bay of Bengal Initiative for Multi-Sectoral Technical OECD has also brought out the OECD Economic Surveys and Economic cooperation (BIMSTEC), a regional of India. Till date, 5 Surveys have been published with the organization, came into being on 6th June 1997 through last one being released on December 2019. During the the Bangkok Declaration. It comprises of seven Member year, IER Division coordinated on matters related to the States lying in the littoral and adjacent areas of the Bay OECD Fiscal Network, Economic Policy Committees, and of Bengal- Bangladesh, Bhutan, India, Nepal, Sri Lanka, various other OECD references from MEA. Myanmar and Thailand. IER Division of DEA, Ministry of V. Capacity Building Unit (CBU) of Department of Finance coordinates issues related to financial Economic Affairs (DEA) cooperation under the BIMSTEC Forum. The Capacity Building Unit of DEA was established VIII. ASEAN within the IER Division and assigned the responsibility of The Association of Southeast Asian Nations, or implementing Mission Karmayogi Bharat. This includes ASEAN, was established on 8 August 1967 in Bangkok, organizing trainings, webinars, seminars, and other Thailand, with the signing of the ASEAN Declaration programs focused on behavioral, functional, and domain (Bangkok Declaration) by the Founding Fathers of ASEAN: competencies for all DEA officers. Indonesia, Malaysia, Philippines, Singapore and Thailand. VI. SAARC & SDF: ASEAN currently has ten member states: Brunei Framework on Currency Swap Arrangement for Darussalam, Cambodia, Indonesia, Laos, Malaysia, SAARC Member Countries 2024-27. Myanmar (Burma), Philippines, Singapore, Thailand, The Union Cabinet approved the new 'Framework Vietnam. IER Division of DEA, Ministry of Finance on Currency Swap Arrangement for SAARC Countries coordinates issues related to financial cooperation under 2024-27' on June 19, 2024. The new Framework replaced ASEAN. 47Annual Report 2024-2025 10. Aid Accounts & Audit Division (AAAD) : 10.2 Performance/Achievements During the Financial year 2024-25 (as on 3oth November, 10.1.1 Aid Accounts and Audit Division (AA&AD) of the 2024) Department of Economic Affairs, Ministry of Finance is responsible for disbursement of Loans/Grants received from 10.2.1 Total of 1460 live/active loans/accounts are being Multilateral/Bilateral funding Agencies (MDBs/BAs), debt handled by Aid Accounts & Audit Division. Out of these, servicing of loans of MDBs/BAs and accounting of external 469 Loans/Grants accounts are in disbursement mode. assistance. Besides, AAAD is also responsible for Rest of the loans are live/active for debt servicing point preparation of the External Assistance Budget (both for of view. receipts and payments) for Government loans/credit/grants. 10.2.2 External receipts of Loans on Government 10.1.2 Further, AAAD is also responsible for maintaining Account during financial year 2024-25 (upto 30th loan records, publishing External Assistance Brochure on November, 2024) are `66,100 Crore. In addition to loan an Annual basis and Web-publication of Sovereign external receipts, a sum of `119 Crore has been received as Cash debt portfolio. Additionally, AAAD conducts audits of export Grant. promotion schemes authorizations run by the DGFT. 10.2.3 A comparative position of receipts and 10.1.3 Aid Accounts & Audit Division is one of the few repayment/payment in the current year as compared to IS0 9001-2015 certified account establishments in the previous financial year and upto 30th November, 2024 is Government of India. as under. ` in crore SI. Description 2023-24 2024-25 Projections as per RE No. (as on 31st (as on 30th (For the period from March, 2024) November, 2024) 12/2024 to 03/2025) 1 Receipts (Loans and Grants) 1,09,787 66219 42619 2 Payments (Principal and Interest) 76,935 57859 32077 3. Net Transfer (1-2) 32,852 8,360 10542 10.3 Audit of Import Authorization & DGFT's 10.3.4 The primary focus of audits by AA&AD is to Export Promotion Schemes assess the realisation of foreign exchange by advance 10.3.1 In line with the recommendations of the Shri authorization holders and ensure compliance with export V.K.R.V. Rao Committee, a Departmental Audit Branch obligations, in accordance with the terms and conditions was established in DEA in 1963 under the Chief Auditor of the respective schemes. of Foreign Exchange to conduct audits of various import authorization issued under Export Promotion Schemes 10.3.5 AA&AD carries out audit of Import authorization on a sample basis. for promotion of Export of goods issued by Offices of the 10.3.2 Over the time, this responsibility was transferred Director General of Foreign Trade located at to Aid Accounts & Audit Division, with an expanded 26 cities across the country. mandate to cover 100% of Advance Authorization. 10.3.6 As a result of settlements, a sum of 10.3.3 Currently, the AA&AD carries out 100% audit of `20,03,41,323/- has been recovered from various firms Advance Authorization and Export Promotion Capital till 30th November, 2024. Apart from this, an amount of Goods (EPCG) cases, while conducting sample audits (Ranging from 10% to 50%) for other Export Promotion `5,89,66,187/- has been adjudicated against various firms Schemes. up to 30th November, 2024. 48Department of Economic Affairs I 11. Administration Division (i) An RTI Section is in operation in DEA to facilitate the applicants with the reply/information to their 11.1 Functions RTI applications under the RTI Act, 2005 through 11.1.1 Administration Division is responsible for 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 2024, as per the proactive disclosure of Harassment of Women Employees etc. Administration information guidelines under Section 4 of the RTI Division is also responsible for framing of Recruitment Act, 2005, information was uploaded on the Rules for ex-Cadre posts and recruitment in such posts in Department of Economic Affairs. Department's website (www.dea.gov.in). It also contains the details of the Department's functions 11.2 Staff Strength along with its functionaries etc. as required under 11.2.1 The staff strength in Department of Economic section 4(1)(b) of the RTI Act, 2005. Affairs and its attached/sub-ordinate offices/statutory (iii) Deputy Secretary/ Under Secretary/ Deputy bodies along with the representation of Scheduled Castes Director/ Assistant Director, Sr. Accounts Officer, (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs) and persons with Disabilities therein is given in Section Officer and Economic Officer level Annexure I & II respectively. officers of the Department have been designated as Central Public Information Officers (CPIOs) 11.3 Complaints Committee on Sexual under section 5(i) of the RTI Act, 2005 in respect Harassment of Women Employees of subject(s) being handled by them. 11.3.1 A Complaints Committee in Department of Economic Affairs for considering complaints of sexual (iv) Deputy Secretaries/ Joint Director/ Director level harassment of women employees has been modified officers of the Department have been designated (replacing one member) vide Office Order No.: A-60011/ as First Appellate Authorities in terms of Section 1/2022- Ad.III. dated 19.09.2024. 19(1) of the Act, 2005, to deal with the Appeals preferred by applicants who aggrieved/not 11.4 Training of Staff Members satisfied by the information/reply furnished by the 11.4.1 Department of Economic Affairs deputes its Central Public Information Officers(CPIOs). officials for training to ISTM and other institutes to increase their efficiency and bring out improvement in (v) The list of CPIOs and First Appellate Authorities the quality of their work. During the period 01.01.2024 to is updated and uploaded from time to time on 31.12.2024 a total of 106 officials were nominated for the website of DEA for the information of General the trainings of different levels, which were conducted by Public. The RTI Cell is functioning at Gate No. 8 ISTM, New Delhi and other government institutes. outside the North Block to receive the RTI applications. The applications received are 11.5 Redressal Of Public Grievances: further forwarded to the CPIOs/ Public Authorities 11.5.1 A Centralized Public Grievances Redressal and concerned. Monitoring System (CPGRAM) is operational within the Government, which attends to all the Public Grievances (vi) The RTI application can be filed through online related to various Ministries/Departments. During the year portal www.rtionline.gov.in. The RTI applicants 2024, 1759 fresh public grievance cases were received can see the status of their application as well as in the Department besides 597 brought forward from the the reply/information furnished by the CPIO previous year. Out of these 2356 cases, 2100 cases were through the website. These all processes have disposed off during the year. Further, 288 Appeals against resulted in significant reduction in processing of the disposal of grievances were received and 276 Appeals RTI applications. were disposed off. Adviser (Admin) is functioning as the (vii) During the year 2024 from January 1, 2024 to Nodal Officer for Public Grievances in Department of October 29, 2024, total 2395 (Two Thousand Economic Affairs. Three Hundred Ninety Five) RTI applications and 11.6 Right To Information Act, 2005 52 (Fifty Two) first appeals, were received in the 11.6.1 In order to facilitate dissemination of Department. An amount of `1620/- (Rupees One information under the provisions of the Right to Thousand Six Hundred Twenty only) was Information Act, 2005, Department of Economic Affairs received as RTI fees and Documents fee under has taken the following actions : the RTI Act. 49Annual Report 2024-2025 11.7 Use of Hindi in Official work released by the Department of Official Language, Ministry 11.7.1 During the year 2024-25 the progress of of Home Affairs was circulated to all the divisions/sections implementation of the Official Language Policy is being of the Ministry including subordinate offices and its online continuously reviewed. All documents were presented link was placed on the dashboard in the e-Office for bilingually in the Parliament. Official Language Act, 1963, information of the officers/employees of the Ministry so Official Language Rules, 1976 and all other instructions that the targets fixed by the Department of Official issued by the Department of Official Language were duly Language could be achieved. followed. During the year under report, several steps were (vi) Hindi Workshop taken in the Department to increase the use of Hindi in In the Department a workshop was organized in official work. The activities related to Official Language the department on 05.05.2024 on the topic of "Use of e- undertaken in the Department during the year under tools to promote working in Hindi for the official purpose review are as follows: with technology support" in which senior officers and employees of the Department participated and were (i) Organization of Hindi Fortnight benefitted. Like other years, this year also "Hindi Fortnight" was organized in the Department of Economic Affairs (vii) Translation Work during September, 2024. While issuing a message on the In addition to the implementation, of the Official occasion of "Hindi Diwas" on September 14, 2024, the Language Policy of the Union extensive work related to Hon'ble Minister of State for Finance appealed to the translation is carried out in the Hindi Section of the officers and officials of the Ministry of Finance and offices Department of Economic Affairs. Many important under its control to do official work in Hindi. In order to documents are involved in this work. Translation of create a conducive environment for promoting the use of government documents as specified in the Official Hindi in the Department, various competitions were Language Act, 1963 and the rules made thereunder were conducted in which officers/employees of various Divisions/ also successfully completed by the Hindi Section during Sections of the Ministry participated with great enthusiasm. the year 2024-25. These include all budget related documents, annual reports, agreements made with foreign (ii) Official Language Inspection governments and international agencies, Cabinet Notes, Inspection of subordinate offices: In order to parliamentary questions-answers/assurances, achieve the target set for the inspection of subordinate notifications, Standing Committee related work, action offices in the Annual Programme of the Department of taken reports, monthly summary for the Cabinet Official Language, a virtual inspection of a subordinate Secretariat, Government letters and foreign financing office was conducted by the Department during April, 2024 reports. All these tasks include translation, typing and to November, 2024. In this inspection, senior officers and vetting as well as proof reading. Apart from this, after the officials of the Department led by Director (OL), constitution of 18th Lok Sabha, translation work related to participated and reviewed the status of use of Official full Union Budget was also completed in July, 2024. Language Hindi. Apart from this, Third Sub-committee of the Committee of Parliament on Official Language 11.8 Finance Library & Publication Section conducted inspection related to Official Language of 11.8.1 Finance Library & Publication Section was Government of India Mint, Hyderabad. established in 1945. Finance Library functions as the Central Research and Reference Library in the Ministry (iii) Dispatch of Quarterly Progress Report and caters to the needs of Officials of all the Departments Quarterly progress reports were collected from of the Ministry of Finance, Ad-hoc Committees and all the Sections/Divisions of the Department. Hindi Commissions set from time to time and research scholars correspondence of the Department of Economic Affairs from the various Universities in India as well as abroad. remained about 71.14%. The consolidated Quarterly Progress Reports and Annual Assessment Report were 11.8.2 This Library also serves as the Publications sent to the Department of Official Language, Ministry of Section of the Ministry, coordinating in the procurement Home Affairs in due time. and distribution of official documents with the various institutions/ individuals on demand in India and abroad. (iv) Meetings of the Official Language Implementation Committee 11.8.3 A Publication Cell vide O.M. No.F.1 (1) - Ly/59 To review the status of Official Language dated the 2nd April, 1959 was created and later integrated implementation in the Department, meeting of the Official with the Library forming the Finance Library and Language Implementation Committee was organized Publication Section. during the year 2024-25. Heads of the Department of 11.8.4 Finance Library has been categorized as Grade various sections participated in this meeting. Ill Library on the basis of Department of Expenditure's (v) Circulation of Annual Programme O.M. No. 19(1)/IC/85 dated 24.07.1990. All the posts in The Annual Programme for the year 2024-25 the Library are ex cadre posts. 50Department of Economic Affairs I (i) Collection 12. Bilateral Cooperation & Sustainable Finance Library has specialized collection of Finance Division around two lakh documents on Economic and Financial matters including rare collection of books i.e Pre- 12.1 Bilateral Cooperation & Sustainable Finance Independence time Budgets & Gazettes, Debates (Lok Division deals with the following functions: Sabha & Rajha Sabha), Budget speech, Acts of a. Bilateral Official Development Assistance Parliaments and other Ministry of Finance Publications. Policy: Bilateral Development Assistance from all G-8 countries, namely, USA, UK, Finance Library subscribing important periodicals/ Japan, Germany, France, Italy, Canada and newspapers annually and databases like Agriwatch, CMIE, Russian Federation as well as the European Jus Mundi, Bloomberg, Grammarly and access to Union and Republic of South Korea and the collection of e-journals through JSTOR is also available. policy relating to it. (ii) Services b. Concessional Credit extended by Finance Library provides different kinds of services Government of India to partner countries viz. lending, interlibrary loan, consultation, reprographic, under Indian Development and Economic circulation of newspapers and magazines, reference Assistance Scheme (IDEAS) through service, current awareness service through "WEEKLY Lines of Credit and Concessional Finance BULLETIN" as well as providing services through e-mail for strategic overseas infrastructure and also extended the services of e-governance. projects. The Finance Library also undertakes the work of c. Economic Policy Dialogues and Forums: distribution of publications of Ministry of Finance and BC Division deals with following dialogues/ Reserve Bank of India to State Governments, Foreign meetings- Governments and renowned institutions in India as well  India-UK Economic and Financial as abroad. A useful links is also provided on intranet by Dialogue the Library which helps the readers in search and download full text of national and international reports and data.  India-US Economic and Financial Partnership (iii) Publications Finance Library brings out two (print + online)  Indo-French Bilateral Dialogue on publications i.e. "Weekly Bulletin" and "Current contents. Economic and Financial Issues (iv) Digital Records  India-Korean Finance Minister's Meeting Indian Official Documents relating to Economic  India- Japan Strategic Dialogue on and Finance Subject (Center and State since Economic Issues independence) and Ministry of Finance Gazette Notifications published in the Pt. 2 Sec. 3 Sub-section (i)  India-Japan Finance Dialogue (ordinary) for the year 1955 to 1990 has been digitized.  India- Switzerland Financial Dialogue So far around 02 TB Data has been digitized and available  India-EU Macro-economic Dialogue in digital format.  India-China Financial Dialogue (v) Computerisation The Library uses KOHA Library package for  India- Australia Economic Policy database management, retrieval, Library automation and Dialogue other in-house jobs. The internet facility is also available  India-New Zealand Economic Policy in the Library through which information is provided to Dialogue the Officers of Ministry of Finance.  India-German Finance Ministry Senior (vi) OTHER WORKS Officers Meeting i. Modernization and infrastructure improvement was undertaken by the Library.  International Platform on Sustainable Finance ii. The work of reimbursement of newspapers and magazines of DEA is also undertaken  India-Korea Working Group Meeting by the Finance Library. d. UNDP and Sustainable Finance iii. This Library also serves specifically as the Publications Section of the Ministry; e. Short-term Foreign Training Courses: The coordinating in the procurement and Division is the focal point for administering distribution of official documents with the all short-term foreign training courses of the various institutions/ individuals on demand duration up to four weeks offered by various in India and abroad. international agencies. 51Annual Report 2024-2025 f. Foreign Training Courses/Programmes ii) Sectors: A. Bilateral Official Development Assistance a) Transport sector, including projects using Policy information and communication technology (ICT) and road projects with 12.2 India has been accepting external financing from slope protection measures (potential line bilateral partners in the form of loans, grants and technical ministries could include Ministry of Road assistance for development of infrastructure, social sector Transport and Highways, Ministry of and for enhancement of knowledge/skills of Indian Housing & Urban Affairs, etc.) nationals at both Centre and States level. As per the guidelines issued by this Department in 2005, bilateral b) Power sector, including small-scale hydro development assistance can be accepted from the then power projects and solar power projects G-8 countries, namely USA, UK, Japan, Germany, France, (potential line ministries could include Italy, Canada and the Russian Federation as well as from Ministry of Power, Ministry of New and the European Commission. European Union countries Renewable Energy, etc.) outside the G-8 can also provide bilateral development 12.3.2.2 There are four (4) ongoing Grant-in-Aid projects assistance to India, provided they commit a minimum viz. (a) The Project for Implementation of Advanced annual development assistance of USD 25 million. A Information and Management System in Core Bengaluru revised set of guidelines on Official Development (b) The Economic and Social Development Programme Assistance for Development Cooperation with bilateral (Provision of Medical Equipment) (c) Improvement of partners were issued in December, 2015. After issuance Power Supply in Andaman and Nicobar Islands and (d) of revised guidelines, the Republic of South Korea has Human Resource Development Scholarship (JDS). been recognized as bilateral partner country for accepting Official Development Assistance from them. 12.3.3 Technical Cooperation Programme 12.3.3.1 Technical Cooperation aims at transfer of 12.3 Bilateral Development Cooperation with technology and knowledge in a bid to develop and improve Japan human resources and thus contribute to the Socio-Economic 12.3.1 Japan-Official Development Assistance: Development of India. The Technical Cooperation covers a 12.3.1.1 Japan has been extending Official Development broad spectrum of fields ranging from basic human needs Assistance (ODA) to India since 1958. Japanese ODA in to Agriculture and Industrial Development. the form of loan assistance, grant aid and technical 12.3.3.2 The main components of Technical Cooperation assistance to India is received through Japan International are (i) Technical Cooperation Projects, (ii) Technical Cooperation Agency (JICA). Japan is the largest bilateral Cooperation by Experts, (iii) Technical Cooperation by donor to India. Training, (iv) Technical Cooperation by Development 12.3.1.2 Government of Japan has committed JPY Planning. 478.342 billion (`27118.74 crore approx) for 12 project 12.3.3.3 There are 19 ongoing projects under Technical proposals to India from January 1, 2024 to November Cooperation Programme. 30, 2024. As on November 30, 2024, 65 ODA loan projects are under implementation with Japanese 12.3.4 JOCV Programme assistance. The loan amount committed for these projects 12.3.4.1 JICA's volunteer programs, such as Japan is JPY 3655.580 billion (`2.21 lakh crore approx.). The Overseas Cooperation Volunteer (JOCV), support a wide cumulative commitment of ODA loan to India has reached range of local activities by Japanese citizens who intend JPY 8.3 trillion on commitment basis till November 30, to cooperate in the economic and social development as 2024. well as in the reconstruction of emerging countries. 12.3.1.3 The ODA loan disbursement to India from Through these cooperation activities, participating January 1, 2024 to November 30, 2024 was JPY 394.482 volunteers can, not only contribute to the development billion (`28182.52 crore approx.). of partner countries but also gain valuable experience in terms of international goodwill, mutual understanding and 12.3.2 Grant in Aid an expansion in their international perspectives. 12.3.2.1 The Government of Japan provides Grant in Aid to India under the following sectors and criteria: 12.3.4.2 During 1st January 2024 to 30th November i) Criteria: 2024, 06 proposals were posed to Embassy of Japan and No-objection to 13 Volunteers were issued. a) Development impacts; 12.3.5 JICA Partnership Programme b) Utilization of Japanese technology/know- how and likelihood of its dissemination to 12.3.5.1 Recognizing the growing importance of NGOs other areas. in international cooperation, the JICA Partnership 52Department of Economic Affairs I Programme (JPP) was introduced in 2002. JPP is a Financial Assistance is provided as Reduced Interest technical cooperation program implemented by JICA to Loan (EURIBOR-based loan) as well as Financing grants. contribute to the social and economic development of The technical assistance is provided in the form of grant developing countries at the grass-roots level, in and services by project experts. collaboration with partners in Japan, such as NGOs, 12.4.3 In May, 2022, Hon'ble Prime Minister of India universities, local governments and public interest and German Chancellor Mr Olaf Scholz Pursuant signed corporations while applying for JPP, Indian NGOs are the Joint Declaration of Intent on Green and Sustainable advised to seek a Japanese partner to take part in the Development (GSDP). Under GSDP, Germany has scheme. This has two components: committed to make Euro 10 billion of new and additional i Japanese NGO / Institution / Local Government commitments till 2030 for supporting India's climate and through JICA will support Indian organization with sustainable development goals. Accordingly, till date Japanese expert personnel, equipment provision Germany has committed Euro 3.24 billion, including Euro and Financial support through FCRA route; 1.1 billion committed during Indo-German Annual Negotiation Meeting held in September, 2024. ii. Japanese NGO / Institution / Local Government through JICA will provide training of Indian 12.4.4 Under bilateral development cooperation personnel in Japan. programme two annual meetings i.e. Indo-German Annual Consultations and Indo-German Annual 12.3.6 Grassroots Funding Negotiations are held, generally during 2nd quarter and 12.3.6.1 The Government of Japan also provides small 4th quarter of the year respectively. In the Annual assistance to Indian NGOs under its Grassroots Funding Consultations, apart from the policy issues, the discussion Programme through FCRA route on receipt of no objection on ongoing projects and new projects and review of from DEA. ongoing projects are made. In Annual Negotiations, the 12.3.7 Green Aid Plan Government of Germany makes commitments of funds 12.3.7.1 The Government of Japan (Ministry of Economy, for new projects as well as for additional funding for Trade and Industry) provides technical assistance under ongoing projects. On an average Germany makes an annual commitment of Euro 1 billion. The Indo-German Green Aid Plan through agencies like New Energy and Annual Negotiation meeting 2024 was held in New Delhi Industrial Development Organization (NEDO), an on 20th September 2024. The volume of funds committed organization of METI. The areas of cooperation are by the German side for Technical and Financial prevention of water pollution, air pollution, treatment of Cooperation projects and programmes in 2024 amounts wastes and recycling and energy conservation and to EUR 1098.39 million. alternative energy source. Model projects are carried out by NEDO on the basis of the MoU signed by NEDO with 12.4.5 At present, there are 53 ongoing projects Department of Economic Affairs, the concerned line ministry receiving external financing/loans from KFW aggregating and the implementing agency. Euro 7.56 billion from Germany. The cumulative volume of commitment made by the Germany for bilateral 12.4 Bilateral Development Cooperation with Technical and Financial Cooperation till 2024 amounts Germany to EUR 25.07 billion. 12.4.1 Germany, through their Ministry for Economic Cooperation & Development (BMZ), has been providing 12.5 Bilateral Development Cooperation with AFD, both financial and technical assistance to India since France 1958. In 2008, the German Ministry for the Environment, 12.5.1 The Government of France has been extending development assistance to India since 1968. Nature Conservation and Nuclear Safety (BMUB) also initiated assistance under German Government's 12.5.2 In 2006, Government of France proposed to 'International Climate Protection Initiative (IKI)', which is provide untied development assistance to India through an additional instrument for the assistance of the German the French Agency for Development (AFD). In this regard, Government over and above and without undermining an inter-governmental Agreement was signed between the existing sources of Official Development Assistance. the two Governments on 25.01.2008 during the State visit Priority areas of Cooperation includes: Energy, of French President Mr. Nicholas Sarkozy to India. Sustainable Urban Development as well as Environment 12.5.3 AFD has been entrusted with a strategic mandate and Management of Natural Resources. tailored to the Indian Government's priorities. It is 12.4.2 Germany implements its financial assistance implemented through three main focuses for cooperation: programmes through KfW, the German Government's Promote sustainable and integrated urban development; Development Bank. The technical assistance Encourage energy efficiency and renewable energy programmes are implemented through GIZ (earlier GTZ) development; Conserve the country's biodiversity and - a fully-owned corporation of German Government. natural resources. 53Annual Report 2024-2025 12.5.4 Since 2008, total net cumulated financing by AFD Cooperation. This agreement was signed between India amounts to EUR 2.5 billion. This financing was provided and EIB on 25th November 1993 by the Charge d' Affairs through ODA- compliant loans, on a sovereign and non- of India at Brussels. The Framework Agreement was sovereign basis. On an average AFD makes annual initially valid for a period of three years and later it was commitment of Euro 250 million. Major areas of ongoing extended sine die vide amendment dated 24th November cooperation are in the field of: 1998. i) Cooperation in the field of public transport 12.6.2.3 During the year, three Finance Contracts sector; aggregating Euro 640 million loans were signed between ii) Smart City Mission DEA and EIB for the following metro rail projects: iii) Water, Environment and Biodiversity sector. a. Bangalore Suburban Railway Project (EUR 300 million) 12.5.5 At present, there are 12 ongoing loans for Euro 1.006 billion with financial assistance from AFD. b. Nagpur Metro Rai Project Phase II (EUR 240 million) 12.5.6 French Government also provides technical assistance in the form of FASEP facility Scheme. FASEP c. Pune Metro Rail Project (EUR 100 million) facility is managed by the Treasury and Economic Policy 12.7 Bilateral Development Cooperation with the General Directorate of the French Ministry of Economy, USA and Canada Finance and Industry. Under this facility, grants are provided to finance technical cooperation in the area of 12.7.1 U.S. Agency for International Development (USAID) infrastructure projects (water, sanitation, solid waste, 12.7.1.1 The United States of America's bilateral environment, transport, energy). development assistance to India started in 1951 and it is 12.6 Development Cooperation between India and mainly administered through USAID. Since its European Union commencement, USAID has provided economic 12.6.1 The European Union (EU) provides development assistance of over US $ 17 billion to India in various assistance to India in the form of Grants. The priority sectors for over 555 projects. Currently, seven projects areas include environment, public health and education. worth a total budget of USD 1 billion (approx.) are being Since 2014, the financial component of development implemented by USAID in partnership with GOI. For the assistance from EU was discontinued, however technical current FY, an obligation of total USD 80.15 million cooperation and exchange of best practices remains (approx.) has been made by USAID under the seven active in three lines (i) in areas of mutual interest (ii) in projects, as mentioned below: areas relevant to the Sustainable Development Goals with i. Partnership Agreement for Agri. & Food civil society organizations and (iii) at a regional level to Security Program; address global challenges. ii. Partnership Agreement for Sustainable Forests 12.6.2 External Financing in India by European and Climate Adaptation Program; Investment Bank (EIB) iii. Partnership Agreement for Water, Sanitation 12.6.2.1 The European Investment bank is the European and Hygiene (WASH); Union's financing institution which was established in iv. Partnership Agreement for Renewable Energy 1958 under the treaty of Rome (1957) to provide financing Technology Commercialization & Innovation; for capital investment. The members of the EIB are the v. Partnership Agreement for Health Project; member States of the European Union, who have all subscribed to the Bank's capital. Outside the European vi. Disaster Management Support Project; and Union, EIB financing operations are conducted principally vii. Partnership Agreement for the Energy from the Bank's own resource but also, under mandate, Efficiency Technology Commercialization and from Union or Member States' budgetary resources. Innovation Project. Under these arrangements, the EIB's funds are utilized 12.7.2 United States Trade and Development Agency to finance investments in countries signatory to (USTDA) Cooperation Agreement with the EU. 12.7.2.1 USTDA promotes economic growth in emerging 12.6.2.2 EIB's activities in India is anchored by the Joint economies by facilitating the participation of U.S. Action Plan (JAP) of the Strategic Partnership between businesses in the planning and execution of priority the EU and India. EIB aims to increase its lending development projects in host countries. Since 1992, the activities focusing mainly on environmental sustainability U.S. Trade and Development Agency has supported over and large infrastructure project through FDI, transfer of 100 priority development projects in India with public and technology and know-how. EIB investments in India are private sector sponsor. During the current FY, USTDA is governed by the Framework Agreement for Financial supporting technical cooperation/ assistance worth USD 54Department of Economic Affairs I 1.25 million (approx.) for a project for the further (EDCF) Agreement was signed between the two development in master planning of Integrated Aviation Governments for US$ 1 billion Official Development Hub in Hisar. Assistance (ODA) to India. 12.7.3 International Development Research Centre 12.9.2 During FY 2023-24, one loan agreement (IDRC) "Strengthening Multi-Modal and Integrated Logistics 12.7.3.1 The Canadian bilateral development assistance Ecosystem Program (subprogram 1)" for ODA loan of to India is received through IDRC - an entity created and 100 USD million has been signed between DEA and funded by the Parliament of Canada. IDRC supports Korea EXIM Bank (KEXIM) research activities in developing countries to promote B. Concessional Credit extended by growth, reduce poverty, and drive large-scale positive Government of India under Indian change. In India, IDRC extends grant assistance to various Development and Economic Assistance Govt. and Non-Govt. organizations for research projects Scheme (IDEAS). in the field of agriculture, health and family welfare, etc. During the current FY, IDRC provided grant aggregating 12.10.1 Lines of Credit (LoCs) form an important Canadian $ 3.1 million to support a research project to component of India's diplomatic strategy and have been primarily explore climate adaptation and resilience in very useful in generating goodwill and building long term tropical drylands. partnerships. GoI extends Lines of Credit to Developing 12.8 Bilateral Development Cooperation with the African and Non-African Countries through Indian United Kingdom Development and Economic Assistance Scheme (IDEAS). With the approval of the Cabinet, the Indian 12.8.1 The United Kingdom (UK) has been providing Development and Economic Assistance Scheme (IDEAS) development assistance to India since 1958. have been revamped and continued till 31 March, 2026, Development assistance from UK was received mainly or till further review, whichever is earlier. for achieving the Millennium Development Goal (MDG) in the areas of health, education, administrative reforms, 12.10.2 LoCs are being operated through Export-Import slum development etc. The UK Government announced Bank of India, which raises resources from the market on 9th November 2012 that their financial grant aid to and provides LoCs to recipient Government at India will end from 2013 onwards and all new development concessional rates. GoI backs the LoCs through a Deed cooperation programmes will be either Technical of Guarantee in favour of the lending bank to guard against Assistance (TA) programmes focused on sharing skills any default by the borrowing Government in payment of and expertise, or investments in private sector projects interest and principal to the lending bank. GoI also extends focused on helping the poor. interest Equalization Support (IES) to the lending bank for 12.8.2 The assistance from the UK, through its Foreign, enabling it to lend on concessional terms. Commonwealth and Development Office (FCDO), 12.10.3 As on November 30, 2024, 324 LoCs have erstwhile Department for International Development been extended to 68 countries for an amount of USD (DFID), flows to mutually agreed government projects 31.16 billion. Out of this, value of contracts covered and programmes in the form of investment and technical under the LoC by Exim Bank is USD 15.74 bn and assistance. FCDO also provides assistance through disbursement made are USD12.53 bn. During FY 2024- multilateral agencies, namely World Bank, ADB and 25 ( 1st April 2024 to 30th November, 2024), 2 LoCs UNICEF as well as through civil society programmes. worth USD 300 mn have been extended/ signed with Initiative under the cooperation include launching of Green developing countries. Growth Equity Fund (GGEF) by National Investment and Infrastructure Fund (NIIF) in collaboration with FCDO in C. Economic Dialogues and Forums 2018. 12.11 During the year 2024-25, following dialogues/ meetings were held : 12.9 Bilateral Development cooperation with Republic of Korea 12.11.1 India-US Economic & Financial Partnership (EFP) 12.9.1 In the Joint Statement for Special Partnership 12.11.1.1 There is a mechanism of EFP ministerial signed during the Prime Minister's visit to Republic of Korea (RoK) during May 18-19, 2015, it was agreed to meetings between India and U.S.A. in place since 2010 upgrade the bilateral relationship between the two for strengthening economic and financial engagement countries to a 'Special Strategic Partnership' and to between the two countries. So far, 9 ministerial-level EFP expand it into a wide range of areas. Accordingly, RoK meetings have been held between both sides. As a follow- was accepted as bilateral partner for development up to the deliberations under 9th EFP meeting, three sub- cooperation during October, 2016. In the 5th India-Korea ministerial level meetings have been held to exchange Finance Minsters' Meeting held on June 14, 2017 in updates and take forward the deliberations from the 9th Seoul, an Economic Development Cooperation Fund India-USA EFP. 55Annual Report 2024-2025 12.11.1.2 The 3rd EFP review meeting was held on 22 by Ms. Judith Hermes, Head of Directorate-General for January 2024 virtually. The Indian MoF delegation was European Policy, International Financial Policy. The led by Dr. V. Anantha Nageswaran, Chief Economic meeting facilitated discussion and exchange of views in Adviser (CEA) and the U.S. Treasury delegation was led areas of Current Economic Situation and Fiscal Outlook, by Mr. Brent Neiman, Assistant Secretary for International International Debt and Multilateral Development Bank Finance (UST AS). The representatives from RBI, IFSCA, Reforms, Digital Public Infrastructure, Unified Payments SEBI and Embassy of India, senior officials from the U.S. Interface (UPI). The meeting fostered rich exchange of Treasury and U.S. Federal Reserve were also present in insights on key fiscal and structured reforms and platform the meeting. for enhancing India-Germany Economic Cooperation. 12.11.1.3 During the meetings, both sides exchanged 12.11.5 India-Japan Finance Dialogue: updates and discussed further cooperation on areas of 12.11.5.1 The 2nd India-Japan Finance Dialogue was held economic and financial issues under the ambit of EFP on 6th September, 2024 in Tokyo under the co- framework. Broadly, the discussions covered India-U.S.A. chairmanship of Secretary, Department of Economic macroeconomic landscape, integration and innovation in Affairs, Ministry of Finance and Vice Minister of Finance financial services, cross-border data and payments and for International Affairs, Japan. Both sides exchanged opportunities for UPI interlinkages, collaboration on views on the macroeconomic situation, financial system, mobilizing resources for climate finance, and views on financial digitalization and investment environment and global debt landscape. agreed to continue discussions for further promoting financial cooperation & strengthening bilateral relations and 12.11.2 India-EU Macroeconomic Dialogue: agreed to explore holding the next round of the Dialogue 12.11.2.1 The 12th India-EU Macroeconomic dialogue in New Delhi. was held on 20.02.2024 virtually through video conferencing. Both sides discussed topics of mutual 12.11.6 India-UK Dialogue areas of interest which included macroeconomy, climate 12.11.6.1 India-UK Economic Financial Dialogue change, green and digital transitions and priorities for the 12.11.6.1.1 The 12th round of ministerial India-UK EFD G20 Brazilian Presidency. The Indian delegation was led was held on 11th September 2023 in New Delhi. The by Shri Ajay Seth, Secretary, Economic Affairs and Dr. V. EFD was co-chaired by Smt. Nirmala Sitharaman, Union Anantha Nageswaran, Chief Economic Adviser, DEA and Minister for Finance and Corporate Affairs and Rt Hon the EU delegation was led by Ms. Elena Flores, Deputy Mr. Jeremy Hunt, MP, Chancellor of the Exchequer. The Director General, Economic & Financial Affairs (ECFIN), dialogue focused on enhancing bilateral economic and European Commission. The deliberations fostered rich financial ties, mutual cooperation on macroeconomic and exchange of insights on key fiscal and structured reforms multilateral issues, as well as, opportunities for and avenues for enhancing India-EU macroeconomic enhancement of knowledge exchange, and cooperation. Cooperation. The India-UK Infrastructure Finance Bridge, a 12.11.3 India-Switzerland Financial Dialogue collaborative initiative to leverage expertise and 12.11.3.1 The 6th India-Switzerland Financial Dialogue investment in support of India's National Infrastructure was held on 20th March 2024 through virtual platform. Pipeline, was also announced during the Dialogue. The The Indian delegation was led by Shri Ajay Seth, Dialogue concluded with the adoption of the Joint Secretary, Department of Economic Affairs and the Statement by Hon'ble Finance Minister of India and Switzerland delegation was led by Ms. Daniella Stoffel, Chancellor of Exchequer of United Kingdom. The next State Secretary for International Finance. The dialogue round of the EFD is being scheduled to be held in the facilitated discussions and exchange of views in areas first quarter of 2025. of mutual interest such as investments, infrastructure 12.11.6.2 India- U.K. Financial Markets Dialogue financing, Digital Financial Services Collaboration & 12.11.6.2.1 The third meeting of India-UK Financial Innovation and exploring promising opportunities for the Markets Dialogue was hosted by Department of Indian and Swiss economies. The dialogue was also Economic Affairs, Ministry of Finance in GIFT City, Gujarat participated by representatives from regulators such as on 12 December 2024 in hybrid mode. Participants from SEBI, RBI and IFSCA. both India and UK touched upon reforms in respective 12.11.4 India-Germany Senior Officers Meeting financial services sectors including capital markets, 12.11.4.1 The 15th India-Germany Senior Officers insurance & reinsurance, pensions, FinTech, sustainable Meeting (IGSOM) was held on 30th July 2024 through finance and International Financial Services Centre. hybrid mode. The Indian Delegation was led by Opportunities for inter-regulatory cooperation and private Smt. Manisha Sinha, Additional Secretary, Department sector collaboration to increase bilateral trade and of Economic Affairs and the German Delegation was led investment in financial services was also discussed. 56Department of Economic Affairs I D. United Nations finance regulatory measures for exchange and dissemination of information, promoting best practices, 12.12 United Nations Development Programme compare different initiative and identify barriers and (UNDP) opportunities for sustainable finance. The objective is to 12.12.1 India's annual contribution to the UNDP is US scale up the mobilization of private capital towards $ 4.5 million for the year 2024, which is one of the highest environmentally sustainable investments. among developing countries. The Country Programme Document (CPD) of the UNDP is guided by UNDP 12.16 India UK Sustainable Finance Forum Strategic Plan & UN Sustainable Development 12.16.1 At the 10th India-UK Economic and Financial Cooperation Framework (UNSDCF). Three programmatic Dialogue in 2020, India and UK agreed to establish a priority areas under CPD (2023-27) are: (a) Strong, bilateral Sustainable Finance Forum to drive forward accountable, and evidence-led institutions for accelerated deeper cooperation between the UK and India on achievement of SDGs; (b) Enhanced economic sustainable finance. Accordingly, the Forum was setup opportunities and social protection to reduce inequality - with members from finance ministries/treasury and other with a focus on the marginalized; (c) Climate Smart important stakeholders from both sides. Representatives Solutions, Sustainable Ecosystems and Resilient from India include those from MNRE, MOEFCC, M/o Development for reduced vulnerability. In the financial Power, RBI, SEBI and Co-Chair (from India) in the UK- year 2024-25, 11 projects with UNDP as implementing India Sustainable Finance Working Group . agency, were approved by Local Project Appraisal 12.17 Climate Finance Leadership Initiative (CFLI) Committee (LPAC) of DEA as of November 2024. India 12.13 United Nations Office for Project Services 12.17.1 The Climate Finance Leadership Initiative (CFLI) (UNOPS) India partnership was launched at the 11th India-UK Economic and Financial Dialogue held on 2nd September 12.13.1 United Nations Office for Project Services 2021. CFLI is a group of leading financial institutions led (UNOPS) is an agency of the United Nations which by UN Special Envoy for Climate Ambition and Solutions, provides infrastructure, procurement and project Mr Michael Bloomberg. CFLI India aims to work with management services and support to Governments, the financial institutions, corporates, and existing sustainable other United Nations agencies, and partners. In FY 2024- finance initiatives to accelerate efforts to mobilise capital 25, one project which engaged UNOPS as an into India for sustainable infrastructure projects in specific implementing agency was approved by the Project low-carbon sectors. N. Chandrasekaran, Chairman, Tata Approval and Monitoring Committee (PAMC) of DEA as Sons and Shemara Wikramanayake, Managing Director of November 2024. and Chief Executive Officer, Macquarie Group are co- E. Sustainable Finance chairs of CFLI India. 12.14 Global Environment Facility (GEF) 12.17.2 Significant developments/policy decisions 12.14.1 India is a founder member of Global taken during the year for the development of a Environment Facility (GEF) India is a donor as well as a particular sector, including initiatives for improving recipient of GEF Funds. Under the Eight Replenishment delivery of public services and for ensuring of Resources of GEF which runs from 2023-26, India "inclusive growth" has pledged USD 18.75 million. (i) DEA-UNDP SFF project: DEA has recently 12.15 International Platform on Sustainable Finance approved the Sustainable Finance Facility (SFF) (IPSF) which was developed in consultation with UNDP 12.15.1 International Platform on Sustainable Finance to implement the recommendations of G20 (IPSF) was launched by the European Commission on Sustainable Finance Working Group (SFWG) 18th October 2019 at the IMF Headquarters, Washington under India's G20 Presidency. The SFF DC. India is one of the founding members along with specifically focuses on implementing Argentina, Chile, China, Canada, Kenya, Morocco and recommendations on two priorities of SFWG viz. the European Union. Since its launch Australia, Hong (a) Scaling up social impact instruments and (b) Kong SAR, Indonesia, Japan, Malaysia, New Zealand, G20 Sustainable Finance Technical Assistance Norway, Senegal, Singapore, Sri Lanka, Switzerland and Action Plan (TAAP) by providing technical UK have joined the IPSF. The work of IPSF is informed assistance for designing of innovative social by twelve observers which include IMF, World Bank impact instruments. The project aims to design Group, OECD, UNEP, UNDP, EBRD, EIB among others. a minimum of 8 financing instruments over 4 IPSF offers a multilateral forum for dialogue between years (2024-28) primarily for States/UTs, thereby policymakers that are in charge of developing sustainable catalysing public and private investment. 57Annual Report 2024-2025 (ii) Financing for Development (FfD): FfD is an 13. Integrated Finance Division important process in global efforts to pursue the 13.1 The Division is responsible for the following 2030 Agenda through mobilizing development functions: financing. The 3rd International Conference on i. Tendering financial advice & concurrence to Financing for Development (FfD3) was held in proposals involving expenditure in respect of Addis Ababa in 2015. The Fourth International DEA and DFS as well as their attached and Conference on Financing for Development subordinate offices e.g. Security Appellate (FfD4) will be held from June 30 to July 03, 2025 Tribunal (SAT)/ National Savings Institute/G- at Spain. India is being represented by DEA in 20 Secretariat /Office of Special Court, FfD4. The first session of Preparatory Committee Mumbai/ Office of Custodian/ Debt Recovery (PrepCom) for the Fourth International Tribunals, Pension Fund Regulatory and Conference on FfD4 was held in Addis Ababa, Development Authority and Office of Court Ethiopia from 22-26 July 2024 to review the Liquidator, Kolkata. progress in implementation of Addis Ababa Action Agenda as an integral part of Agenda 2030 and ii. Exercising expenditure control and management, identify ideas to accelerate implementation of ensuring rationalization of expenditure and SDGs. DEA has been actively engaged in FfD4 compliance of economy measures in accordance and has submitted a comprehensive input paper with the instructions of the Department of on wide ranging issues such as domestic public Expenditure including regular monitoring of resources, private investment, systemic issues, expenditure through monthly/quarterly reviews international financial architecture, international and submission of reports to the concerned trade etc. based on extensive consultations with Secretaries. various line Ministries/Departments. The 2nd iii. The Division also administers two Detailed session of the Preparatory Committee Demands for Grants i.e. Grant No.30- (PrepCom) meeting for the Fourth International Department of Economic Affairs and Grant Conference on Financing for Development No.32-Department of Financial Services. This (FfD4) is scheduled from 2-6 December, 2024 involves finalizing the Budget Estimates/ the at UN Hqrs, New York to discuss the elements Revised Estimates/estimating final requirements/ paper which will form the basis for zero draft of surrender of savings, re-appropriations and FFD4 outcome. vetting of Head wise Appropriation Accounts. F. Foreign Training Courses/Programmes iv. Coordination, Compilation, Printing and laying of 12.18 Department of Economic Affairs is the nodal point the 'Detailed Demand for Grants (DDG)' and for administering short term foreign training courses 'Output Outcome Monitoring Framework offered by some bilateral partner countries under bilateral (OOMF)' for Central Sector and Centrally cooperation programme and some multilateral agencies. Sponsored Schemes costing less than `500.00 These courses are intended for capacity building of the crore of the Ministry of Finance in Parliament. officers in various spheres/fields of activities including v. Coordination of all matters relating to the sectors such as Education, Health, Water Resources, examination of the DG of Ministry of Finance by Disaster Management, Governance, Natural Resources the Parliamentary Standing Committee on and Energy, Agriculture, Nature Conservation, Finance. Environmental Management, etc. Nominations are invited vi. Numerical Monitoring of pending PAC/C&AG from all Ministries /Departments, State Governments/ Audit Paras/ENs on Demands for Grants of DEA. Union Territories. The nominations are screened by a vii. Coordination, Compilation, Printing and Selection Committee in DEA and thereafter Presentation of Statements to be made by recommended to the sponsoring Government/Agency for Hon'ble Finance Minister as required in terms of acceptance. During FY 2024-25, DEA received offers Rule 73-A, in Lok Sabha/ Rule 266 in Rajya for training for 52 Short Term Foreign Training Sabha in respect of implementation of Reports Programmes (less than four weeks) from Singapore of the Standing Committee on Finance on Cooperation Programme Training Award (SCPTA), Japan Demands for Grants. International Cooperation Agency (JICA) and Malaysian Technical Cooperation Programme (MTCP) and suitable viii. Budgetary position regarding the Grants applicants were recommended for the purpose. administered by the Division is given below: 58Department of Economic Affairs I 13.2 Budgetary allocation of the Grants (on net basis) ( ` in crore) Grant BE 2024-25 RE 204-25 BE 2025-26 30- Department of Economic Affairs Revenue 14075.64 45179.83 2400.24 Capital 66197.27 12727.98 46613.63 Total 80272.91 57907.81 49013.87 32- Department of Financial Services Revenue 2783.21 3376.66 1620.01 Capital 61.94 548.18 68.13 Total 2845.15 3924.84 1688.14 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. PARAS OF AUDIT REPORTS OF C&AG - Details of ATNs Audit paras pending with different Ministries/Departments and their disposal status - From 01.04.2024 to 31.12.2024 Name of the Ministry/Department : Ministry of Finance (Department of Economic Affairs) Sl. No & Year No. of Paras/PAC 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 CAG Report by the Ministry. Ministry to PAC 1. 2 of 2019 ... 1 3 ... 2. 4 of 2020 ... ... 1 ... 3. 7 of 2021 ... 1 ... ... 4. 18 of 2022 Entire Report ... ... ... 5. 31 of 2022 3 1 4 ... 6. 32 of 2022 Entire Report ... ... ... 7. 21 of 2023 31 ... ... ... 8. 01 of 2024 ... 1 ... ... PAC Reports 1. 117 of 2024 2 ... ... ... 2. 137 of 2024 1 ... ... ... 3. 01 of 2024 ... 1 ... ... 59Annual Report 2024-2025 Summary of Important Audit Observations:- During FY 2021-22, the Union Government had total resources of `1,48,95,450 crore through gross debt Report No. 21 of 2023 (Financial Audit) - Union receipts (`82,49,152 crore, 55.39 per cent), gross non- Government Accounts of the Union Government for the debt receipts (`33,74,399 crore, 22.67 per cent) and gross year 2021-22 receipts into public accounts (`32,37,452 crore, 21.74 Tabled in the Parliament on: 10th August, 2023 per cent). During the year, the Union Government utilized `148,93,046 crore, on repayment of public debt The Report includes matters arising from test audit of (`66,45,468 crore, 44.62 per cent), discharge of liabilities the Finance Accounts and the Appropriation Accounts of on Public Account (`30,81,152 crore, 20.69 per cent), the Union Government for the year ended March 2022. expenditure (`42,38,534 crore, 28.46 per cent) and EXECUTIVE SUMMARY States' share in Union Taxes (`8,98,392 crore, 6.03 per cent). Also, due to increase in financial limit of the The Annual Accounts of the Union Government presented Contingency Fund of India from `500 crore to `30,000 to the Parliament consist of The Finance Accounts and crore through the Finance Bill, 2021, `29,500 crore (0.20 the Appropriation Accounts. The Audit of Union per cent of Gross Receipts) was transferred to the Government Finance and Appropriation Accounts is Contingency Fund. Gross non-debt receipts of `33,74,399 conducted in accordance with the CAG's Auditing crore comprise gross revenue receipts (`33,34,813 crore) Standards and the principles enumerated in the Financial and Non-debt capital receipts (`39,586 crore). The gross Attest Audit Manual. C&AG has certified the Union revenue receipts of `33,34,813 crore consist of gross Finance and Appropriation Accounts for the FY 2021-22 tax receipts (`27,09,315 crore) and non-tax receipts on 21 December 2022. (`6,25,498 crore). Further, under tax receipts, direct taxes amounted to `13,91,993 crore (51.70 per cent) and indirect This Report of the Comptroller and Auditor General of taxes amounted to `13,00,709 crore (48.30 per cent). India (CAG) is organised into four chapters, viz. Chapter [Para 2.3] 1 introduces the Union Government Accounts and the audit process; Chapter 2 contains overview of financial During FY 2021-22, gross receipts increased by 9.98 per performance of the Union Government and discusses cent (`13,51,384 crore), Non-debt receipts increased by 33.52 per cent (`8,47,069 crore) and debt receipts the significant trends of the Government's receipts and increased by 1.06 per cent (`86,242 crore), in comparison disbursements during the financial year 2021-22; Chapter to FY 2020-21. Debt receipts grew by 25.86 per cent over 3 contains comments on Quality of Accounts and a period of five years from FY 2017-18 to FY 2021-22. Financial Reporting Practices; and Chapter 4 contains comments on Budgetary Management. [Para 2.3.2] Chapter 1: Introduction Cess collections at `4,78,680 crore formed 17.67 per cent of the gross tax revenue (`27,09,315 crore) in The Union Government Finance Accounts (UGFA) FY 2021-22. depicts the receipts and payments from the Consolidated [Para 2.3.3.1 & 2.3.3.2] Fund of India (CFI), Contingency Fund and Public The total Non-Tax Revenue increased substantially by Account. The Union Government Appropriation Accounts 44.66 per cent in FY 2021-22 (`6,25,498 crore) as compare expenditure with the allotments authorised by compared to FY 2020-21 (`4,32,406 crore) the Parliament and provide explanations for variations between the two beyond specified limits under each [Para 2.3.4] Grant/ Appropriation. During FY 2021-22, total disbursements from CFI increased by 8.14 per cent as compared to FY 2020-21. Chapter 2: Overview of Union Finances Of the total disbursements of `1,39,94,654 crore, The Gross Domestic Product (GDP) of the country at disbursements from CFI were 77.98 per cent and the the end of FY 2021-22 was `1,47,35,515 crore at balance 22.02 per cent was from Public Account. Out of Constant Prices (base year 2011-12) and `2,36,64,637 the disbursements from CFI, repayment of public debt crore at Current Prices. In both cases there was a growth constituted 60.89 per cent, total expenditure 38.84 per of 8.68 per cent and 19.51 per cent over the previous cent and 0.27 per cent was transferred to the Contingency year, respectively. Fund of India. [Para 2.1] [Para 2.4.1] 60Department of Economic Affairs I Total Expenditure of the Union at `42,38,534 crore in FY Chapter 3: Quality of Accounts and Financial 2021-22 increased by 8.47 per cent over the previous Reporting Practices year contributed by Revenue Expenditure (`34,68,189 Review of guarantees as depicted in Statement 4 of UGFA crore) and Capital Expenditure (`5,38,140 crore) driving revealed instances of non/short recovery of guarantee this increase whereas Loans and Advances (`2,32,205 fee, non-receipt of penal guarantee fee, documentation / crore) decreased compared to the previous year yearly review issues of guarantees and non-consideration (`2,49,846 crore). of implied guarantees. [Para 3.2] [Figure 2.16 of Para 2.4.1] Review of UGFA Statement 11 - Details of investments Expenditure on Social Services sector witnessed highest by the Union Government, reveals that there was growth of 58.93 per cent in FY 2021-22 over previous mismatch in information relating to number of equity year. The expenditure on General Services sector also shares and percentage of shareholding and investment noticed a growth of 13.63 per cent in FY 2021-22 over with reference to Annual Accounts of respective entities, previous year. Whereas, the expenditure on Economic non-accounting of bonus shares, shortfall in payment of Services sector witnessed a decline of 3.84 per cent in dividend etc. FY 2021-22 over previous year. [Para 3.3] [Para 2.4.2] Suspense heads depicted only net balances and did not Interest payment of `8,28,253 crore was the largest single disclose the outstanding amount separately as Credit and component of revenue expenditure (`34,68,189 crore) Debit balances under these heads. As a result, the constituting 23.88 per cent of the total revenue balances varied by 54.52 per cent under Suspense expenditure, witnessed a growth of 14.88 per cent over Account (Civil) and by 72.26 per cent under Public Sector previous year. Bank (PSB Suspense). If these amounts remain [Para 2.4.3] unadjusted, the balances under the suspense heads During FY 2021-22, the expenditure on Subsidies accumulate and the accounts would give an inaccurate picture of Government receipts and expenditure. (`5,02,226 crore) constituted 14.48 per cent of Revenue [Para 3.4] Expenditure, which declined by 33.47 per cent over previous year. There were 67 cases of adverse balances at the end of [Para 2.4.3.3] the year FY 2021-22. Out of this, 45 cases were unresolved for over 5 years, with the oldest being 45 Grants-in-Aid to States for centrally sponsored schemes years. increased substantially to `2,40,383 crore (15.35 per cent) [Para 3.5] over previous year. [Para 2.4.3.4] There were instances of short/non-transfer of collected amounts of cess/levy to the designated reserve funds, Capital expenditure increased significantly from `3,42,949 non-opening/non-operationalisation of reserve funds, crore in FY 2020-21 to `5,38,140 crore in FY 2021-22 dormant reserve funds without any transactions there with a growth of 56.92 per cent, due to higher expenditure under and deviation from approved accounting procedure on Economic Services (`1,81,600 crore). etc. [Para 2.4.4] [Para 3.6] Total liabilities consistently increased by more than 10 At the end of FY 2021-22, an amount of `7,63,693 crore per cent from FY 2017-18 onwards. In FY 2021-22, there is outstanding as loans and advances given by the Union was a growth of 12.04 per cent over FY 2020-21 on Government to State/UT Governments and other entities. account of increase in Public Debt (`15,96,305 crore). Out of this, `68,141 crore are arrears in recovery (principal Total Public Account liabilities of the Union Government and interest). as on 31 March 2022, stood at `16,44,216 crore. [Para 3.7] [Para 2.5 and Para 2.5.1] A total of 258 footnotes had been included for disclosing During FY 2021-22 Revenue Deficit (RD) and Fiscal additional information in UGFA for FY 2021-22. However, Deficit (FD) is on a downward trend. these footnotes did not disclose the complete picture of [Para 2.6] the finances of the Union Government to that extent as 61Annual Report 2024-2025 the full nature and implications of adjustments and action 14. Coin and Currency Division taken to address the anomalies were not stated. In view 14.1 Coin and Currency Division is responsible for of the importance of disclosures/ additional information policy related to all aspects of the currency and coinage of in relation to the figures appearing in Union Government India. The works of the Division is carried out in close coordination with Reserve Bank of India (RBI), Security Finance Accounts, a recommendation has been made Printing and Minting Corporation of India Limited (SPMCIL), to include 'Notes to Accounts' in the UGFA for FY 2022-23. Bhartiya Reserve Bank Note Mudran Private Limited [Para 3.8.1] (BRBNMPL) and Bank Note Paper Mill India Private Chapter 4: Budgetary Management Limited (BNPMIPL). The Division has three Sections viz. Currency, Coin and SPMC Section. Responsibilities among Appropriation Accounts consisting of 101 Demands for FY these Sections are divided as follows: 2021-22 had approved provisions aggregating to 14.1.1 Currency Section deals with all policy matters `1,24,36,009 crore, total expenditure thereon was relating to design, form and material of currency notes/ `1,16,71,288 crore with overall savings of `7,64,721 crore. banknotes including security features, and operational [Para 4.1.1] issues relating to production, planning of printing of bank notes, Currency related legislation, indigenization of bank There was excess expenditure of `1,235.98 crore over note materials, expansion, up-gradation and Parliamentary authorization during FY 2021-22 involving modernization of Presses, Paper Mills, Ink factory, etc., three grants, namely Grant No.39-Pensions (`742.57 and administration of SBN (Cessation of Liabilities) Act, crore), Grant No. 6-Department of Fertilisers (`493.38 2017 and Rules made thereunder. crore) and Grant No. 18-Ministry of Defence (Civil) 14.1.2 Coin Section deals with policy matters relating (`0.03 crore). to design, shape and size of circulation coins, fixation of fair selling price of coins, coins related legislations and [Para 4.2.1] issuance of Commemorative Coins, security products viz. Total savings under all the Grants/ Appropriations were passport, postal stamps, Non-Judicial Stamp Paper, `7,64,721 crore, constituting 6.15 per cent of total production planning of coins and determination of indent of coins, expansion, diversification and modernization of authorisations. There were Savings of `100 crore or more Mints and Security Presses. in 94 segments of 70 Grants/ Appropriations amounting to `7,63,305 crore. Further, out of the 16 Grants/ 14.1.3 SPMC Section deals with matters related to SPMCIL, which is under administrative control of the Appropriations with savings of `5,000 crore or more in Department. The Section deals with issues of this FY 2021-22, nine had substantial savings in FY 2019-20 company relating to appointment to Board Level posts, and FY 2020-21 as well. MoU, residual establishment matters of its nine Units, [Para 4.2.2 & 4.2.2.1] and coordination of meetings of SPMCIL Board, SPMCIL Pension Fund Trust etc. Significant savings of `500 crore or more at minor-head/ sub-head level and savings of more than 25 per cent of 14.2 Major achievements of the Division 14.2.1 In order to stay ahead of the counterfeiting, allocations subject to a minimum of `100 crore were Government of India, in consultation with RBI, has initiated noticed in 269 cases of 62 Grants/ Appropriations. the process for introduction of new security features in [Para 4.2.2.2] Indian banknotes. The Government has approved the recommendations of RBl's Central Board on revised In 40 Minor/ Sub-heads under 22 Grants, supplementary matrix of security features in bank notes in terms of the provisions amounting to `14,155 crore were obtained provisions of section 25 of the RBI Act, 1934. RBI has during FY 2021-22 in anticipation of higher expenditure, initiated process for introduction of this revised matrix of but final expenditure was less than the original provisions security features. This revised matrix of new security features is expected to protect against counterfeiting of under corresponding Minor/Sub-heads. the currency notes. [Para 4.3] 14.2.2.1 The production of banknotes by BRBNMPL In respect of thirty two (32) Departments/Ministries, and SPMCIL is monitored by this Division. The meetings 42,854 number of Utilisation Certificates (UCs) of Strategic Planning Group and Production Planning Committee are also held regularly to review the indent aggregating to `52,770.14 crore pertaining to Grants-in- and production of banknotes and coins & their Aid released during FY 1975-76 to FY 2020-21, were uninterrupted supply to public. The cumulative production outstanding as on 31 March 2022. of notes by currency presses during 2024-25 up to [Para 4.16] 31.12.2024 is given below. 62Department of Economic Affairs I Status of indent of notes by BRBNMPL and SPMCIL during 2024-25 up to 31.12.2024 Press Total Indent allocated Cumulative production from Production left for for 2024-25 (in mpcs) 01.04.2024 to 31.12.2024 (in mpcs) 2024-25 (in mpcs) BRBNMPL 18,180.00 13,109.31 5,070.69 SPMCIL 12,120 8,592.996 3,533.260 Face Value (Cr) BRBNMPL 4,67,880.00 3,79,778.41 88,101.59 SPMCIL 3,11,920 2,04,592.95 1,07,339.563 14.2.2.2 The trends in the Note In Circulation (NIC) are Birth Centenary, 150 years of Indian Meteorological monitored. The Notes In Circulation (NIC) as on Department and 25th Commemoration of November 4, 2016 were `17,74,187 Cr. which have now Sh. Harakchand Nahata, First Death Anniversary of increased to `35,25,727 Cr. as on 20.12.2024. Vidyasagar Maharaj ji, Commissioning of Jammu-Srinagar Railway Line and 75 years of Bharat Scout Guide. 14.2.3.1 The trends in Coins In Circulation (CnIC) are also strictly monitored. As on 20.12.2024, the CnIC were 14.3 Security Printing and Minting Corporation of `35,562 crore. CnIC has risen by `2,463 crore as India Limited (SPMCIL): compared to CnIC as on 23.02.2024. 14.3.1 Security Printing and Minting Corporation of India Ltd. (SPMCIL), a Miniratna Category-I, Schedule-'A' 14.2.4.1 As per the Coinage Act, 2011, commemorative Central Public Sector Enterprise (CPSE) was coin means any coin stamped by the Government or any incorporated on 13th January 2006 to manage four India other authority empowered by the Government in this Government Mints, two Currency Presses, two Security behalf to commemorate any specific occasion or event Presses and one Security Paper Mill, which were earlier and expressed in Indian currency. Accordingly, the Government issues commemorative coins on eminent being managed by the Government of India (Ministry of persons/ personalities/ institutions/ events/ programmes/ Finance) directly. The Company is wholly owned by the history, etc. that have a national or international nature Central Government with Authorized Share Capital of and which have made a lasting contribution or impact. `2500 crores and paid-up Share Capital of `987.50 crores. The contribution made by the individual/ organisation/ 14.3.2 The Reserve Bank of India (RBI) is the customer programme/ event should have transcended the barriers for currency notes supplied by two Currency Presses of of partisan politics, region, community, language or the Company, i.e. Bank Note Press (BNP), Dewas and religion. However, on an occasion to express sympathy/ Currency Note Press (CNP), Nashik. The Ministry of grief/ exhibit respect for the sacrifice, Commiserative External Affairs (MEA) and Ministry of Home Affairs (MHA) Coins would be issued. The Guidelines in this regard has are customers for passports and visa stickers, been issued on 29.09.2020. respectively and the State Governments are customers 14.2.4.2 During 2024-25 (Upto 03.01.2025), the for Non-Judicial Stamp Papers and allied stamps and the Government issued Gazette Notifications for release of Postal Department is the customer for postal stationery, 22 Commemorative Coins viz. 150 years of Bombay stamps, etc. supplied by the two Security Presses of the Stock Exchange, 75 years celebration of Supreme Court Company, i.e. Security Printing Press (SPP), Hyderabad of India, Birth Centenary of Dr. M. Karunanidhi, Birth and India Security Press (ISP), Nashik. These Security Centenary of Shri Mataji Nirmala Devi, Centenary year Presses also produce various security items like cheques, SBI, Mumbai Main Branch Building, Shree Swami railway warrants, income tax return order forms, saving Narayan Mandir, Vadtaldham, Diamond Jubilee year of instruments, commemorative stamps, excise adhesive Official Language, Central Silk Board, 150th Birth labels, certificates etc. for various customers. The Anniversary of Jain Acharya Shrimad Buddhisagar Department of Economic Affairs (DEA), Ministry of Surishwarji Maharajji, Diamond Jubilee of Birla Institute Finance is the customer for circulation coins supplied by of Technology and Science (BITS Pilani), 150th Birth the four India Government Mints (IGMs) of the Company Anniversary of Bhagwan Birsa Munda Ji, 125th Birth at Mumbai, Kolkata, Hyderabad and Noida. The Company Anniversary of Dr. Harekrushna Mahtab, 2800th Nirvan has one Security Paper Mill (SPM) at Narmadapuram Kalyanak of Parshvanath Bhagwan, 2900th Janm which manufactures Security Paper for use by Currency Kalyanak of Parshvanath Bhagwan, 75th Anniversary of / Security Presses. The Company also has an Ink Factory Constitution, Centenary Celebration of Mysore Medical at Dewas which manufactures Offset Ink, UV Ink and College and Research Institute, Shri Atal Bihari Vajpayee Quickset Intaglio Ink for use by the presses of SPMCIL. 63Annual Report 2024-2025 14.3.3 As a company which is manufacturer of 2023-24. This is 22.51% higher than the production of instruments of faith, SPMCIL is inspired by its vision to 11.453 million pieces of travel documents/ passport serve national priorities of producing state-of-the-art booklets during the year 2022-23. SPMCIL has also security products leveraging core competency and produced 206.462 million pieces of Non-Judicial Stamp building design capabilities. With the commitment to aid Papers (NJSPs) and supplied 211.421 million pieces the nation by manufacturing world class and highly NJSPs to various State Governments during the year secured banknotes, coins and security documents, 2023-24. SPMCIL has almost 100 years of security printing 14.3.9 The Revenue from Operations of SPMCIL stood experience and over two centuries of experience in the at `4714.80 crores in the year 2023-24 as compared to field of minting. `4918.22 crores in the previous year 2022-23. Total 14.3.4 SPMCIL has produced 9,707.34 million pieces expenditure for the year 2023-24 is `3695.04 crores as of the Bank Notes and supplied 9,720 million pieces of compared to `3430.33 crores for the year 2022-23. Profit Bank Notes to RBI during the year 2023-24. This signifies before Tax (PBT) from continuing operations for the year 8.06% increase in the production compared to 8983 2023-24 is `1383.84 crores as compared to `2341.21 million pieces of the Bank Notes produced in the previous crores for the year 2022-23. The Company has achieved year i.e. in 2022-23. The productivity per employee has a Total Comprehensive Income (TCI) of `1006.55 crores risen significantly, with each employee at currency in the year 2023- 24 as compared to `1709.54 crores presses contributing to the production of 4.99 million during the year 2022-23. The consolidated TCI after taking pieces of the Bank Notes in 2023-24, up from 4.35 million into account the 50% share of Joint Venture Company, pieces in 2022-23. Bank Note Paper Mill India Pvt. Ltd. (BNPMIPL) is `1067.79 crores in the year 2023-24 as compared to the 14.3.5 SPMCIL has produced 1,200.99 million pieces Consolidated TCI of `1772.62 crores in the year of the Circulation Coins and supplied 1,205.64 million 2022-23. pieces of the Circulation Coins to RBI during the year 2023-24. This is 21.04% higher than the production of 14.3.10 In accordance with the guidelines on Capital 992.22 million pieces of Circulation Coins achieved during Restructuring of CPSEs issued by the Department of the last year 2022-23. However, it is important to note Investment and Public Asset Management (DIPAM), the that this is only around 15% of SPMCIL's total annual Company has paid the dividend of `364.11 crores being coin production capacity, reflecting a significant reduction 5% of Net worth of the company as at 31st March 2023, in the indent of Circulation Coins by the RBI. to the Government of India for the financial year 2023-24. 14.3.6 During the year 2023-24, SPM, Narmadapuram 14.3.11 During the year 2023-24, the Company has (a unit of SPMCIL) has produced 7,113.75 Metric Ton taken-up many modernization and capacity augmentation (MT) of Security Paper and supplied 7,375.40 MT of initiatives. During the year 2023-24, a state-of-the-art Security Paper to the printing presses. This is 6.47% Offset Banknote printing machine was installed at the higher than the production of 6,681.60 MT of Security Bank Note Press (BNP), Dewas. At the Currency Note Paper during the last year 2022-23. Production of Security Press (CNP), Nashik, a state-of-the-art shredder and Paper per Employee has increased to 8.72 MT in the briquetting machine was commissioned. The India year 2023-24 as against 7.86 MT achieved during the Security Press (ISP), Nashik, commissioned both an previous year 2022-23. advanced Offset Printing machine and a Laser Micro 14.3.7 SPMCIL has produced 592.18 Metric Ton (MT) Perforation Machine. The Security Printing Press (SPP), of Security Inks at Ink Factory, Dewas and supplied Hyderabad, commissioned an advanced offline Variable 595.38 Metric Ton Inks to printing presses during the year Data Printing (VDP) machine with Screen Printing 2023-24. This is 94.16% higher than the production of capabilities, along with an offline Die Cutting Machine for 305 MT of Security Inks during the last year 2022-23. printing Excise Adhesive Labels (EAL). Additionally, at Production of Security Ink per Employee has increased the India Government Mint (IGM), Kolkata, an Aqua-Regia to 10.21 MT in the year 2023-24 as against 5.75 MT Gold Refining plant has been successfully commissioned. achieved during the previous year 2022-23. 14.3.12 All the nine units of SPMCIL have been certified 14.3.8 SPMCIL has produced 14.031 million pieces of with ISO 9001:2015 for Quality Management System and travel documents/passport booklets and supplied 13.14 ISO 14001:2015 for Environmental Management System. million pieces travel documents/passport booklets to The Corporate R&D Centre in Nashik is also ISO Ministry of External Affairs (MEA) during the year 9001:2015 certified. The Security Paper Mill (SPM) in 64Department of Economic Affairs I Narmadapuram, the Bank Note Press in Dewas, and the has its bank notes manufacturing units at Mysuru in India Government Mint in Noida have obtained ISO Karnataka and at Salboni in West Bengal and its 45001:2018 certification for Occupational Health & Safety Corporate Office at Bengaluru, Karnataka. The present Management System. SPM, Narmadapuram has also total capacity for both the presses is 16 billion note pieces been awarded the ISO 50001:2018 certification for Energy per year in a 2-shift operation. Management System. SPM, Narmadapuram, and the 14.4.2 Paper and Ink are the most critical raw materials Security Printing Press in Hyderabad have obtained the used for banknote production. These two raw materials ISO/IEC 17025:2017 certification from the National costs approximately 51% of the total cost. In the global Accreditation Board for Testing and Calibration banknote production industry, most of the countries Laboratories (NABL). India Government Mint, Mumbai depend on external sources for paper and ink. But the has received ISO 17034:2016 accreditation. These green field project initiated by BRBNMPL for setting up a certifications are a testament to SPMCIL's relentless new paper mill at Mysuru (Bank Note Paper Mill India pursuit of excellence. Pvt Ltd (a Joint Venture between BRBNMPL and SPMCIL) 14.3.13 The Manpower Strength of the Company has and its brown field project of Varnika (in-house Ink come down to 5,752 as on 31.03.2024 which includes Manufacturing Unit) at Mysuru has brought Indian 373 Executives, 913 Supervisors and 4,466 Office staff Currency Printing Industry to its self-reliance and to stand & Workers working in 9 Units and Corporate Office in at par of global banknote printing leaders. comparison to previous year's employee strength of 14.4.3 Colour Shift Intaglio Ink (CSII), one of the main 5,987. At SPMCIL, training and retraining initiatives have overt security features used in the Indian banknotes, been a focal point, aiming to upgrade functional skills which was earlier procured from private supplier, is now and expertise, along with enhancing soft skills and group being manufactured at Varnika. BRBNMPL is catering dynamics. entire requirement of CSII to BRBNMPL presses and this 14.3.14 SPMCIL has taken-up many CSR projects in has put an end on our import dependency and resulted the areas of education, healthcare, rural development, into self-reliance and cost advantage. skill development, measures for benefit of armed force 14.4.4 Colour Shift Pigment (CSP), which is one of the veteran, war widows and their dependents etc. in the year raw materials required for manufacturing of CSII, was 2024. BNP, Dewas had adopted Siorliya village and SPM, earlier procured from the foreign source. Presently CSP Narmadapuram had adopted Chatua village for is being procured at a ratio of 50:50 from domestic and implementing projects under CSR. As per the instructions foreign sources finalized through tendering. Further of Department of Public Enterprises (DPE) for giving backward integration for Manufacturing of Colour Shift preference to aspirational districts, SPMCIL had adopted pigment is in progress, under Make-in-India initiative. Barwani District of Madhya Pradesh as the Aspirational 14.4.5 BRBNMPL is putting continuous efforts for District. indigenization of various items used for banknote 14.3.15 Indigenization: The Joint Venture Company, manufacturing. The import component for Banknote was Bank Note Paper Mill India Private Limited (BNPMIPL) around 92% in FY 2010-11, which has now come down has produced 15627 MT of Security Paper during the to less than 10%. All the procurements of BRBNMPL are year 2023-24. complied with Public Procurement (Preference to Make in India) Order 2017 dated 15th June 2017 and its 14.4 Bhartiya Reserve Bank Note Mudran Private subsequent amendments issued by Department for Limited Corporte Office, Bengaluru Promotion of Industry and Internal Trade (DPIIT), Ministry 14.4.1 Bharatiya Reserve Bank Note Mudran Pvt Ltd of Micro, Small and Medium Enterprises (MSME) orders, (BRBNMPL) was established by Reserve Bank of India Start-ups. The procurement is done through E-tendering/ as its wholly owned subsidiary on 3rd February 1995 with E-auction, MSTC and GeM Portal. a view to augmenting the production of banknotes in India to enable RBI to bridge the gap between supply and 14.4.6 Status of Indent for FY 2024-25 of BRBNMPL as demand for bank notes in the country. The Company on 30.11.2024 Total Indent allotted Total Indent allocated Cumulative production Cumulative production for 2024-25 (in mpcs) face value for in mpcs for FY 2024-25 face value in `Crore FY 2024-25 `Crores for FY 2024-25 18,180.00 4,67,880.00 11,474.17 3,41,140.14 65Annual Report 2024-2025 14.4.7 Direct Remittance: BRBNMPL has increased the 14.5.2 During the year 2023-24, BNPMIPL has Direct Remittance of banknotes to currency chests which produced 15627 MT of CWBN Paper (130% of the enhances the logistical efficiency thereby reducing carbon installed capacity) and supplied 15686 MT of CWBN footprint and cost effectiveness to RBI. During the current Paper to all the four banknote printing presses to meet financial year FY 2024-25 (as on 30/11/2024), the their entire requirement of paper to print Indian banknotes. Company has dispatched 75% direct remittances in terms The Company has been ISO 9001:2015, ISO 14001:2015 of number of consignments and 57% direct remittances and ISO 45001:2018 certified for quality management, in terms of million note pieces. Both the presses are environment management and health and Safety strategically increasing the number of direct management systems respectively. The Company has consignments to Chests as medium to long-term goal. also implemented an ERP system for all accounting, inventory management and control on the movement of 14.4.8 BRBNMPL continues to be certified under people. The Company has upgraded with state-of-the- Integrated Management System covering ISO art CCTV control system with video analytics and a 45001:2018 Occupational Health and Safety storage of recording up to one year to monitor the Management System apart from ISO 9001:2015 Quality movement of material and people. The company has also Management System and ISO 14001:2015 installed face recognition cameras and biometric control Environmental Management System. system for entry and exit points of all sensitive areas. 14.4.9 Currency Research and Development Centre 14.5.3 The Company has been taking various initiatives (CRDC) a state-of-the-art R&D unit has been established to inculcate a culture of continuous improvement in its at Mysuru Press for conducting cutting edge research to processes by adopting latest technology to reduce cost test the robustness of security features of banknotes and of manufacturing. Some of the important measures like introduction of new security features. power purchase from Indian Energy Exchange (IEX), 14.4.10 BRBNMPL had taken up the responsibility of Reducing and optimizing power demand, setting up of contributing to the general welfare and growth of the electronics repair laboratory, Upgradation of online quality communities preferably living near its offices in Bengaluru monitoring system to reduce manual interventions, & Mysuru, Karnataka and Salboni, West Bengal much introducing ultra filtration and RO water purification before it was made mandatory by Govt. of India w.e.f 1st system, developing special machine parts indigenously, April 2014 under the Companies Act, 2013. The Company developing Indian sources for security features, recycling has further expanded its reach of intervention to other of process water and achieving Zero effluent discharge parts of the country as well based on the need-based etc., have contributed towards reduction of manufacturing surveys, targeting into the focus areas viz. Education, cost. Due to efforts undertaken towards environmental Women Empowerment, Rural Developmental projects, protection BNPM has been able to recover recycle and Training & Skill Development, Health & family welfare, reuse every drop of rain water/seepage water in the promotion of environment friendly technology, etc. The campus during the year 2023-24. The Company has Company has been fulfilling all the requirements continued its efforts towards research and Development mandated under Section 135 of the Companies Act, 2013, with the support of ICAR-CIRCOT, Mumbai, SITRA, read with amendments from time to time. Further, the Coimbatore and CPPRI Saharanpur to improve its Company has also been carrying out the Impact processes. The Company has received national awards Assessment Study / Measuring of Social Returns from for safety from National Safety Council, CII National award the completed CSR activities to understand its impact for Excellence in Water Management, Dasara award for and standardizing its practices to meet desired results Best Industrial Garden, HR award etc,. shows its within prescribed timelines. commitment for continuous improvement culture and its responsibility towards the environment. 14.5 Bank Note Paper Mill India Private Limited (BNPMIPL) 14.5.4 Under the Corporate Social Responsibility (CSR), 14.5.1 BNPMIPL was established as a 50:50 Joint BNPMIPL has been contributing in the areas of rural Venture Company between SPMCIL and BRBNMPL in education, women empowerment, rural health, skill the year 2010 at Mysuru to manufacture bank note paper development, supporting homeless aged people, (CWBN Paper) indigenously. The Company has installed eliminating malnutrition, art and culture, environment two line of paper mills having an installed capacity of protection, physically challenged, wildlife conservation, 12000 MT per year. The Company went into commercial public health and hygiene, supporting local bodies for production during the year 2016 and catering to about urban sanitation, medical aids to the poor, palliative care 75% of the Indian Bank Note Paper requirement. etc. 66Department of Economic Affairs I Annexure-I SECURITY PRINTING & MINTING CORPORATION OF INDIA LIMITED (SPMCIL) Representation of SCs, STs, OBCs and EWS Number of Appointments made during the Financial year 2023-24 Total Representation of By Direct Recruitment By Promotion By Depution SCs/STs/OBCs/EWS (As on 31.03.2024) Groups Total SCs STs OBCs EWS Total SCs STsOBCs EWS Total SCs STs Total SCs STs OBCs EWS No. of Employees Group ‘A’ 373 50 22 88 3 29 2 2 7 3 123 14 4 0 0 0 0 0 Group ‘B’ 913 138 88 210 9 32 1 2 11 3 80 13 14 0 0 0 0 0 Group ‘C’ 4466 857 374 993 50 361 68 19 194 27 635 87 44 0 0 0 0 0 Total 5752 1045 484 1291 62 422 71 23 212 33 838 114 62 0 0 0 0 0 Annexure-II SECURITY PRINTING & MINTING CORPORATION OF INDIA LIMITED, (SPMCIL) Representation of Persons with Disabilities Total Representation Direct Recruitment By Promotion By Deputation (as on 31.03.2024) Group Total P Q R S T P Q R S T P Q R S T P Q R S T Employees Group A 373 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 Group B 913 1 0 10 0 3 0 0 1 0 0 0 0 2 0 0 0 0 0 0 0 Group C 4466 15 38 50 0 25 1 2 5 0 0 0 2 4 0 0 0 0 0 0 0 Total 5752 16 38 60 0 28 1 2 7 0 0 0 2 6 0 0 0 0 0 0 0 P - Blindness and Low Vision Q - Deaf and hard of hearing R - Locomotor disabilities including cerebral palsy, leprosy cured, dwarfism, acid attack victims and muscular dystrophy S - Autism, intellectual disability, specific learning disability and mental illness T - Multiple Disabilities from amongst A to D including deaf-blindness 67Annual Report 2024-2025 15. Other Multilateral Institutions (OMI) Board of Governors by the Finance Minister of India, and Division the Secretary of the Department of Economic Affairs serves as the alternate governor. 15.1 Asian Infrastructure Investment Bank (AIIB) 15.2.5 As of December 2024, India has pledged `601.9 15.1.1 India is the largest client of the Asian Infrastructure crore (till ADF-15). For ADF-16, India has pledged `152.64 Investment Bank (AIIB) in terms of approved financing. crore as a pure grant and `3.69 crore as grant Since 2016 (AIIB's operational period), 32 Sovereign compensation. Another `46 crore has been contributed Projects have been approved by AIIB for the financing of towards the Multilateral Debt Relief Initiative (MDRI). USD 9.5 billion across various sectors viz. energy, transport, water, urban, public health, and education. Out 15.2.6 Overall, these contributions have served to of these 32 projects, 21 projects worth USD 5.8 billion are finance activities aligned with Africa's vision for ongoing, 8 projects worth USD 3 billion have already been development within the context of the Bank's Ten-Year closed, and three projects worth USD 675 million is Strategy (TYS) and High 5 priorities. approved by the AIIB Board and are being signed. In 15.3 International Fund for Agricultural addition, since its inception, AIIB has approved 17 non- Development (IFAD) sovereign/private sector projects worth USD 1.4 billion. 15.3.1 The IFAD assisted 33 projects in India with a 15.2 The African Development Bank (AfDB) commitment of USD 1.6 billion (approx.) since 1979. Out 15.2.1 The AfDB is a regional multilateral development of these, 27 projects have already been closed, while 6 finance institution established to contribute to the economic projects with total assistance of USD 412.73 million are development and social progress of African countries that under implementation. Currently, 01 projects of India are the institution's Regional Member Countries (RMCs). worth USD 86.33 million has been built as pipeline for The AfDB was founded following an agreement signed by the approval of IFAD Board in FY 2024-25. member states on August 14, 1963, in Khartoum, Sudan, 15.4 European Bank for Reconstruction and which became effective on September 10, 1964. The AfDB Development (EBRD) comprises three entities, jointly referred to as the African 15.4.1 The EBRD, headquartered in London, was Development Bank Group, namely the African established in 1991 to help the erstwhile economies of Development Bank (AfDB), the African Development Fund Central and Eastern Europe reconstruct their economies (ADF), and the Nigeria Trust Fund (NTF). The AfDB is in the post-Cold War era and evolve into open, market- headquartered in Abidjan, Côte d'Ivoire. oriented economies committed to the principles of 15.2.2 The Bank comprises 54 African countries known multiparty democracy and pluralism. EBRD operates in as regional member countries (RMCs) and 27 non-African more than 30 countries from Central Europe to Central countries known as non-regional member countries Asia and the Southern and Eastern Mediterranean. The (NRMCs). When the African Development Bank (AfDB) area of operation of the EBRD has now expanded to was established, only independent African countries were include North African countries as well. The EBRD is the eligible to be shareholders of the Bank, and later in 1982, only bank among MDBs that focuses mainly on non- the memberships were opened to Non-African Countries. sovereign operations. EBRD has an explicitly political mandate: firstly, to support democracy-building activities. 15.2.3 India is a long-standing partner of the AfDB, and Second, the EBRD does not have a concessional loan relations date back to 1982 when India joined the African window. To date, the Bank has 72 member countries, as Development Fund (ADF) and joined the African well as the European Union and the European Investment Development Bank (AfDB) in 1983 as its non-regional / Bank. India joined the EBRD in July 2018 as its 69th non-borrowing member. All 81 AfDB members (54 RMCs shareholder and currently holds 0.033 percent & 27 NRMCs) are grouped into 20 constituencies (13 shareholding in the Bank. India is a non-borrowing regional and 7 non-regional). India is part of the NIIC - member and is part of the Portugal Constituency, which Nordic India Ireland Constituency, comprising Norway, comprises Portugal, Greece, and San Marino. India paid Sweden, Finland, Denmark, and Ireland. Euro 1.79 million (`14.74 Cr) towards its paid-up portion 15.2.4 India holds a total of 41,828 shares and 0.287 and has an initial subscription of 986 shares. India percent voting shares in the AfDB. In ADF, India holds a became a member of the Bank, comprising 179 paid-in 0.182 percent voting share. India participates in the Board shares and 807 callable shares. India is represented in of Governors (BoG) meetings, which are held annually, the Board of Governors by the Finance Minister of India, and raises concerns during the Board of Directors (BoD) and the Alternate Governor is the Secretary of the meetings via its constituency. India is represented in the Department of Economic Affairs, Ministry of Finance. 68Department of Economic Affairs I 15.5 New Development Bank (NDB) Assistance and programmes from bilateral/ multilateral agencies on mainstreaming PPPs and 15.5.1 India is the second largest recipient of New support to State and local governments. Development Bank (NDB) financing across power, water, 6. Managing training programs, strategies, exposures transport, public health, sustainable development, and for capacity building for PPPs and other matters social sector. Since 2016 (NDB's operational period), 23 relating to institution building for mainstreaming Sovereign Projects have been approved by NDB for the PPPs. financing of USD 8.1 billion across various sectors, viz. transport, water, urban, public health, tourism, etc. - This 7. All International interfaces on PPPs & other matters includes USD 2 billion in recovery assistance to India concerning PPPs including BRICS Taskforce on towards COVID-19 Crisis Recovery support and PPP and Infrastructure. economic resilience. Out of these 23 projects, 18 projects 8. Matters relating to management of PPP related worth USD 4.16 billion are ongoing, 4 projects worth USD information, including www.pppinindia.gov.in . 2.8 billion have already been closed, and 2 projects worth Major Policy Initiatives/ Achievements of PIU USD 311 million are approved by the NDB Board and are 1. Financial support to Public Private being signed. Further, during the FY 2024-25, India signed Partnerships in Infrastructure (VGF Scheme) 02 projects worth USD 418.8 million. In addition, since The Department of Economic Affairs (DEA) its inception, NDB has approved 2 non-sovereign/private launched the Viability Gap Funding (VGF) scheme for sector projects worth USD 400 million. providing financial assistance to financially unviable but socially/ economically desirable PPP projects. Under this 16. Infrastructure Support and scheme, economic sector projects may get up to 40% of Development Division (ISD Division) the Capex as VGF grant. The VGF Scheme includes Introduction : higher provisions of VGF grant for social sectors i.e., Health, Education, Water Supply, Waste Water Infrastructure Support and Development Division, a part Treatment, Solid Waste Management, etc. Social sector of the Infrastructure Finance Secretariat in DEA, deals projects may get up to 80% of the Capex and up to 50% with initiatives for promotion of investment in infrastructure of Opex for 5 years after the Commercial Operation Date development in the country, creation of an enabling (CoD) as VGF grant. Social Sector projects get VGF grant environment for private sector investment in infrastructure under the following two categories: through Public Private Partnerships (PPPs), etc. The a) Sub scheme -1 caters to Social Sectors such division is headed by Joint Secretary. The Division has as Wastewater Treatment, Water Supply, Solid the following Units: Private Investment Unit, Energy Unit Waste Management, Health & Education sectors, and NIP Facilitation Unit. Each Unit is headed by a etc. The projects eligible under this category Adviser/Director/Deputy Secretary/ Joint Director and should have at least 100% Operational Cost assisted by an Under Secretary/ Deputy Director. recovery. The Central Government will provide Private Investment Unit (PIU) maximum of 30% of Capex of the project as VGF and State Government/Sponsoring Central Major Functions of PIU, inter alia, include the following: Ministry/Statutory Entity may provide additional 1. Matters relating to appraisal and approval of Central support up to 30% of Capex. sector PPP projects. b) Sub scheme -2 supports demonstration/pilot 2. Matters and proposals relating to clearance by social sectors projects. The projects may be from Public Private Partnership Appraisal Committee Health & Education sectors. The projects eligible (PPPAC). under this category should have at least 50% 3. Matters and proposals relating to the Scheme for Operational Cost recovery. The Central Financial support to Public Private Partnerships in Government will provide a maximum of 40% of Infrastructure (Viability Gap Funding (VGF)) the Capex of the Project and a maximum of 25% Scheme. of Opex of the project for first five years of 4. Matters and proposals relating to the scheme for commercial operations as VGF. The State India Infrastructure Project Development Fund Government/Sponsoring Central Ministry/ (IIPDF). Statutory Entity may provide additional support 5. Developing multi-pronged and innovative up to 40% of the Capex of the Project and upto interventions and support mechanisms for 25% of Opex of the project for first five years of facilitating PPPs in the country, including Technical commercial operations. 69Annual Report 2024-2025 During the financial year 2024-25, under the necessary support to project sponsoring authorities in Scheme for Financial Support to Public Private transaction of PPP projects. The objective of empanelling Partnerships in Infrastructure, projects with a TAs is to provide access to quality advisory support for TPC of `549.91 Crore received In-Principle PPP projects. This would help the Project Sponsoring Approval, while projects with a TPC of `354 Crore Authorities (PSAs) to appoint TAs without delay. This list were granted Final Approval. Additionally, DEA of TAs is widely used by Project Sponsoring Authorities disbursed `201 Crore as VGF under the scheme (PSAs) for onboarding TAs for PPP projects. during the same period. 5. Major Initiatives 2. Public Private Partnership Appraisal 5.1 PPP Policy-related matters Committee (PPPAC) To strengthen the Public-Private Partnership The Public Private Partnership Appraisal (PPP) ecosystem in the country, the Department of Committee (PPPAC) is the apex body for appraisal of Economic Affairs (DEA) has undertaken several initiatives PPP projects in the Central Sector. The streamlined during the financial year 2024-25. These efforts are appraisal mechanism for PPP projects ensures speedy designed to address the diverse needs of PSAs and other appraisal of projects, eliminates delays, adopts Stakeholders involved in the development/appraisal of international best practices, and promotes uniformity in PPP proposals and aim to enhance the efficiency, appraisal mechanism and guidelines. The PPPAC is transparency, and effectiveness of the PPP framework. chaired by Secretary, DEA with Secretaries of Department The initiatives focus on building the in-house capacity of of Expenditure, Department of Legal Affairs, the officials to manage PPP projects, introducing necessary Sponsoring Central Ministry/Department and CEO, NITI standardization, and fostering a disciplined and structured Aayog as members to consider and appraise the approach to PPPs. Key initiatives include: proposals for Central Sector PPP Projects. During the  National Infra Readiness Index (NIRI) is being FY 2024-25, Public Private Partnership Appraisal developed to assess the infrastructure readiness Committee has recommended 7 projects with a Total of States/UTs and central ministries. It will assist Project Cost of `35,880.42 Crores. policymakers, investors, and stakeholders in 3. Financial Support for Project Development identifying policy strengths and gaps, and help Expenses of PPP Projects (IIPDF Scheme) policy makers to improve support for sustainable The very success of PPP projects depends on infrastructure projects. how well the project is structured. Since PPP projects are  Model Request for Proposal (RfP) for the complex in nature, conceiving a project demands expertise single-stage bid process has been developed of experienced professionals in the field (Transaction to support bidders and private investors by Advisers). Generally, hiring transaction advisers for project streamlining the procurement process and development involves substantial costs and, many times, ensuring standardisation. The Model RfP will be Project Sponsoring Authorities (PSAs) face a financial available to the stakeholders for adoption after crunch in financing this cost. Thus, Department of notification. Economic Affairs (DEA) has launched the IIPDF Scheme on 03.11.2022 as a Central Sector Scheme for funding  Guidelines for Renegotiation of Central such project development expenses. IIPDF Scheme Sector PPP Contracts have been developed to provides necessary support to the PSAs, both in the Centre save PPP projects from failure and safeguarding and the State Governments, by extending financial public interest by providing a structured assistance in meeting the cost of transaction advisory framework for addressing unforeseen services engaged in the development of PPP projects. circumstances in PPP projects, ensuring project Funding under IIPDF Scheme can be for a maximum sustainability and maintaining investor amount of `5 Crore for a single proposal. Any funding confidence. These guidelines will be available to requirement over and above `5 Crore may be borne by the stakeholders for adoption after notification. the PSAs. Under this Scheme, till date, 31 proposals  Reference Guide on Optimal Risk Allocation amounting to `64.13 Crore have been approved. has been prepared to help success of a PPP 4. Empanelment of Transaction Advisors(TAs) project and to assist Project Sponsoring To create an enabling environment for stepping Authorities (PSAs) and other stakeholders by up of private investment in infrastructure and to cater to providing a detailed framework for risk allocation, State Governments demand, DEA has empanelled 12 risk balancing, and risk mitigation strategies in transaction advisors for PPP projects to provide PPP projects. 70Department of Economic Affairs I  Collaborated with the Russian Presidency of 7. Analysing various concept notes, project proposals, BRICS in preparing a Technical Report on sector reports received from the line ministries. Blended Finance Infrastructure to explore 8. Institutions: ONGC, ISA, IRFC, NIIFTL innovative financing mechanisms for enhanced private investment and infrastructure 9. Maintain liaison with various Sovereign Wealth development across member countries. Funds from Gulf countries and ensure continuous assistance to them on their ease of doing  An online portal is developed for streamlined investments in our country. submission, tracking, and processing of SFC proposals by the MoRTH. 10. Appraisal of various infrastructure project proposals in terms of compliance with relevant regulations, 5.2 Handholding/Support initiatives financial viability and appropriateness of funding To handhold State Governments, officers/officials requests. of other Central Ministries and authorities dealing with 11. Matters related to implementation of PPP matters in structuring PPP projects, three PPP recommendations of the Committee on Allocation structuring Toolkit workshops were organised during the of Natural Resources (CANR) FY 2024-25. These workshops covered sectors such as Roads and Highways, Solid Waste Management, Waste Major Policy Initiatives/ Achievements: Management, Water and Sanitation and Ports. These 1. Energy Unit facilitated the establishment of a Joint workshops were conducted in person imparting training Task Force on Investment between India and Qatar, to more than 100 participants. enhancing investment cooperation between both 5.3 Public Private Partnership (PPP) Beginner's the countries. The first meeting was successfully e-Course - Launched in 2023, the e-course is designed organized in New Delhi, setting a foundation for to cater to a diverse audience seeking to understand and future collaboration. engage with Public-Private Partnerships (PPPs). It offers 2. Energy Unit is acting as a Secretariat of the a comprehensive curriculum covering a wide range of Monitoring Committee (MC) set up to review the PPP-related topics, with a strong emphasis on practical implementation status of the recommendations of insights derived from 51 real-world case studies. The the Committee on Allocation of Natural Resources course has garnered significant interest, with over 1,950 (CANR). A periodic review and follow up is going participants from various sectors are already engaged in on with concerned ministries/ departments to the course. It has been widely recognized for its in-depth ensure implementation of these recommendations. content and practical applicability to real-world scenarios. 3. In the year 2024, Energy Unit of DEA helped the Energy Unit Empowered Committee of Secretaries (ECoS) Major functions of Energy Unit, inter alia, include the setup by M/o Coal regarding adoption of following: methodology for auction of coal and lignite mines/ 1. Energy Sector policies and proposals blocks to approve various coal mines to be offered for sale of coal through auction. 2. Investments in Climate NDCs, RE 2030 Goal, and de-carbonization of economy 4. Energy Unit is continuously engaged with the Gulf 3. External Territorial Charge: Gulf countries i.e. Bahrain, countries (i.e., Bahrain, Kuwait, Oman, Qatar, Saudi Kuwait, Oman, Qatar, Saudi Arabia, UAE, Iraq Arabia, UAE and Iraq) or investment and other 4. Matters related to OPEC Fund for International matters including maintain liaison with various Development (OFID) Sovereign Wealth Funds from Gulf countries (such as Public Investment Fund (Saudi Arabia), Abu 5. Matters related to energy sector ministries/ Dhabi Investment Authority (ADIA) & Mubadala Departments viz., Power, Coal, New & Renewable (UAE) & Qatar Investment Authority (QIA), Qatar Energy, Mines, Petroleum and Natural Gas, Atomic to ensure continuous assistance to them on their Energy and Space and appraisal and comments ease of doing investments in our country. on DCNs/ CCEA/ CoS/ ECS/ EFC/ SFC/ PIB/ DIB/ CEE Memo received from Ministry of Power, Coal, 5. The Energy Unit helped the Ministry of Mines in MNRE, Mines, Petroleum and Natural Gas, Atomic the formulation of rules under the Offshore Areas Energy and Space Mineral (Development and Regulation) Act, 2002 - 6. Preparing briefs for the Cabinet/PIB/EFC meetings/ The Offshore Areas Mineral (Auction) Rules, 2024", miscellaneous meetings. "Framing of rules under the Offshore Areas Mineral 71Annual Report 2024-2025 (Development and Regulation) Act, 2002 - Offshore NIP Facilitation Unit Areas Mineral Trust Rules, 2024 (OAMT Rules), Major functions of NIP Facilitation Unit, inter alia, contributing to enhanced transparency and include the following: efficiency in the mining sector. 1. Engagement with States/UTs in the 6. During the year, Energy Unit has appraised a large implementation of National Infrastructure pipeline number of Cabinet/ CCEA proposals from energy (NIP); related line Ministries/ Departments, like, establishment of `1000 Crores Venture Capital 2. Monitoring of performance of Ministries/ Fund for Space Sector under aegis of IN-SPACe, Departments on National Monetisation Pipeline Incentives to promote Underground coal mining in (NMP); India, Revision of ethanol price for supply to Public 3. Implementation of recommendations of Core sector OMCs for Ethanol Supply Year (ESY) 2024- Group of Secretaries on Asset Monetization 25, Criteria for mining of minerals found along with (CGAM) and other meetings on NMP; coal/lignite from coal/lignite blocks auctioned under the MMDR Act and CMSP Act, Signing of the 4. General reform Initiatives for creating an enabling "Headquarters Agreement (HQA)" between eco system for increased private sector Government of India and Global Biofuels Alliance participation in infrastructure development; (GBA) for establishment of GBA Secretariat in New 5. Country Charge of West Asian Countries of Iran, Delhi and for issuance of a Gazette notification for categorization of GBA as an International Cyprus, Israel, Jordan, Lebanon, Syria, Yemen, Organization, Amendment of the First Schedule to etc.; the Offshore Areas Minerals (Development and 6. State charge of Maharashtra and Gujarat Regulation) Act, 2002 to rationalize the royalty rates of construction Sand, Lime-mud, Polymetallic 7. Co-ordination work within the Division, etc; Nodules and Crusts and other minerals, etc. Major Policy Initiatives/ Achievements : 7. During the year, Energy Unit has helped the line 1. National Infrastructure Pipeline (NIP) (States/UTs) ministries / departments in structuring various NIP, which had started with 6,835 projects has schemes and projects through appraising a large expanded to over 12,886 projects of which around 3,027 number of PIB/ DIB/ EFC/ SFC proposals, like projects are funded/owned by the State/UT Governments. Revision in cost and investment in equity for HPCL NIP projects showcase the infrastructure investment Rajasthan Refinery Limited (HRRL), Revised Cost opportunities in the states/UTs to domestic and global Estimate (RCE) of Power Transmission and investors. Continuous engagement with States/UT Distribution (T&D) strengthening network works under Prime Minister's Reconstruction Plan (PMRP), Governments were made to improve NIP performance Development of 1200 MW solar park at Jalaun dist., in the States/UTs. Project status Snapshots of all states/ Uttar Pradesh, Development of 100 MW solar park UTs were regularly prepared and shared with states/UTs and project at Mirzapur dist., Uttar Pradesh, National and regular VC Meetings held with state nodal officers Critical Mineral Mission (NCMM), Development of for review and further improvement of the NIP Renewable Energy Parks, Implementation of Tato-I performance of the States/UTs (3x62 MW) in Arunachal Pradesh by North Eastern 2. National Monetisation Pipeline Electric Power Corporation (NEEPCO), For the period FY 21-22 to FY 23-24, the target Implementation of Heo (3x80 MW) in Arunachal envisaged under the NMP was about `4.30 lakhs crore. Pradesh by North Eastern Electric Power Against this, transactions aggregating to about `3.86 Corporation (NEEPCO), EFC Memorandum on PM Surya Ghar: Muft Bijli Yojana, etc. lakhs crore in terms of accruals or private investments were completed under the core asset monetization 8. Energy Unit has assisted the Coalition for Disaster programme. Aggregate target of `1.91 lakh crores is Resilient Infrastructure (CDRI) and facilitated envisaged for FY 2024-25 under the NMP. The NMP has various stakeholder consultations required for brought in innovative structures and frameworks towards formulating the Midterm and Final Report on attracting investment in infrastructure projects enabling "Mainstreaming Disaster Resilience into National Infrastructure Pipeline (NIP) Projects". accelerated development of infrastructure. 72Department of Economic Affairs I Annexure-I DEPARTMENT OF ECONOMIC AFFAIRS (MAIN) Representation of SCs, STs, and OBCs Total Representation Direct Recruitment By Promotion By Deputation (as on 01.01.2025) during 2024 during 2024 during 2024 Group Total SCs STs OBCs Total SC ST OBC Total SC ST Total SC ST OBC Group A 200 25 7 36 17 3 0 4 15 5 1 2 0 0 0 Group B 296 50 35 57 0 0 0 0 2 0 0 0 0 0 0 Group C 285 65 5 32 0 0 0 0 1 1 0 4 1 0 0 (Excluding Safai Karamchari) Group C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (Safai Karamchari) TOTAL 781 140 47 125 17 3 0 4 18 6 1 6 1 0 0 Annexure-II DEPARTMENT OF ECONOMIC AFFAIRS (MAIN) Representation of Persons With Disabilities (PWD) Number of Employees Direct Recruitment during 2024 BY PROMOTION 2024 (as on 01.01.2025) No. of No. of No. of No. of Vacancies reserved Appointments made Vacancies reserved Appointments made Group 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 200 0 0 0 0 0 1 1 0 0 1 1 1 2 0 0 0 0 Group B 296 0 1 7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Group C 285 2 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (Excluding Safai Karamchari) Group C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (Safai Karamchari) Total 781 2 1 11 0 0 1 1 0 0 1 1 1 2 0 0 0 0 73Annual Report 2024-2025 Annexure-I SECURITIES APPELLATE TRIBUNAL, MUMBAI (SAT) Representation of SCs, STs, and OBCs Number of appointments made during the previous calendar year Number of Employees By Direct Recruitment By Promotion By other Methods (as on 01.01.2025) Group Total SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs OBCs 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Group A 6 - - - - - - - - - - - - - - Group B 5 1 - 1 - - - - - - - - - - - Group C 11 2 - 2 - - - - - - - - - - - Group D 0 - - - - - - - - - - - - - - (Excluding Safai Karamchari) Group D 0 - - - - - - - - - - - - - - (Safai Karamchari) TOTAL 22 3 - 3 - - - - - - - - - - - Annexure-II SECURITIES APPELLATE TRIBUNAL, MUMBAI (SAT) Representation of Persons With Disabilities (PWD) Number of Employees DIRECT RECRUITMENT PROMOTION (as on 01.01.2025) No. of No. of No. of No. of Vacancies reserved Appointments made Vacancies reserved Appointments made Group Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Group A 5 - - - - - - - - - - - - - - - - - Group B 6 - - - - - - - - - - - - - - - - - Group C 11 - - - - - - - - - - - - - - - - - Group D 0 - - - - - - - - - - - - - - - - - (Excluding Safai Karamchari) Group D 0 - - - - - - - - - - - - - - - - - (Safai Karamchari) Total 22 - - - - - - - - - - - - - - - - - 74Department of Economic Affairs I Annexure-I Security and Exchange Board of India (SEBI) Representation of SCs, STs, and OBCs Total Representation Direct Recruitment By Promotion By Deputation (as on 01.01.2025) 2024 during 2024 during 2024 GRADE* Total SCs STs OBCs EWS Total SC ST OBC EWS Total SC ST Total SC ST OBC EWS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Officers 984** 138 62 279 22 0 0 0 0 0 88 13 3 0 0 0 0 0 Secretaries 68 0 0 3 0 0 0 0 0 0 12 0 0 0 0 0 0 0 Junior Asst. 1 0 0 0 0 0 0 0 0 0 0 0 0 NA NA NA NA NA Messenger 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA NA NA NA Total 1053 138 62 282 22 0 0 0 0 0 100 13 3 0 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 ** Includes employees who are on contract/deputation Annexure-II Security and Exchange Board of India (SEBI) Representation of Persons with Disability(PWD) Total Representation Direct Recruitment By Promotion By Deputation (as on 01.01.2025) during 2024 during 2024 during 2024 GRADE* P Q R S T P Q R S T P Q R S T P Q R S T Officers 16 7 10 2 0 0 0 0 0 0 3 2 1 0 0 0 0 0 0 0 Secretaries 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Junior Asst. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA NA NA NA Messenger 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA NA NA NA Total 17 7 10 2 0 0 0 0 0 0 3 2 1 0 0 0 0 0 0 0 P - Blindness and Low Vision Q - Deaf and hard of hearing R - Locomotor disabilities including cerebral palsy, leprosy cured, dwarfism, acid attack victims and muscular dystrophy S - Autism, intellectual disability, specific learning disability and mental illness T - Multiple Disabilities from amongst A to D including deaf-blindness * 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 75Annual Report 2024-2025 Annexure-I INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY Representation of SCs, STs and OBCs Total Representation Direct Recruitment By Promotion By Deputation (as on 01.01.2025) during 2024 during 2024 during 2024 * Group Total SCs STs OBCs EWS Total SCs STsOBCs EWS Total SCs STs Total SCs STs OBCs EWS Group A 81 7 3 16 3 3 0 0 0 0 0 0 0 4 1 0 1 2 Group B 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Group C 3 2 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (Excluding Safai Karamchari) Group C 0 0 0 0 0 NA NA NA NA NA NA NA NA NA NA NA NA NA (Safai Karamchari) TOTAL 84 9 3 17 3 3 0 0 0 0 0 0 0 4 1 0 1 2 Annexure-II INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY (IFSCA) Representation of Persons with Disability (PWD) Number of Employees DIRECT RECRUITMENT PROMOTION (as on 01.01.2025) No. of No. of No. of No. of Vacancies reserved Appointments made Vacancies reserved Appointments made Group 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 81 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 Group B 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Group C 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total 84 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 76Department of Economic Affairs I Annexure-I SECURITY PRINTING & MINTING CORPORATION OF INDIA LIMITED (SPMCIL) Representation of SCs, STs, OBCs Number of Appointments made during the previous calender year Representation of By Direct Recruitment By Promotion By Depution SCs/STs/OBCs (As on 01.01.2025) Groups Total SCs STs OBCs EWS Total SCs STsOBCs EWS Total SCs STs Total SCs STs OBCs EWS No. of Employees 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Group ‘A’ 373 50 22 88 3 29 2 2 7 3 123 14 4 0 0 0 0 0 Group ‘B’ 913 138 88 210 9 32 1 2 11 3 80 12 14 0 0 0 0 0 Group ‘C’ 4466 857 374 993 50 361 68 19 194 27 635 87 44 0 0 0 0 0 Total 5752 1045 484 1291 62 422 71 23 212 33 838 114 62 0 0 0 0 0 Annexure-II SECURITY PRINTING & MINTING CORPORATION OF INDIA LIMITED, (SPMCIL) Representation of Persons with Disabilities (PWD) Total Representation Direct Recruitment By Promotion By Deputation (as on 01.01.2025) during 2024 during 2024 during 2024 GRADE* P Q R S T P Q R S T P Q R S T P Q R S T 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Group A 373 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 Group B 913 1 0 10 0 3 0 0 1 0 0 0 2 0 0 0 0 0 0 0 Group C 4466 15 38 50 0 25 1 2 5 0 0 2 4 0 0 0 0 0 0 0 Total 5752 16 38 60 0 28 1 2 7 0 0 2 6 0 0 0 0 0 0 0 P - Blindness and Low Vision Q - Deaf and hard of hearing R - Locomotor disabilities including cerebral palsy, leprosy cured, dwarfism, acid attack victims and muscular dystrophy S - Autism, intellectual disability, specific learning disability and mental illness T - Multiple Disabilities from amongst A to D including deaf-blindness 77Annual Report 2024-2025 Annexure-I NATIONAL SAVINGS INSTITUTE (NSI) Representation of SCs, STs, and OBCs Total Representation Direct Recruitment By Promotion By Deputation (as on 01.01.2025) 2024 during 2024 during 2024 Group Total SCs STs OBCs EWS Total SC ST OBC EWS Total SC ST Total SC ST OBC EWS Group A 2 1 - - - - - - - - - - - - - - - - Group B 15 2 - 4 - - - - - - - - - - - - - - Group C 23 2 2 8 - - - - - - - - - - - - - - (Excluding Safai Karamchari) Group C - - - - - - - - - - - - - - - - - - (Safai Karamchari) TOTAL 40 5 2 12 - - - - - - - - - - - - - - Annexure-II NATIONAL SAVINGS INSTITUTE (NSI) Representation of Persons With Disability (PWD) Total Representation Direct Recruitment By Promotion By Deputation (as on 01.01.2025) during 2024 during 2024 during 2024 Group P Q R S T P Q R S T P Q R S T P Q R S T 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Group A - - - - - - - - - - - - - - - - - - - - Group B - - - - - - - - - - - - - - - - - - - - Group C - - 1 - - - - - - - - - - - - - - - - - (Excluding Safai Karamchari) Group C - - - - - - - - - - - - - - - - - - - - (Safai Karamchari) TOTAL - - 1 - - - - - - - - - - - - - - - - - 78Department of Economic Affairs I 79 SRIAFFA CIMONOCE FO TNEMTRAPED EHT NI TRAHC NOITAZINAGROChapter - II Department of Expenditure II Department of Expenditure 1. PERSONNEL DIVISION Secretariat Clerical Service (CSCS) upto the level of Section Officers/ Private Secretaries in the Ministry of 1.1 The Personnel Division works under the Additional Finance, apart from coordinating Parliament work as well Secretary (Personnel) and is responsible for administration as Right to Information Act (RTI) matters for the Ministry of various financial rules and regulations including those of Finance as a whole. relating to personnel matters of Central Government Employees such as regulation of pay and allowances, 1.7 Pay Research Unit (PRU) policy matters on pension, and staffing of Government 1.7.1 The Pay Research Unit was established in 1968 establishments by creation and upgradation of posts, as and deals with collection, compilation and analysis of data also cadre reviews. on actual expenditure incurred on pay and various types 1.2 The Division also deals with proposals seeking to of allowances as well as data pertaining to the strength of alter service conditions and other benefits to Government the Central Government Civilian Employees and employees with significant recurring financial implication. employees of Union Territory Administration. This unit brings out an Annual Publication titled "Annual Report on Broad instructions on Expenditure Management, including Pay & Allowances of Central Government Civilian economy measures and measures for improving quality of Employees". The brochure provides statistical information expenditure such as through Utilisation Certificates (UC) regarding expenditure incurred by the different Ministries/ are issued by the Personnel Division. Departments of the Central Government on pay and various 1.3 This Division administers the General Financial types of allowances such as Dearness Allowance, House Rules and the Delegation of Financial Powers Rules Rent Allowance, Overtime Allowance and other including issue of clarifications/ amendments thereto, and Compensatory Allowances in respect of its regular civilian coordinates with Financial Advisors of all Ministries/ employees. It also provides information on Ministry/ Departments of the Central Government. All legislative Department-wise and Group-wise number of sanctioned proposals with general financial implications are posts and numbers of persons in position. scrutinized in the Personnel Division. 1.8 RTI Cell 1.4 The Department of Expenditure (DoE), Ministry of 1.8.1 The Right to Information Act, 2005 is implemented Finance (MoF) receives Capital Acquisition/works in its true spirit and the information required to be disclosed proposals from Ministry of Defence pertaining to Army, under the Act has been uploaded on the website of the Navy, Air Force, DRDO and Coast Guard. These proposals Department. The Central Public Information Officers are received in MoF after tender evaluation and price (CPIOs) ensure timely supply of information to applicants negotiations are done by MoD. Ministry of Finance is not and prompt action is taken on appeals by First Appellate involved in the appraisal procedure of these proposals Authorities. Third party audit is conducted by RTI Section although the proposals have significant financial as per RTI Act, 2005. RTI Section works in close implications. The position of Ministry of Finance is also coordination with Central Information Commission (CIC) unique because a large number of proposals needing and this Section upload the quarterly report of RTI of this approval of CCS originating from Ministries like MEA and Department on the CIC portal and also take necessary MHA are also examined in Ministry of Finance. It is the action on the CIC hearing notices as per RTI Act, 2005. endeavor of Ministry of Finance to ensure that no duplication During the year 2024-25, 5 CIC hearing notices were of assets are created for meeting similar security received and prompt action taken on it. In addition to that environment wherein MoD, MHA or any other Ministry is a 3489 RTI applications & 174 RTI appeals received 'online' stakeholder. and 572 RTI applications & 10 RTI appeals received in 'physical form' were disposed-off in a time-bound manner. 1.5 Service matters pertaining to the Indian Audit and Accounts Service(IA&AS), Indian Civil Accounts Service 1.9 Legal Cell (ICAS) and Indian Cost Accounts Service (ICoAS) are dealt 1.9.1 Legal Section is the 'Nodal Section' of the with by this Division. Administrative assistance to the Department of Expenditure in respect of all legal matters Finance Ministers' Office is also provided by this Division. received from Central Registry of Supreme Court of India, 1.6 The Division also handles the overall various High Courts and Tribunals including other administration of the Department of Expenditure and also Ministries/Departments and also coordinates with the controls the cadre for all Central Secretariat Service(CSS)/ various Divisions/Sections of Department of Expenditure Central Secretariat Stenographer Service (CSSS)/ Central and also with Ministry of Law & Justice for all court cases. 81Annual Report 2024-2025 Legal Section may compile the information regarding 1.11.2 Unified Pension Scheme (UPS) pending court cases on monthly basis wherein Department The Union Cabinet has approved introducing a new of Expenditure is one of the respondents. Legal Section pension scheme, the Unified Pension Scheme (UPS) for monitors all the court cases hosted on the LIMBS portal. the government employees on 24th August, 2024 based The parliament questions received from Department of upon the recommendations of the NPS Review Committee Legal Affairs on legal matters are also being replied by constituted in April, 2023. the Legal Section in consultation with various sections Key Elements of UPS under Department of Expenditure. Following are the key elements of UPS as 1.10 Staff Inspection unit (SIU) approved by the Cabinet in its meeting of 24.08.2024:- 1.10.1 The Staff Inspection Unit (SIU) was set up in 1964 a) Assured Annuity will be available in the following with the objectives of securing economy in the staffing of cases: Government organizations consistent with administrative efficiency and evolving performance standards and work i. In case of an employee superannuating after qualifying service of 10 years from the date norms in Government offices and institutions wholly or of superannuation. substantially dependent on Government Grants. The Scientific and Technical Organizations are not covered ii. In case of Government retiring an employee within the purview of the SIU but a Committee constituted under the provisions of FR 56 (j) (which is by the Head of the respective Department, with a not a penalty under CCS(CCA) Rules) from representative from SIU as a Core Member, conducts study the date of such retirement. of such organization. iii. In case of voluntary retirement after a minimum qualifying service period of 25 years 1.10.2 The Financial Advisors (FAs) are main links from the date such employee would have between the SIU in the Department of Expenditure and superannuated, if the service period had the other Ministries / Departments / Offices / continued to superannuation. Organizations. All requests for staffing studies by the SIU are routed through the concerned FAs in the Departments. b) Assured annuity will not be available in case of The study reports are issued after 'on the spot' work removal or dismissal from service, resignation, measurement study are conducted by the SIU Study team etc. In such cases, UPS shall not apply. which includes discussion with the senior officials of the c) The rate of full assured annuity will be @ 50% of organization and finalization of the provision as 12 monthly average basic pay immediately prior assessment report of the SIU. The final report of the SIU to superannuation. Full assured annuity is payable is required to be implemented by the concerned after a minimum 25 years of qualifying service. In organization within the stipulated period of three months case of lesser service period, proportionate as per the instructions in this regard. assured annuity would be admissible. A minimum guaranteed annuity of Rs. 10,000 per month shall 1.11 Significant developments/policy decisions be admissible in case of exit from the NPS on taken during the year superannuation after 10 years of qualifying service. 1.11.1 Delegation of Financial Powers Rules, 2024:- d) In case of death of the annuity holder (pensioner) after superannuation, family annuity @ 60% of The Delegation of Financial Powers Rules, 2024 the annuity admissible to the pensioner which became effective from 1st April, 2024 replaces the immediately before his/her demise will be assured 1978 rules. These new rules aim to simplify financial to the legally wedded spouse (spouse legally decision - making by empowering various levels of authority wedded as on the date of superannuation). thereby reducing bottlenecks and fostering a sense of e) Dearness Relief will be available on the assured ownership and responsibility for financial decisions. annuity, minimum guaranteed annuity and family The General Financial Rules are a comprehensive annuity as the case may be. The Dearness Relief will be worked out in the same manner as set of rules and orders governing public finances in India. Dearness Allowance applicable to serving From time to time, various amendments are made by nodal employees. Dearness Relief will be payable only Departments/ Divisions in these Rules in order to adapt when payment of assured annuity commences. to changing circumstances or to improve efficiency and In cases of voluntary retirement after a minimum transparency. This Department has been entrusted with 25 years of qualifying service, calculation of the responsibility to consolidate all such amendments bi- Dearness Relief will commence from the date on annually and the last such compilation (up to 31.07.2024) which the employee would have superannuated if was issued on 07.08.2024. she/he had continued in service. 82Department of Expenditure II f) A lump sum payment will be allowed on 2.1.2 In view of the positive response to the Scheme superannuation @10% of monthly emoluments and considering the requests of the State Governments, (basic pay + DA) for every completed six months Government of India continued the Scheme of Special of qualifying service. This lump sum payment will Assistance to States for Capital Expenditure in the year not affect the quantum of assured annuity. 2021-22 with an allocation of Rs.15,000 crore including an amount of Rs.5,000 crore earmarked for providing Financial Implication incentive to States for privatisation/disinvestment of the State Public Sector Enterprises (SPESs) and The annual estimated cost of the additional monetization/recycling of assets. Out of Special Government contribution of 4.5%, as recommended by assistance in the form of 50-year interest free loan the Committee, for the first year, will be around Rs.6,250 amounting to Rs. 14,185.78 crore provided to 28 States, crore. One-time cost of around Rs. 800 crore as estimated an amount of Rs. 538.86 crore was provided to the State on account of arrear payments to the past retirees. of Madhya Pradesh, as incentive for privatisation/ Impact of UPS: balancing employee demands and disinvestments of the State Public Sector Enterprises citizen equity (SPESs) and monetization/recycling of assets in the financial year 2021-22.  UPS introduces an element of defined benefit in the form of assured pension so that employees 2.1.3 The Scheme was continued in 2022-23 with an are ringfenced from the risk and uncertainty of enhanced allocation of Rs. 1.07 lakh crore. Under Part-I market returns-linked returns. Inflation indexation of the Scheme, an amount of Rs. 80,000 crore was allocated to the States in proportion to their share of Central ensures that the real value of the pension fixed Taxes as per the award of the 15th Finance Commission. on superannuation is not eroded. In addition, incentive amounts of Rs. 27,000 crore were  UPS allows choice to the employee and the earmarked for seven reform centric areas, viz., PM Gati potential of higher than assured pension. UPS Shakti related expenditure; supplemental funding for incorporates the demands of assurance regarding priority segment of PMGSY including States' share of pension of the employees while ensuring a fiscally PMGSY; incentive for digitization, capital projects on responsible, funded and contributory pension optical fiber cable; urban reforms; disinvestment of SPSE's scheme, balancing inter-citizen and inter- & asset monetization; and scrapping of old vehicles. generation equity. Special assistance in the form of 50-year interest free loan amounting to Rs.8,11,95.3462 crore was provided to the UPS in States eligible 28 States including an amount of Rs. 20.691 crore The mechanism of UPS has been designed for that was released to the State of Madhya Pradesh as 2nd both Centre and States. However, so far the status of installment against subsequent amount of Rs. 41.3820 crore adoption of UPS by the State Government is not known. approved under Part-III under the Scheme for 2021-22. As per some media reports, State Government of 2.1.4 The Scheme was further expanded and continued Maharashtra has shown interest towards implementation as 'Scheme for Special Assistance to States for Capital of the UPS. Investment 2023-24' with budgetary allocation of Rs. 2. PUBLIC FINANCE-STATES DIVISION 1,30,000 crore. This includes an amount of Rs. 1 lakh crore under Part-I of the Scheme which has been allocated 2.1 Special Assistance to States for Capital in proportion to their share of Central Taxes as per the Expenditure/Investment: award of the 15th Finance Commission and incentive amounts of Rs. 30,000 crore for reform centric and sector 2.1.1 Considering the fiscal environment faced by the specific areas, viz; scrapping old vehicles, urban planning State Governments during 2020-21 due to shortfall in tax reforms, financing reforms in urban local bodies to make revenues arising from the COVID-19 pandemic, ' Scheme them creditworthy for municipal bonds, housing for police for Special Assistance to States for Capital Expenditure' personnel above or as part of police stations, unity malls, was launched in October, 2020 to assist the States in children and adolescent's library and digital infrastructure. boosting capital expenditure, which has a higher multiplier Special Assistance in the forms of 50 year interest free effect and enhances the productive capacity of the loan of Rs.1,09,554.2961 crore has been released to the economy. Out of special assistance in the form of 50- eligible States under the 'Scheme for Special Assistance year interest free loan amounting to Rs.11,830.29 crore to States for Capital Investment 2023-24'. provided to 27 States, an amount of Rs.2,441 crore for completing 3 out of 4 Citizen Centric Reforms (One Nation 2.1.5 The Scheme has further extended and continued One Ration Card, Ease of Doing Business, Urban Local in the financial year 2024-25 as 'Scheme for Special Bodies Reforms and Power Sector Reforms) was provided Assistance to States for Capital Investment 2024-25 also. to 11 States in the financial year 2020-21. An amount of Rs. 1.50 lakh crore has been allocated for 83Annual Report 2024-2025 the Scheme for 2024-25. This includes an amount of Rs. 2.3 Borrowings of the States 55,000 crore under Part-I of the Scheme which has been 2.3.1 As per the recommendations of the XV-FC, NBC allocated in proportion to their share of Central Taxes as of 3 percent of Gross State Domestic Product (GSDP) per the award of the 15th Finance Commission and incentive has been allowed to States for the year 2024-25. The NBC amount of Rs. 95,000 crore for reform centric and sector of the States for the year 2024-25 has been fixed at Rs. specific areas. The Scheme has multiple parts viz., Part- 9,39,717 crore at 3 percent of GSDP of the States. II (Release of balance approved amount under Part-V, Part- VI and Part-VII of the Scheme for 2023-24 - amount 2.3.2 Further, States have been allowed extra borrowing allocated is Rs. 5,000 crore), Part-III (Development of ceiling equivalent to the employer's and employee's share Iconic Tourist Centers to Global Scale-amount allocated of contribution of its employees pertaining to financial year is Rs. 2,000 crore), Part-IV (Incentives for Scrapping of 2024-25 actually deposited with the designated authority Old Vehicles-amount allocated is Rs. 3,000 crore), Part- i.e. 'National Securities Depository Limited (NSDL)/ trustee V (Stimulating Industrial growth-amount allocated is Rs. bank as per the guidelines of National Pension System 15,000 crore), Part-VI (Development of National Capital (NPS), over and above, the normal net borrowing ceiling Region-amount allocated is Rs. 1,000 crore), Part-VII of 3% of GSDP for the year 2024-25. (Modernization and Digitalization of Rural Land records and Incentives for creating the State Farmers's registry- 2.3.3 The XV-FC has recommended performance based amount allocated is Rs. 10,000 crore), Part-VIII (Incentives additional borrowing space of 0.50 percent of Gross State for Land-related reforms by State Governments in Urban Domestic Product (GSDP) to States in the power sector. areas-amount allocated is Rs. 5000 crore), Part-IX (State's This additional borrowing of 0.50 percent of GSDP is over share of CSS including urban and rural infrastructure and above the NBC. The objectives of the additional projects-amount allocated is Rs. 15,000 crore), Part-X borrowing space are to improve the operational and (Construction of working women hostels-amount allocated economic efficiency of the sector, and promote a sustained is Rs. 5,000 crore), Part-XI (Incentives for implementation increase in paid electricity consumption. This special of SNA SPARSH Model under CSS-amount allocated is dispensation has been recommended for each year for a Rs. 4,000 crore) and Part-XII (Incentives for achieving target four-year period from 2021-22 to 2024-25. fixed for Capital Expenditure for 2024-25-amount allocated 2.3.4 The additional borrowing is also allowed based is Rs. 25,000 crore). Remaining unallocated amount of on the recommendation of Ministry of Power after Rs. 5000 crore is still to be allocated under some other assessment of the performance of the State in power part/parts under the Scheme for 2024-25. Till 24.11.2024, sector as per the guidelines issued by the Department of Rs. 76,723.367 crore has been approved and Rs. Expenditure, Ministry of Finance. 50,571.419 crore has been released to States under the Scheme for 2024-25. Guidelines for the Scheme for Special 2.4 Additional Central Assistance for Externally Assistance to States for Capital Investment for 2024-25 Aided Projects have been issued on 26.02.2024 and 09.08.2024. 2.4.1 Additional Central Assistance (ACA) for 2.1.6 The State-wise details of the total amount Externally-Aided Projects (EAPs) is passed on to the approved/released as 'Special Assistance' (as loan) to General Category States on back to back basis on the States from 2020-21 to 2024-25 (till 24.11.2024) under the same terms and conditions on which these loans are 'Scheme of Special Assistance to States for Capital received by the Union Government from donor agencies. Investment 2024-25' are given in Annexure-I. However, in case of North Eastern and Himalayan States, 2.2 Special Assistance to States: special dispensation has been made whereby they received the assistance for EAPs in grant: loan ratio of 2.2.1 Post implementation of the 14th Finance 90:10. Based on the recommendations of the Office of Commission, States were empowered through the budget Controller of Aid, Account and Audit Division, Department line "Special Assistance to States" for meeting spillover committed liabilities for which Budget provision is not made of Economic Affairs, an amount of Rs. 24,742.55 crore and other need based Assistance. Accordingly, an amount has been released against the total Budget Estimates of of Rs. 10,890 crore in 2015-16, Rs. 10,900 crore in 2016- Rs. 41,900.00 crore under the 'ACA for EAPs' to States 17, Rs. 6,950.50 crore in 2017-18, Rs. 4,680.81 crore in till 24th October, 2024 during the financial year 2024-25 2018-19, Rs. 1,623.70 crore in 2019-20, Rs. 1,948.66 crore under the Demand No. 42. in 2020-21, Rs.3,766.39 crore in 2021-22, Rs. 2,271.233 crore in 2022-23 and Rs. 11695.208 crore in 2023-24 were 2.5 Cash Credit Limit released as 'Special Assistance'. In the current financial 2.5.1 States have also been allowed to avail Cash Credit year 2024-25 (till 24.11.2024), Rs. 250 crore has been released as 'Special Assistance'-General to the State of Limit of Rs. 86,122.34 crore as on 05.11.2024 on the terms Manipur and Rs 450 crore has been release as 'Special and conditions as stipulated by the Reserve Bank of India Assistance'-Capital to the State of Telangana. for the purpose of food grain procurement operations. 84Department of Expenditure II 2.6 Finance Commission Grants to States 2.6.4 To strengthen the hands of the States in the event of a natural disaster, additional financial assistance is 2.6.1 Finance Commission Division (FCD), Department granted by the Central Government from National Disaster of Expenditure undertakes processing of and follows up Response Fund (NDRF). Based on the recommendations action on the various recommendations of the Central received from M/o Home Affairs (Nodal Ministry), an amount Finance Commission including release of grants of Rs.4043.36 crore was released from NDRF for natural recommended by the successive Central Finance calamities during 2024-25 till 11/11/2024. Commissions. For the year 2024-25, the 15th Finance Commission (XV-FC) has recommended, Post Devolution 3. PUBLIC FINANCE CENTRAL DIVISION Revenue Deficit Grant, Grants to Local Bodies, Health Sector grant, Central share of State Disaster Response 3.1 Public Finance (Central) Division is entrusted with Fund and State Disaster Mitigation Fund, and additional the appraisal and approval of all public funded Schemes Central assistance from National Disaster Response Fund and Projects of the Central Ministries/PSUs. This Division (NDRF) and National Disaster Mitigation Fund (NDMF) to is divided into two units i.e. Public Finance (Central-I) and the State Governments. Public Finance (Central-II). 2.6.2 Keeping in view of the flash flood/flood/landslide 3.2 In respect of development Schemes and Projects, situation experiencing by various States during 2024, the focus has been on improving the quality of public Department of Expenditure released of Rs.5833.60 crore expenditure through better Scheme / Project formulation, based on the recommendations of Ministry of Home Affairs emphasis on outputs, deliverables, impact assessment as Central share of State Disaster Response Fund (in and convergence approach. advance) to the 13 States viz. Andhra Pradesh, Assam, 3.3 A continuous endeavor is made to rationalize the Bihar, Gujarat, Himachal Pradesh, Kerala, Maharashtra, Centrally Sponsored Schemes (CSSs) and Central Sector Manipur, Mizoram, Nagaland, Sikkim, Telangana and West Schemes (CSs) for optimal and focused use of public Bengal. In addition, to strengthen Fire services in the States, resources. assistance for expansion and modernization of Fire services is also being released to the States. Till 11/11/2024, an 3.4 Public Finance (Central) division is engaged in amount of Rs.594.28 crore has been released for Expansion working out modalities for financial assistance to CPSEs and modernization of Fire Services in the States in 2024-25. on receipt of proposal from their parent Ministries/ Departments in consultation with Budget Division, 2.6.3 Details of grant-in-aid released as per the Department of Economic Affairs. recommendations of XV-FC to the State Governments during current financial year 2024-25 are as under: 3.5 Various issues relating to subsidies on Food, Fertilizers and Petroleum, including their quantification and extension of assistance to the stake holders are also dealt (Rs. in crore) within the division. This division is actively involved along S/ Components Grants release No. during FY with the concerned Departments / Ministries, in shaping 2024-25 the subsidy policies to ensure effective targeting, coupled (Upto 11/11/2024) with the minimum burden on the Government. 1. Post Devolution Revenue Deficit 16322.00 Grant 3.6 The PFC division also deals with the various 2. Urban Local Bodies Grant 5407.53 issues of Direct Benefit Transfer (DBT) in coordination with 3. Rural Local Bodies Grant 19525.91 the DBT Mission, Aadhar seeding beneficiary's data base 4. Health Sector Grant 2525.90 and the use of the Public Financial Management System 5. Central Share of State Disaster 14878.40 (PFMS) in order to have end to end digitized information Response Fund 6. Central Share of State Disaster 1385.45 on all central expenditures encompassing CSSs, CSs, Mitigation Fund subsidies and other expenditure. 7. Central assistance from National Disaster Response Fund of 3.7 This division is responsible for the preparation of which (a) Assistance for severe natural 4043.36 outcome budgets for all Central Ministries/Departments calamities in States in consultation with the NITI Aayog. This Output-Outcome (b) For Expansion and 594.29 Framework shall be for all CSSs, and CSs dealing within Modernization of Fire Services in the States the identified measurable Outcomes in the relevant (c) Assistance for preparedness and 276.81 medium term framework. Physical and Financial outputs Capacity Building Funding Window under NDRF are targeted on a year to year basis. 8. Release of Central assistance 349.93 from National Disaster Mitigation 3.8 During the period from 01.04.2024 to 30.11.2024, Fund for Urban Flood Mitigation the Expenditure Finance Committee (EFC) Chaired by Project to the Chennai City Grand Total 65309.58 Secretary (Expenditure) recommended 24 investment proposals/scheme of various Ministries/Department 85Annual Report 2024-2025 costing Rs. 10,80,985.97 Crore (with Central share of Rs. vii. Interface with International bodies on matters 8,90,633.47 Crore. relating to Public Procurement. 3.9 Also, during the period, Public Investment Board viii. Matters related to operational issues of (PIB) chaired by Secretary (Expenditure) considered and Government e-Marketplace (GeM). recommended 17 proposals involving an amount of Rs. 55,351.29 Crores (with Central share of Rs. 26,207.54 ix. Handling of proposals relating to Global Tender Crore. Enquiry (GTE) received from all Central Ministries. 3.10 In order to speed up the appraisal process, an 4.3 Increase in Financial limits related to Public online portal has been functional since August, 2017, for Procurement uploading EFC/PIB/SFC/DIB proposals to relevant Ministries, receiving comments, fixing dates for the meeting The monetary thresholds under almost every and dispatching minutes after approval. procurement methods have been increased after nearly two decades through amendment in the relevant provisions 3.11 In April, 2022, revised format for appraisal and of General Financial Rules (GFRs), 2017 vide OM No. 1/ approval of public funded projects was issued in line with 3/2024-PPD dated 10.07.2024. 'PM GatiShakti National Master Plan' for providing multimodal connectivity infrastructure to various Economic 4.4 Revision of Manual for Procurement of Goods Zones. In October, 2023, revised format for appraisal and approval of new Public Funded Schemes was issued, to 4.4.1 Since the publication of the last Manual in 2022, make it more informative, lucid and to incorporate Output/ there have been many developments in the form of policy Outcome related targets in a logical framework. This will initiatives with their clarifications, deliberations with make the appraisal more structured and effective while stakeholders, Methodology for Assessment of placing enhanced emphasis on measurable Output/ Procurement Systems (MAPS) report 2020, Model Tender Outcome of public expenditure. Documents for Goods, etc. necessitating the thorough revision of the Goods procurement manual. Department 4. PROCUREMENT POLICY DIVISION of Expenditure has revised the Manual for Procurement of 4.1 A Public Procurement Cell (PPC) was set up in Goods which was issued in the month of July 2024. this Department in June, 2011 to take follow up action on 4.4.2 The revised Manual focuses on ease of business the Report of the Committee on Public Procurement for suppliers and clarity for the procurement professionals. (CoPP) and for related matters such as drafting of rules A wide range of topics have been rewritten such as and setting up of a Central Public Procurement Portal. clarifying extent of applicability to various entities, The Cell was gradually strengthened and a Division called categorization of procurements, identification of conflict Procurement Policy Division (PPD) was created. of interest, interest-free advance payments, new forms of 4.2 Functions of PPD performance securities, outsourcing procurement, auto- extension of bids, capping price variation and liquidated The Division deals with the following items of work:- damages, mitigating carter formation, reverse auction, rate i. Public Procurement legislation and rules, contracts, withdrawal by L1 bidders and many others notifications, orders there under; including the latest amendment to General Financial Rules (GFRs). ii. Policies relating to Public Procurement including administration of General Financial Rules 2017 4.5 Capacity Building on procurement of goods and services and contract management; policies relating to 4.5.1 It is imperative that the executives/ officers mandatory or preferential procurement; engaged in public procurement process have thorough knowledge of all the relevant rules, regulations and iii. Matters relating to standardization of procurement procedures of public procurement. For the purpose, weekly related documents; Training Programmes on Public Procurement are iv. All matters related to Central Public Procurement conducted in Arun Jaitley National Institute of Financial Portal (CPPP) set up for publishing information Management (AJNIFM), Faridabad and Administrative Staff relating to Public Procurement; Collage of India, Hyderabad with a view to educate and familiarize the concerned executives/ officers with all the v. Matters relating to electronic procurement; relevant rules, regulations and procedures of public vi. Professional standards to be achieved by officials procurement. Around 2000 officers per annum are being dealing with procurement and suitable training and trained. So far, around 13000 officers have already been certification requirements for the same; trained. 86Department of Expenditure II 5. OFFICIAL LANGUAGE 5.4 Translation work 5.1 Activities related to progressive use of Various Cabinet Notes, Notifications, Guidelines, official language General Orders, Tenders, Budget related documents, Demands for Grants, Annual Reports, starred and unstarred Department of Expenditure is responsible for the Parliamentary Questions and their answers, Parliamentary implementation of provisions of Section 3(3) of the Official Assurances, Papers related to Parliamentary Committees, Languages Act, 1963 and Official Languages Rules, 1976. Hindi section of the Department of Expenditure is Press releases and letters received from the Office of the also responsible for coordination and follow-up action on Finance Minister and Minister of State for Finance are the suggestions and instructions given by the Central translated by the Official Language Section of the Hindi Committee, Parliamentary Committee on Official Department of Expenditure. Translation of various urgent Language, Joint Hindi Advisory Committee, Central type of documents received in the section are also done in Official Language Implementation Committee and regular time bound manner. Letters received from Members Departmental Official Language Implementation of Parliament and other important persons are promptly Committee from time to time regarding progressive use replied to and requisite follow-up action is ensured. of Hindi. Implementing various incentive schemes to increase the use of Hindi in official work, setting up check 5.5 Hindi workshop points, notifying Subordinate Offices/Institutions under Hindi workshops are organized on regular basis in Official Language Rule 10(4), issuing individual orders under Official Language Rule 8(4) for doing their all the the department to help the officers and employees of the assigned official work in Hindi, nominations for Hindi department in solving the practical difficulties faced in language training and organizing Hindi Divas/Week/ working in Hindi. During the year, Hindi workshops were Fortnight are also its other functions. Besides, the Hindi organized on different subjects, in which a total of 57 officers/ Section endeavors to work in collaboration with the employees of the department were trained. Sections/Divisions/Offices of the Department in achieving targets set for the implementation of Official Language 5.6 Hindi Fortnight and Award Distribution Hindi in the Annual Program issued by the Department Ceremony of Official Language every year. On the occasion of Hindi Divas, officials associated 5.2 Compliance with the provisions of the with the official language in the department and its Official Language Act, 1963 subordinate offices participated in the Hindi Divas Celebrations and in the 3rd All India Official Language In the Department of Expenditure, under Section Conference organized by the Department of Official 3(3) of the Official Language Act 1963, all documents like notifications, resolutions, general orders, rules etc. Language in Bharat Mandapam, New Delhi on 14th and 15th and all the papers to be tabled in both the Houses of September, 2024 to increase the use of official language Parliament are issued bilingually i.e. in Hindi and English. Hindi in the official work and to motivate employees for Compliance of Official Language Rules, 1976 is being progressive use of Hindi in their day-to-day work, "Hindi ensured and the Rule 5 of the Official Language Rules, Fortnight" was also organized in the department from 14th 1976 in particular is being followed as per its true spirit. to 28th September, 2024. On this occasion, a number of competitions i.e. Hindi Essay, Noting and Drafting in Hindi, 5.3 Monitoring and inspection typing in Hindi on computer, Hindi translation and Language To ensure compliance with the Official Language Knowledge and Hindi dictation and calligraphy etc. were Policy of the Union, the Department issue letters/circulars organized. Apart from this, a campaign was started from from time to time to increase original correspondence in 01st to 30th September, 2024 for doing maximum work in Hindi in the Sections and its subordinate offices. During the official language Hindi (minimum 1500 words). Many the year, the Official Language Section of the Department officers and employees of the department participated in of Expenditure conducted official language related inspections of various sections/divisions of the these competitions/campaign with great enthusiasm. department and its subordinate/attached and autonomous 5.7 Incentive Scheme offices. Suggestions were given to overcome the shortcomings found during official language inspections In order to promote official work in Hindi in the and reviewing the inspection questionnaire. The policy department, the 'Incentive Scheme for noting/drafting originally of the Government regarding the promotion and in Hindi, initiated by the Department of Official Language this propagation of the official language is that the use of year, has also been implemented in the Department of Hindi should be increased in official work with motivation, Expenditure.This year, total 4 employees participated in the encouragement and goodwill. With this approach, the Department of Expenditure takes utmost care. scheme and were rewarded with the cash prize. 87Annual Report 2024-2025 5.8 Departmental Official Language Expenditure, Department of Investment and Public Asset Implementation Committee Management (DIPAM) and the Comptroller and Auditor General of India (CAG). The formation and meetings of 5.8.1 Departmental Official Language Implementation the Joint Hindi Advisory Committee are organised by the Committee has been constituted in the Department of Department of Revenue. The Department of Expenditure Expenditure. Meetings of this committee are being held is also a member of it. The process of reconstitution of regularly in every quarter under the chairmanship of the committee is being done by the Department of Additional Secretary (Personnel) and In-charge Official Revenue. The nominations received in this regard have Language. In the meeting, the quarterly progress reports been sent to the Department of Revenue for necessary received from the sections/offices of the department action. regarding the progressive use of Hindi are reviewed in detail against the targets set in the annual programme of 6. INTEGRATED FINANCE UNIT (IFU) department of Official Language. During the review, instructions are given to remove the shortcomings and to 6.1 The Integrated Finance Unit works under Additional increase the use of Hindi in government work and achieve Secretary & Financial Adviser (Finance) and deals with the expenditure and Budget related proposals under Grant the set targets. No.31 - Department of Expenditure which includes (i) 5.8.2 Apart from this, in the meeting, solutions to the Secretariat General Services covering the establishment problems faced by the officers/employees of the budget for the Department of Expenditure (Main Secretariat), O/o Controller General of Accounts, Central department in promoting the progressive use of official Pension Accounting Office, O/o Cost Accounts Branch language Hindi in government work are discussed. and O/o Chief Controller of Accounts; and (ii) Other Appropriate follow-up action is taken to comply with the Administrative Services covering the budget for Institute directions given by the Chairperson to ensure of Government Accounts and Finance, National Institute implementation of Official Language Policy in the for Financial Management, Contribution to International Department, 100% compliance of Section 3(3) of the Body (AGAOA) and the budget relating to payment of Official Languages Act, 1963, compliance of various check service charges to the Central Recordkeeping Agency for points issued for this purpose, uploading of only bilingual the New Pension Scheme. material on the Department's website etc. 6.2 This Unit also monitors the Monthly expenditure 5.9 Joint Hindi advisory committee under Grant No.31 - Department of Expenditure. The Finance Ministry has a Joint Hindi Advisory The allocations under Grant No.31-Department of Committee of the Department of Revenue, Department of Expenditure are as under: (Rs. in crore) Budget Estimates 2024-25 *Revised Estimates 2024-25 Grant No. Revenue Capital Total Revenue Capital Total 31 – Department of 412.68 91.46 504.14 - - - Expenditure * yet to be received 6.3 The Integrated Finance Unit expeditiously Department of Expenditure, Ministry of Finance, is the examines and disposes the financial and expenditure Principal Accounting Adviser to Government of India and proposals pertaining to the Department of Expenditure is responsible for establishing and maintaining a including the proposals for appointment of consultants, technically sound Management Accounting System. deputation of officers abroad, payments towards Course 7.2 The Office of CGA prepares monthly and annual Fees (including grants-in-aid) to National Institute of analysis of expenditure, revenues, borrowings and various Financial Management etc. duly observing austerity fiscal indicators for Union Government. Under Article 150 instructions issued by the Govt. from time to time. of the Constitution, the Annual Appropriation Accounts 6.4 The expenditure trend of Grant No.31-DoE is (Civil) and Union Government Finance Accounts are monitored consistently and strict control has been compiled and prepared by CGA and submitted by exercised over the expenditure. A report of the review is Government to Parliament which is the basis of the audit regularly submitted to the Secretary (Expenditure) on report on the Union accounts, by the Comptroller and monthly basis through DO letter. Auditor General of India(C&AG). Along with these documents, a macro level, annual overview of financial 7. CONTROLLER GENERAL OF ACCOUNTS information with concise analysis, titled "Accounts at a 7.1 The Controller General of Accounts (CGA), in the Glance", is prepared and circulated in the Parliament. 88Department of Expenditure II 7.3 CGA also formulates policies relating to general financial year. The professionalism with which principles, form and procedure of accounting for the central these accounts are prepared is evident from the and state governments, in consultation with the C&AG. It high accuracy level of about 99% in the last few administers the process of payments, receipts and years as only marginal variations have been accounting in central civil Ministries/Departments; and observed between the Provisional Accounts and prepares, consolidates and submits the monthly and final audited Annual Accounts. annual accounts of the central government (e.g. a monthly iv. The Finance Accounts of the Union Government MIS "Review of Union Government Accounts" and the is submitted to Parliament under the provision of "Annual Provisional Accounts"), through a robust financial Article 151 of the Constitution of India. reporting system aimed at effective implementation of the government fiscal policies. v. The Finance Accounts of the Union Government presents the accounts of receipts and 7.4 The organization, through its Internal Audit Wings disbursements for the purpose of the Union in respective Ministries, is responsible for assessing the Government together with the financial results adequacy and effectiveness of internal controls and disclosed by the revenue and capital accounts, soundness of financial systems in the Ministries and the accounts of the public debt and the liabilities Departments. Internal Audit activity helps the organization and assets are worked out from the balances accomplish its objectives by bringing a systematic, recorded in the accounts. disciplined approach to evaluate the effectiveness of risk management, control, and governance processes. vi. The Finance Accounts of the Central Government comprises of the accounts of the Central 7.5 Financial Reporting - Monthly and Annual Government as a whole and includes transactions i. The office of the Controller General of Accounts of Civil Ministries/Departments, Ministry of is responsible for Monthly Consolidation of the Defence, Ministry of Railways and the Union Government Accounts of India, a detailed Departments of Posts & Telecommunication. It analysis of the monthly trends of receipts, presents the accounts of receipts and outflows of payments, deficit and its sources of financing are the Central Government for the year together with presented to the Union Finance Minister every the financial results disclosed by different accounts month. The documents has over a period of time and other data coming under examination. These evolved into an extremely useful tool for accounts include the Revenue and Capital monitoring budgetary compliance and a handy Account, Public Debt account and other liabilities MIS reference for decision making. In consonance and assets worked out from the balances in the with the Government's policy towards transparency accounts. It is supplemented by the accounts in public functioning, an abstract of the Union separately presented in the form of Appropriation Government accounts is also released every Accounts for Grants and charged Appropriations. month on the Internet. The monthly and quarterly The Finance Accounts is an Auditor's presentation data can be accessed at the website http:// of the general accounts of the Government to www.cga.nic.in. This data is also compliant with Parliament. international data standards of the International vii. The Finance Accounts comprises of two Parts - Monetary Fund. Part I and Part II. Part I presents the summarized ii. With the advancement of technology this office statements in respect of Revenue, Capital, Debt, has started providing weekly and monthly flash Deposit, Suspense and Remittances transactions figures of receipts, payments and deficit to and Contingency Fund, while Part II has detailed Ministry of Finance for data dissemination and statements in respect of these transactions, along quick management decision. Daily flash figures with other related statements. Part II of the Finance are provided in the month of March, in order to Accounts is further sub-divided into two sections closely monitor various financial parameters and `A' & `B'. While section 'A' comprises of detailed targets. accounts and statements relating to Receipts and iii. In tune with the development in best practices, Expenditure on Revenue and Capital accounts, Controller General of Account's Office also section 'B' has detailed accounts and statements prepares Provisional Accounts of the Government relating to Debt, Deposit, Suspense & of India within two months of completion of the Remittances transactions and Contingency Fund. 89Annual Report 2024-2025 viii. The basic inputs for compilation of Finance milestone has been achieved under Data Gap Accounts are as follows:- Initiative Recommendation #15 for transition from 'Red' to 'Amber' label, showcasing Ministry's a) Statement of Central Transactions; commitment of sharing reliable, timely and b) Journal Entries; internationally comparable area. c) Prior Periods Adjustments; v. Even thereafter, to fulfill India's commitment, this office is continuously dissemination quarterly, as d) Proforma Adjustments; and well as annual data, to IMF in timely manner. The quarterly and annual data is also being published e) Progressive figures upto the end of the regularly on Office of CGA's official website at previous year. https://cga.nic.in. The concordance table is also ix. While the first four inputs mentioned above are regularly being updated on the suggestions of IMF received from the various accounting authorities, and this office is consistently engaged with them progressive figures upto the end of previous year are for improving quality of Union Government available in the records of Finance Accounts Section. Accounts data being submitted to IMF. x. The annual compilation "Accounts at a Glance" 7.7 Public Financial Management System(PFMS) :- provides a macro level overview of the financial information As a major initiative relating to public finance like estimates and actual of receipts and expenditure, management with focus on good governance through assets and liabilities, savings and reserves, investments, efficient use of public resources with citizen centric focus, disinvestments, debt and deficits of the Union Government, Controller General of Accounts has designed, developed in reader friendly format with concise analysis and and implemented a state of art, web based IT platform graphical representation, at one place. It is prepared on Public Finance Management System (PFMS) under the basis of audited information contained in Finance supervision and guidance of Department of Expenditure. Accounts and Appropriation Accounts. The system has enabled complete digitalization of 7.6 Government Finance Statistics (GFS) payment systems in 76 Civil Ministries/Departments for all releases made by the Central Government to the State i. In response to the 2008-09 global economic and Government and Implementing Agencies/Beneficiaries/ financial crisis, G-20 Nations identified mainly Vendors etc. statistical data gaps that, when filled, might assist the global community in early identification of, and The PFMS provides modules for end-to-end digital in developing responses to, impending economic payments, Collection of Receipts, Accounting, and financial crisis. The two gaps, inter-alia, that Reconciliation and Financial Reporting. PFMS has also were apparent in India's statistical system were been providing a robust IT platform for more effective cash comprehensive, are high-frequency Government management in the GoI through "Just in time" transfer of Finance Statistics (GFS) and Public Sector Debt funds and complete tracking of realization of funds from Statistics (PSDS). These were designated as Data its release to its credit into the bank account of intended Gap Initiative Recommendation DGI-II15 and DGI- beneficiaries. II16 respectively, and were to be complied and PFMS being one of the transformative initiative disseminated according to international and part of major financial reforms has played a pivotal standards; i.e. the Government Finance Statistics role in revolutionizing the financial administration of Manual, 2014. Government of India and also makes a direct and significant ii. The initial concern was to develop a concordance, contribution to the Digital India Initiative of Government of mutually agreed with IMF, for mapping GoI India accounts to GFSM 2014 accounts. Further, a 7.7.1 Single Nodal Account (SNA) Central:- quarterly template was also to be developed for data submission. Budget provisions for a Centrally Sponsored Scheme constitutes releases to States, UTs, UTs without iii. The Office of Controller General of Accounts in legislature and the agencies implementing the scheme. association with South Asia Regional Training and There are some components of the CSS where 100% Technical Assistance Centre of IMF, has prepared funding is done by Govt. of India and scheme guidelines a concordance table which was duly agreed by have provision of releasing funds directly to Implementing IMF. Thereafter, in a short span of time, O/o CGA Agencies. DoE vide para 23 of OM dated 23rd March 2021, has submitted GFS data for 11 quarters starting had given the exemption from notifying SNA and opening FY 2020-21 in one go, in the format prescribed an SNA account for releases to those CSS having no State by IMF. share and where funds are released by the Ministry directly iv. Consequent to these efforts, a significant to the Implementing Agency. 90Department of Expenditure II Now DoE vide OM dated 8th Feb 2023 has deleted vi. An effective tool to facilitate Government para 23 of the DoE's guidelines dated 23rd March, 2021. disbursements in the pandemic like situations. Thus in order to implement SNA system uniformly for a CSS, PFMS was directed to develop 'SNA - Central' module Thus, the e-bill system has great potential to to facilitate the release of CSS funds directly to Central further strengthen transparency, accountability, and implementing agencies. efficiency in Government payment system and will prove to be a great citizen centric initiative in Public Finance Accordingly, SNA - Central module was developed Management. The processes flow followed in e-bill system and made live on 23rd May 2024. SOP for the same was is fully compliant to Information Technology Act, 2000. prepared and circulated to all stakeholders for easy on Necessary approvals of Ministry of Electronics and boarding. The CSNA module is available for Program Information Technology (Meity) and UIDAI have been Divisions and implementing agencies. Ministry will identify the CSS where some components are 100% financed by received for Aadhaar based authentication (e-sign). Govt. of India and scheme guidelines have the provision of A Document Management System (DMS) has release of funds directly to Implementing Agencies and been made a part of the e- bill system in which all electronic further on board them to CSNA system following the SOP. documents (bills, invoices, sanction orders, supporting Implementation of SNA - Central enables documents, vouchers, pass orders/return orders etc.) will implementing agencies to track the utilization of funds till be stored and can be accessed by various users to view the last mile. and could also be retrieved at any stage for post facto scrutiny, audit etc. 7.7.2 e-Bill - End to end digitisation of bills/claims processing:- The e-bill initiative was launched on 2nd March, In pursuance of the Digital India Initiative of Hon'ble 2022. It is proposed to be rolled out in all offices of Prime Minister, it was decided to develop a system to Ministries/ Departments of Government of India in phases. enable end to end digital processing of bills and claims The system has been implemented in 509 Pay & Accounts from Vendors, suppliers, contractors and all other types Offices (PAOs) of all Civil Ministries/Departments. of payees of Government. The system was developed in the Public Financial Management System (PFMS) for the 7.8 Technical Advice on Accounting matters use in all Civil Ministries and Departments. Currently, 7.8.1 Article 150 of the Constitution provides that "The payments to different types of payees in these Ministries accounts of the Union and of the States shall be kept in and Departments are done through a mixed system of such form as the President may, on the advice of the physical and digital modes. While the payments are done Comptroller and Auditor-General of India, prescribe." Note mostly through electronic mode without involvement of any to Rule 3 of Government Accounting Rules, 1990 provides paper instruments like cheques/DDs, the claimants are still required to submit physical bills/claims to the that "this function is exercised by the Controller General authorities for scrutiny. With the initiative of e-bill, the of Accounts, Ministry of Finance (Department of complete Payment system has become paperless. Expenditure) on behalf of the President of India." In the e-bill system, vendors/suppliers/other 7.8.2 Expenditures are classified according to the claimants can digitally upload their bills and the supporting function, programme, and their economic nature using a documents through digital signature/e-sign certification for fifteen digit numerical code. Receipts are classified further processing of payments. The system brings about according to their nature and source. following advantages to the Government payment system: 7.8.3 In terms of Rule 26 of GAR, 1990, the Controller i. Convenience to vendors/suppliers/contractors in General of Accounts office administers the 'List of Major submitting their bills/claims without physically and Minor Heads of Account of Union and States (LMMHA)', approaching the offices. which contains the classification of account heads upto ii. Shorter bill payment cycle after delivery of store/ Minor Head level (and some Sub/Detailed Heads under services as the time taken in physical bill some of them) in Government Accounts. Any amendment submission shall be truncated. in LMMHA is carried out on advice of the Comptroller and Auditor General of India (C&AG). In cases involving policy iii. Online tracking of the bill position by vendors/ on Accounting Procedure, the Budget Division, Department suppliers/contractors. of Economic Affairs, Ministry of Finance is also consulted. iv. More effective audit trails in the payment system. 7.8.4 The Object Heads have been prescribed under v. Environmental benefits on account of elimination Government of India's Orders below Rule 8 of Delegation of paper requirements. of Financial Power Rules,1978. The power to amend or 91Annual Report 2024-2025 modify Standard Object heads and to open new Object 7.10 Institute of Government Accounts and Heads rests with the Department of Expenditure, Ministry Finance (INGAF) of Finance on the advice of the Comptroller and Auditor 7.10.1 The Institute of Government Accounts and Finance General of India. Department of Expenditure in consultation (INGAF), established in February 1992, is the premier with Controller General of Accounts Office, Comptroller training arm of the Controller General of Accounts (CGA), and Auditor General of India (C&AG) Office and Budget Ministry of Finance, Government of India. It focuses on Division of Department of Economic Affairs (DEA) have government accounting, financial management, and public reviewed the Standard Object Heads, the revised Object financial systems. INGAF operates regional training Heads have been notified on 16.12.2022 and have been centres in Chennai, Kolkata, Aizawl, and Mumbai and is implemented with effect from the financial year 2023-24. recognized as an "AtiUttam" Central Training Institute by the National Accreditation Board for Education and Training 7.8.5 Controller General of Accounts administers (NABET). Central Government Account (Receipts and Payments Rules) and framing or revision of rules and other manuals 7.10.2 INGAF is a premier institute in the field of imparting relating thereto. Central Government Account (Receipts training to participants from countries under ITEC and Payments) Rules, 2022 have been prescribed in two programme in collaboration with Ministry of External Affairs. In line with this, in Financial Year 2024-25, INGAF parts (i) RPR, 2022 and (ii) Subsidiary Instructions to RPR, is organizing 4 ITEC Courses namely "Government 2022 (detailed procedures and forms) RPR, 2022 contains Accounting and Financial Management", "Budget rules regulating the custody of the Consolidated Fund of Formulation and Execution with Special focus on Gender India, the payment of money into such funds, the and Child Budgeting", "Public Expenditure Management" withdrawal of money there from, the custody of public and "Digital Payment System and Infrastructure in India" money other than those credited to such funds received in which participants from various ITEC partner countries by or on behalf of the Government of India, their payment will be taking part. into the Public Account of India and the withdrawal of money from such Account and all others matters 7.11 Mission Karmyogi and Digital Learning connected therewith or ancillary thereto. INGAF continuously thrives to raise its training 7.9 Monitoring Cell profile both in terms of magnitude and eminence. To facilitate and build the capacity of the officials, INGAF in Monitoring Cell, is entrusted with the work of co- collaboration with Capacity Building Commission has ordination of timely submission of Action Taken Notes meticulously curated the digitized course on FRSR III (ATNs) on C&AG paragraphs, Action Taken Replies (ATRs) (Leave Rules), under Mission Karmayogi which has been on PAC paragraphs and Explanatory Notes (ENs) on successfully launched by Hon'ble Finance Minister during saving of Rs. 100 crore and above and excess expenditure, iconic week of Azadi Ka Amrit Mahotsav. Similar courses as per direction of Public Accounts Committee. on FRSR-1, FRSR-II, FRSR-IV & FRSR-V have been Submission of Action Taken Notes/Action Taken Replies launched. INGAF is in the advanced stages of publishing and Explanatory Notes are being done through the Audit the courses on "Fundamental of government accounting, Paras Monitoring System (APMS) Portal, which facilitates Advance government accounting, Overview of budget preparation process, Budget execution & monitoring by online submission of ATNs/ATRs/ENs to Lok Sabha Ministries/Departments and Overview of PFMS & its Secretariat. Monitoring Cell is administrator of APMS Portal Functionaries to be posted on iGot Portal. dealing with its development, maintenance and providing Quarterly training to users of APMS Portal. INGAF remains a leader in capacity building for government financial management in India, fostering The number of ATNs/ATRs on C&AG/PAC international partnerships, and adapting to digital paragraphs and Explanatory Notes submitted/settled transformation to meet the growing demands of public through APMS Portal to the Lok Sabha Secretariat (PAC administration and governance. Branch) during 2024-25, are as under:- 8. CHIEF ADVISOR COST S.No. Subject Paragraphs/Explanato 8.1 The Office of Chief Adviser Cost (CAC) is one of ry Notes submitted to the attached offices of Department of Expenditure, Ministry PAC during 01.04.2024 of Finance. to 26.11.2024 8.2 The Office of CAC is rendering advice to the 1. C&AG Paragraphs 583 Central Government Ministries/ Departments/ Organizations on Price/Cost related issues and financial 2. PAC Paragraphs 374 matters, covering wide spectrum of sectors/areas. The O/o CAC is engaged in the following major thrust areas 3. Explanatory Notes 46 like: 92Department of Expenditure II i. Providing inputs for rationalization of cost of xii. Reviewing the rates of milling charges of paddy projects / schemes of various Ministries / based on value of various by-products. Departments in various committees e.g. xiii. Fixing of fair price of Tear Smoke Units produced Expenditure Finance Committees (EFC), State by BSF Tekanpur. Finance Committees (SFC), Public Investment Board (PIB), Delegated Investment Board (DIB), xiv. Revision of Fixed Cost of Urea manufacturing Advisory Committee for consideration of Techno- units. economic viability of Major / Medium, Flood Control and Multipurpose Projects; xv. Exploratory drilling costs of coal and lignite under Central Sector Scheme. ii. Examining time & cost overruns or projects in Revised Cost Committees (RCC) for identification 8.3 Cadre Administration:- The Office of CAC is the of reasons relating to time and cost overruns and cadre controlling office for the Indian Cost Accounts Service providing inputs for cost rationalization; (ICoAS),which broadly encompasses Recruitment, transfer/posting and career progressions of ICoAS Officers. iii. Fixing advertisement rates for Print Media, FM It also looks after training requirements of the officers for Radio, Television, Internet and social media for continuous upgradation of their knowledge and skills, in Central Bureau of Communications (erstwhile addition to rendering professional guidance to the ICoAS DAVP); officers working in different participating organizations. iv. Assisting Central Government Ministries/ ICoAS has the sanctioned strength of 218 officers which Departments/ Organizations in price/cost related are recruited at Level-10 by UPSC from among the issues, in fixing fair prices for various services/ professionally qualified Cost Accountants / Chartered products and rendering advice to various Accountants. Thirty Five officers recommend by UPSC Ministries/ Departments in cost matters and for during 2023-24 joined the service and these were deployed determination/fixation of fair prices of the products on induction training for two weeks at AJNIFM, Faridabad. and services supplied/rendered to Government. A proposal for recruitment of 36 more officers was also submitted to UPSC during 2023-24, examination for which v. Undertaking major studies like determination of was held on 19.10.2024. cost / fair price of postal products/stamps and coins supplied by SPMCIL to postal department 8.4 Representation in Revised Cost Committees :- & RBI respectively, rails supplied by SAIL and In pursuance of Ministry of Finance, Department of traction supplied by BHEL to Ministry of Railways, Expenditure's Office Memorandum No. 24(35)/PF-II/2012 Contraceptives supplied by HLL Lifecare Limited dated 05th August, 2016, Office of Chief Adviser Cost has to Ministry of Health & Family Welfare and represented in 70 Committees for Revision of Cost Continuously Operating Reference Stations Estimates in various Ministries/ Departments involving a (CORS) Services provided by Survey of India etc.; total value of Rs. 3,48,780/- crore during the period from vi. Examination/verification of claims between April, 2024 to October, 2024. Proactive role of this Office Government Departments/ Public Sector in the Revised Cost Committee has facilitated Undertakings and suppliers arising out of purchase rationalization of revised cost estimates. contracts; 8.5. Representation in EFC/SFC/PIB/DIB :- This vii. Vetting of claims under Price Support Scheme office has represented and offered comments in 17 EFC/ and Price Stabilization Fund for Perishable SFC/PIB/DIB meetings of various Ministries/Departments Agriculture produce and Cereals submitted by involving a total value of Rs. 1,29,000/- crore during the Implementing Agencies like NAFED/FCI etc. and period from April, 2024 to October, 2024. State Governments; 8.6 Committees Represented :- O/o CAC owing to viii. Examination of cost estimates, evaluation of the their expertise in costing/finance/commercial accounting financial feasibility and other financial parameters have also served as Chairman/Members on the following of the High value Infrastructural Projects like Rail, major multidisciplinary Inter-Ministerial/ Expert Highways, Power, Education Sector etc. referred Committees: by DoE. i. General Body of Arun Jaitley National Institute of ix. Valuation of immovable mine infrastructure assets Financial Management, Faridabad under the relating to coal blocks. Chairmanship of Union Finance Minister; x. Fixing of price of destruction of EVMs. ii. Board of Governors of Arun Jaitley National Institute xi. Fixation of rate of Nuclear Grade Ammonium-di- of Financial Management, Faridabad under the Uranate (NGADU) supplied by IREL to NPCIL. Chairmanship of Finance Secretary; 93Annual Report 2024-2025 iii. Special Committee for Inter-linking of Rivers under Adviser (Cost), Department of Expenditure, Ministry of the Chairmanship of Union Minister for Jal Shakti; Finance and comprises of ten other members from different Departments/ Ministries. The Committee examined the iv. Advisory Committee for consideration of Techno- terms of reference in detail and after obtaining inputs from economic Viability of Major/ Medium, Flood various Ministries/Departments/Organisations and detailed Control and Multipurpose Projects (coordinated consultation with various stakeholders including Regulatory by Central Water Commission) under the Bodies and the Industry Associations, submitted its report Chairmanship of Secretary (Water Resources); in January 2024. v. Expert Committee on Nutrient based Subsidy 9. ARUN JAITLEY NATIONAL INSTITUTE OF Policy of Fertilizers; FINANCIAL MANAGEMENT (AJNIFM) vi. Resolve the issue of interest on delayed payment 9.1 Introduction to HIL India Ltd under the Chairmanship of AS&FA, MoH&FW; AJNIFM was set up in 1993 as a Society. The vii. National Pharmaceutical Pricing Authority (NPPA) Union Finance Minister is the President of the AJNIFM under the Chairmanship of Chairman, NPPA; Society and Secretary (Expenditure) is the Chairman of the Board of Governors. It began with the core objective of viii. Governing Body of Tear Smoke Unit, Border imparting training to Officer Trainees (Probationers) of the Security Force (BSF), Tekanpur(Gwalior) under six organized Accounts and Finance services. However, the Chairmanship of Director General, BSF; over the years, the Institute has expanded its activities ix. Committee on Disposal of Chana procured under with four long term programs and a dynamic repertoire of Price Support Scheme (PSS) & Price Stabilization short-term programs. In the process, AJNIFM has been Fund (PSF) to States / UTs at a discounted rate able to carve a unique identity for itself as a premier over issue price of utilization under various welfare Institute of Ministry of Finance in professionalizing Public schemes like Mid-Day-Meal, Public Distribution Financial Management and Public Procurement. System, ICDP etc; 9.2 Performance and Achievement x. High Level Committee for the Study on Cost of The AJNIFM being the institute for training of Group Health Care Services in India constituted by 'A' probationers of organized accounts and finance Institute of Cost Accountants of India; services, applied for accreditation at National Standards xi. Committee for review of Policy issued by MHA on for Civil Services Training Institutions (NSCSTI), through fixation / recovery of CAPFs Deployment Charges Capacity Building Commission (CBC), National in the States for various duties; Accreditation Board of Educational Training (NABET) under Mission Karmayogi. xii. Committee to determine the base price of Poppy Straw; The Institute registered on NSCSTI Portal and underwent a comprehensive assessment under following xiii. Committee on Comprehensive Multi Hazard Risk 08 pillars consisting of 59 metrics: Financing Strategy (CMHRFS) being developed under National Cyclone Risk Mitigation Project Pillar 1: Training Needs Assessment and Course Design (NCRMP), NDMA; Pillar 2 : Faculty Development xiv. As members of various Project Appraisal & Pillar 3 : Resource and Training Targets Technical Scrutiny Committees (PATSC) Pillar 4 : Trainee Support constituted by NHAI for appraisal of Road Construction Projects falling under Bharatmala Pillar 5 : Digitalisation and Training Delivery Project. Pillar 6 : Collaboration xv. As member of Rate Structure Committee of CBoC Pillar 7 : Training Evaluation and Quality Assurance (erstwhile DAVP). Pillar 8 : Operations and Governance 8.7 Review of Cost Accounts Records & Cost Audit :- Each pillar represented a unique challenge, In order to review the "Companies (Cost Records demanding an in-depth analysis of our practices, systems, and Audit) Rules, 2014", and to recommend appropriate and outcomes. The rigorous nature of the evaluation changes/modifications in the same, MCA constituted a Committee vide its OM NO. F.NO. 52/15/CAB/2023 dated process tested the mettle of our institute, requiring us to 04/10/2023 with the approval of Hon'ble Minister of Finance showcase excellence in every facet of our operations. The and Corporate Affairs under the Chairmanship of Chief elaborated information on 59 metrics was uploaded on 94Department of Expenditure II the NSCSTI portal and the desktop assessment exercise organisations, 56 programmes were Sponsored (conducted received 02 Non-Confirmatory (NCs). Upon submission for individual organisations based on their peculiar needs). of NC reports the onsite assessment was done. A Capacity Building Commission has accredited Committee of 03 Officers from CBC, Quality Council of AJNIFM as '+ÉÉÊiÉ =iBÉßE­]' (Excellent) with 4 star rating at CBC's India visited the Institute for onsite assessment. National Standard. Despite the challenges, AJNIFM received a high 9.4 Major schemes/programmes implemented rating by Committee of CBC. The Institute has been through the Departments/Division accredited by Capacity Building Commission as +ÉÉÊiÉ =iBÉßE­] with 4 star rating at National Standards. 1. MoU between 'Madhusudan Das Regional Academy of Financial Management(MDRAFM) 9.3 Significant developments - Training Bhubaneswar' and AJNIFM on 21.05.2024 for 02 Programmes years. 9.3.1 AJNIFM conducts five long term programs. These 2. MoU with CGDA on 6th March 2024 for research, are as under: innovation and the exchange of knowledge in i. Professional Training Course - for Officer Trainees defense finance, accounting and related areas. of various Accounts and Finance Services of 3. MoU with ISTM on 1st October 2024 for Capacity twenty six weeks duration. Building, Research Projects, Faculty Exchange, ii. Master of Business Administration in Financial Mission Karmyogi and Resource sharing Management - for mid-level officers of Central and 4. MoU with Controller General of Defence Accounts State Governments, Autonomous Bodies & on 07th November, 2024 to conduct Phase III, IV Defence Services. & V of Mid Term Career Training Programme for iii. Master of Business Administration (Finance): It IDAS officers in collaboration with Indian School focus on Financial Analysis, Financial Modelling of Business, Hyderabad. & Forecasting, Big Data Analytics and Risk 5. MoU with Indian School of Business, Hyderabad Management etc.The programme is comprehensive on 07th November, 2024 to design and deliver the in nature, covering all major areas of financial Mid Term Career Training Programme Phase III, markets viz., Equity, Debt, Mutual Funds, Equity IV & V for the IDAS officer under CGDA. Derivatives, Currency Derivatives, and Commodities etc. for mid-level officers of Government & others. 9.5 Initiatives relating to Gender Budgeting and Empowerment of Women iv. Post Graduate Diploma in Government Accounting and Audit (PGDG&A) - It is a one year programme Ministry of WCD has designated AJNIFM as Nodal to upgrade the technical skills of Group-B officers Centre for Gender Responsive Budgeting (GRB) at National of the Civil Accounts Department. Level. The mission of GRB Cell is v. Executive Business Management Course for • To promote and strengthen knowledge and skill Armed Forces personnel - It is a 06 month course development for women's empowerment for Armed Forces Personnel who are likely to retire in next one year. The First DGR Course (2023- • To raise awareness about gender equality, health 24) with 30 participants was held from 20.11.2023 and nutrition, and tackle social and economic to 06.05.2024. The second DGR 2024-25 has challenges. commenced from 18th November 2024. ISRO has given a consultancy work on 9.3.2 Apart from its regular long term programs, 'Assessment of Gender Sensitivity matters in Department AJNIFM conducts short term training programs/ of Space/ISRO(HQ)' to AJNIFM Management Development Programmes (MDP) on various aspects of Finance and Public Financial Management. 9.6 Inputs on E-governance Participants include officers from Central Government, 9.6.1 Dissemination of knowledge on new initiatives of State Government, Autonomous Bodies, PSUs, Defence the Government: Whenever there are new initiatives of the & Paramilitary Forces etc. These short-term programs Central Government, AJNIFM has been mandated to deal with specific themes and are specially tailored to launch special training drives to cover all Government address the needs of the participants and sponsoring entities. In fulfilment of this mandate, AJNIFM has run organizations. As on 31.10.2024, AJNIFM has conducted 71 MDPs and 2249 officers have participated. While 15 several training programs on Public Procurement including programmes were open for nomination of officers of various GeM. 95Annual Report 2024-2025 9.6.2 AJNIFM has implemented the *Learning 273 auditee units within the jurisdiction of Internal Management System (LMS)* in long term programmes Audit. namely PTC, MBA(FM) & MBA(Fin.) where all the v. Budget related work for nine (9) Grants pertaining Sessions, Study Material, Teaching Plan, Handouts, Quiz, to Department of Economic Affairs, Department Assignments, Class Test and Attendance etc. are being of Financial Services, Department of Expenditure, organized / uploaded through the Portal. Transfer to States, Department of Revenue, 9.6.3 AJNIFM has uploaded 04 e-Learning courses Department of Investment and Public Asset namely Fundamental Knowledge of Financial Statements, Management and Department of Public Principles of Preparation of Financial Statements, Enterprises is vested with O/o CCA. Understanding Financial Statements & Analysis of vi. Providing support staff to Controller of Aid Financial Statements on iGOT platform under Mission Accounts and Audit (CAAA). Karmyogi. vii. Pension authorization under the Pension Rules 10. CHIEF CONTROLLER OF ACCOUNTS to the officials retiring on superannuation, seeking (FINANCE) voluntary retirement and to the families of 10.1 The Chief Controller of Accounts (CCA) is overall deceased employees/pensioners. in-charge of the payment and accounting set up of the viii. Pension payment to foreign pensioners residing Ministry, supported by three Controller of Accounts, two in India on behalf of Sri Lanka, Singapore, UK Deputy Controllers of Accounts, two Assistant Controllers and Myanmar. of Accounts, 41 Senior Accounts Officers and 309 other staff members at various levels. ix. Accounting and monitoring of Loans advanced to foreign countries. 10.2 Function of the CCA Organization x. Accounting of total receipts and payments of the i. Payments and accounting functions of six entire central Government for CGEGIS (Central Departments in Ministry of Finance viz., Government Employees Group Insurance Department of Economic Affairs, Department of Scheme) and calculation & accounting of interest Expenditure, Department of Revenue, Department liability of GoI under both the savings fund and of Investment and Public Asset Management, Insurance fund components of this scheme. Department of Financial Services and Department of Public Enterprises. xi. Provide support for the settlement of C&AG audit Para. ii. Financial reporting to the Chief Accounting Authority (i.e. the Secretaries of the respective xii. Responsible for transfer of funds to and from CFI Departments) and to the Controller General of to Public Account. There are 15 such Funds in Accounts. The monthly accounts, Appropriation the Department of Economic Affairs, 2 in Accounts and Finance accounts pertaining to six Department of Revenue, and 1 in Department of departments of the Ministry of Finance are sent Expenditure. to the office of the Controller General of Accounts xiii. Formulation of detailed Accounting procedures in for their consolidation into the Accounts of respect of the Funds maintained under Public Government of India. Account of India. iii. The Scheme of Departmentalization of Accounts xiv. Settlement of the cases relating to combined had envisaged a system of management pension, pro-rata pension, leave encashment, accounting. O/o CCA prepares monthly and leave salary and pension contributions, revision quarterly review statements for receipt and of pension cases etc. of the absorbed employees expenditure and submits the same for information of SPMCIL, after the corporatization of Mints and of the Secretaries of the Departments. The Presses, in coordination with the Corporate office summary statements are also uploaded on the of SPMCIL, field units and the Administrative Ministry's official website. Division in the Ministry. iv. Internal Audit is the responsibility of the O/o CCA. 10.3 Highlights of important functions In the Ministry of Finance, the Internal Audit Wing undertakes the audit of all DDOs, attached and 10.3.1 Internal Debt Accounting and Reporting subordinate offices including Banks who are i. Issue of New Loans and thereby bringing into handling Government Schemes such as Public account all transactions associated with the issue Provident Fund, Special Deposit Schemes and of New Loans on the basis of detailed information Senior Citizen Savings Scheme. There are about provided by the Reserve Bank of India. 96Department of Expenditure II ii. Accounting of the discharged loans which inter- 10.3.2 Monitoring system for transfer of funds from alia involves the reconciliation of loan balances the Ministry of Finance to State Governments recorded in the books of the O/o CCA with those i. Under the Public Financial Management System of the Reserve Bank of India and thereby (PFMS) implemented under the aegis of CGA, preparation of Statement (14A) for submitting it scheme wise funds released to the states are to the Finance Account Section, CGA Office and visible on the PFMS portal. Under this system, Accounting of Buyback of Government Securities the sanctions are transmitted to Public Financial raised by Government of India. Management system (PFMS) Portal based on which Inter Government Advices (IGA) are iii. Compilation of Consolidated Abstract of Rupee generated and sent to RBI, Nagpur in respect of Loans (Transactions related to such loans are 28 States. IGA advice in respect of State dealt by the Internal Debt & Account Section) are Government of Sikkim and Delhi are sent to RBI, brought into accounts. Delhi by special messenger. iv. Accounting of securities, shares etc., purchased ii. Grants-in-aid amounting to Rs 67331.32 crores or otherwise acquired held in the Cash Balances towards Externally Aided Projects, Finance and Interest or dividend thereon. Commission Grants including Grants-In-Aid for v. Monitoring the timely payments of principal and State Disaster Response Fund & Compensation payment of interest in respect of all such loans. to State/UT Government for Revenue Loss and Rs 4637.66 crore towards assistance to States vi. Accounting of all securities issued to International from NDRF for calamities of severe nature were Financial Institutions like International Monetary released to State Government through PFMS Fund, International Bank for Reconstruction and portal in Financial Year 2024-25 (upto 20th Nov., Development etc. 2024). vii. Accounting of Special Government of India iii. During the Financial Year 2024-25 (upto 20th Nov., Securities issued against investment made by 2024) no amount has been released as Grant-in- National Small Saving Fund (NSSF). Aid to States /UTs for Revenue loss in implementation of Goods and Service Tax (GST) viii. Accounting of Special Government of India by Department of Revenue. Securities/ Bonds issued to Nationalized Banks, Special Government of India Bonds issued to Oil iv. During the Financial Year 2024-25 (upto 20th Nov., companies, FCI, Fertilizer Companies and Special 2024) State share of Taxes to the tune of Rs. Securities issue against securitization of balances 8,12,062.93 crores was released to State/UT under Postal life Insurance which are kept under Governments through PFMS portal. Public Account. v. The time gap between the processing of sanctions on PFMS portal and reporting of the same on e- ix. Accounting of different Saving Schemes of Lekha is now nearly on real time basis. Government of India. vi. In case of any default towards repayment of x. Preparation of the Quarterly and Annual Statement Principal and Interest by any State Government, of Internal Debt balances for submission to the the Consolidated Fund of State being maintained Finance Accounts Section of the Controller by RBI is debited on the advice of this office. General of Accounts. 10.3.3 Internal Audit xi. Monitoring the timely payment of Principal and payment of interest in respect of all Securities, i. The Revised Charter of Financial Advisors released Loans, Special Securities, Compensation & Other by the Ministry of Finance envisages the Roles Bonds etc. and further reconciliation with and Responsibilities of the O/o Chief Controller of Accounts. Accordingly, Internal Audit functions Quarterly Statement received from DGBA, Central under the control and supervision of the CCA and office, Mumbai. focuses on the Audit of all the DDOs and xii. Reconciliation of all Treasury Bills & Cash subordinate offices including Banks who are Management Bills with Monthly and Quarterly handling Government Schemes such as Public Statement received from Public Debt Office, Provident Fund, Special Deposit Scheme and Mumbai and DGBA, Central Office, Mumbai. Senior Citizen Deposit Scheme. This involves appraisal, monitoring and evaluation of individual xiii. Calculation of Average Rate of Interest chargeable schemes and assessment of adequacy and on the Capital Outlay of the Central Government. effectiveness of internal controls in general, and 97Annual Report 2024-2025 soundness of financial systems and reliability of Audit, Infrastructure Management, Human financial and accounting reports in particular. Resource Management and System Management During the year 2024-25 (upto 20th Nov. 2024) ( IT ). audits of 62 units have been conducted by the ix. E-office has been implemented in all offices Internal Audit Wing, DEA, Ministry of Finance, (including outstation Pay & Accounts Offices) New Delhi. under O/o CCA, Ministry of Finance. ii. The BFI wing of the Internal Audit Wing is 11. CENTRAL PENSION ACCOUNTING OFFICE mandated to check delayed remittances by banks, of deposits under NSSF and impose 11.1 The Central Pension Accounting Office (CPAO) penalties on such delayed remittances. Currently, was established w.e.f. 1st Jan, 1990 for Payment and banks are liable to pay penal interest for the entire Accounting of Central (Civil) Pensioners and Pension to period commencing from the date of receipt at Freedom Fighters, Judges of High Court/ Supreme Court, receiving Branch of the Bank to the date of Ex MPs etc. CPAO is a subordinate office under the settlement with RBI (CAS) Nagpur beyond the Office of the Controller General of Accounts, Ministry of Finance, Department of Expenditure. It has been entrusted prescribed T + 1 day (including holidays) where with the responsibility of administering the scheme of T indicates the transaction day. payment of pension to Central Government (Civil) 10.4 Achievements during the year Pensioners including UTs, Delhi Administration except Railways, P&T and Defense through authorized Banks. i. Recovery of outstanding delay penal Interest (DPI) Its core functions are: from Banks: Audit of the banks handling Public Provident Fund-1968, Senior Citizen Saving • Issue of Special Seal Authorities(SSAs) Scheme 2004, Sukanya Samridhi Account-2016 authorizing payment of pension in fresh as well & Kisan Vikash Patra-2015 scheme is conducted as revision of pension cases to the CPPCs by Office of CCA (Finance) to check delayed (Central Pension Processing Centers) of pension remittances under these schemes. disbursing Banks; ii. The Electronic Bill (E-bill) system of processing • Preparation of Budget for the Pension Grant and accounting thereof; of Bills has been implemented in all of the 6 Departments of Ministry of Finance and is • Audit of CPPCs of pension disbursing Banks; operational in all 25 Pay and Accounts Offices under the O/o CCA, Ministry of Finance. • Maintenance of Data Bank of Central Civil Pensioners containing all details indicated in the iii. INDRAA (Internal Debt and Recovery Advanced PPOs and Revision Authorities; Application) software has been developed for accounting of Internal Debt of Government of India. • Handle the issues raised by Central Civil Phase I has been implemented successfully. Pensioners. iv. All work related to feeding of budget, • Further, this office has also been entrusted with supplementary, re-appropriation and surrender the responsibility of direct disbursement of orders for each of the 9 grants under Ministry of provisional pension to beneficiaries sanctioned Finance, along with mapping of heads to each under the NPS. Their number is increasing scheme on PFMS has been successfully done considerably every year. This work is also being for the Financial Year 2024-25. handled by the existing staff by putting extra v. The implementation of the 2nd factor biometric efforts. authentication using FIDO devices to access 11.2 Achievements PFMS has been accomplished in all Pay and Account Offices under Ministry of Finance. The primary function of CPAO is to issue SSAs vi. Bill pendency in all the Pay Account Offices is to the CPPCs of Banks in fresh and revision of pension monitored regularly and has been reduced to less cases. In the period 01.04.2024 to 31.10.2024, highlights than 1% of the total bills. are as follows: - vii. Timely submission of the NPS contribution of the • 32,090 and 26,648 authorities were issued in fresh employees under Ministry of Finance to CRA- and revision of pension cases respectively. Protean. 11.3 To endeavor and improve the ease of living of viii. Pay & Accounts Office, Secretariat, D/o Revenue pensioners and to bring about transparency in the pension has been conferred with ISO 9001 : 2015 for authorization process, the recent initiatives taken by CPAO Quality Management System for the following scope: Cleanliness, Record Management, Internal are as follows: 98Department of Expenditure II i. Empanelment of Banks. through PARAS (Pension Authorization Retrieval & Accounting System) Software. Sl. Banks Remarks Further, to reduce the delay in issuance of No. PPOs, regular meetings are being held with concerned Ministries/Departments on 1 Kotak Authorized to monthly basis. Mahindra Bank function as CPPC 2 Bandhan Bank Authorized to 11.4 e-Governance Initiatives of CPAO function as CPPC 11.4.1 CPAO is a fully computerized office. A wide range 3 Karur Vysya At integration stage of software/packages have been developed/implemented Bank Ltd. in this office for streamlining pension authorization, 4 City Union At integration stage accounting, Grievance Redressal etc. which include:- Bank Ltd. 5 IDFC First At integration stage i. Pension Authorization Retrieval & Accounting Bank System (PARAS):- All the pension processing activities from receipt to dispatch are managed 6 Karnataka At integration stage through PARAS. The web interface of PARAS Bank Ltd. provides the related information to pensioners; 7 RBL Bank At integration stage PAOs/Ministries & Banks. About 16.16 lakhs Central Civil pension cases have been processed ii. Inception of the 'Banking Coordination' Section by CPAO through this software thereby creating under which following actions have taken place during FY digital database of these pensioners. Various MIS 2024-25:- reports are also generated by this software for the purpose of monitoring. a) Periodical meetings with CPPCs. ii. Database Management Software:-Software for 04 meetings covering 25 CPPCs were held comparison of banks' database with CPAO's during period 01.04.2024 to 31.10.2024 with database of pensioners has been developed and the Head of CPPCs and Senior Management exception reports are generated by it to clean up of Banks wherein various pension related the database and establish a completely matching issues were discussed in details. database. b) Performance evaluation of CPPCs iii. Electronic Pension Payment System (e-PPO/e- SSA System): CPAO has been making an effort Performance of the CPPCs is evaluated to ensure that pension authorization process semi-annually on the basis of 16 key becomes completely paperless. At Present, credit performance indicators. Evaluation for the first of the first pension into the account of pensioner/ half of the FY 2024-25 i.e. 01.04.2024 to family pensioner is carried out immediately on 31.10.2024 has been done for the 35 CPPCs the basis of e-PPO and e-SSA received from with exception of 08 newly formed CPPCs of CPAO without waiting for the physical copy of Punjab National Bank and CPPC, Bandhan the same. This initiative has led to a significant Bank. reduction in delays experienced by the c) Training of staff of CPPCs pensioners/family pensioners in first credit of pension. During the period 01.04.2024 to 31.10.2024, a training programme covering staff of 08 iv. Facilitation Centres:- Pensioners Facilitation Cell CPPCs has been held. was established during the year 2011 in CPAO with the approval of Secretary (Expenditure), iii. Holding of Pension Adalats: Ministry of Finance, so that the grievances of pensioners could be resolved promptly. Since its a. CPAO has actively participated in the inception, more than 4.05 lakhs pensioners have Pension Adalat held by Department/ availed the services of 'Pensioners Facilitation Ministries especially in those held by Central Cell'. Considering, a significant number of Armed Police Forces. pensioners/family pensioners of Central Armed b. CPAO has also initiated Pension Adalats Police Forces (CAPF), a dedicated sub- cell has through Video Conferencing for quick been recently created in Pensioners Facilitation grievances redressal. Such Pension Adalat Cell (PFC) exclusively for CAPF pensioners for is to be held on 20th Nov, 2024. prompt resolution of their grievances. c. Efforts have been made to improve delivery v. SMS facility:The facility of informing pensioner by the measurement of outputs for different through SMS of receipt of fresh Pension Payment functions within CPAO of receipt/authorization/ Order/Revision Order from PAO to CPAO and dispatch by devising standards, daily status sending Special Seal Authority (SSA) to banks reports and monthly inflow-outflow statements for arranging payment has been provided to those for PPOs/Revision authority. Daily progress pensioners who's mobile numbers are available report on disposal of PPOs is being reviewed through "Daily Status Report" generated in the database of CPAO. 99Annual Report 2024-2025 Annexure-I Scheme for Special Assistance to States for Capital Expenditure/Investment 2020-21 to 2024-25 (till 24.11.2024) (Rs. in crore) 2020-21 2021-22 2022-23 2023-24 2024-25 Sl. Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount No. States approved Released approved released Approved released Approved released Approved released Andhra 1 Pradesh 688.00 688.00 501.79 501.79 6105.56 6105.56 4357.45 4090.81 3579.51 2616.27 Arunachal 2 Pradesh 232.97 232.97 490.27 371.19 1579.52 1564.10 2745.00 2363.42 966.00 0.00 3 Assam 450.00 450.00 600.00 600.00 4300.14 4300.14 6555.54 5804.43 3307.68 3181.97 4 Bihar 843.00 843.00 1246.50 1246.50 8740.85 8455.85 10422.80 8814.80 8625.20 5408.88 5 Chhattisgarh 286.00 286.00 423.00 423.00 3465.42 2941.97 3749.77 3365.25 3013.41 2136.81 6 Goa 97.66 97.66 111.04 111.04 572.75 572.75 849.65 695.20 270.90 178.79 7 Gujarat 285.00 285.00 432.00 432.00 4189.82 4045.82 4583.48 4254.32 3076.21 2037.72 8 Haryana 91.00 91.00 135.00 135.00 1312.00 1267.00 1879.00 1702.05 0.00 0.00 Himachal 9 Pradesh 533.00 533.00 800.00 800.00 825.99 650.80 1758.72 1515.97 581.50 427.55 10 Jharkhand 277.00 277.00 409.50 246.00 2964.32 2964.32 5255.12 4580.61 2728.43 1210.73 11 Karnataka 305.00 305.00 451.50 451.50 3399.35 3399.35 4761.77 3879.24 3008.93 2272.87 12 Kerala 163.00 81.50 238.50 238.50 1902.74 1902.74 928.90 0.00 0.00 0.00 Madhya 13 Pradesh 1320.00 1320.00 1533.05 1512.36 7339.51 7360.20 12828.21 12636.21 6943.41 5074.94 14 Maharashtra 514.00 514.00 783.00 771.73 6803.93 6744.16 7219.23 5376.31 4421.55 2617.70 15 Manipur 317.16 317.16 288.47 212.85 764.47 467.22 1010.87 542.70 390.25 38.36 16 Meghalaya 200.00 200.00 300.00 281.20 1049.02 1049.02 1593.17 1293.06 678.52 577.01 17 Mizoram 200.00 200.00 299.99 299.99 497.50 297.50 1096.19 743.28 275.00 181.50 18 Nagaland 200.00 200.00 300.00 300.00 504.16 504.16 1069.39 973.20 397.83 249.92 19 Odisha 471.50 471.50 561.00 517.12 75.00 75.00 5270.40 3532.14 4254.38 3085.44 20 Punjab 296.50 296.50 223.50 223.50 1609.32 798.22 385.23 0.00 548.93 0.00 21 Rajasthan 1002.00 1002.00 747.00 692.41 5650.23 5595.64 8758.04 8513.42 6332.63 4552.01 22 Sikkim 200.00 200.00 300.00 300.00 551.36 551.36 864.08 797.85 342.77 322.98 23 Tamil Nadu 0.00 0.00 505.50 505.50 4011.27 4011.27 5836.83 5326.42 2854.85 1990.93 24 Telangana 358.00 358.00 260.94 214.14 2500.98 2500.98 3243.01 1948.34 0.00 0.00 25 Tripura 300.00 300.00 300.00 118.54 699.45 349.79 966.20 662.92 566.00 425.71 Uttar 26 Pradesh 976.00 976.00 2224.50 1483.00 15778.84 7940.50 19898.71 19215.08 12556.85 7007.93 27 Uttarakhand 675.00 675.00 528.63 263.92 1253.92 1124.01 2082.30 1911.71 795.82 559.16 28 West Bengal 630.00 630.00 933.00 933.00 6699.77 3655.92 7523.00 5015.58 6206.83 4416.23 Total 11911.79 11830.29 15927.68 14185.78 95147.19 81195.35 127492.05 109554.30 76723.37 50571.42 100Department of Expenditure II 101Annual Report 2024-2025 102Chapter - III Department of Revenue III Department of Revenue 1. Organisation and Functions xvii. Union Territory Goods & Services Tax Act, 2017 1.1 The Department of Revenue functions under the xviii. Goods & Services Tax (compensation to States) overall direction and control of the Secretary (Revenue). Act, 2017 It exercises control in respect of matters relating to all the Direct and Indirect Union Taxes through two Statutory xix. Central Goods & Services Tax Act, 2017 Boards, namely, the Central Board of Direct Taxes xx. State Goods & Services Tax Act, 2017; and (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC). Each Board is headed by a Chairman xxi. Integrated Goods & Services Tax Act, 2017 who is also ex-officio Special Secretary to the Government 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 sanctioned strength of 6 (six) members. ii. Commissionerates/Directorates under Central Board of Direct Taxes; 1.2 The Department of Revenue administers the following Acts: iii. Central Economic Intelligence Bureau; i. Income Tax Act, 1961; iv. Directorate of Enforcement; ii. Black Money (Undisclosed Foreign Income & v. Central Bureau of Narcotics; 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 to Levy of Securities Transactions Tax) viii. Income Tax Settlement Commission; v. Central Excise Act, 1944 and related matters; ix. Customs and Central Excise Settlement vi. Customs Act, 1962 and related matters; Commission; vii. Central Sales Tax Act, 1956; x. Customs, Excise and Service Tax Appellate Tribunal; viii. Custom Tariff Act, 1975 ix. Central Excise Tariff Act 1985 xi. Authority for Advance Rulings (for Income Tax and Central Excise, Customs & Service Tax); x. Narcotic Drugs and Psychotropic Substances Act, 1985; xii. 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 (Forfeiture of Property) Act, 1976; xiii. Financial Intelligence Unit, India (FIU-IND); xiii. Indian Stamp Act, 1899 (to the extent falling within xiv. Adjudicating Authority under Prevention of Money jurisdiction of the Union); Laundering Act. xiv. Conservation of Foreign Exchange and xv. Revision Application Unit. Prevention of Smuggling Activities Act, 1974; 1.4 A comparison of the collection of Direct and xv. Prevention of Money Laundering Act, 2002; Indirect taxes for the period of F.Y. 2023-24 and F.Y. 2024- xvi. Foreign Exchange Management Act, 1999. 25 (provisional) is as follows: 103Annual Report 2024-2025 (Rs. in crore) Nature of Taxes Amount collected S. 2024-25 No. Direct Taxes 2023-24 (upto 31.12.2024) 1. Corporate Income Tax 9,11,055 7,39,994 2. Personal Income Tax 10,10,948 8,31,654 3. Other Direct Taxes 38,163 42,924 4. Total Direct Taxes (1+2+3)$ 19,60,166 16,14,572 2024-25* (upto Indirect Taxes 2023-24 30.11.2024) 5. GST (CGST, IGST & GST Compensation Cess) 9,57,208 6,75,617 Non-GST [Customs, Central Excise & Service Tax 6. 5,38,906 3,55,974 (Arrears)] 7. Total Indirect Taxes (5+6)# 14,96,114 10,31,591 $ Source: Pr. CCA (CBDT) * Provisional figures # Source: For FY 2023-24 – Figures have been taken from Finance Account, CGA For FY 2023-24, & FY 2024-25 [April-November]-Figures have been taken from Pr CCA (CBIC); Total may vary on account of rounding off 1.5 The details of representation of SCs, STs and 5) Directorate of Income Tax (Vigilance) OBCs are at Annexure-I. 6) Directorate of Income Tax (Legal & Research) 1.6 The details of representation of persons with ITD is the subordinate organization of the CBDT disabilities are at Annexure-II. having jurisdiction across the country. It is divided into 20 1.7 The details of ATNs in respect of audit regions headed by Principal Chief Commissioners of observations are at Annexure-III. Income Tax (Pr. CCIT), who are entrusted with the 1.8 An Organisation Chart of Department of Revenue supervision and collection of direct taxes and taxpayer is given at Annexure-IV. services. The Directors General of Income Tax (Investigation) supervises the investigation functions and 2. Central Board of Direct Taxes (CBDT) deal with tax evasion and unearthing unaccounted 2.1 ORGANIZATION AND FUNCTIONS income. The Director General of Income Tax (Intelligence and Criminal Investigation) supervises the intelligence The Central Board of Direct Taxes (CBDT), created by gathering and investigation in tax related crimes. The the Central Boards of Revenue Act 1963, is the apex Principal Chief Commissioner of Income Tax body entrusted with the responsibility of administering (Exemptions) supervises the work of exemption and non- direct tax laws in India. CBDT is the cadre controlling profit organizations/ trusts across the country and the authority for the officers of the Indian Revenue Service and controlling authority for the officials of the Income Principal Chief Commissioner of Income Tax Tax Department (ITD). The CBDT consists of a Chairman (International Taxation) supervises the work in the field and six members and is assisted by the following of International Tax and Transfer Pricing. Directorates: The Principal Chief Commissioners of Income 1) Directorate of Income Tax (Administration & Tax Tax are assisted by Chief Commissioners, Principal Payer Services) Commissioners and Commissioners of Income Tax and Principal Directors General/ Directors General of Income 2) Directorate of Income Tax (Systems) Tax are assisted by Principal Directors/ Additional 3) Directorate of Income Tax (Training) Directors General of Income Tax within their jurisdictions. Commissioners of Income Tax posted as Commissioners 4) Directorate of Income Tax (Human Resource of Income Tax (Appeals) perform appellate functions. Development) 104Department of Revenue III 2.2 DIRECT TAX COLLECTION So far as the growth rate of Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross The Direct Tax Collection as on 30th November, revenue collections is concerned, the growth rate of CIT 2024 continues to register a steady growth. Direct Tax is 18.7% while that for PIT is 23.0%. After adjustment of refunds, the net growth of CIT collections is 6.9% and Collections upto 30.11.2024 show that gross collections that in PIT collections is 24.2%. are at Rs. 15,65,188 crore which is 22.0% higher than the gross collections for the corresponding period of last Refunds amounting to Rs. 3,18,959 crore have year. Net Direct tax collection stands at Rs. 12,46,229 been issued upto 30.11.2024 which is 43.6% higher than refunds issued during the same period in the preceding year. crore which is 17.5% higher than the net collections for the corresponding period of last year. This collection is The above details of direct tax collection for FY 56.47% of the Budget Estimates (BE) for Direct Taxes 2024-25 upto the month of November, 2024, are tabulated as under: for the FY 2024-25. (Amount Rs. in crore) Collection for FY 2023-24 (as on Collection for FY 2024-25 (as on Growth Major 30.11.2023) 30.11.2024) percentage Heads on Net Gross Refund Net Gross Refund Net Collection Corporation 5,73,207 93,785 4,79,422 6,80,282 1,67,916 5,12,366 6.9% Tax Personal 6,88,034 1,28,254 5,59,780 8,46,352 1,51,027 6,95,325 24.2% Tax Others 21,371 32 21,338 38,554 16 38,537 80.6% Total 12,82,612 2,22,071 10,60,540 15,65,188 3,18,959 12,46,229 17.5% So urce: Pr. CCA (CBDT) * Provisional figures provided by Pr. CCA, CBDT TDS related matters: In order to improve tax transactions entered into up to 31.03.2024 and administration and reduce hardship of taxpayers, the in case of demise of the deductee/collectee on following measures taken: or before 31.05.2024 i.e. before linkage of PAN and Aadhar could have been done, there shall a) Notification in respect of TDS provisions: be no liability on the deductor/collector to deduct/ Notification No. 123/2024 dated 28.11.2024 was collect tax under sections 206AA/206CC of the issued under section 194N of the Income-tax Act, 1961 (‘The Act’) exempting Foreign Act, as the case may be. Representations approved by the Ministry of d) Circular No 15/2024 dated 04.11.2024 was External Affairs including diplomatic missions, issued under section 119(1) of the Act fixing United Nations agencies, international monetary limits of the income-tax authorities in organizations, consulates, and honorary consuls’ offices from the provisions of Section 194N (Tax respect of reduction or waiver of interest paid or deduction at source on cash withdrawals). payable under section 220(2) of the Act. b) Orders passed to mitigate hardship/difficulty 2.3 Some Recent Legislative Changes In Direct to tax payers/field offices: Circular No 06/2024 Tax Laws dated 23.04.2024 was issued specifying that for the transactions entered into up to 31.03.2024 2.3.1 Introduction of Direct Tax Vivad se Vishwas and in cases where the PAN becomes operative Scheme, 2024 for reducing pending litigation- by 31.05.2024, there will be no liability on the deductor/collector to deduct or collect tax under Keeping in view the success of the previous sections 206AA/206CC of the Act, as the case Vivaad Se Vishwas Act, 2020 and the mounting pendency may be. of appeals at CIT(A) level, Direct Tax Vivad se Vishwas Scheme, 2024 has been introduced vide Finance (No.2) c) Circular No 08/2024 dated 05.08.2024 was issued specifying that in respect of cases where Act, 2024 with the objective of providing a mechanism of higher TDS/TCS was attracted under section settlement of disputed issues, thereby reducing litigation 206AA/206CC of the Act pertaining to the without much cost to the exchequer. 105Annual Report 2024-2025 2.3.2 Personal income tax –  Where a venture capital fund (VCF) located in IFSC extends a loan / other amount to an 2.3.2.1 Substantial tax relief has been provided by assessee, it shall no longer be called upon to Finance (No.2) Act, 2024 under the new tax regime with explain the source of funds. new slabs and tax rates as under:-  Further, surcharge shall not apply on income-tax SI. No. Total income Rate of tax payable on income from securities by specified funds. 1 Up to Rs. 3,00,000 Nil 2.3.3.2 Reduction of rate of foreign companies to 35 2 From Rs. 3,00,001 to Rs. 7,00,000 5 per cent* percent: The rate of income-tax chargeable on income 3 From Rs. 7,00,001 to Rs.10,00,000 10 per cent of foreign company (other than chargeable at special rates) has been reduced from 40 per cent to 35 percent 4 From Rs. 10,00,001 to Rs. 12,00,000 15 per cent vide Finance (No.2) Act, 2024. 5 From Rs. 12,00,001 to Rs. 15,00,000 20 per cent 2.3.3.3 Scheme of presumptive taxation for cruise 6 Above Rs. 15,00,000 30 per cent ship operations by non-residents: A presumptive taxation regime for cruise ship operations of non-residents * Subject to availability of rebate under Section 87A. has been put in place. Further, exemption has been 2.3.2.2 Increase in Standard Deduction and deduction provided for any income of a foreign company from lease from family pension for tax payers in tax regime- rentals of cruise ships, received from a related company which operates such ship or ships in India. With the aim of encouraging and incentivizing taxpayers to shift to the new tax regime, vide Finance 2.3.3.4 Removal of angel tax: Finance Act, 2012 (No.2) Act, 2024 for persons choosing taxation under the inserted a new provision under section 56 for taxation of new regime under sub –section (1A) of section 115BAC any consideration at FMV, for issue of shares by a of the Act, an enhanced standard deduction of Rs.75,000/ company in which public are not substantially interested - has been made available. exceeding the face value of such shares as income from other sources. Vide Finance (No. 2) Act, 2024 the Further, deduction allowable for taxpayers in the provisions of clause (viib) of sub-section (2) of section new tax regime from family pension income has been 56 of the Act have been sun-setted. increased from fifteen thousand rupees to twenty-five thousand rupees. 2.3.3.5 Equalisation Levy: Levy at the rate of 2 per cent of consideration received for e-commerce supply of goods 2.3.2.3 Non-government employer contribution to or services, shall no longer be applicable on or after 1st New Pension Scheme- August, 2024. For promotion of social welfare and providing tax 2.3.4 Simplification and Rationalisation- relief, vide Finance (No.2) Act, 2024, the amount of deduction allowed to an employers in respect of his 2.3.4.1 Rationalisation of certain TDS rates:- contribution to a pension scheme referred to in section To improve case of doing business and encourage 80CCD, has been increased from the extent of 10% to voluntary compliance by taxpayers, certain Tax Deduction the extent of 14% of the salary of the employees. Further, at Source (TDS) rates have been reduced from 5% to a non-government employee in the new tax regime is 2% vide Finance (No. 2) Act, 2024. These include sections now allowed deduction of an amount not exceeding 14% 194D (Payment of insurance commission (in case of of the employee’s salary in place of 10%. person other than company) (with effect from 1.4.2025), 2.3.3 Measures to promote investment and 194DA (Payment in respect of life insurance policy), 194G employment – (Commission etc on sale of lottery tickets), 19411 (Payment of commission or brokerage), 194-IB (Payment 2.3.3.1 Incentives to International Financial Services of rent by certain individuals or HUF), 194M (Payment of Centre (IFSC) in Finance (No.2) Act, 2024 certain sums by certain individuals or Hindu undivided family). Rate of TDS u/s 194-0 (Payment of certain sums  Retail scheme and Exchange Traded Funds in by e-commerce operator to e-commerce participant) has IFSC, shall enjoy tax exemptions along similar been reduced to 0.1%. lines as available to specified funds. 2.3.4.2 Charitable trusts / Institutions:-  Specified income of Core Settlement Guarantee Fund set up in IFSC shall be exempt. Amendments have been made to merge the two schemes for exemption and also provide for rationalisation of filing  Section 94B shall not be applicable to certain of applications and the timelines for registration and finance companies located in IFSC. 106Department of Revenue III approval of certain benefits to charitable trusts and During F.Y. 2023-24, 502 prosecution institutions. complaints were filed and in 35 cases, conviction orders have been passed by Court and in 631 cases, 2.3.4.3 Simplification and rationalisation of capital compounding applications were accepted. Whereas, gains taxation regime:- during F.Y. 2024-25* (upto November, 2024), 304 Cases, The period of holding of capital assets has been simplified prosecution complaints have been filed and in 51 cases, with amended provisions providing for a period of 12/24 conviction orders have been passed and in 457 cases, months as holding period for capital assets. compounding applications have been accepted. The rate of tax on short term capital gains under section (*Figures are provisional) 111A of the Act has been increased from 15% to 20% for 2.4.3 Actions under the Black Money (Undisclosed STT paid listed equity shares, units of equity oriented Foreign Income and Imposition of Tax Act, 2015 (“the funds and business trusts. BM Act”): Recognizing the limitations of the Income-tax The rate for long term capital gains on above capital Act, 1961, etc. in dealing with black money stashed assets has been rationalised from 10% to 12.5%. Rate abroad, the Government enacted a comprehensive and of taxation in respect of other long term capital assets a more stringent new law that has come into force w.e.f. has been rationalised and simplified to 12.5% without 01.07.2015. As an outcome of the actions taken by the indexation from earlier rate of 20% with indexation, with Income-tax Department under the BM Act, as on an option being provided to opt for a beneficial regime in 31.03.2024, orders u/s 10(3)/10(4) of the Act have been respect of immovable property acquired before the 23rd passed in about 652 cases raising demand of more than July, 2024. This option has been provided to resident Rs. 17,162 crores (approx.) and 163 prosecutions have Individuals/HUFs. been launched. 2.3.4.4 Simplification of re-assessments and search 2.4.4 Actions under the Prohibition of Benami assessments:- property Transactions Act, 1988 (“the Benami Act”): The procedure for re-assessments has been considerably With a view to bridge the gaps and put in place appropriate simplified and the period for which assessments can be effective legislation, the existing Act was amended re-opened has been reduced to 5 years from earlier 10 through Benami Transactions (Prohibition) Amendment years. Also scheme of search assessments has been Act, 2016, and came into force w.e.f. Ist November 2016. revamped with the introduction of block assessment The amended Act defines Benami transactions and concept. The period covered for search assessments has Benami property. It provides for consequences of entering also been reduced to 6 years from earlier 10 years period. into a prohibited Benami transaction, which includes attachment of the Benami property, confiscation and 2.4 INVESTIGATION DIVISION prosecution of both the benamidar and the beneficial 2.4.1 Search and seizure and survey actions: owner. The ITD has set up 24 Benami Prohibition Units During F.Y. 2023-24, search and seizure actions were across India for taking effective action under the Benami carried out against 1166 groups leading to seizure of Act. assets worth over Rs. 2555.05 crores. Whereas, during The Income-tax Department has taken effective F.Y. 2024-25* (upto October, 2024), search and seizure actions against Benami transactions/properties since actions were carried out in 1005 groups. The actions in amended Act came into force. these cases led to seizure of assets worth over Rs. 1360.67 crores. As on 30.09.2024, total no. of properties attached under the Act stood at 8659 worth over Rs.19906.71 (in Further, during F.Y. 2023-24, 737 surveys were Cr.) and 286 prosecutions have been launched. conducted leading to detection of Undisclosed Income over Rs. 37622.22 crores. Whereas, during F.Y. 2024- 2.5 AUDIT & JUDICIAL DIVISION: 25* (upto October, 2024), over 110 surveys were conducted leading to detection of Undisclosed Income The following significant development/policy over Rs. 28296 crores. decisions/ initiatives were taken during the FY 2024-25: (*Figures are provisional) i. Circular No. 9/2024 dated 17.09.2024 was issued by ITJ Section vide which the monetary limits for 2.4.2 Prosecutions & compounding: Various filing of appeals by the Department before measures have been taken by the Income-tax Income Tax Appellate Tribunal, High Courts and Department (ITD) in the recent past to strengthen the SLPs/appeals before Supreme Court were prosecution mechanism with a view to identify the enhanced to 60 Lakhs, Rs. 2 Crore and Rs. 5 deserving prosecutable cases at the earliest and pursue the same with due seriousness. Crore respectively. 107Annual Report 2024-2025 ii. Order dated 31.08.2024 was issued with respect cost reduction, improved quality of services, to e-Dispute Resolution Scheme (“e-DRS”) speedy service delivery, data security, and specifying the category of cases in which the effective grievance monitoring. applications in the Form 34BC can be filed on or (c) The key features of the PAN 2.0 Project are before 30.09.2024. The operationalization of e- online receipt of PAN/ TAN applications and near DRS will enable the delivery of quick and effective real time issuance of PAN/ TAN, real-time PAN dispute resolution to small taxpayers. Validation and enhanced QR based authentication of PAN card etc. iii. Letter dated 15.10.2024 was issued to Registrar, National Company Law Appellate Tribunal (d) The technical architecture of PAN 2.0 has been (NCLAT), New Delhi and Registrars, National comprehensively outlined, including the Company Law Tribunal (NCLT) of all the regions infrastructure requirements for high-availability specifying Nodal Officers along with the names data centers with disaster recovery and near-data of Senior/Junior Standing Counsels to ensure co- centers as well as infrastructure automation, ordination and effective representation before cyber security & compliance provisioning and use benches of NCLT and NCLAT. of emerging technologies such as AI/ ML for application form verification, resolution of 2.6 E-GOVERNANCE potential duplicates etc. The key architecture principles of the PAN 2.0 are – microservices- I. Project Name: PAN based, openness & interoperability, scalability, During the Financial Year 2024-25 (up to agility, maintainability and security by design. 30.11.2024), a total of 3,66,67,517 PANs have been (e) The above transformation will further the allotted. Till 30.11.2024, 64,60,57,704 PANs of individuals Government’s initiative to use PAN as Common have been seeded with the Aadhaar data base, which is Business Identifier across digital systems of approximately 84.10% of total number of PANs government agencies. (76,81,35,665) allotted to individuals. II. Project Name: Insight New PAN 2.0 Project Project Insight is an integrated data warehousing (a) The PAN 2.0 Project of the Income Tax and business intelligence platform of the Income Tax Department has received the approval of the Department. The project serves as an information Cabinet Committee on Economic Affairs (CCEA) backbone of the ITD where information available in on 25.11.2024. various ITD systems as well received from external third party sources are collated on its platform to enable 360 (b) The PAN 2.0 project recognises the importance degree profiling of taxpayers, risk assessment and graded of taxpayer registration system and accordingly compliance action. This platform is also leveraged for intends to re-engineer the business processes making available relevant information to the taxpayers through technology driven transformation of PAN/ through Annual Information Statement (AIS) and Pre- TAN services for enhanced digital experience of filling of ITRs, which greatly enhances the taxpayer the taxpayers, ITD officials and other stake services by helping taxpayers to accurately file their return holders. The major proposed shift in the new PAN in faster time. 2.0 project is change from franchise model to direct delivery model, receipt of online paperless The current year saw a significant increase in the numbers of taxpayers visiting the AIS Portal. The application, discontinuance of physical PAN table below shows the financial year -wise increase in Centres, allotment and issuance of e-PAN/TAN the numbers of taxpayers in the AIS database and free of cost, etc. The key benefits envisaged from numbers of taxpayers visiting AIS Portal: the project are ease of access, eco-friendliness, Particulars FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Number of Unique Taxpayers 2,02,68,598 4,50,44,784 6,44,41,457 7,02,81,073 visiting AIS Unique PANs for whom 13,72,42,343 15,12,80,083 38,60,54,406 44,50,00,000 TIS/AIS available Some of the major developments undertaken in respect ii. For e-verification, functionality for mismatch of AIS are as under: campaign has been developed and implemented to highlight the PANs where there is a substantial i. A link to validate the Insight DIN has been provided difference between the information available in on the AIS Portal along with the same link on the AIS and the information disclosed by the taxpayer Reporting Portal and Old Compliance Portal. in the Income Tax Return. 108Department of Revenue III iii. A new functionality has been developed in AIS (iii) 80.70 lakh taxpayers registered in the efiling portal wherein taxpayer will be able to view entire feedback in FY2024-25, out which, 76.58 lakhs were individual lifecycle of information in AIS. taxpayers, and 4.12 lakhs were corporate taxpayers. Insight 2.0 Project (iv) 18.18 lakhs Updated returns were filed in FY2024- 25. Insight 2.0 is envisaged as a significantly enhanced and improved version of the existing Insight Project so as to (v) 8.25 crore ITRs have been verified till 30th Nov. 2024 further strengthen the capabilities in areas such as: for AY 24-25. Out of this, 7.21 crore were e-verified using Aadhaar OTP, which is one of the six modes i. Augmentation of data by enhancing data of verification made available to the taxpayers for coverage, data quality and data integration verifying their ITRs filed. ii. Augmentation of capabilities of data analytics by leveraging latest tools & technologies such (vi) Till 30th Nov 2024, more than 1.86 crore Statutory as AI/ML, generative AI etc thereby facilitating forms have been e-filed by the taxpayers including various use cases such as predictive analytics, more than 52.95 Lakh TDS statements, fraud detection, anomaly detection, trend (vii) Till 30th Nov 2024, over 1.41 crore Bank accounts analysis, industry benchmarking etc have been validated and over 78.68 Lakh Bank iii. More comprehensive and effective business accounts have been enabled for E-verification. outcomes in areas such as risk assessment, (viii) The E-filing portal has more than 150 interfaces (both risk scoring, graded communications & external and internal interfaces) with different entities/ campaigns etc systems such as UIDAI, Banks, ERIs, CPC-TDS, iv. Enhancement of taxpayer services through etc., to facilitate smooth and faster flow of information augmentation of data, effective campaign & for providing better and enhanced experience for grievance handling, AI-enabled chatbot etc. taxpayer relating to taxpayer services and compliances. The key features of the Project Insight 2.0 include, inter alia: Demand Management and Facilitation Centre (DFC)  Microservices Architecture: Enabling greater In order to handle the task of resolution of the flexibility, scalability, and maintainability. outstanding demands, Demand Management Facilitation Centre (DFC) was set up in 2022. The DFC currently 4-Site Data Center: Enhancing data security,  consists of 170 agents, who work 6 days a week between redundancy, and disaster recovery capabilities. 8:00 A.M to 8:00 PM for inbound calls and 9:00 AM to 6:00  Advanced Data Analytics Tools: Facilitating PM for outbound calls. Calls are made to the Taxpayer sophisticated data analysis and insights for from the telephone number: 8216671200. Taxpayers can informed decision-making. call the DFC on the number: 1800 309 0130. Scheduled Calls are made to the Jurisdictional Assessing Officers ( Integration of Open-Source Intelligence  JAOs) for the purpose of resolution of demands from the Tools (OSINT) and external databases: Leveraging external data sources to enhance telephone number: 8216671222. Mails are sent to / risk assessment and investigative capabilities. received from Tax Payers and JAOs, using the dedicated mail id taxdemand@cpc.incometax.gov.in. During the Dedicated Data Labs  period 01.04.2024 to 30.11.2024, demand amounting to Rs 4,77,934 crore involving 1,11,953 cases has been III. (Integrated E-filing and CPC) IEC-2.0 resolved due to the Demand management efforts of the The E-filing portal acts as a single interface for DFC. taxpayers in respect of multiple services provided by the Income Tax Department as well as for compliance IV. Taxnet related responses. Key highlights related to the IEC 2.0 The Taxnet project is a network connectivity project Project till 30.11.2024 are, inter alia, as under: which provides LAN-WAN connectivity to all the 780 (i) Income Tax Return (ITR) filing has increased to Income Tax Department (ITD) locations across the country. 8.35 crore ITRs for AY 2024-25 till 30th Nov 24. It acts as the architectural backbone to the entire digital edifice of the Direct Taxes administration and connects all (ii) The surge of filing ITRs peaked on 31st July 2024 (due date for salaried taxpayers and other non- the departmental offices to the applications of the tax audit cases) with over 70 lakh ITRs being filed department viz. ITBA, Project Insight, CPC-TDS, e-Filing, on a single day i.e. on 31st July,2024. and other portals of the Department. 109Annual Report 2024-2025 Taxnet 2.0 Project ITBA 2.0 The Taxnet 2.0 project will replace the existing ITBA 2.0 has been conceptualized as an Taxnet 1.0 project with an integrated project comprising innovative e-Governance project which would succeed of Network connectivity, Facilities Management Services ITBA 1.0 utilizing significant technological developments (FMS) and the Video Conference project in a single of the past decade to provide improved service delivery to project offering secure, reliable and seamless connectivity taxpayers. Some of the envisaged improvements in ITBA services to ITD users and aid in assessment-related work 2.0 for better taxpayer service delivery are as below: - using advanced technology such as Software Defined i. Quicker grievance redressal for the taxpayers by Wide Area Network (SDWAN) with dual links, on-premise bringing all the pendency (such e-Nivaran, Network Operations Centre (NOC), hybrid Local Area CPGRAMs, Rectification Requests, Requests for Network (LAN) models (wired+wireless), improved Appeal Order Give Effect, etc.) of a Departmental perimeter security etc. The implementation of the project user at a single navigable page. is underway and expected to go live by end of August 2025.The Taxnet 2.0 project is planned to be executed ii. Improved Video Conference facility for faceless and operated with a project lifecycle of 14 months for schemes. implementation and 7 years for Operations & iii. Better monitoring and supervision of the work by Maintenance. the supervisory authorities i.e., through integrated action dashboard, customized MIS, alerts and V. e-Verification notifications. The e-Verification Scheme- 2021 provides an iv. Introduction of a Taxpayer Facing Portal in ITBA opportunity to taxpayers to correct any information which 2.0, to ensure that the taxpayers can provide their is wrongly reported and reconciliation of mismatches responses to the statutory queries of the officers between information reported by various sources and in a structured manner. what is reported by taxpayer in the ITR.The second cycle of e-Verification was initiated in May 2023, focussing on v. The alerts and notifications that will be generated information related to Financial year 2020-2021. A total by ITBA 2.0 for any action to be performed by the of 2,72,209 taxpayers (including filers and non-filers) have user or which requires his attention, will be been taken up for e-Verification and the process is customizable. This allows for prioritization of work currently underway. As a result, 18,846 updated ITRs such as grievance redressal. have been filed, yielding an additional tax of Rs. 550.76 vi. Faster deployment of statutory changes in the Crores. Application due to a low code configurable system. VI. Project Name: ITBA vii. Using technological advancements such as Single The Income Tax Business Application (ITBA) has Sign-On, Optical Character Recognition (OCR) for been in action for more than half-a-decade. ITBA is used providing an ergonomic system to the Departmental as a platform for delivery of taxpayer services such as Users thereby increasing the user’s efficiency. Grievance Redressal through E-Nivaran portal, passing VII. CPC TDS of orders relating to issuance of refunds, etc. which are carried out by the officers of the Department. Central Processing Cell-TDS provides a facility for online correction of TDS/TCS statements. Thus, the One of the key achievements of ITBA has been deductors can correct PANs and other attributes (in case the enablement of Faceless Assessments/Appeals/ of TAN based Forms 24Q/26Q/27Q/27EQ) and (in case Penalty. In Faceless scheme, certain legal proceedings of PAN based Forms 26QB/26QC/26QD/26QE) of the under direct tax laws are conducted by leveraging transactions by promptly filing a correction online anytime information technology. Hence, the faceless regime aims from anywhere. to impart greater efficiency, transparency, and accountability in the income tax proceedings by Further, CPC-TDS provides online platform for eliminating in-person interaction between the taxpayer processing and issuance of Lower/Nil deduction and the tax officer. ITBA is the platform for use by the tax certificates which are applied through TDS Reconciliation officers, for implementing the Faceless regime. During Analysis and Correction Enabling System (TRACES) the year 2024-25(upto 30.11.2024), 9636 orders in website in Form 13/Form 15C/Form 15D/Form 15E, respect of faceless assessment, 2,51,835 orders in making it an end-to-end faceless online facility, which is respect of faceless penalty and 60,978 orders in respect a quantum leap in taxpayer service and which has of faceless appeals have been passed using ITBA. reduced the manual work to a minimum level. 110Department of Revenue III CPC (TDS) 2.0 will succeed the existing 2.7.3 Performance Metrics: Tweets, Responses, CPC(TDS) project and will be based on contemporary and Follower Growth technology to deliver taxpayer services CPC(TDS) 2.0 As of now, the @IncomeTaxIndia handle boasts project would be designed to accommodate changed a follower count of 1,540,605. From April 1, 2024, to processes and functions related to assessments, cater December 31, 2024, a total of 46,708 tweets and to the need for enhanced linkages with other modules of responses were posted. These include taxpayer the department and increased automation for efficient education campaigns and responses to public queries. delivery of taxpayer services. This would entail re- 2.7.4 Social Media as a Tool for Compliance designing, re-developing, and re-architecting key Support components viz., TRACES Web portal, AO Portal, Processing module, etc. for enhancing conventional TDS/ During the peak e-filing compliance cycle in July TCS functionalities and developing new services. 2024, the Department made extensive use of Twitter’s CPC(TDS) 2.0 will be a completely new application to be messaging and response features. The handle received built using new technology. The major improvements 55,679 tweets, and actionable posts were promptly include, inter alia, the following- addressed. From April 1, 2024, to July 31, 2024, 33,739 actionable tweets were responded to and assistance i. End to end E-Proceedings and E-communication was provided,out of these, 22,282 tickets were raised for TDS Assessing Officers and for taxpayers by the users who connected with the backend team via ORM link/ e-mail. These tickets are related to CPC e- ii. Faster processing of TDS/TCS statements and filing and ITR issues. Notably, 21,645 tickets (97.14%) automated issuance & delivery of TDS/TCS were successfully resolved. certificates. 2.7.5 Process Innovation and Real-Time Support iii. Integration with other departmental modules to The adoption of advanced tools, such as the enable seamless functioning. Konnect Insight (KI) tool, has significantly improved data iv. Improved taxpayer services through an enhanced collection and collation. This, coupled with the use of Integrated Grievance Management System (IGMS). Google Sheets, reduced the Turnaround Time (TAT) from 72 hours to 2–3 hours, with many cases resolved in 2.7 MEDIA CENTRE (M&TP) real-time. Additionally, a dedicated war room, established during the peak e-filing season, enabled real-time 2.7.1 Dissemination of Information Related to grievance resolution in collaboration with the Directorate Direct Taxes of Systems. The Principal CIT (Media & Technical Policy) 2.7.6 High-Profile Visits and Campaigns oversees the Media Centre, established in August 2006, Comprehensive 360-degree media campaigns to facilitate the dissemination of public information were organized during visits by the Hon’ble Vice concerning direct taxes. Through both print and electronic President, Hon’ble Finance Minister, and the Chairman media, the Media Centre has played a pivotal role in of CBDT. These events, including building inaugurations, informing the public about key decisions, developments, book launches, and valedictory ceremonies, were and achievements. From April 1, 2024, to December 31, extensively covered with live tweets in coordination with 2024, the Centre issued 25 press releases, highlighting regional teams. important milestones and updates regarding the CBDT and the Income Tax Department. 2.7.7 Strengthening Regional Outreach via Twitter Regional offices of the Department, led by their 2.7.2 Enhancing Stakeholder Engagement via respective Principal Chief Commissioners, operate 19 Social Media Twitter handles (including NADT). These handles are In recent years, CBDT has expanded its instrumental in conducting localized outreach and communication channels to include social media, with a awareness campaigns. Persistent efforts have led to all significant presence on X (formerly Twitter). Managed by regional handles receiving the grey checkmark, ensuring credibility and authenticity. the Media Centre under the supervision of the CIT (M&TP), the official handle, @IncomeTaxIndia, enables 2.7.8 Amplifying Awareness through Targeted two-way communication with taxpayers and stakeholders. Campaigns The Media Centre uses this platform to disseminate Focused social media campaigns have been critical information and engage directly with the public. used to promote key departmental initiatives, such as To further streamline interactions, an Online Special Campaign 4.0. These campaigns leverage the Response and Reputation Management (ORM) system power of Twitter to maximize outreach and public was introduced in July 2019, enabling the Department to awareness, ensuring that critical information reaches all identify and address actionable posts and tweets. stakeholders effectively. 111Annual Report 2024-2025 S. No. Campaign No. of No. of Retweets Likes Impressions Tweets 1 Phishing Awareness 6 550 1191 261.9K 2 Vivad se Viswas 2024 2 118 212 45.5K 3 SFT 5 287 672 257.2K 4 165th Income tax day 22 837 1762 327.5K 5 E-filing 11 1672 6430 1513.5K 6 PAN-Aadhaar linking 3 426 1146 385K 7 Advance Tax 6 334 941 314.5K 8 Bank Validation 11 628 1479 477.1K 9 UnionBudget2024 29 944 2123 625.9K 10 ParisParalympics2024 8 343 1634 245.6K 11 SpecialCampaign4.0 9 146 453 141.1K 2.8 DIRECTORATE OF VIGILANCE A. Performance and achievements during current year April-November, 2024 Performance and Achievements during current year April – Projections or Estimates November, 2024 and Achievements from the remaining period till March, 2025 Sl.No Items of work (Disposal) Achievements Projections Or Estimates 1 CORE AREAS OF ACTION Disciplinary proceedings concluded 84 36 1(a) Penalties imposed 49 18 1(b) Out of above J.S. and above Rank 7 5 2 Sanction for prosecution approved / 7 1 granted 3 Vigilance clearance issued 4629 (till 3500 September, 24) B. Significant developments/policy decisions period through seminars, in house competitions, quiz, slogans, poster making and wide publicity * Measures for strengthening vigilance mechanism: through banners and newspaper publications. Publication of (i) Vigilance Handbook 2024 for Group A and Group B officers, (ii) Vigilance C. Training and awarness campaigns conducted Handbook for Disciplinary Authorities-2024. Apart from regular capacity building courses on * In-house training and capacity building of officers tax laws so as to avold lapses on account of Ignorance, posted in Vigilance Directorate and PCCIT the Department has also conducted extensive Charges with focus on timely disposal of programmes for its officers and officials through well complaints and DPs. targeted specialized preventive vigilance courses curated * Conducting extensive awareness programmes through Vigilance Directorate and Pr. DGIT(Training) in during annual Preventive Vigilance campaign collaboration with PCCITs, as tabulated below: 112Department of Revenue III CADRE SUBJECTS COVERED MODE OF DELIVERY / OUTREACH Group-A, B and C a. Ethics and Values in Governance. (i) Mandatory Physical Courses during b.CCS(Conduct) Rules, 1964, Induction training at NADT, Nagpur and 8 c.Public Procurement. reginal Campuses for Group A officers/ d.Cyber-Hygiene, NADT-RC's for Grp B & C. e.Role & responsibility of 10s and POs in (ii) Regular Refresher Courses physically timely completion of DPs. conducted at Regional Training Institutes f. Role & responsibility of supervisory by Zonal Vigilance officers and PCCITS. officers. (iii) Dissemination of Information for officers g. Information Security. in field units through Video Tutorials on h. Awareness regarding key vulnerable preventive subjects. vigilance areas common mistakes detected during the handling of vigilance cases. Supervisory a. Ethics and Values in Governance. (i) Seminars. officers CCIT / b. Role of supervisory officers in combating (ii) Quarterly Review meetings of Zonal PCIT/CIT level corruption. ADG(Vig) with PCCIT, DGIT(Inv). Further, Circulation of DO’s and DON’Ts for field The tax payer’s grievances are attended to by these field units after identification of key vulnerable areas in core units of the CBIC on a day to day basis. functional units of the department have been undertaken The Board is assisted by 19 Directorates who by Vigilance Directorate act as adjunct offices and assist the Board in policy Probity: In order to ensure probity in income Tax formulation. Each Directorate has been assigned with a Department Quarterly Review of Officers under FR 56(j) specific responsibility. The Directorate General of is now being done for all Officers of Group A, B and C in Revenue Intelligence (DRI) is the premier intelligence and the age group of 50 to 60 years of age. investigation agency which collects and collates intelligence relating to Customs duty frauds and 3. Central Board of Indirect Taxes and smuggling. Similarly, the Directorate General of GST Customs (CBIC) Intelligence is tasked with investigation of GST and 3.1 Introduction Central Excise/ Service Tax matters. Another important directorate is the Directorate of Human Resource The Central Board of Indirect Taxes and Customs Development (DGHRD) which handles all HR matters of or CBIC (erstwhile Central Board of excise & Customs) CBIC. is a part of the Department of Revenue under the Ministry of Finance, Government of India. It is the apex body for After the introduction of GST in 2017, the indirect tax administration. It is involved in policy Directorate of Analytics and Risk Management (DGARM) formulation concerning levy and collection of Customs, was created. The DGARM is engaged in data analytics Central Excise duties, Central Goods & Services Tax and data mining. The results of the data analytics has (CGST) and Inter-state Goods & Services Tax (IGST), helped in detecting large number of fake invoice cases prevention of smuggling and administration of matters and has helped in augmenting GST collection. relating to Customs, Central Excise, CGST, IGST and Narcotics to the extent which is under CBIC’s purview. The motto of CBIC is “Desh Sevarth Kar Sanchay”. The CBIC also plays an active role in GST Council The activities and the performance of the different meetings and the associated activities of Law Committee Sections/wings and the Directorates working under the which deliberates on all matters brought before the GST CBIC has been summarized. Council. The CBIC constituted under the Central Board of Revenue Act, 1963 consists of a Chairman and six Revenue Members who are Special Secretaries to the Government As regards the actual data from 1.04.2024 to 30.11.2024 of India. The CBIC personnel supervise the functioning along with projections for the remaining period till March, of the subordinate formations which includes Directorates 2024, the inputs are as follows: and field formations of Customs, GST Commissionerates and Narcotics formations such as Opium factories and Anticipated Receipts for the period November, 2024 to the Central Revenues Control Laboratory. March, 2025 may not be possible, as the same will be assessed from December, 2024 onwards for The field formations are mainly engaged in incorporation in annual Union Budget 2025-26 after collection of revenue and are spread across the country. 113Annual Report 2024-2025 seeing the revenue trends [GST & Non-GST] till December, 2024. The Net Central Indirect Taxes for FY 2024-25 [April-October] is as follows: (Amount in Rs. crore) April-October[P] % of BE 2024-25 Tax head BE 2024-25 achieved % Growth (y-o- 2023-24 2024-25 [P] y) Customs Duty (Cash + Scrip) 2,37,745 1,27,494 1,33,526 4.7% 56.2% Central Excise Duty 3,19,000 1,75,989 1,74,878 -0.6% 54.8% Service Tax 100 433 140 -67.7% 139.9% Sub-Total (Non-GST) 5,56,845 3,03,917 3,08,545 1.5% 55.4% CGST 9,10,890 4,68,574 5,21,709 11.3% 57.3% IGST - -17,096 -13,641 20.2% Compensation Cess 1,51,009 81,029 86,401 6.6% 57.2% Sub-Total (GST) 10,61,899 5,32,507 5,94,469 11.6% 56.0% Total Net Central Indirect Taxes 16,18,744 8,36,424 9,03,014 8.0% 55.8% [GST + Non-GST] Source:PrCCA (CBIC), EMC HRD; [P]=Provisional; 3.2 GOODS AND SERVICE TAX (GST) made for reducing the amount of pre-deposit for filing of appeals under GST to ease cash A. Recent Measures for Simplification, trade flow and working capital blockage for the facilitation and Ease of Doing Business under taxpayers. The maximum amount for filing GST: appeal with the appellate authority has been i. Insertion of Section 128A in CGST Act has reduced from Rs. 25 crores CGST and Rs. 25 been carried out to provide for conditional crores SGST to Rs. 20 crores CGST and Rs. waiver of interest or penalty or both relating 20 crores SGST. Further, the amount of pre- to demands raised under Section 73, for FY deposit for filing appeal with the Appellate 2017-18 to FY 2019-20 : Considering the Tribunal has been reduced from 20% with a difficulties faced by the taxpayers, during the maximum amount of Rs. 50 crores CGST and initial years of implementation of GST, Rs. 50 crores SGST to 10 % with a maximum amendments have been made in the CGST of Rs. 20 crores CGST and Rs. 20 crores Act, to provide for continued waiver of interest SGST and penalties for demand notices issued under iv. Reduction in rate of TCS to be collected by Section 73 of the CGST Act for the fiscal years the ECOs for supplies being made through 2017-18, 2018-19 and 2019-20, in cases where them: Electronic Commerce Operators the taxpayer pays the full amount of tax (ECOs) are required to collect Tax Collected demanded in the notice upto 31.03.2025. at Source (TCS) on net taxable supplies under ii. Reduction of Government Litigation by Section 52(1) of the CGST Act. The Central Fixing monetary limits for filing appeals Government has issued Notification No. 15/ under GST.The CBIC has issued Circular No. 2024-Central Tax dated 10.07.2024 (notified 207/01/2024-GST dated 26.06.2024 to w.e.f. 10.07.2024), Notification No. 01/2024- prescribe monetary limits, subject to certain Union Territory Tax dated 10.07.2024 (notified exclusions, for filing of appeals in GST by the w.e.f. 10.07.2024) & Notification No. 01/2024- department before GST Appellate Tribunal, Integrated Tax dated 10.07.2024 (notified w.e.f. High Court, and Supreme Court, to reduce 10.07.2024) to reduce the TCS rate from government litigation. present 1% (0.5% CGST + 0.5% SGST/ UTGST, or 1% IGST) to 0.5 % (0.25% CGST iii. Amendment in Section 107 and Section 112 of CGST Act for reducing the amount of pre- + 0.25% SGST/UTGST, or 0.5% IGST), to ease deposit required to be paid for filing of the financial burden on the suppliers making appeals under GST: Provisions have been supplies through such ECOs. 114Department of Revenue III v. Change in due date for filing of return in viii. Provision of new optional facility for FORM GSTR-4 for composition taxpayers taxpayers to amend the details in GSTR-1: from 30th April to 30th June: Amendments The Central Government has provided for a have been done in clause (ii) of sub-rule (1) of new optional facility by way of FORM GSTR- Rule 62 of CGST Rules, 2017 and FORM 1A (w.e.f. 10.07.2024) to facilitate the taxpayers GSTR-4 to extend the due date for filing of to amend the details in FORM GSTR-1 for a return in FORM GSTR-4 for composition tax period and/ or to declare additional details, taxpayers from 30th April to 30th June following if any, before filing of return in FORM GSTR- the end of the financial year. This will apply for 3B for the said tax period. This will facilitate returns for the financial year 2024-25 onwards. taxpayer to add any particulars of supply of the The same would give more time to the current tax period missed out in reporting in taxpayers who opt to pay tax under composition FORM GSTR-1 of the said tax period or to levy to furnish the said return. amend any particulars already declared in FORM GSTR-1 of the current tax period vi. Amendments of Section 16(4) of CGST Act, (including those declared in IFF, for the first to be made effective from July 1st, 2017,to and second months of a quarter, if any, for relax condition of section 16(4) of the CGST quarterly taxpayers), to ensure that correct Act in respect of initial years of liability is auto-populated in FORM GSTR-3B. implementation of GST, i.e. financial years 2017-18, 2018-19, 2019-20 and 2020-21: ix. A consolidated guidelines dated 30.03.2024 Considering the difficulties faced by the was issued to all CGST Zones in respect of taxpayers during the initial years of Ease of Doing Business(EODB) to be followed implementation of GST, based on the during investigations of cases against regular recommendations of the GST Council, taxpayers. retrospective amendment has been made in Section 16(4) of CGST Act to relax the time x. Besides, based on the recommendations of the limit to avail input tax credit in respect of any GST Council, a large number of notifications invoice or debit note under Section 16(4) of and circulars have been issued on contentious CGST Act, through any GSTR 3B return filed issues, so as to avoid legal disputes. upto 30.11.2021 for the financial years 2017- xi. Recommendations of the 53rd GST Council 18, 2018-19, 2019-20 and 2020-21, may be deemed to be 30.11.2021. This would benefit Recommendations Relating to GST Rates on Goods a large number of taxpayers, especially smaller ones, who could not file returns in a timely (i) Uniform Integrated GST (IGST) rate of 5% manner in the initial years of GST, due to on imports of parts, components, testing various reasons by which time, the time limit equipment, tools, and tool-kits of aircraft, for availment of Input tax credit, under section regardless of their HS classification to 16(4) of CGST Act had already expired, which stimulate Maintenance, Repair, and has led to issuance of demands denying them Overhaul (MRO) activities in the aviation the benefit of input tax credit. sector, subject to specified conditions. vii. Amendment of Rule 88B of CGST Rules, (ii) All milk cans made of steel, iron, or 2017 in respect of interest under Section aluminium will attract a GST rate of 12%, 50 of CGST Act on delayed filing of returns, irrespective of their intended use. in cases where the credit is available in (iii) The GST rate on cartons, boxes, and cases Electronic Cash Ledger (ECL) on the due made of both corrugated and non- date of filing the said return:-The Central corrugated paper or paperboard (HS codes Government has issued Notification No. 12/ 4819 10 and 4819 20) has been reduced 2024-Central Tax dated 10.07.2024 for from 18% to 12%. amendment in rule 88B (w.e.f. 10.07.2024) of CGST Rules to provide that an amount which (iv) Solar cookers, whether single or dual energy is available in the Electronic Cash Ledger on source, will attract a GST rate of 12%. the due date of filing of return in FORM GSTR- 3B, and is debited while filing the said return, (v) The existing entry covering poultry keeping shall not be included while calculating interest machinery attracting 12% GST has been under section 50 of the CGST Act in respect of amended to specifically include “parts of delayed filing of the said return. This will reduce poultry keeping machinery,” regularizing past interest burden on such taxpayers. practices due to interpretational issues. 115Annual Report 2024-2025 (vi) All types of sprinklers, including fire water No. 12/2017- CTR 28.06.2017 under heading 9963 to sprinklers, will attract a GST rate of 12%, exempt accommodation services having value of supply and past practices will be regularized. of accommodation up to Rs. 20,000/- per month per person subject to the condition that the accommodation (vii) IGST exemption on imports of specified service is supplied for a minimum continuous period of items for defence forces has been extended 90 days [vide Notification No. 04/2024-CTR dated for an additional five years until 30th June 12.07.2024 w.e.f., 15.07.2024]. Similar benefit has been 2029. extended for past cases[Circular No. 228/22/2024-GST (viii)IGST exemption has been extended to dated 15.07.2024]; imports of research equipment and buoys v. Co-insurance premium apportioned by lead under the Research Moored Array for insurer to the co-insurer for the supply of African-Asian-Australian Monsoon Analysis insurance service by lead and co-insurer to the and Prediction (RAMA) programme, subject insured in coinsurance agreements, has been to specified conditions. declared as no supply under Schedule III of the (ix) Compensation Cess on imports into Special CGST Act, 2017 and past cases have been Economic Zones (SEZ) by SEZ units or regularized on ‘as is where is’ basis [Circular No. developers for authorized operations is 228/22/2024-GST dated 15.07.2024]. exempted retrospectively from 1st July 2017. vi. Transaction of ceding commission/re-insurance (x) Compensation Cess is exempted on the commission between insurer and re-insurer has supply of aerated beverages and energy been declared as no supply under Schedule III drinks to authorized customers by Unit Run of CGST Act, 2017 and past cases have been Canteens under the Ministry of Defence. regularized on ‘as is where is’ basis [Circular No. 228/22/2024-GST dated 15.07.2024]. (xi) An ad-hoc IGST exemption is provided on imports of technical documentation for AK- vii. GST liability on reinsurance services of specified 203 rifle kits imported for the Indian Defence insurance schemes covered by Sr. Nos. 35 & 36 forces. of notification No. 12/2017-CT (Rate) dated 28.06.2017 have been regularized on ‘as is where B. Measures for Facilitation of Trade is’ basis for the period from 01.07.2017 to 24.01.2018 [Circular No. 228/22/2024-GST dated i. Section 9(1) of the CGST Act, 2017, is amended 15.07.2024]. to explicitly exclude rectified spirit or ENA from the scope of GST when supplied for viii. GST liability on reinsurance services of the manufacturing alcoholic liquor for human insurance schemes for which total premium is consumption. paid by the Government that are covered under Sr. No. 40 of notification No. 12/2017-CTR dated ii. Services provided by Indian Railways to general 28.06.2017 have been regularized on ‘as is where public, namely, sale of platform tickets, facility of is’ basis for the period from 01.07.2017 to retiring rooms/waiting rooms, cloak room 26.07.2018[Circular No. 228/22/2024-GST dated services and battery-operated car services and 15.07.2024]. Intra-Railway transactions have been exempted [vide Notification No. 04/2024-CTR dated ix. Clarification has been issued that retrocession 12.07.2024 w.e.f., 15.07.2024]. The issue for the is‘re-insurance of re-insurance’ and therefore, past period has also been regularized [Circular eligible for the exemption under Sl. No. 36A of No. 228/22/2024-GST dated 15.07.2024]. the notification No. 12/2017-CTR dated 28.06.2017[Circular No. 228/22/2024-GST dated iii. Services provided by Special Purpose Vehicles 15.07.2024]. (SPV) to Indian Railway by way of allowing Indian Railway to use infrastructure built & owned by x. Clarification has been issued that statutory SPV during the concession period and collections made by Real Estate Regulatory maintenance services supplied by Indian Authority (RERA) are exempt from GST as they Railways to SPV have been exempted [vide fall within the scope of entry 4 of No.12/2017- Notification No. 04/2024-CTR dated 12.07.2024 CTR dated 28.06.2017 [Circular No. 228/22/ w.e.f., 15.07.2024]. The issue for the past has 2024-GST dated 15.07.2024]. also been [Circular No. 228/22/2024-GST dated 15.07.2024]; xi. Clarification has been issued that further sharing of the incentive by acquiring bank with other iv. A separate entry has been created in notification stakeholders, where the sharing of such incentive 116Department of Revenue III is clearly defined under Incentive scheme for vi. It has been recommended to clarify that location promotion of RuPay Debit Cards and low value charges or Preferential Location Charges (PLC) BHIM-UPI transactions and is decided in the paid along with the consideration for the proportion and manner by NPCI in consultation construction services of residential/commercial/ with the participating banks is not taxable industrial complex before issuance of completion [Circular No. 228/22/2024-GST dated certificate forms part of composite supply where 15.07.2024]. supply of construction services is the main service and PLC is naturally bundled with it and xii. Recommendations of the 54th GST Council are eligible for same tax treatment as the main supply that is, construction service. Recommendations Relating to GST Rates on Goods vii. It has been recommended to clarify that affiliation services provided by educational boards like (i) GST rate on extruded or expanded products, CBSE are taxable. It has also been salted or savoury, reduced from 18% to 12%, recommended to exempt affiliation services aligning them with GST rate on namkeens, provided by State/Central educational boards, bhujia, mixture, and similar ready-to- educational councils and other similarly placed consume items. bodies to Government Schools prospectively. (ii) GST rate on cancer drugs such as The issue for the past period between 01.07.2017 Trastuzumab Deruxtecan, Osimertinib, and to 17.06.2021 is recommended to be regularized Durvalumab reduced from 12% to 5%. on ‘as is where is’ basis. (iii) Reverse Charge Mechanism introduced on viii. It has been recommended to clarify by way of the supply of metal scrap by unregistered circular that the affiliation services provided by persons to registered persons. A Tax universities to their constituent colleges are not Deducted at Source (TDS) of 2% applies to covered within the ambit of exemptions provided B2B supply of metal scrap by registered to educational institutions in the notification No. persons. 12/2017-CT(R) dated 28.06.2017 and GST at the rate of 18% is applicable on the affiliation services (iv) GST rate on car seats increased from 18% provided by the universities. to 28%, bringing parity with motorcycleseats. ix. It has been recommended to exempt import of C. Other changes in duties services by an establishment of a foreign airlines i. Export duty on various varieties of rice has been company from a related person or any of its reduced. establishment outside India, when made without consideration. The council also recommended ii. A Group of Ministers (GoM) has been constituted to regularise the past period on ‘as is where is’ to holistically look into the issues pertaining to basis. GST on the life insurance and health insurance. x. It has been recommended to bring renting of iii. It has been recommended to notify GST @ 5% commercial property by unregistered person to on the transport of passengers by helicopters on a registered person under Reverse Charge seat share basis and also to regularise the GST Mechanism (RCM) to prevent revenue leakage. for past period on ‘as is where is’ basis. xi. It has been recommended to clarify that when iv. It has been recommended to clarify by way of a ancillary/intermediate services are provided by circular that the approved flying training courses GTA in the course of transportation of goods by conducted by DGCA approved Flying Training road and GTA also issues consignment note, the Organizations (FTOs) are exempt from the levy service will constitute a composite supply and of GST. all such ancillary/intermediate services like loading/unloading, packing/unpacking, v. It has been recommended to exempt supply of transshipment, temporary warehousing etc. will research and development services by a be treated as part of the composite supply. If such Government Entity; or a research association, services are not provided in the course of university, college or other institution, notified transportation of goods and invoiced separately, under clauses (ii) or (iii) of sub-section (1) of then these services will not be treated as section 35 of the Income Tax Act, 1961 using composite supply of transport of goods. Government or private grants. It has also been recommended to regularize past demands on ‘as xii. It has been recommended to regularise the GST is where is’ basis. liability for the past period prior to 01.10.2021 on 117Annual Report 2024-2025 ‘as is where is’ basis, where the film distributor iv. The issue of blocking of websites of overseas or sub-distributor acts on a principal basis to Gambling/ Casino service providers, which are acquire and distribute films. not complying with provisions of CGST Act, 2017 was taken up under Information Technology Act xiii. It has been recommended to exempt supply of and Rules/ instructions issued thereof. services such as application fees for providing electricity connection, rental charges against v. Implementation of Article 8 of the Protocol (WHO electricity meter, testing fees for meters/ FCTC) to Eliminate Illicit Trade in Tobacco & transformers/capacitors, labour charges from Tobacco Products and make tobacco control customers for shifting of meters/service lines, intervention more effective has been taken up in charges for duplicate bills etc. which are consultation with DG (Systems and Data incidental, ancillary or integral to the supply of Management), CBIC. transmission and distribution of electricity by transmission and distribution utilities to their vi. For facilitating understanding and streamlining consumers, when provided as a composite operations of the tax authorities in enforcement supply. It has also been recommended to action undertaken by different indirect tax regularize GST for the past period on ‘as is where authorities, a National Conference of is’ basis. Enforcement chief of the state and central GST formations was organized by Department of 3.3 GST- INVESTIGATION Revenue. The conference apart from i. Government has taken several effective strengthening collaboration between central and measures to curb GST evasion including menace state tax authorities, emphasized on leveraging of fraudulent Input Tax Credit (ITC) availment technology to plug loopholes, importance of based on invoices without actual supply of goods strong data analytics and balancing enforcement and/or services. Besides denting GST revenue, with taxpayer rights. it has a bearing on Income Tax collection, bank finance and money laundering. Government from vii. To nurture uniformity and optimum resource use, time to time has taken several measures to and at the same time keep the balance of ease prevent GST related offences, which include of doing business in enforcement activities, using robust data analytics and artificial comprehensive guidelines were issued by GST- intelligence to identify and track risky taxpayers Investigation Wing to the field formations under and detect tax evasion and sharing of data with CBIC, to be followed while conducting partner law enforcement agencies for more investigations which were also made applicable targeted interventions. to Audit Commissionerates. A total no. of 20582 and 17804 cases involving 3.4 CENTRAL EXCISE AND SERVICE TAX (CX-1) amount of Rs. 2,30,332 Cr. and Rs. 153693 Cr. have been booked for GST evasion on various The Budgetary Support Scheme under GST was counts during 2023-24 and 2024-25 (up to notified by the Department of Promotion of Industry and September, 2024) respectively. Amount realized Internal Trade, Ministry of Commerce & Industry and is / recovered during the corresponding period was being implemented by CX Wing in CBIC. It covers the Rs. 31758 Cr. and Rs. 14392 Cr., respectively. Himalayan States (J&K, Himachal Pradesh, Uttarakhand) Further, 223 and 70 numbers of persons have and North Eastern States (Arunachal Pradesh, Assam, also been arrested during this period respectively. Manipur, Meghalaya, Mizoram, Nagaland and Tripura) including Sikkim. It provides budgetary support to the ii. Continuous monitoring of all enforcement related eligible units under erstwhile Area-based Exemption activities to ensure transparency and streamlining enforcement action. Scheme and were availing benefits under the respective central excise exemption notification in the erstwhile iii. With the change in the outlook of preventive work, regime of Central Excise taxation. which evolves with the changing trade and industry landscape, as well as the transformed During the Special campaign-3 drive for legal landscape of indirect taxes a cleanliness during the period 2nd October to 31st October, comprehensive document covering various 2024 400 files of CX & ST Wing have been scanned & Standard Operating Procedures and instructions weeding out process has been initiated soon under the has been being codified and a comprehensive guidelines of CSMOP, Furthermore electronics scrap & manual for GST Intelligence and Investigation other waste material has been already weeded out during work has been published in this regard. the cleanliness drive. 118Department of Revenue III During the current financial year, the Notifications/Circulars/Instructions issued by the Wings are as follows. S. No. Notification No. & Date Subject 1. No. 26/2024 Central Excise (Tariff) dated Regarding amendment in the 24.10.2024 Fourth Schedule under the heading “MINERAL PRODUCTS” in chapter 27. S. No. Circular No. & Date Subject 1. No. 1086/01/2024-CX-1 dated 03.07.2024 Revised Monetary Limits for Adjudication of Show Cause Notices in Central Excise for commodities classified under Chapter 24 of Schedule IV of Central Excise Act, 1944-reg. S. No. Order No. & Date Subject 1. 02/2024dated 30.09.2024 Appointment of Common Adjudicating Authority in respect of SCNs issued to M/s Techno Electric & Engineering Company Ltd. Reg. 3.5 CUSTOMS (viii) The import duty on gold and silver has been reduced from 15% to 6% while on platinum, the (i) Basic Customs Duty (BCD) on shea nuts reduced duty has been reduced from 15.40% to 6.40%. from 30% to 15%. Similarly the import duty on gold dore and silver (ii) BCD reduced to nil on critical minerals such as dore has been reduced from 14.35% to 5.35%. Antimony, Beryllium, Bismuth, Cobalt, Copper, (ix) The BCD on Garden umbrella has been revised Gallium, Germanium, and others. BCD reduced from ‘20%’ to ‘20% or Rs.60 per piece, whichever to 2.5% on minerals like Graphite, Silicon Quartz, is higher’ and Silicon Dioxide. (x) The effective export duty structure on Raw hides, (iii) BCD on prawn and shrimp feed and fish feed skins and leather have been simplified and reduced to 5%. BCD on live Specific Pathogen rationalized Free (SPF) Vannamei shrimp and Black Tiger shrimp broodstock reduced to 5%. BCD reduced (xi) 188 conditional customs duty exemptions entries on various inputs like mineral and vitamin including concessional rates operating through premixes, krill meal, fish lipid oil, and others, Notification were reviewed. 30 exemptions were subject to IGCR conditions. extended up to 31.3.2029, 126 exemptions were continued up to 31.3.2026 and 28 exemptions (iv) BCD increased on ammonium nitrate from 7.5% were lapsed on their end dates of 30.9.2024. to 10%. While continuing the exemptions/concessional (v) BCD on PVC flex films increased to 25%. rates, some entries have been pruned or modified to include more items. (vi) Customs duty exempted on cancer drugs- Trastuzumab Deruxtecan, Osimertinib, and (xii) Export duty on rice has been exempted. Durvalumab. A. Issuance of Instruction No. 06/2024-Customs (vii) The BCD on cellular mobile phone, PCBA of dt. 23.03.24 cellular mobile phone and charger/adapter of Smooth and fair elections require coordinated  cellular mobile phone has been reduced from and focused attention, including proper sharing 20% to 15%. of information by various LEA’s. To this effect, 119Annual Report 2024-2025 vide Instructions No. 06/2024-Customs dt. generated at different locations will be 23.03.24, a detailed Standard Operating AUTOMATICALLY processed by the Customs Procedure was issued for all formations under automated system (CAS) for onward CBIC to curb the flow of suspicious cash, illicit transmission to the Central Nodal e-DDO and liquor, drugs/narcotics, freebies and smuggled the nominated central nodal e-DDO shall forward goods during elections. It includes instructions the consolidated scroll to the nodal e-PAO. After regarding reporting of major seizures (more than approval from the nodal e-PAO, duty drawback Rs.1 crore) during election & implementation of amounts shall be credited into the exporters’ bank ESMS for reporting interceptions/seizures made accounts linked with PFMS. For this CBIC issued by various enforcement agencies on real-time Instruction No.15/2024-Customs dated basis. 29.05.2024. This paperless functionality is expected to expedite credit of AIR of drawback B. Handing over of Antiquities seized by amount to exporters’ accounts and increase Customs to ASI transparency. Consequent to repatriation of a 16th century  · Notification No. 55/2024-Customs (N.T.) on stolen idol of Maa Kotrakshi, in presence of August 23.08.2024, was issued for revising the Hon’ble Minister of Education and Skill All-Industry Rates (AIR) of duty drawback for gold Development & Entrepreneurship; a project for and silver jewellery and articles of silver. This handing over of antiquities seized pan India by notification amends the earlier Notification No. Customs to ASI was undertaken. A handing over 77/2023-Customs (N.T.) dated October 20, 2023. ceremony was organized on 29.02.2024 chaired by the Hon’ble Finance Minister and 101 such Drawback Division of CBIC assisted the RoDTEP  antiquities were handed over to ASI. A handbook Committee-2023 for reviewing RoDTEP Rates titled ‘Puravshesh ke Prahari’ describing the for various eligible goods, including defence historical importance of these antiquities and role goods, for exports from DTA, AA, EOU & SEZ of Customs in preserving our cultural heritage units. Based on Committee’s recommendations, was also released on the occasion. revised RODTEP rates have been notified by DOC effective from 10.10.2024. C. Drawback & Schemes related issues D. Extended export related benefits for exports DGFT extended the RoDTEP Scheme to include  made through courier mode: good exported from EOU and SEZ sector. To give effect to this, CBIC issued notification nos. 20/ Until now, the Express Cargo Clearance System 2024-Customs (NT) dated 11.03.2024 and 50/ (ECCS) was used for handling courier import and export 2024 -Customs (N.T.) dated 19.07.2024, shipments at the notified International Courier Terminals respectively. (ICTs). However, due to limitations in the system’s architecture, certain export-related payments, such as Notification No. 33/2024-Customs (N.T.) dated  Duty Drawback, RoDTEP, and RoSCTL, could not be 30.04.2024. was issued for amendment in processed through ECCS. To address this issue, it has Notification No. 77/2023-Customs (N.T.) dated been decided to implement the Indian Customs EDI 20.10.2023 relating to All Industry Rates (AIRs) System (ICES) at the International Courier Terminals for of Duty Drawback including defence goods. processing these payments, effective from 12.09.2024.  Circular No. 04/2024-Customs dated 07.05.2024 CBIC vide Notification No. 60/2024-Customs (NT) dated was issued regarding changes made in All 12.09.2024 amended the Courier Imports and Exports Industry Rates (AIRs) of duty Drawback notified (Electronic Declaration and Processing) Regulations, vide Notification No77/2023-Customs (N.T.) 2010 to allow export incentives viz. Drawback, RoDTEP dated 20.10.2023 and 33/2024-Customs (N.T.) (Remission of Duties and Taxes on Exported Products), dated 30.04.2024. RoSCTL (Rebate of State and Central Levies and Taxes) to exports through Courier. Circular No. 15/2024-Customs For disbursal of All Industry Rates (AIR) of duty  dated 12.09.2024 explaining the said amendments and drawback, CBIC has moved from manually informing the stakeholders about extending the export issued physical Cheque (to the nodal bank) benefits to courier exports has also been issued. based process to end-to-end automated PFMS based disbursal of duty drawback amount directly E. Integration with Department of Post & IGST to exporter’s bank accounts. With effect from 5th Refund for Export through Dak- Niryat Kendra (DNK) June, 2024, payment of Drawback amounts into the exporters’ accounts post scroll out, will be CBIC and the Department of Posts (DoP) have jointly facilitated through the Public Finance developed a “hub and spoke” system to facilitate export Management System (PFMS). The scrolls through postal route. The system leverages digital 120Department of Revenue III technology and the vast postal network for creating a H. Exchange Rate Automation Module: paperless, contactless and intermediary-free environment Indian Customs has always been at the forefront for enhancing exports through postal mode. In when it comes to adopting cutting edge technology for continuation of the already authorized 1001 booking post providing better services. In this regard, Board has offices, CBIC vide Circular No. 01/2024 dated 01.02.2024 has further authorized an additional 14 booking post launched the Exchange Rate Automation Module. This offices taking the total number of booking post offices involved API based integration with SBI to receive the covered under the automated system to a total of 1015. Exchange Rates of the currency codes. These rates are Further, the project for automation of IGST refund on automatically updated on the website as well as the postal exports made using the DNK portal has been application for the purpose of trade without any manual implemented with effect from 17th September, 2024. intervention. The modalities have been explained in Circular 07/2024-Customs dated 25.06.2024 and its F. Indian Customs Electronic Commerce/ amendment Circular No. 17/2024-Customs dated Electronic Data Interchange (ICEGATE) 2.0: 18.09.2024. The exchange rates shall be published on ICEGATE website has been revamped to make ICEGATE website at 6:00 p.m. twice a month (i.e. 1st & it more informative and user- friendly. AI-based interactive 3rd Thursdays of every month) and shall be accessible Chatbot (Vaani) has been launched for trade at the for public viewing on ICEGATE website. Thus, the ICEGATE website to help users with information to access automated system has now replaced the manual process various services of ICEGATE. of publication of exchange rates. ICEGATE 2.0 website is a complete bilingual I. Encouraging Women participation in website which has been designed to provide International Trade: contemporary user interface for enhanced user The Zones have been instructed by the Board experience. New feature “widget” is also being provided Circular No. 2/2024-Customs, dated March 8, to show important information such as Message filing status, details of tickets, refunds, and duty payments etc. 2024 to promote women’s representation and in personalised dashboard without going for enquiries. support within customs and trade activities by: Data available in the widgets is also downloadable. i. ensuring women’s representation in PTFC Customized notifications facility is being provided to the and CCFC meetings, preferably through registered users to choose the events for which they want women’s associations; to receive notifications. Registered users can file their documents themselves using online Web forms on ii. including at least one agenda point from ICEGATE as well which is advancement from earlier women perspective; offline webforms. iii. encouraging Trade bodies/ custodians to G. USE of ICETABs for efficient examination and establish dedicated help desks and clearance process: processing mechanisms for women traders and women logistics service providers; The ICETAB is part of the CBIC’s ongoing initiatives to simplify trade procedures. The ICETAB is a iv. Supporting the upskilling women logistics mobile tablet designed to facilitate the quick and real- service providers, freight forwarders and time upload of examination reports, enabling Customs custom brokers by offering relevant trainings Officers to enhance efficiency while on the go. The for women. ICETAB has an exclusive Mobile Application to enable examining officers to view RMS Instructions, Examination This initiative highlights the importance of gender Order and Bill of Entry (BE) details along with other equality in trade (be it as traders, customs house agents, supporting documents, capture images of cargo freight forwarders, or customs brokers) advocating for examination for integration with the Bill of Entry and active efforts from Partner Government Agencies and submit examination report immediately on completion of trade bodies to support the increasing participation of the cargo examination. The ICETAB by Customs Officers women across various roles in the logistics sector. The is aimed at enhancing transparency and efficiency in detailed guidelines for encouraging Women participation customs processes for speedy examination of import in International Trade are outlined in CBIC Circular No. consignments with capability to attach photographs with 2/2024-Customs dated 08.03.2024 geo-referencing and no requirement for any paper documents for the purpose of examination. This will also J. Mandatory additional qualifiers in import/ facilitate quick upload of the examination report on the export declarations in respect of Synthetic or go in real time basis and making the examination process Reconstructed Diamonds w.e.f. 01.12.2024: transparent and faster. The detailed guidelines for the use of ICETAB are outlined in CBIC Circular No. 10/2024- As per the Bill of Entry (Electronic Integrated Customs dated 20.08.2024. Declaration and Paperless Processing) Regulations, 121Annual Report 2024-2025 2018 and Shipping Bill (Electronic Integrated Declaration N. Launch of module for SCMTR (Sea Cargo and Paperless Processing) Regulations, 2019, it will be Manifest and Transhipment Regulations): mandatory to declare additional qualifiers/identifiers for The SCMTR also specifies changes to the Lab Grown Diamond at the time of filing of import/export formats and timelines for filing manifestdeclarations. declarations with effect from 01.12.2024. Declaration of Some of the features of the SCMTR include: additional qualifiers would improve quality of assessment  Requesting additional details about each and streamline intervention and enhance facilitation. The cargo, such as the invoice value and HSN detailed instructions in this regard are outlined in CBIC  Advancing the time of reporting to the port Circular No. 21/2024-Customs dated 30.10.2024. of departure K. Digitization of Customs Bonded Warehouse  Ensuring track and trace of reported cargo procedures relating to obtaining Warehouse License, Bond to Bond Movement of warehoused goods, and  Including features for moving vessels within uploading of Monthly Returns: India  Capturing details electronically, such as crew The CBIC has launched a Warehouse Module lists, instead of manually. on ICEGATE for Customs Bonded Warehouses, enabling: (i) online filing of applications for obtaining a Warehouse O. Document Download Utility: License; (ii) online submission and processing of requests A utility developed at ICEGATE to allow users to to transfer warehoused goods to another person and/ or download various documents like BE, SB, LEO, OOC, warehouse; and (iii) uploading Monthly returns for Gatepass for OOC, Gatepass for LEO in the e-Copy Customs Bonded Warehouses. The Directorate General functionality at ICEGATE. of Systems (DG Systems) has issued comprehensive P. Tracking the details of NOC/Release Order User Manuals for both trade members and departmental Issuance details from the PGAs officers. Detailed procedures are outlined in Circular No. 19/2024-Customs, dated 30.09.2024. A facility has been enabled on the dashboard of the users to provide the tracking details of the NOC/ L. Performance of ongoing schemes/ programs: Release Order issued by the respective PGA (FSSAI, AQCS and PQMS) on the ICEGATE website against the (a) India’s overall trade facilitation score in the Global Bill of entry filed by the user. Survey on Digital and Sustainable Trade Facilitation conducted by the UNESCAP, 2023, Q. API integration with Custodians (Sea and Land): increased from 78.49% in 2019 to 93.55% in 2023, indicating a marked improvement in the The existing MFTP based integration was efficiency of cross-border trade procedures. migrated to API based integration with CONCOR and (Source: CBIC Circular No. 10/2024- Customs Adani Land and Sea Ports respectively. This has facilitated the exchange of data between ICEGATE dated 20.08.2024) application and Custodians to share the data ona real (b) India’s Score in UN Trade Facilitation survey on time basis. “women in Trade Facilitation” has increased from R. Launch of Mobile Application for Internal and 0% in 2019 to 66% in 2021 and this has resulted External Users over Android Platform: in overall improvement in India ranking in UN Services of ICEGATE like Filing, e-Payment, Trade Facilitation survey.  accessing various enquiries over Android M. Provisioning services to SEZ Units at based mobile have been launched. This will ICEGATE: soon be available on iOS platform. Migration of critical functionalities like EDI Enablement of SEZ Sites was successfully  Integration with eSeal Vendors, eScrip, completed. Some key services likeRegistration of SEZ Customs E- payment Platform, Integration Users, Child User Registration, Amendment in with DGFT, Examination Module,Integration Registration,filing services, Inter and Intra Goods with GSTN, Container Scanning Module Movement, DTA Procurement, ETP Webformand from ICEGATE 1.0 to ICEGATE 2.0. The facilitating DSC Amendment for SEZ users were former being based on legacy-based provisioned for the SEZ users at ICEGATE.A total of 273 architecture was migrated to a micro SEZ sites were launched in ICES on 01.07.2024. services-based architecture. 122Department of Revenue III S. Integration with FSSAI, PQMS, AQCS under Cooperative Arrangement between the  Single Sign On services: Central Board of Indirect Taxes and Customs of the Government of the Republic A facility has been provided to the registered of India and the New Zealand Customs users to access the respective portal of the agencies like Service in Customs Matter was signed on FSSAI, AQCS and PQMS from the ICEGATE website 06.08.2024 by Shri Sanjay Kumar Agarwal, without any login at the respective PGA portal. This will Chairman, CBIC and Ms. Christine be made live with other PGAs as well in the future. Stevenson, Comptroller, New Zealand T. Integration with BIS: Customs Service, New Zealand. API based integration between BIS and · For providing connectivity to landlocked ICEGATE to sharethe license details of the manufacturer developing country Bhutan, CBIC in February this year- for reference to the officer. 2024 has issued a Standard Operating Procedure allowing transit of goods between Bhutan and Bangladesh U. Integration with DGFT for RCMC details: using riverine route through India with the entry/exit points at Jogighopa and Pandu ports in Assam. API based integration between DGFTand ICEGATE to share the RCMC details of the user from CBIC hosted the 5th Joint Group of Customs  DGFT. These details are shown to the user on the Meeting between India & Bhutan from 6th - dashboard at ICEGATE. 7th May, 2024 in Leh, India. V. Post EGM Amendment Module Circular No. 09/2024-Customs dated  09.07.2024 has been issued amending Functionality for allowing the officer to amend the circular No. 29/2020- Customs dated shipping bill after filing of EGM has been developed. Once 22.6.2020 for allowing transshipment of a shipping bill is amended, the export incentiveswould Bangladesh export cargo to third Countries be processed again and the benefits would be paid to through Air Cargo Complex, Kempegowda the exporter as per the existing functionalities. International Airport Bengaluru. W. International Co-operation & mutual Recently, CBIC lead Capacity Building Agreements:  Program on “Advancing Bhutan-India Trade Agreement between the Government of the and Economic, Partnership” at Thimpu,  Republic of India and the Government of the Phuentsholing, Gelephu and Samdrup from Republic of Madagascar on Cooperation and 29th July- 01st August, 2024. (Press release Mutual Administrative Assistance in attached). Customs Matters was signed on 27.06.2024 4th National Conference on the Functioning by Mr. Sanjay Kumar Agarwal, Chairman,  of Land Customs Stations (LCSs) was CBIC and Mr. Lainkana Zafivanona Ernest, organized on 28th and 29th August, 2024. Director General of Customs, Ministry of Economy and Finance, Madagascar on the Notification No.71/2024-Cus (N.T) dated  side-lines of WCO Council Meeting in 29.10.2024 has been issued for notifying Brussels. Ultapani LCS route Road from Ultapani via Saralpara via Naharani (SSB Camp) to Agreement between the Government of the  Sarpang District (Bhutan) by amendment of Republic of India and the Government of the Principal Notification No. 63/1994-Customs Republic of Belarus on Cooperation and (N.T.) dated 21st November, 1994. Mutual Assistance in Customs Matters was signed on 28.06.2024 by Mr. Sanjay Kumar X. Upcoming development Agarwal, Chairman, CBIC and Mr. Vladimir Orlovasky, Chairman, State Customs 1. Amendment in a shipping bill Post EGM. Committee, Belarus on the side-lines of 2. Hand carriage of Cargo (New automation of manual WCO Council Meeting in Brussels. process). MoU between the CBIC and General  3.6 COMMISSIONER INVESTIGATION Department of Vietnam Customs on (CUSTOMS), CBIC Capacity Building was signed on 31.07.2024 by the Chairman, CBIC and The office of Commissioner Investigation Director General of General Department of (Customs), CBIC deals with policy matters relating to Vietnam Customs. Search Seizure, Arrest, Prosecution and compounding 123Annual Report 2024-2025 offences under Customs Act,1962 (All legislative matters regarding Guidelines for Customs field relating to Chapter XIII, XIV and XVI of the Customs Act, formations in maintaining ease of doing business 1962). This office also deals with matters related to while engaging in investigation into tax evasion Disposal of various seized and confiscated goods cases in import or export. The guidelines inter- including Gold and Narcotics, MLAT requests, alia prescribe standard operating procedures, in- Prosecution of officers under Customs Act, Presidential built mechanisms for close supervision of all CI Award, Reward to officers as well as informers, NCORD, investigations and pro-active grievance redressal Election matters and matters pertaining to FATF Cell in system for ensuring a balance between customs CBIC. enforcement activities and trade facilitation. The major activities and policy decisions taken  Disposal of Gold:- This office issued Instruction by this office: No. 26/2024-Customs dt 30.10.2024 regarding revised mapping of Customs jurisdictions to  PNRI Notification:- Passenger Name Record Focal Customs Commissionerate’s (FCC) and Information (First Amendment) Regulations, 2024 were issued vide CBIC Notification No. 68/ India Government (IG) Mints. 2024 -Customs (N.T.) dated 22.10.2024  Instruction No. 19/2024-Customs:- Initiative mandating aircraft operators to transfer taken to define an SOP with safeguards for passenger name record information twice — not handling cases of the provisional attachment of later than 24 hours before departure time and at bank accounts under section 110(5) of Customs departure time-wheels off. Act, 1962, which were introduced in statute book  EoDB Instruction:- This office issued Instruction in 2019. Instruction No. 19/2024-Customs dated no. 27/2024-Customs dated 01.11.2024 22.07.2024 issued accordingly. 3.7 LEGAL CELL, CBIC Important items of work accomplished during the Period 01.04.2024 – till date: Special Leave Petition Proposal SLP Filed No SLP Withdrawn Transferred received 238 128 41 4 0 Appointment of Sr./Jr. Standing Counsels/SPPs/Special Counsels/Special Fee Counsels Category of Total Proposals (No. Proposals processed Appointed Counsels of Counsels) (No. of Counsels) Sr./Jr. Standing 2 (39) 2 (39) 487 Counsels Special Public 9 (94) 9 (93) 77 Prosecutors Special Counsel - - - Special Fee 3 (3) 3 (3) 3 Counsels Authorization No. of requests received for No. of authorization No. of authorization authorization processed issued 3210 3210 3204 124Department of Revenue III Commissioner Public Accounts Committee (PAC) Summary of important observations included in Audit Reports No. of paras/PA reports on which S. Year ATNs have been Details of the Paras/PA reprots on which ATNs are No. (2024-25) submitted to PAC pending after vetting by Audit No. of ATNs not No. of ATNs No. of ATNs sent by the sent but which have 1st April Ministry even returned with been finally 2024 to for the first time observations vetted by Audit 30th and Audit is but have not November awaiting their been submitted 2024 resubmission by the Ministry by the Ministry to the PAC PAC- GST Section 1 5 13 6 5 PAC -Customs Section 2 24 0 10 4 Total 29 13 16 9 3.8 DIRECTORATE GENERAL OF HUMAN F.Y. 2024-25, out of the total allocation of BE of Rs.895.97 RESOURCES DEVELOPMENT (DGHRD) crore under Capital Heads (4059 & 4216) an amount of DGHRD – Infrastructure Division Rs. 752.31 Cr. has been released till 30.11.2024. 1. Infrastructure development forms an integral part 2. Major ongoing infrastructure proposals as on of Human Resource Development in CBIC. During the 30.11.2024. S.No. Zone/Directorate Proposal in brief Total cost Tentative date of (Rs. in completion Cr.) 1 Mumbai Zone-I Construction of Office complex and 975.72 April, 2026 Customs residential quarters at Customs Enclave Plot, Wadala, Mumbai 2 NACIN Construction of new NACIN complex at 840.86 Dec, 2024 Hindupur, Palasamundram (A.P) *Inaugurated by the Hon’ble PM on 16.01.2024. 3 Hyderabad CGST Construction of Office building (GF+28 644.63 Sept, 2027 Storeyed) & residential quarters at Khajaguda village, Serilingampally Mandal, Hyderabad 125Annual Report 2024-2025 Total cost Tentative S.No. Zone/Directorate Proposal in brief (Rs. in date of Cr.) completion 4 Guwahati CGST Construction of office building & residential 256.63 Oct, 2027 quarters for CGST Shillong, Customs (NER) Shillong, CGST Audit Comm'te and NACIN Shillong 5 Meerut CGST Construction of office building for CGST 116.42 Dec, 2024 Ghaziabad and Audit-II, at Ghaziabad 6 DRI Construction of DRI (HQ.) Office building at 99.39 Dec, 2024 Vasant Kunj Delhi 7 Chennai Construction of office accommodation building 91.64 April, 2025 Customs for Chennai Customs Audit and Import Comm’te and Partner Govt. Agencies at Jaffer Syarang Street, Chennai. 8 Mumbai –II Construction of additional office building (G+7) 80.60 June, 2025 Customs at JNCH, Nhava Sheva, Dist. Raigad, Mumbai 9 Chennai Construction of 36 residential quarters at 65.42 Dec, 2024 Customs Nungambakkam, Chennai 10 DRI Construction of DRI office building at Kolkata 64.50 Dec, 2024 11 CGST Construction of office building for CGST 56.30 July, 2025 Ahmedabad Commissionerate and Customs Division at Bhavnagar (MoHUA project) 12 NACIN Construction of RTI, NACIN at Attapur, 46.71 Jan, 2025 Hyderabad Hyderabad (NBCC project) 13 Pune CGST Construction of office building for CGST 42.44 Dec, 2024 Commissionerate Kolhapur, at Tarabai Park, Kolhapur 14 Hyderabad Construction of office building for Hyderabad 44.62 March, 2025 CGST Custom Commissionerate at Mamidipally, Hyderabad. 15 Jaipur CGST Construction of new office building for Udaipur 42.02 Dec, 2024 CGST Comm'te Inaugurated on 23.08.2024 16 DRI Ahmedabad Construction of office premises for Directorate 39.86 Oct, 2026 of Revenue Intelligence, Zonal Unit, Ahmedabad 17 Visakhapatnam 36.11 May, 2025 Construction of office building at Tirupati CGST 18 Panchkula CGST Construction of office building in Sector-3, 34.47 Dec, 2024 Rohtak for Central Excise Commissionerate, Rohtak. (MoHUA project) Inaugurated by Chairman, CBIC on 05.06.2024. 19 Mumbai CGST Construction of 3 Div. offices and 14 ranges 33.25 Dec, 2024 offices on plot bearing Nos P-34 at MIDC, Boisar Inaugurated on 01.07.2024 20 Guwahati CGST Const. of office building and boundary wall at 30.08 August, Lamphel at Imphal 2027 126Department of Revenue III R&M Data for Annual Report CGST Division-I Jabalpur, CGST Division-II Jabalpur, Range Office 7 Range Audit circle Jabalpur & Customs 1. During the period from 01.04.2024 to 30.11.2024, circle Valued at Rs. 25.88 Crores (Rupees Twenty-Five total 165 proposals amounting to Rs.124.57 Cr. Crores Eighty-Eight Lakh) during the FY 2024-25. In have been sanctioned/ revalidated towards Principle approval has been accorded by the IFU / DoE. various repair & maintenance of the departmental Administrative approval & expenditure sanction has been office buildings and residential complexes. accorded by the Secretary Revenue on 04.12.2024. 2. Out of 165 proposals, 71 are new sanctioned 5. Financial and administrative approval for proposals amounting to Rs.45.62 Cr. and 94 are acquisition of 2000 Sq. mtr. Of vacant surplus salt land, revalidation proposals amounting to Rs. 78.95 Cr. located at Bhandup Mumbai, has been accorded by the 3. Some major fresh sanctioned projects in this IFU / DoE & Secretary Revenue on 25.11.2024. Sanction period are as follows: order is pending for issuance. Rs.4,88,35,000/- has been sanctioned for CUSTOMS & CENTRAL EXCISE WELFARE FUND  installation/ provision of lifts in the residential I. The performance and achievements under the quarters (Type-I to Type IV) for GST Bhavan key/flagship programmes being implemented by residential colony /Complex, GST Bhavan, the Welfare Division during the year: Pune. A number of welfare schemes are being Rs.2,92,06,064/- under MH-2042 for regular  implemented for staff welfare under the aegis of maintenance charges for DG (Systems) Customs & Central Excise Welfare Fund. A Office at NBCC Plaza Building for the F.Y. thorough revision of most of the welfare schemes 2023-24. has been completed, where-after not only the Rs.2,43,02,681/- for Aesthetic improvement schemes have been updated and rationalized  of exterior area & repair and upgradation with changing times but amounts granted under (civil & electrical) of 19 Nos. Customs the schemes have also substantially enhanced quarters (type-v Bungalows) at IT Colony, both in cases of the schemes targeted for benefits CBD Belapur, Navi Mumbai. of individuals and as well for procuring energy efficient and latest technology gadgets/items for Report of Land Section from 01.04.2024 to 30.11.2024 setting up of common facilities. The major schemes are detailed here-under: 1. Acquisition of land measuring 48564 Sq. mtr. located at Mundra for construction of office building and  Medical Assistance: residential accommodation for Ahmedabad Customs Zone / Mundra Commissionerate, Mundra valued at ‘Rs. Financial assistance is granted for the portion of 12.95 crore (Rupees Twelve Crores Ninety-Five Lakh medical expenses incurred by departmental Only) has been approved during the FY 2024-25. Sanction officials on self and dependent family, which could order issued on 26.11.2024. not be reimbursed under CGHS/ CS (MA) Rules. 2. Acquisition of land measuring 4047 Sq. mtr. Under the scheme, 161 departmental officials located at Mangaluru for office building of Mangaluru have been granted a total amount of Rs. Central Excise & Central Tax Commissionerate DGGI 1,43,00,293/-, as on 28.11.2024. Mangalore Regional Unit and Audit Circle, Mangalore  Ex-gratia assistance to the families of valued at Rs. 20.81 crores (Rupees Twenty Crores Eight deceased officers: One Lakh) during the FY 2024-25. In Principle approval has been accorded by the IFU / DoE. Administrative Ex-gratia financial assistance is granted to the approval & expenditure sanction has been accorded by bereaved families of officials in cases of deaths the Secretary Revenue on 04.12.2024. of departmental officials while in service. 3. Acquisition of land measuring 2259.38 Sq. mtr. The maximum financial assistance granted after located at Visakhapatnam for office building of DGGI revision of guidelines has been enhanced from valued at Rs. 31.05 Crores (Rupees Thirty-One Crores Rs. 7.5 lakhs to Rs. 25.0 Lakhs, including a Five Lakh) during the FY 2024-25. In Principle approval special provision of Rs. 7 Lakhs in cases of has been accorded by the IFU / DoE. Administrative deaths of departmental officials due to COVID- approval & expenditure sanction has been accorded by 19 contacted while on duty. 82 bereaved families the Secretary Revenue on 04.12.2024. of departmental officials have been granted Rs. 3,85,00,000/- under the Scheme, as on 4. Acquisition of land measuring 5462 Sq. mtr. 28.11.2024. located at Jabalpur for CGST headquarters Jabalpur, 127Annual Report 2024-2025  Setting up/ refurbishing of Departmental  Annual Medical Examination for Group ‘B’ Canteens/ Kitchenettes: and Group ‘C’ officials: Assistance is granted from the Welfare Fund for A scheme for funding of Annual Medical setting up/ refurbishing of Departmental Examination for Group ‘B’ and Group ‘C’ officials Canteens/ Kitchenettes by formations under of age 40 years and above from Welfare Fund CBIC. 4 proposals for setting up of Canteen has been launched. facilities have been approved granting a total  Financial assistance for the Subsidized financial assistance of Rs. 29,14,350/- as on 28.11.2024. transport facility for the Staff posted at JNCH, Nhava Sheva, Raigarh  Setting up/ refurbishing of Departmental Guest Houses: Under the scheme, partial funding of the subsidized transport facility for the officers/staff Assistance is granted from the Welfare Fund for posted at JNCH, Nhava Sheva, Raigarh total setting up/ refurbishing of Departmental Guest amount of Rs. 11,93,854/- as on 28.11.2024 has Houses by formations under CBIC. 6 proposal been sanctioned by the Governing Body of the has been approved granting a total financial Customs & Central Excise Welfare Fund. assistance of Rs. 1,33,06,393/- as on 28.11.2024.  Assistance to the needy Persons with  Promotion of Adventure Sports: Disability (PwD): Assistance is granted for participation in various A Welfare scheme for grant of financial outdoor adventure sports/ activities like trekking, assistance to the needy Persons with Disability rock climbing, adventure camps/activity/course, (PwD) of departmental officials or their dependent water skiing, paragliding, parasailing, hot air family members has been launched by the CBIC ballooning, white water rafting etc. from the Customs & Central Excise Welfare  Cash Awards for winning Medals/Civilian Fund. awards in sports and assistance for 3.9 DIRECTORATE GENERAL OF participation in sports events: PERFORMANCE MANAGEMENT (DGPM) Cash Awards are granted for winning Medals/ 1. DGPM comprises of headquarter and its regional Civilian awards in sports alongwith financial units viz. ERU, WRU, SRU, CRU, NRU. The DGPM was assistance for participation in sports events from tasked with inspection of field Commissionerates viz. the Welfare Fund. After revision of guidelines Commissionerates of Customs, Central Excise & Service amounts granted have been enhanced many Tax (Now GST & Customs) & to ensure that the field folds for winning medals in the international offices are working as per CBIC’s policy guidelines. As sports events/ competitions and are now at par with the amounts granted by the Ministry of Sports per the current guidelines, the DGPM allocates the and Youth Affairs. inspections to The Principal Chief Commissioner/Chief Commissioner of Customs/GST to carry out the  Setting up/ refurbishing of Departmental inspection of various Commissionerates/Directorate and Gyms/ Recreation/ Sports centres: submit the inspection report for issuance of consolidated annual inspection report by DGPM. This is ensured Assistance is granted from the Welfare Fund for through a periodic review of Commissionerate records, setting up/ refurbishing of Departmental Gyms/ making an assessment of how the formation is performing Recreation/ Sports centres by formations under and issuing inspection note, highlighting the specific CBIC. shortcomings with observed trends.  Setting up/ refurbishing of creche facilities: DGPM Inspection (Hqrs.) including all Regional Assistance is granted from the Welfare Fund for Units has been allocated 43 inspection in the current F.Y. setting up/ refurbishing of creche facilities by 2024-25 out of which 26 inspections have been completed formations under CBIC. 1 proposal has been as on 30.11.2024 and remaining 17 inspections shall be approved granting a total financial assistance of completed by the end of December, 2024. Rs. 3,37,461/- as on 28.11.2024. 2. In addition to above task, the DGPM was also entrusted  Preventive and Welfare measures for fighting to carry out the theme-based performance review of against COVID-19: Operational systems of the Commissionerates/ A Scheme for granting financial assistance to the Directorates under “Operational Systems Performance formations under CBIC for taking Preventive and Review” (OSPR). The manual of OSPR has been duly Welfare measures for fighting against COVID-19. finalized by board. The themes for OSPR for the FY 2023- 128Department of Revenue III 24 have been finalized by board and the same have been 5. DGPM seeks the quarterly reports on “SAADHIT” from allocated to Regional Units of DGPM to carry out all Commissionerates/Directorates and furnish a performance review and submit the report to take up the consolidated quarterly report to Board office. In addition, same with board to formulize the revised policy, if any, development of Aakalan dashboard and compilation of for the respective Operational System. monthly Aakalan Report is done by DGPM. 3. Since Feb 2018, DGPM has been appointed Cadre 3.10 DIRECTORATE GENERAL OF TAXPAYER Control Authority of group B and C of all directorates and SERVICES (DGTS) CCA of Hindi Translator (JTO/STO) etc. PUBLICITY 4. DGPM is also working as a nodal agency of CBIC to implement official language policy of Government of India Paras below highlights the performance under and coordinating between the Ministry/ Board and all ‘Advertisement and Publicity’ implemented by DGTS attached/subordinate offices of CBIC. Quarterly Hindi during Calendar Year 2024 (till 30th November 2024) progress report of DGPM is being prepared and forwarded to Ministry. Further, the following major work Publicity Activities during F.Y. 2024-25 for Implementations/promotion of the Official Language were undertaken from 01/04/2024 to 30/11/2024: - 1) The GST regime completed 07 successful years on 01.07.2024. To publicize this occasion and i) Official Language Inspections conducted by make public aware about the latest achievements Hon’ble Committee of Parliament on Official Language during the above period - Full under the GST regime, this Directorate produced assistance was imparted to the offices concerned 02 teasers and 01 short-video on the occasion in preparation of questionnaire. of completion of 7 years of GST along with mnemonic and social media creatives were ii) During the above said period, 49 Official circulated to the field formations and placed on Language inspections of different field formations social media platforms of CBIC. in respect to implementation of Official Language policy of the Government of India during the year 2) 03 tutorial videos in 10 regional languages were were conducted. prepared, highlighting the trade and industry’s iii) During the period 14.09.2024 to 27.09.2024, view point from various sectors/ walks of life Official Language fortnight was celebrated in the throughout the country on GST & Customs. The Directorate General of Performance topic covered were e-Invoice, Biometric Management during the celebration various authentication for GST Registration & IGCRs competition were organized. Rules. iv) Periodic reports received from 3) 10 videos in Hindi & English, highlighting the Commissionerates and Directorates were impact of GST on the common man were consolidated and forwarded to Official Language section of Revenue Department. prepared. v) 03 Quarterly Progress Reports of DGPM were 4) 04 videos in Hindi & dubbing in English and 10 prepared and forwarded to Ministry. regional languages were prepared to raise awareness about fraud in the name of Indian vi) Orders & instructions received from Official Customs. Language section of Revenue Department were circulated amongst the field formations. 5) 05 Outdoor Hoardings to raise awareness about vii) Further, in the year 2024-25 the following major fraud in the name of Indian Custom were work for Implementations/promotion of the prepared and shared with field formations across Official Language is purposed to be undertaken: the nation. viii) During the above said period, Official Language 6) 01 video on launch of ICETAB 2.0 was prepared inspections of 56 field formations in respect to and released in an event in the presence of implementation of Official Language policy of the Hon’ble Finance Minister. Government of India during the year will be conducted. 7) 01 video on Land Customs Station was prepared and released during 4th National Conference on ix) Participation in forthcoming meetings of Hon’ble functioning of Land Customs Stations (LCSs), Committee of Parliament on Official Language. New Delhi. Apart from these, all types of works related to Nodal Office of CBIC for Official Language will be 8) 01 video on the functioning of DGGI was performed. prepared. 129Annual Report 2024-2025 9) 01 video on ‘K-9 Training Centre’ was prepared 6. Highlight of Budget of 2024; and released during IITF, 2024 in the presence 7. Campaign on scam Indian Customs; of Chairman, CBIC. 8. Nasha Mukti Pakhwara; 10) 01 profile video on CBIC was prepared and released during IITF, 2024 in the presence of 9. PIB Publicity Campaign on GST@7; Chairman, CBIC. 10. PIB Publicity campaign in November, 2024; 11) 01 Print advertisement to raise awareness about fraud in the name of Indian Customs was 11. Special programs of the Finance Minister, released in the newspapers across the country. MoS, Chairman and Member covered through Social Media; 12) Print Advertisement on Customs Broker Examination was issued. 12. Special Drive for cleanliness in office premises undertaken by CBIC under 13) Participation in the 43rd India International Trade Swachhta 4.0; etc. Fair organized by ITPO from 14.11.2024 to 27.11.2024. The GST & Customs Pavilion GST 13. Various creatives on a daily basis for pre & & Customs has been awarded the Bronze Medal post- event publicity of GST & Customs for Excellence in Display for Public Pavilion during IITF, 2024 held from 14th- Communication and Outreach at IITF 2024. 27th November, 2024. 14) 53 Brochures (in English & Hindi) were updated Tariff & Coordination and placed on the CBIC website. These brochures also got printed and distributed to Tariff and Coordination entrusted with the task general public/ stakeholders during IITF 2024 of following- held from 14-27th November, 2024. 1) Coordination with the all Zonal units 15) 03 New Brochures (in English) namely ICETAB, Central Excise and Internship in DLA have been 2) Board Coordination Report prepared and uploaded on the CBIC website. 3) E-Helpline Taxpayer Reports (Monthly) 16) Booklet/e-catalogue ‘Bridging Borders & 4) Quarterly Saadhit report Compilation Connecting Nations: India’s Land Customs Stations’ was designed for 4th National 5) Webinar Report Compilation Conference on functioning of Land Customs Stations (LCSs), New Delhi. 6) Monthly Inspection Report Compilation (Including changes of Digital Archives, Publicity through Social Media during F.Y. 2024-25 Citizen Corner, Ease of doing business) Considering the importance of social media as a 7) Organized 30 webinars/Seminars in a powerful means of instant communication with citizens, span of last 8 months. the Department has effectively used this platform namely Facebook page (CBICINDIA), Instagram (@cbicindia), RTI AND PUBLIC GRIEVANCES WhatsApp Channel (@CBIC India), ‘X’ (formerly twitter) handle (@CBIC_India), YouTube channel (CBIC India) This Directorate is the nodal agency under CBIC and Koo (@cbic). to monitor the progress of filing of quarterly returns by public authorities under CBIC on the website of Central 345 Creatives (Approx.) were released through Information Commission (CIC) as required under Section CBIC’s social media sites on Twitter, Facebook, 25(2) of the RTI Act, 2005. It was ensured that all the WhatsApp and Instagram covering various topics mainly field formations under CBIC uploaded their RTI Quarterly related to the following: - Returns on the CIC website. During the period, 1. Clarification on GST; applications received under the RTI Act, 2005 were efficiently handled. Public Grievances received by this 2. Due date of payment of Duty; Directorate were processed/forwarded to the appropriate 3. GST Returns; formations for further action. Total No. of RTI received- 120 and Total No. of RTI disposed-120. Total No of 4. Changes in law and procedure; Public Grievance(s) Received -7641 and Total Public 5. Recommendations of GST Council Grievance(s) disposed- 7640. Total Appeals Received Meetings; -1479 and Total Appeals disposed-1454. 130Department of Revenue III TAXPAYER SERVICE CENTRES as solar, wind, and biogas, and aims to achieve energy efficiency through scientific sustainable building One of the mandates of DGTS has been to set principles. This makes NACIN Palasamudram not only a up Taxpayer Service Centres in all Commissionerate’s. premier training institution but also a model for Vigorous follow-up has ensured setting up of Taxpayer environmentally responsible development Services Centers in the Commissionerate’s of Central Tax, Customs & Central Excise. 3.11.1(b) The training institute National Academy of Customs, Indirect Taxes & Narcotics is accredited as PUBLIC GRIEVANCE OFFICERS $MC7M under the Capacity Building Commission’s Public Grievance Officers have been designated National Standards as assessed by National Accreditation in all the Commissionerate’s across the country and Board of Education and Training (NABET). details are available on CBIC website. The Citizens’ 3.11.2. Trainings Charter provides for appeal to superior officer in the event of unsatisfactory response from Public Grievance Officer. 3.11.2(a): Important Trainings Accordingly, contact details of the superior officer have a. The WCO Sub-regional Workshop on Training also been posted on the website for the benefit of Management took place at NACIN Palasamudram in India taxpayers. from 6-10 May 2024, under the sponsorship of the PUBLICATIONS Customs Cooperation Fund Japan (CCF/Japan). This Workshop marked the second workshop of a two-year Till 30.11.2024 Project, initiated by the ROCB A/P in 2023. Participants The Directorate brought out following publications from 8 Customs Administrations participated in person, at the behest of CBIC and other formations: while an Administration joined online. The comprehensive five-day Workshop focused on enhancing the training 1) Proud Participation in International supply chain management capability of A/P Members through interactive sessions, tools, and experience sharing. It 2) CC Conference booklet (Full Version) provided a platform for these Members to share their 3) CC Conference booklet (Abridged Version) experiences, good practices, and common challenges encountered in their Administration. 4) Quarterly Bulletin report of DGGI (Jan-Mar, 2024) b. HR Conference was organized at NACIN, 5) Swacchta Uday Booklet Palasamudram on 17.5.2024. Chairman Sh. Sanjay K. 6) GST day manual Agarwal, Members, and all Pr/ CCs /DGs and other senior officers of CBIC, gathered to deliberated upon HR issues, 7) Civil List-2024a like Cadre Management, Training, Infrastructure, Welfare and Vigilance 8) Bridging Borders and connecting nations c. NACIN Palasamudram hosted a three-day 9) Quarterly Bulletin report of DGGI (Apr- Jun, 2024) conference on Enforcement and Capacity Building in IPR 10) Customs Automation Initiatives from September 18th to 20th, 2024. The conference was inaugurated by Shri Surjit Bhujabal, Member (Customs). 11) Annual Report of DGGI for the FY 2023-24 Mr. Pranab Kumar Das, Director, WCO Compliance and 12) IITF-2024 Publications Facilitation Directorate, highlighted the importance of IP enforcement from a global perspective and WCO’s efforts Projection till 31.03.2025 in curbing this menace and India’s growing role in the subject Sampark 2025; Calendar 2025; Duty Drawback Schedule; Customs Day Publications etc. d. The 22nd WCO Asia/Pacific Regional Office for Capacity Building (ROCB) and Regional Training Centres 3.11 NACIN, Palasamudram. (RTC) Heads’ Meeting has officially kicked off at NACIN, 3.11.1. Major Achievements Palasamudram, India. Centred on the theme “Engaging New Partners for Effective Training,” the three-day event 3.11.1(a) The National Academy of Customs, Indirect was inaugurated on 24th September 2024, by Member Taxes & Narcotics (NACIN) Palasamudram has been (Admin), CBIC, India. The meeting brought together 34 certified with a “Five Star” rating under the Green Rating participants from 11 countries across the Asia/Pacific for Integrated Habitat Assessment (GRIHA) for its Large region to discuss and collaborate on advancing training Development Masterplan. This prestigious certification initiatives in customs and capacity building. highlights NACIN’s commitment to sustainable and energyefficient building practices. The campus is e. The state of the art Cyber Forensic Lab has been designed to incorporate renewable energy sources such set up at NACIN, Palasamudram in collaboration with 131Annual Report 2024-2025 IIT, Madras and 6 trainings have been conducted for the matters relating to the following attached/ subordinate officers of DRI, DGGI, NCTC, Preventive formations and offices of the Department: the Officer Trainees. a. Enforcement Directorate f. The Probationary Asst Commissioners of GST of Andhra Pradesh have been trained in various aspects b. Central Economic Intelligence Bureau (CEIB) of GST Law and Rules. c. Competent Authorities appointed under SAFEMA g. Workshops on adjudication have been conducted and NDPS for all the Group A officers at various locations in the d. Chief Controller of Factories country in coordination with ZTIs and the field officers to improve the adjudication skills. e. Central Bureau of Narcotics h. The GST Audit officers have been trained on f. Customs, Excise and Service Tax Appellate various area specific aspects GST Audit for uniformity Tribunal (CESTAT) and effective auditing of the GST compliances. g. Goods and Services Tax Appellate Tribunal i. Chairman, CBIC has launched a nationwide (GSTAT) “Behavioural Sensitisation Programme” on 23.10.2024 for field officers who operate at the frontline and interact h. Appellate Tribunal under SAFEMA with citizens. To implement this programme, NACIN has trained 330 Master Trainers in an intensive fiveday training i. Customs and Central Excise Settlement session in 12 batches. These Master Trainers are Commission (CCESC) conducting the training to 35,000 field officers, including j. Financial Intelligence Unit, India (FIU-IND) Group A, B and C in coordination and support with the Zonal Training Institutes of NACIN. 17,000 officers have k. Adjudicating Authority under Prevention of Money already been trained and this training is scheduled to be Laundering Act completed by 23.1.2025. l. National Institute of Public Finance and Policy j. The state of the art Immersive Training Facility (NIPFP) and the Aircraft in the NACIN, Palasamudram campus are being used in imparting immersive training to all the The following items of works are also undertaken trainees who undergo training in the campus. by the Headquarters: 3.11.2(b): Training information Appointment of – During the period April 2024 to October 2024, it is  Chairman and Members of CBIC and CBDT reported that 1091 trainings have been conducted, wherein 73,520 numbers of officers have attended at NACIN  Chairman, Vice Presidents and Members of Palasamudram and all its Zonal/Regional campuses. CESTAT 4. Revenue Headquarters Administration  President and Members of Goods and Services Tax Appellate Tribunal (GSTAT) 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 132Department of Revenue III 4.2 Directorate of Enforcement b) Crime and Criminal Tracking Network & Systems (CCTNS): This national database 4.2.1 Introduction enables law enforcement agencies to share and access information about crimes and criminals, 4.2.1.1 The Directorate of Enforcement (ED) is the facilitating better tracking and investigation. premier law enforcement agency of the Government of India which has been entrusted with the administration c) Interoperable Criminal Justice System (ICJS): and enforcement of the Prevention of Money-Laundering Similar to CCTNS, this system allows for the Act, 2002 (PMLA), Foreign Exchange Management Act, seamless exchange of information among 1999 (FEMA) and the Fugitive Economic Offenders Act, various criminal justice stakeholders, enhancing 2018 (FEOA). ED is the nodal agency for collection of the investigative process. intelligence, carrying out research and analysis and d) CBI portal: CBI regularly uploads branch-wise conducting financial investigation for cases involving copy of FIRs registered by the agency on its money-laundering, bank frauds, financial scams, foreign public website. exchange violations etc. Under the provisions of PMLA, the officers of ED investigate and prosecute the persons e) Other Information from LEAs: This may include involved in money-laundering, attach the proceeds of any additional intelligence or data that can aid in crime and carry out international cooperation with investigations provided by law enforcement competent authorities in foreign jurisdictions including agencies either suo-moto or on request of the recovery of assets stashed abroad and extradition of Directorate. fugitives. ED is also entrusted with the responsibility to f) Suspicious Transaction Reports (STRs) and investigate, adjudicate and impose penalty if any person Operational Analysis (OA) Reports: STRs are violates the provisions of FEMA and launch prosecution reports submitted by financial institutions to FIU in appropriate cases. to notify authorities of suspicious transactions that may indicate ML, while operational analysis 4.2.1.2 In the recent past, the work of Directorate of reports are multiple STRs having similar modus Enforcement has increased considerably both operandi clubbed into a single STR after analysis qualitatively and quantitatively. Investigations have by FIU and thus, OA provides deeper analysis. commenced in several high-profile cases and cases with International ramifications with positive results in terms g) Egmont Secure Web (ESW): Information of attachment and confiscation of proceeds of crime gathered from ESW can provide critical leads related to bank fraud, corruption, drugs & human either to initiate an ML investigation or in ongoing trafficking and terror financing etc. Further, with consistent ML investigations. efforts, ED has secured conviction and confiscation in h) Intelligence Inputs or Complaints from Private 07 cases where trial has been concluded. Individuals: Tips or complaints received from 4.2.2 Functioning of the Directorate the public can be valuable in identifying potential ML activities. 4.2.2.1 The primary function of the Directorate of i) Open-Source Information: This includes data Enforcement is administration and enforcement of the available from media reports, online articles, and Prevention of Money-Laundering Act, 2002 including other publicly accessible sources that may investigation into the offence of money-laundering, filing provide insights into potential ML activities. of prosecution complaint before the Special Court against the accused, attachment and confiscation of property j) Information from Any Other Source: This involved in money-laundering, carrying out international encompasses any additional data that may be cooperation with competent authorities in foreign relevant, regardless of its origin. jurisdictions ensuring that the accused persons do not On receipt of the reference or information from enjoy the proceeds of crime. For collecting information any of the above sources and after making certain and investigating money-laundering (ML) offences, preliminary verification, ED records a case and initiates Regional Offices/Zonal office/Sub-zonal of ED has been investigation (Enforcement Case Information Report or setup across various cities throughout the country. ED the ECIR) following a risk based approach taking into collect information regarding commission of predicate consideration factors such as materiality of the offence, offence related to offence of ML from the following transnational nature of the crime, complexity of the case, sources: the larger public interest and the availability of resources. Identification and quantification of proceeds of crime and a) ML-I and ML-II Reports: These are reports involvement of person/entities in any process or activity provided by Law Enforcement Agencies (LEAs) connected with proceeds of crime are main requirements that provide critical insights into predicate for proving offence of money-laundering as well as for offences related to ML activities and related punishment for money laundering offence. offenses. 133Annual Report 2024-2025 4.2.2.2 The Directorate of Enforcement is also entrusted h) Secreting of commission abroad; with the implementation of the Foreign Exchange i) Acquisition of foreign currency illegally by Indian Management Act, 1999 whose object is to consolidate nationals; and amend the law relating to foreign exchange for facilitating external trade and payments and for promoting j) Unauthorized maintenance of accounts in foreign the orderly development and maintenance of foreign countries including accounts revealed through exchange resources. Information about possible FEMA Panama, Paradise, Pandora papers etc & violations is received from human intelligence resources k) Illegal holding of foreign exchange, foreign and various departments viz. (i) the Reserve Bank of India security or immovable property outside India. regarding export outstanding statements (XOS statement), non-repatriation of foreign exchange, pending Accordingly, ED investigates and issues Show Bills of entries, contraventions pertaining to FDI, list of Cause Notices (SCN) in cases where the allegations of Authorized Dealer-I & II (AD-I & AD-II) who contravene contravention of provisions under FEMA are observed. the provisions of FEMA; (ii) Banks regarding These SCNs upon adjudication results in imposition of contravention of FEMA including through mis-utilization penalty as well as confiscation of currency/property of foreign exchange/advance payments for imports, non- involved. realization of export proceeds and violation of norms of 4.2.2.3 The Directorate of Enforcement has also been NRE/NRO/FCNR accounts; (iii) Custom authorities and entrusted with the implementation of the Fugitive Income Tax Authorities pertaining to over/under voicing Economic Offenders Act, 2018. The FEOA provides for of exports/imports, smuggling of foreign currency, illegal the measures to deter the fugitive economic offenders gold imports, violation of baggage rules etc.; (iv) SEBI from evading the process of law in India by staying outside regarding violation of FDI norms pertaining to FEMA by the jurisdiction of Indian Courts and to preserve the foreign investors etc.; (v) State authorities regarding sanctity of the rule of law in India. Action under the said purchase of agricultural land by foreigners etc. & (vi) Act can be initiated against economic offenders who have Income Tax Authorities regarding acquisition of left India so as to avoid criminal prosecution or who, being undisclosed foreign assets under Black Money Act or abroad, refuse to return to India to face criminal otherwise which invites action under section 37A of prosecution and where the total amount involved in the FEMA. Further, the following categories of cases under economic offence is more than Rs. 100 crore. FEMA are investigated by this Directorate as under: 4.2.3 Organizational Structure a) Under-invoicing of exports and over-invoicing of imports and other forms of invoice manipulation; 4.2.3.1 The Directorate of Enforcement is headed by the Director, who is not below the rank of Additional Secretary b) Non repatriation of the proceeds of exported to the Government of India. He is assisted in his work at goods; the Headquarters by officers of all ranks. Sanctioned c) Siphoning off of foreign exchange against strength of 03 Special Directors, 11 Additional/Joint fictitious and bogus imports; Directors and a number of other officers/staff is available in HQ to assist the Director, ED. The Headquarters office d) Illegal acquisition of foreign exchange through (HQ) of ED is situated in New Delhi. The functional Hawala; establishment of ED is divided into 05 Regions located e) Restriction in acquisition and transfer of at Chandigarh (Northern Region), Chennai (Southern agricultural land or farm house or plantation Region), Delhi (Central Region), Kolkata (Eastern Region) property by persons resident outside India and and Mumbai (Western Region). Each region is headed restriction on acquisition of immovable property by a Special Director. Apart from the above Regions, by nationals of certain countries; special units named as Headquarters Investigation Units (HIUs) and Special Task Force (STF) headed by the f) Remittances of Non-resident Indians other than Special Director are also functioning at the Headquarters through normal banking channels i.e. through office. Regions are constituted by Zone(s) headed by compensatory payments; Additional Directors/Joint Directors and Sub-Zone(s) g) Violation of norms related to GDRs, E- headed by Deputy Directors. Sub-Zones are controlled commerce, Foreign Direct Investment etc.; by respective Zones. 134Department of Revenue III 4.2.3.2 Details of functions performed in HQ are as follows: Sr. No. Section Work Assigned 01. Establishment • This Section deals with recruitment, transfer, posting etc. Section • All Human Resource related work including maintaining incumbency position of officers/staff; filling up vacant posts by issuing vacancy circulars/making correspondence with UPSC, SSC etc. • Extension of deputation tenure of officers, holding of DPC, departmental examination, Selection of Legal Consultants etc. • Framing and amendment of Recruitment Rules. • CAT Cases / High Court / Supreme Court matters of Establishment. 02. Admin and • All administration and accounts related work including office budget Accounts and allocation of funds to field formations. Section • Management of office expenses viz. Salary, GPF, pension, gratuity, leave records & encashment, SSF, etc. • Liaisoning with DoR for pending proposals. • Procurement/Lease/Contract of vehicles, office equipment etc. • Processing of professional & legal bills and granting financial approvals. • Arranging physical infrastructure (office & residence). • CCTV Camera installation and security of HQ premises etc. • Other miscellaneous work 03. Vigilance • All vigilance related work including disciplinary proceedings of Section officers and officials. • Immovable Property Returns (IPRs) and APARs of all the officials of the Directorate. • Vigilance Clearance, Vigilance Complaints, preparation of Agreed List and ODI List, etc. are being handled by this section. • Handling intimations under rule 18 of CCS Conduct Rules. • Processing applications for foreign visits & higher studies. 04. Coordination • Coordination Section has 03 functioning- Coordination, PMLA Section Section and RTI. • Coordinating with various sections of HQ and field formations for collection and compilation of various reports. • Coordination with Department of Revenue (Monthly report on Non- Tax Revenue & Significant Event, Monthly Progress Report (MPR), sending comments on Draft Cabinet Notes, Draft Bills & FDI proposals etc) and other Ministries (e.g. antecedent verification) / Departments for sending various reports. • Analysis of Monthly DO report received from Regional SDEs/SDE(HIU/STF). • Processing of GEP applications, verification of entities referred by RBI for Small Finance Bank and Payment Gateway Bank license etc. • Monitoring of recording of ECIR in coordination with regions/zones and predicate agencies; Compilation and dissemination of ML-1 and ML-2 reports; holding of RAMC meetings etc. • Parliament Questions and Assurances. • Processing of RTI applications and appeals. • Compilation and preparation of Annual Report of Directorate for submission to the Ministry of Finance. • Assigning Action Plan Targets at the beginning of financial year. • Organizing Quarterly Conference of Zonal Officers (QCZO) and other Review Meetings. • Issuance of Technical Circulars/Guidelines. 135Annual Report 2024-2025 Sr. No. Section Work Assigned 05. Intelligence • Processing of all the intelligence inputs received or gathered from Section various organizations such as FIU, CBI, RAW, DRI, IB, CEIB, CVC, NTRO, MAC, etc. as well as from informal sources such as complaints from private individuals, open sources etc. • Processing of all complaints received from various LEAs and private persons related to PMLA/FEMA etc. and dealing with COFEPOSA matters, • Dealing with FIU; Processing of the STRs via FINEX 2.0 portal and collecting intelligence through ESW (EGMONT Secure Web) and disseminate it to the concerned jurisdictions (Regions/Zones) and obtaining feedback on the same. • Processing of EGMONT requests and PAN based enquiries received from field formations and forwarding it to the FIU-IND. • Obtaining Customer Application Form (CAF) and Call Data Record (CDR), Legal Interception as per MHA guidelines. • Maintaining database and follow up on action taken by the field formations in all ICIJ leaks cases- Panama, Paradise, Pandora, Mauritius, HSBC, etc. along with cases of GDR, ECB, Terror Funding, LWE and other such issues; NATGRID. 06. Investigation • Deals with matters relating to ongoing investigations under the Section provisions of PMLA, 2002 and FEMA, 1999. • Investigation Section calls for Action Taken Report (ATR), Status Report and Action Plan for examination and analysis. • Ensuring compliance of Technical Circular No. 07/2024 dated 19.12.2024 which requires the field formations to submit time bound reports at various stages of investigations. • Receipt and compilation of Monthly and Quarterly Search and Arrest reports. • Exchange of information with various LEAs such as Income Tax Department, CBI, SFIO etc. • Attending to the work related to SIT on Black Money. 07. Adjudication • This Section monitors the pendency of adjudication under FEMA, Section 1999 at the level of various Adjudicating Authorities. • This section also monitors the recovery of penalty imposed under FERA and FEMA. 08. Legal Section • The Legal Section, HQ handles all the legal work related to the Directorate. • Review of judgments/orders of Hon’ble Supreme Court, High Courts and Subordinate Courts/Tribunal. • Special Leave Petition / Appeal /Writ Petition matters of Supreme Court; filing of appeals before Appellate Tribunal for Foreign Exchange (ATFE). • Nomination of Counsel before Adjudicating Authority (PMLA), ATFE and AT(PMLA). • Legal opinion in certain cases including vetting of PAOs, PCs, affidavits, appeals, LRs, extradition requests etc. • Dealing with references from Ministries on legal issues/proposed Law relating to or having impact on FEMA, PMLA and FEOA. • Tracking of work of Prosecutors/Advocates in Courts, empanelment of Advocates, appearance before the Adjudicating Authority, Appellate Tribunal and Courts on behalf of the Directorate. • Monitoring of Court cases and legal issues at all India level etc. 136Department of Revenue III Sr. Section Work Assigned No. 09 Overseas • OIU’s work profile also includes handling all forms of International Investigation meetings/trainings/workshops and submission of comments in the Unit (OIU) Section matters related to G20-ACWG, UNODC, ARIN-AP, World Bank, StAR Initiative, FATF, Asset Recovery etc. • Drafting of Technical Circulars on issues like PMLA/FEMA LR and MLA Request, LoC etc. • Drafting of MoU with foreign agencies for informal cooperation. • Providing statistics / comments for FATF and other International Organizations related to money laundering and drug trafficking. • Attending meetings organized by MEA on important cases involving foreign disputes / Arbitration like Devas Multimedia and sharing necessary inputs to other agencies like DEA, MEA, DOS, CBDT, CBIC, DOT, etc. 10. Systems and • The System Section, HQ handles all matters relating to Training information technology, electronics, internet/ intranet, Section coordination with NIC, installation and management of IT related software/ hardware, running and managing Cyber Lab, computerization/ digitization project for the Directorate, etc. • The Training Section, HQ conducts trainings of officers of the Directorate at various levels. • Nomination of the officers of the Directorate for training in India. 11. Rajbhasha • Coordinates with all field formations for the quarterly progress (Hindi) Section report of Rajbhasha and compile the same for onward submission to MHA. • Monitors and sensitizes the field formations to comply with the existing instructions on all the parameters to promote use of Rajbhasha in official work. • Carrying out inspection of field formations on annual basis. • Organizes regular training for improving the skills of officers. • Organizes competition at various levels for rewarding and encouraging the staff of ED to work in Rajbhasha. 12. Headquarters • The HIUs were created at Headquarters of the Directorate in the Investigation year 2012 for investigating sensitive and important cases. There Units (HIU) are 03 Functional units in each HIU. 13. Special Task • The Special Task Force (STF) was constituted in March, 2019 at HQ Force (STF) specifically to carry out investigation in cases related to Drug Trafficking, Terrorist Financing and the Unlawful Activities (Prevention) Act (UAPA), 1967. There are 3 Functional units in STF. 137Annual Report 2024-2025 4.2.3.3 Organizational Structure at Regional, Zonal and Sub-zonal Offices: The present organizational structure of all the Regional, Zonal and sub-zonal offices of the Directorate is depicted hereunder: To meet the organization’s administrative needs and Special Task Force (STF) can investigate any cases for collecting information and investigating money- assigned to them by the Director, Directorate of laundering offences and offences related to the provisions Enforcement. The offices functioning under the 05 of FEMA, five Regional offices have been setup. However, Regional Offices are given as below: it’s important to note that ED officers have jurisdiction across the entire country for gathering information and Western Region: The Region is having its office conducting investigations related to offence of ML/FEMA. at Mumbai. The Region comprises of 06 Zones, namely, Additionally, the Headquarters Investigation Units (HIUs) Mumbai-I, Mumbai-II, Ahmedabad, Bhopal, Panaji (Goa) 138Department of Revenue III & Raipur and 03 Sub-Zones, namely, Nagpur under Assistant Enforcement Officers and 2 sepoys. The Mumbai-II, Surat under Ahmedabad and Indore under constitution of functional unit is represented as under: Bhopal. Northern Region: The Region is having its office situated at Chandigarh. The Region comprises of 06 Zones, namely Chandigarh-I, Chandigarh-II, Gurgaon (Gurugram), Jalandhar, Jaipur and Srinagar and 03 Sub- Zones, namely, Shimla under Chandigarh-I, Dehradun under Chandigarh-II and Jammu under Srinagar. Southern Region: The Region is having its office at Chennai. It comprises of 05 Zones, namely Chennai-I, Chennai-II, Bengaluru, Kochi and Hyderabad and 04 Sub- Zones, namely, Madurai under Chennai Zone-II, 4.2.3.6 The offices of the Directorate of Enforcement Mangalore under Bengaluru, Kozhikode under Kochi and located all over India ensures that the money-laundering Vishakhapatnam under Hyderabad. offences are investigated in an effective manner and it also acts as deterrence for the potential offenders. Central Region: The office of the Central Region 4.2.3.7 Considering the strategic importance of North- is located at Delhi. It comprises of 05 Zones namely Delhi- East Region, Directorate of Enforcement has I, Delhi-II, Lucknow, Patna and Ranchi and 01 Sub-Zone strengthened its presence and intensified anti money- viz. Allahabad (Prayagraj) Sub-Zone falling under laundering activities including cross border financial Lucknow Zone. crimes, international hawala, terror financing and drugs trafficking. The Directorate has set up offices in all the Eastern Region: The Region is having its Office seven sisters of North-East (07 states under North- at Kolkata. It comprises of 05 Zones, namely, Kolkata-I, Eastern Region). Kolkata-II, Bhubaneshwar, Guwahati-I & Guwahati-II and 4.2.4 Offence of Money Laundering 07 Sub Zones namely Gangtok under Kolkata-II and other 4.2.4.1 Section 3 of the PMLA criminalizes the offence six sub-zones i.e. Agartala, Aizawl, Imphal, Itanagar, of money-laundering related to a wide range of criminal Dimapur and Shillong, all under Guwahati-II. offences listed in the schedule to the PMLA. These offences include participation in an organized criminal 4.2.3.4 The Regional Special Directors are assigned with group and racketeering, terrorism and terrorist financing, the role of supervising and monitoring the overall working illicit trafficking in narcotics drugs and psychotropic and functioning of the Zonal offices of the Directorate substances, illegal human trafficking, illicit arms located at various cities within the Region and other trafficking, illicit trafficking in stolen goods, corruption and bribery, fraud, counterfeiting and piracy of products, administrative/vigilance matters. Similarly, the Zonal environmental crimes, kidnapping, robbery, smuggling, Additional/Joint Directors are responsible for the overall extortion, forgery, piracy and insider trading and market supervision and functioning of the FUs under their manipulation. These offences listed in the schedule are jurisdiction including the Sub-zones. The Sub-zonal called “predicate offences” and section 3 of the PMLA offices are headed by Deputy Directors and they report states that whoever is directly or indirectly involved or associated with any process or activity connected with to the Zonal Additional/Joint Directors. “proceeds of crime” related to these criminal activity will be guilty of the offence of money-laundering and is liable 4.2.3.5 In 2021, the concept of functional unit was for punishment with rigorous imprisonment of three to introduced to ensure rational distribution of work. Each ten years under section 4 of the PMLA. such unit is self-contained unit headed by an officer of 4.2.4.2 It is not necessary that for committing an offence the rank of Deputy Director with clearly demarcated of money-laundering, the person concerned should resources and responsibilities including investigation, project or claim the proceeds of crime as untainted administration, intelligence etc. The functional units are property, it is enough if he is directly or indirectly involved headed by a Deputy Director assisted on an average by in any process of activity connected with the proceeds of 02 Assistant Directors, 02 Enforcement officers, 03 crime including its concealment, possession, acquisition 139Annual Report 2024-2025 or use. Thus, the definition of the offence of money- Adjudicating Authority, a quasi-judicial body, it is provided laundering is in full compliance with Article 3(1)(b) and in section 8(4) of the PMLA that the officers of the 3(1)(c) of the Vienna Convention and Article 6(1) of the Directorate of Enforcement will take possession of the Palermo Convention. property attached and thus it is ensured that the offenders do not enjoy the “proceeds of crime”. Thus, after 4.2.5 Attachment and Confiscation confirmation of attachment/freezing by the Adjudicating 4.2.5.1 Section 5 of the PMLA provides that where the Authority, it no longer remains only a “provisional Director, Directorate of Enforcement, or any other officer measure” as the property is not available to the criminals. not below the rank of Deputy Director authorized by him, 4.2.5.5 Any person aggrieved with the order of has reason to believe (the reason for such belief to be Adjudicating Authority, including the officers of the recorded in writing), on the basis of material in his Directorate of Enforcement, can file an appeal within 45 possession, that (a) any person is in possession of any days before the Appellate Tribunal, another quasi-judicial proceeds of crime and (b) such proceeds of crime are authority under section 26 of the PMLA and the Appellate likely to be concealed, transferred or dealt with in any Tribunal after giving the parties to the appeal an manner which may result in frustrating any proceedings opportunity of being heard may pass such orders thereon relating to confiscation of such proceeds of crime, he as it thinks fit, confirming, modifying or setting aside the may, by order in writing, provisionally attach such property order appealed against. Any person aggrieved with the for a period not exceeding 180 days from the date of the order of Appellate Tribunal may file an appeal to the High order. Court within 60 days on any question of law or fact arising 4.2.5.2 Section 17 of the PMLA gives power to Director, out of such order. Directorate of Enforcement, or any other officer authorized 4.2.6 Investigation, Prosecution and Conviction by him not below the rank of Deputy Director, to carry out search and seizure operation and seize any record or 4.2.6.1 Under the PMLA, the officers of the Directorate property found during the search. If it is not practicable of Enforcement have wide range of powers to investigate to seize such record or property, the officer concerned the offence of money-laundering and for attachment/ may make an order to freeze the property prohibiting its freezing and confiscating the proceeds of crime. These transfer. Section 18 of the PMLA gives powers to the include powers of summons, survey, search and seizure, officers of Directorate of Enforcement to search a person search of persons, arrest etc. The officers of various other and seize any property. In the case of seizure/freezing departments such as officers of CBIC, CBDT, police, RBI, under sections 17 and 18 of the PMLA, the authorities SEBI, IRDAI etc. are empowered and required to assist concerned are required to make an application to the the officers of the Directorate of Enforcement in the Adjudicating Authority for retention of such record or enforcement of PMLA. property or for continuing the order of freezing. 4.2.6.2 After registering the complaint, at the first 4.2.5.3 The Adjudicating Authority is a quasi-judicial body instance, the officers of Directorate of Enforcement comprising of a Chairperson and two other members. identify, quantify and trace the “proceeds of crime”. They On receipt of a complaint under sections 5 or 17 or 18 of also collect the evidence relating to the commencement the PMLA, the Adjudicating Authority decides after hearing of the offence, which may comprise of information all parties that the property is involved in money- received from predicate agency on parallel financial laundering or not. The attachment/freezing order continue investigation, examination of accused, other persons during the investigation for a period not exceeding 365 associated with the offence and third parties, reduction days or during the pendency of the proceeding related to of their statement in writing, carrying out survey and any offence under the PMLA before a Court, including search etc. They provisionally attach the properties foreign Courts, when confirmed by the Adjudicating identified as “proceeds of crime” and file a complaint Authority. Thus, after the order of the adjudicating before the Adjudicating Authority. In appropriate cases, authority, the attachment/freezing continues during the joint investigation in collaboration with the predicate investigation and will also continue after filing of a agency is also conducted. prosecution complaint till the matter is finally decided by 4.2.6.3 After carrying out the necessary investigation, the the Court. Directorate of Enforcement also file a Prosecution 4.2.5.4 The order of confiscation is passed by the Special Complaint before the Special Courts constituted under Court under section 8(5) of the PMLA after conclusion of section 43 of the PMLA, who takes cognizance of the the trial for the offence of money-laundering and all rights offence of money-laundering committed under section 3 and title in the property vest absolutely in the Central of the PMLA. After trial in the Special Court, the accused Government free from all encumbrances. However, after is convicted and is punished in accordance with section the confirmation of the attachment/freezing by the 4 of the PMLA. 140Department of Revenue III 4.2.7 International Cooperation 57 of the PMLA although under the MLAT or the multilateral treaties, the requests need not be routed 4.2.7.1 When proceeds of crime related to offence through the Courts. committed in India, is transferred in foreign jurisdictions, or when accused person(s) has escaped from India, after 4.2.7.3 If an order of attachment/freezing/confiscation committing the offence of money-laundering or part of it has been issued by the officers of the Directorate of or the offence itself has been committed outside the Enforcement and the said property is suspected to be in country or the witnesses and other material evidence are a foreign jurisdiction, the Special Court may issue a letter available in another country, it may be necessary to gather of request to a court or an authority in the foreign information or conduct formal investigation abroad. jurisdiction for execution of such order. 4.2.7.2 Generally, the basis for seeking Mutual Legal 4.2.7.4 The Directorate of Enforcement also provides Assistance from a Contracting State is the Mutual Legal assistance to foreign jurisdictions and investigates the Assistance Treaty in Criminal Matters (MLAT). As of now, offence of money-laundering by carrying out necessary India has signed MLAT with 45 countries. Mutual Legal inquiries if a request is received from a Court or authority Assistance can also be sought on the basis Multilateral in the said foreign jurisdiction. It may also attach, seize, Treaties, such as, United Nation Convention against freeze, or confiscate the property in India derived or Corruption (UNCAC) or United Nation Convention on obtained, directly or indirectly, by any person from the Transnational Organized Crime (UNCTOC). Where there commission of an offence under the corresponding law is no such treaty the request can be made on the basis committed in the foreign jurisdiction if a request is of mutual assurance of reciprocity. These requests are received from a Court or authority in the said foreign normally made through the Special Courts under section jurisdiction. Case study ED received a Letter of Request from US authorities, perusal of which revealed that an Indian national, Mr. A was operating a sophisticated drug trafficking operation via dark web marketplaces. The operation spanned from mid-2012 to July 2017. He created vendor marketing sites on dark web marketplaces, such as Silk Road, Alpha Bay, Hansa, and others, to sell controlled substances, including fentanyl, LSD, ecstasy, Xanax, Ketamine, and Tramadol. Customers ordered controlled substances from Mr. A using the vendor sites and payment was made in cryptocurrency. He then personally shipped or arranged the shipment of controlled substances from Europe to the United States through U.S. mail or other shipping services. Investigation by the Drug Enforcement Administration (DEA), IRS Criminal Investigation (IRS:CI), Homeland Security Investigations (HSI), and U.S. Postal Inspection Service (USPIS) revealed that Mr. A laundered around $150 millions of drug proceeds into cryptocurrency accounts. He was arrested in London in April 2019 and extradited to the U.S. in 2023. He pleaded guilty to conspiracy to distribute controlled substances and conspiracy to commit money laundering. He faced an agreed-upon sentence of eight years in prison, pending a sentencing date. Investigation further revealed brother of Mr. A, Mr. B was also involved in the operation of the International Drug Trafficking group and he has received laundered drug trafficking proceeds in form of crypto currency. US authorities also believed that digital evidence of the crime, along with devices and/ or passwords that control access to drug trafficking proceeds in the form of crypto currency, are present at the residence of Mr. B in India. Therefore, US authorities requested for search and seizure operations to be conducted at the address of Mr. B as well as to conduct interview of Mr. B. They also requested if investigating officers from USA could be part of the same. To this investigation under provisions of PMLA has been initiated by ED. Investigations revealed that Mr. A, Mr. B and their father Mr. C have received total foreign inward remittance of Rs. 5,54,41,420/- through PayPal. During investigation by ED, search was conducted at the residence of Mr. B wherein 268.22 Bitcoins were seized and taken into possession. Mr. B was arrested by ED for committing the offence of money-laundering. Investigation to trace further proceeds of crime is under progress. 141Annual Report 2024-2025 4.2.8 Performance of Directorate of Enforcement Year No. of ECIRs recorded in the area of PMLA 2016-17 187 4.2.8.1 During the period from 01.04.2024 to 31.12.2024, 2017-18 163 the Directorate has taken up investigation under the provisions of PMLA in 406 cases. As on 31.12.2024, 7402 2018-19 152 total number of ECIR has been recorded. The Year-wise 2019-20 557 break-up of the same is as under: 2020-21 996 Year No. of ECIRs recorded 2021-22 1116 01.07.2005 to 1883 (209 avg. per year) 2022-23 953 31.03.2014 2023-24 698 2014-15 181 2024-25 (Up to 31.12.2024) 407 2015-16 110 Total 7403 4.2.8.2 During the period from 01.04.2024 to 31.12.2024, Year No. of PCs filed the Directorate has attached proceeds of crime with the 01.07.2005 to 31.03.2014 84 (09 avg. per aggregate value of Rs. 21370.02 crore (approx.) by issuance of 227 Provisional Attachment Orders taking year) total attachment of the Proceeds of Crime to Rs. 2014-15 64 1,45,927.59 crore by issuance of 2555 Provisional 2015-16 57 Attachment Orders as on 31.12.2024. The Adjudicating 2016-17 99 Authority has confirmed attachment of properties worth 2017-18 92 Rs. 9483.86 crore during the period from 01.04.2024 to 31.12.2024. Thus, total amount of confirmed attached 2018-19 234 properties is Rs. 96024.39 crore as on 31.12.2024. 2019-20 55 2020-21 140 4.2.8.3 During the period from 01.04.2024 to 31.12.2024, 158 Prosecution Complaints have been filed under the 2021-22 128 provisions of the PMLA. Total numbers of Prosecution 2022-23 172 Complaints filed under PMLA is 1564 as on 31.12.2024. 2023-24 281 The Year-wise break-up of the same is as under: 2024-25 (Up to 31.12.2024) 181 Total 1587 142Department of Revenue III 4.2.8.4 During the period from 01.04.2024 to 31.12.2024, financial investigation, including from where the funds the Special Court, PMLA has ordered for confiscation of have been received, how the funds were layered into the properties amounting to Rs. 18.286 crore (approx.) and banking channels, and if not through banking channels, imposed a cumulative fine of Rs. 63.15 lakh (approx.) on whether it was from Hawala or Barter Trade or Trade the accused. Further, properties amounting to Rs. 11.6 Based Money Laundering. It also investigates, how and lakhs have been confiscated under Section 8(7) of PMLA. to whom the funds were distributed and if the funds have As on date, the total confiscation amount under PMLA is been invested in some property, whether the property still Rs. 15,729.45 crore (approx.). exist or is liquidated. Once the property is identified, the Directorate of Enforcement provisionally attaches the 4.2.8.5 During the period from 01.04.2024 to 31.12.2024, property and then takes possession after confirmation the Directorate has secured 07 conviction orders in which by the Adjudicating Authority. If the property is liquidated, 34 accused have been convicted by the Special Court equivalent amount of property, whether in India or abroad, PMLA. Further, it is informed that till 31.12.2024 the is attached. Directorate has secured 44 conviction orders wherein 100 accused have been convicted. 4.2.9.4 During investigation of cases related to terror financing by ED, it has been found that the terrorists use 4.2.9 Special Focus on Terror Financing a number of methods for funding including the following: 4.2.9.1 The Directorate of Enforcement gives special Banking channels by receipt of foreign  focus on investigation of terror financing cases. The remittances terrorism cases under UAPA are investigated and prosecuted by the National Investigation Agency (NIA)  Authorized money transfer services such as under the NIA Act, 2008. However, the State Police Western Union Authorities also investigate the terrorism cases under Hawala Payments UAPA and also under various provisions of the IPC.  Donations to NPOs/Social Welfare Organizations 4.2.9.2 The focus of investigation by the Police  Authorities are normally on criminal investigation such Barter Trade  as from where the arms have been received, how the conspiracy has been hatched, who was the mastermind,  Fake Indian Currency Notes what was the plot, what was the motive, who were 4.2.9.5 It may be noted that Barter Trade was allowed involved etc. between India and Pak Occupied Kashmir, across the 4.2.9.3 The Directorate of Enforcement, after a reference Line of Control. This mode of trade was being misused is made to it by the police authorities, carries out the by the Pakistan based elements for illegal inflow of 143Annual Report 2024-2025 narcotics, weapons and Fake Indian Currency Notes. deter the terror funding leading to unearthing of Proceeds Huge seizures of narcotics have been affected from of Crime (PoC) to the tune of more than Rs. 1274.89 concealments in the trucks being used in the name of Crore (approx.). Out of the identified PoC, assets trade across LOC. Besides, invoice manipulation was amounting to Rs. 1115.22 crore (approx.) have been being used for generating cash for terror funding. attached by this Directorate. The attached properties Therefore, the Barter Trade has been suspended by the include both movable and immovable properties of Rs. 912.22 crore (approx.) in India and Rs. 203 crore (approx.) Government of India, pending strict regulatory mechanism in abroad. In one of the case, the accused has been in April, 2019. declared as Fugitive Economic Offender and the 4.2.9.6 In terror financing cases, ED has a very important properties worth Rs. 97.99 Crore have been confiscated role both in tracing the proceeds of crime and its under the provisions of Fugitive Economic Offenders Act, laundering by the terrorists. ED not only attaches the 2018 (FEOA). A total of 53 prosecution complaints Proceeds of Crime and takes possession of the same (Charge-sheets) including 17 Supplementary PCs have but also files Prosecution Complaints against the terror been filed under the Prevention of Money Laundering Act, 2002 and 09 accused have been convicted in 04 cases accused under the PMLA. by PMLA Special Court. Further, 13 accused have been 4.2.9.7 ED has taken strict action against terrorist declared Proclaimed Offender and 03 accused have been activities by way of registering several cases related to declared Fugitive Economic Offender by the Special terror funding against anti-national elements and Courts. Case study on one such important case taken intensified money laundering investigation to trace and for investigation by the ED is provided in the box below. Case Study A case relating to narco-terrorism module of banned terrorist outfit, Hijbul Mujahideen (HM), has been recorded for investigation under the provisions of the Prevention of Money-Laundering Act, 2002 on the basis of FIR registered Jammu and Kashmir Police that a network of Narco- Terror financing comprising other accused persons, was involved in cross border drugs smuggling and terror funding out of the money generated from the sale of the drugs. Investigation under the PMLA has revealed a network of collusion of drug smuggling and terrorism. The funds, derived out of cross border drug smuggling and selling, in the form of Proceeds of Crime, were laundered via camouflaging the same under the business of sale purchase of second-hand cars. In the next stage, the same were routed into the hands of active terrorists for the sole purpose of subversive activities. The involvements of various entities and persons, like Punjab based drug peddlers, Kashmir based religious teachers, and businessmen, were found in the logistical chain to transport and selling the cross border smuggled drugs to areas around Jammu and Kashmir, like Punjab etc. under the guise of apple trade. The sale proceeds of the drugs were brought back and channelized into bank accounts as projected proceeds of business sale -purchase of second-hand cars, while also providing money for funding the subversive activities of HM The investigation had also unearthed the role of erstwhile active terrorists, now leading civil life, into facilitating movement of cash into the hands of active terrorists. The transaction profiling of the bank accounts spread across various banks in the case revealed huge cash deposits obtained via drugs sales, routed through multiple suspected interconnected transactions, disguising the actual source and nature of funds, into the hands of the active terrorists. Unlike traditional methods, this network employed a novel approach to laundering drug proceeds. Instead of relying on traditional hawala channels or cross border trade, the accused utilized a seemingly legitimate business – the sale and purchase of second-hand cars – to disguise the illicit origin of the funds. The accused masterfully exploited a legitimate business – the car trade – to launder drug proceeds having less reporting to escape the eyes of the law enforcement agencies In this case, about Rs. 1.57 crore lying in bank account of accused persons, and about Rs. 94 lakhs, infused into terrorist activities were identified as Proceeds of Crime. Further, 03 persons have been arrested in this case and prosecution complaint has been filed on 14.09.2024 wherein the court took cognizance of the offence of money laundering on 14.09.2024 and proceeded against accused persons. 144Department of Revenue III 4.2.9.8 Action against insurgent groups in the North-East 4.2.10 Proactive Steps taken by ED in other key areas Region: In order to put a curb on the funding of insurgency of money laundering are as follows: activities in the North-East Region, the Directorate has (i) Cyber Fraud: The advent of technology and taken up several investigations under the provisions of growing access of internet has led to innovations and PMLA against some of the prominent extremist groups economic growth but at the same time its vulnerability such as NSCN (IM), NSCN (K), Dima Halam Daogah has also been explored by criminals to perpetrate crime. (Jewel Garolsa Faction). Thus, in whole world including India there has been sharp increase in cyber frauds. The virtual currency has been 4.2.9.9 Action against Naxal funding in Bihar, Jharkhand widely used by criminals to transfer proceeds of crime to and Chhattisgarh: Strict actions under PMLA have been foreign jurisdictions without coming under the radar of taken against LWEs active in Bihar, Jharkhand & government agencies. The cyber fraudsters have not only Chhattisgarh leading to attachment of properties and filing targeted the resourceful people but also the common and of Prosecution Complaints in several cases. As on poor people. The Directorate has taken vigilant steps in 31.12.2024, PoC amounting to Rs. 18 crore (approx.) tackling the threat of money-laundering through Cyber has been identified in Naxal/LWE related cases out of Crime and Crypto assets related cases by tracing and which, PoC amounting to Rs. 10.67 crore stands attached attaching/seizing/freezing proceeds of crime. Case study in 16 different PAOs. Further, 13 Prosecution Complaints on one such important case taken for investigation by have been filed in Naxal/LWE related cases. the ED is provided in the box below. Case Study A cyber investment scam cum digital arrest scam case has been recorded for investigation under the provisions of the Prevention of Money-Laundering Act, 2002 on the basis of various FIRs registered by multiple Law Enforcement Agencies across India alleging that some unknown cyber fraudsters enticed innocent individuals into their trap by luring them with schemes involving fake IPO allotments and stock market investments through fraudulent apps, promising high returns. Further, some victims were manipulated under the guise of a fake arrest by Customs and the CBI, ultimately making them transfer huge funds to various shell companies under fake “fund regularization process”. Investigation under the PMLA has revealed huge network of cyber scams in India, involving fake stock market investments and digital arrest schemes executed primarily through social media platforms like Facebook, Instagram, WhatsApp, and Telegram. Known as "pig-butchering" scams, stock market investment scams entice victims with promises of high returns, using fake websites and misleading WhatsApp groups that appear connected to reputable financial firms. Scammers establish credibility through fake ads and fabricated success stories, ultimately leading victims to invest significant amounts. The digital arrest scams involve fraudsters posing as law enforcement officials, intimidating victims into transferring their savings by fabricating scenarios that suggest illegal involvement of the victim. In the instant case, to facilitate the acquisition and laundering of proceeds from cybercrimes, the scammers have created 24 shell companies in states such as Tamil Nadu, Karnataka, etc. These shell companies, registered mainly at the addresses of coworking spaces (where no actual business presence exists), have used fake bank statements in filings before Registrar of Companies as proof of commencement of business of these companies. In addition to these shell companies, scammers have operated through mule accounts to transfer and conceal Proceeds of Crime (PoC) generated from Cybercrimes. The proceeds are ultimately converted into cryptocurrency and transferred abroad. Investigation have revealed that certain individuals residing outside India (mainly in Laos, Hong Kong and Thailand) orchestrated a sophisticated cyber fraud and money laundering operation, with the active assistance of their associates located in India to target numerous victims. These overseas scammers have coordinated with individuals in India to create digital signatures, establish shell companies, and serve as dummy Directors to open bank accounts, using fake documents sent via WhatsApp. In this case, searches have been conducted on 19 premises which led to seizure of various incriminating documents, electronic devices and freezing of Rs. 2.81 crore lying in bank account. Further, 08 persons have been arrested in this case and prosecution complaints have been filed on 10.10.2024. 145Annual Report 2024-2025 (ii) Human Trafficking: Human trafficking is one of factories or girls put in forced sex rackets or humans the most significant human right issue in India. Human trafficked to foreign countries in lure of greener pastures. trafficking victims are mostly bonded labours working Case study on two such important cases taken for more than 12 hours a day in brick kilns, stone quarries, investigation by the ED is provided in the box below. Case Study 1 A case of human trafficking was initiated on the basis of FIR dated June 4, 2024, registered by Ranchi Police under Sections 420, 467, 468, 471, and 34 of the IPC, Section 12 of the Passports Act, and Section 14-A of the Foreigners Act. As per the FIR, a 21-year-old Bangladeshi national was illegally brought to Kolkata on May 31, 2024, by one Ms. X and one Ms. Y under the guise of providing work. She was later taken to Ranchi, housed at Bali Resort, and subsequently moved to an apartment with other Bangladeshi girls, reportedly for prostitution. On June 3, 2024, the complainant managed to escape and reported the matter to the police. On June 4, 2024, at 3:30 PM, police raided Bali Resort and found three girls, out of which, two girls were Bangladeshi nationals. The rooms were booked by Ms. X, and searches unearthed use of fake Aadhaar cards by them. During course of investigation under PMLA, 2002, searches have been conducted at 17 premises in West Bengal, Jharkhand and Bihar on 12.11.2024. The searches led to the recovery and seizure of several fake Aadhaar cards, arms, jewelry, fake passport and other incriminating items. Moreover, four persons have been arrested so far. Further investigation is under progress. Case Study 2 In another case of human trafficking, investigation under PMLA have been initiated on the basis of FIR dated 14.01.2023 registered by Ahmedabad Police after a family of 04 persons was found dead on the Canada-US border on 19.01.2022. Investigations under PMLA revealed that the individuals desirous of immigrating to USA are approached by agents, who arranged admission of such individuals in the Canadian Colleges. On the basis of such admissions, Student Visa and other documents were issued and the individuals travel to Canada in the guise of students. However, upon reaching Canada the individuals instead of joining the Canadian Colleges, illegally crossed the US-Canada Border and reach USA. The accused were charging huge amount of Rs. 55 to 60 Lakh per person for the same. Investigation, so far, has revealed that the arrangements for 11 Indian National to immigrate into USA illegally in the instant case were done by Fenil Patel in Canada. To gather evidences, so far searches have conducted at 35 premises which led to seizure of cash amounting to Rs 92 lakhs, 04 luxury vehicles and various other incriminating documents. Further investigation is under progress. (iii) Corruption: Corruption is one of the most chronic the same with effective money-laundering investigation problems faced by India which endangers India's socio- by preventing the money-launderers from enjoying economic, political and development aspirations. ED has proceeds of crime. Case study on one such important been taking several money-laundering cases with case taken for investigation by the ED is provided in the predicate offences of corruption and intends to mitigate box below. Case Study In a case of corruption by a senior Government officer, investigation by the Directorate of Enforcement (ED) revealed that the Government official while holding various prime postings in Bihar Govt. and during his Central Deputation during the period from year 2018 -2023 got indulged in corrupt practices like receiving kickbacks from contractors etc. and acquired proceeds of crime (PoC) to the tune of Rs. 90 Cr approx. The PoC so generated have been utilized in investing the same in share market, acquiring immovable & movable properties and meeting various expenses in cash. As on date, searches have been carried out at 70 premises in different cities viz. Delhi, Punjab, West Bengal, Maharashtra, Rajasthan, Bihar among others. Total 11 persons have been arrested in this case so far. Further, movable assets being shares and bank balances worth Rs. 66 Cr (approx.) have been frozen and assets being luxury watches worth Rs. 65 lakhs (approx.) bullion & jewellery worth Rs. 2 Cr and cash of Rs. 1.3 Cr (both Indian Currency and Foreign Currency) have been seized. Also, 07 immovable properties in form of plot and flats in Nagpur, Delhi and Jaipur worth Rs. 24 Cr (approx.) have been attached by issuance of a provisional attachment order. Prosecution Complaint (PC) has been filed on 16.12.2024 before the Hon'ble Spl. PMLA Court, Patna under the provisions of Prevention of Money Laundering Act, 2002 (PMLA). 146Department of Revenue III 4.2.11 Performance of Directorate of Enforcement Year No. of FEMA Case in the area of FEMA 2014-15 915 During the period from 01.04.2024 to 31.12.2024, 2015-16 1516 the Directorate has initiated investigation in total number 2016-17 1993 of 1945 cases under the provisions of Foreign Exchange Management Act, 1999. A total number of 165 Show Cause 2017-18 3627 Notice have been issued and 116 cases have been 2018-19 2659 adjudicated during the period. Further, penalty of Rs. 2019-20 3360 4197.67 crore (approx.) has also been imposed and 2020-21 2747 penalty amounting to Rs. 66.60 crore (approx.) has been realized during the period. The Year-wise break-up of the 2021-22 5313 FEMA investigation initiated are as under: 2022-23 4173 Year No. of FEMA Case 2023-24 2541 01.04.2000 to 8586 2024-25 (Up to 31.12.2024) 1945 31.03.2014 (613 avg. per year) Total 39375 4.2.12 Performance of Directorate of Enforcement Moreover, extradition proceedings in case of high in the area of FEOA profile fugitive economic offenders are also being followed by the Directorate regularly. During the period from 01.04.2024 to 31.12.2024, this Directorate has filed applications under FEOA against 4.2.13 Performance of Directorate of Enforcement 03 persons in the Competent Court. Also, one person in the area of Extradition and Red Notice namely Mr. Pushpesh Baid has been declared as FEO During the period from 01.04.2024 to 31.12.2024, the by the Competent Court during the said period. As on Directorate of Enforcement has made requests for 30.11.2024, ED has filed applications under FEOA against publishing of Red Notice in respect of 03 persons. Also, 23 persons, out of which 13 persons have been declared 02 Red Notice has been published during this period. Till as Fugitive Economic Offenders by the Competent date, the Directorate of Enforcement has made requests Courts. Hon'ble Special Court has ordered for confiscation for publishing of Red Notice in respect of 49 persons, out of properties to the tune of Rs. 930.79 crore belonging to of which Red Notice has been published in respect of 27 FEOs. Hearing for confiscation of properties in respect of other declared FEOs is underway in the Competent persons. Further, a total of 03 Extradition requests have Courts. been sent to various countries during this period. A total 147Annual Report 2024-2025 of 44 Extradition requests have been sent to various following effective representation of the Directorate in countries in respect of 36 individuals. coordination with other LEAs and Indian mission abroad. 4.2.14. Restitution of properties to Victims of Money- ED is working tirelessly to extradite the fugitive laundering/Legitimate Claimants economic offenders and other accused who have evaded the process of law in India by staying outside the ED is not only actively pursuing the economic jurisdiction of Indian Courts. The efforts of the Directorate offenders to unravel the money laundering but at the same time is also making efforts for the restitution of assets to have resulted in successful representation before the banks and others who have been defrauded by the Competent Court abroad in extradition of various fugitive offenders. The ED has successfully restored properties economic offenders and other accused. In this regard, it valued at approximately Rs. 22,280 Crore to victims or is pertinent to mention that UK Court has approved legitimate claimants. The details of restitution/restoration extradition of few high profile accused persons to India done by ED are given as below: Quantum of Sr. Properties Case Details Details of Restoration done by ED No. Restored (Rs. Crore) Vijay Mallaya Complete amount of attached properties have been 1 14131.6 Case successfully restored to the Public Sector Banks. Nirav Modi Properties to the tune of Rs. 1052.58 Crore have been restored 2 1052.58 Case to the Public and Private Banks National Spot Property to the tune of Rs. 17.47 Crore has been restituted by 3 Exchange 17.47 ED through MPID to the genuine investors defrauded. Limited (NSEL) On 14.08.2024, the Appellate Tribunal (PMLA) granted permission for restituting 78 flats worth more than Rs. 20 crore 4 SRS Group 20.15 to the homebuyers of SRS group’s Pearl City and Prime projects in Gurugram Rose Valley Properties of Rs. 19.40 Crore have been restituted to the 5 19.40 Group defrauded investors through Assets Disposal Committee (ADC). M/s. Surya Properties amounting to Rs. 185.13 Crore have been restored 6 Pharmaceutical 185.13 to the consortium of lending banks through the Official Ltd. Liquidator under Section 8(7) of the PMLA The Hon’ble Supreme Court vide order dated 11.11.2024 has Mrs. Nowhera directed ED to auction two Shaik and properties valued at Rs. 201 Crore to settle investors’ claims. 7 226 Others (M/s. Additionally, the Hon'ble Court has also directed the main Heera Group) accused person to deposit Rs. 25 Crore to the account of ED to restitute the amount to genuine defrauded investors. Naidu Amrutesh Hon’ble Special Court has allowed for the release of attached 8 Reddy and 12.73 property in the case presently valued at Rs. 12.73 Crore Others To expedite the process of restitution of properties to the victim Banks, ED along with the Banks took proactive steps towards monetization of assets. The ED and Banks agreed to take a common stand and moved the Hon’ble Special PMLA Court, Mumbai for filing a Joint Application (consent application). The Mehul Choksi Hon’ble Court passed the order dated 10.09.2024 on the Joint 9 2565.90 and Others Application wherein it was ordered that ED would facilitate the Banks, Liquidators in different Gitanjali Group of Companies to carry out valuation and auction of the attached or seized properties worth Rs. 2565 Crore and after auction of the said properties, the sale proceed amounts would be deposited in the PNB/ICICI Bank as FDs. M/s. Nafisa Hon’ble Special Court has allowed for the restoration and 10 overseas and 25.38 release of attached properties in the case presently valued at Others Rs. 25.38 Crore The Hon’ble Supreme Court ordered restitution of assets worth Rs. 4025 Crore to JSW vide order dated 11.12.2024. It is a bank fraud case wherein the creditor banks had initiated CIRP under IBC and JSW was the successful Resolution Applicant. Bhushan Power ED filed an affidavit before the Hon’ble Supreme Court praying 11 and Steel Ltd. 4025 for the restitution of the attached properties worth Rs. 4025 (BPSL) Crore [covered under the CIRP] to JSW under second proviso to Section 8(8) of PMLA (restitution pending trial) read with Rule 3A of PMLA Restoration of Property Rules, which was approved by the Hon’ble Court. 148Department of Revenue III 4.2.15. Initiatives for E-Governance a centralised record of cases investigated/being investigated under provisions of the PMLA and FEMA. ED has made a number of efforts to digitize its EDOTS record/capture all FEMA/PMLA cases data right functions for ML risk profiling and streamlining the ML / from the inception of a case to filing prosecution complaint TF investigations with the use of AI, computerization, etc., up to the end of Court Trial under PMLA or issuance of the same are summarized as below: Show Cause Notice/passing of adjudication order up to (i) Implementation of e-Office in Directorate of realisation of penalty imposed under FEMA. Enforcement: (vi) Summons module: Directorate of Enforcement has successfully Summons Module is a sub-module in EDOTS implemented and effectively utilizing the e-Office software which has successfully digitized the process of issuance for administration work in all the offices of this Directorate and in all the sections at Hqrs. of this Directorate. This of summon(s) enabling summonses to verify the digital transition has not only eliminated the need for authenticity of summons by scanning QR Codes on the physical files, but also significantly enhanced document official website of ED for prevention of potential frauds accessibility along with streamlining workflows, reducing and misuse of Summons. response times and improving overall efficiency. (vii) Implementation of Swagatam Portal: (ii) Implementation of e-HRMS 2.0 in Directorate Swagatam portal is fully functional and used in of Enforcement: Headquarters office of this Directorate for all visitors. The Directorate of Enforcement has successfully All visitors to the HQRS office of this Directorate on-boarded all its present employees in the e-HRMS 2.0 are required to apply on this Portal with their Identity software making employee data available on the papers and only after approval of the designated officer, centralized platform of DoPT and it is fully functional for entry to the premises at Parvartan Bhawan is allowed. all future uses. The Swagatam Portal has proved to be highly beneficial (iii) Implementation of EDEMS in Directorate of for the security of the office premises and has proved to Enforcement be a deterrent for unwanted and frivolous visitors while also providing transparency to the process of meetings This Directorate has developed an in-house between officers and general public. application viz. the Directorate of Enforcement Employee Management System (EDEMS) to implement its Transfer (viii) Implementation of SPARROW in ED cadre: Policy. This App has created a digital database of employee profiles with their history of postings along with The SPARROW portal is fully functional in this details of charges held for both ED Cadre as well as Directorate for generating and processing APARs of all employees on deputation. officers/officials working in the Directorate. The said portal is successfully being used by ED Cadre employees This Application has proved to be highly beneficial across all designations. and fully successful in conducting Annual General Transfers and at present hosts data of 2062 employees (ix) Official Website of Directorate of for future use Enforcement: (iv) Implementation of IIMS (Intelligence The official website of ED i.e. https:// Information Management System): enforcementdirectorate.gov.in is regularly being updated with all relevant information including press releases, This Directorate is using a web-based application tenders, recruitment rules & vacancy circulars etc. namely IIMS (Intelligence Information Management System) to store, process and generate various reports (x) Memorandum of Understanding (MoU) with related to inputs/ information/complaints received from NIC: various sources. It acts as a database of all complaints received in the Headquarters office of this Directorate with ED is signatory to a MoU with National search options by names of offenders/agency/complainant Informatics Centre (NIC) in 2008 for development and names for easy access to specific inputs etc. implementation of Information Technology based Software Solutions for computerization, Database (v) Enforcement Directorate Offender Tracking Management, Website Development, Hosting and System (EDOTS): Management of ED Data. NIC has extended its support The Directorate of Enforcement has devised and during implementation of e-Office, SPARROW portal and implemented an intranet application namely Enforcement a number of in-house applications developed by this Directorate Offender Tracking System (EDOTS) to keep Directorate. 149Annual Report 2024-2025 In an effort to upgrade the e-Governance initiatives, this Meetings are regularly being conducted  Directorate has initiated the process of hiring 07 System virtually through NIC's video conferencing Analysts & 36 Scientific Technical Assistants on support. contractual basis for assistance in all types of networking & digital support in all the offices of this Directorate. A number of webinars and trainings conducted for ED officers are being hosted online. In 2024-25 more (xi) Launch of e-manual for handling & forensic than 300 man-hours of training have been conducted analysis of electronic record: virtually through NIC's video conferencing support. The Directorate of Enforcement has launched 4.3 Financial Intelligence Unit - India (FIU-IND) an e-manual for handling & forensic of electronic record on 19.12.2024 which is intended to be guiding tool for 4.3.1 Financial Intelligence Unit, India (FIU-IND) is the conducting forensics of electronic record and ensuring central, national agency responsible for receiving, thorough, professional, legally & technically sound processing, analysing and disseminating information investigations while preserving the integrity and relating to suspicious financial transactions to authenticity of digital evidence. The e-manual includes a enforcement agencies and foreign FIUs. FIU-IND is also chapter on cryptocurrency which provides comprehensive responsible for coordinating and strengthening efforts of overview of the various crypto currencies currently in national and international intelligence, investigation and circulation. It also discusses the hardware and software enforcement agencies in pursuing the global efforts paraphernalia of crypto currency, such as hot & cold against money laundering and financing of terrorism & wallets, seed phrase, tokens, etc., the legal aspects of proliferation. This year FIU-IND has expanded RE domain crypto currency and provides the SOP for the handling by including DNFPBs (Real estate, Gems & Jewellery, and seizure of Virtual Digital Assets (VDAs) VASPs and TCSPs). (xii) Guidelines for issuance of summons and FIU-IND plays a pivotal role in receiving and processing intelligence from various Reporting Entities recording of statement: i.e. the threshold-based reports and suspicious ED has recently issued a Technical Circular transaction reports. Beyond these sources, FIU-IND conveying guidelines for issuance of summons and proactively gathers intelligence related to predicate recording of statements of suspects involved in the offences and money laundering from open-source offence of money-laundering. On the directions of Hon'ble intelligence. This includes adverse media reports and High Court at Bombay, the relevant para of the circular social media platforms, which are often misused to target has also been uploaded on the official website of this vulnerable individuals, drawing them into cybercrime, drug Directorate under the Press Release Section on trafficking, human trafficking, and other illicit activities. 29.10.2024. The web link of the same is under:- App based ecosystem such as Youtube, Fake The web link for the said press release- crypto token apps, Registered/unregistered Cryptocurrency Exchanges, web based apps providing https://enforcementdirectorate.gov.in/sites/default/files/ Child Sexual Abuse Material/Adult Porn content, Online latestnews/ Payment Systems, Betting/Gambling Apps, Illegal Forex PRESS%20RELEASE%20dated%2028.10.2024.pdf apps etc. are being extensively mis-used both for laundering of proceeds of cyber-crime as well as for terror (xiii) Miscellaneous Digital Initiatives: financing, radicalization activities and other illicit activities.  A Memorandum of Agreement (MoA) was FIU India has developed an advanced tool that signed between ED and National Forensic automatically and regularly scans social media platforms Sciences University (NFSU) to augment the such as Telegram. Further, a supplementary tool called forensic capabilities of this Directorate and ImageX has also been introduced which is designed to incorporate the best practices followed in automatically read these screenshots, identify, and extract forensic world. NFSU has assisted ED in crucial bank transaction details such as bank account establishing state-of-art Cyber Lab at numbers, UPI IDs, bank names, and account holder Gandhinagar, NFSU Campus along with names. providing contractual manpower to manage 4.3.2 Compliance action by FIU India the existing 7 Cyber Labs. The said along with assisting ED officers during search During the current year, FIU-IND imposed operations and extraction of data of digital monetary penalties on several entities for non-compliance devices seized during operations. with their obligations as Reporting Entities. Notable Procurements of new and updated forensic penalties include Rs.18.82 crore on Binance Holdings tools for Cyber lab of this Directorate are Ltd. (Order No. 10/2024), Rs.1.66 crore on Axis Bank being done in consultation with NFSU. Ltd. (Order No. 09/2024), Rs.5.59 crore on Paytm 150Department of Revenue III Payments Bank Ltd. (Order No. 07/2024), Rs. 54 lakhs 4.3.5 FINNET 2.0 on Union Bank of India (Order No. 13/DIR/FIU-IND/2024) FINnet 2.0 has been successfully implemented and Rs.34.5 lakh on Pekken Global Ltd. (Order No. 08/ in FIU-IND. This is one of the pioneer IT systems of its 2024), resulting in a cumulative total of Rs.26.95 crore. kind that provides end-to-end solution to all the information technology needs of FIU-India, including 4.3.3 Memorandum of Understanding between FIU- receiving, analyzing and disseminating information, and IND & NABARD provides a two-way electronic communications system FIU-IND and NABARD signed a Memorandum between the FIU and the reporting entities (Fingate2.0) of Understanding (MoU) on 03 September 2024 at FIU- on the one hand, and the FIU and the enforcement IND Head Office, New Delhi, as part of continued agencies (FINnex2.0) on the other, through a secure coordinated efforts in effective implementation of network. requirements of the Prevention of Money Laundering Act 4.3.6 LEA's action on the basis of Intelligence and rules framed thereunder. The MoU was signed by shared by FIU Shri Vivek Aggarwal, Director, FIU-IND & Additional LEAs have booked several cases on the basis of Secretary, Department of Revenue, GoI and Shri Shaji K intelligence shared by FIU-IND in the form of Operational V, Chairman, NABARD. Analysis and STRs. DGGI Ludhiana booked a case During the FY 2024-25 FIU-IND conducted an wherein investigation resulted in identification of 27 bogus extensive and comprehensive Study & Research, which firms for issuing invoices without supply of goods to the was conducted over five months, into the new sector of tune of Rs. 701 crores and the evasion of Rs. 107 crores Illegal Wildlife Trafficking and Trade. With the help of of GST and two persons were arrested. analyses of existing STRs (based on keyword searches), Enforcement Directorate recorded ECIR and best practices followed by FINTRAC & AUSTRAC, initiated investigation in the case shared by FIU-IND in deliberations with the members of the select Working the form of operational analysis based on the subject- Group, Red Flag Indicators were devised for the sector. Suspicious high volume Hawala and Crypto transactions in Jammu and Kashmir allegedly for terror /secessionist 4.3.4 Memorandum of Understanding with Oman activities. FIU-IND has been part of Egmont group since 4.3.7 Performance of FIU-IND in 2023-24 2007. Egmont Group comprises 174 Financial Intelligence The intelligence shared by FIU-IND with the LEAs Units and provides a platform for exchange of information has led to the following achievements:- in relation to money laundering, financing of terrorism and related predicate offences. FIU-IND has contributed (a) Assets attached worth of Rs. 983.40 crores and to Egmont group in different capacities. Mr Manish Kumar Criminal proceeds identified for Rs. 2763.30 Hairat, Additional Director was elected as Vice Chair of crores. Information Exchange working group. Shri Vikas Aswal , (b) Undisclosed income detected for Rs. 10,998 Deputy Director, was selected as ESW Board member crores. which was constituted for the first time. FIU-IND has now (c) Seizure of 461 kgs Narcotics/Psychotropic smoothly transitioned from old Egmont Secure Web to substances. the new Egmont Secure web i.e. information exchange platform. Apart from this FIU-IND actively signs MoUs (d) Regulatory action by FIU on REs: 211 compliance with counterpart FIUs to further streamline the information orders with Rs. 39.14 crores penalty levied. exchange process. During F.y 2023-2024, FIU-IND signed (e) 184 arrests made in ML/TF and other predicate MoU with FIU-Oman on 15th December, 2023, making offenses. the total number of MoUs as 50. Implementation of the Right to Information Act, 2005. Implementation of the Right to Information Act, 2005, Number of RTI applications received, disposed off and denied during the period from 01/04/2024 to 30/11/2024 Received Disposed Off Remarks Transferred Denied 63 0 0 Information provided for 58 RTI request received & 05 applications respectively are pending for disposal. 151Annual Report 2024-2025 Note: FIU-IND has been included in the Second 4.5 Financial Action Task Force Schedule of Right to Information Act, 2005 vide i. Financial Action Task Force (FATF) is an Department of Personnel & Training notification dated independent inter-governmental body having 39 28.09.2005 and therefore under Section 24(1) of the Right members (37 jurisdictions and 2 organizations) to Information Act, 2005, is exempt from the operation of established by its member jurisdictions for this Act, except for the information pertaining to the effective implementation of legal, regulatory and allegation of corruption and human right violation. operational measures for combating money laundering, terrorist financing, combating 4.4 Economic Security (ES) financing or proliferation of weapons of mass 4.4.1 Economic Security Cell deals in coordination destruction in countries across the world. India work relating to investigation and enforcement agencies, became a member of FATF in 2010. India is also it deals in implementation of recommendations made by a member of two FATF Style Regional Bodies the Group of Ministers/various Committees etc. relating (FSRBs) -Asia Pacific Group (APG) and Eurasian to economic security matters, matters relating to foreign Group the combating Money laundering and Financing of Terrorism (EAG) organizations such as Asia/Pacific Group on Money Laundering, EGMONT Group etc. It also deals in ii. The core work of FATF is to conduct Mutual administration/amendments of Prevention of Money Evaluation of its Members and to guide and assist Laundering Act. In addition, the organizations shown FSRBs to conduct Mutual evaluation of their below are administratively controlled by E.S. Cell: respective member jurisdictions. The last round of Mutual Evaluation of India begun in May 2023 (i) Adjudicating Authority under the Prevention based on the revised standards of FATF (40 of Money-laundering Act. recommendations and 11 Immediate outcomes) (ii) Financial Intelligence Unit-India. and the same has been completed in June, 2024. In its last Mutual Evaluation, 4.4.2 Prevention of Money Laundering Act (PMLA) was India has achieved a high-level of technical enacted on 17th January, 2003 and brought into force on compliance across the FATF Recommendations 1st July 2005. The object of this Act is to prevent money and has taken significant steps to implement laundering and to provide for confiscation of property measures to tackle illicit finance. The Mutual derived from, or involved in, money - laundering and for Evaluation Report of India, which was adopted matters connected therewith or incidental thereto. Two in the FATF plenary held in Singapore between main objectives of the Act are: June 26th and June 28th, 2024, places India in the 'regular follow-up' category, a distinction Criminalize money laundering and provide for  shared by only four other G20 countries. This attachment, seizure and confiscation of property marks a significant milestone in the nation's involved in money laundering [Implemented by efforts to combat money laundering (ML) and Enforcement Directorate]; and terrorist financing (TF). Prescribe obligations on banks, financial  iii. The Mutual Evaluation is very comprehensive Institutions and intermediaries relating to KYC, and intense exercise and evaluates the anti- record keeping and furnishing reports money laundering and combating terror financing [Implemented by Financial Intelligence Unit-India (AML/CFT) abilities of a country's financial sector. (FIU-IND)]. iv. FATF Cell was constituted in DoR in 2017 vide 4.4.3 The Prevention of Money-laundering GOI Gazette Notification dated 9th Nov, 2017. (Maintenance of Records) Rules, 2005 was amended v. Coordination or work related to FATF Secretariat through the Prevention of Money-laundering is the main function of FATF Cell. As part of this, (Maintenance of Records) Amendment Rules, 2024 in FATF coordinates with other key agencies such the Financial Year 2024-25.. as ED, FIU-IND, RBI, SEBI, IRDAI, MHA, NIA, 4.4.4 Notification under section 11A of the Prevention MEA, MCA etc. of Money-laundering Act, 2002- During the Financial Year vi. The Cell receives, circulates and discusses 2024-25 through notifications dated 30.04.2024, various documents/ proposals related to FATF, 12.06.2024, 13.08.2024, 22.08.2024, 03.12.2024 and APG, EAG with all the concerned stakeholders 12.12.2024, total 26 entities were notified under section within the country and comments of India are sent 11A of the Prevention of Money-laundering Act, 2002 for on these issues, keeping national interests in taking Aadhaar authentication facility. view. 152Department of Revenue III vii. The FATF cell also handles nominations of Indian instrumental in bringing Virtual Asset Service delegation to the Plenaries and other important Providers (VASPs), Company Secretaries, meetings of FATF, APG and EAG. Officers from Charted Accountants, and Trust & Company the key agencies along with officers from FATF Service Providers under the ambit of AML/CFT Cell participate in these meetings and the supervision, and for their notification as reporting delegation takes part in the multilateral entities for FIU-IND. FATF Cell coordinated with discussions on various issues. all relevant organisations to develop and release the National AML/CFT Policy. Officers from FATF viii. Currently, FATF Cell coordinates the work related Cell attend FCORD meetings for coordination on to the MERs and FURs. Joint Secretary in charge Counter Financing of Terrorism (CFT), as well of FATF matters is the National Coordinator and as CT dialogue. Director (FATF) is the Deputy National Coordinator for the Mutual evaluation exercise. xiv. The Plenary and Working Group meetings of FATF, EAG, APG are now being conducted in ix. An important part of FATF mutual evaluation is physical format and Indian delegation has been to conduct National Risk Assessment where risk attending the same. The February 2024 FATF of various sectors of the economy like Banking, Plenary was held in Paris, France and was Insurance, Capital Markets, Designated Non- attended by a thirteen (13) member delegation Financial Business and Profession sectors etc., from India where as the June, 2024 Plenary was are assessed periodically. FATF Cell, DoR held in Singapore and was attended by 25 functions as the coordinator for conducting member delegation due to the final discussion(s) India's/TF NRA. Currently, the FATF Cell is on Mutual Evaluation Report of India. The coordinating the work related to National Risk October 2024 FATF plenary was held in Paris Assessment 2025. and was attended by 8 (eight) member x. An Inter- Ministerial Coordination Committee has delegation from India. been constituted under the Chairpersonship of xv. The FATF Cell, Department of Revenue is hosting Revenue Secretary under Sec.72A of PMLA with the EAG Plenary meetings, from 25th to 29th the mandate of macro-level policy decision November 2024 in Indore, MP and the same was making on AML/CFT matters, operational co- attended by the delegations from EAG member operation between the Government, law countries and its observer states. enforcement agencies, the Financial Intelligence Unit-India and the regulators or supervisors, and 4.6 Narcotics Control (NC) supervision of National Risk Assessment (NRA). 4.6.1 The Narcotics Control Division administers the FATF Cell works as the Secretariat to the IMCC. Narcotic Drugs and Psychotropic Substances Act,1985 xi. An AML/ CFT Joint Working Group under the (61 of 1985), which prohibits, except for medical and Chairmanship of Additional Secretary (Revenue) scientific purposes, the manufacture, production, has been created for enhancing operational co- possession, sale, purchase, transport, warehouse, use, ordination among all stakeholders. consumption, import inter-State, export inter-State, import into India, export from India or transshipment of narcotic xii. FATF Cell is also part of the core group drugs and psychotropic substances. The policy of the constituted by Department of Personnel and Governments has thus been to promote use of narcotic Training to work on G20 Anti-Corruption Working Drugs and psychotropic substances for medical and Group (ACWG) and is working closely with all scientific purposes while preventing their diversion from stakeholders on the Action plan for 2022-24 licit sources, and prohibiting illicit traffic and abuse. The which covers the year of 2023, India's presidency Narcotic Drugs and Psychotropic Substances Act divide of G 20. FATF Cell provides regular inputs for the powers and responsibility of regulation of licit activities. the Finance Track of G 20 coordinated by DEA, Section 9 of the Act has listed various activities which BRICS AML/CFT meetings, RIC meetings, CT the Central Government can, by rules, regulate while Dialogues, to UN on Terrorist Financing related Section 10 lists various activities which the State Targeted Financial Sanction and meetings of Governments can, by rules, regulate. Accordingly, other multilateral economic bodies. Narcotic Drugs and Psychotropic Substances Rules, 1985 xiii. During the year 2024, FATF Cell, Department of have been framed by the Central Government, which Revenue worked closely with financial sector regulates cultivation of opium, manufacture, import/export supervisors and regulators in order to improve of narcotic drugs and psychotropic substances. Further the existing AML/CFT infrastructure, and to prevent diversion of precursor chemicals, of wide meetings were held to improve our compliance industrial use, for illicit manufacturing of, narcotic Drugs with FATF standards. FATF cell's work was and psychotropic Substances, the Narcotic Drugs and 153Annual Report 2024-2025 Psychotropic Substances (Regulations of Controlled IV. Performing the functions of Competent National Substances) Order, 2013 has been framed under Section Authority (CNA) for international Trade for 9A of the NDPS Act. The aforesaid provisions of NDPS issuance of Export Authorizations and Import Act, 1985, inter-alia are implemented through to Certificate for Export/Import of Narcotic Drugs & subordinate offices namely (i) Central Bureau of Narcotics Psychotropic Substances and issuance of 'No (CBN) and (ii) Chief Controller of Factories, Government Objection Certificate' for import/export of Opium and Alkaolids Factories (GOAF). precursor chemicals under the 1961, 1971 and 1988 UN Conventions, dealing with Narcotic 4.6.2 FUNCTIONS/ WORKING OF THE CENTRAL Drugs, Psychotropic substances and chemicals/ BUREAU OF NARCOTICS substances used for manufacture of these drugs. The Narcotics Commissioner heads the Central V. 1988 Convention requires CNA of the countries Bureau of Narcotics (CBN) with headquarters at Gwalior. to take all possible measures to prevent diversion The Narcotics Commissioner excises control and from international trade of precursor chemicals supervision over poppy cultivation, which is presently used in illicit manufacture of Narcotics Drugs and undertaken in selected notified areas of the three states Psychotropic Substances in close cooperation of Madhya Pradesh, Uttar Pradesh & Rajasthan. In with INCB and competent authorities of addition to the work relating to licensing of opium poppy cultivation, measurement and test measurement of fields concerned countries. and procurement of opium and poppy straw from which VI. Liaison with the International Narcotics Control no juice is extracted; the CBN also undertakes preventive Board (INCB), United Nations office on Drugs checks and exercises vigil to prevent diversion of opium and Crime (UNODC) as well as with the into illicit channels as well as enforcement of Narcotic Competent National Authorities of other countries Drugs & Psychotropic Substances Act, 1985. on issues related to international trade in narcotic I. Survey, detection and eradication of illicit drugs, Psychotropic substances and precursor cultivation of opium poppy throughout the country. chemicals. II. Enforcement of provisions of the NDPS Act 1985 VII. Co-ordination with other Drug Law Enforcement to suppress illicit trafficking of Narcotic Drugs, Agencies such as Directorate of Revenue Psychotropic Substances and Controlled Intelligence, Customs, Narcotics Control Bureau, Substances including search, seizure, arrest, State Police, State Excise, State FDAs and investigation and prosecution of drug offenders, various other drug law enforcement agencies. tracking and freezing of illegally acquired properties of drug traffickers derived from illicit 4.6.2.1 Performance and Achievements: - drug trafficking for forfeiture and confiscation. The performance / achievement with respect to issuance III. Issuance of licenses domestic manufacturers for of NOCs issued by the Central Bureau of Narcotics during manufacture of synthetic Narcotics Drugs notified the year 2024-25 for export/import of precursor Chemicals under the NDPS Act 1985. is as under:- From From 01.11.2024 No. of NOC issued 01.04.2024 to to 31.03.2025 31.10.2024 (projected) For export of controlled substance 1334 600 For Import of controlled substance 1145 - Total 2479 600 No of Pre-export Notification (PEN) sent to CAN 1343 600 Number of Stop Shipment/suspended (Export) 27 NA International Narcotics Control Board (INCB) PEN (during the period from 01.04.2024 to 31.10.2024) has provided online Pre-Export Notification (PEN) to the competent authority of various importing system for exchange of information between the countries, for verifying the legitimacy of the Competent National Authorities. CBN had issued 1343 transactions. 154Department of Revenue III The performance/ achievement with respect during the year 01.04.2024 to 31.10.2024 for export/ to issuance of Export authorization and Import import of Narcotic drugs / Psychotropic substance is Certificate issued by Central Bureau of Narcotics as under :- Psychotropic Narcotics Drugs Substances From From 01.11.2004 to From 01.04.2024 From 01.04.2024 01.11.2024 to 31.03.2025 to to 31.10.2024 31.03.2025 (Projected) 31.10.2024 (Projected) No. of Export 4121 2944 204 145 authorization issued No. of Import 681 487 163 40 Certificate issued Total 4802 3431 367 185 The performance/ achievement with respect to Narcotics during the year 01.01.2024 to 31.10.2024 of Quota allocation of narcotics drugs to various Natural Narcotics Drugs (ND)/ Synthetic Narcotics Drugs pharmaceuticals companies by Central Bureau of (SD) is as Under:- 2024 Quota Allocation Details (From 01.01.2024 to 30.10.2024) Quota Allocation of Natural Narcotics 399 Drugs (ND) certificate issued Quota Allocation of Synthetic Narcotics 70 Drugs (SD) certificate issued Total 469 4.6.2.2 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 Details of Destruction of illicit Opium Poppy and Psychotropic Substances. It also undertakes Cultivation and Cannabis in 2024 and 2025 (01.04.2024 investigations and prosecution of drug related offences, tracing and freezing of illegally acquired property of drug to 31.10.2024) are as under:- Year State Area Destroyed (In Hectare) Himachal 2024-25 2995 Pradesh 2024-25 Uttarakhand 351 155Annual Report 2024-2025 Seized drug by CBN during the year 2024-25 (Upto 31.10.2024). Name of Drug Seized No of Cases Quantity (in unit) Poppy straw 75 54766.13 kgs Heroin 3 1.4126 kgs Cannabis 4 147.555 kgs Charas * 0.181 kgs Tramadol Tab/Cap/Inj. 10 555401 Tab / Cap/ Inj. + 304.99 Kgs. Opium 25 109.963 kgs Morphine Sulphate Tab/Cap/Inj * 300 742710 Tab / Cap / Inj & 6.73 Kg Alprazolam tab/Powder 6 Powder Chlordiazepoxide Tab * 5330 Tab/Cap/Inj. Clonazepam Tab * 205 Tab/Cap/Inj. Lorazepam 1 3000Tab/Cap/Inj. Nitrazepam Tab * 40140 Tab/Cap/Inj. Ketamine * 6530 Tab/Cap/Inj. Buprenorphine * 4436 Tab/Cap/Inj. Codeine phosphate Syp./Tab * 15550 Tab/Cap/Inj. Dizepam Tab/Inj * 50 Tab/Cap/Inj. Midazolam tab/cap/Inj * 10810 Tab/Cap/Inj. Pentazocine Inj * 850 Tab/Cap/Inj. Fentanyl * 1975 Tab/Cap/Inj. MDMA Pills/Crystal 3 503 gm + 100 Cocaine * 0.02 kgs Suspected Psychotropic powder 1 22.6 kgs M.D. Powder 2 0.672 kgs Phenobarbital Tab * 10 Tab/Cap/Inj. Zolpidem Tab * 800 Tab/Cap/Inj. Methamphetamine 4 1.976 kgs Tranadik * 60 Tab/Cap/Inj. 156Department of Revenue III Disposal of Seized drug by CBN during the year 2024 (Upto 31.10.2024) Narcotics Drugs/Psychotropic Sr. No No. of Cases Quantity Substances/Precursor 1 Opium 46 1044.809 Kg 2 Heroin 15 11.9 Kg 3 Cannabis 8 1051.923 Kg 4 Charas/Hashish 5 215.7 Kg 5 Poppy Husk 55 136249.8 Kg 6 Acetic Anhydride - 70 Lit 7 Pentazocin - 2769 Ampules 8 Black Poppy Seeds 17753.46 Kg 9 Diazepam 1 19988 10 Alprazolam 266 11 Buprenorphine 2 92 Ampules 12 Poppy Plant 1 1017 Plant 13 Tramadol 2271 14 Codeine Syrup 213 Bottle Psychotropic Substance 15 2 8 Kg (Powder)* 4.6.2.3 E-Governance Activities. operational for CBN Hqrs, Gwalior to go fully digital. To further strengthen this programme, e-office will also be As regards, E-Governance activities, it is stated implemented in the sub-official of this organization. that various instructions of the Government, on issue of e-governance, are noted for compliance and necessary Take another leap towards transforming India into action. Use of CCTV's Camera's at Settlement and digital India Unified Web Portal of CBN was launched Weighment Centers was also successfully carried out. with URL (http://www.cbnonline.gov.in) Unified Portal is working as one stop solution for all license related work Payment to cultivators made through e-payment from the with Central Bureau of Narcotics. crop year 2012-13 continuously. 4.6.2.4 Right to information Act, 2005: Computers have been provided, in each section and have been inter-connected through Network. All Various provisions of Right of Information Act, urgent reports or replies to the references received from 2005 have been implemented in the Central Bureau of the Ministry are being forwarded to the Ministry of Finance, Narcotics in the year 2005. Unit -wise information of New Delhi and other offices through e-mail, as far as CPIO's and First Appellate Authorities appointed at possible. E-office programme is also launched and made present is as follow:- Headquarters UP S.No. MP Unit Raj. Unit Gwalior Unit 1 CPIO 1 17 8 2 2 FAA 1 1 1 1 157Annual Report 2024-2025 Further, it is to apprise that the application BÉEÉ +ÉɪÉÉäVÉxÉ ÉÊBÉEªÉÉ MɪÉÉ A´ÉÆ ÉÊ´ÉVÉäiÉÉ |ÉÉÊiÉ£ÉÉÉÊMɪÉÉå BÉEÉä |ÉÉäiºÉÉcxÉ º´É°ô{É received under RTI section are dealt with the RTI Act {ÉÖâóºBÉEÉ® 15.10.2024 BÉEÉä ÉÊnªÉä MɪÉä* <ºÉBÉäE +ÉÉÊiÉÉÊ®kÉE BÉEɪÉÉÇãÉªÉ àÉå ºÉSÉÉÉÊãÉiÉ and are disposed off in the time limit. Detailed functions {ÉÖºiÉBÉEÉãÉªÉ cäiÉÖ ÉÊ´ÉÉÊ´ÉvÉ àÉèMÉVÉÉÒxÉ ºÉàÉÉSÉÉ® {ÉjÉ A´ÉÆ {ÉÖºiÉBÉEÉå BÉEÉ BÉEªÉ ÉÊBÉEªÉÉ and various aspects of the work done by the Department MɪÉÉ * are also available on CBN website http://www.cbn.nic.in 4.6.3 FUNCTIONS /WORKING OF GOVERNMENT 4.6.2.5 During the year 2024-25, a quantity of 330.567 OPIUM AND ALKAOLIDS WORKS (GOAW) Metric Tons of opium at 700 consistence (Provisional figure) was procured from opium cultivators. The average The Government Opium & Alkaloid Works yield per (kg/hectare) at 700 consistence on the basis of (GOAW) is engaged in the processing of raw opium for results received from Madhya Pradesh, Rajasthan and export and manufacturing of opiate alkaloids through its Uttar Pradesh units for the crop 2022-23 in 61.948 Kg/ two Factories viz Govt. Opium & Alkaloid Works (GOAW) hectare (all India). The all India average yield during the at Ghazipur (U.P.) and Neemuch (M.P.). The Products crop year 2023-24 64.971 Kg/hectare (provisional). These manufactured at GOAWs are mainly used by figures are for crop year 2023-24 as the crop cycle for pharmaceutical industry of India for Preparation of cough the cultivation of opium crop cycle for cultivation of opium syrup, pain relievers, de-addiction drugs and tablets for commence from 01st October and end on 30 September terminally ill cancer and HIV patients. The GOAW are of the following year. administered by a High-Powered Body called the "Committee of Management" constituted and notified by Production of Unlanced Poppy Straw (UPS):- the Government of India in 1970. The Additional Secretary Total 23768 cultivators were licensed for production of (Revenue), Department of Revenue, Ministry of Finance unlanced poppy straw cultivation in crop year 2022-23 is the Chairman of the Committee of Management. An and total 49526 cultivators were issued license in crop officer of the rank of Commissioner/Joint Secretary is the year 2023-24 for unlanced poppy straw cultivation.1518 Chief Controller of Factories who heads the Organization Metric Ton of unlanced poppy straw produced in crop and each of the two factories at Neemuch and Ghazipur year 2022-23 and 3285.9508 Metric Ton crop year are managed by a General Manager of the rank of 2023-24. Additional Commissioner/Director. The office of the Chief 4.6.2.6 Other highlights of performance and Controller of Factories is located at New Delhi. Each of achievements during the year 2023-24. the factories at Ghazipur and Neemuch comprises two units - the Opium Factory and Alkaloid Works. The Opium GEM Purchase:- Factories undertake the work of receipt of opium from Purchase of items for the official purpose is made the fields, their storage and processing for exports and through GEM portal. The dead stock items, perishable domestic consumption. The Alkaloid Works are engaged items are purchased through GEM portal. The upcoming in processing raw opium into alkaloids of pharmacopeial purchase/ services of the articles will also be made grades to meet the domestic demand of the through the GEM portal mostly. pharmaceutical industry. The GOAWs have employed a total work force World Drug Day,26th June, 2024 by Central Bureau of about 420 people at the two opium and alkaloid plants. of Narcotics: - The work force comprises of officials and staff drawn from Every year 26th June is observed as the 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 organized 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 Further, for the first time in India the process of slogan writing and Tree plantation in the official campus. implementation of Concentrated Poppy Straw Technology Various awareness programmes were also conducted by has been commenced. In the Opium Policy 2021-22 of officers of at Mumbai, Chennai and Hyderabad. the Govt. of India licenses have been issued for cultivation of un-lanced Opium Poppy and tendering of un-lanced Programme organized by Hindi section of Central Poppy Straw to the Government of India. Concentrated Bureau of Narcotics Poppy Straw (CPS) is a technology for production of ÉÊ´ÉkÉ ´É­ÉÇ 2023-24 BÉäE nÉè®ÉxÉ ÉÊcxnÉÒ +ÉxÉÖ£ÉÉMÉ àÉå 14.09.2024 alkaloid from un-lanced Poppy Straw. The office of Chief BÉEÉä ÉÊcxnÉÒ ÉÊn´ÉºÉ àÉxÉɪÉÉ MɪÉÉ A´ÉÆ 14 ÉʺÉiÉà¤É® ºÉä 30 ÉʺÉiÉà¤É® iÉBÉE ÉÊcxnÉÒ Controller of Factories has signed two contracts with àÉ åBÉEɪÉÇ BÉE®xÉä cäiÉÖ |ÉÉäiºÉÉÉÊciÉ BÉE®xÉä BÉäE ÉÊãÉA BÉEɪÉÉÇãÉªÉ àÉ åÉÊ´ÉÉÊ£ÉxxÉ |ÉÉÊiɪÉÉäÉMÊÉiÉÉ+ÉÉå private entity, M/s Bajaj Healthcare Ltd. to process 158Department of Revenue III minimum 500 MT of un-lanced poppy straw and to of semi refined alkaloids on PPP basis through process minimum 100 MT of Opium gum to extract semi concentrated poppy straw (CPS) technology for period refined morphine (SRM) and other alkaloids. M/s Bajaj of 20 years. The anticipated plant shall have projected Healthcare Ltd. has started Alkaloid extraction from opium annual installed capacity to process 10,000 MT of CPS, gum w.e.f. 09.12.2022. and shall additionally augment existing CCF capacity to process at least 100 MT of semi refined alkaloids The office of the Chief Controller of Factories has tendered through this plant on annual basis. M/s Sunlite executed concessionaire agreement with M/s Sunlite Alkaloids Pvt. Ltd., Neemuch for set up of production unit Alkaloids Pvt. Ltd. is expected to commence commercial for processing of un-lanced poppy straw and extraction production by the end of 2025. 4.6.3.1 PERFORMANCE OF GOAF FOR THE FINANCIAL YEAR 2024-25 (Provisional) Estimated Production Actual Production Sl. Particulars Unit from April 2024 to November No. December, 2024 to 2024 March, 2025 A PRODUCTION 1 a) Morphine Sulphate KG. 266.80 500 b) Codeine Phosphate (C.P.) KG. 22393.5 19429.5 c) Pure Thebaine KG. 856.85 1048.200 d) Noscapine BP KG. 633 3000 e) Papavarine S.R. KG. 1923.87 1120 f) IMO Powder KG. 9800 3200 g) IMO Cake KG. 0.000 - Total (1) (a to g) KG. 35874.02 28297.7 Actual Sales Estimated Sales from Sl. Particulars April 2024 to December,2024 to No. November, 2024 March,2025 Quantity ( in Kg.) Quantity ( in Kg.) B SALES a) Morphine Sulphate 300.01 0 b) Codeine Phosphate (Indigenous 18755.751 15500 Production & Imported) c) Pure Thebaine 770 775 d) Noscapine BP 2878.5 7000 e) Papavarine S.R. 1800 300 f) IMO Powder (Dom. Sales+Export) 7503.5 8000 g) IMO Cake (Domestic 3484.721 5000 Sales+Export) h) RIO (Export) 68.170 0 159Annual Report 2024-2025 C. (a) COUNTRY WISE EXPORT OF OPIUM AT 90°C (excluding domestic sales of IMO Powder & Cake) FOR THE FINANCIAL YEAR 2024-25 (Upto November, 2024) (Quantity in Kgs) Unit USA France Switzerland Sri Lanka Germany Total 1 Ghazipur 0 2000 668 130 0 2798 2 Neemuch 68.170 0 0 0 0 68.170 Total 68.170 2000 668 130 0 2866.17 (b) COUNTRY WISE EXPORT OF OPIUM AT 90°C (excluding domestic sales of IMO Powder & Cake) FOR THE FINANCIAL YEAR 2024-25 (FROM DECEMBER 2024 TO MARCH 2025) (Quantity in Kgs) Unit USA France Switzerland Sri Lanka Total 1 Ghazipur 0 8000 0 0 8000 2 Neemuch 0 0 0 0 0 Total 0 8000 0 0 8000 D. (a) REVENUE RECEIPTS (ON REALISATION BASIS) FOR THE FINANCIAL YEAR 2024-25 (UPTO NOVEMBER 2024) (in Rs.) Opium Factory Alkaloid Works Total 1 Ghazipur 801120 486152441 486953561 2 Neemuch 15115961 827068054 842184015 Total 15917081 1313220495 1329137576 (b) PROJECTION OF REVENUE RECEIPTS (ON REALISATION BASIS) FOR THE FINANCIAL YEAR 2024-25 (FROM DECEMBER, 2024 TO MARCH, 2025) (in Rs.) Opium Factory Alkaloid Works Total 1 Ghazipur 450000 445000000 445450000 2 Neemuch 7500000 500000000 507500000 Total 7950000 945000000 952950000 160Department of Revenue III II. ACHIEVEMENT OF CCF ORGANISATION UP TO THE MONTH OF NOVEMBER 2024 WITH COMPARATIVE DATA OF PREVIOUS YEAR i.e. 2023 FOR THE SIMILAR PERIOD Sl. Actual Production No. Particulars Unit April to November 2023-24 2024-255 (1) (2) (3) (4) (5) A. PRODUCTION 1. Manufacture of Drugs: a) Morphine Sulphate KG. 243.90 266.80 b) Codeine Phosphate KG. 22319 22393.5 c) Pure Thebaine 1085.5 856.85 KG. d) Noscapine BP 0 633 KG. e) Papavarine S.R. KG. 1603.5 1923.87 f) IMO Powder 11500 9800 KG. g) IMO Cake KG. 0 0.000 36751.9 Total (1)(a+g) KG. 35874.02 B. SALES Sl. 2023-24 2024-25 No Particulars April to November April to November . Quantity Quantity (Kgs) (Kgs) (1) (2) (4) (6) 1 Domestic Sale of Drugs: (on actual basis) a) Morphine Sulphate 260.31 300.01 b) Codeine Phosphate 18891.01 18755.751 (Indigenous & imported) c) Pure Thebaine 965.001 770 d) Noscapine BP 1037 2878.5 e) Papavarine S.R. 1150 1800 f) IMO Powder (Domestic sale + 11675.871 7503.5 Export) g) IMO Cake (Domestic sale + 2305.04 3484.721 Export) 161Annual Report 2024-2025 C COMPARATIVE COUNTRY WISE EXPORT OF OPIUM AT 90°C (up to November of each Financial Year) (Qty. in Kgs. at 90ºC) Unit USA FRANCE SWITZERLAND JAPAN SRI LANKA Germany TOTAL 2023-24 Ghazipur 0 4000 59.87 0 0 0 4059.9 Neemuch 219.667 0 0 0 0 0 219.67 Total 219.667 4000 59.87 0 0 0 4279.5 2024-25 Ghazipur 0 2000 668 0 130 0 2798 Neemuch 68.17 0 0 0 0 0 68.17 Total 68.17 2000 668 0 130 0 2866.17 Digitization in Opium receiving, sampling and organization. In case of gender bias / harassment  testing: -OCTA (Opium Container Tracking reported if any, it is ensured that appropriate action is Application) is QR code based, Blockchain taken against the erring official. Internal Complaint protected application introduced by this Committee has already been formed at CCF office, New organization to ensure transparency & efficiency Delhi, at GOAW, Neemuch & Ghazipur for the purpose in receiving, sampling & testing of opium gum. of dealing with the complaints received regarding sexual During the crop year 2023-24 GOAW, Neemuch harassment at workplace. has completed sampling & testing of opium gum 4.6.3.6 E-Governance Activities: that was received from 36,771 farmers in less than 20 days. Purchases and award of contracts are being done  through E-tendering and GeM except for items Shut down works at GOAW, Neemuch has been  of urgency and which are not available on GeM. completed & opium charging capacity has been increased and stabilized to 300 MT per year (25 OCTA is an e-governance initiative done by this  MT per month), doubling the previous capacity office in which receiving, sampling & testing of 150 MT per year. This expansion significantly process of opium gum is done by QR code and enhances our overall production capabilities. Blockchain based application increasing transparency and efficiency. GOAW, Neemuch has received the GMP  certificate, effective from 01.10.2024. Additionally, 4.6.3.7 Implementation of the Right to Information Act, we have received the GAP analysis report for 2005: A RTI cell in each unit of this organization, such as WHO GMP, provided by our GMP consultant the factories at Ghazipur and Neemuch,as also at the Delhi office of the CCF have been set up. These cells 4.6.3.2 CCF organization does not implement and function directly under the officials designated as CPIO/ govern any scheme for public services. APIO. The applications received are regularly disposed 4.6.3.3 The formation has regular monitoring by of within the prescribed timeframe. management and increased efficiency 4.6.3.8 All rules and policies laid down for benefit of 4.6.3.4 Activities Undertaken for Disability Sector & persons with disabilities are being followed. The CCF SCs/STs & Other Weaker Sections of Society: The organization does not govern and implement any scheme. CCF organization is strictly adhering to the prescribed 4.7 Central Economic Intelligence Bureau (CEIB) rules and regulations for the welfare and development of disabled, SCs, STs and other weaker sections. With an 4.7.1 The Central Economic Intelligence Bureau is the objective to initiate prompt action on grievances of such nodal agency on economic intelligence. It was set up in sections, a committee has been formed with members 1985 for coordinating and strengthening the economic drawn from such sections. Roster registers for this intelligence and enforcement activities under the Ministry purpose are also being maintained. of Finance. 4.6.3.5 Gender Budgeting/Empowerment of Women: 4.7.2 The Bureau is headed by a Director General who Equal opportunity / status is enjoyed by women in CCF is assisted by two Additional Director Generals (JS 162Department of Revenue III Equivalent), Joint Secretary (COFEPOSA), Additional / (h) Organizes meetings of Working Group under the Joint Directors(DS/Director equivalent), Under Chairmanship of Revenue Secretary at Secretaries, Deputy Directors(US equivalent) and other prescribed intervals and submits a report to the staff. The Bureau has a sanctioned strength of 116 Chairman of the EIC after every meeting; officers & staff. (i) Acts as a 'think tank' for the Department of 4.7.3 MAIN FUNCTIONS OF CEIB Revenue, Ministry of Finance on all issues relating to economic offences, and undertakes 4.7.3.1 In terms of its existing charter, the CEIB functions analysis of economic activities at the macro level. as: 4.7.4 The details of the Activities of CEIB during a) The Secretariat for the Economic Intelligence 2023-24 are as under: Council (EIC) 4.7.4.1 The performance and achievements under the b) Coordination between various agencies for key/flagship programmes being implemented by coordinating action and repository of economic Divisions/departments during the year. intelligence (ECOINT) and (A) DESIGN AND DEVELOPMENT OF NEOR: c) Administers the COFEPOSA Act 1974 at Central The successful pilot launch of the NEOR Government Level. application marks a significant achievement in advancing 4.7.3.2 As part of its earlier mandate, the CEIB centralized data management and inter-agency collaboration. This state-of-the-art system, designed to (a) Maintains databases on economic offenders and streamline antecedent verification, 360-degree profiling, offences advance search, strategic analysis, REIC module, audit (b) Studies and analyses macro level economic trail, notifications and real-time case sharing among Law activities; Enforcement Agencies (LEAs). The seamless migration of existing NEIN data (c) Supervises and monitors the functioning of to NEOR, coupled with ongoing API integrations with Regional Economic Intelligence C o u n c i l s agencies such as CBDT, CBIC, NCRB, SEBI, and MCA, (REICs) which are coordinating bodies at the field highlight system's robust capabilities. Additionally, the level and comprise representatives from procurement of Hyper-Converged Infrastructure (HCI) various Central and State enforcement and through GeM, following comprehensive consultations with investigative agencies dealing with economic manufacturers, demonstrates a strategic approach to offences; optimizing hardware specifications. (d) Organizes training programmes in premier The NEOR is in its final production stage, with training institutions for officers of the Department key features like dashboards, fraud monitoring reports, of Revenue/ Member agencies of REICs. and advanced search functionalities being improved. The 4.7.3.3 In terms of its existing revised charter dated application has been undergoing extensive User 12.12.2003 issued by Department of Revenue (HQ), the Acceptance Testing (UAT) and continuous testing and CEIB carries out the following functions: feedback integration for various modules highlight the system's adaptability and commitment to effectively (a) The Secretariat for the Economic Intelligence combat economic offenses. This achievement highlights Council (EIC); NEOR's potential as a transformative tool in combating economic crime. (b) Coordination between various agencies for coordinated action; (B) GLOBAL ENTRY PROGRAMME (GEP) (c) Repository of economic intelligence (ECOINT); CEIB is designated as nodal agency under the Ministry of Finance, for giving clearance to the GEP (d) Administers the COFEPOSA Act 1974 at Central applicants, a US Customs and Border Protection (CBP) Government Level; program facilitating expedited clearance for low-risk (e) Ensures prompt dissemination of intelligence travellers at US airports. CEIB coordinates with nine law enforcement agencies i.e., ED, DRI, NIA, SEBI, DGGSTI, having security implications among the NSCS, SFIO, CBDT, CBI and NCB for obtaining feedback/input IB & R&AW; from these participating agencies. CEIB also performs (f) Coordinates the functioning of Regional antecedent checks for each applicant from its own Economic Intelligence Councils (REICs); database.During FY 2023-24, total of 6,585 GEP applications were processed and during FY 2024-25, total (g) Coordination with Multi Agency Centre (MAC); of 12026 GEP application have been processed. 163Annual Report 2024-2025 (C) FOLLOW UP OF THE ACTIONS PROPOSED maintaining, sharing and analysing the economic offences DURING WGIA: data. To make the process of sharing of information as per the Information sharing protocol with the law CEIB conducted Working Group on Intelligence enforcement agencies automated and streamline, the Apparatus meeting on 28.05.2024 which was chaired by application will use the Application Program Interface the Revenue Secretary.WGIA is an apex intelligence body (API) technique. In this direction, a meeting with GSTN which is precursor to EIC meetings not only assist in was conducted for mapping the fields of NEOR with that identifying emerging financial and economic offenses but of GSTN and also to discuss on the future course of action analyze the role of multiple enforcement agencies in for speedily implementation of the API integration. mitigating such offences. In the meeting, 16 agendas involving multi agency implication were deliberated (G) ACCESS TO MOBILE NUMBER RELATED amongst the member agencies. Some crucial decisions IDENTIFIERS DATABASE TO BANKS AND were taken on these agendas to address the issue. CEIB LEAS: is working in close coordination with the action taking During the last WGIA meeting held on agencies to ensure smooth and timely implementation 28.05.2024, one of the agenda items discussed was of the decisions taken. access of mobile number related identifiers database to As a result of the efforts of the Bureau, Misuse Banks and LEAs. Delivering the digital banking and of India-ASEAN FTA by way of import of duty-free gold financial services without proper verification of mobile findings was addressed by the Directorate General of number authenticity makes the system vulnerable to Foreign Trade vide its Notification No. 17/2024-25 dated financial frauds. During the meeting, DoT highlighted the 11th June, 2024. development of a Digital Intelligence Platform that facilitates the verification of user names, demographic On the other agendas also, the Bureau is details, and retrieval of all mobile numbers linked to a continuously coordinating and deliberating meetings for user. implementation of the decisions taken. CEIB and Department of Telecommunication are (D) ONBOARDING OF LEAS TO NATIONAL working in close collaboration to bring interested agencies CYBER CRIME REPORTING PORTAL: onboard to avail the services for mitigation of such During the WGIA meeting, Indian Cyber Crime financial frauds.This may assist Law Enforcement Coordination Centre(I4C) offered providing access to the Agencies (LEAs) and State Police in investigations and NCRP for all LEAs for information sharing and intelligence for Banks to utilize this platform for verification of mobile gathering. CEIB is working with I4C for swift onboarding number seeded/to be seeded in the banking system. of Law Enforcement Agencies to National Cyber Crime (H) FACILITATING BANK CREDIT REQUEST: Reporting Portal (NCRP). Once implemented this will enhance the capabilities of the LEAs aiding effective In the last FY 2023-24, 10,520 reports with loans investigations. amounting to Rs. 68,19,801 croreswere processed. Till date in FY 2024-25, a total 6,924 reports amounting to (E) DELIBERATION ON MODALITIES OF Rs. 45,78,500 crores were processed. CREATION OF 'THE NATIONAL SERVICES IMPORT DATABASE': Out of these, 13 credit requests each of more than Rs.10,000 Crore were processed in October, One of the decisions taken during the Working 2024with the total cumulative amount being Rs. 1,98,514 Group on Intelligence Apparatus Meeting held on crores. 28.05.2024 was to constitute a working group comprising all stakeholder agencies to explore the creation of a Out of the above, State Bank of India had sent 'National Services Import Database'. A meeting was 10 credit requests of NBFCs, PSUs requesting loan conducted on 26.07.2024 to examine the modalities of amounts of Rs. 1,61,100 crores. creation of 'National Services Import Database'. This will foster the effective monitoring of large outward payments The above requests were processed pertaining under the guise of services. Central Board of Direct Taxes, to various entities including PSUs, NBFCs etc. Directorate of Revenue Intelligence, Enforcement (I) INFORMATION SHARING PROTOCOL: Directorate, FIU-IND, GSTIN were the participating agencies for the meeting. During the current FY 2024-25 total 43530 cases have been received from other Law Enforcement (F) API INTEGRATION OF NEOR APPLICATION: Agencies in which 19689 cases have been processed The CEIB has developed a web-based and NEOR entries have been done. Also, 7930 cases application named NEOR (National Economic Offence having multi agency ramification have been shared under Record). The application serves as a single interface for Information Sharing. 164Department of Revenue III (J) REGIONAL ECONOMIC INTELLIGENCE (M) BOOK ON COMPILATION OF STUDY COUNCIL (REICS) REPORTS PREPARED BY REICS CEIB is the coordinating agency for 30 Regional The book compiling study reports of REICs for the FY 2023-24 has been completed and was inaugurated Economic Intelligence Council (REICs), which are by the Revenue Secretary of the Ministry of Finance established across various states. Each REICs conducts during the All-India Conference of REIC Convenors, held bi-monthly meetings in a F.Y. The Designated Members on October 25, 2024, in Chandigarh. of the REICs belong to senior officers from various Law Enforcement Agencies which handles the revenue-based (N) ALL INDIA CONFERENCE OF REIC offences such as DRI, ED, DGGI, EOW, CBI, Income CONVENORS Tax, Lokayukta, SEBI, State Development Authorities, etc. The All-India Conference of REIC Convenors was REIC is a unique platform for LEAs to share revenue- held at Chandigarh on 25 Oct, 2024. The objective of the based offences having inter agency ramifications. conference was to give momentum to the 'Co-ordination and information sharing mechanism' of all 30 REICs. The During the current FY 2024-25, 28 REIC many Law Enforcement Agencies and REICs has given meetings have been conducted, wherein officers of CEIB presentation on the current issues i.e., "New Modus also attended to further strengthen the REIC structure Operandi unearthed in fake ITC cases" which is presented and operations. Also, officers from various departments by DGGI and Customs & Drug Cases-Inter-Agency such as FIU-IND, Telecom Authority, Narcotics Control ramification and Operational Coordination" presented by Bureau were also included in the REIC meetings. DRI Department. (K) TRAINING AND DEVELOPMENT 4.7.4.2 IMPLEMENTATION OF THE CONSERVATION OF FOREIGN EXCHANGE AND PREVENTION CEIB in order to increase learning, development OF SMUGGLING ACTIVITIES (COFEPOSA) and capacity building, organises various training Act, 1974. programme and courses for the officer under Dept. of Revenue. Total 10 courses are conducted annually. These Conservation of foreign exchange and prevention courses are organised in coordination with various training of smuggling activities is of prime importance for the institutes such as National Law University, New Delhi; economic health and national security of a Nation. Accordingly, the links which facilitate the violations of National Academy of Direct Taxes, Nagpur; National foreign exchange regulations and smuggling activities are Intelligence Academy, New Delhi; Indian Army, Pune; required to immobilizes by detention of persons engaged National Institute of Securities Markets, Navi Mumbai; in these operations as the smuggling, foreign exchange State Bank Institute of Consumer Banking, Hyderabad; racketeering and related activities have a deleterious Cabinet Secretariat Training Academy Gurgaon. CEIB effect on the national economy and thereby causing a also facilitated on job training programme for Assistant serious adverse effect on the security of the state. Section Officers probationers. To deal with this menace, the Conservation of During the current FY 2024-25 total 7 courses Foreign Exchange and Prevention of Smuggling Activities have been conducted in which 163 officers have been Act, 1974 (COFEPOSA Act, 1974) has been enacted to nominated and successfully completed various training provide for preventive detention law to detain smugglers courses. and foreign exchange manipulators from indulging in these prejudicial activities. (L) COFEPOSA The COFEPOSA Wing of Department of During the period since 24th August, 2024 till Revenue is entrusted with the task of effective date, the 10 (Ten) detention orders have been issued by implementation of the COFEPOSA Act, 1974. This wing the Joint Secretary (COFEPOSA) under the COFEPOSA is functioning under the administrative control of Central Act, 1974. 4 (Four) detention orders were confirmed by Economic Intelligence Bureau (CEIB). the Central Government based on the opinion of the During the year 2024-25, preventive detention Advisory Board that there was sufficient cause for orders against 18 persons (from 01.04.2024 to detention. In addition to the above, cases pending in High 30.11.2024) were passed under the COFEPOSA Act, Courts and Supreme Court were attended effectively and 1974 whereas 19 detentions orders were executed close coordination with ASG/Counsels in High Court/ (including the orders of previous years) before Supreme Court was maintained 3 (Three) Counter 30.11.2024. Further, 13 Detention Order were confirmed Affidavits have been filed in Writ Petitions filed by on by the various Advisory Boards constituted under the behalf of detainees in various High Court of India. COFEPOSA Act,1974. 165Annual Report 2024-2025 4.7.4.3 Administration in CEIB. one Additional Director and two Under Secretaries. The Additional Director General (Admn.) is responsible for Administration Wing is responsible for personnel administration of the affairs of the Bureau and exercises and office/general administration, preparation of BE/RE, his powers under the direction and guidance of the implementation of the RTI Act 2005, redressal of public Director General, CEIB. The Sanctioned strength & grievances etc. The Administration Wing is headed by incumbency position of the officers/staff in the Bureau Additional Director General (Admn.) who is assisted by are depicted in the Annexure-A. Annexure-A INCUMBENCY POSITION Central Economic Intelligence Bureau: Staff Strength as on 10.12.2024 Sl. Outsourced Procedure for Sanctioned Present No Designation Pay Level Vacancy staff against filling up the Strength Strength . Vacancy post 1 DG Level-15-17 1 1 - By Headquarters (Group-A) 2 JS(Cofeposa) Level-14 1 - 1 By Headquarter (Group-A) 3 Addl. Director Level-14 2 2 - By Headquarters General(Group-A) 4 Addl. Level-13/12 5 4 1 By Headquarters Director/Jt.Dir. 02 posts (Group-A) encadred to CBIC 02 posts encadred to CBDT 01 post encadred to Central Staffing Scheme. 5. Director/D.S.(CSS) Level-13/12 3 4 +1 By Headquarter (Group-A) 6. US(Group-A) Level-11 4 4 - By Headquarters 7. Deputy Level-11 8 - 8 By Headquarters Director(Group-A) 8. Sr. Stat. GR.-II Level-09 1 0 1 Through (Group-A) deputation(by CEIB) 9. S.O. (Group-B Level-8/10 2 1 1 By Headquarters Gazetted) 10. A.S.O. (Group- Level-7& 4+4 6 2 By Headquarters B)+UDC Level-6 11. Assistant Level-7 20 16 4 Through Director(Group-B) deputation( by CEIB) 12. PSO/Sr. Level-12 1 1 - By Headquarters PPS(Group-A 13. PPS(Group-A) Level-11 4 2 2 30 DEOs By Headquarters 14. PS(Group-B Level-8/10 6 1 5 and out of By Headquarters Gazetted) that around 15. Steno Gr.- Level-7 4 1 3 20 DEOs are By Headquarters C(Group-B) engaged for 16. Steno Gr.- Level-6 3 0 3 recently By Headquarters D(Group-C) launched 17. Investigator(Group- Level-6 2 0 2 NEOR Through C) project for deputation( by digitization CEIB) 18. LDCs(Group-C) Level-2 6 0 6 and By Headquarters voluminous data entry on web-based application. 19. Staff Car Level-4 5 0 5 2 Drivers By Headquarters Driver(Group-C) 20. MTS(Group-C) Level-3 30 11 19 13 MTS By Headquarters Total:- 116 54 62 166Department of Revenue III 4.8 STATE TAXES the Appeals in the current year has been highest so far since establishment of the Appellate Tribunal. GST collection has shown an upward growth year on year basis since its implementation. Total gross GST 4.9.1.4 Further, to provide more ease and flexibility to collection during FY 2024-25 (till Nov. 24) is 14.57 lakh the appellants & respondents, facility of e-filing has been crore, which is 9.33% higher than the collection for the introduced. same period in FY 2023-24. The average monthly gross 4.9.2 Competent Authority under SAFEMA/ NDPSA collection for FY 2024-25 (till Nov. 24) is ?1.82 lakh crore, exceeding the ?1.66 lakh crore collected in the previous 4.9.2.1 The Smugglers and Foreign Exchange year's corresponding period. GST revenue net of refunds Manipulators (Forfeiture of Property Act, 1976 as of November 2024 for the current fiscal year is ?12.91 (SAFEM(FOP)A), provides for forfeiture of illegally lakh crore which is a growth of 9.2% over that for the acquired property of the persons convicted under the Sea same period last year. Overall, the GST revenue figures Customs Act, 1878, the Customs Act, 1962 and the demonstrate continued growth momentum and positive Foreign Exchange Regulation Act, 1947 and Foreign performance. Exchange Regulation Act, 1974 and the persons detained under the Conservation of Foreign Exchange and 4.9 Competent Authority Prevention of Smuggling Activities Act, 1974. The Narcotics Drugs and Psychotropic Substances Act, 1985 4.9.1 The Appellate Tribunal under SAFEMA (NDPSA) provides for tracing, freezing, seizure and 4.9.1.1 The Appellate Tribunal has been constituted forfeiture of illegally acquired property of the persons under the Smugglers and Foreign Exchange Manipulators convicted under that Act or any corresponding law of any (Forfeiture of Property) Act, 1976 (SAFEMA). It started foreign country, and those who are detained under the functioning w.e.f. 03.01.1977. It hears the appeals files Prevention of Illicit Traffic in Narcotic Drugs and against the orders of Competent Authority under SAFEM/ Psychotropic Substances Act, 1988 and Jammu and NDPS Acts, Adjudicating Authority under PMLA, FEMA Kashmir Prevention of Illicit Traffic in Narcotic Drugs and and Prohibition of Benami Property Transactions Act Psychotropic Substances Act, 1988. 1988. 4.9.2.2 SAFEM(FOP) Act and NDPS Act provide for 4.9.1.2 The Appellate Tribunal is located at New Delhi. It appointment of Competent Authorities for carrying out consists of a Chairman (who is, or has been a Judge of forfeiture of illegally acquired properties. At present, the the Supreme Court or Chief Justice of a High Court) and Offices of Competent Authorities are located at Kolkata, four Members. The four members are appointed from Chennai, Delhi, Mumbai and one unit is at Ahmedabad. among the officers of the Central Government who have SAFEM(FOP)A envisages establishment of an appellate held the post of Additional Secretary to the Government forum, namely the Appellate Tribunal to hear the appeals of India or any equivalent or higher post and have filed against the orders of Competent Authority under performed judicial, quasi-judicial or adjudicating function SAFEMA/NDPSA Act. for three years. 4.9.2.3 As per the latest amendments vide the Finance 4.9.1.3 The appeals and allied petitions under the Act 2021 to the Prohibition of Benami Property aforesaid acts are disposed of by the Benches as Transaction Act, 1988, the Competent Authority appointed constituted as the Chairman may deem fit. During the under sub- section (1) of section 5 of the Smuggling and period 01.04.2024 to 30.11.2024, a total of 2141 Appeals Foreign Exchange Manipulators (Forfeiture of Property) (1545 in PMLA, 216 in NDPSA, 01 in SAFEMA, 73 in Act,1976 is the Adjudicating Authority to exercise FEMA and 306 in PBPT) were received during the said jurisdiction, powers and authority conferred by or under period. A total of 1716 appeals (1213 in PMLA, 89 in PBPT Act, 1988. PBPT Act was enacted to prohibit NDPSA, 29 in SAFEMA, 291 in FEMA and 94 in PBPT) benami transactions where any person enters into a were disposed of during the said period. However, with benami transaction in order to defeat the provisions of proper adjudication and change of the roaster and any law or to avoid payment of statutory dues or to avoid benches, all the appeals filed till 2003 were disposed off payment to creditors, the beneficial owners, benamidar reducing the average of appeals drastically. Disposal of and any other person who abets or induces any person 167Annual Report 2024-2025 to enter into such benami transaction, shall be punishable the value of the property involved therein, the number of under the said Act. orders of forfeiture passed and the value of the property involved therein and the value of sale proceeds of the 4.9.2.4 The details regarding the number of reports property disposed of, year-wise, from 2000-01 to 2024- received by the Competent Authorities from enforcement 25 (upto 30.11.2024) are given in as below: agencies, the number of show cause notices issued and 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 value proceeds of received from value of Property of Property involved. Property Enforcement involved. disposed off Agencies (In Rs. lakhs) Number Value (in Rs. Number Value (in 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 2022-2023 36 22 1303.24 21 1170.99 554.21 2023-2024 70 20 550.13 13 975.59 937.95 (01.01.2023- 31.03.2024) 2024-2025 702 22 757 06 314.07 293.13 (01.04.2024- 30.11.2024) 4.10 Customs, Excise & Service Tax Appellate are also decided by the Tribunal. The Tribunal is also Tribunal (CESTAT) having appellate jurisdiction over Anti-Dumping disputes under the Customs Tariff Act and is heard by the special 4.10.1 Functions/ Working of the Organization bench with the President presiding it. Difference of opinion 4.10.1.1 The Customs, Excise and Service Tax among the Members in a Bench is resolved by nominating Appellate Tribunal earlier known as Customs Excise & a Third Member and majority decision. Whenever differing Gold (Control) Appellate Tribunal is a quasi-judicial decisions on a single issue is passed by co-ordinate authority hearing appeals filed against the orders passed Benches of the Tribunal, the matter is referred to a larger by the Commissioners of Customs & Central Excise under bench as constituted by President and a decision the Customs Act, 1962 and Central Excise Act, 1944. rendered by the Larger Bench is binding to all Division Service Tax appeals filed under the Finance Act, 1994 Benches and subordinate adjudicating authorities. 168Department of Revenue III 4.10.1.2The Principal Bench of the Tribunal is situated at 4.10.1.3The Tribunal is headed by the President who is Delhi and the regional benches are situated at Mumbai, a retired Judge of a High Court. There are 16 posts of Kolkata, Chennai, Bangalore, Ahmedabad, Chandigarh, Members (Judicial) and 16 posts of Members (Technical). Allahabad and Hyderabad. Each Bench of the Tribunal At present, all the 32 posts of Members are working in consists of a Judicial Member and a Technical Member. full strength. To expedite the disposal of small cases with financial state 4.10.2 Highlights of the performance and upto Rs. 50,00,000/- ( Fifty Lakh Rupees), wherein no achievements during the year question of rate of duty or valuation is involved, Single Member Bench is constituted. The Tribunal is also the Despite various constraints including several final appellate authority hearing appeals from the orders vacancies of subordinate staff, the appeals are disposed of the Commissioner (Appeals). Appeals from the orders off at consistent pace. A sample statement showing passed by the Tribunal are filed before the Hon'ble institution and disposal of appeals of the current financial Supreme Court on Classification and Valuation issues year is given below: as they have all India ramifications. Total Pendency as on Year Institutions Disposal 30.09.2024 January 2024 to October 2024 9963 17966 73235 4.10.3 Online filing of appeals by the department has 4.10.8 The Tribunal is trying to strictly adhere to the achieved a milestone with adding of separate dashboard provisions of FRBM Act (Fiscal Responsibility & Budget for the respondent and assess to view the status of appeal Management Act). All expenditures are limited to the filed against them. All information is uploaded on the budget allocated for the Tribunal. Whenever a Member website of the Tribunal proactively to ensure transparency is sent on tour, though they are entitled for travel by and integrity in administration. All orders including daily business class flights, the Members are requested to orders of the Tribunal are also uploaded besides real time travel by economy class to which they obliged as part of display of item number taken by the Bench which is austerity measures. In spite of escalation in prices of available both in the website and display boards installed various items/ services and the function of additional in the Tribunal premise. benches, the expenditure is restricted to the granted ceiling. Sincere efforts are being done to control the 4.10.4 The whole north eastern region is placed under expenditure with financial propriety and reasonableness. the jurisdiction of Kolkata Bench. However, the indirect tax litigation from N.E. region is relatively less. 4.10.9 Implementations of the Right to Information Act, 2005 4.10.5 All facilities as required by the Government in respect of weaker sections including differently abled and The Public Information Officer and the Appellate SC/ST are strictly followed and extended to the eligible Authority have been nominated by the Public Authority in candidates/Staff. All Benches of the Tribunal, and they are acting in accordance to the provisions of the Right to Information 4.10.6 All facilities are being extended to female Act, 2005, in dispensing the information. All RTI employees of this Tribunal as per O.M. No.13018/4/2009- applications and orders including orders of the Appellate Estt.(L) dated 08/07/2009 of DOPT. To redress the Authority are uploaded on the website. grievances of women, an internal complaint committee under the chairperson Hon'ble Rachna Gupta, Member 4.11 Authority for Advance Ruling Division (J), CESTAT, has been constituted. So far, no complaint 4.11.1 Customs, Central Excise & Service Tax has been received by the committee. Settlement Commission 4.10.7 The dynamic website of the Tribunal started in A. 4.11.1.1Highlights of the Performance and January 2017 has been shut down due to its vulnerability. achievements of the Commission during Financial A new website using added security features has been Year 2024-25 is given below: developed by the NIC which is catering to growing needs of the litigant public. Cause lists are uploaded on weekly No. of application No. of application Duty Settled basis and daily orders are uploaded on daily basis. Final received disposed (Rs. In crores) orders are uploaded as soon as they are signed by the Members. All information concerning the Tribunal are 89 79 398* available as required by DOPT O.M. No. 1/6/2011 dated 15/04/2013. Steps for online filing of appeals by the * includes Penalty and Interest Amount Settled assesse has been undertaken by the NIC. 169Annual Report 2024-2025 4.11.1.2 Function & Working of the Organization. The Settlement Commission has been set up to expedite recovery of Customs, Central Excise & Service The Central Government have constituted the tax revenue locked up in adjudication proceedings. It offers Customs & Central Excise Settlement Commission under a onetime opportunity to tax payers to make a true and full Section 32 of the Central Excise Act, 1944 vide disclosure of their liabilities. Settlement Commission has Notification No. 40/99-CX(NT) dated 09.06.99 and 41/ also been empowered to grant immunities from penalty 99-CX(NT). The Commission consists of the Principal and prosecution, thus offering an opportunity to tax payers Bench presided over by the Chairman at New Delhi and to settle the disputes expeditiously. 3 Additional Benches at Chennai, Mumbai and Kolkata At present there is only 1 member available in Presided over by Vice Chairman with 2 Members in each the Commission and the quorum of the bench is Bench. The Commission functions under the Department incomplete since 26.10.2024, after retirement of Shri of Revenue in the Ministry of Finance. Sandeep Kumar, Chairman. 4.11.1.3 Year-Wise Performance/achievements of the Settlement Commission: No. of Disposal Application No. of No. of Application Duty Settled Received Year Application Settled Rejected (Rs. In Lakhs.) 1999-2000 3 1 2000-01 327 28 146 2128.00 2001-02 559 63 153 2664.00 2002-03 656 105 365 18751.00 2003-04 753 141 431 11404.00 2004-05 1273 205 1143 18125.00 2005-06 1587 283 1207 12909.00 2006-07 1960 219 1434 23902.00 2007-08 1596 369 2274 50792.00 2008-09 857 124 569 12543.00 2009-10 723 68 599 6736.00 2010-11 885 103 770 11433.00 2011-12 959 247 702 46248.00 2012-13 1610 74 934 19806.00 2013-14 1623 156 1680 48299.00 2014-15 1525 353 1469 74332.00 2015-16 1262 208 1154 65431.00 2016-17 844 174 814 103713.00 2017-18 618 119 555 51422.00* 2018-19 557 84 429 65937.00* 2019-20 316 50 345 36161.61* 2020-21 208 21 127 19189.19* 2021-22 194 16** 6 539.59* 2022-23 157 40** 44 3215.05* 2023-24 186 42 298 42370.96* 2024-25 89 9 79 39770.28 Total 21,327 3,302 17,727 7,87,821.68 *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. Note: No quorum is available in the Settlement Commission since 26.10.2024 170Department of Revenue III 4.11.2 National Institute of Public Finance and Policy Collectors (now called Commissioners), were concerned, (NIPFP) the same were required to be filed before the appellate Collectors of Customs & Central Excise. 4.11.2.1The NIPFP is a premier research organization for conducting research, policy advocacy, and capacity 4.12.1.2 The erstwhile Section 131 of the Customs building activities in the field of public finance and policy. Act, 1962 and Section 36 of the Central Excise & Salt Established in 1976 as an autonomous institution under Act, 1944, empowered the Central Government to revise the Societies Registration Act, 1860, the Institute has the orders passed by the CBEC and appellate Collectors made significant contributions to policy reforms at all in exercise of their appellate jurisdiction. At the levels of Government of India. The NIPFP provides Government level, the Secretary (Revenue) or Special research, engages in policy advocacy and capacity Secretary decided upon Revision Applications against building on public finance & policy. orders passed by the CBEC, and the Additional Secretary or Joint Secretary dealt with the applications against the 4.11.2.2The 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 Collector of Customs and Governor of RBI, is the Chairman of the Governing Body. Central Excise. Government is represented by the Secretary (Revenue), Secretary (Economic Affairs), and Chief Economic 4.12.1.3 The Finance (No.2) Act, 1980 introduced a Adviser of the Ministry of Finance. There are three new system by establishing the Appellate Tribunal. The eminent Economists and representatives of FICCI and appellate jurisdiction of CBEC and Revisionary jurisdiction ASSOCHAM on the Governing Body. of the Central Government were abolished w.e.f. 11.10.1982, except a few residual transitional provisions There is an Academic Committee advising the and the Customs, Excise and Gold Appellate Tribunal Director. (then known as CEGAT, but now commonly known as 4.11.2.3Initiatives taken with reference to the CESTAT) was set up w.e.f. 11.10.1982. development of North-Eastern Region and Sikkim 4.12.1.4 The Finance Act, 1984, revived the including projects/schemes in operation and actual Revisionary powers of the Central Government in expenditure thereon: specified type of cases. On the Customs side, Section NIPFP has undertaken the following projects of 129DD read with proviso to Section 129(A) of the Act, NER and Sikkim: empowered Central Government to revise the appellate orders passed by the Commissioner of Customs a) For the Government of Sikkim- NIPFP is doing (Appeals). On Central Excise side, Section 35 EE read study on Preparation of Medium-Term Fiscal Plan with first proviso to sub-section (ii) of Section 35B of the (MTFP) for the period 2024-25. Central Excise Act, 1944 gave review and revisionary powers to Central Government to revise the orders b) For the Government of Tripura - NIPFP is doing passed by the Commissioner of Central Excise (Appeals). study on Preparation of Report on Study Undertaken on State PSUs of Tripura 4.12.1.5.1 Since inception there was only one Revision Application Unit having its office at Delhi which was For the Government of Assam - NIPFP is doing headed by the Joint Secretary (Revision Application), study on Possible Ways to Enhance Revenue Generation Department of Revenue, New Delhi. The revisionary for the State of Assam. powers of the Central Government were being exercised 4.11.2.4Initiatives relating to Gender Budgeting and by a Joint Secretary, in the Department of Revenue, Empowerment of Women Headquarters (being a technical post under IRS (C & CE), till July, 2017. NIPFP has undertaken research in the topic and conducted policy dialogue at national and international 4.12.1.5.2 In March, 2016, the Hon'ble Punjab and fora including UN organizations. Haryana High Court, in the matter of NVR Forgings vs. Union of India {2016 (335) ELT 679}, held that a 4.12 Revision Application Unit revisionary order passed by the Joint Secretary, who is in 4.12.1 Historical Background of Revision the same rank as the Commissioner (Appeals), cannot Application: be sustained. This order of the Hon'ble Punjab and Haryana High Court has been upheld by the Hon'ble 4.12.1.1 Under the scheme operative till Supreme Court as reported in 2017 (348) ELT A-82. The 10.10.1982, the appeal against the orders of Hon'ble Madras High Court and Hon'ble Gujarat High Commissioners (then called Collectors), of Customs & Court have also taken a similar view in the matter. Central Excise lay with the Central Board of Excise & Therefore, the post of Revisionary Authority was Customs (now CBIC). As far as the appeals against the upgraded. orders passed by the authorities below the rank of the 171Annual Report 2024-2025 4.12.1.5.3 Pursuant to the aforesaid judgment of the A. Customs Cases:- Hon'ble High Court, sanction of the competent authority (Specified in the first proviso to sub-section (1) to Section was accorded for temporary up-gradation of an existing 129A of the Customs Act, 1962) post of Joint Secretary and the newly created post of Director in Revision Application Unit, to the level of 4.12.2.3 Section 129DD read with proviso to Section Additional Secretary, as technical posts, and, 129 A(1) of Customs Act, 1962 empowered the Central consequently, two posts of Principal Commissioner, were Government to revise or review the appellate orders reduced from the cadre strength of IRS (C&CE), vide passed by Commissioner of Customs (Appeals), if such Department of Revenue's Sanction Order No. 160/2017 order related to:- dated 19.07.2017. Pursuant thereto, one post of AS (RA) i) any goods imported or exported as baggage; each was created at New Delhi and Mumbai, vide the Department of Revenue's Office Order No. 202/2017 (ii) any goods loaded in a conveyance for importation dated 20.07.2017. into India, but which are not unloaded at their place of destination in India, or so much of the 4.12.1.5.4 At present, there are two Revision quantity of such goods as has not been unloaded Application Units, situated at Delhi and Mumbai which at any such destination if goods unloaded at such deal with the Revision Applications filed before Central destination are short of the quantity required to Government in the above specified matters as per the be unloaded at that destination. specified geographical jurisdiction. These Revision Application Units are presently headed by the Principal (iii) payment of drawback as provided in Chapter X Commissioner (Revision Application) and ex-officio of the Customs Act, 1962, and the rules made Additional Secretary to the Government of India who thereunder. consider and decide the revision applications after B. Central Excise Cases:- following the due process of law. (Specified in proviso to sub-section (1) to Section 35B of 4.12.1.5.5 The work has been distributed between the Central Excise Act, 1944) two Revisionary Authorities on geographical basis i.e., the work relating to North, East and south Zones are 4.12.2.4 Section 35EE read with proviso to Section handled in RA-Unit, New Delhi while that relating to West 35B(1) of the Central Excise Act, 1944 empowered the is handled in RA Unit, Mumbai. The arrangement was Central Government to annul or modify the appellate modified in 2022 vide order No. 191/2022, dated orders passed by Commissioner of Central Excise 28.07.2022, the cases pertaining to the South Zone were (Appeals), if such orders relate to:- reallocated to RA Unit New Delhi with an objective to (a) a case of loss of goods, where the loss occurs in equitably distribute the pending applications for faster transit from a factory to a warehouse or to another disposal. factory, or from one warehouse to another, or 4.12.2 Formation, function and working of the during the course of processing of the goods in Revision Application Unit a warehouse or in storage, whether in a factory or in a warehouse; Introduction: (b) a rebate of duty of excise on goods exported to 4.12.2.1 The Revision Application Unit of the any country or territory outside India or on Department of Revenue, Ministry of Finance, Government excisable materials used in the manufacture of of India deals with the Revision Applications filed before goods which are exported to any country or Central Government in specified Customs and Central territory outside India; Excise matters under section 35 EE of Central Excise (c) goods exported outside India (except to Nepal Act, 1944 and section 129 DD of Customs Act, 1962. or Bhutan) without payment of duty; The revision applications filed either by parties or department against the orders of Commissioners of (d)* credit of any duty allowed to be utilized towards Customs, Central Excise and Service Tax (Appeals) are payment of excise duty on final products under considered and decided by Additional Secretary (RA) after the provisions of the Central Excise Act or the following the due process of law. rules made thereunder and such order is passed by the Commissioner (Appeals) on or after the 4.12.2.2 Normally, against the order passed by the date appointed under Section 109 of the Finance Commissioner (Appeals), the appeal lies before Tribunal (No.2) Act, 1998. i.e. CESTAT, but in following categories of cases, against the order passed by the Commissioner (Appeals), the Note: *indicates that this clause has not yet come into Revision Application is filed before the Additional force as it is to be effective on or after the date to be Secretary (Revision Application) (hereinafter also referred appointed under section 109 of the Finance Act, 1998 to as AS(RA):- and no such date has been notified so far. 172Department of Revenue III C. Service Tax matters:- c) No case of Revision Application can be filed against the order passed by the Commissioner 4.12.2.5 The provisions of the Section 35EE of or Principal Commissioner even though such the Central Excise Act, 1944, which deals with revision order is on the same subject as specified above. by the Central Government, has been made applicable The appeal against such orders lies before to the Chapter V of the Finance Act, 1994 dealing with CESTAT, not before the Principal Commissioner Service Tax. In the Finance Act, 2015, the Section 86 (RA) and ex-officio Additional Secretary to the has been amended to prescribe that remedy against the Government of India. The application to order passed by Commissioner (Appeals), in a matter Revisionary Authority lies only against the order involving rebate of Service Tax, shall lie in terms of section of Commissioner (Appeals) involving the subjects 35EE of the Central Excise Act, 1944. Further, it has also specified above. been provided that all appeals relating to rebate of service d) The Revisionary Authority has discretion to refuse tax and filed in Tribunal after the date the Finance Act, to admit an application in respect of order if the 2012 came into effect and pending on the date of assent amount of duty or fine or penalty determined by of the Finance Bill, 2015 by the President (i.e. 14.05.2015) such order does not exceed five thousand shall be transferred and dealt in accordance with section rupees. 35EE of the Central Excise Act. In other words, in such cases, against the order passed by the Commissioner 4.12.3.2 Time limit for filing of a Revision (Appeals), the revision applications are required to be Application:- filed before the AS(RA). a) A Revision Application should be filed within three 4.12.2.6 The text of two provisos inserted in sub- months from the date of the communication to section (1) of Section 86 of the Finance Act, 1994 vide the applicant of the order of the Commissioner section 117 of the Finance Act, 2015 (with effect from (Appeals) against which the application is being 14.05.2015), are as under: made. "Provided that where an order, relating to a b) If the Central Government is satisfied that the service which is exported, has been passed under section applicant was prevented by sufficient cause from 85 and the matter relates to grant of rebate of service tax presenting the application within the aforesaid on input services, or rebate of duty paid on inputs, used period of three months, it may allow it to be in providing such service, such order shall be dealt with presented within further period of three months. in accordance with the provisions of Section 35EE of the Thus, the Revisionary Authority has power to Central Excise Act, 1944; Provided further that all appeals condone the delay upto three months in filed before the Appellate Tribunal in respect of matters deserving cases. covered under the first proviso, after the coming into force 4.12.3.3 Filing of Revision Application:- of the Finance Act, 2012, and pending before it up to the date on which the Finance Bill, 2015 receives the assent a) Sub-section (3) of 129DD of the Customs Act, of the President, shall be transferred and dealt with in 1962 and Section 35EE of the Central Excise accordance with the provisions of Section 35EE of the Act, 1944 stipulates that a Revision Application Central Excise Act, 1944." (by the parties) shall be in such form and shall be verified in such manner as may be specified 4.12.3.1 Procedure for filing Revision Application by rules made in this behalf and shall be a) The aggrieved party can file a revision application accompanied by a fee of two hundred rupees under sub-section (1) of Section 129DD of the where duty and interest demanded and fine or Customs Act, 1962 and under Section 35EE of penalty in the case to which application relates the Central Excise Act, 1944 for annulment or is one lakh rupees or one thousand rupees where modification of the orders of the Commissioner duty and interest demanded and fine or penalty in the case to which application relates is more (Appeals). that one lakh rupees. No such fees shall be b) If the Commissioner of Customs or Principal payable in case of application filed by Commissioner of Customs is of opinion that order Department. passed by the Commissioner (Appeals) is not b) The form and manner for filing of revision legal and proper, then he may direct the proper application before the revisionary authority has officer to make an application on his behalf to been provided in Customs (Appeals) Rules, 1982 the Central Government for revision of such (Notification No. 212-Customs dated 10th of order. Thus, the Department files application to the Revisionary Authority under sub-section (1A) September 1982)/Central Excise (Appeals) of Section 129DD of the Customs Act, 1962 and Rules, 2001 (Notification No. 32-CE dated Section 35EE of the Central Excise Act, 1944. 21.06.2001). As per Rules 8A and 8B of Customs 173Annual Report 2024-2025 (Appeals) Rules 1982, the revision application (iii) The Government i.e. AS(RA) may refuse to should be filed in prescribed Form CA-8 and as admit an application in respect of order per sub-rule (2) of Rule 3 Central Excise (Appeals) where the amount of duty or fine or penalty Rules, 2001 the revision application should be determined by such order does not exceed filed in prescribed Form EA-8 in duplicate five thousand rupees. alongwith equal number of copies of order passed 4.12.5 Procedure adopted for process of Revision by the Commissioner of Customs (Appeals) and Application in RA Unit: relevant decision or order passed by the Customs officer and presented either in person to the Under  The Revision Application Unit receives the Secretary Revision Application Unit, Government revision application in prescribed from EA-8/CA- of India, Ministry of Finance, Department of 8 filed by department as well as parties. Revenue, New Delhi or sent by registered post The stipulated time for filing such applications is  addressed to such officer. three months from the date of communication or order-in-appeal. The delay upto three months can c) As per Appeals Rules, the ground of appeal and be condoned by Central Government in form of verification in application form shall be deserving cases. signed by the applicant or his authorized representative.  The revision application Unit on receipt of revision applications issues the acknowledgement to the d) The Central Government on its motion can annul applicant alongwith deficiency memo in or modify any order referred to in sub-section documents if any. (1) to Section 129DD Customs Act, 1962 and Notice is issued to respondent party for filing Section 35EE of the Central Excise Act, 1944.  counter reply. Thereafter, personal hearing is e) No order enhancing any penalty or fine can be fixed/held in cases, in the order of seniority, on passed by the Revisionary Authority in any case first come first serve basis. in which an order passed by the Commissioner Out of turn hearings are allowed only in deserving  (Appeals) has enhanced any penalty or fine in cases involving substantial revenue, recurring issue lieu of confiscation. In other case, no order for resulting into multiplicity of cases, interest liability, enhancing any penalty or fine can be passed by the issue is no longer res integra, passenger is the Revisionary Authority unless the person going abroad and cases of financial hardship. affected by the proposed order has been given After completion of hearing, final revision order notice to show cause against it within one year  is issued by AS(RA). from the date of the order sought to be annulled or modified. 4.12.6 Appeal against Revision Order passed by Additional Secretary (RA): f) Where the Central Government is of opinion that a) The Revisionary Authority while passing the any duty of Customs/Central Excise/Service Tax Revision Orders on behalf of Central Government has not been levied or has been short-levied, no follows the due process of law. There is no order levying or enhancing the duty shall be stipulation of the appellate authority against the made under this section unless the person order passed by the Revisionary Authority. affected by the proposed order is given notice to show cause against it within the time limit b) The Central Government is the highest authority specified in Section 28/Section 11A. in these revision applications, and therefore orders passed by Central Government are final. 4.12.4 Conditions to be fulfilled for filing Revision However, the applicants, aggrieved with the Application before AS(RA): orders of Revisionary Authority have only option of writ petitions before the High Court under a. The following are the essential conditions, which Article 226 of Constitution of India. need to be fulfilled, before filing appeal before Joint Secretary (RA):- c) The Revisionary Authority becomes functus officio after passing the final Revision Orders. It (i) The order, which is being appealed against, is Jurisdictional Commissioner which contests should be passed by the Commissioner writ petitions in the High Court or files writ petition (appeals) and should be relating to issue/ in the High Court. issues mentioned above. 4.12.7 The Revision Application Unit is directly (ii) If, on the same subject as specified above, responsible to Revenue Secretary. the order has been passed by the 4.12.8 Performance Commissioner of Customs/Central Excise, From April, 2023 to October, 2024, 523 Revision then appeal against such orders shall lie to Applications have been disposed of by R.A. Delhi Unit. CESTAT and not before AS(RA). 174Department of Revenue III 5. Integrated Financial Unit (IFU) (COM), D/o Revenue which oversees the functioning of Government Opium & Alkaloid Integrated Finance Division of the Department of Works (GOAWs). Revenue is under the direct supervision of Additional Secretary & Financial Advisor (Finance). There are three (g) Grants-in-aid to National Institute of Public Finance units dealing with budget, finance and expenditure & Policy and Central Revenue Sports & Cultural management in respect of the grants pertaining to Board. Department of Revenue, Direct Taxes and Indirect Taxes. (h) Proposals for Delegated Investment Board (DIB), Director (Finance), D/o Revenue/CBIC and Director Public Investment Board and Cabinet Committee (Finance), Direct Taxes assist the Additional Secretary & on Economic Affairs (CCEA) relating to Financial Advisor (Finance). comprehensive computerization plan of CBDT/ 5.1 Activities undertaken by the Integrated CBIC, capital expenditure involving construction Finance Unit: of office/residential complexes and readymade office/residential buildings of all the three All offices under the Department of Revenue, Departments. which inter-alia include Revenue headquarters, Central Board of Direct Taxes (CBDT) including its field offices Proposals received for sanction of financial and various Directorates, Central Board of Indirect Taxes assistance from the Customs & Central Excise & Customs (CBIC) including its field offices and various Welfare Fund and Special Equipment Fund. Directorates, Narcotics Control Division, Central Bureau Revision of norms were finalized in respect of of Narcotics, Chief Controller of Factories, Central setting up of/refurbishing of recreation/sports Economic Intelligence Bureau, Financial Intelligence Unit clubs, gymnasiums, Departmental Canteens, (FIU-IND), Goods & Service Tax Council Secretariat, Tax crèches for children of Departmental officials, Policy Research Unit, Enforcement Directorate, Customs, guest houses and cash award scheme for Excise & Service Tax Appellate Tribunal (CESTAT), meritorious children with special emphasis on girl Settlement Commission (IT/WT), Authority for Advance children and children of group 'D' staff. Rulings, Appellate Tribunal for Forfeited Property, (j) Schemes proposed by CBDT/CBIC for utilizing Adjudicating Authority under PMLA, Income Tax the budget provision under 1% Incremental Ombudsman etc. are serviced by the three units of Revenue Incentive Scheme for obtaining approvals Integrated Finance Division in terms of Budget formulation, of the competent authority. fund allocation, expenditure monitoring & control, enforcing economy, scrutiny and sanction of expenditure proposals (k) Proposals involving relaxation/interpretation of beyond the delegated powers of field offices. financial rules and all proposals requiring reference to the Department of Expenditure. 5.2 Details of expenditure and financial proposals scrutinized and approved: (l) The Integrated Finance Division has also been entrusted with the formulation of schemes of (a) Creation and continuation of posts, construction/ important expenditure proposals from their initial purchase/hiring of offices, as well as residential stage. accommodation for the field formations of Central Board of Indirect Taxes & Customs and Central 5.3 The expenditure budget/non-tax revenue Board of Direct Taxes, Department of Revenue receipts of Department of Revenue, Direct and its attached offices. Taxes and Indirect Taxes for BE 2024-25 was prepared. Tentative RE 2024-25 and BE 2025- (b) Procurement of goods and services including 26 ceiling has been communicated by the procurement of anti-smuggling equipment i.e. Budget Division, Department of Economic scanners and marine vessels. Affairs. The details of RE 2024-25 and actual (c) Proposals for deputation/tours/training abroad of expenditure till 30.11.2024 and BE 2025-26 in officers of the Department, CBDT, CBIC and their respect of all the three grants are as below: field offices. (Rs. in crore) (d) Restructuring proposals, redeployment of Grant Gr. 2024-25 Actual 2024-25 2025-26 personnel in field formations and constituent units. No. Expenditure till 30 (e) Comprehensive Computerization of Department November, of Revenue, its field formation including Customs 2024 BE RE BE and GST formations and Income Tax field D/o Revenue 35 165586.01 71762.08 122202.88 158878.85 formations. Direct Taxes 36 10340.38 6965.35 11575.17 10900.45 (f) Proposals from Committee of Management Indirect Taxes 37 41098.48 23223.94 40752.16 42889.33 175Annual Report 2024-2025 5.4 Integrated Finance Division has taken the accommodation; Strengthening of IT capability following steps/initiatives in 2024-25: for e-governance of CBIC, CBDT and Department of Revenue; Acquisition of ships and fleets to (i) Preparation and submission of BE/RE and DDG strengthen Marine capability & Acquisition of Anti- in respect of Grant No. 35(Department of Smuggling equipment. Revenue), Grant No. 36 (Direct Taxes) and Grant No. 37 (Indirect Taxes). 6. Implementation of Official Language Policy (ii) Follow up with the Department/Boards for the settlement of audit objections, inspection reports, 6.1 Implementation of official language policy draft audit paras and reports of PAC/Standing There is a full-fledged Official Language Division Committee and submission of replies to Audit under the Revenue Department which is entrusted with Paras, Standing Committee of Finance, periodic the implementation of the Official Language Policy of the reports etc. Government of India. There is a post of Director (Official (iii) Allocation and monitoring of the budget relating Language) in this division and this division functions to advances, viz. House Building Advance, through four Hindi sections. Each section is headed by Computer Advance etc. an Assistant Director (Official Language) and supervised by two posts of Deputy Director (Official Language). At (iv) Overall supervision of budgetary mechanism of present, two posts of Assistant Director (OL), five posts various scrip-based schemes and liasioning with of Senior Translation Officer and one post of Junior Department of Revenue, Department of Commerce Translation Officer are vacant. and Department of Textiles for operation/ provisioning of funds for these schemes. This division carried out work related to the implementation of the official language policy of the Union (v) Implementation of Cash Management Plan as per and timely follow-up action was taken on the orders and Monthly Expenditure Plan (MEP) and Quarterly instructions issued from time to time by the Official Expenditure Allocations (QEA) as envisaged by Language Department. The complete translation work of Budget Division of Department of Economic the department from English to Hindi and from Hindi to Affairs, Ministry of Finance. English was also ensured by the Official Language (vi) Review of Monthly and Quarterly Expenditure vis- Division. à-vis budgetary allocations and MEP/QEA and Revenue Department is a notified office under Rule report to Revenue Secretary and Expenditure 10(4) of the Official Language Rules, 1976. Secretary in compliance of the guidelines of the 6.2 Performance of Official Language Division Department of Expenditure, Ministry of Finance during the year 2024 (1April to 30 November for strict financial discipline. 2024) (vii) Review of specific activities/developments of a. All documents related to the Central Board of Department of Revenue and report to Secretary Excise and Customs, Central Board of Direct (Expenditure) on monthly basis. Taxes and Revenue Headquarters were issued in bilingual form under Section 3 (3) of the Official (viii) Enforcement of instructions on economy in Language Act, 1963; expenditure by periodic review of expenditure and advisories to spending authorities for expenditure b. All gazette notifications, answers to parliamentary control in line with the economy instructions questions and assurances related to the Central issued by the Department of Expenditure. Board of Excise and Customs, Central Board of Direct Taxes and Revenue Headquarters were (ix) Preparation and budgetary allocation for made available in bilingual form; Compensation to States/UTs for revenue loss on roll out of GST; Government Opium & Alkaloid c. Cabinet Notes to the Cabinet, Action Taken Report Works; Acquisition of residential and office (ATR) on the Report of the Comptroller and Auditor 176Department of Revenue III General, Annual Report of the Ministry of Finance Committee. Senior officers and translation officers of the and Outcome Budget were translated into Hindi Rajbhasha Division provided important support in the and made available in bilingual form; successful inspection of these offices. d. Agreements signed with many countries to 6.5 Departmental inspection related to official prevent double taxation were also translated into language Hindi; To take stock of the progress made in the use of e. Timely circulated all orders and circulars related Hindi in the offices during the period under report, 12 to Official Language implementation from the subordinate offices situated in Delhi NCR under the control Department of Official Language to the Revenue of the Revenue Department Headquarter were inspected Department (HQ) and the offices under the control by the officers of the Rajbhasha Division and thereafter of both the Boards, received suggestions were also given to increase the use of Hindi in government work. f. Detention orders issued by the COFEPOSA section and their reasons were translated into 6.6 Hindi Diwas / Hindi Fortnight Hindi. As per the instructions of the Department of Official g. The letters received under the Right to Information Language, Ministry of Home Affairs, this year's Hindi Day celebration was organized mainly at Bharat Mandpam, Act, 2005 were made available in bilingual form. Pragati Maidan, New Delhi under the chairmanship of 6.3 Meetings of Hindi Advisory Committee and Honourable Minister of Home Affairs, Shri Amit Shah on Official Language Implementation 14-15 September, 2024. Officers and personnel of the Committee Rajbhasha Division of the Revenue Department as well as Hindi Advisory Committees have been set up in other officials of the department also participated in this Ministries/Departments of the Government of India to function. advise on the smooth implementation of the Official Hindi Fortnight, 2024 was successfully organized Language Policy of the Government of India. These in the Revenue Department from 14 September to 30 Committees are headed by the Minister of the concerned September 2024. During this period, a total of 14 Ministry/Department and are required to be constituted in competitions were organized with the aim of increasing accordance with the guidelines framed on the the use of the Official Language Hindi. recommendation of the Central Hindi Committee (whose During the fortnight, various competitions like Chairman is the Prime Minister). noting and drafting, essay writing, extempore speech, quiz For this purpose, the process of reorganizing the competition, Hindi typing and Hindi dictation were Joint Hindi Advisory Committee of the Department of organised. During the Hindi Fortnight, separate incentive Revenue, Department of Expenditure, Department of schemes were organised for Gazetted Officers, Hindi Investment and Public Asset Management and the Office speaking and Non-Hindi speaking Gazetted Officers and of the Comptroller and Auditor General of India under the Non-Gazetted Officers to do more and more work in Hindi. Ministry of Finance has been initiated. After the The participants securing first, second and third positions reorganization process is completed, the meeting of the in each competition received cash prizes each of Rs 5000/ Joint Hindi Advisory Committee will be held on a regular - (first prize), Rs 3000/- (second prize), Rs 2000/- (third basis. prize) and three incentive awards of Rs 1000/- in each 6.4 Inspection by Parliamentary Official competition are also given. Language Committee 6.7 Cash Prize Incentive Scheme to encourage Official language related inspection of 5 original noting/ drafting in Hindi subordinate offices of the Revenue Department was As per the instructions of the Department of Official conducted by the Parliamentary Official Language Language, incentive award schemes (full time) were 177Annual Report 2024-2025 implemented by all the ministries/departments/attached/ 6.10 Circulation of the annual program issued by subordinate offices every year for their officers and the Department of Official Language, Ministry employees for doing official work (noting/drafting) in Hindi of Home Affairs and for dictation given by the officers in Hindi. The copies of the Annual Program 2024-25 by Under this scheme, five applications were received the Department of Official Language, Ministry of Home from the sections located in the Revenue Department Affairs, New Delhi were circulated in all the offices under (Headquarters), out of which 4 officers/employees were the Revenue Department and all the sections of the awarded. Revenue Department Headquarters. This Program is released every year in which targets are set for the 6.8 Organization of meetings of the Official promotion of Hindi. Language Implementation Committee 7. Right to Information Act, 2005 To ensure effective implementation of the Official Language Policy of the Government of India and to review The following steps were taken to facilitate its implementation and to remove the difficulties faced by dissemination of information under the provisions of the the Sections/Subordinate Offices regarding the progressive Right to Information Act in Revenue Headquarters: use of the Official Language Hindi, a meeting of the Official (i) To facilitate contactless and paperless filing of Language Implementation Committee constituted under RTI Applications/Appeals, the RTI online portal the chairmanship of the Joint Secretary is held every (www.rtionline.gov.in) has been very convenient in quarter in accordance with the instructions of the Ministry this regard. The replies to the RTI Application and of Home Affairs. Following are the details of the meetings Appeals are uploaded on the portal which may of the Departmental Official Language Implementation be viewed exclusively by the Applicant/Appellant. Committee held this year:- To make system of transfer of offline RTI Application to other Public Authorities are lodged a) The Quarterly Meeting was held on 14.05.2024 on the RTI Request and Appeal Management under the chairmanship of Additional Secretary Information System so that it can be transferred (Revenue). immediately to the concerned Public Authority. b) The Quarterly Meeting was held on 21.08.2024 (ii) The Department continued efforts towards to bring under the chairmanship of Additional Secretary transparency and effective governance, we have (Revenue). placed information in the public domain on a The minutes of the said meetings were issued to proactive disclosure basis which is available on all sections for compliance. the Department's web site (https://dor.gov.in/rti/ 6.9 Official language workshop organized in revenue-headquters) as required under section Revenue Department 4(1) of the RTI Act. During 1 April to 30 November, 2024, 02 (Two) (iii) In regards to the transparency audit which is Hindi workshops were organized for the officers and carried out each year, the self-appraisal form employees of Revenue Department Headquarters and CBIC submitted has been audited by the National and CBDT Boards. In these workshops regarding how to Institute of Public Finance & Policy. The CIC after use E-Office in implementation of government work and perusal of the audit report has issued an advisory Information about the easy and simple use of the Official to the Revenue Headquarters which is under Language in administrative work. consideration. 178Department of Revenue III (iv) The following table indicates the number of online financial year 2024 from 01.04.2024 up to RTI Applications and Appeals received in the 31.12.2024: Type No. of Applications No. of cases Request Request/ Pending received during the transferred to other rejected Appeals year 2023-2024 PAs u/s 6(3) + accepted including the cases returned to the transferred to other Applicant Public Authorities Offline RTI 83 69 0 14 0 Applications Online RTI 5266 4720 172 296 73 Applications Offline 12 0 0 12 0 Appeals Online 100 56 0 41 3 Appeals Total fee received u/s 7(1) is 1620/- Additional fee received offline u/s 7(3) is Rs. 1100/- 8. Swachh Bharat Campaign resulting in freeing up of office space. It has also resulted in earning of Rs. 1,89,100/- as revenue The Department of Revenue (DoR) has for the department. successfully conducted the Special Campaign 4.0 in all the offices under it. The Department had set various targets In addition of the above, under the 'Ek Ped Maa in the 'Preparatory Phase' of Special Campaign 4.0. In ke Naam' campaign, DoR planted saplings in DoR and its the 'Execution Phase' from 2nd - 31st Oct. 2024, DoR attached offices. made all out efforts to achieve the targets in all major In another big initiative, e-Court solution was items of work viz., VIP references, Public Grievances, launched in different Authorities under the Department of review & weeding out of files, among others. Revenue, viz. Appellate Tribunal (SAFEMA), Adjudicating Authority (PMLA) and Competent Authority & All officers in DoR put in extra efforts and ensured Administrator located at Delhi, Mumbai, Chennai and 100% achievement of targets during the campaign. The Kolkata. stress was on to institutionalise Swachhta (cleanliness) in workplace and surroundings. The implementation of e-courts solution would result in enhanced efficiency in case management There has been significant progress under the procedures, and will enable paper-less filing, listing, campaign upto 30.10.2024, as detailed below:- scheduling, hearing and judgement. It will also facilitate  1003 Public Grievances out of a target of 1003 parties to the case to access case information, file Public Grievances have been disposed petitions and documents electronically and get justice even without any physical attendance in these courts.  15 VIP references against the target of 15 VIP references have been disposed It will also help to achieve a simplified, responsive, effective, accountable and transparent working in  315 e-files out of a target of 315 e-files have been Government Authorities. closed after review The DoR remains committed to take forward the  1,646 physical files (100%) have been weeded steps taken during the SCDPM 4.0 throughout the year out after reviewing to ensure efficiency in disposal of work, cleanliness of the  Old dilapidated furniture/fixtures, other waste/ office and public premises and making a positive impact Scrap items and e-wastes have been disposed of on the environment. 179Annual Report 2024-2025 180 I - eruxennA sCBO/sTS/sCS fo noitatneserpeR )TDBC( sexaT tceriD fo draoB lartneC :noitazinagrO no sa 3202 )ESC( noitanimaxE secivreS liviC hguorht detceles setadidnac eht ot TDBC yb deussi neeb evah ’stnemtnioppA fo reffo‘ 581 * .evoba 5 ot 2 nmuloc ni dedulcni ton era srebmun esehT .ssecorp rednu si ’tnemtnioppA fo reffO‘ 10 .4202.11.62 neeb sah 3202 dna 2202 sraey ycnacav eht rof TICA fo edarg eht ni )03 :TS ;83 :CS .lcni( seicnacav 073 pu gnilif rof lasoporp A ** .detiawa si CPD fo etaD .4202.80.80 no CSPU eht ni dettimbusDepartment of Revenue III 181 I - eruxennA )CIBC( smotsuC dma sexaT tceridnI fo draoB lartneC :noitazinagrO )4202.10.10 no sA( II MRH htiw elbaliava ton si 7905 fo tuo 475 fo sutats DWP dna yrogetaC *Annual Report 2024-2025 182 I - eruxennA retrauQ daeH euneveR :noitazinagrODepartment of Revenue III 183 I - eruxennA )DNI-UIF( tinU ecnegilletnI laicnaniF :noitazinagrO )4202 ,hcraM 13 ot pU( )’C‘ puorG( STM 50 fo stsop rof tpecxe ylno noitatuped si tnemtnioppa fo edom ehT :etoNAnnual Report 2024-2025 184 I - eruxennA AMEFAS rednu lanubirT etalleppA ehT :noitazinagrODepartment of Revenue III 185 I - eruxennA ytreporP deriuqcA yllagelli fo erutiefroF rof ytirohtuA tnetepmoC :noitazinagrOAnnual Report 2024-2025 186 I - eruxennA )TATSEC( lanubirT etalleppA xaT ecivreS & esicxE ,smotsuC :noitazinagrODepartment of Revenue III 187 I - eruxennA noissimmoC tnemeltteS xaT ecivreS & esicxE lartneC ,smotsuC :noitazinagrOAnnual Report 2024-2025 188 I - eruxennA scitocraN fo uaeruB lartneC :noitazinagrO seirotcaF fo rellortnoC feihC :noitazinagrODepartment of Revenue III 189 I - eruxennA tnemecrofnE fo etarotceriD :noitazinagrO 4202.30.13 no sAAnnual Report 2024-2025 190 I - eruxennA yciloP dna ecnaniF cilbuP fo etutitsnI lanoitaN :noitazinagrODepartment of Revenue III 191 II- eruxennA SEITILIBASID HTIW SNOSREP EHT FO NOITATNESERPER )TDBC( sexaT tceriD fo draoB lartneC :noitazinagrO )4202.11.62 no sA( 10 .4202.11.62 no sa 3202 )ESC( noitanimaxE secivreS liviC hguorht detceles setadidnac eht ot TDBC yb deussi neeb evah'stnemtnioppA fo reffO' 681 * .evoba 5 ot 2 nmuloc ni dedulcni ton era srebmun esehT .ssecorp rednu si 'tnemtnioppA fo reffO' eht ni dettimbus neeb sah 3202 dna 2202 sraey ycnacav eht rof TICA fo edarg eht ni )4 :HO ;4 :HH ;4 :HV .lcni( seicnacav 073 pu gnilif rof lasoporp A ** .detiawa si CPD fo etaD .4202.80.80 no CSPUAnnual Report 2024-2025 192 II - eruxennA )CIBC( smotsuC dna sexaT tceridnI fo draoB lartneC :noitazinagrO 4202.10.10 no sa .e.i 3202 raeY eht gnirud detnioppa seitilibasiD htiw snosrep fo rebmun eht gniwohs tnemetatS :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(Department of Revenue III 193 II- eruxennA retrauQ daeH euneveR :noitazinagrOAnnual Report 2024-2025 194 II - eruxennA )DNI-UIF( tinU ecnegilletnI laicnaniF :noitazinagrO )4202.30.13 ot pu(Department of Revenue III 195 II - eruxennA AMEFAS rednu lanubirT etalleppA ehT :noitazinagrOAnnual Report 2024-2025 196 II- eruxennA ytreporP deriuqcA yllagellI fo erutiefroF rof ytirohtuA tnetepmoC :noitazinagrODepartment of Revenue III 197 II- eruxennA )TATSEC( lanubirT etalleppA xaT ecivreS & esicxE ,smotsuC :noitazinagrOAnnual Report 2024-2025 198 II - eruxennA noissimmoC tnemeltteS esicxE lartneC & smotsuC :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(Department of Revenue III 199 II - eruxennA scitocraN fo uaeruB lartneC :noitazinagrO seirotcaF fo rellortnoC feihC :noitazinagrOAnnual Report 2024-2025 200 II- eruxennA tnemecrofnE fo etarotceriD :noitazinagrO 4202.30.13 no saDepartment of Revenue III Annexure - III Summary of important observations included in Audit Reports presented to Parliament during 2024 1. Central Board of Direct Taxes (CBDT) Details of the Paras/PA reports on which ATNs are pending No. of Paras/PA No. of ATNs sent reports on which but returned No. of ATNs which Sl. ATNs have been Year No. of ATNs not with have been finally No. submitted to PAC sent by the observations vetted by Audit but after vetting by Ministry even for and Audit is have not been Audit the first time awaiting their submitted by the resubmission by Ministry to PAC the Ministry 1 NIL NIL NIL NIL 2. Central Board of Indirect Taxes & Customs No. of paras/PA Details of the Paras/PA reprots on which ATNs are pending reports on which ATNs Year S.No. have been No. of ATNs sent but (2024-25) No. of ATNs No. of ATNs which have submitted to returned with not sent by been finally vetted by PAC after obervations and the Ministry Audit but have not been vetting by Audit is awaiting their even for the submitted by the Ministry Audit resubmission by the first time to the PAC Ministry PAC- GST Section 1st April 2024 to 1 30th 5 13 6 5 November 2024 PAC -Customs Section 1st April 2024 to 2 30th 24 0 10 4 November 2024 Total 29 13 16 9 201Annual Report 2024-2025 3. Integrated Finance Unit (IFU) Summary of important observations included in Audit Reports Department of Revenue Details of the Paras/PA reports on which ATNs are pending No. of paras/PA No. of ATNs reports on No. of ATNs sent but which have been which ATNs No. of ATNs returned with finally vetted by S.No. Year have been not sent by observations and Audit but have submitted to the Ministry Audit is awaiting not been PAC after even for the their resubmission submitted by the vetting by Audit first time by the Ministry Ministry to the PAC 1 Public Accounts - - 06 ATNs are under - Committee examination in Audit (2022-23) (53rd Report) Direct Taxes Details of the Paras/PA reports on which ATNs are pending No. of paras/PA No. of ATNs reports on which No. of ATNs sent but which have been No. of ATNs ATNs have been returned with finally vetted by S.No. Year not sent by submitted to PAC observations and Audit but have the Ministry after vetting by Audit is awaiting their not been even for the Audit resubmission by the submitted by the first time Ministry Ministry to the PAC - - - - - - Indirect Taxes Details of the Paras/PA reports on which ATNs are pending No. of paras/PA reports on which No. of ATNs which No. of ATNs sent but ATNs have been No. of ATNs have been finally S. No. Year returned with submitted to not sent by vetted by Audit but observations and PAC after vetting the Ministry have not been Audit is awaiting their by Audit even for the submitted by the resubmission by the first time Ministry to the Ministry PAC - - - - - - 202Department of Revenue III 4. State Taxes (ST) Summary of important observations included in Audit Reports April - November, 2024 Details of the Paras/ PA reports on which ATNs are pending No. of ATNs sent No. of ATNs which No. of paras/PA reports on No. of ATNs but returned with have been finally Sr. which ATNs have been Year not sent by observations and vetted by Audit No. submitted to PAC after the Ministry Audit is awaiting but have not been vetting by Audit even for the their submitted by the first time resubmission by Ministry to the the Ministry PAC 1. 2021,2022 & Two NIL As per Annexure A' NIL 2024 (Para no. 3.14 & 3.26 of Audit report no. 11 of 2019) Annexure ‘A’ Status of CAG Audit Paras in r/o ST-1 section, D/o Revenue S. Year Report Chapter Para No Gist of the Audit Para Status as No. No No on 30.11.2024 1. 2024 7 Chapter 1 Para 1.3.2 - Retention of IGST in the Reply of Comparative Consolidated Fund of India further Audit growth of various comments is components of pending to Indirect Taxes be submitted. 2. 2024 7 Chapter VI Reliability of Reliability of GST data GST data maintained by Goods and maintained by Services Tax Network Goods and Comments Services Tax have been Network sought from 3. 2024 7 Chapter VII Data Analysis of Data Analysis of GSTN on Composition Composition Levy Scheme further Audit Levy Scheme Data comments. Data 4. 2021 1 3 Entire Chapter - The para relates to IT Audit Information of Refund Module, Returns Technology Module, rejection of EWBs Audit of GSTN and other Issues of Comments (Phase-II) Infra/Network of GSTN. have been 5. 2022 5 4 Entire Chapter - The para relates to (1) sought from Reliability of Inconsistencies between GSTN & GST data taxable values and tax GST Policy maintained by liability declared resulting in Wing on GSTN capture of unreliable data further Audit and (2) Inconsistencies in comments. CGST and SGST components of GST. 203Annual Report 2024-2025 Annexure-III Summary of important observations included in Audit Reports from 01.04.2024 to 30.11.2024 Details of Paras/PA reports on which ATNs are pending No. of No. of para/PA ATNs reports on No. of which which ATNs ATN not No. of ATNs sent but have been Sr. Year have been sent by returned with vetted by No. submitted to the observations and Audit but PAC after Ministry Audit is awaiting their have not vetting by even for resubmission by the been Audit the first Ministry submitted time by the Ministry to the PAC 1. 2021 1 (One) Nil Nil Nil Para 1.5 of Report No. 1 of 2021. Status- Final ATN has been approved and submitted to Lok Sabha (PAC Branch) on 16.10.2024. 2. 2024 Nil Nil 1 (one) Nil Para No. 1.4 of Report No. 7 of 2024- Chapter No. 1 (Non-submission of Compensation Fund Account for the years 2017-18 to 2020-21). Status- Returned on 16.10.2024 from CAG. 204Department of Revenue III 5. Customs, Central Excise & Service Tax Settlement Commission (All Benches) Annexure-III Summary of important observations included in Audit Reports S.No. Year Details of the Paras/PA reports on which ATNs are pending No. of paras/PA No. of ATNs reports on No. of ATNs sent which have been which ATNs No. of ATNs but returned with finally vetted by have been not sent by observations and Audit but have submitted to the Ministry Audit is awaiting not been PAC after even for the their resubmission submitted by the vetting by Audit first time by the Ministry Ministry to the PAC 1 2024 ------------------------------------------------------------NIL------------------------------------------ 6. NC Division Sr. No. Year Details of the Paras / PA reports on which ATNs No. of 2024-25 are pending paras/PA No. of ATNs No. of ATNs reports on sent but which have been which ATNs No. of ATNs returned with finally vetted by have been not sent by observations Audit but have submitted to the Ministry and Audit is not been PAC after even for the awaiting their submitted by the vetting by first time resubmission Ministry to the Audit by the Ministry PAC NIL 205Annual Report 2024-2025 206Department of Investment and Public Asset Management IV Chapter - IV Department of Investment and Public Asset Management I. FUNCTIONS III. MISSION (i) List CPSEs on stock exchanges to promote As per the present Allocation of Business Rules, the people’s ownership through public participation mandate of the Department is as follows: and improving efficiencies of CPSEs through accountability to its shareholders. 1.(a) All matters relating to management of Central Government investments in equity including (ii) To bring in operational efficiencies in CPSEs disinvestment of equity in Central Public Sector through strategic disinvestment, ensuring their Undertakings. greater contribution to the economy. (b) All matters relating to sale of Central Government (iii) Adopt a professional approach for financial equity through offer for sale or private placement or any management of CPSEs in the national interest other mode in the erstwhile Central Public Sector and disinvestment aimed at expanding public participation in ownership of CPSEs. Undertakings. IV. ORGANISATIONAL STRUCTURE Note: All other post disinvestment matters, including those relating to and arising out of the exercise of Call The Department of Investment and Public Asset option by the Strategic Partner in the erstwhile Central Management (DIPAM) is currently headed by Dr. Arunish Public Sector Undertakings, shall continue to be handled Chawla, Secretary. He is assisted by one Additional by the administrative Ministry or Department concerned, Secretary, three Joint Secretaries, one Economic Adviser where necessary, in consultation with the Department of and one Advisor (Cost). The Department functions on Investment and Public Asset Management (DIPAM). the Desk Officer pattern and the assigned work is handled at the levels of Joint Secretary, Director/Deputy Secretary 2. Decisions on the recommendations of Administrative and Under Secretary. The Organizational Structure of the Ministries, NITI Aayog, etc. for disinvestment including Department is placed at Appendix –I. strategic disinvestment. V. CURRENT POLICY ON DISINVESTMENT IN 3. All matters related to Independent External Monitor CPSEs (s) for disinvestment and public asset management. Government implements the policy of disinvestment 4. (a) Decisions in matters relating to Central Public through the minority stake sale and strategic Sector Undertakings for purposes of Government disinvestment of CPSEs. investment in equity like capital restructuring, bonus, dividends, disinvestment of government equity and other (i) Minority stake sale related issues. Minority stake sale without transfer of management (b) Advise the Government in matters of financial control through are carried out in certain CPSEs through restructuring of the Central Public Sector Enterprises and SEBI-approved methods such as Initial Public Offer (IPO), for attracting investment in the said Enterprises through Offer for Sale (OFS), Buyback of shares etc. in order to capital market. unlock value, promote public ownership, meet the minimum public shareholding norms of SEBI and for 5. The Unit Trust of India Act, 1963 (52 of 1963) along ensuring higher degree of accountability. These methods with subjects relating to Specified Undertaking of the Unit play important role in strengthening the capital market Trust of India (SUUTI). through (i) increasing the float of well performing CPSEs (ii) providing opportunity to retail investors to participate II. VISION in an extended range of stocks and bonds and (iii) (i) Promote people’s ownership of Central Public increasing liquidity and depth of the markets. Sector Enterprises (CPSEs) to share in their prosperity through disinvestment. (ii) Strategic Disinvestment (ii) Efficient management of public investment in “Strategic Disinvestment” implies entire or CPSEs for accelerating economic development substantial sale of Government shareholding of a CPSE and augmenting Government’s resources for along with transfer of management control. In case of higher expenditure. Privatization, which is a sub-set of strategic 207Annual Report 2024-2025 disinvestments, the Government equity in CPSE and its Under New Public Sector Enterprise (“PSE”) Policy management control is transferred to a private strategic public sector commercial enterprises have been classified buyer(s) and in other cases of strategic disinvestment, as Strategic and Non-Strategic sectors. The following four the Govt. equity is transferred to another CPSE along broad Strategic Sectors have been delineated based on with control. the criteria of national security, energy security, critical infrastructure, provision of financial services and The policy on strategic disinvestment is based on availability of important minerals: the economic principle that Government should discontinue in sectors, where competitive markets have  Atomic Energy, Space and Defense; come of age and economic potential of such entities may be better discovered in the hands of strategic investor  Transport and Telecommunication; due to various factors such as infusion of capital,  Power, Petroleum, Coal and other minerals; and technological upgradation and efficient management practices.  Banking, Insurance and Financial Services. Strategic disinvestment of CPSEs was implemented In Strategic sectors, bare minimum presence of the till 2004. However, thereafter, till 2014-15, disinvestment existing public sector commercial enterprises at Holding in CPSE was carried out only through limited minority Company level will be retained under Government control. stake sale. Since 2016, the Government has substantially The remaining enterprises in a strategic sector, will be overhauled the approach towards disinvestment in considered for privatization or merger /subsidiarization CPSEs. The policy for strategic disinvestment was with another PSE or for closure. PSEs in non-strategic revived. The Department was renamed as Department sectors shall be considered for privatization, where of Investment and Public Asset Management (DIPAM) feasible, otherwise such enterprises shall be considered with effect from 14th April, 2016. A comprehensive for closure. guideline on “Capital Restructuring of CPSEs” was laid down in May, 2016 for efficient management of Approval of the Government for strategic Government’s investment in CPSEs in areas such as, disinvestment of a specific PSE shall be taken from time payment of dividend, buyback of shares, issues of bonus to time, on a case-to-case basis. The timing for specific shares and splitting of share. transactions will however, be contingent, inter alia, on the considerations of appropriate sequencing, sectoral NITI Aayog was mandated to identify the CPSEs for trends, administrative feasibility, investors’ interest, etc. strategic disinvestment. Till February, 2021 NITI Aayog identified CPSEs for strategic disinvestment based on The procedure for Strategic Disinvestment is modified the criteria of (i) National Security; (ii) Sovereign function from time to time to make it more result oriented, and to at arm’s length, and (iii) Market Imperfections and Public tackle new challenges. Keeping this in view, the Cabinet Purpose. delegated certain additional powers to the Alternative Mechanism during the year 2022-23. Similarly, the The strategic disinvestment process was modified Cabinet on 18.05.2022 had given approval for in 2019 to make the process result-oriented and empowering the Board of Directors of the Public Sector expeditious. The new process provides for an Inter- Enterprises (PSEs) to recommend and undertake the Ministerial Group (IMG) chaired by Secretary, DIPAM & transactions for Disinvestment (both strategic Secretary of Administrative Ministry to drive entire disinvestment and minority stake sale) or closure of any process, while minimizing redundancy and multiplicity of of their subsidiaries or units or sale of stake in JVs. It approvals to prevent dilution of bidder’s interest and was also approved that based on proposal of Board of performance of the CPSEs. The overall process is also CPSE and Administrative Ministry, DIPAM will obtain an overseen by the Independent External Monitor (IEM) “in-priniciple” approval of Alternative Mechanism. comprising eminent persons. Thereafter, the Board of CPSEs can undertake the New PSE policy process of disinvestment or closure of subsidiaries/units/ JVs based on DIPAM or DPE guidelines. The New Public Sector Enterprise (“PSE”) Policy for Atmanirbhar Bharat was approved by Cabinet, on 27th Guiding principles for strategic disinvestment/ January 2021 and was notified on 4th February, 2021. Minority Stake sale of subsidiaries/units/sale of stakes in The policy intends to redefine public sector participation JVs by the holding/parent PSE was issued by DIPAM on in business enterprises and to encourage private sector 14.09.2022. Guiding principles for closure of subsidiaries/ participation in all sectors in order to achieve the goal of units by their Holding/Parent Public Sector Enterprises self-reliant India. was issued by DPE on 31.10.2022. 208Department of Investment and Public Asset Management IV In accordance with the new policy, DIPAM took strategic disinvestment). As a part of this strategy, CPSEs are being driven to create value for itself, its employees, approval of Alterative Mechanism (AM) on the shareholders, and the broader economy. Emphasis has following proposals during the current FY: been placed on the following aspects. i. Listing of NTPC Green Energy Limited- DIPAM i) Performance enhancement of CPSEs: Several key in coordination with Ministry of Power (MoP) performance indicators have been included in the annual facilitated listing of NTPC Green Energy Limited, MOU framework for the CPSEs on which the companies which is a subsidiary of NTPC Limited. NTPC are evaluated. Some of the key performance parameters Green Energy Limited was listed on 27.11.2024 include CAPEX, Return on net-worth or Return on capital for approximate deal size of Rs.10,000 crore. employed, Export and Import as % of revenue, EBIDTA NTPC Green Energy Limited has been listed with as % of revenue and Asset Turnover Ratio. Market related a Market Cap of more than one trillion rupees. parameters like Total returns to shareholders for listed The funds raised in the IPO (fresh issue) will be CPSEs (based on market cap of CPSE vis a vis Market used by the company for undertaking cap of sectoral index, dividend payout as per capital investments in green energy projects. management guidelines etc) have also been included in the MOU framework for the listed companies. This is ii. Bharati Hexacom Ltd (BHL) [JV between TCIL & key to raise the value of these companies in the market. Bharti Airtel Ltd (BAL)]: Based on the recommendation of NITI Aayog that TCIL shares (ii) Focus on Capex: CPSEs are encouraged to take in its joint venture company namely Bharti up CAPEX to achieve profitable growth in their business. Hexacom should be divested through an IPO, approval of Alternative Mechanism was obtained For example, CPSEs, put together, undertake capital for divestment of TCILs 30% stake in Bharati investment of more than Rs. 3 lakh crore annually from Hexacom Limited. The approval was conveyed their own resources without budgetary support. Such a to Department of Telecommunication. BHL was large CAPEX creates growth opportunities and further listed on stock exchange on 12th April 2024 and employment. TCIL received Rs 4,275 crore by divesting 15% stake comprising 7.5 crore shares of TCIL in BHL. (iii) Capital Management Guidelines: These guidelines ensure consistent dividend policy and other Capital iii. The proposal for disinvestment of Telecommunications Consultants India Ltd Management measures such as Buybacks, Bonus, Stock (TCIL)’s stake from TBL International Ltd (TBL) Split etc. Revised Guidelines on Capital Restructuring of [JV between TCIL, TBL India LLC, USA and DSS CPSEs have been issued on 18.11.2024 to align policy Group 1 received from Department of with market realities and requirements of CPSEs. Telecommunication on 16 March ,2024 as per capital management guidelines dated 1st (iv) Focus on Communication Strategy of CPSEs: June,2022 for AM approval. DIPAM supported CPSEs are being encouraged to have wider and frequent the proposal and approval of AM was sought and interactions with other capital market participants. Better intimated to DoT on 03-09-2024. The communication about business with market participants disinvestment is under process. helps CPSEs to raise funds for their future growth and iv. A proposal of M/o Heavy Industries to divest 6% creation of employment opportunities. paid up share capital of TWOIL, a subsidiary of Andrew Yule &Company Limited has been (v) Calibrated disinvestment strategy: Calibrated support and DIPAM obtained the approval of AM disinvestment strategy is being followed through listing/ on 18.09.2024. Intermediaries i.e. Merchant IPO of companies and gradual dilution of minority stake Bankers & Legal Adviser for the transaction have through stock market consistent with interest of minority been appointed by the company. shareholders. This calibrated strategy has enabled VI. VALUE CREATION IN CPSEs CPSEs to improve their efficiency and growth and become important players in the capital market. The calibrated Government has now focused on a holistic approach disinvestment policy also ensures that transactions of public asset management which balances the whenever carried out, do not cause disruption in the objectives of value creation and value unlocking in CPSEs market and remains aligned to overall market direction. to optimize returns for the Government (and the minority This has led to enhanced value of the CPSEs increasing stakeholders in listed companies) and disinvestment of CPSEs as per the extant policy (minority stake sale and returns to shareholders. 209Annual Report 2024-2025 Focus on value-creation and value unlocking through ii. Buyback of shares measures cited above, have seen Market cap and CPSE Buyback is the repurchase by a company of its shares stocks rise significantly over the last few years, leading from the existing shareholders that reduces the number to increasing returns investors holding these stocks. Total of its shares in the open market. market cap of listed CPSEs has grown by nearly 3.23x in last three years from Rs 12.10 lakh crore (31.03.2021) Companies buy back their shares: to Rs 39.14 lakh crore (21.01.2025). Market cap of GoI equity in listed CPSEs has also increased by 3.23x from a) To increase the value of shares held by Rs 6.91 lakh crore (31.03.2021) to Rs 22.30 lakh crore promoters. (21.01.2025) in the last three years. Similarly, CPSE indices have out-performed the benchmark indices in the b) To eliminate any threats by minority shareholders stock market during the past 3 years. who may be looking for a controlling stake. c) For CPSEs, buyback is a tool for Govt. of India Year SENSEX BSE Nifty-50 Nifty CPSE CPSE to disinvest the equity held by GoI in CPSEs and to make proper utilization of idle cash left with Last 1 year 8.17% 22.53% 8.80% 25.26% CPSEs. Last 2year 28.43% 113.65% 30.60% 117.58% As per the Revised Guidelines on Capital Restructuring of CPSEs issued by DIPAM on 18.11.2024, Last 3 year 34.14% 143.54% 36.25% 168.97% CPSE, whose market price of the share is less than the book value consistently for the last six months, and having As on 31.12.2024 net-worth of at least Rs. 3000 crore and cash & bank balance of over Rs. 1500 crore may consider the option VII. DISINVESTMENT PERFORMANCE to buy-back their shares. Further, if buyback is not considered desirable for a CPSE with excess cash, but A. Minority Stake Sale no committed expenditure, company may consider paying higher or special dividend to the shareholders. i. Initial Public/Further Offer IPO/FPO Achievements: In order to make the use of idle cash a) Initial public offer (IPO): When an unlisted lying with CPSEs and for improving the Earning per share, company makes either a fresh issue of shares Govt. has used buyback method effectively. During the or convertible securities or offers its existing last ten years, disinvestment proceeds of Rs 45,104 crore shares or convertible securities for sale or both were realized from buyback of shares by 45 CPSEs. for the first time to the public, it is called an IPO. This paves way for listing and trading of the iii. Offer for Sale (OFS) issuer’s shares or convertible securities on the Stock Exchanges. Offer for sale (OFS) is a simpler method of sale of shares through the exchange platform for listed b) Further public offer (FPO): When an already companies. The mechanism was first introduced by SEBI listed company makes either a fresh issue of in 2012, to make it easier for promoters of publicly-traded shares or convertible securities to the public or companies to cut their holdings and comply with the an offer for sale to the public, it is called an FPO. minimum public shareholding norms by June 2013. The method was largely adopted by listed companies, both Achievements: Since 2014-15, 18 CPSEs (including state-run and private, to adhere to the SEBI norms of LICI) have been listed which yielded Rs 51,244.10 crore. minimum public shareholding. Government often used During this period, 75.91 lakh retail investors invested this route to divest its shareholding in CPSEs. an amount of Rs. 16,564.36 crore in IPOs of CPSEs. An additional market capitalization of Rs 7.47 lakh crore Salient features of OFS: (Market-capitalization calculated based on listing price)  simple to execute was achieved through the new listings. At present, 66 CPSEs are listed (excluding public sector banks and  market-driven insurance Companies) with a total market cap of Rs. 39.4 lakh crore as on 21.01.2025 The total M-cap of 16 public  Govt. continues to retain management control sector banks and insurance companies are Rs. 24.81 lakh Crore as on 21.01.2025.  Cost-effective 210Department of Investment and Public Asset Management IV  Time efficient (completed in 2 trading days) B. Performance in Strategic Disinvestment  Transparent allocation based on price-parity The Government, since 2016, has given ‘in-principle’ basis. approval for strategic disinvestment of 36 cases of PSEs and/or Subsidiaries/ Units/ Joint Ventures of PSEs/ Bank. Achievements: After listing, further disinvestment by OFS Out of the 36 cases, 33 cases are being handled by mechanism yielded Rs 1,34,771.2 crore through various DIPAM and 3 cases are being handled by the respective transactions in 10+ years (as on 21.01.2025). This Administrative Ministry/Department. Out of the 33 cases included the largest OFS of over Rs. 22,000 crore in case being handled by DIPAM, strategic disinvestment of Coal India Limited in January, 2015. transactions have been completed in 11 cases (8 transactions are in CPSE-to-CPSE space while Air India, During F.Y. 2024-25, OFS transactions were carried NINL and FSNL (subsidiary) have been privatized); 5 out in General Insurance Corporation of India Limited PSEs are under consideration for closure; 1 case held (Re), Cochin Shipyard Limited and Hindustan Zinc Limited up due to litigation and 1 case is under Corporate (HZL) and Government realized Rs. 2345.55 crore, Insolvency Resolution Process (CIRP) in NCLT and 2 Rs.2015.32 crore and Rs. 3449.18 crore respectively from transactions found not feasible. Out of remaining 13 these transactions. transactions, EoI has not been issued or transactions called off after issuance of EoI/RFP in case of 6 PSEs Qualified Institutional Placement (QIP) in Indian and 7 transactions are ongoing and are at various stages. Renewable Energy Development Agency Limited The details are given at Annexure-I. (IREDA) - Alternative Mechanism (AM) has approved GOI shareholding in IREDA to be diluted, owing to issue of In the current FY, the Strategic Disinvestment of FSNL fresh equity through QIP route, up to an extent of 7% of has been concluded. FSNL is a 100% subsidiary of MSTC the paid-up equity of IREDA. Presently, IREDA has Ltd, M/o Steel incorporated on 28.03.1979 to provide steel engaged transaction intermediaries such as Book mill services. FSNL specializes in the recovery and Running Lead Managers and Legal Counsel for the processing of scrap from slag and refuge generated purpose of QIP and held kick-off meeting with them. The during iron and steel making across different steel plants. IRDEA is planning non-deal domestic and international Alternative Mechanism approved the highest bid roadshows with potential investors tentatively during amounting to Rs. 320 crore of M/s. Konoike Transport February 2025. Expected post dilution GOI holding % in Co. Ltd. for sale of 100% equity shareholding of MSTC IREDA shall be 68%. Funds raised in the QIP would go Ltd in Ferro Scrap Nigam Limited (FSNL) along with to the company, and not GOI. transfer of management control through a two-stage open, competitive bidding process supported by a multi- Other Transactions layered consultative decision-making mechanism. The In F.Y. 2024-25, Government received Rs. 815 crore Letter of Award has been issued. Share Purchase Agreement (SPA) has been signed between M/s. Konoike as remittance from SUUTI. Transport Co. Ltd, M/s MSTC Ltd and M/s FSNL Ltd. Exchange Traded Fund The transaction has been concluded on 21.01.2025 after Strategic Partner, FSNL and MSTC met the condition Through various offers of CPSE-ETF and Bharat-22 precedent and the shares of FSNL along with ETF, Govt. could realize disinvestment proceeds of management control were transferred by MSTC Ltd to Rs.98,949 crore since 2016-17. However, there is now M/s. Konoike Transport Co. Ltd. limited scope of disinvestment through existing ETF window as many underlying Stocks in CPSE-ETF and C. Disinvestment Targets & achievements Bharat-22 ETF have reached close to 51% level of GOI Since 2014-15, an amount of about Rs. 4,36,748 equity or some stocks in the ETF basket are no longer crore (as on 21.01.2025) has been realized as available for disinvestment due to strategic disinvestment disinvestment proceeds using various modes/ or other reasons. Also, there has been concern that large instruments. This includes Rs 3,30,049 crore realized and repeated tranches of Equity ETF were acting as a from minority stake sale, and Rs. 69,412 crore realized disincentive for investors in PSU stocks due to price from strategic disinvestment transactions in 10 CPSEs overhang. Therefore, Government has now decided to (Air India & NINL have been privatized and in remaining pause employing Equity ETFs as a tool for minority stake 8 CPSEs strategic disinvestment was in CPSE to CPSE sale. 211Annual Report 2024-2025 space). Amount received from strategic disinvestment VIII. OTHER INITIATIVES (Rs. 69,412 crore) does not include Rs. 12,100 crore and Rs. 320 crores received resectively as Enterprise Value (i) Launch of Bharat Bond ETF for NINL and FSNL (Subsidiary) as GoI didn’t have any Bharat Bond ETF comprising of AAA rated CPSEs, direct equity in these companies. Other transactions was launched in December 2019 which was the first yielded Rs. 37,287 crore. instrument of its kind based on high-quality public-sector (In Rs. crore) bonds. Tranche -I of Bharat Bond ETF launched in Year December, 2019 raised over Rs. 12,400 crore. Tranche- Target (BE) Target (RE) Actual II of BHARAT Bond ETF was launched in July, 2020 raising over Rs. 11,000 crore Tranche III was launched 2014-15 43,425 26,353 24,349 in December, 2021 raising over Rs. 6,200 Cr. The three 2015-16 69,500 25,313 23,997 tranches received huge response from all sections of investors especially retail investors. 2016-17 56,500 45,500 46,247 After the successful launch of three tranches with 2017-18 72,500 1,00,000 1,00,037 an AUM of Rs. 50,000+ Cr., the fourth tranche BBETF – 2018-19 80,000 80,000 84,972 2033 of BHARAT Bond ETF with 10+ years maturing in April 2033 was launched on 2nd December 2022 and 2019-20 1,05,000 65,000 50,300 ended on 8th December 2022. The April 2033 issue of 2020-21 2,10,000 32,000 32,886 BHARAT Bond ETF was oversubscribed 2.8 times against the base issue size of Rs. 1,000 cr. The total Rs 2021-22 1,75,000 78,000 13,534 2800 crore was raised against the base issue size of 2022-23 65,000 50,000 35,294 Rs.1000 crore. 8 CPSE namely PFCL, IRFC, REC, NABARD, HUDCO, NTPC Limited, HPCL, and NPCIL There is no are expected to participate and issue bonds. specific estimate for Asset Under Management (AUM) for the Bond ETF 2023-24 51,000 16,507 disinvestment market has grown to Rs. 59,220 crore (as on December, in 2023-24 RE 2024)) out of which about 98% is accounted for Bharat Bond ETF (around Rs 58,020 crore). It provided @ opportunity to retail investors to access bonds with 50,000 smaller amount (as low as Rs 1,000) while helping CPSEs There is no mobilized debt at reduced cost. Based on this model, specific 2024-25 estimate for - 8,625 many Bond-ETFs based on G-Sec, State Development Loans (SDLs) and Corporate Bonds have come to the disinvestment in 2024-25 market. BE Total 4,36,748 (ii) Special National Investment Fund The proposal for tendering 33,61,461 shares of Disinvestment is an ongoing process, and execution/ Scooters India Limited (SIL), held in Special National completion of specific transactions hinges upon market Investment Fund (SNIF), in the delisting offer of SIL, was approved by the Alternative Mechanism in March,2024 conditions, domestic and global economic outlook, following which, the entire such shares of SIL held in geopolitical factors, investor interest and administrative SNIF were tendered on 8thApril, 2024. A sum of Rs. 10.68 feasibility. During the FY 2023-24, Rs.51,000 crore was crores was received on 2nd May, 2024, as a result this estimated for disinvestment and Rs. 10,000 crore for other transaction. Scooters India Limited (SIL) was approved capital receipts as 2023-24 BE. However, under for closure in the year 2021 and the company has now “Miscellaneous Capital Receipts - Receipts” at the RE been delisted from the stock exchange in 2024. stage it was revised to Rs.30,000 crore, which accounted for the receipts under erstwhile categories of (iii) Monetization of Enemy Shares disinvestment and other capital receipts such as asset monetisation. There is no specific estimate for Cabinet in its meeting on 8th November, 2018 disinvestment in 2024-25 BE as well. Rs. 50,000 crore approved the procedure and mechanism for disposal of kept under Miscellaneous capital receipts, which includes Enemy Shares, which is also being handled by DIPAM. receipts on account of management of equity investments As per the enemy shares provided by CEPI MHA, more and public assets through various mechanisms than 99.4% shares have been sold. As on date 212Department of Investment and Public Asset Management IV (November, 2024) total shares of value of Rs. 2740.81 50,000 crore, and is more than actual dividend receipts crore have been sold and the proceeds have come back (Rs 59,533 crore) during the previous financial year. Sofar, to GoI. Rs. 49,323 crore (as on 20.01.2025) has been received as dividend from CPSEs. IX. CAPITAL MANAGEMENT &DIVIDEND RECEIPTS X INITIATIVES UNDERTAKEN FOR PERSONS WITH DISABILITIES, SCHEDULED CASTES, Revised Guidelines on Capital Restructuring SCHEDULED TRIBES AND OTHER BACKWARD CLASSES: of CPSEs The staff strength in the Department along with DIPAM has issued Revised Guidelines on Capital representation of Scheduled Castes, Scheduled Tribes, Restructuring of CPSEs on 18.11.2024 with the approval Persons with disabilities and Other Backward Classes is of Hon’ble Finance Minister. These Guidelines, brought given in Appendix-II out after due consultation with all stakeholders, reflect the evolution in the capital market conditions, regulatory XI INITIATIVES RELATING TO GENDER and sectoral changes, etc. Main objectives of the BUDGETING AND EMPOWERMENT OF WOMEN Guidelines are to enhance value of the CPSE and returns for the shareholders, improve performance and efficiency The nature of allocated work of the Department does of CPSEs by providing them operational & financial not have any scope for gender budgeting and flexibility thereby enabling them to play effective role in empowerment of women. economic growth of the country. The comprehensive Revised Guidelines have been circulated to all XII OFFICIAL LANGUAGE POLICY Administrative Ministries/Departments and CPSEs for compliance. The Department has a full-fledged Official Language Unit to implement the Official Language Policy. The Dividends: website of the Department is bilingual. Dividends from CPSEs form an important component XIII E-GOVERNANCE of non-tax receipts. The work related to dividends was transferred from Department of Economic Affairs to As a part of good governance through the use of DIPAM from Financial Year 2020-21 onwards. information technology, the following initiatives have been Accordingly, an Inter-Ministerial Committee namely taken: Committee for monitoring of Capital Management and Dividend in CPSEs (CMCDC) for discussing/approving (i) Website of the Department (www.dipam.gov.in) proposals relating to capital management/restructuring is updated on a regular basis, in both English and dividend payouts, including exemption proposals of and Hindi. The website is compliant with the CPSEs has been set up. Consistent Dividend Policy was Guidelines for Indian Government Websites framed by DIPAM (in November 2020) for ensuring (GIGW). predictability in dividend payment by companies. A (ii) Maintenance of the Payroll Package predictable dividend regime helps in reviving investor interest and improve market sentiments for CPSE stocks (iii) Implementation of e-Office as predictability in regular dividend payment would attract quality investors to CPSE stocks and retain them in the (iv) Following web-based monitoring systems are in hope of a future dividend. Government will also get place: predictable and periodic dividends as interim dividend. This policy has been successful and as a result, CPSE  Rajya Sabha Question, Answer Monitoring indices have significantly improved over the last year, System. beating the matching the benchmark Sensex. The  Centralized Public Grievance Redress and significant rise in dividend payouts by CPSEs has also Monitoring System (CPGRAMS) encouraged investors to invest in CPSE stocks. The Government realized Rs. 59,533 crore as dividend  Centralized Tender/Procurement payouts by CPSEs for the FY 2022-23. Total dividend Monitoring System. Tenders are regularly put on the website and e-Publishing in e- receipts from CPSEs in FY 2023-24 stood at Rs 64,029.74 procurement portal is being done regularly. crore, which exceeds the Revised Estimate (RE) of Rs 213Annual Report 2024-2025  Representations of Reserved Categories to submit the quarterly returns regarding receipt and in Posts and Services in Government of disposal of the RTI applications/ appeals, to the Central India (RRCPS) Monitoring System (SC/ST Information Commission. Commission Portal). (ii) Details of functions of the Department along with  APAR Monitoring system for IAS Officers its functionaries etc. have been placed on (JS level & above), CSS/ CSSS Officers Department’s website (www.dipam.gov.in) in (All levels). compliance with Section 4(1)(b) of the RTI Act and is updated from time to time. (v) Cadre Management System (for CSS Officers). (iii) One Under Secretary has been designated as (vi) Pension Portal the Nodal Central Public Information Officer and (vii) Use of GeM portal 3 Deputy Director, 2 Assistant Directors and 9 other Under Secretaries as Central Public (viii) Quarterly Rolling Plan Information Officers under Section 5(1) of the Act, in respect of subjects handled by them. (ix) Data Portal (Data.gov.in). (iv) 1 Joint Secretary, 5 Directors, 1 Joint Director XIV REDRESSAL OF PUBLIC GRIEVANCES and 2 Deputy Secretaries have been designated The Department is using the Centralized Public as First Appellate Authorities in terms of Section Grievance Redress and Monitoring System (CPGRAMS). 19(1) of the Act for all matters relating to their The website of the Department also has an in-built Divisions. mechanism for receiving grievances from public. A Joint Secretary has been designated as Nodal Grievance XVII INITIATIVES FOR GOOD GOVERNANCE Officer and Additional Secretary has been nominated as As per the mandate provided by the Government Nodal Appellate Authority for the purpose. of India (Allocation of Business) Rules, 1961, the Internal Complaints Committee on Sexual Department is not involved in the delivery of any public harassment of women employees services and thus, does not have any direct interface with the citizens or public at large. However, the Department In compliance with Supreme Court’s Judgement has initiated the following measures as a part of good dated 13th August, 1997 in Visakha case relating to governance: prevention of sexual harassment of women at work place, an internal complaints committee has been put in place Timelines have been prescribed for disposal of for considering complaints of sexual harassment of transaction related bills to avoid delay and any scope of women employees in Department of Investment and corruption as also to promote good governance. Public Asset Management (DIPAM). XVIII AUDIT PARAS/OBJECTIONS XV VIGILANCE MACHINERY An Additional Secretary has been designated as No CAG or PAC paras/Objections are pending part-time Chief Vigilance Officer in the Department. in the Department. XVI RIGHT TO INFORMATION ACT, 2005. XIX INTEGRATED FINANCE UNIT In order to facilitate dissemination of information The Integrated Finance Unit works under under the provisions of the Right to Information Act, 2005, Additional Secretary & Financial Adviser (Finance) and the following initiatives have been taken by the deals with expenditure and Budget related proposals of Department: Grant No. 34 – Department of Investment & Public Asset Management - which includes Secretariat General (i) An RTI Cell has been set up to collect, transfer the Services covering the establishment budget for the applications under RTI Act, 2005 to the Central Public Department of Investment & Public Asset Management. Information Officers/ Public Authorities concerned and 214Department of Investment and Public Asset Management IV The budget allocation under Grant No. 34 is as under: - (Rs. in crores) Grant No. Budget Estimates 2024-25 Capital Revenue Total 34 - Department of Investment & Public Asset Management 1.47 48.27 49.74 The Integrated Finance Unit monitors all financial and During the Campaign the progress was regularly expenditure related proposals of the Department like uploaded on the ‘SCDPM’ portal & posted on social media appointment of consultants, foreign deputation/visits of platform and the pendency was brought down to the officers etc. The expenditure trend of the Department is minimum level almost in all categories. consistently monitored by the Integrated Financial Unit XXI Monitoring of Court Cases: (IFU). All budget related matters including issues concerning Standing Committee on Finance come within Monitoring of Court cases in DIPAM are now being the purview of this unit. done in Legal information briefing System 2.0 (limbs 2.0). JS(Admn) has been nominated as Nodal Officer of limbs XX Special Campaign 4.0 : portal of DIPAM and DD/US/DS level officers of every DIPAM has no attached/ sub-ordinate office under Division have been designated as limbs user by Nodal its administrative control. The Special campaign 4.0 was officer of DIPAM for the purpose of entry, updation and undertaken with full enthusiasm focusing on disposal of transferring of court cases in limbs portal. Therefore, the pending references in the identified categories, reviewing/ status of pending court cases are monitored regularly at weeding out of files, disposing of old unusable articles the users level in the divisions of the Department through and. limbs portal. 215Annual Report 2024-2025 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 wherein EoI has been issued 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. Indian Medicines Pharmaceuticals Corporation Limited 6. NMDC Steel Limited (NSL) 7. IDBI Bank. 2. Transactions where EoI has not been issued or transactions called off after issuance of EoI/RFP: 8. Bharat Petroleum Corporation Ltd (except Numaligarh Refinery Limited) 9. Pawan Hans Limited 10. Central Electronics Limited (CEL) 11. Alloy Steel Plant, Durgapur; Salem Steel Plant; Bhadrawati Steel Plant - units of Steel Authority of India Limited 12. Container Corporation of India Limited 13. Rashtriya Ispat Nigam Ltd. 3. Transactions being processed by respective Administrative Ministries S.No. Name of PSE 14. Various Units of India Tourism Development Corporation Limited 15. Hindustan Antibiotics Limited 16. Bengal Chemicals & Pharmaceuticals Limited 4. Transactions halted as the CPSEs recommended / approved for closure; or any other reason S.No. Name of PSE 17. Hindustan Fluorocarbons Limited (subsidiary) * 18. Scooters India Limited ^ 19. Bharat Pumps & Compressors Limited * 20. Hindustan Prefab Limited** 21. Units of Cement Corporation of India Limited (Nayagaon Unit) # *Government approved for closure of the Company. ^ Company has been delisted from stock exchanges ** CPSE is under closure. # Transaction not feasible and the mines are being returned to the State Governments. 216Department of Investment and Public Asset Management IV 5. Transactions held up due to litigation S.No. Name of PSE 22. Karnataka Antibiotics & Pharmaceuticals Limited 6. Under Corporate Insolvency Resolution Process (CIRP) in NCLT S.No. Name of PSE 23. Hindustan Newsprint Limited (subsidiary)** ** In January, 2021 National Company Law Tribunal approved a 146-crore bid of the Kerala Industrial Infrastructure Development Corporation (KINFRA), Government of Kerala to acquire Hindustan Newsprint Ltd. HNL was renamed as Kerala Paper Products Limited (KPPL) in 2021. 7. Transactions not feasible. S.No. Name of PSE 24. Engineering Project (India) Limited 25. Bridge and Roof Company (India) Limited 8. Transactions Completed S.No. Name of CPSE 26. Hindustan Petroleum Corporation Limited (HPCL) 27. Rural Electrification Corporation Limited (REC) 28. HSCC(India) Limited 29. National Projects Construction Corporation Limited (NPCC) 30. Dredging Corporation of India Limited (DCIL) 31. THDC India Limited (THDC) 32. North Eastern Electric Power Corporation Limited (NEEPCO) 33. Kamrajar Port Limited 34. Air India ^^ 35. Neelachal Ispat Nigam Limited (NINL) 36 Ferro Scrap Nigam Limited (subsidiary) ^^ Subsidiaries which are now with AIAHL are still to be divested 217Annual Report 2024-2025 218Department of Investment and Public Asset Management IV Appendix-II Representation of SCs, STs, OBCs in respect of Department of Investment & Public Asset Management Groups Number of employees Number of appointments made during the previous calendar year (as on 23.01.2025) By Direct Recruitment By promotion By Deputation Total SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs A 39 10 1 5 0 0 0 0 0 0 0 0 0 0 B 20 4 1 3 0 0 0 0 0 0 0 0 0 0 C 15 8 0 5 0 0 0 0 0 0 0 0 0 0 Total 74 20 2 13 0 0 0 0 0 0 0 0 0 0 Representation of the persons with disabilities in DIPAM Group Number of By Direct Recruitment Promotion employees (as on 23.01.2025) No. of No. of appointments No. of No. of appointments Vacancies made vacancies No. made reserved of appointment reserved made Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH A 39 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 B 20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C 15 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total 74 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 219Chapter - V Department of Financial Services V Department of Financial Services 1. Organisations/Institutions/ Authority (PFRDA) Regulators Under DFS  Insurance Regulatory and Development Authority Under the administrative control of the Department of India (IRDAI) of Financial Services (DFS), a total of 120 organizations Regional Rural Banks (43) fall into various categories, including Public Sector Banks,  Andhra Pragathi Grameena Bank Public Sector Life Insurers, Public Financial Institutions,  Chaitanya Godavari Grameena Bank Regulators, Regional Rural Banks, DRTs/DRATs, CERSAI,  Saptagiri Grameena Bank Office of Custodian, Office of Special Court, and Court Liquidator. Below are the details of these organizations:  Arunachal Pradesh Rural Bank Public Sector Banks(12)  Assam Gramin Vikash Bank  State Bank of India  Dakshin Bihar Gramin Bank  Punjab National Bank  Uttar Bihar Gramin Bank  Chhattisgarh Rajya Gramin Bank  Bank of Baroda  Baroda Gujarat Gramin Bank  Canara Bank  Saurashtra Gramin Bank  Union Bank of India  Sarva Haryana Gramin Bank  Bank of India  Himachal Pradesh Gramin Bank  Central Bank of India  Ellaquai Dehati Bank  Indian Bank  J&K Grameen Bank  Bank of Maharashtra  Jharkhand Rajya Gramin Bank  UCO Bank  Karnataka Gramin Bank  Punjab & Sind Bank  Karnataka Vikas Grameena Bank  Indian Overseas Bank  Kerala Gramin Bank Public Sector Insurers(7)  Madhya Pradesh Gramin Bank  Life Insurance Corporation of India (LIC)  Madhyanchal Gramin Bank  General Insurance Corporation of India (GIC)  Maharashtra Gramin Bank  The New India Assurance company limited  Vidharbha Konkan Gramin Bank (NIACL)  Manipur Rural Bank  United India Insurance Company Limited (UIICL)  Meghalaya Rural Bank  The Oriental Insurance Company Limited (OICL)  Mizoram Rural Bank  National Insurance Company Limited (NICL)  Nagaland Rural Bank  Agriculture Insurance Company of India Limited  Odisha Gramya Bank (AICIL)  Utkal Grameen Bank Public Financial Institutions(7)  Puduvai Bharthiar Grama Bank  National Bank for Agriculture and Rural  Punjab Gramin Bank Development (NABARD)  Baroda Rajasthan Kshetriya Gramin Bank  Export -Import Bank of India (Exim Bank)  Rajasthan Marudhara Gramin Bank  India Infrastructure Finance Company Limited  Tamil Nadu Grama Bank (IIFCL)  Andhra Pradesh Grameena Vikas Bank  National Bank for Financing Infrastructure and  Telangana Grameena Bank Development (NaBFID)  Tripura Gramin Bank  Industrial Finance Corporation of India Limited  Aryavart Bank (IFCI)  Baroda UP Bank  National Housing Bank (NHB)  Prathama UP Gramin Bank  Small Industrial Development Bank of India (SIDBI)  Uttarakhand Gramin Bank Regulators (3)  Bangiya Gramin Vikash Bank  Reserve Bank of India (RBI)  Paschim Banga Gramin Bank  Pension Fund Regulatory and Development  Uttar Banga Kshetriya Gramin Bank 221Annual Report 2024-2025 DRTs  DRT, Jabalpur  DRT-1, Ahmedabad  DRT, Jaipur  DRT-2, Ahmedabad  DRT-1, Kolkata  DRT, Allahabad  DRT-2, Kolkata  DRT, Aurangabad  DRT-3, Kolkata  DRT-1, Bengaluru  DRT, Lucknow  DRT-2, Bengaluru  DRT, Madurai  DRT-1, Chandigarh  DRT-1, Mumbai  DRT-2, Chandigarh  DRT-2, Mumbai  DRT-3, Chandigarh  DRT-3, Mumbai  DRT-1, Chennai  DRT, Nagpur  DRT-2, Chennai  DRT, Patna  DRT-3, Chennai  DRT, Pune  DRT, Coimbatore  DRT, Ranchi  DRT, Cuttack  DRT, Siliguri  DRT-1, Delhi  DRT, Visakhapatnam  DRT-2, Delhi  DRT-3, Delhi  DRT, Dehradun DRATs  DRT-1, Ernakulam  DRAT, Allahabad  DRT-2, Ernakulam  DRAT,Chennai  DRT, Guwahati  DRAT, Delhi  DRT-1, Hyderabad  DRAT,Kolkata  DRT-2, Hyderabad  DRAT, Mumbai 2. Organisational Chart The Department is headed by the Secretary (Financial Services) who is assisted by one Additional Secretary, four Joint Secretaries (JS), one Deputy Director General (DDG) and two Economic Advisers (EA). The organisational chart of the department is shown below: 222Department of Financial Services V 3. Work Allocation among Sections  Matters relating to office of Court Liquidator, Kolkata At present, there are 29 sections within this department, and their work allocation is as follows:  Work relating to Government Agency Business Banking Operation-I (BO-I)  Financial Action Task Force (FATF)  Appointment of Governor/ Deputy Governor of RBI,  Setting up of Currency Chest by banks in border Chairman & MDs of SBI, CMDs and EDs of districts (within 80 KMs of International Border) Nationalised Banks, salary allowances and other  Rationalization of Bank Holidays / declaration of terms and conditions of Whole Time Directors bank holidays under section 25 of the Negotiable of PSBs Instruments Act, 1881  Constitution of Boards of Directors of RBI and  Know Your Customer (KYC) all matters - AML PSBs: appointment of Workmen Employee and CFT matters. Directors, appointment of Part Time Non-Official Directors and Officer Employee Directors of PSBs Banking Operation-III (BO-III)  Nomination of Directors on the Board of PSBs.  Customer Service in Banks/FIs/Ins. Banking Operation-II (BO-II)  All kinds of complaints/representations received from individual/ associations for redressal of their  Administration of all Acts/Regulations/Rules grievances in these institutions such as delay in related to Financial Systems like the Negotiable clearance of cheques, non-payment/ non-issue Instruments Act, 1881, the Chit Funds Act, 1982 of drafts, non-issue/ delay in issue of duplicate and the Price Chits and Money Circulation drafts, misbehavior/ rude behavior/ harassment on Schemes (Banning) Act, 1978, etc., Banning of the part of staff of the Institution, non-settlement/ Unregulated Deposit Scheme Act, 2019, delay in settlement of deceased accounts, non-  Deposit Insurance and Credit Guarantee transfer/ delay in transfer of accounts from one Corporation (DICGC), Act, 1961 office to another, non-opening/ delay in opening of new accounts, non-compliance with standing  Coordination of work on matters related to instructions of the customers, non-payment of Disaster management and crisis management, term deposits before maturity, delay in payment  Payment and Settlement System Act, 2007 to pensioners, including those related to credit cards, ATMs, etc.  Matters relating to Digilocker, wherein the proposal is to enable the updation of the address of the  All kind of complaints received from DARPG/ DPG account-holder in banks relating to Public/ Private Sector/Foreign Banks/ FIs/Ins.  Disposal of appeals received under section 9 of the Payment and Settlement Systems Act, 2007  All kinds of complaints received from MPs/ VIPs/ PMO against Private Sector & Foreign Banks  Factoring Regulation Act, 2011  Banking Customer Service  State Legislations - Protection of Interest of Depositors Acts of State Governments  Banking Ombudsman  Matters relating to Multi-Level Marketing and  Coordination of PRAGATI meetings. Ponzi Schemes Banking Operation & Accounts-I (BOA-I)  Setting up of IFSC - GIFT  Preparation of annual consolidated review on the  International Relations (Banking) / Bilateral issues working of Public Sector Banks (PSBs) and laying it on the Tables of both Houses of Parliament  International Cooperation in. WTO, RCEP, JCCII and CEPAs/CECAs/FTAs of India with bilateral  Pattern of accounting and final accounts in Public and multilateral partners Sector Banks  Matters relating to Financial Sector Development  Study and analysis of the working results of PSU Council and its Sub-committees Banks  Matters relating to Central Economic Intelligence  Taxation matters of PSBs/ FIs Bureau (CEIB)  Dividend payable to Central Government by PSBs 223Annual Report 2024-2025  Scrutiny of the annual financial reviews of PSBs Undertaking / Comfort by PSBs and related conducted by RBI under Section 35 of the Banking complaints Regulation Act, 1949 and follow up action  Citizen's Charter of PSBs/RBI  Capital restructuring of PSBs (including  Acquisition/ Leasing/ Renting/ Vacation of restructuring of weak PSBs) and Government's premises, Estate Officers under Public Premises contribution to share capital, public issue of banks Act, 1971  Release of externally aided grants to ICICI Bank  Operation of foreign banks in India (including IDC under USAID, and FDI Policy matters)  Disputes and arbitration between PSBs and  Banking Sector Reforms (including EASE Index between PSBs and other Govt. Departments/ and PSB Reforms Agenda) PSEs  NBFCs and Appellate Authority on NBFCs  Appointment of advocates in PSBs  Operational risk management (other than cyber-  Residuary matters of Portuguese Banks in Goa security and digital payments security), including  Opening and shifting of administrative offices of frauds and fugitive offenders banks  Administration of all Acts/Regulations/Rules  All Policy matters related to Banking Operation related to NBFCs and CICs, such as Licensing, amalgamation, reconstruction,  Statement of Intent / Key Performance Indicators moratorium funds, and acquisition of private sector / Performance evaluation of whole-time Directors banks,  Insolvency Bankruptcy Code (IBC)  Functioning of PSBs  Overseas branches of Indian banks.  Notification regarding exemption from various sections of the Banking Regulation Act, 1949 and Industrial Relations (IR) appointment of appellate authority to hear appeals under BR Act and Banking Companies  Service matters of PSBs including IDBI/ RBI (Acquisition and Transfer of Undertakings) Act of  Industrial Disputes Act matters, HR matters 1970 and 1980 relating to PSBs and RBI Unions and Associations  Administration of all Acts/ Regulations/ Rules in the Banking Industry, Bipartite settlements of related to Public Sector Banks, RBI and State policy of transfer, promotion, and HRD in banks Level Banks  IB reports about political activities of bank  Laying of annual reports and audit reports etc., of employees PSBs in Parliament.  Pay and Allowances of bank employees in Banking Operation & Accounts-II (BOA-II) overseas branches  Credit Information Companies (CICs)  HR Reforms.  Works relating to monitoring of NPAs and Agriculture Credit (AC) Recovery including compromises and OTS of all  Credit flow to Agriculture and allied sectors PSBs  Agricultural Debt Waiver and Debt Relief Scheme,  Parliament matters, VIP/PMO references, 2008 complaints and other matters relating to above works  Matters relating to NABARD (including pension matters of NABARD), Agriculture Finance  All matters related to NPA/Stressed Assets (other Corporation (except Service matters), State than Sectoral Stress), including relief measures Legislations on the subject, Co-operative Banks by banks in area affected by natural calamities (including Urban Co-operative Banks), external  Stressed Assets Stabilization Fund (SASF) aided projects relating to rural/agriculture credit, appeals made by co-operative banks, financial  Audit of banks, appointment and fixation of assistance to persons affected by natural remuneration of auditors of PSBs/FIs, calamities, riots disturbances, etc. Bank credit to KVIC, handloom and handicraft sector  Bank guarantees, Letters of Credit and Letters of 224Department of Financial Services V  Citizen Charter of NABARD Insurance-II (Ins.-II)  Appointment of CMDs & Directors of NABARD  Administration of the Insurance Act, 1938; Life Insurance Corporation Act, 1956; General Insurance  Kisan Credit Card (KCC) Scheme Business (Nationalisation) Act, 1972; Insurance  Secretarial assistance to the designated Regulatory and Development Authority Act, 1999 appellate authority in regard to appeal by Urban and related matters, other than those related to Cooperative banks against cancellation of corporate governance, appointment and service license by RBI. matters or those relating to recruitment and the terms and conditions of agents of the Life Insurance Regional Rural Banks (RRB) Corporation of India  Legislative matters with regard to RRB Act, 1976  Policy matters relating to insurance, and to this and framing of rules there under end, analysis of the trends and development in and the performance of the insurance sector and various  Nomination of non-official directors on the Board bodies established by or under the said Acts of RRB, appointment of Chairman, Re- commendation of RRBs, review of performance  Administrative matters pertaining to public sector of RRBs, wage revision, manpower planning insures and Agriculture Insurance Corporation of India Limited (AICIL), other than governance,  Laying of Annual Reports of all RRBs along with appointment and service matters review thereof,  Assessment of capital requirements, divided  Formation of Staff Service Regulation and payouts and performance of public sector insurance Promotion Rules for employees and officers of and AICIL RRBs, IR matters of RRBs  Social security schemes for insurance protection  Citizen's Charter of RRBs and other insurance schemes sponsored/ supported by the Government  Priority Sector Lending, Micro Finance and other related matters which includes lending to weaker  Insurance Ombudsmen Rules and administration sections including SC/ST, PM's New 15 Point thereof, other than corporate governance, Programme for the Welfare of Minorities, Credit appointment and service related matters pertaining to minorities, follow up action of Select to Insurance Ombudsmen and the Council of Parameters recommended by Sachar Insurance Ombudsmen Committee, DRI Scheme.  Foreign investment in insurance sector Insurance-I (Ins.-I)  Reforms in the sector and public sector insurers, including adoption of technology in insurance  Corporate governance, appointment and service (except matters allocated to the Cybersecurity and matters pertaining to public sector insurers and FinTech Section) AICIL, Insurance Regulatory and Development Authority of India, Council of the Institute of  Supporting the section in charge of international Actuaries of India, Insurance Ombudsmen, cooperation matters on insurance related aspects of international cooperation Council of Insurance Ombudsmen, recruitment and the terms and conditions of agents of the  Taxation matters relating to insurance sector Life Insurance Corporation of India, and insurance  Matters relating to the industry, including those appointment related matters pertaining to Banks raised by industry bodies/ associations Board Bureau Administration of the Actuaries Act, 2006 and related matters  Implementation of Law Commission Reports  All residual matters relating to insurance which are  Matters of public entities relating to the Public not enumerated specifically as an item of work Premises (Eviction of Unauthorized Occupants) allocated to either Insurance-I Section or Insurance- Act, 1971 II Section  Parliamentary, audit, right to information, court,  Parliamentary, audit, right to information, court, arbitration and VIP reference related matters and arbitration, VIP reference related matters and dealing with matters referred through receipts dealing with matters referred through receipts or or otherwise in respect of any of the items otherwise in respect of any of the items enumerated enumerated above or connected thereto. above or connected thereto. 225Annual Report 2024-2025 Financial Inclusion (FI) program, AKAM 2.0, SVANidhi. PM Vishwakarma Scheme etc.  National Mission for Financial Inclusion (NMFI) related matters including monitoring of flagship Industrial Finance-I(IF-I) schemes of DFS:  Administration of the Export-Import Bank Act-1981 (a) Pradhan Mantri Jan Dhan Yojana (PMJDY) and Scheme for financing Viable Infrastructure (Policy & implementation) Projects (SIFTI) of IIFCL, Operational/Policy/ Budgetary matters relating to Exim Bank, IIFCL, (b) Pradhan Mantri Jeevan Jyoti Bima Yojana IWRFC and IIBI Ltd. (PMJJBY) (Only implementation)  Matters related to IFCI Ltd, IDFC Ltd, winding up (c) Pradhan Mantri Suraksha Bima Yojana matter related of IIBI Ltd, and other related matters (PMSBY) (Only implementation)  Board level Appointments-Whole Time Directors- (d) Pradhan Mantri Mudra Yojana (PMMY) IIFCL, EXIM, IFCI Ltd and their personnel matters (Policy & implementation)  Government Nominee Directors-EXIM Bank, IIFCL, (e) Stand Up India (SUPI) (Policy & IFCI Ltd. and IDFC Ltd. implementation)  Non-Official Directors/Independent Director in -  Work relating to financial inclusion, coordination EXIM Bank, IIFCL and IFCI Ltd. with other sections, offices, institutions etc on Financial inclusion  Sector-specific matters like infrastructure, power, textiles, exports; steel, telecom, road, shipping  Branch expansion of banks (added) etc. matters related to sectoral issues  Lead Bank Scheme and Service Area Approach  Laying of annual reports of IIFCL, EXIM Bank, IFCI  District and State Level Bankers' Committee Ltd and Liquidator's report of IIBI Ltd. Before the (SLBC) parliament  Regional imbalances of banking network, matters  Matters related to Ratnagiri Gas and Power Pvt. related to Business Correspondents/Business Ltd (RGPPL) Facilitators, Mobile Banking etc.  Citizen's Charter of EXIM Bank and IIFCL  Deployment of banking touchpoints/BCs/ATMs  All matters related to resolution and registration and Jan Dhan Darshak App (JDD) related issues issues of Asset Reconstruction Company (ARC)  BC related policy matters including monitoring of and to track the activities of the ARCs their activities  All matters related National Investment and  Matters relating to Minimum deposit balance, Infrastructure Fund cash handling & digital payment charges  Appointment of Statutory Auditor in EXIM Bank  Administrative matters of Mission Office  Media and Publicity related matters of DFS  Banking matters Pradhan Mantri Jan Dhan Yojana  Project Monitoring Group (PMG) Meeting (PMJDY), Mission Office  Partial Credit Guarantee Scheme (PCGS)  India Post Payment Banks (IPPB) and other payment bank related matters  Joint Parliamentary Committee (JPC) (which enquired into irregularities in securities  Inter- State Zonal Council Meetings transactions)  Aspirational District, LWE and other interventions  Disciplinary action against bank employees/ for financial inclusion by Government executives involved in irregularities in securities  Financial Literacy, Coordination with RBI on transactions. National Strategy for Financial Inclusion (NSFI)/ Office of Custodian Financial Inclusion Advisory Committee FlAC)/ TGFIFL and related issues  Establishment matters relating to Special Courts/ Office of the Custodian  Matter related to 75 Blocks - DoNER program (SAMBHAV), SVAMITVA Scheme, Antyodaya  All issues pertaining to continuation of posts, 226Department of Financial Services V budget matters of the O/o Custodian and Special  Nomination of CVOs for PSBs/FIs/PSICs Court including extension of the O/o Custodian  Correspondence with CBI and appointment of Custodian  Annual Action Plan on Anti-Corruption measures Industrial Finance-II (IF-II)  Investigation of cases of frauds by CBI & RBI  Administration of National Housing Bank Act, 1987  Matters under Prevention of Corruption Act  Administration of Small Industries Development Bank of India Act  Preventive vigilance  Administration of National Housing Bank Act  Vigilance systems and procedures in RBI/PSBs/ Administration of State Financial Corporation Act FIs and Insurance Companies PFRDA and IRADI/ RBI  Operational, Policy and Budgetary matter relating to SIDBI and NHB  Inquiry into complaints against GMs/EDs and CMDs of PSBs/FIs/PSICs/PFRDA and IRADI/RBI  Matters relating to NHB and Housing Policy and Vigilance Surveillance over them  Post winding up of BIFR & AAIFR matters  Major frauds in PSBs (in India and abroad)  Matters related to Micro, Small and Medium  PMO references on anti-corruption measures Enterprises (MSMEs), TReDS. SIDBI, SFCs, Credit Guarantee Fund for Micro and Small  Bank security, robberies & loss prevention in Enterprises, CGFMU, CGFSI, CGTMSE, CGFF banks  MLIs, Credit Guarantee Scheme and other related  Sanction of prosecution in case of ED/CMDs matters on the subject  War Book Matters  Citizens Charter of NHB and SIDBI  Annual Reports of CVC  All matters related to Educational Loans including  Conduct Regulation in PSBs/FIs, employment Vidyalakshmi Portal, Govt. Sponsored Schemes- after retirement regulations in PSBs PMEGP, Education, employment generation scheme of SJSRY, SGSY and other poverty  CVC/CBI references relating to DRTs/DRATs alleviation programmes and other related matters,  Vigilance clearance, sanction of prosecution and VIP references, Audit Paras, CPGRAM, RTI, any other matter of Board level appointees of Parliament Questions, Assurances, Grievances, PSBs, FIs, PSICs, PFRDA, IRDA and RBI Budget Announcements, Coordination with RBI and State Govts  Vigilance matters of Officials in DFS, Officers of Office of Custodian and Government Officials in  Appointment and all personnel matters of Whole DRTs/DRATs. Time Director in SIDBI and NHB, Cybersecurity and FinTech (IT)  Appointment of Non-Official/Independent Directors and Government Nominee Directors in SIDBI and  Matters relating to overall cybersecurity for the NHB, financial services sector and in the Department  Laying of annual reports of SIDBI and NHB before  Coordination of FinTech and Deep Tech (artificial the parliament intelligence, big data, block chain, etc.) matters related to the financial services sector and the  All matters related to Pradhan Mantri Mudra Department (including matters related to e- Yojana (PMMY) payments in the banking system)  Micro Finance (IF-II) - Matters related to Micro  Matters relating to e-Governance in all FIs and e- Finance Institutions and Legislation thereon, Self Payments in banking system and computerisation Help Groups as well as NABARD's Micro Finance, of PSBs etc.  Promotion of digital payment including National  Matter related to psbloansin59minutes portal. Common Mobility Card (NCMC) scheme of MoHUA, Direct Benefit Transfer (DBT), Digital Vigilance Payment Infrastructure (DPI), matter related to  Consultation with CVC/CTE NPCI and its subsidiaries. 227Annual Report 2024-2025  Matters relating to Payment Regulatory Board Securitisation Asset Reconstruction and Security (PRB) constitution and matters related to PRB. Interest (CERSAI), a PSU, including the Central Registry under the SARFAESI Act, 2002.  Incentive scheme for Promotion of RuPay Debit Cards and low-value BHIM-UPI transactions Pension Reforms (PR) (person-to-merchant)  Reforms in the Pension Sector  Scorecard of banks for promotion of digital  Policy matters with respect to NPS, Atal Pension payments Yojana and Swavalmban Scheme  On-boarding of merchants on digital payment  Administration of PFRDA Act, 2013 platforms  Framing of rules under PFRDA Act, 2013  Matters related to various modes of digital payments including UPI, BHIM - QR, RuPay Debit  Appointments of Chairperson and Board member and Credit cards, IMPS, USSD, PoS, etc. of PFRDA, CVO in PFRDA, Budget and Funds of PFRDA and Legislative and policy prescriptions  Charges levied on various modes of payments to PFRDA. including Merchant Discount Rate (MDR) Parliament  Frauds related to various modes of digital payments including online frauds  Collection, identification and marking of Parliament Questions, Notices, admitted Questions, and  Matters related to app based digital payment and getting the files approved from the Minister digital lending platforms except regulation  Preparation of facts and replies for pads of  Banking matters relating to digital payment Ministers platforms  Keeping track and record of pending Assurances,  Coordination with NIC for the Department Special Mentions and References under 377 and  Management of the Department's website and web other matters as mentioned in the Induction services Material Debts Recovery Tribunals (DRT)  Presidential address to the Joint Session of Parliament  Establishment of DRTs/DRATs under the Recovery of Debts due to Banks and Financial Institutions  Compilation and submission of material for Act, 1993, Parliament Questions to other Ministries/ Departments  Administration of Recovery of Debts and Bankruptcy (RDB) Act, framing or amending rules  Parliamentary Committee Matters. for implementing of the provisions of the Act, Welfare Section (SCT)  Filling up of the posts of Chairpersons, Presiding  Matters relating to recruitment, promotion and Officers, Registrars, Assistant Registrars, welfare measures of SC/ST/OBC/PH and Ex- Recovery officers, and other posts in DRTs/DRATs, servicemen in Public Sector Banks/Financial  Issuing clarifications/guidelines etc. on Institutions and Public Sector Insurance administrative matters/review, Companies (PSBs/FIs/PSICs)  Progress and disposal of cases by DRT/DRATs,  Matter of policy regarding reservation for these categories in PSBs/FIs/PSICs, reservation  Budget provisions, monitoring, etc relating to matters in RRBs etc. DRTs/DRATs,  Inspection/examination of Reservation Roster for  Administration of SARFAESI Act, appointment of SCs/STs/OBCs in PSBs/FIs/PSICs. Registrar/MD & CEO, CERSAI, ease of doing business agenda- flowing from recent Establishment (Estt.) amendments,  Matters pertaining to the Officers and Staff of DFS  CKYC matters under Prevention of Money including RRs, appointment, ACRs, deputation Laundering Act, 2002, (including abroad), training, IWSU, SIU, welfare, review of officers under FR 56(J), internal vigilance,  Policy matters relating to Central Registry of staff grievances, pension, etc. 228Department of Financial Services V  Grant of various advances to officers and staff, f. Annual report of the CIC; payment of fees to advocates, settlement of g. Undertaking any other activity or medical claims and CGHS matters, family welfare programme. supplementary function which is required under the provisions of the RTI Act as notified Coordination (Coord.) from time to time  Organisation of FM's meetings with CEOs of  Preparation of the periodic monitoring reports PSBs and regional consultative committee regarding disposal of RTI requests/Appeals and meetings compliance of CIC instructions.  Staff Meeting of Secretary (FS)/ Senior Officers General Administration (GA) Meeting (SOM),  Housekeeping/Security matters, cleanliness,  Monitoring & Review of disposal of VIP references, stores, canteen, R&I, library, PMO references, coordination of RBI pending matters  Staff Car Drivers, vehicles to the officers of DFS  Parliament Questions regarding VIP references  Purchase of Computer Hardware and maintenance  Monthly DO letter to Cabinet Secretary from of Computers, Printers and other equipment Secretary (FS)  Maintenance of furniture and electricity items  Updation of Induction Material for DFS; Co-  Logistic support for arranging farewell of staff of ordination of VIP, PMO, President-Sectt.,etc, DFS references involving more than two Divisions of DFS.  Providing of Identity Cards to the Staff of DFS and RTI Cell CMDs/EDs/PROs of Public Sector Banks/ Financial Institutions/Insurance companies, etc.  Single reference point to receive applications, appeals, complaints and decisions of the Central Hindi Information Commission;  Implementation of Official Language Policy of the  Replies of all the RTI Applications/ Appeals Government through the respective Section/CPIOs;  Translation work relating to Parliament Questions  Uploading of all complaints and decisions of CIC  Standing Committees, Minutes of the Meetings on the computerised diary system;  Segregation of RTI applications/appeals pertaining  Hindi Teaching Scheme and other miscellaneous to life and liberty and forwarding the same to the work as mentioned in induction material of DFS. concerned CPIOs without delay so as to ensure Reservation Cell action/response within the timeframe specified in the Act;  Assistance to the Liaison Officer for smooth functioning and discharging of his duties and  Transfer of RTI applications not pertaining to this responsibilities as Liaison Officer for SC/ST/OBC/ Department to concerned Public Authority. EWS/PwD, preparation / maintenance of  Coordination of this Department regarding: reservation roster of SC/ST/OBC/EWS/PwD for the proper secretariat of this Department, reply a. Proactive disclosures under Section 4 of the to Parliament Questions/National Commission for RTI Act, 2005; SC/ST/OBC/PwD in respect of SC/ST/OBC/ b. Systematic changes that can be introduced EWS/PwD staff of the Department, maintenance to reduce the number of queries on a particular of data of SC/ST/OBC/EWS/PwD staff of the area/process; Department, submission of all reports/ information c. Formulation of FAQs on information that can to other Ministries/Departments/Parliamentary be accessed from the Department; Committees, etc. in the related matters. d. Information dissemination through identified Data Analysis (DA) means;  Reserve Bank of India Credit Policy - Busy e. Maintaining lists of CPIOs , FAAs and link Season - Slack Season and selective credit officers; control 229Annual Report 2024-2025  Financial sector assessment and sectoral credit  Management and updation of court cases of the analysis Department on LIMBS portal and keeping track of court cases of the Department on the websites  Banking Statistics regarding bank deposits and of Hon'ble Supreme Court/Hon'ble High Courts/ advances Hon'ble Central Administrative Tribunal etc.  Deposits and advances of banks  Receiving of court cases/correspondence related  Rates of interest on bank deposits and advances to court cases and their marking/distribution to concerned Sections  Dissemination of results and important information relating to RBI, IBA, studies on banking reforms  Payment of legal bills and matters related to appointment of Central Government Standing  Analysis of other international reports relevant to Counsel for the Department banking sector in India 4. Developments in Banking Sector  Analysis of Reports of committees on Financial Sector Reforms etc. 4.1 Overall condition of Banking Sector  Management Information System - collection,  The banking system in India, which evolved over collation of data relating to Banking Industry, several decades, is well established and has been serving the credit and banking needs of the  Result Framework Document (RFD), Speeches economy. The banking ecosystem is providing of FM/MOS on different occasions impetus to economic growth and development of  Audit Paras the country and catering to the specific and varied financial requirements of different customers and  UN e-Government Index & Digital Services borrowers.  Work related to committee of Financial Sector  To identify and address the issue of stress which Statistics remained hidden in the form of Standard Restructured Assets (SRAs) in the banking  Coordination of budget proposals of DFS. Matters system, RBI initiated Asset Quality Review (AQR) related to Budget Announcements, Output- in 2015 under which, after transparent recognition outcome Monitoring Framework by banks and withdrawal of the special treatment  Sustainable Development Goals - Indicators of restructured loans, stressed accounts were pertaining to DFS. reclassified as NPAs and expected losses on stressed loans, not provided for earlier as a result GST Cell of the special treatment, were provided for,  Overseas preparedness of all institutions under resulting in higher NPAs which peaked in 2018. DFS to implement GST, to provide inputs to the " Higher NPA and necessitated provisioning deeply Banking, Financial and Insurance" Sectoral Group impacted the financial parameters of banks and with reference to GST impeded their ability to grow and lend to productive sectors of the economy.  Other matters related to coordination, rollout and implementation of GST w.r.t institutions under  Government's commitment to reforms in the administrative control of DFS etc. financial sector was announced at "Retreat for Banks and Financial Institutions" called "Gyan Surplus Cell Sangam" held in 2015. Later in Aug-2015, Government launched "Indradhanush" scheme for  All service matters and day to day administrative comprehensive framework to revamp and improve matters related to surplus staff of AAIFR & BIFR financial state of PSBs including capital infusion including their redeployment plan over four years, from FY2015-16 to FY2018-  consultation with DoPT, handling of court cases 19. of surplus staff, RTI and personal matters of  Government implemented a comprehensive 4R's surplus staff such as leave, retrial benefits, perks strategy of Recognising NPAs transparently, & allowances etc. Resolution and Recovery, Recapitalising PSBs, Legal Monitoring Cell and Reforms in the financial system to address the challenges faced by PSBs. The measures  Monitoring of court cases and follow-up with taken by the Government/RBI, include, inter alia, concerned Sections to effectively meet the the following: timelines 230Department of Financial Services V 1. Credit discipline: purpose of taking possession of the secured assets by lenders within a period of thirty days  Enactment of the Insolvency and Bankruptcy from the date of application; Code  The Recovery of Debts and Bankruptcy Act, The Insolvency and Bankruptcy Code (IBC) has 1993 laid down a collective mechanism for resolution of insolvencies in the country by maintaining a The Recovery of Debts and Bankruptcy Act,1993 delicate balance for all stakeholders to preserve has been amended with the provision for three the economic value of the entities and to complete months imprisonment in case the borrower does the process in a time bound manner. It has: not provide details of property/assets other than those properties/assets specified by the lender  Empowered creditors of a Corporate Debtor; while filing the application to the DRT;  Led to behavioural change in the debtor-  Debt Recovery Tribunal creditor relationship by shifting the focus from the 'Debtor in Possession' to a 'Creditor in Jurisdiction of Debt Recovery Tribunal (DRTs) was Control' regime. increased from `10 lakh to `20 lakh to enable the DRTs to focus on high value cases;  Setting up of the Central Repository of Information on Large Credits  Proactively detection of stress Setting up of the Central Repository of Information To proactively detect stress and reduce slippage on Large Credits (CRILC) by RBI: into NPAs, following measures have been implemented:  To collects, stores and disseminates credit data to lenders; and  Automated Early Warning Systems (EWS)  Banks are required to submit report on weekly in banks; basis to CRILC, in case of any default by  Use of third-party data; and borrowing entities with exposure of ?5 crore  Workflow focussing on time-bound remedial and above. actions.  Systematic checking of high-value accounts  Regulatory framework for Asset for wilful default and fraud. Reconstruction Companies 2. Recognition and resolution of stress: To protect Regulatory framework for Asset Reconstruction financial institutions in case of default or payment Companies (ARCs) has been amended with an delay by large borrowers, RBI/Government has taken objective of: multiple steps which include, inter alia, the following:  Strengthening transparency in the ARC  Principle-based framework has been put in sector; and place for early recognition and time-bound resolution  Improving corporate governance standards in ARCs. A comprehensive principle-based framework has been put in place for early recognition and time-  Better management of the credit risk bound resolution of stress in the borrower accounts, manifesting in payment default. Market based mechanisms have been Delayed resolution is disincentivised under the strengthened to enable the financial institutions framework as lenders are required to make to better manage the credit risk on their balance additional provisioning in case of resolution plans sheets through a comprehensive framework for are not implemented within specified timeline. transfer of stressed assets to eligible transferees.  Securitisation and Reconstruction of 3. Enhanced Access & Service Excellence (EASE) Financial Assets and Enforcement of Security Through EASE framework, an objective process of Interest Act, 2002 incremental reforms in sync with the evolving ecosystem Securitisation and Reconstruction of Financial has been institutionalizedsss across PSBs. EASE Assets and Enforcement of Security Interest Act, Reforms Agenda, deeply ingrained in PSBs and a key 2002 (SARFAESI Act) has been amended and it priority for bank leadership, provides a common agenda was provided for the District Magistrate / Chief accounting for requirements of all banks and reflects the Metropolitan Magistrate to pass orders for the industry priorities from short- and long-term perspectives. 231Annual Report 2024-2025 Areas of continued focus include - Governance, prudential in banks, the financial health and robustness of lending, risk management, technology and data-driven banking sector has improved significantly. banking and outcome-centric HR. (a) As per Reserve Bank of India's provisional 4. Governance in PSBs data: Governance in PSBs has been strengthened through: (i) Asset quality has improved significantly with-  arm's length selection of top management through o Gross NPA ratio of SCBs declining to FSIB; 2.54%, the lowest in 13 years, (`4.64  introduction of non-executive chairmen in lakh crore) in Sep-24 from 4.28% (`3.23 nationalised banks; lakh crore) in Mar-15 and from a peak of 11.18% (`10.36 lakh crore) in Mar-18.  widening talent pool and instituting performance- based extensions for MD;  instituting appraisal by Boards of top management ` lakh crore and NODs;  widening the pool of eligible WTDs by including private sector executives for appointment of MD & CEO in large PSBs; and  recruitment of CXOs viz., Chief Risk Officer, Chief Compliance Officer, Chief Economist from the market. 5. Consolidation of PSBs Mar-15 Mar-18 Sept-24 With consolidation of banks, the efficacy of the banking sector has been enhanced by leveraging economies of  Gross NPA ratio of PSBs declining to scale and synergies. The consolidation exercise has 3.09% (`3.16 lakh crore) in Sep-24 from resulted in marked improvement in the financials and 4.97% (`2.79 lakh crore) in Mar-15 and governance in these banks. Profits of PSBs have reached from a peak of 14.58% (`8.96 lakh crore) all time high and they continue to expand their reach to Mar-18. every nook and corner of the country. Their capital base o Net NPA of SCBs declining to `1.01 lakh has strengthened and their asset quality has improved. crore (decadal low of 0.57%) in Sep-24 Banks are now raising capital from the market instead of from `2.31 lakh crore (3.13%) in Mar-15 depending upon the Government for recapitalization. and from a peak of `5.2 lakh crore (5.94%) in Mar-18. 6. National Asset Reconstruction Company Ltd. ` lakh crore National Asset Reconstruction Company Limited (NARCL) and Asset Management Company (IDRCL) have been set up to consolidate and take over the existing stressed debt and then manage and resolve the accounts by implementation of various resolution strategies including disposing of the assets to Alternate Investment Funds and other potential investors for eventual value realization. NARCL has enabled transfer of bad debts of the banks from their balance sheets to the former, and has also enabled freeing up human resources from recovery functions, for productive business development, including Mar-15 Mar-18 Sept-24 credit deployment.  Impact of reforms  Net NPA of PSBs declining to `0.63 lakh As a result of Government's overarching policy crore (0.63%) in Sep-24 from `2.15 lakh response to recognition of stress, resolution of crore (3.92%) in Mar-15 and from a peak stressed accounts, recapitalisation and reforms of `4.54 lakh crore (7.97%) in Mar-18. 232Department of Financial Services V (ii) Resilience has increased with- o CRAR of PSBs improving by 393 bps to reach 15.38% in Sep-24 from 11.45% in  Provision coverage ratio (PCR) of SCBs Mar-15. increasing from 49.31% in Mar-15 to a healthy 92.88% in Sep-24. (iv) Highest ever aggregate net profit During FY24, SCBs have recorded highest ever aggregate net profit of `3.50 lakh crore against net profit of `2.63 lakh crore in FY23, and recorded aggregate net profit of `1.99 lakh crore in the first half of FY25. In FY24, PSBs have recorded highest ever aggregate net profit of `1.41 lakh crore against net profit of `1.05 lakh crore in FY23, and recorded `0.86 lakh crore in the first half of FY25. o PCR of PSBs increasing from 46.04% in Mar-15 to a healthy 93.82% in Sep-24. (iii)Capital adequacy has improved significantly with-  CRAR of SCBs improving by 383 bps to reach 16.77% in Sep-24 from 12.94% in Mar-15. (b) Dividend PSBs declared dividend of `27,830 crore to shareholders (GoI share `18,013 crore) in FY24 against total dividend of `20,964 crore to shareholders (GoI share `13,804) in FY23. (c) Market raising of capital Enabled by implementation of comprehensive reforms, the financial health of PSBs has improved significantly, enhancing their ability to raise capital (in the form of both equity and bonds) from the market. PSBs have mobilised capital of `4.72 lakh crore from the market from FY15 to FY25 (up to 31.12.2024). 233Annual Report 2024-2025 (d) Prompt Corrective Action various reasons such as high pace of digitalization, the growing role of specialized and dedicated verticals, Banks, earlier placed under Prompt branch expansion etc. The number of executives from Corrective Action (PCA) framework by the post of AGM to CGM, were 5800 across all RBI, have made significant improvement nationalised banks. resulting in removal of each one of them from the PCA restrictions. Present Status: The Finance Minister, in the year 2024, has approved the creation of CGM post in (e) NARCL remaining five nationalized banks (i.e.) Bank of As on 14.1.2025, NARCL has acquired Maharashtra, Central Bank of India, Indian Overseas 24 borrower entities, with an aggregate Bank, Punjab & Sind Bank and UCO Bank. While debt exposure of `105,008 crores. (Out creating the said post, the Finance Minister has also of these 24, NARCL is acting as approved the increase in the existing number of CGMs Resolution Applicant in 2 cases with total in the banks that already have CGM level posts. This debt exposure of `32,815 crore). NARCL step will significantly enhance the administrative has given offers in 2 accounts (Debt structure and efficiency of banks. Exposure of `49,999 crore) where swiss CGM post acts as an administrative and functional challenge is underway. layer between the General Manager (GM) and the Executive Director (board level post) in the ` crore Nationalized Banks. The increase of CGM posts will enhance the capability of banks to better monitor critical positions such as digitalisation, cyber security, fin-tech, risk, compliance, rural banking, financial inclusion etc., and sub-domains like retail Credit, Agri- credit, MSME Credit etc., thereby leading to more targeted strategies and improved overall performance. Increase in the number of CGMs will further enable the banks to have a better control and supervision 4.2. Important decisions / Initiatives taken thereby resulting in improved asset management and operational efficiency. a) Review of guidelines on the number of posts of Chief General managers (CGMs) / General The number of posts has been revised based on Managers (GMs) / Deputy General Managers the business mix of the banks as on 31.03.2023, with (DGM)s / Assistant General Managers (AGMs) the ratio of one CGM for every four GMs. This creation / increase will not only benefit the GMs elevating to Status as on last year: With a view to make the the post of CGM but also benefit the immediate lower span of control more manageable and effective, levels of executives, below GM level posts i.e. Deputy Government in the year 2019 had conveyed 'no General Managers (DGM) and Assistant General objection' to introduce Chief General Manager (CGM) Managers (AGM), as with the increase of 01 CGM post, below board level, in those Nationalised Banks level post, there will be an increase in 04 GM posts, (NBs) having a total business of Rs. 10 Lakh crore or 12 DGM posts and 36 AGM posts. higher. Accordingly, CGM post was available in six out of eleven Nationalized Banks. The remaining banks With the revision, the number of CGM posts in all have been approaching the Government for making the 11 Nationalised Banks has been increased from available the CGM post in their banks also. There was 80 to 144. Accordingly, the number of GM posts has also a demand from all the NBs to review existing been revised from 440 to 576, the number of DGM methodology for fixing the number of executives citing posts from 1320 to 1728 and the number of AGM posts 234Department of Financial Services V from 3960 to 5184. Post enhancement at the senior management level will lead to increased oversight and will result in better identification and mitigation of risks, especially in complex financial environments. This significant step has been taken keeping in Present Status: The ceiling on SWF has been thoroughly view the demands being received from various banks revised in the year 2024, after taking into consideration and also due to the substantial growth in business, the number of employees and retirees in PSBs as of 2024 and the change in the business mix of the PSBs. PSBs verticals, domains and branch expansions of the banks were categorized into four different slabs based on their that require a dedicated pyramid of executives at the business mix and the employee strength and the combined senior level maximum annual expenditure ceiling of SWF for all the 12 PSBs has increased from Rs.540 crore to Rs.845 crore. b) Revision in the ceiling on the Staff Welfare Fund This increase will benefit 15 lakh staff including the retired in Public Sector Banks (PSBs) - Staff welfare fund employees of all the 12 PSBs. A graphical presentation in (SWF) is a fund allocated by the PSBs for the welfare- this regard is as under: related activities (health-related expenses, subsidies on canteen, sports and cultural activities, education- related financial assistance etc.) in respect of working and retired officials of PSBs. SWF was given a fillip by increasing the maximum ceiling of annual spending. Status as on last year: PSB were using the SWF ceiling as per the revision made in year 2012. Post amalgamation in 2019/2020, PSBs were using combined ceiling of amalgamated banks. The combined maximum annual expenditure ceiling of SWF for all PSBs was Rs 540 Crore. The ceiling on SWF was ranging earlier from Rs. 15 Cr to 150 Cr. among PSBs. 235Annual Report 2024-2025 This measure reflects the Government's commitment to support the welfare of both current employees and retirees of PSBs, recognising the rising cost of welfare services and the expanded workforce following recent mergers. These welfare initiatives shall boost the workforce morale and help create a supportive environment, essential for continued growth in India's banking sector. c) Revision of Crisis Management Plan (CMP) - The iv. Inclusion of a Scheduled Commercial Bank other CMP, first formulated in the year 2019 and modified than PSBs in the Steering Committee; subsequently in the year 2021, is invoked for an v. Provision for background checking, vetting of industry-wide strike in Banking Industry for three or integrity, physical security plan and mock drill in more days. It involves proactive preparation, banks; communication, and coordination to minimize disruption, ensure stakeholder safety and restore vi. Coordination of SLBCs and LDMs with the Local operations swiftly. Based on the observation of the Administration to maintain law & order during Secretary (Security), Cabinet Secretariat and the strike; suggestions of the stakeholders, the CMP has been vii. Defining role of banks based on their geographical revisited and revised CMP-2024 has been circulated position; to all PSBs to make their Standard Operating Procedures (SOP) in line with CMP-2024 of this viii. Mitigating the Crisis by ensuring full functioning Department. of Critical Infrastructure like Currency Chests, Cheque Clearing Processing Centres (CCPCs), Highlights on new inclusions in CMP-2024 : The Data Centres, Data Recovery Centres, Treasury highlights of the modifications done in the CMP - 2024 Operations etc. are as under: The CMP 2024 provides a comprehensive framework i. Inclusion of Crisis Information Flowchart as per for handling potential industry-wide strikes in the the GOI guidelines; banking sector, ensuring minimal disruption to ii. Clarification on the role of Crisis Management services. It establishes Crisis Management Teams at Group; multiple level and a coordination framework among them, enabling banks to prepare for strike situation, iii. Defined composition, role and responsibilities of mitigate operational vulnerability during strikes and 'Monitoring Committee' and 'Crisis Management sustain core operations including critical infrastructure Team'; like ATMs and data centres. 236Department of Financial Services V The CMP ensures that customers are also informed The revised PLI Scheme shall evaluate performance about strike timelines and have access to essential on detailed Evaluation Matrix comprising of four equally services through alternative channels such as mobile weighted Evaluation Parameters - (i) Efficiency, (ii) & internet banking. This comprehensive approach Business, (iii) Asset Quality and (iv) Financial Inclusion helps maintain trust, enabling banks to uphold stability (including EASE reforms). The first three parameters and protect customer interests during potential crises. are further divided into 12 sub-parameters. The d) Performance Linked Incentive Scheme for performance evaluation on these sub-parameters shall Whole-time Directors and senior executives in be made using different Evaluation Methodologies such PSBs: as comparing performance with previous year's performance of the bank, comparing performance with Status as per last year: average performance of Scheduled Commercial Bank Earlier Performance Linked Incentive (PLI) Scheme and Public Sector Banks and performance in respect was introduced to suitably reward and motivate Whole- of allocated targets. Further, under parameter (iv), Time Directors (WTDs) of Public Sector Banks (PSBs) performance of all the PSBs are assessed on the basis only. The eligibility for PLIs for the WTDs of the PSBs of achievement of targets for flagship schemes for was evaluated on the basis of Key Performance financial inclusion. Indicators (KPI) approved by the Finance Minister. The maximum amount of PLI payable to Managing Director Under the revised PLI Scheme, the maximum amount & Chief Executive Officer was Rs. 8 Lakh and to of incentive for WTDs has been increased to their Executive Director was Rs. 6.5 Lakh. This Scheme annual basic pay. Similar provision, with suitable was not applicable to other officers of the banks. modification, has been made for senior executives in The increasing presence, dominance and swift ability the scale-IV to scale - VIII. The revised Scheme will to embrace system-driven changes by other players foster a sense of accomplishment, encourage in the market like Private Sector Banks, Foreign continuous learning and innovation and promote Banks, Payment Banks, Small Finance Banks and competitive atmospheres that will boost the other financial sector participants such as Non- productivity. The Scheme is effective from FY 2023- Banking Financial Institutions (NBFCs) and other FIs 24. have changed the scope of banking in multitudes and are forcing the PSBs to evolve beyond traditional 4.3.Regional Rural Banks banking. These changes are required to be aptly recognized and accordingly the compensation The Regional Rural Banks (RRBs) were established package, scheme coverage and KPIs with its evaluation under the RRBs Act, 1976 to create an alternative matrix are required to be revised to reflect present channel for credit dispensation to small and marginal market position. farmers, agricultural laborers, socio-economically weaker section of population for development of Current Status: agriculture, trade, commerce, small scale industry and Accordingly, Finance Minister has approved a revised other productive activities in rural areas. As on 31 Scheme for Performance Linked Incentive with the March 2024, 43 RRBs are operating through a network objective to suitably reward and motivate WTDs of of 22,069 branches in 26 States and 3 Union Territories PSBs. Further, for greater inclusivity, the revised PLI (Puducherry, Jammu & Kashmir, Ladakh) covering 700 Scheme has been made applicable to senior districts of the country. The RRBs are jointly owned executives from Scale-IV to Scale - VIII (i.e. Chief by the Central Government, the concerned State Manager to Chief General Manager) duly recognising Government and the Sponsor Banks with shareholding the leadership role played by them in efficient steering of the bank's performance. in the ratio of 50:15:35 respectively. 237AAnnnnuuaall RReeppoorrtt 20220(cid:23)2-42-0220525 4.3.1. Role of RRBs: (iv) 92% of the branches of RRBs are in rural and semi urban areas. RRBs have a share of 29% in RRBs have a mandate to ensure rural development the number of rural bank branches. In the rural and foster financial inclusion. The contributions being areas of aspirational districts, RRBs have about made by RRBs as a whole at present, are briefly as 40% of the bank branches. Moreover, many RRBs under: have branches in remote areas and they are (i) Of the total loans extended by RRBs, as on 31st providing financial services to vulnerable sections. March 2024, over 87% of loans are extended to (v) In rural areas, the share of deposit accounts of the priority sector, and about 67% is towards agriculture sector. Of the total loans, about 61% RRBs is about 25% and RRBs have the highest of are extended to weaker sections of the society. average balance in PMJDY accounts amongst all categories of banks. In North-eastern region, (ii) RRBs play a significant role in extending micro RRBs cater to the banking needs of about 38% credit. They account for 31% of the SHG loan of the rural people. As against the overall rural CD accounts and 25% of the total loan amount is Ratio of 70% for all the Scheduled Commercial extended to SHGs. Nearly 19% of the total KCCs Banks, RRBs had a rural CD Ratio of 79% as on have been issued by the RRBs. 31 March 2024. As a result of a healthy credit (iii) Share of RRBs in total accounts/enrollments under growth of RRBs during the previous 3 years, the Government Sponsored Schemes like PMJDY, consolidated CD ratio of RRBs improved to 71.4 PMJJBY, PMSBY, APY, etc. varies from 15% to % as on 31 March 2024, which was the highest 20%. CD Ratio in over 33 years. reinventing themselves as sustainably viable and self- 4.3.2. Recapitalization Scheme: sufficient financial institutions and for leading the The Government of India along with other stakeholders growth process and the change in rural areas. The of RRBs viz concerned state government and sponsor capital infusion is to help RRBs in technology banks recapitalise them to help RRBs meet the adoption and to efficiently cater to the financial regulatory requirement of 9% CRAR (Capital to Risk inclusion needs of the rural populace. Weighted Assets Ratio). Infusion of capital in RRBs is done with an aim to rejuvenate and revitalise the Further, the recapitalisation scheme is accompanied RRBs with sufficient growth capital to facilitate by operational and governance reforms under the broad 238Department of Financial Services V ambit of Sustainable Viability Plan (SVP) with a well- operational and governance reforms. The RRBs defined implementation mechanism aimed at credit demonstrated a significant improvement in key expansion, business diversification, NPA reduction, financial indicators under the viability plan. Therefore, cost rationalisation, technology adoption, the balance amount of Rs.1,361 crore was infused improvement in corporate governance etc. into the RRBs during the FY 2023-24 and 2024-25. 4.3.3. Progress & Outcome: iii) In this backdrop, the performance of RRBs has i) The last recapitalization support was provided to RRBs improved significantly during FY 2023-24 and has as a one-time upfront recapitalisation of Rs.5,445 crore reached historic highs on several parameters. RRBs as GoI share, approved by Expenditure Finance posted highest ever consolidated net profit of `7,571 Committee (EFC) in its meeting held on 11.10.2021, crore during FY 2023-24 and their consolidated CRAR 75% of which i.e. Rs.4,084 crore was infused into the was at an all-time high of 14.2% as on 31 March 2024. RRBs during the FY 2021-22. The balance 25% of The asset quality measured by GNPA (Gross Non- recapitalisation support of Rs.1,361 crore as GoI share Performing Assets) at 6.1% was the lowest in previous was to be infused during the year 2022-23, upon 10 years. Credit expansion led to an increase in demonstrable improvement in the operational and consolidated CD ratio to 71.4%, which was the highest governance reforms as per the Viability Plan. in over 33 years. The pace of technology adoption ii) Accordingly, each RRB prepared a 3-year Board has increased as more RRBs have started rolling out approved Viability Plan in FY 2022-23 encompassing digital services to their customers. Consolidated Net Profit of 43 RRBs 4.3.4.Important Developments in the context of RRBs in FY 2024-25: 4.3.4(i).Review meetings of RRBs by Hon'ble Union Finance Minister: Hon'ble Union Finance Minister chaired meetings in different regions of the country to review the functioning of RRBs. The details of the review meetings held during 2024-25 are as follows: Sr. Region Place Date of Review No. 1 National Level Review of all RRBs New Delhi 19 August 2024 2 Western & Central Region Udaipur, Rajasthan 22 August 2024 3 Northeastern Region Itanagar, Arunachal Pradesh 30 September 2024 4 Southern Region Bengaluru, Karnataka 09 November 2024 5 Eastern Region Patna, Bihar 29 November 2024 239Annual Report 2024-2025 4.3.4(ii). Initiation of process for Phase-IV their exposure, Government of India (GoI) initiated Amalgamation of RRBs: structural consolidation of RRBs in FY 2004-05, which has resulted in reduction in the number of RRBs from In terms of section 23A of RRBs Act, 1976, Central 196 to 43 till FY 2020-21 through 3 phases of Government, after consultation with NABARD, the amalgamation. concerned State Government and the Sponsor Bank may amalgamate, in public interest, two or more RRBs In order to retain the USP of RRBs viz. the closeness in a State. to rural communities, and derive the benefits of scale With a view to enable RRBs to minimize their overhead efficiency and cost rationalisation, GoI has decided expenses, optimize the use of technology, enhance to embark on further consolidation of RRBs towards the capital base and area of operation and increase the goal of 'One State-One RRB'. 4.3.4(iii) Performance of RRBs under Financial security schemes The comparative performance of Regional Rural Banks (RRBs) versus all banks under financial inclusion schemes is provided below. Additionally, the performance of RRBs under the Atal Pension Yojana (APY), Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Pradhan Mantri Suraksha Bima Yojana (PMSBY) is detailed below. Table I: Performance under Financial Inclusion Schemes- Cumulative Accounts / Enrolments in Crore 31-Mar-23 31-Mar-24 YoY Growth (%) Government RRBs RRBs S.N RRB All RRB All All Scheme Share Share RRBs s Banks s Banks Banks (%) (%) Pradhan Mantri Jan 1 9.13 48.65 18.8 9.83 51.99 18.9 7.7 6.9 Dhan Yojana Pradhan Mantri 2 Suraksha Bima 5.22 33.78 15.5 7.24 43.69 16.5 38.7 29.3 Yojana Pradhan Mantri 3 Jeevan Jyoti Bima 2.24 15.99 14.0 3.17 19.85 15.9 41.5 24.1 Yojana Atal Pension 4 0.98 5.20 18.8 1.25 6.44 19.4 27.6 23.8 Yojana i. Atal Pension Scheme (APY): The number of accounts under APY has been steadily increasing each year. There has been a growth of 28.24% over previous FY and cumulative number of accounts of all RRBs reached to 1.26 crore as on 31 March 2024. Cumulative no. of accounts under APY of all RRBs (Source: Data sourced from RRBs via RRB Darpan Portal) 240Department of Financial Services V ii. Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts in RRBs: The number of accounts under PMJDY has been steadily increasing each year. There was a growth of 7.7% over the previous financial year, bringing the cumulative number of accounts across all RRBs to 9.84 crore by the end of FY 2023-24. Cumulative no. of accounts under PMJDY of all RRBs (Source: Data sourced from RRBs via RRB Darpan portal and PMJDY website) iii Pradhan Mantri Jivan Jyoti Bima Yojana (PMJJBY) in RRBs The number of accounts under PJJBY has been steadily increasing each year. There was a growth of 41.2% over the previous financial year, bringing the cumulative number of accounts across all RRBs to 3.17 crore by the end of FY 2023-24 Cumulative no. of accounts under PMJJBY of all RRBs (Source: Data sourced from RRBs via RRB Darpan Portal) 241Annual Report 2024-2025 iii. Pradhan Mantri Suraksha Bima Yojana (PMSBY) in RRBs: The number of accounts under PMSBY increased by 38.8% over previous FY, bringing the cumulative number of accounts across all RRBs to 7.24 crore by the end of FY 2023-24. Cumulative no. of accounts under PMSBY of all RRBs (Source: Data sourced from RRBs via RRB Darpan Portal) 4.3.4(iv)The overall of performance of all the 43 RRBs on key financial parameters for the year 2023-24 is given in the table below: Key Financial Parameters: (Amount in ` crore) Particulars 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 No. of RRBs (No.) 43 43 43 43 Branch Network (No.) 21,856 21,892 21,995 22,069 Share Capital 8,393 14,880 17,232 19,042 Reserves 30,348 34,359 40,123 46,659 Deposits 5,25,226 5,62,538 6,08,509 6,59,815 Borrowings 67,864 73,881 84,712 92,444 Investments 2,75,658 2,95,665 3,13,401 3,19,099 Gross Loans & Advances O/s 3,34,171 3,62,838 4,10,738 4,70,109 No. of RRBs earning Profit 30 34 37 40 Amount of Profit (A) 3,550 4,116 6,178 7,796 No. of RRBs incurring Losses 13 9 6 3 Amount of Losses (B) 1,867 897 1,205 225 Net Profit of RRBs (A – B) 1,682 3,219 4,974 7,571 GNPA (Amount) 31,381 33,190 29,894 28,913 GNPA (%) 9.4 9.1 7.3 6.1 4.4 Digital Payments the same period, the value of digital payment transactions has grown from ` 952 lakh crore to ` The Government has been taking various initiatives 3,659 lakh crore. In the current financial year till 31st for promotion of digital transactions in the country, December 2024, number of digital payment especially the creation of digital public infrastructure transactions stands at 16,544 crore and value stands (Aadhar, UPI, Account Aggregator Framework, Digi at ` 2,727 lakh crore. Locker, CBDC, ONDC etc.). The digital payment transactions in the country has seen tremendous In July 2023, Promotion of Digital Payments has been growth, especially after FY 2013-14. As per ACI transferred from MeitY to Department of Financial Worldwide Report 2024, around 49% of the global real- Services vide Cabinet Notification No.1/21/6/2023-Cab. time payment transactions is happening in India. The dated 17th July 2023. Department of Financial Services digital payment transactions have grown from 220 crore is coordinating with various stakeholders for proliferation in FY 2013-14 to 18,737 crore in FY 2023-24. During of digital payment ecosystem in the country. 242Department of Financial Services V 1. Progress in Digital Payment Transactions:  UPI transactions increased significantly from 1.14 billion transactions per month in October Digital payments have significantly increased in recent years as a result of coordinated efforts of the 2019 to a staggering 16.73 billion (1,673 Crore) Government with all stakeholders. The digital payment transactions per month in December 2024. transactions have grown from 2,071 crore in FY 2017- 18 to 18,737 crore in FY 2023-24. During the same UPI -Volume (in crore) period, the value of transactions has grown from ` 57% 1,962 lakh crore to ` 3,659 lakh crore. In the current YoY Growth 82% 13116.4711 financial year till 31st December 2024, number of 106% digital payment transactions stands at 16,544 crore 78% and value stands at ` 2,727 lakh crore. 134% 8375.1017 485% Number of Digital Payment Transactions (In Crore) Volume (in crore) 39% 4596.7568 YoY Growth 52% 18736.5035 2233.0654 59% 1251.8619 21% 91.5235 535.3403 46% 13462.3643 FY2017-18 FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 51% Source: NPCI UPI -Value (in `lakh crore) 8839.0799 44% YoY Growth 65% 5553.8216 199.867 4571.7438 105% 3133.5812 2070.888 93% 139.2066 143% FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 698% 84.1773 Source: RBI, NPCI, DIGIDHAN PORTAL a. Unified Payments Interface (UPI) is an 41.0365 indigenous digital payment system which provides 8.7697 21.3173 1.0983 the facility of quick and easy payments from FY2017-18 FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 multiple bank accounts in a single mobile Source: NPCI application. UPI has revolutionized digital payments in the country, UPI transactions have b. Internationalization of Digital Payments: grown from 92 crore in FY 2017-18 to 13,116 crore  India's indigenously developed UPI and in FY 2023-24. During the current financial year RuPay cards are world class platforms for till 31st December 2024, number of UPI enabling digital payments. Government is transactions stands at 13,446 crore. It is making efforts to promote these products estimated that the UPI transactions are expected globally. to cross 20,000 crore in FY 2024-25.  At present UPI is fully functional and live in 7  The introduction of the UPI in FY 2016-17 countries i.e. UAE, Bhutan, Nepal, Mauritius, has helped India establish itself as one of France, Sri Lanka and Singapore the global leaders in real-time payment systems and overall growth of digital  RuPay cards acceptance is live in 6 countries transactions. As per ACI Worldwide Report i.e., Nepal, Bhutan, Mauritius, Singapore, 2024, around 49% of the global real-time UAE and Maldives. payment transactions is happening in India.  UPI has been the major driving force in the overall growth of digital payment transactions in the country accounting for 81% of digital payment transactions in FY 2024-25 (till 31st December 2024).  Peru is set to adopt India's UPI tech stack to create their fast payment system, making it the first South American country to do so. This is a big step forward for digital payment systems around the world. *Data till 31st December 2024 243Annual Report 2024-2025  NPCI International Payments Limited (NIPL) operationalized the Payments Infrastructure Development signed an MoU with Google wherein both Fund (PIDF) Scheme from January 1, 2021, for a period of entities will work together to enable the use three years. On December 29, 2023, the scheme was of UPI for Indian citizens travelling further extended up to December 31, 2025. The objective internationally, create an UPI like digital of the Scheme is to encourage acquirers (banks and payment system which will internationally nonbanks) and merchants by subsidizing deployment of interoperable, and make cross border interoperable payment acceptance infrastructure in Tier-3 remittances quick and cost effective. to Tier 6 centers with special focus on the North-Eastern  Further, a Task Force on Digital Public states of the country and Union Territories of Jammu and Infrastructure has been set up by the Kashmir and Ladakh. The Scheme envisages creation of Government to oversee and accomplish India's 30 lakh new touch points for digital payments every year. G20 Presidency goals on digital public Since August 2021, eligible street vendors of the PM Street infrastructure and promoting innovative Vendor's AtmaNirbhar Nidhi (PM SVANidhi Scheme) in technology-based services such as UPI along with the governance frameworks. Tier-1 and Tier-2 centers have been included as beneficiaries of the PIDF Scheme. Further, now with the 2. Digital Payment Infrastructure: Coordinated efforts extension of the scheme, the beneficiaries of PM of ecosystem partners have led to an exponential Vishwakarma Scheme, across the country, have been growth in digital payments acceptance infrastructure included as merchants for deployment under the PIDF in the country, increasing from 0.31 crore as on March 2018 to 64.98 crore as on December 2024. Scheme since its inception. As on 31.3.2024, a total of 3.14 crore payment acceptance devices have been Payment Infrastructure Development Fund (PIDF) deployed at eligible locations under the PIDF Scheme. Scheme: The figure as on 30.11.2024 stands at 4.03 crore payment RBI has, vide circular dated January 5, 2021, acceptance devices. Deployment Status (as on 30.11.2024): Location Physical Devices Digital Devices Soundbox Devices Aadhar enabled biometric devices Tier 3 & 4 Centres 6,20,590 1,18,92,988 12,40,343 7,166 Tier 5 & 6 Centres 5,81,647 1,86,86,747 21,93,062 21,949 North-eastern States 1,09,833 19,06,327 1,89,370 3,665 UTs of J&K and Ladakh 49,841 10,51,077 1,05,153 222 Tier 1 & 2 Centres (PM 2,503 15,58,270 30,668 0 SVANidhi Scheme) Tier 1 & 2 Centres (PM 10 5,467 961 0 Vishwakarma Scheme) Total 13,64,424 3,51,00,876 37,59,557 33,002 Total Touchpoints 4,02,57,859 Source : RBI 244Department of Financial Services V 3. Incentive Scheme for RuPay and UPI: 4.5.1 Initiatives To support payment system participants to mitigate DFS conducts regular meetings to review the progress adverse impact of zero MDR and to promote digital of Account Aggregator with all Financial Sector Regulators payment, the "Incentive scheme for promotion of RuPay i.e. RBI, IRDAI, PFRDA and SEBI, PSBs, all Public Sector Debit Cards and low-value BHIM-UPI transactions (person- Insurance Companies (PSICs), NABARD, DEA, GSTN, to-merchant- P2M)" was launched. The scheme was SIDBI & other stakeholders. As per the data collected by based on the budget announcements, for FY2021- 22 and FI plan portal, so far more than 221 crore transactions FY2022-23, with the intent to provide financial incentive to have taken place for successfully sharing of data via AA. promote digital payment modes. Under the Scheme, Banks and other payment system operators and app providers are incentivized for RuPay Debit Card and low-value BHIM- UPI transactions (upto 2,000) (P2M). For FY 2023-24, the scheme was announced in Budget 2023-24 as part of budget speech. The Scheme was notified by the Department of Financial Services (DFS), Government of India vide Gazette Notification dated 12th March 2024, for a period of one year, i.e., from 01st April 2023 till 31st March 2024. Out of the total scheme outlay of ` 3,637 crore, ` 367 crore was allocated for RuPay Debit Card and ` 3,270 crore was allocated for BHIM-UPI. Graph 2: Trends in transactions through AA (Amount in ` Crore) 5. Financial Inclusion FY Sanction Budget Disbursement 5.1. Pradhan Mantri Jan Dhan Yojana (PMJDY) 2021-22 ` 1,450 ` 1,389 2022-23 ` 2,600 ` 2,210 With a view to increase banking penetration, promote 2023-24 ` 3,637 ` 3,631 financial inclusion and to provide at least one bank account per household across the country, a National Mission on Financial Inclusion (FI), known as Pradhan Mantri Jan Dhan Yojana (PMJDY) was announced on 15th August, 2014. The Scheme was formally launched on 28th August, 2014 at National level by the Hon'ble Prime Minister. Comprehensive financial inclusion of the excluded sections was proposed to be achieved by 14th August, 2018 in 2 Phases as under:  Phase I (15th August, 2014 - 14th August, 2015) Universal access to banking facilities in all areas, except those with infrastructural and connectivity 4.5 Account Aggregator constraints and providing basic banking accounts and Account Aggregator (AA) is a Non-Bank Finance RuPay Debit card with inbuilt accident insurance cover of Company (NBFC) engaged in the business of providing Rs. 1 lakh and organizing Financial Literacy Programmes. the service of retrieving or collecting financial information pertaining to the customer. No financial information of the  Phase II (15th August, 2015 - 14th August, 2018) customer is retrieved, shared or transferred by AA framework without the explicit consent of the customer. Overdraft (OD) facility upto Rs.5,000 to be given after AA transfers data from one financial institution to another six months of satisfactory operation/history. Creation of based on an individual's instruction and consent. In this Credit Guarantee Fund for coverage of defaults in overdraft direction, RBI has issued the Master Direction viz Non- accounts and unorganized sector pension schemes like Banking Financial Company (NBFC) - Account Aggregator Swavlamban. (Reserve Bank) Directions, dated September 02, 2016.  Extension of PMJDY Entities may enrol themselves on AA framework as Financial Information Provider (FIP) viz. banking company, PMJDY was extended beyond 14.8.2018 with the NBFC, asset management company, depository, depository focus on opening of accounts shifting from "every participant, insurance company, insurance repository, household" to "every unbanked adult" while making the pension fund etc. and as Financial Information User (FIU) scheme more attractive with upward revision in: - which is an entity registered with and regulated by any financial sector regulator. At present, RBI has granted a. OD limit from Rs.5,000 to Rs.10,000; Certificate of Registration to fifteen companies as AA. b. accident insurance cover on RuPay card holders The RBI circular broadly provides guidelines, inter alia from Rs.1 lakh to Rs.2 lakh; on process of Registration, Consent Architecture, Data Security, Technical Specifications, Sharing of Financial c. age limit for availing OD facility revised from Information by Financial information Providers and Use of 18- 60 years to 18-65 years; and information by Account Aggregator and Financial Information User. d. no conditions attached for OD up to Rs. 2000. 245Annual Report 2024-2025 5.1.1 Performance of PMJDY Major achievements of PMJDY are as under: (Numbers in Crore) As on PMJDY No of No of PMJDY No of PMJDY No of PMJDY Deposits in Accounts PMJDY Accounts accounts Accounts PMJDY (in crore) Accounts (Female) (rural/ Semi- (Urban/Metro) Accounts (in (Male) urban) Rs. crores) 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 11.30 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 March'23 48.65 21.60 27.05 32.45 16.20 1,98,844 March'24 51.95 23.05 28.90 34.58 17.36 2,32,502 As on 54.50 24.17 30.33 36.28 18.22 2,44,381 08.01.2025 246Department of Financial Services V Major Trends under PMJDY 247Annual Report 2024-2025  A total of 54.50 crore Jan-Dhan accounts have been accounts opened before 28.08.2018) coverage has opened till 08.01.2025 under PMJDY, with a deposit also been provided to PMJDY account holders. balance of Rs.2,44,381 crores. The average deposit  Out of total operative accounts opened under PMJDY, balance is approx. Rs.4,484 per PMJDY account 88.6 % have been seeded with Aadhaar number of balance the account holder on user consent basis, which has enabled interoperable and immediate Aadhaar based  There are 30.33 crore (55.7%) women Jan-Dhan transactions, including for Direct Benefit transfer (DBT) account holders, with about 36.28 crore (66.6%) through Aadhaar Payment Bridge. accounts opened in rural and semi-urban areas. 5.1.2 Banking Touch Points: The strength of bank  Approximately 37.23 crore RuPay cards with an inbuilt branches and ATMs has been augmented over the years accidental insurance of Rs.2 lakh (Rs.1 lakh for as indicated below: Table 1: Number of bank branches of Scheduled Commercial Banks: RURAL SEMI-URBAN URBAN METROPOLITAN TOTAL Mar-17 49,860 38,931 25,103 26,530 1,40,424 Mar-18 50,860 39,616 25,458 26,536 1,42,470 Mar-19 51,609 41,031 26,399 27,157 1,46,196 Mar-20 52,382 42,213 27,318 28,133 1,50,046 Mar-21 52,651 42,441 27,446 28,055 1,50,593 Mar-22 53,204 42,443 27,433 28,181 1,51,261 Mar-23 54,244 43,745 28,021 29,057 1,55,067 Mar-24 55,213 45,101 29,083 30,319 1,59,716 Sep-24 55,532 45,557 29,455 30,737 1,61,281 Source: RBI 248Department of Financial Services V 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 1,10,111 1,01,950 2,12,061 31.03.2017 1,12,666 1,09,809 2,22,475 31.03.2018 1,15,471 1,06,776 2,22,247 31.03.2019 1,15,323 1,06,380 2,21,703 31.03.2020 1,21,086 1,13,271 2,34,357 31.03.2021 1,22,983 1,15,605 2,38,588 30.09.2021 1,25,220 1,15,762 2,40,982 31.03.2022 1,29,766 1,16,794 2,46,560 31.03.2023 1,31,684 1,23,613 2,55,297 31.03.2024 1,27,301 1,26,116 2,53,417 30.09.2024 1,22,779 1,27,929 2,50,708 Source: RBI * includes ATMs deployed by White Label ATM Operators 249Annual Report 2024-2025 The number of card acceptance devices of Point of Sale IPPB have been provided login credentials to upload the (POS) has increased from 51.86 lakh in March 2020 to GIS location of their branches, Business Correspondents 96.91 lakh in Nov'24. and ATMs on the app. 5.1.3 Jan Dhan Darshak App As per JDD app, as on December 2024, there are 1.77 lakh branches, 14.68 lakh BCs (including 1.64 lakh A mobile application was launched to provide a citizen IPPB-BCs) and 2.11 lakhs ATMs mapped by the banks. centric platform for locating banking touch points such as Further, as per data uploaded by the banks on JDD app, bank branches, ATMs, Bank Mitras, Post Offices, etc. in out of the 6.01 lakh (6,01,328) mapped villages on the the country. The web version of this application could be app, 6.00 lakh (6,00,776) (99.91%) villages are having accessed at the link http:// findmybank.gov.in. Banks/ branch or BC within a distance of 5 kilometres. 5.1.4 Jan-Dhan Aadhaar Mobile (JAM) Services being offered through DBU include banking facilities like the opening of savings accounts, balance A Jan Dhan Aadhar Mobile (JAM) pipeline has been checks, passbook printing, transfers of funds, investments laid for linking of Jan-Dhan account with mobile number in fixed deposits, loan applications, stop-payment and Aadhaar. This is providing the necessary backbone instructions for cheques issued, applications for credit / for DBT flows, adoption of social security/ pension debit cards, view statement of account, pay taxes, pay schemes, facilitating credit flows, promoting digital bills, make nominations, etc. The DBUs are also facilitating payments, etc. It has provided the much-needed support for accelerating the pace towards achieving a digitalized, for onboarding to Government credit linked schemes financially inclusive and an insured society. The instant through the Jan Samarth portal and end-to-end digital transfer of Direct Benefits under various Government processing of small ticket MSME/retail loans. Schemes has been made possible through the JAM As per data collected, more than 1.80 crore pipeline. interventions (in r/o major activities) have taken place at 5.1.5 Digital Banking Units all the 107 DBUs which have been set during the period 16.10.2022 to 31.12.2024. The Hon'ble Prime Minister dedicated 75 Digital Banking Units (DBUs) in 75 districts of the country to 5.1.6 Regional imbalances: Focused attention commemorate the 75 years of independence of our Special focus is being given to 112 Aspirational country (Azadi Ka Amrit Mahotsav) on 16.10.2022. These Districts (ADs) wherein a Targeted Financial Inclusion DBUs set-up by 24 banks including Public, Private Sector Intervention Program (TFIIP) program has been launched and Small Finance Bank, cover all the States and Union Territories of the country. The DBUs are to assist those to improve the performance of these Districts under who are not tech savvy to adopt digital banking and Financial Inclusion (FI) parameters. DFS is also working wherein the products and services will be offered to on 'Mission Utkarsh' to improve the performance of the 10 customers in 2 modes: Self Service Mode and Digital selected Districts which are lagging behind on FI Assistance Mode. parameters. 250Department of Financial Services V 6. Key Schemes  Mobile number, email id and age of the nominee (or the appointee of a minor nominee) are now captured 6.1 Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) - The Scheme is available to people in the age and in the event of an unfortunate incident, nominees group of 18 to 50 years having a Bank / Post office account are proactively informed of the benefit available and who give their consent to join / enable auto-debit. Risk the claim process in English and regional language. coverage under this Scheme is for Rs. 2 lakhs in case of death of the insured, due to any reason at an annual  Waiting period in case of claim of death cases under premium of Rs. 436/- which is to be auto-debited from the PMJJBY has been reduced from 45 days to 30 days subscriber's bank / Post office account. with effect from 1st June, 2021 except for death due to 6.2 Pradhan Mantri Suraksha Bima Yojana an accident for which the claim is admissible from (PMSBY) - The Scheme is available to people in the age the date of joining this scheme. group of 18 to 70 years with a bank / Post office account who give their consent to join / enable auto-debit facility.  Banks have been requested to identify from their core The risk coverage under the Scheme is for Rs. 2 lakhs in banking solution (CBS), the existing subscribers who case of accidental death or total permanent disability and did not have sufficient balance in their accounts as Rs. 1 lakh for partial permanent disability due to accident on 31.5.2022 to enable auto debit of their premium at a premium of Rs. 20/- per annum which is to be deducted and to inform them by SMS/ email about the revision from the account holder's bank / Post office account in premium rates. through 'auto-debit' facility. Key reforms in the implementation of schemes  Banks/ post office to forward claim documents PMJJBY and PMSBY: electronically to their partner insurer's designated app / email id within seven days of submission of the claim  Enrolment and claim forms for PMJJBY and PMSBY and insurers to settle claims within 7 days of receipt have been modified with a view to minimise pendency and ensure benefits to rightful claimants at the earliest. of claim documents. Progress as on 15.01.2025 is as under: Scheme Eligibility Premium Enrollments s Claim Paid Claims amount Settlement (Yrs) (p.a) (crore) (crore) Ratio(%) PMJJBY 18 to 50 Rs 436 22.52 8,80,037 Rs.17,600.74 99.83% PMSBY 18 to 70 Rs 20 49.12 1,50,805 Rs.2,994.75 97.64% PMJJBY Trends as on 15.01.2025 (In crore) 251Annual Report 2024-2025 Percentage reflects Cumulative Claims Paid Versus Cumulative Claims Reported PMSBY Trends as on 15.01.2025 In crores Percentage reflects Active Enrolments Versus Gross Enrolments (Cumulative) Percentage reflects Cumulative Claims Paid Versus Cumulative Claims Reported 252Department of Financial Services V 6.3. Pradhan Mantri Mudra Yojana (PMMY)  Collateral free loans upto Rs.20 lakh The Scheme was launched on 8th April 2015 for  Credit Guarantee Fund for Micro Units (CGFMU) was financing income-generating small business enterprises set up for guaranteeing loans extended to eligible micro in manufacturing, trading and service sectors, including units under PMMY by MLIs and overdraft loan amount activities allied to agriculture such as poultry, dairy, sanctioned under Pradhan Mantri Jan Dhan Yojana beekeeping, etc. Under PMMY, both Term loan and (PMJDY) accounts. From FY 2020- 21 onwards, loans Working Capital requirements can be met. Loans under sanctioned to Self Help Groups (SHGs) between Rs.10 PMMY are extended through Member Lending Institutions lakh to Rs. 20 lakh are also eligible for coverage under (MLls) viz; Banks, Non- Banking Financial Companies CGFMU. The National Credit Guarantee Trustee (NBFCs) & Micro Finance Institutions (MFls). Company Ltd. (NCGTC), a wholly-owned company of Government of India, constituted under the Companies  Categories: Shishu - upto Rs. 50,000/-, Kishor - above Act, 1956 (2013) is the trustee of the Fund. Rs. 50,000/- and upto Rs.5.00 lakh, Tarun -above Rs.5.00 lakh and upto Rs.10.00 lakh, Tarun Plus-  As on 31.12.2024 the sanction amount covered under above Rs. 10.00 lakh and upto Rs. 20.00 lakh (for live guarantee is Rs.4.16 lakh crore. those entrepreneurs who have availed and successfully Achievements under Pradhan Mantri Mudra repaid previous loans under the 'Tarun' category w.e.f. Yojana (PMMY) as on 10.01.2025 24.10.2024).  More than 51.41 crore loans amounting to Rs.32.36  The limit of Mudra loans under the PMMY has been lakh crore have been sanctioned since launch of the enhanced from the current Rs.10 lakh to Rs.20 lakh. Scheme. Approximately 20% of the total loans have A new category, Tarun Plus, has been introduced for been sanctioned to New Entrepreneurs. loans above Rs. 10 lakh and up to Rs. 20 lakh, specifically for entrepreneurs who have availed and  Approximate 68% loans of the total number of loans successfully repaid previous loans under the Tarun have been sanctioned to Women Entrepreneurs & 50% category. Necessary Gazatte Notification has been loans have been sanctioned to SC/ST/OBC categories issued on 24.10.2024 of Guarantee coverage for of borrowers. PMMY loans up to Rs. 20 lakh which will be provided under the Credit Guarantee Fund for Micro Units  Category-wise breakup: - (CGFMU). Category No. of Loans (%) Amount Sanctioned (%) Shishu 79% 36% Kishor 19% 40% Tarun 2% 24% Tarun Plus - - Total 100% 100%  Targets have been consistently met since inception  Year-wise sanction amount is as follows: - of the Scheme, except for FY 2020-21 due to COVID- 19 pandemic. Year No of Loans Sanctioned (in Amount Sanctioned cr.) (Rs. Lakh crore) 2015-16 3.49 1.37 2016-17 3.97 1.80 2017-18 4.81 2.54 2018-19 5.98 3.22 2019-20 6.22 3.37 2020-21 5.07 3.22 2021-22 5.38 3.39 2022-23 6.23 4.56 2023-24 6.67 5.41 2024-25 (as on 10.01.2025) 3.56 3.47 Total 51.41 32.36 253Annual Report 2024-2025 Consolidated achievements (From 08.04.2015 to 10.01.2025) Achieving Targets, Attaining Excellence 254Department of Financial Services V Scheme-wise Share (Based on Cumulative Data) Category-wise Share (Based on Cumulative Data) Empowering Enterprising Women Strengthening the Nation (Based on Cumulative Data) 255Annual Report 2024-2025 6.4. Stand Up India Scheme (SUPI)  The extent of margin money to be brought by the borrower has been reduced from 'upto 25%' to 'upto The Stand-Up India Scheme launched on 5th April, 15%' of the project cost. The Scheme envisages 'upto 2016 aims to promote entrepreneurship among the 15%' margin money which can be provided in Scheduled Caste/ Scheduled Tribe and Women by convergence with eligible Central/State schemes. facilitating bank loans of value between Rs.10 lakh and However, the borrower will continue to contribute at Rs.1 crore to at least one SC/ST borrower and one-woman least 10% of the project cost as own contribution. borrower per bank branch of Scheduled Commercial Banks for setting up greenfield enterprises in trading,  Loans for enterprises in 'Activities allied to agriculture' manufacturing and services sector. e.g. pisciculture, beekeeping, poultry, livestock, rearing, grading, sorting, aggregation agro industries, In 2019- 20, the Stand-Up India Scheme was extended for the entire period coinciding with the 15th Finance dairy, fishery, Agri clinic and agribusiness centres, Commission period of 2020-25. Pursuant to an food & agro- processing, etc. (excluding crop loans, announcement made by the Union Finance Minister in land improvement such as canals, irrigation, wells) the Budget speech of FY 2021-22, the following changes and services supporting these, shall be eligible for have been made in the Stand-Up India Scheme: - coverage under the Scheme. As on 20.01.2025, 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. 48,548 10,246.37 15,824 3,377.84 1,94,152 44,768.04 2,58,524 58,392.25 6.5 PM Street Vendor's AtmaNirbhar Nidhi Scheme empowering street vendors by not only extending loans (PMSVANidhi) to them but also for their holistic economic development. The scheme is a Central Sector Scheme being The Scheme has provision for collateral free working capital implemented by the Ministry of Housing and Urban Affairs loan upto Rs.10,000 for 12 months under 1st tranche, upto (MoHUA). It aims to provide relief to street vendors affected Rs. 20,000 for 18 months under 2nd tranche and upto by Covid-19 lockdown. The Scheme, launched on 01 June, Rs.50,000 for 36 months under the 3rd tranche. On timely/ 2020 and valid till 31.03.2022, has now been extended till early repayment, the vendors will be eligible for the next 31.12.2024. cycle of working capital loan with an enhanced limit. No penalty is payable on early repayment of the loan. The DFS is facilitating MoHUA in the smooth Scheme enables free onboarding of beneficiaries onto implementation of the scheme which envisages 256Department of Financial Services V Digital Payment Platforms and offers up to Rs. 1,200 per loans (1st, 2nd and 3rd tranche) disbursed till December, year in cashback incentives to promote transactions by 2024. the beneficiaries As of December 31, 2024, a total of 99.15 lakh loan Interest subsidy @ 7% per annum is to be paid on applications have been sanctioned across all tranches, quarterly basis on timely or regular repayment of all with 95.44 lakh applications successfully disbursed. Cumulative Applications Male Female Others Applications Male Female Others Sanctioned Sanctioned Sanctioned Sanctioned Disbursed Disbursed Disbursed Disbursed 99,15,053 54,51,702 44,62,488 863 95,44,242 52,46,554 42,96,864 824 6.6 PM Vishwakarma Scheme training, collateral free credit, modern tools, market linkage support and incentive for digital transactions. PM Vishwakarma Scheme, implemented by the The DFS collaborates with financial institutions to Ministry of Micro, Small and Medium Enterprises (MSME), streamline the loan application and disbursement was launched on September 17, 2023. This scheme processes and to ensure that artisans and craftspeople involves collaboration among Ministry of Micro, Small, and can easily access collateral-free loans. DFS also promotes Medium Enterprises (MSME), Ministry of Skill the use of digital platforms to facilitate loan applications Development and Entrepreneurship (MSDE) and and disbursals. Department of Financial Services (DFS) to provide end- As on 22.01.25, 8.43 lakh applications have been to-end holistic support to traditional artists and craftspeople processed by banks of which 2.84 lakh loans have been engaged in 18 identified trades through access to skill sanctioned by banks. 257Annual Report 2024-2025 6.7 PM Surya Ghar Muft Bijlee Yojana:  All buildings under central government shall deploy RTS in mission mode to achieve saturation by 2025.  Prime Minister launched the 'PM Surya Ghar Muft No Central Financial Assistance (CFA) will be provided Bijli Yojana' on 13th February, 2024 with an aim to for Government institutions. solarize one crore households by providing free electricity up to 300 units every month. Progress of Loans under the Scheme:  Indian Banks Association (IBA) in consultation with  The Scheme was introduced for installation of rooftop Sate Bank of India (Nodal bank for PMSGMBY) and solar (RTS) plants in one crore households with an other major banks has devised a model Loan scheme. overall outlay of ` 75,021 crores by FY 2026-27.  Loan application are routed through Jan Samarth  Under the scheme, subsidy upto Rs. 78,000/- is Portal in digital form and the same is integrated with provided to beneficiaries installation of RTS upto 3 National portal of MNRE. KW. Systems above 3 KW can be installed with subsidy capped at Rs 78,000/-.  Latest progress under the scheme is as under: 7. Agriculture Credit 2023-24, agriculture credit disbursement stood at Rs.25.48 lakh crore, registering 127% achievement. In 2019-20 the In order to boost the agriculture sector with the help disbursement was Rs. 13.92 lakh crore thus achieving a of effective and hassle-free agriculture credit, the CAGR growth of 12.85% in 5 years. Agriculture credit target Government has been fixing annual targets for ground level for year 2024- 25 has been set at Rs. 27.50 lakh crore agriculture credit by Scheduled Commercial Banks, with a sub-target of Rs. 4.20 lakh crore for Animal Regional Rural Banks (RRBs) and Cooperative Banks. Year Husbandry, Dairying and Fisheries farmer. As on 31 wise position of target and achievement under agricultural October 2024, Rs.13.67 lakh crore was disbursed credit flow for the last six years and the current year given (Provisional) against the target of Rs.27.50 lakh crore, below indicates the sustained trend of actual disbursement, registering 50% achievement. The Agriculture Credit surpassing the incremental annual targets year after year. Achievement vis-à-vis Target has increased over last five As against the annual target of Rs.20.00 lakh crore for year as under :- Source: ENSURE portal of NABARD 258Department of Financial Services V 7.1. Kisan Credit Card (KCC) animal/fish rearing at a maximum interest of 4% on timely repayment. Over 5.57 crore farmers have been covered KCC scheme was introduced in 1998-99, as an under the ongoing KCC saturation drive effective from innovative credit delivery mechanism that aims at adequate February, 2020 with sanctioned credit limit of about and timely credit support from the banking system to the Rs.7.12 lakh crore as on 22.11.2024. At present (as on farmers for their cultivation needs including the purchase 30.09.2024), there are 7.72 crore operative KCC accounts of inputs in a flexible, convenient, and cost-effective with a total outstanding loan of Rs.9.99 lakh crore. manner. Banks have been advised to issue Kisan Credit Cards (KCC) to all eligible farmers. The KCC Scheme has While ensuring convenient and cost-effective credit since been simplified with facilities like one-time delivery to farmers, the ongoing campaign will be documentation, built in cost escalation in the limit and instrumental in driving the rural economy and further facility of ATM enabled debit card etc. Under the present accelerating agricultural production and allied activities, guidelines of KCC, the limit is sanctioned for 5 years, and besides enhancing the income level of farmers. the beneficiaries have ease and flexibility in withdrawal The facility of KCC has also been extended to animal and repayment. husbandry and fisheries farmers in year 2019 to help them meet their working capital needs. Further, in order to cover GoI has approved interest subvention @1.5% on short animal husbandry and fisheries farmers, under KCC, term loans for agriculture and allied activities which is special saturation drive in the form of weekly "District level available on an overall limit of Rs.3 lakh per annum and Camp" was launched w.e.f. 15th November, 2021 for subject to a maximum sub-limit of Rs.2 lakh per farmer ensuring convenient and cost-effective credit delivery to involved in allied activities related to Animal Husbandry, the farmers and accelerating agriculture output. Dairy, Fisheries, Bee Keeping etc. within the prescribed limit of Rs.3.00 lakh availed through Kisan Credit Card The Nationwide AHDF KCC Campaign was extended (KCC). An additional interest subvention of 3% is provided from time to time up to 31st March 2024. The campaign to farmers on prompt repayment of loans, which effectively has been restarted from 15th September 2024 up to 31st reduces the rate of interest to 4%. March 2025. As on 15.11.2024 a total 38,57,972 KCCs have been sanctioned to Animal Husbandry, Dairy and To enable universal access to Concessional Fisheries farmers under this campaign. The amount Institutional credit, Government of India has initiated a drive outstanding in operative accounts under Kisan Credit in Mission Mode from February 2020 for saturating all PM- Card has consistently increased over last 5 years as KISAN beneficiaries with Kisan Credit Card (KCC). This under :- will help all such farmers to get short term loan for crop & 259Annual Report 2024-2025 7.2. Role of National Bank for Agriculture and Rural major/medium irrigation projects in the country, for which Development (NABARD) in Rural Financing & a Long-Term Irrigation Fund (LTIF) was set up in NABARD. Development of Rural Economy. As on 30 November 2024, sanctions have been accorded by NABARD under LTIF to the tune of Rs. 71,883 crores NABARD, an apex development financial institution, against 99 projects identified. Further, loan amount of was established in 1982, for providing and regulating credit Rs.11,218 crores have been sanctioned for the Polavaram and other facilities for the promotion and development of Irrigation project, Rs.1,379 crores for North Koel Reservoir agriculture, small-scale industries, cottage and village Project, Rs. 485 crores for Shahpur Kandi Dam and Rs. industries, handicrafts and other rural crafts and other allied 826 crores for Relining of Sirhind and Rajasthan Feeder economic activities in rural areas with a view to promoting under LTIF, totaling the cumulative sanctions under LTIF integrated rural development and securing prosperity of to Rs. 85,791 crores. The cumulative amount released rural areas. Major functions of NABARD are Financial, against sanction of 99 identified projects stood at Rs. Developmental and Supervision. Several funds such as 50,024 crores. Similarly, for Polavaram Irrigation project, Rural Infrastructure Development Fund (RIDF), Long Term North Koel Reservoir Project and Shahpur kandi Dam Irrigation Fund (LTIF), Micro Irrigation Fund (MIF), Short Project, cumulative releases stood at Rs.10,650 crores, Term Cooperative Rural Credit (Refinance) Fund, Short Rs.721 crores and Rs. 207 crores respectively, totaling Term Regional Rural Bank (Refinance) Fund, Long Term the cumulative releases under LTIF to Rs. 61,603 crores. Rural Credit Fund (LTRCF), etc are available with NABARD for creation of rural infrastructure and providing credit to 7.2.3 Micro Irrigation Fund (MIF) the agriculture sector. Micro Irrigation Fund with a corpus of Rs.5,000 crore 7.2.1 Rural Infrastructure Development Fund (RIDF) has been operationalized from 2019-20 in NABARD with an objective to facilitate State Govts. Efforts in mobilizing In the backdrop of declining public investment in additional resources for expanding coverage under micro agriculture and rural infrastructure, RIDF was instituted in irrigation and incentivizing its adoption beyond provisions NABARD during 1995-96 with an initial corpus of Rs.2,000 of PMKSY-PDMC. The MoA & FW, GoI has conveyed the crore with the main objective of providing loans to State continuation and augmentation of the MIF by another Governments for completing ongoing rural infrastructure Rs.5000 Crore for 15th Finance Commission period. The projects. Resources to the fund are contributed by cumulative sanction and release under MIF as on 30 Commercial Banks, Foreign Banks, Regional Rural Banks November 2024 stood at Rs.4,719 crores and Rs. 3,639 and Small Finance Banks in a proportion indicated by crores respectively. This will facilitate expanding micro RBI, with respect to banks' shortfall in priority sector irrigation to an area of 21 lakh ha. involving 16 lakh farmers. lending. The fund which started as a "last mile approach" 7.2.4 Short Term Cooperative Rural Credit STCRC to facilitate completion of ongoing irrigation, flood protection (Refinance) Fund and watershed management projects during 1995-96, today covers as many as 39 activities, broadly classified under STCRC (Refinance) Fund was set up in NABARD in three categories, viz., (i) Agriculture and related sector (ii) 2008-09 with an initial corpus of Rs.5,000 crores to provide Social Sector and (iii) Rural Connectivity. The annual Short Term refinance to Cooperative Banks so as to ensure allocation of funds towards RIDF has gradually increased increased and uninterrupted credit flow to farmers at from Rs. 2,000 crores in 1995-96 to Rs. 35,000 crores in concessional rate of interest. NABARD provides refinance 2024-25. to Cooperative bank at an interest rate of 4.5 % per annum for crop loans up to Rs.3.00 lakh disbursed by cooperative The cumulative funding commitment, as on 30 banks at an interest rate of 7% per annum to ultimate November 2024 to 30 States/UTs stood at Rs. 5,72,216 borrowers. An allocation of Rs.25,000 crores has been crore (including Bharat Nirman) against which Rs. 4,51,999 made for the STCRC (Refinance) Fund during 2024-25. crore have been disbursed as on 30 November 2024. Over As on 30.11.2024, Rs.12,489.52 crores have been utilised the years, RIDF has emerged as a dependable source of out of STCRC (Refinance) Fund during 2024-25. public funding of impactful rural projects. Of the total RIDF loans sanctioned to State Governments under various Total Refinance disbursed by NABARD to Co-operative tranches since 1995-96, 26% accounted for rural roads, Banks amounts to Rs. 1,46,775.21 crores. At the same 30% for irrigation, 21% for social sector, 13% for agriculture time the Total No. of KCC issued by Co-op Banks stands sector (other than irrigation) and 10% for rural bridges. at 3.30 Crores with total outstanding amount of Rs. 2,15,011.66 crores. 7.2.2 Long Term Irrigation Fund (LTIF) 7.2.5 Short Term Regional Rural Bank STRRB The Government of India, through the Dept. of Water (Refinance) Fund Resources, River Development and Ganga Rejuvenation, Ministry of Jal Shakti (earlier Ministry of Water Resources) STRRB (Refinance) Fund was set up with an allocation has taken a major initiative to complete various stalled of Rs.10,000 crores in 2012-13, so as to enable NABARD 260Department of Financial Services V to provide Short Term refinance to RRBs to meet their sectors which are employment-intensive such as crop loan lending obligations. NABARD provides refinance agriculture and micro and small enterprises are part of to RRBs at an interest rate of 4.5% per annum for crop the priority sector loans up to Rs.3.00 lakh disbursed by RRBs at an interest (i) With this background, RBI has framed the Priority rate of 7% per annum to ultimate borrowers. The allocation Sector Lending (PSL) guidelines to facilitate the flow under STRRB Fund was at Rs.7,000 crores during 2024- of credit to these segments from banking system. 25. As on 30.11.2024, Rs. 3,496.66 crores have been utilised out of STRRB (Refinance) Fund during 2024-25. (ii) As per the existing guidelines, priority sector loans include loans to eight eligible categories- Agriculture, Total Refinance disbursed by NABARD to RRBs Micro, Small and Medium enterprises, Export Credit, amounts to Rs. 52,283.70 crores. At the same time the Education, Housing, Social Infrastructure, Renewable Total No. of KCCs issued by RRBs stands at 1.46 Crores Energy and Others. with total outstanding amount of Rs. 1,97,095.28 crores. (iii) Further, the guidelines also specify targets of 40% for 7.2.6 Long Term Rural Credit Fund (LTRCF) lending to PSL by Scheduled commercial Banks This fund has been set up for the purpose of providing (SCBs) and targets of 75 % for lending to PSL by long term refinance support to Cooperative Banks and Regional Rural Banks (RRBs) and Urban Cooperative Regional Rural Banks for their lending towards investment bank (UCBs). UCBs will achieve this target in phased activities in agriculture with a view to provide a fillip to manner by 2025-26. Within overall PSL, following sub- capital formation in the sector. Government has allocated targets have been assigned to banks as percent to Rs.8,000 crores fund under LTRCF during FY 2024-25. Adjusted Net Bank Credit (ANBC) or Credit Equivalent However, department has received Rs.3,996.76 crore as of Off-Balance sheet Exposures (CEOBE), whichever deposits from contributing banks as on 30.11.2024. The is higher. same has been disbursed to Cooperative Banks and Sub-targets: Regional Rural Banks under LTRCF during the financial year 2024-25 (as on 30.11.2024). Besides the above NABARD also provided non-concessional LT refinance to Agriculture 18%; out of which a target of Cooperative Banks and Regional Rural Banks amounting 10% is prescribed for Small Rs.12,342.17 crore during FY 2024-25 (as on 31.11.2024). and Marginal Farmers (SMFs) 8. Priority Sector Lending Micro Enterprises 7.5 % The objective of priority sector lending (PSL) is to Advances to Weaker 12 % for SCBs & 15% for RRBs ensure that vulnerable sections of society get access to Sections credit and for maintaining adequate flow of resources to (iv) The performance of Scheduled Commercial Banks those segments of the economy which have higher (SCBs) and Regional Rural banks (RRBs) in employment potential and also help in making an impact achievement of priority sector lending targets in the on poverty alleviation. Thus, the sectors that impact large last three years is given as follows: sections of the population, the weaker sections and the (`crore) Financial Year Public Sector Private Sector Foreign Regional Rural Banks Banks Banks Banks# 2020-21 24,16,750 14,33,674 1,99,969 2,38,636 (41.06) (40.62) (41.02) (98.61) 2021-22 26,49,180 16,85,806 2,08,107 2,45,481 (42.90) (43.71) (42.65) (89.76) 2022-23 30,36,062 21,01,827 2,19,622 2,69,835 (44.51) (44.63) (42.63) (95.72) 2023-24 34,01,407 26,09,386 2,78,694 2,89,336 (42.78) (48.20) (46.08) (89.86) 2024-25 (As on 35,24,241 27,33,204 2,60,090 2,87,097 Sept. 30, 2024) (42.77) (45.08) (42.11) (84.14) N ote: Figures in parentheses are percentage to ANBC or credit equivalent of off-balance sheet exposure (CEOBE), whichever is higher. PSL target for SCBs is 40% whereas target for RRBs is 75% Source: RBI 261Annual Report 2024-2025 The performance of Scheduled Commercial Banks 8.1 Education Loan (SCBs) in achievement of priority sector lending targets shows a growth in credit in absolute terms by all bank Every meritorious student should have access to bank groups. Public Sector Banks (PSBs), Private Sector credit to pursue higher education, if they so desire. Indian Banks (PVBs), Foreign Banks (FBs) have continued Banks' Association (IBA) had prepared a Model to achieve the prescribed PSL target of 40 per cent in Educational Loan Scheme and circulated it to banks in the last three years. the year 2001. The Scheme is for all students including students belonging to the economically weaker sections (v) In view of the increasing importance of non- and those below the poverty line. Indian Nationals who conventional and renewable sources of energy and in order to give further impetus to this segment, have secured admission to a higher education course in a 'Renewable Energy' has been introduced as a separate recognized Institution in India or abroad through an category under the priority sector with bank loans up entrance test/merit-based selection process are eligible to a limit of `30 crore. for educational loans under the Scheme. The Scheme has been modified from time to time, based on the experience (vi) Some new sectors have been included under PSL: gained and feedbacks received during its implementation Bank finance to start-ups for loans up to Rs 50 crore over the years. The last revision of the Model Educational and Loans for setting up Compressed Bio Gas (CBG) plants are examples. Loan Scheme was undertaken during the year 2022. The main features of the revised Model Educational Loan (vii) For establishing health infrastructure under "Ayushman Scheme are as under: Bharat", a Social Infrastructure credit limit up to `10 crore comes under PSL. Education Loans upto `20 i. The scheme provides need-based education loan. lakh are also considered as eligible for priority sector lending. ii. No collateral security/third-party guarantee is required for loans amount up to Rs. 7.50 lakhs (in case of (viii)To address regional disparities, districts will be ranked loans that are eligible for Central Sector Interest based on per capita priority sector credit flow, with Subsidy Schemes (CSIS) and/or Credit Guarantee incentives for areas with lower credit flow and coverage extended under the `Credit Guarantee Fund disincentives for those with higher flow. From FY 2024- Scheme for Education Loan' (CGFSEL). 25, districts with lower per capita PSL (less than `9,000) will receive a higher weight (125%) for iii. No Margin for loans up to Rs. 4 lakhs. incremental credit, while those with higher per capita PSL (greater than `42,000) will have a lower weight iv. Moratorium period is allowed upto study period plus (90%). one year in all cases. (ix) To ensure continuous flow of credit to priority sector, v. Repayment period (after moratorium) is available upto the compliance of banks is being monitored by RBI 15 years for all loans. on 'quarterly' basis. Further, Banks having any shortfall in lending to priority sector shall be allocated amounts 8.1.1 Performance of Education Loans of contribution to the Rural Infrastructure Development Fund (RIDF) established with NABARD and other funds As informed by PSBs, the total outstanding education with NABARD/NHB/SIDBI/ MUDRA Ltd., as decided loans of Public Sector Banks (PSBs) as on 31th March, by the RBI in consultation with Department of Financial 2024 stood at Rs. 1,04,402 crores and as on 30th Services from time to time September, 2024 stood at Rs. 1,13,124.42 crores. Graph 1: Performance of educational loan 262Department of Financial Services V 8.1.2 Vidya Lakshmi Portal the overall well-being of society. It provides long-term funds for infrastructure development and supports continuous Vidya Lakshmi Portal is a first of its kind portal providing economic transformation. single window for Students to access information, submit application and track their applications for Education 9.2 Public Sector Insurers Loans provided by Banks. The Portal has following The Public Sector Insurance Companies features: operating in the sector are as follows: i. Information about Educational Loan Schemes of 1. Life Insurance Corporation of India Banks; 2. General Insurance Corporation of India - GIC Re ii. Facility for students to apply to multiple Banks (Re-Insurer) through a common application; 3. The New India Assurance Company Limited iii. Facility for Banks to download students' loan applications and upload loan processing status; 4. United India Insurance Company Limited iv. Facility for students to track the status of 5. National Insurance Company Limited submitted application 6. The Oriental insurance Company Limited 8.1.3 Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) 7. Agriculture Insurance Company of India Limited Scheme - Specialised Insurer (Company floated by Public Cabinet on 06.11.2024 has approved PM Vidyalaxmi Sector general insurance companies along with scheme which will enable loans through banks to NABARD meritorious students so that financial constraints do not prevent any youth of India from pursuing quality higher 8. ECGC Limited - Specialised Insurer (Government education. A mission mode mechanism will facilitate and of India enterprise for export credit guarantee) enable education loans to meritorious students who get 9.3 Legislative Framework governing the Insurance admission in the top 860 Quality Higher Educational Sector Institutions (QHEIs) in the country, which translates into a coverage to approximately 22 lakh students every year. The policy formulation and administration of the The scheme enables meritorious students of these QHEIs following Acts are involved in the development of insurance to take collateral free, guarantor free education loans sector in the country: through a simple, transparent, student-friendly and entirely digital application process. A dedicated PM-Vidyalaxmi 1. The Insurance Act, 1938 Portal is being developed to ensure overall implementation 2. The Life Insurance Corporation Act, 1956 and monitoring of the scheme. 3. The General Insurance Business (Nationalisation) The scheme also provides for 3% interest subvention Act, 1972 on loans up to Rs. 10 lakh to a maximum of one lakh needy students in a year, where annual family income is 4. The IRDA Act, 1999 less than Rs. 8 lakhs. Loan amounts up to ` 7.5 lakhs 5. The Actuaries Act, 2006 will also be provided 75% credit guarantee by the Government of India, through NCGTC, so that banks shall The Government promulgated an Ordinance namely - expand their coverage. the Insurance Laws (Amendment) Ordinance, 2014 on December 26, 2014 to make amendments to the Insurance 9. Insurance Sector Act, 1938, the General Insurance Business 9.1 Overview (Nationalization) Act, 1972 and the Insurance Regulatory and Development Authority Act, 1999 in accordance with The insurance sector is crucial for citizens and the the Insurance Laws (Amendment) Bill 2008 as reported economy alike, providing individuals with protection from by the Select Committee of the Rajya Sabha. The unexpected risks such as death, health crisis or property Ordinance was replaced by the Insurance Laws damage, thereby fostering financial security and peace of (Amendment) Act, 2015. With the coming into force of mind. This stability encourages entrepreneurship and the Insurance Laws (Amendment) Act, 2015, the foreign investment, driving economic growth and job creation. investment cap in an Indian Insurance Company has gone Insurance mechanisms mitigate systemic risks, reducing up from 26 per cent to 49 per cent with the safeguard of the likelihood of widespread financial crisis and supporting Indian ownership and control. 263Annual Report 2024-2025 Further amendment in the Insurance Act 1938, was public sector general insurers one specialized insurer and brought by promulgating the Insurance (Amendment) Act, General Insurance Corporation as the national re-insurer) 2021 enacted on March 25, 2021 by which the Government to seventy three (73) insurers as on March 31, 2024 has further enhanced the FDI cap from 49 per cent to 74 operating in the life, general, health and reinsurance per cent with certain conditions in the terms of Indian segments (including specialized insurers, namely Export ownership and control. credit Guarantee Corporation Limited and Agricultural Insurance Company of India Limited). New entrants in the insurance industry As on March 31, 2024, there are 26 Life insurers Since the opening up this sector for private and foreign including one in Public Sector, 25 general insurers including investment in the year 2000, the number of participants in four in public sector, two specialized insurers in Public the insurance industry has gone up from seven (7) insurers Sector, five Stand-Alone Health Insurers (SAHI) and 12 ( including the Life Insurance Corporation of India, four reinsurers including one in Public Sector Registered Insurers and Reinsurers (As on 31.03.2024) Type of Insurer Public Sector Private Sector Total Life Insurers 1 25 26 General 6 21 27 Standalone Health 0 8 8 Re-Insurer 1 11 12 Total 8 65 73 Source: IRDAI 9.4 Insurance related Social Security Schemes:  As per LIC a total number of 8.56 lakh subscribers (No. of Policies 1117816) have benefited under Apart from the two Social Security Schemes, Pradhan the scheme as on March 2024 Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY), an insurance  The Scheme was valid up to 31st March 2023 scheme viz PMVVY caters to requirements of citizens 9.5 Insurance Industry Statistics above 60 years of age. Insurance coverage 9.4.1 Pradhan Mantri Vaya Vandana Yojana: Insurance coverage refers to the number of lives  Pradhan Mantri Vaya Vandana Yojana (PMVVY) covered under insurance for life, health and other insurance is offered by the Life Insurance Corporation of India categories. As per IRDAI report, during 2023-24 the (LIC) and supported by the Government of India, General & health insurance companies have covered 57 to provide senior citizens of age 60 years or more crore lives under 2.68 crore health insurance policies. an assured minimum pension for a term of 10 Personal Accident Insurance covered a total of 165.05 crore years, linked to the price at which they purchase number of lives (including PMSBY, PMJDY and IRCTC e- the pension policy. ticket passengers) and 74.96 lakh lives were covered under Travel Insurance policies.  Government of India bears the differential return, i.e. the difference between return generated by The cumulative enrolments as on December 2024 LIC and the assured return committed under the under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) scheme as interest-gap subsidy on an annual is 22.29 crore and Pradhan Mantri Suraksha Bima Yojana basis (PMSBY) is 48.56 crore.  Maximum Investment allowed is Rs 15,00,000. Insurance Penetration and Insurance Density  Under the scheme, a loan of up to 75% of the The measure of insurance penetration and density purchase price is allowed after completion of three reflects the level of development of insurance sector in a policy years country. While insurance penetration is measured as the 264Department of Financial Services V percentage of insurance premium to GDP, insurance (measured in US$ for convenience of international density is calculated as the ratio of premium to population comparison). India (2001-02) India (2023-24) Malaysia Thailand China(2023-24) (2023-24) (2023-24) Insurance 2.7 3.7 (Life:2.8 % Non- 5.2 5.3 3.9 Life:1%) Penetration (%) Insurance 11.5 95 590 384 508 (Life:70 & Non-Life: 25) Density (US$) Source: Swiss Re, Sigma Report on World Insurance 3/2024 Globally insurance penetration and density in 2023- Life insurance industry 24 were 2.9 per cent and USD 361 for the life segment Post liberalization period has witnessed sharp growth and 4.2 per cent and USD 528 for the non-life segment in the insurance industry, more particularly in the life respectively. In 2023-24, the insurance density in India segment. Life insurance industry recorded a premium income increased from 92 in 2022-23 to 95 in 2023-24 of Rs.8.3 lakh crore during 2023-24 as against Rs.7.83 lakh crore in the previous financial year, registering a growth The insurance penetration of Life Insurance sector in of 6.06 per cent. The private sector life insurers have clocked India is reduced from 3.0 per cent in 2022-23 to 2.8 per a growth of 15.05 per cent in premium, while the public cent in 2023-24 and the same for Non-Life Insurance sector sector life insurer recorded 0.23 per cent growth in premium. remained at 1 per cent in both these years. As such, India's Life Insurance Corporation of India LIC is the only life insurer overall insurance penetration reduced to 3.7 per cent in underwriting business outside of India and collected a total 2023-24 from the level of 4 per cent in 2022-23 premium of Rs 476.25 crore during 2023-24. New business premium underwritten for Life Insurance Industry 2023-24 Market New Premium Total New Business Growth from Share Underwritten* Premium 2022-23 LIC 58.99% Rs.2.23 lakh Crore Rs. 3.78 Lakh Crore 1.93% Private 41.01% Rs.1.56 lakh Crore Insurers *New premium underwritten refers to the total amount of premium collected from new policies issued within a specific period Source: IRDAI Total Premium of Life Insurers (Crore) in FY 2023-24 Sector Premium Public Sector 4.76 lakh crore Private Sector 3.54 lakh crore Total 8.30 lakh crore Source: IRDAI General insurance industry including Health 12.76 per cent as against 16.40 per cent growth rate Insurance Business recorded in the previous year. The public sector general insurers (including specialised insurers) together The general insurance industry (including standalone contributed to 35.03 per cent of the market share while health insurers) underwrote total direct premium of Rs. 2.90 lakh crore in India for the year 2023-24 as against the private sector general insurers contributed to the Rs.2.57 lakh crore in 2022-23, registering a growth rate of remaining 64.9 per cent 265Annual Report 2024-2025 Sector Premium (Rs crore) for 2023- Growth from 2022-23 24 PSU 90,252.13 8.8 % Private General Insurers 1,55,090.19 17.55 % Private Standalone Health Insurers 33,119.30 26.20 % (SAHI) Specialized Insurers 11,211.34 (-29.12) % Industry Total 2,89,683.22 12.76% Source: IRDAI Annual Report One of the benefits of opening up of the insurance sector Rs. 4,665 crore in 2022-23. Specialized insurers was at has been the extension of health cover to a wider cross- Rs. 3,063 crore as against Rs. 2,930 crore in 2022-23 section of the society. Health insurance business is the and the standalone health insurers was at Rs 915 crore largest segment with a contribution of 40.28 percent (38.02 as against Rs. 447 crore in 2022-23 percent in 2022-23) of the total premium. Health Insurance 9.6 Investments of the Insurance sector: Segment reported growth of 19.49 percent (21.32 percent growth in 2022-23) with the premium amounting to Rs 97,633 Insurers have been mandated to follow the pattern of crore from 80,502 crore in 2021-22 investment, as required under IRDAI (investment) During the year 2023-24, the non-life insurance sector Regulations, 2016. As on 31.03.2024, the investments reported an aggregate profit of Rs 10,119 crore compared made by the insurance industry stood at Rs. 67.57 lakh to a net loss of 2,566 crore in 2022-23. The Profit after Tax crore as against Rs. 60.04 lakh crore as on 31.03.2023 for public sector companies was Rs. 157 crore as against registering a growth of 12.54 percent. The share of life loss of Rs 10,607 crore in 2022-23, private sector general Insurers stood at 91 per cent and that of Public Sector insurers had profit after tax of 5,983 crore as against insurers stood at 69 percent for the period of 2023-24. Insurance Sector Insurance Sector Life Insurers (2023-24) Public sector Insurers (2023-24) (2022-23) (2023-24 Total 60.04 Lakh crore 67.57 Lakh Crore 91.90% of total 69.46% of total investments investments investment 9.7 Rural and Social Sector Business from rural areas. As per Notification dated 16.10.2002 titled Insurance Regulatory and Development Authority The (Obligations of Insurers to Rural and Social (Obligation of Insurers to Rural Social Sectors) Sectors) Regulations, 2015 stipulated targets of business Regulations,2002 Social Sector includes unorganized from rural and social sectors to be fulfilled by insurers on sector, informal sector, economically vulnerable or an annual basis. In terms of these regulations, insurers backward classes and other categories of persons, both are required to fulfil year wise business target prescribed in rural and urban area. (A) in terms of percentage of social sector lives computed on the total business; and (B) in terms of percentage of All the life insurers* including LIC have fulfilled their number of policies for life insurers and gross premium rural sector obligations for the year 2023-24. The data is written direct, for general and standalone health insurers, tabulated as below: Life Insurance Private Life Insurance LIC Companies Companies Rural Sector 122.70 lakh policies 28.91% of total policies 47.72% of total policies Obligations (42.05%) Total lives covered 6.66 crore 26.88% of total policies 5.73% of total policies under Social sector. (22.75%) 266Department of Financial Services V (*M/s Sahara India Life Insurance Co. Ltd. is not Medium Enterprises as classified in MSMED Act, 2006 considered for this obligation as it was directed by IRDAI under various lines of general insurance business will also not to underwrite new business as per the IRDAI order qualify as general Micro Insurance business up to premium dated June 23, 2017. of Rs.10,000 per annum per MSME. During FY 2023-24, all 25 general insurers (excluding 9.9 Initiatives/Steps taken by DFS: Specialized and Stand-Alone Health Insurers) have fulfilled 1. This department has been continuously reviewing the their social sector obligations. All general insurers performance of PSGICs. As a result, the total (excluding Specialized and Stand-Alone Health Insurers) aggregate losses amounting to Rs 10,607 Cr in FY underwrote a premium of Rs. 40,857 crore in the rural 2022-23 were improved to a profit of Rs 157 Cr in sector in FY 2023-24. Public sector and private sector 2023-24. insurers underwrote 21 per cent and 79 per cent respectively of total gross premium procured in the rural 2. DFS in co-ordination with DIPAM has disinvested its sector. equity stake to the extent of 3.39% in General Insurance Corporation of India by Offer for Sale of The seven SAHI insurers procured Rs 4,712 crores Equity Shares through the stock exchange premium in rural sector constituting 14.23 per cent of gross mechanism on 4 and 5 September 2024. A total of premium procured by them in the year 2023-24 and have 594,32,385 Equity Shares (3.39% of the paid-up equity covered 59.32 lakh lives under social sector i.e., 6.73 per share capital of the Company) were sold raising cent of total lives covered in the previous year. approx. `2345.55 crore. 9.8 Micro insurance 3. This department in collaboration with the sector Micro insurance being a low price-high volume regulator IRDAI is taking measures to monitor cyber business, its success and sustainability depends mainly security related issues in public sector insurance on keeping the transaction costs down. IRDAI (Obligations companies. DFS has requested IRDAI to conduct a of insurers to Rural and Social sectors) 2015 promulgated regular review of the cyber security of insurance under Section 32B and 32C of the Insurance Act, 1938 companies and intermediaries to align with up-to-date stipulate obligations of insurers in respect of rural and security mechanisms for prevention and monitoring social sector, which has also contributed substantially to of threats. the development and promotion of micro insurance 4. With a view to address accessibility needs of persons products in India. with disabilities in respect of the facilities and services Initially, Micro Insurance Regulations were notified in pertaining to Insurance Sector, DFS has formulated the year 2005 and upon review, IRDAI notified IRDAI (Micro the "Accessibility Standards and Guidelines for Insurance) Regulations, 2015 permitting several more infrastructure and services in Insurance Sector" in entities like RBI regulated NBFC-MFIs, District Cooperative August 2024. Banks, Regional Rural Banks, Urban Co-operative Banks, 5. This department is supporting MoRTH in implementing Business Correspondents (BCs), Primary Agricultural the Scheme for Cashless Treatment for Road Accident Cooperative Societies (PACs) and other cooperative victims under Golden Hour, which is a welfare measure societies to be appointed as Micro Insurance agents for saving the lives of road accident victims. facilitating better penetration of Micro Insurance business. Additionally, DFS is coordinating between MoRTH and The Regulations also included additional policy holder insurance companies for timely contribution to Motor protection measures. Vehicle Accident Fund. A total of Rs 480 crore In micro-insurance-life, the individual new business (Approx.) has been contributed by Insurance premium for the year 2023-24 was Rs. 152.57 crore through companies in "account for insured vehicles" as on 3.41 lakh new policies and the Group new business December 2024. premium amounted to Rs. 10,707.82 crore covering 6. Insurance Surety Bonds (ISBs) are being envisaged 1,783.92 lakh lives. There were 1,01,848 micro insurance to be a viable alternative/complement to Bank agents attached to life insurers at the end of FY 2023-24. Guarantee (BG). In this regard, DFS has requested Total number of general insurance policies issued by Micro all Ministries to explore, adopt and promote the use Insurance Agents (excluding of Standalone health insurers) of surety bonds in projects related to their ministries. were 23,746 in the year 2023-24. 7. This Department had collaborated with NDMA, IRDAI has permitted Pradhan Mantri Fasal Bima reinsurers and leading insurance companies for Yojana (PMFBY) covering non-loanee farmers, to be industry wide consultation for promoting the use of solicited and marketed by Micro Insurance Agents under "Insurance" as a key risk mitigation measure for risks IRDAI (Micro Insurance) Regulations, 2015. Further, posed by climate change. Deliberations on Alternate general insurance policies issued to Micro, Small and 267Annual Report 2024-2025 Sources of Funding for Disaster Risk Financing (DRF) a. Architecture of NPS: were also held, wherein Asian Development Bank and NPS architecture consists of Points of Presence World Bank briefed about Catastrophe Bonds and (PoPs) and aggregators as collection and distribution Contingent Lines of Credit. arms, a Central Record keeping Agency (CRA) which 8. Central Government vide notifications dated 30.4.2024 maintains the data and records, Trustee Bank to manage notified the Wage Revision for the employees of LIC the banking operations, Pension Fund Managers (PFMs) effective from 1.8.2022. for generating and maximizing returns on investments of subscribers, Custodian to take care of the assets 9. Enhancement of employers' contribution to NPS from purchased by the Fund managers and NPS Trust which existing 10% to 14% of Basic Pay and dearness holds the assets of subscribers for their benefit and allowance to LIC employees covered under NPS. oversees the investment operations. 10. Amendments in the Insurance Regulatory and b. Withdrawal under NPS Development Authority (Salary and Allowances payable to, and other terms and conditions of service Subscribers can withdraw up to 25% of their own of Chairperson and other members), Rules 2000: contributions at any time before exit from NPS Tier-I after revision of salary of Chairperson and Whole-time minimum of 3 years from the date of joining, for a maximum members of IRDAI. of three times during the entire tenure of subscription for certain specified purposes. 11. Consequent upon upgradation of the position of General Manager & Director (GMD) to Executive c. Tax Benefits under NPS: Director (ED) vide ACC approved guidelines dated  In addition to the deduction of `1.50 lakhs allowed 21.12.2023, three in position GMDs have been under section 80 CCD (1), an additional tax upgraded to ED and nine EDs have been appointed in deduction of `50,000/- under section 80CCD 1(B) Public Sector General Insurance Companies. of the Income Tax Act, 1961, for contributions to 10 Pension Sector NPS. 10.1 National Pension System (NPS)  The employee can claim deduction for employer's contribution up to 14% of salary under Section The National Pension System (NPS) was introduced 80CCD (2) of the Income Tax Act. The employers by the Government of India vide notification dated 22nd can also claim deduction of the same under December, 2003, to replace the defined benefit pension Section 36(i) (iv) (a) of the Income Tax Act. system by defined contribution pension scheme in order to provide old age income security in a fiscally sustainable  Amount utilized for purchase of annuity plan and manner and to channelize small savings into productive lump-sum withdrawal on exit is exempted tax sectors of the economy through prudential investments. under Section 80CCD (5) and Section 10(12A) of It was made mandatory for all new recruits to the the Income Tax Act, 1961 respectively. Government service (except armed forces) with effect from  Interim/ Partial Withdrawal from NPS Tier I up to 1st January, 2004, and has also been rolled out for all 25% of the contributions made by NPS subscriber citizens with effect from 1st May, 2009, on voluntary basis. is also tax free. NPS has been adopted by most State Governments and most of the Central and State autonomous bodies.  Contribution by the Central Government Subsequently, the Pension Fund Regulatory and employees under Tier-II Tax Saver Account of NPS Development Authority (PFRDA) Act, 2013 was passed. is covered under Section 80 C of the Income Tax The Scheme offers two types of accounts, namely Tier-I, Act, 1961, for deduction up to `1.50 lakh with a which is the Pension account, and Tier-II account, which lock- in period of 3 years. is a voluntary withdrawal account allowed with an active Tier-I account. At exit on superannuation, subscriber would d. Freedom of choice for selection of Pension be mandatorily required to invest at least 40% of the Funds and pattern of investment to pension wealth in Tier-I to purchase an annuity from an Government employees Insurance Company regulated by the Insurance Regulatory  Choice of Pension Fund: Subscribers are allowed and Development Authority of India (IRDAI) and a maximum to choose any one of the pension funds including of 60% of the accumulated corpus is given to the subscriber Private sector pension funds. They can change in one lump-sum. If the subscriber exits before their option once in a year. superannuation or 60 years of age, he/ she has to invest at least 80% of the accumulated balance to purchase an  Choice- of Investment pattern: The Government annuity and the remaining 20% can be withdrawn as lump employees choose to either invest 100% of the sum. Some features of NPS are listed below: funds in Government securities (Scheme G) or in 268Department of Financial Services V Conservative Life Cycle Fund with maximum Moderate Life Cycle Fund with maximum exposure to equity capped at 25% at the age of exposure to equity capped at 50% at the age of 35 years and tapering off thereafter (LC-25), or 35 years and tapering off thereafter (LC-50). The status of NPS as on 31st October, 2024, is as under: Sector Number of Asset under Management subscribers (Rs in Cr.) Central Government 26,79,623 3,61,216 State Government 67,80,644 6,63,429 Non-Govt Corporate 21,70,791 1,98,812 Sector All Citizen 39,38,762 68,080 Model NPS Lite* (discontinued) 33,44,225 5,932 Total 1,89,14,045 12,97,469 *(No fresh registration permitted w.e.f. 1st April, 2015) NPS Subscriber Base: Source: NPS Trust New Initiatives under NPS Bill Payment System (BBPS), using multiple payment applications such as BHIM, PhonePe, PayTM etc.  A new Life Cycle Fund namely Balanced Life Cycle Fund (BLC) was launched on 01st October, 2024. 10.2 NPS- Vatsalya Scheme Equity allocation up to 50% is maintained until the NPS Vatsalya Scheme, announced by the Hon'ble age of 45. This is currently available to subscribers in Finance Minister in the Union Budget of FY 2024-25, the private sector (All-Citizen Model and Corporate). was launched on 18th September, 2024. The scheme  Same Day Investment of NPS contributions (T+0) is designed for parents/guardians to contribute, a minimum of Rs. 1000 per annum with no ceiling on received by Trustee Bank. Earlier, NPS contributions maximum contribution, for minor subscriber. On received by the Trustee Bank were invested on the attaining the age of majority, the account of the next settlement day (T+1), however, from 1st July , subscriber can be seamlessly converted into NPS 2024, NPS contributions received by the Trustee Bank account. All minors who are citizens of India, are are invested on the same day. eligible to participate in the scheme, on a voluntary  To facilitate easier contribution, an additional channel basis. As on 1st December, 2024, a total of 70,561 for the NPS contribution has been introduced on Bharat subscribers have been enrolled under the scheme. 269Annual Report 2024-2025 10.3 Atal Pension Yojana (APY) Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month or Rs. 5000 per month, after the age of 60 years Atal Pension Yojana (APY) was launched on 9th May, until death, depending on the contribution chosen. The 2015, with the objective of creating a universal social spouse of the subscriber shall be entitled to receive the security system for all Indians, especially the poor, the same pension amount as that of the subscriber after the under-privileged and the workers in the unorganised sector. death of the subscriber. After the death of both subscriber It is open to all citizens of India between 18-40 years of and the spouse, the nominee of the subscriber shall be age having a savings bank account in a bank or post- entitled to receive the pension wealth, as accumulated till office. For better targeting of guaranteed pension to age 60 of the subscriber. unorganised sector workers, an income tax payer shall not be eligible to join APY from 1st October, 2022. The APY is being administered by the Pension Fund subscriber under APY is required to make a monthly/ Regulatory and Development Authority (PFRDA) under the quarterly/six monthly contribution of an amount determined overall administrative and institutional architecture of the by the amount of pension chosen and the age of joining National Pension System (NPS). As on 29th November, the scheme. The subscriber shall receive a government 2024, the number of enrolments under APY is more than guaranteed minimum pension of Rs.1000 per month, 7.15 crore with an AUM of Rs. 41,882 crores. Source: NPS Trust 270Department of Financial Services V 10.4 Major measures/steps undertaken to increase  Online channels such as e-APY, net-banking, mobile coverage under the Schemes: app and bank's web-portal, activated for easy online onboarding. National Pension System  APY Help Desk and Chatbot at Protean - CRA are  Engaging with Fintech companies to increase operational for assisting APY subscribers. penetration through online mode and with Regional Rural Banks (RRBs) to focus on the rural areas.  QR Codes for APY User services, APY Transactional services, APY Information services, APY Podcast/  Regular conferences are being organized on NPS in Videos, APY Call Centre are available for creating association with trade bodies. awareness.  ENRICH ELEVATE ENROL - TRIPLE "E" and NPS 10.5 Steps undertaken for Financial Literacy and Diwas campaigns were organized to encourage and Awareness creation honor the efforts of PoP officials who significantly contribute to NPS expansion.  PFRDA is imparting training, through an empaneled agency, to existing subscribers as well as general  Publicity and media campaigns are being run by public, on the pension schemes regulated/ PFRDA through electronic media, print media, and administered by the PFRDA. social media.  The "Retirement Planner Scheme" - an initiative which  PFRDA organized Symposium on 'Atmanirbhar aims at creating awareness about retirement planning, Pensioned Society for a Viksit Bharat' in collaboration pension schemes regulated/administered by the with IIM Lucknow on 22nd June, 2024, at Noida Campus PFRDA. of IIM Lucknow, to engage with all the stakeholders and eminent experts to come out with policy 10.6 Initiatives for improving delivery of services and suggestions, and an action plan. ensuring 'inclusive growth' Atal Pension Yojana Vide Gazette Notification dated 16.08.2024, this Department has issued the Accessibility Standards and  Physical APY outreach program and townhall Guidelines (For creating infrastructure for persons with meetings are organised all over India. disabilities) for PFRDA-regulated intermediaries.  Zonal strategy review meetings are conducted at New 11. Financial Institutions Delhi, Mumbai, Kolkata and Chennai with APY-SPs and SLBC Convenors, to discuss strategies for the 11.1 National Housing Bank (NHB) promotion and outreach of APY. The National Housing Bank (NHB) is a development  Performance review meetings were conducted with financial institution, established in 1988, under the National the Nodal Officers of APY Service Providers (Banks Housing Bank Act, 1987 (Central Act no. 53 of 1987). NHB and DoP) and SLBCs/UTLBCs on a regular basis. operates as the principal agency to promote housing finance institutions and to provide financial and other  APY Subscribers Information Brochure is made support to such institutions. NHB's three broad functions available online in 13 vernacular languages A single- are Supervision of Housing Finance Companies (HFCs), page flyer on APY is also made available in English Financing and Promotion & Development. NHB provides and 22 Indian languages included in the Eight Schedule finance to the housing sector through two windows namely of the Constitution. Refinance and Project Finance. NHB's business includes refinancing individual housing loans of HFCs, SCBs,  Periodic advertisements are published in print, Regional Rural Banks and Small Finance Banks (SFBs) electronic, and social media. and financing public agencies and public private  Virtual capacity building programs for Banking partnerships for their housing projects. Correspondents (BCs) and field staff of Banks, Self The Urban Infrastructure Development Fund (UIDF) was Help Group (SHG) members, bank-sakhis of State initiated in the Union Budget of FY 2023-24 utilizing the Rural Livelihoods Missions (SRLMs) organised to priority sector lending shortfall. As on 31.12.2024, an propagate APY. amount of `20,000 crore (`10,000 Crore under Tranche-I  Engagement with various Ministries of Government & II each) has been allocated under UIDF, managed by of India, National Centre for Financial Education the National Housing Bank (NHB). The primary objective (NCFE), National Bank for Agriculture and Rural of UIDF is to complement the urban infrastructure Development (NABARD), National Rural Livelihood development initiatives of State Governments/UTs in Tier Mission (NRLM), and SRLM to spread awareness 2 and Tier 3 cities by offering a reliable source of financing. and coverage of APY. NHB has established normative allocation guidelines for 271Annual Report 2024-2025 States/UTs and implemented an automated system for Bengaluru, Bhopal, Bhubaneshwar, Chandigarh, Chennai, efficient scheme execution. As on 31.12.2024, the Bank Delhi, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, has sanctioned ` 6,882.85 crore under UIDF. Mumbai, Patna, Raipur, Ranchi and Trivandrum. 11.1.2 Refinancing National Housing Bank (NHB) is an officer-oriented development financial institution with staff strength of 241 Till 31.12.2024, National Housing Bank has disbursed officials (as on December 31, 2024) with diversified cumulative refinance of ` 4.04 lakh crore, out of which ` educational background. NHB operates through its 52,447.80 crores have been disbursed under Affordable Headquarter located at New Delhi and Regional Offices Housing Fund. The details of refinance activities undertaken spread across the country. As of December 2024, the by NHB during FY 2023-24 and FY2024-25 (till 31.12.2024) Bank has 17 Regional Offices situated at Ahmedabad, are as below: (`Crores) FY2023-24 (01.07.2023 – 30.06.2024) FY2024-25 (01.07.2024 – till 31.12.2024) Business Sanction Disbursement Outstanding Sanction Disbursement* Outstanding Groups as on 30- as on 31- 06-2024 12-2024 Institutional 29,458 27,244 77,292 21,753 13,261 80,961 Finance (Refinance) -NBFC (HFCs) Institutional 6,212 4,841 24,911 5,010 600 22,119 Finance (Refinance) -Banks Total 35,670 32,085 1,02,204 26,763 13,861 1,03,080 *figure includes disbursement from carried forwarded limit of last financial year. Institutional Finance (Refinance to different Business Groups) - FY 2023-24 Institutional Finance (Refinance to different Business Groups) FY 2024-25 (Till 31.12.2024) 272Department of Financial Services V 11.1.3. Financial Highlights Financing & Development of the Micro, Small and Medium Enterprises (MSME) sector and in coordinating the  Bank posted a Net Profit of ` 909 crore for the functions of various Institutions engaged in similar Half Year (HY) ended December 2024 (July- activities. December) with ROA of 1.61%, Return on NOF of 13.44% and Capital Adequacy Ratio (CRAR) SIDBI extends financial assistance to MSMEs by way of 40.57% as on 31.12.2024. of (a) Direct Finance through its branch network as also in partnership with other Institutions and (b) Indirect  Gross NPA ratio of the Bank stood at 0.62% as Finance/Refinance through Banks (including Small on 31.12.2024. Finance Banks), NBFCs, MFIs and other institutions by 11.1.4. Projections/estimates for the period from 01- extending refinance/ resource support assistance against 01-2025 to 30-06-2025 MSME portfolio of such institutions. Apart from the above, SIDBI is also engaged in various developmental and  Bank has disbursed a cumulative amount of ecosystem building initiatives for the MSME sector in India ` 13,861 crores till 31.12.2024 during the current such as, Cluster Level Interventions, Promotional & financial year (July, 2024 - June, 2025). Development Initiatives, Government Scheme Management, Digital Innovations, Venture Capital Support  Bank has projected refinance sanctions of ` 45,000 for Start-ups, etc. crores and disbursements of `40,000 crores during FY 2024-25 (July-June). SIDBI through its network of subsidiaries/ associates viz. MUDRA Ltd., SIDBI Venture Capital Ltd, CGTMSE 11.2 Small Industries Development Bank of India continues to make targeted interventions like venture (SIDBI) capital investment, credit guarantee in the MSME Small Industries Development Bank of India (SIDBI) was ecosystem. established under an Act of Parliament in 1990. SIDBI is 11.2.1 Financial Highlights the Principal Financial Institution engaged in Promotion, Amount in Crore Business Groups FY 2024 FY 2025 (as on 31.12.2024) Outstanding Outstanding Direct Credit 26,826 31,566 Refinance to Banks 3,63,101 3,69,809 Refinance to NBFCs 55,205 53,933 Refinance to MFIs 8,772 6,554 Assistance under Cluster Development Fund 2,111 2,339 Total 4,56,015 4,64,201 Charts comparing financial data as on FY 2024 (as on 31/03/2024) and FY 2025 (as on 31/12/2024) Net Profit: The Net profit of the bank increased by 20% to Rs 4,026 crore in FY2024. Asset base: Total Assets increased by 30% to Rs 5,22,521 crore in FY2024. Financial Highlights of SIDBI 363101 369808 4,00,000 3,00,000 2,00,000 55205 53928 1,00,000 26826 31565 8772 6554 2111 2339 0 Direct Credit Refinance to Refinance to Refinance to Assistance Banks NBFCs MFIs under SCDF 273Annual Report 2024-2025 11.2.2 Initiatives: lakh IMEs in rural /semi-urban areas with cumulative credit of `5,208 crore. Over 85% of  The new Initiatives of SIDBI for the MSME Sector these were women beneficiaries. SIDBI has also include end-to-end digitization of its Direct Credit started lending to individual women members of operations, launch of Express loan product (a SHGs in the SRLM structure. straight through process for quick in-principle sanction without any paper work), launching of  During the year, the Credit Guarantee Fund Trust an NBFC Growth Accelerator Programme (NGAP) for Micro and Small Enterprises (CGTMSE) for capacity building of smaller/lower-rated reached a significant milestone of approving #1 NBFCs, establishing smart clusters through crore guarantees in its 25th year. energy efficiency (EE) workshops and energy 11.2.3 GST Sahay Project- audits in MSMEs using Energy Service Companies (ESCOs) under GRiT (Green SIDBI, in association with Online PSB Loans Ltd (OPL) Inclusivity) project, Udyam Assist Platform etc. and iSPIRT, has developed a reference GST Sahay App using the Open Credit Enhancement Network (OCEN) and  SIDBI's service coverage to MSME Clusters: As Account Aggregator (AA) frameworks for providing 'on tap' announced by Hon'ble FM in the Budget, out of invoice-based financing (cash flow based) for small value the 24 new Branch Offices proposed to be opened credit to micro enterprises. The app journey is paperless in the current FY, SIDBI has already expanded and covers the entire credit life cycle from origination to its physical presence by opening 22 new branch repayment. It uses trade information from GSTN, Bank offices. The remaining 2 branches shall be opened information through AA, Credit bureau status, etc., and before March 31, 2025. After the opening of all 24 also other components of India Stack like e-sign and e- Branch offices, SIDBI's reach will extend to 168 stamping, e-NACH mandate, etc. to achieve paperless out of 242 major clusters. process. After RBI approval for adoption of GST Sahay  Fund of Funds Scheme (FFS): FFS contributes app by Regulated Entities, SIDBI launched this App on to the corpus of SEBI registered Category I and II 12.3.2024 for providing working capital to Jan Aushadhi Alternative Investment Funds (AIFs). These AIFs Kendra and related stakeholders. Lenders who have rolled in turn are required to invest at least twice the out pilot products based on GST Sahay app includes contribution made under FFS in 'startups' as HDFC Bank, some Small Finance Banks & NBFCs. Other defined by the Government of India gazette major banks i.e. SBI & PNB are also in the process to notification. As on 31st December 2024, as against rollout the product. the corpus of `10,000 crores, SIDBI has committed a cumulative amount of `11,687.70 11.3 Export - Import Bank of India (Exim Bank) crore to 151 AIFs from the FFS. The scheme has Exim Bank was established as a statutory, apex helped catalyse raising of more than Rs 80,000 financial institution in 1982 under an Act of the Parliament crores of capital by the AIFs that have been of India, for financing, facilitating and promoting India's supported under it. While FFS is largely focused international trade and investment, for functioning as the on startups in early / early growth stage, it is principal financial institution for coordinating the working encouraging to note that 22 of the supported of institutions engaged in financing export and import of startups are classified as "Unicorns" out of the goods and services with a view to promoting the country's 117 Unicorns in the country. international trade, and to function as a key policy-input  Udyam Assist Platform (MSME Formalisation): provider to the Government of India (GoI). SIDBI has been authorised as Implementing Exim Bank offers a comprehensive range of lending Agency for the Udyam Assist Platform (UAP) and service / advisory programmes, aimed at aiding the envisaged as a digital platform for the Udyam globalisation efforts of Indian companies. Exim Bank registration of Informal Micro Enterprises (Micro especially distinguishes itself in the areas of Project Enterprises not covered under the GST Exports, Lines of Credit (LOCs) and Overseas Investment ecosystem). Till December 31, 2024, 2.52 crore Finance (OIF) and Ubharte Sitaare Programme (USP), Informal Micro Enterprises (IMEs) were registered which benefit a gamut of externally oriented Indian on UAP through 209 Designated Agencies. companies, including MSMEs. The Bank's Trade  SIDBI's Prayaas scheme which provides Assistance Programme (TAP) is also working towards unsecured assistance of `50,000 - `5,00,000 to addressing the trade finance gap to businesses, especially Informal Micro Enterprises (IMEs) through a MSMEs, by providing an effective bridge between local phygital journey, has so far facilitated over 2.84 banks in partner countries and banks in India. 274Department of Financial Services V Exim Bank's Financial Programmes Lines of Credit (LOC) 324 LOCs to 68 countries with commitments of USD 31.16 bn (equ. ₹ 2,61,113 crore) Portfolio : ₹ 59,079 crore Policy Business: ` 71,505 crore (44% of Net Loan Assets ) Concessional Finance Scheme (CFS) Portfolio : ₹ 12,426 crore) 275Annual Report 2024-2025 Policy Business (Data as on September 30, 2024) & Commercial Business: Byuers' Credit Under NEIA The Bank has sanctioned an aggregate amount of USD 2.55 bn, for 28 projects, valued at USD 2.80 bn (equ. ` 23,463 crore). An aggregate amount of USD 42.17 mn (equ. ` 353 crore) was disbursed during the HYE September 30, 2024, under the sanctioned facilities, and the outstanding balance under the BC-NEIA portfolio stood at USD 0.76 bn (equ. ` 6,369 crore) . Sustainable Financing Programme Trade Assistance Programme The Bank had an exposure of The Bank has supported 642 transactions, including refinance and credit lines, ` 1,398.60 crore under this aggregating USD 2.28 bn (equ. ` 19,106 programme. The Bank has supported crore) in more than 40 countries across several borrowers under the Africa, South Asia, East Asia, Latin programme, across a wide array of America and Middle East, supporting sectors, including solar energy, wind more than 150 Indian exporters, based in energy, cleantech, sustainable 18 states of India from varied sectors. farming, sustainability solutions, biodegradable dinnerware, etc. Commercial (Fund based) Business ` 91,072 crore (56% of Net Loan Assets) Non-Fund based Portfolio- ` 14,594 crore Ubharte Sitaare Programme The Bank has extended financial support by Non-Fund based Portfolio way of 89 sanctions aggregating ` 1,298.54 (Guarantees, Letters of Credit, etc.) crore to 70 companies and has disbursed ` 788.40 crore, under both fund and non-fund ` 14,594 crore based portfolio. Under the Ubharte Sitaare Fund, the total commitments stand at ` 357.50 crore from 12 banks / Institutions / Fund of Funds and cumulative investments to companies stand at `181.60 crore. Overseas Investment Finance During HYE September 30, 2024, the Bank sanctioned funded and non-funded assistance aggregating ` 714 crore under Overseas Investment Finance (OIF) to 6 Indian corporates for part financing their overseas investments in 4 countries. India Exim Finserve IFSC Pvt. Ltd.  the subsidiary is offering Factoring and Forfaiting  India Exim Finserve was inaugurated on August of Receivables to Indian Exporters, Catering to 8, 2023, in line with Budget Announcement 2023. Indian Corporates and MSMEs. 276Department of Financial Services V  As on September 30, 2024, the progress is as follows: The subsidiary has pipeline of factoring transactions covering Indian exports to US, Europe and Middle East. The Exim Finserve has supported transactions with aggregate value of USD 311,450.51 (equ. ₹ 3 crore) covering 79 transactions (invoices) for exports to US and UK supporting MSME exporters, based in Tamil Nadu and Uttar Pradesh. Range of trade finance products including export factoring to mitigate payment risks, optimise. working capital cycles and unlock export potential for Indian exporters. 11.4 India Infrastructure Finance Company Limited class infrastructure in India. IIFCL has set up three wholly- owned subsidiaries as under: (IIFCL) a) IIFC(UK) IIFCL is a wholly-owned Government of India company set up in 2006 to provide long-term financial assistance to b) IIFCL Projects Limited (IPL) viable infrastructure projects. IIFCL has been registered c) IIFCL Asset Management Company Limited (IAMCL) with the Reserve Bank of India as a Non-Banking Finance Company - Infrastructure Finance Company (NBFC-ND- The organization gives overriding priority to Public- IFC) since September 2013. It is amongst the most Private-Partnership (PPP) projects. IIFCL provides long term financing to viable infrastructure projects through a diversified public sector infrastructure lenders in terms of product mix of Direct Lending (SIFTI), Takeout Finance, eligible infrastructure sub-sectors and product offerings. Refinance and Credit Enhancement. Taking its IIFCL is also active in providing inputs and policy support developmental role further, IIFCL has in FY 2021-22 in infrastructure financing space to the Government through ventured into investment in Infrastructure Project Bonds various forums, with an aim to promote and develop world- and lending to Infrastructure Investment Trusts (InvITs). Fig.1 Sanctions and Disbursements as on 31st December 2024 277Annual Report 2024-2025 On a standalone basis, as of 31st December, 2024, sanctions of Rs. 1,25,659 crore under direct lending. The IIFCL has made cumulative gross sanctions of Rs. company has made cumulative disbursements of 2,96,814 crore to more than 805 projects under Direct Rs. 1,43,846 crore till 31st December, 2024. Since Lending, Takeout Finance, Refinance Schemes, Invits, and inception, 50% of IIFCL's business was done in last 4.75 investment in Bonds. This includes cumulative gross years. Fig.2 Non-Performing Assets as on 30th September 2024 IIFCL has continued to show declining trend in respectively, as of 30th September, 2024, down from 1.61% Non-Performing Assets (NPA) numbers and achieved a and 0.46% as at 31st March, 2024. reduction in Gross NPA and Net NPA to 1.25% and 0.34%, Fig.3 High Quality Assets (A, AA & AAA) IIFCL's asset quality has improved significantly over last three years, with 92% of IIFCL's loan assets are of high quality (rated A, AA & AAA) Fig.4 Profitability 278Department of Financial Services V IIFCL recorded an all-time high Profit after Tax (PAT) announcement made by Hon'ble Finance Minister in the of `1,552 crore in FY 2023-24, which is about 44% Union Budget 2021-22 and is set up as an infrastructure increase over PAT of `1,076 crore in FY 2022-23 and a focused Development Financial Institution (DFI) under the half-yearly PAT of `812 crore in FY 2024-25, which is National Bank for Financing Infrastructure and expected to exceed the previous year's record profit. Development Act 2021, (NBID Act) on March 28, 2021 to Major Initiatives taken by IIFCL support the development of long-term non-recourse infrastructure financing in India including the development  Focussed Business Strategy: IIFCL has taken its of the bonds and derivatives markets necessary for first ever initiative to strategically revamp its business infrastructure financing and to carry on the business of plan through external consultation in order to improve financing infrastructure. The Institution has been set-up the state of infrastructure in India. with both financial and developmental objective, as defined  Green and Sustainable Initiatives: In its endeavours in its Act. to promote green and sustainable financing, IIFCL has The Institution is supported with ` 20,000 crore of equity implemented Green Bond Framework, Sustainability & ESG Financing Framework and has also included and ` 5,000 crore of grant from the Government of India Allied infra sectors such as EV, Green Hydrogen, etc, (GoI). NBID was granted All India Financial Institution (AIFI) in its Credit Policy. status by the RBI on March 8, 2022. o Climate Strategy 2030: IIFCL has set the target Business & Operations: to facilitate at least 50% of incremental lending of NBID commenced its business operations on Rs.1 lakh crore towards green infra projects by December 29, 2022, with its first loan disbursement. The 2030, to achieve reduction in lending for fossil fuel- Institution reported Net Profit After Taxes of ` 1,046 crore based power plants over 2024, to achieve net zero for FY 2023, ` 1,602 crore for FY 2024 and received Scope 1 and Scope 2 by 2030, and to maximize Highest AAA (stable) domestic rating from ICRA, CRISIL, utilization of IIFCL's CSR spending towards green CARE and India Ratings. The Institution has reported a initiatives. net profit of ` 977 crore, for the first six months of FY o ESG Rating: IIFCL has been assigned an ESG 2025. rating for the first time of 77 by ICRA ESG, reflecting IIFCL's commitment to integrate The Institution successfully raised ` 19,516 crore sustainability into its operating processes and through bonds in FY 2023 - 2024 with its maiden Bond governance, showcasing notable progress in its Issuance in June 2023 and successfully listed on both ESG journey. stock exchanges - BSE and NSE. Further, in FY 2024- 2025, during the half year ended September 2024, the  Digital Initiatives: IIFCL has been active on the digital institution had successfully raised ` 8,911 crore through front, with initiatives such as Advanced Infrastructure bonds of which ` 3,911 crore had tenor of 20 years. Project Monitoring System (AIPMS), which was introduced for the first time in the history of As of December 31, 2024, the Institution has accorded infrastructure sector in India. The AIPMS is envisaged cumulative sanctions (since December 2022) of ~` as an effective tool for ensuring progress-linked 1,69,000 crore and cumulative disbursement of ~` 62,000 disbursement in infrastructure projects with drone- crore across sector such as Roads, Renewables, Power based monitoring. Generation, Railways, Transmission and Distribution, and 11.5 National Bank for Financing Infrastructure and Social Commercial Sectors amongst others and more than Development ~ 50% share of sanctions spread across long-term tenors ranging between 15-30 years. The institution projects to Genesis: accord cumulative sanctions of ~ ` 2,00,000 crore and The National Bank for Financing Infrastructure and cumulative disbursements of ~ ` 94,000 crore by end of Development (NBID) had been established through an FY 2024-2025. 279Annual Report 2024-2025 Major achievement towards Developmental iv. The Institution is being considered for accreditation Mandate: with Green Climate Fund (GCF) to the Ministry of Environment, Forest and Climate Change (MoEFCC). i. The Institution is offering Transaction Advisory Services (TAS) with focus on Public-Private Partnerships (PPP) v. For crowding-in private capital, the Bank held maiden projects facilitating creation of bankable project Infrastructure Conclave on September 12th, 2024 at pipeline. Mumbai and co-hosted Infrastructure Financing Conference at London, U.K. on November 14th, 2024 ii. The Institution is taking steps for developing the ecosystem by creating a Data Repository for the vi. The Institution is also taking steps towards crowding infrastructure sector complementing the National in of investments through Blended / Concessional Infrastructure Pipeline in collaboration with PM-Gati Finance structures and engagement with World Bank Shakti to crowd-in patient capital. for development of Partial Credit Enhancement (PCE) iii. NBID has also introduced a Programme based lending product; MoU with International Finance Centre (IFC) product for Urban Local Bodies (ULBs)/ Municipal for Co-Lending activities, LoI with Asian Development Corporations for debt financing of Waste Management Bank for collaboration aimed at promoting climate projects including Waste to Power, Waste to Biogas resilience and supporting the improvement of urban & Waste-water treatment. and rural infrastructure. 11.6 The Industrial Finance Corporation of India (IFCI) domestic manufacturing and to attract large investment in the identified sectors. IFCI is also the Verifying & IFCI Limited (IFCI) was set up as a Statutory Monitoring Agency for various capital subsidy schemes. Corporation ("The Industrial Finance Corporation of India" Under Corporate Advisory, IFCI is offering financial advisory, now named as "IFCI Limited") in 1948, as independent ESG advisory and other Project advisory services to the India's first Development Financial Institution, for providing Corporate & Government sectors. IFCI is also the Nodal medium and long term finance to industry. In 1993, after Agency for monitoring loans of Sugar Development Fund repeal of the IFCI Act, IFCI became a Public Limited (SDF) since 1984. Company, registered under the Companies Act, 1956. IFCI is also registered with the Reserve Bank of India (RBI) as 12 Special Court and Office of Custodian a Systemically Important Non-Deposit taking Non-Banking 12.1 Special Court Finance Company (NBFC-ND-SI) and is also a notified Public Financial Institution under Section 2(72) of the The Special Court (Trial of Offences Relating to Companies Act, 2013. IFCI became a Government Transactions in Securities) Act, 1992 came into force on Company in April 2015 and as on date (22-01-2025), the 6.6.1992. The Act was necessitated by reasons of the shareholding of GoI stands at 71.72% of paid-up capital unprecedented situation wherein very large amount of of IFCI. IFCI is a public limited company listed on BSE public monies had been siphoned off into private pockets. and NSE and has six number of subsidiaries, and one The legislature sought to set up a Special Court through associate under its fold. this Act for (a) speedy trial of offences, (b) immediate attachment and freezing of all assets of parties suspected IFCI also provides Government Advisory services and to be involved in the scam and (c) a reasonable and Corporate Advisory services. In Government Advisory, IFCI equitable distribution of the property. is appointed as a Project Management Agency (PMA) for various Production Linked Incentive (PLI) schemes The Special Court, at present, has one Judge who is launched under the aegis of "Atmanirbhar Bharat" by the sitting High Court Judge on its strength. To support their Government of India. These schemes are aimed at boosting day-to-day functioning, the office of the Special Court 280Department of Financial Services V functions with a staff of 26 officials at various levels. These strength of the Office of the Custodian is 19 (including the posts are renewed on a year-to-year basis by DFS, post of Custodian). The charge of Custodian is presently Ministry of Finance with the approval of the competent held by a Joint Secretary level Officer of the Department authority. As on 31st March 2024, a total number of pending of Financial Services in addition to his substantive charge matters in the Special Court is 79 which includes, Suits in the Department of Financial Services. and Special Cases (Criminal) and 73 Civil and Criminal Appeals arising out of the orders passed by the Special Since inception, a total of 13,542 cases have been Court are pending before the Hon'ble Supreme Court. filed in the Special Court and 549 cases in Supreme Court, which have been defended/contested by the Custodian. 12.2 Office of the Custodian 13,496 cases in Special Court and 488 cases in Supreme Court have been disposed of, leaving a balance of 46 cases To assist the Custodian in discharging the duties under the Special Court (TORTS) Act, 1992, at present there in Special Court and 61 cases in Supreme Court to be are two offices one at New Delhi and the other at Mumbai. disposed as on 31st December, 2024. As on 31st December, The Delhi office handles the Administration and 2024, the total outstanding liabilities of notified parties Establishment matters of both the offices of Custodian were ` 42,117.77 crores as against recoverable assets and also deals with Supreme Court cases. The Mumbai amounting to ` 5074.92 crores. Till 31st December, 2024, office mainly deals with the Court matters of the Special `12,268.9 crores (approximately) has been recovered by Court, which is presided over by a sitting Judge of Hon'ble the Custodian and out of these assets Bombay High Court. Apart from that the Mumbai office ` 7,193.98 crores have been distributed to the Income also manages attached properties of notified persons Tax Department, Banks and others as per the orders of involved in the Security Scam. The present sanctioned the Special Court. The status of de-notified parties as on 31.12.2024 is as under: Total De-Notified Remaining Remarks Notified till date Notified Parties Parties 70 29 41 Out of remaining 41 NPs, 27 NPs are family members of Late Harshad Mehta and their associate firms. Last Notification notifying Smt. Rasila Mehta (Mother of Harshad S Mehta) and Smt. Rina Mehta (Sister-in-law of HSM) was issued on 4 Jan 2007.Last party de-notified on 12th December, 2024 was Shri B.C.Dalal. 13. Disposal of Public Grievances for taking necessary action. Regular monitoring of adherence to timelines is done by Department of Financial Timely redressal of public grievances relating to Services. banking and insurance sectors is an important tool towards upgrading the quality of customer service in this very crucial In Department of Financial Services, a large number segment of financial sector. Department of Administrative of grievances/complaints concerning Banking and Reforms and Public Grievances (DARPG) has established Insurance Sectors are received directly from citizens, both CPGRAMS (Centralised Public Grievance Redressal and online and by post. The postal grievances are also digitized Monitoring System), (an online web-based system), to and processed through CPGRAMS for its onward resolve public grievances. transmission to the designated Nodal Officers i.e. Deputy General Manager/General Manager (DGM/GM) of Department of Administrative Reforms and Public concerned Public Sector Banks/Public Sector Insurance Grievances (DARPG) vide its Office Memorandum dated Companies (PSBs/PSICs) for its redressal within a 23.08.2024 had reduced the timeline of redressal of maximum time limit of 21 days. These directions are grievance from 30 days to 21 days and the timelines for followed by all organisations under the Department of redressal of appeals remains unchanged to 30 days. Same Financial Services. Action taken reports are uploaded on was communicated to RBI/IRDAI/All PSBs/PSICs/FIs vide the system and a scanned copy of the reply is provided to Department of Financial Services email dated 20.09.2024 the complainant on CPGRAMs and same can be viewed 281Annual Report 2024-2025 by them online. In addition, a dedicated Grievance Handling Public Sector Insurance Companies (PSICs) and Financial Cell has been set up in the Department, which is accessible Institutions (FIs). A Joint Secretary level officer has been at the Telephone No. 23346785 and email address sobo3- designated as Chief Vigilance Officer of the Department. dfs@nic.in. He is assisted by Director, Under Secretary and Section Officer in the discharge of his functions. The Banks and Insurance Companies have grievance redressal mechanism in place and are also hosted on 15.1 Performance their respective websites. The first level of grievance redressal is Branch Manager in Banks and Insurance a) The Vigilance Division of the Department monitors the Companies followed by Zonal Managers and then General progress on disposal of complaints received from Manager (Customer Care) in Head Office. The grievances various sources and pendency of disciplinary / concerning private banks and private insurance companies vigilance cases regularly and holds meeting with CVOs are resolved through Reserve Bank of India (RBI) and in this Department at appropriate intervals. Insurance Regulatory and Development Authority of India b) Instructions have been issued from time to time, as (IRDAI) respectively. The PSBs have also established and when any gap in the system is observed, to Ombudsman for settlement of grievances. strengthen the preventive vigilance in these The Reserve Bank of India (RBI) has launched 'The organisations. Reserve Bank Integrated Ombudsman Scheme, 2021' on c) Vigilance Section, DFS organised a training 12.11.2021. The Scheme integrates the existing three programme for CVOs of PSICs and officers of DFS Ombudsman Scheme of RBI namely - (i) the Banking through National Insurance Academy, Pune. Ombudsman Scheme, 2006 (ii) the Ombudsman Scheme for Non-Banking Financial Companies, 2018 and (iii) the d) Vigilance Section also held many Secretary level Ombudsman Scheme for Digital Transaction, 2019. In meetings to review pending fraud cases, status of addition to integrating the three existing schemes also Section 17A and 19 of Prevention of Corruption Act, includes under its ambit Non-Scheduled Primary Co- 1988 cases with senior officers of CBI and CVOs of operative Banks with a deposit size of Rs.50.00 crore and PSBs. above. The scheme adopts "One Nation One Ombudsman mechanism". There are 17 Insurance Ombudsman set up e) A Committee has been formed by IBA to suggest a by IRDAI. In case of banking there are 24 offices of RBI vigilance manual or SOP to protect bonafide bankers ombudsman. When the petitioners are not satisfied with from disproportionate action by Law Enforcement the kind of disposal by the concerned Banks/Insurance Agencies. Vigilance Section, DFS is providing Company, they can file their complaints with the necessary support to the Committee to assist banking Ombudsmen concerned for the settlement of their fraternity. grievance through mediation and passing of awards. f) CVC's Annual Sectoral Review Meeting for PSBs was 14. Right to Information (RTI) Act, 2005 held to review the status of large value fraud cases, complaints and sanctions for investigation and As per RTI Act, any citizen can seek information under prosecution. RTI by making an appropriate application in writing along with the prescribed fees to the Central Public Information 15.2. Vigilance Awareness Week was observed from Officer, Department of Financial Services,3rdFloor, Jeevan 28.10.2024 to 03.11.2024. Essay and slogan writing Deep Building, Parliament Street, New Delhi-110091 and/ competitions, both in Hindi and English, were held to create or can also file an RTI under RTI Act, 2005, on Online awareness about vigilance rules in the Department. Portal available at www.rtionline.gov.in Vigilance Section, DFS also oversaw the successful During FY 2024-25 (up to 30.11.2024), 3886 RTI completion of Vigilance Awareness Week in subordinate Applications and 27 First Appeals were received on various organisations viz. Public Sector Banks/Public Sector matters related to Banking, Insurance and pension. All Insurance companies and Public Sector Financial the applications and appeals were replied/disposed of within Institutions. the stipulated time as prescribed under the RTI Act, 2005. 16. Debt Recovery Tribunals(DRTs)/Debt Recovery Section 4 of the RTI Act casts an obligation on every Appellate Tribunals(DRATs) public authority to make certain suo-moto disclosures on 16.1 Revamped e-auction portal its website. DFS has also made such suo-moto disclosures on its website, regarding information on various In 2018, Department of Financial Services, Ministry functions, powers and duties etc. of Finance, suggested to create an e-Auction platform to capture and display complete details of properties 15. VIGILANCE mortgaged to banks which are to be auctioned under Department of Financial Services (DFS) is the SARFAESI Act and to boost the sale value realized through Administrative Department for Public Sector Banks (PSBs), bank e-auctions. 282Department of Financial Services V A common web portal https://ibapi.in (Indian Banks v. Standard format of notice for substituted service to be Auction Properties Information) after due testing by the published in the newspaper has been provided to member PSU banks was developed by Indian Bank standardize such notices. (erstwhile Allahabad Bank). Subsequently MSTC Ltd., a vi. Format of summon has been aligned with the PSU under the Ministry of Steel, was shortlisted for amendment carried out in the year 2016 in Section conducting property e-auctions with an integrated e- 19 of the RDB Act, 1993. payment facility. The common e-auction platform for PSBs went live in December 2019 under the name of "e-Bikray". vii. E- scrutiny has been enabled through regulations After consideration of challenges and concerns i.e. ease wherein defects can be notified to the applicant through of transacting, enhancing the user experience, expanding e mail/SMS. Further, the applicant can also remove the reach of the portal represented by Banks, it was the defects. decided to launch a revamped e-auction portal. In order to ensure that listing and auction of properties take place in viii. New provision has been made for weeding out of the a seamless manner, the revamped e-auction platform has cases filed prior to notification dated 1.2.2023 relating been made operational as per the latest standards in the to cases settled amicably between the parties and industry. This will result into increase in the pool of potential withdrawn from DRT by the Banks to economise on buyers and hence higher recoveries for banks. The portal the storage space. has now been launched. 17. Cyber Security and Fintech 16.2. Revision in the DRT regulations (a) Identification of Critical Information Infrastructure With a view to make processes more efficient in Debt in financial sector Recovery Tribunals (DRTs) and also to make it uniform Critical Information Infrastructure (CII) has been defined across DRTs, the regulations followed in the DRTs which in the Information Technology Act, 2000 as the computer were formulated in 2015 have been comprehensively revised resource, the incapacitation or destruction of which shall after consulting the stakeholders. The revised DRT have debilitating impact on national security, economy, Regulation 2024 has been sent by DFS to all DRTs for public health or safety. With a view to identifying CII in the adoption. The salient features of revised DRT Regulations financial services sector, this Department plays a pivotal 2024 are given as under: role in coordinating with Regulators (Reserve Bank of India, i. Uniform procedure has been prescribed to be followed Insurance Regulatory and Development Authority of India in DRTs. In order to reduce the time taken in wrapping & Pension Fund Regulatory and Development Authority) up the proceedings in DRTs and thereby increasing and NCIIPC for identifying and notification of critical efficiency of DRTs, maximum time limit for scrutiny infrastructure of regulators as also its regulated entities. has been reduced from seven days to three days, To streamline the process of identification of CII within waiting period for service of summons for the second financial services sector and to build a clear roadmap and time (in instances where summons served at the first pipeline for identification of CIIs in banking, insurance and time are returned to the Tribunal) has been reduced pension sector, a Standard Operating Procedure (SOP)has from 15 days to 7 days. Provision has been made for been put in place, in consultation with NCIIPC. As of date, immediate generation of RCs after final order from the certain systems/ products/ services in respect of 23 Presiding Officer. organisations/ banks/ regulator as Critical Information Infrastructure (CII) were notified as protected systems, of ii. Provision has been made for online application of which 9 were noted during the year 2023 and 5 have been Certified copy of the documents filed in DRTs. This notified in October, 2024 further, notification is in progress will enhance ease of access to the applicant in for 10 more organisations identified as CIIs. accessing the documents. (b) Launch of new website and Security audit iii. Provision for online inspection of the records of the cases filed in DRT on e-DRT system, has been The revamped website of the Department was enabled through amendments in regulation. The launched on November, 2023 with improved user interface. digitization of access to documents is likely to reduce The Web Application Security Audit of the new website, the time taken in the complete adjudication process. which is conducted annually, has been completed by Indian Computer Emergency Response Team (CERT-In) iv. Provision for furnishing a link to the defendant / empanelled auditor and the certificate of the same was respondents at the stage of summons itself to access issued to this Department in December, 2023. the digitized copy of the Paper Book and other documents will surely curtail the time taken by the (c) Cyber Crisis Management Plan defendant /respondent in filing the reply to the Original Application The parties cannot complain anymore that The purpose of Cyber Crisis Management Plan (CCMP) they have not got complete paper book (hard copy). is to establish the strategic framework and actions to 283Annual Report 2024-2025 prepare for, respond to and begin to coordinate recovery law enforcement agencies (LEAs). These engagements from a cyber incident. CCMP has been put in place in this have facilitated the exchange of ideas, addressed industry Department in October, 2020 and is updated periodically. challenges, and promoted awareness of emerging trends and regulatory frameworks. By building strong partnerships (d) Compliance to Cyber Security guidelines with ecosystem participants, the Department has In order to augment the security posture of Ministries/ reinforced its commitment to driving financial inclusion, Departments and associated Government organizations, enhancing digital infrastructure, and ensuring that India Indian Computer Emergency Response Team (CERTIn) remains at the forefront of global fintech innovation. released guidelines on Information security practices for The Department supported the fifth edition of Global Government entities on 30th June, 2023. This Department Fintech Fest, which was attended by Hon'ble Prime has proactively been implementing the measures stated Minister. A meeting of Hon'ble Finance Minister was in the guidelines. organized with Start-ups and Fintech ecosystem (e) Measures to create cyber awareness stakeholders, which was attended by Hon'ble Minister of State for Finance, various Ministries/Departments/ National Cyber Security Awareness Month (NCSAM) Organizations and Regulators. The department and Indian was observed during the month of October, 2024. All the Cyber Crime Coordination Centre (I4C) jointly organised a Regulators and organisations under DFS were requested half-day workshop with LEAs and Start-ups and Fintech to celebrate NCSAM by conducting various awareness ecosystem partners. Recently, DFS also held meeting activities on cybersecurity. Further the following activities with Fintech Ecosystem Partners to deliberate on the were held at DFS. issues of the fintech partners and suggestions which would be useful in creating a robust Fintech ecosystem.  Standees were placed in the office premises of DFS on cyber security awareness The Department also engages in a range of bilateral Fintech matters between India and several countries,  All officers of this Department were requested to including Singapore, the Philippines, the United Kingdom, undergo the course related to Cyber Security on the Taiwan, and the USA. The section also represents the iGOT Karmayogi platform during this month in which department in Inter-Ministerial AI Coordination Committee 33 officers participated. (IMACC), and has coordinated with MeitY in the project  Photo booth is placed on the ground floor of DFS near "Design and Development of Unified Blockchain the fountain and all staff members were requested to Framework for offering National Blockchain Services and take photos in the booth and post the same on social creation of a Blockchain Ecosystem". To raise awareness media(X, Facebook, Instagram etc.) with the hashtag of officers of the department and banks, the section #CyberJagrukNagrik. regularly organises Lecture/Knowledge Series on various subjects related to financial sector including Fintech and  4 Cybersecurity Awareness sessions have been Cyber Security. conducted for various sections in DFS during this month.in which 60 officials participated 18. Representation from SCs, STs, OBCs and PWDs in Financial Sector Institutions  All staff were requested to attend online Cyber Awareness quiz by NCIIPC. Department of Personnel & Training (DoP&T) in the Ministry of Personnel, Public Grievances and Pension, is  DFS participated in the Table Top Exercise by CERT- the Nodal Department for implementation of the reservation In on 22.10.2024. policy for Scheduled Castes (SCs) & Scheduled Tribes (STs), Other Backward Classes (OBCs), Economically  quiz competition on Cyber Awareness was conducted Weaker Sections (EWSs), and Persons with Disabilities for officials of DFS which was participated by 1124 (PwDs)(Divyangjan) in the Government of India. Instructions officers. regarding reservation in recruitment and promotion are  Cybersecurity Awareness session was delivered by issued by DoP&T from time to time. Department of Shri Sanjay Bahl, DG, CERT-In on 24.10.2024 which Financial Services (DFS) circulates these instructions to was participated by Senior level officials of DFS, RBI, the Public Sector Banks (PSBs), Public Sector Financial IRDAI, PFRDA, PSBs, PSICs and PSFIs. Institutions (PSFIs), Public Sector Insurance Companies (PSICs), Reserve Bank of India (RBI), Insurance Regulatory (f) Fintech and Development Authority of India IRDAI) and Pension The Department has been proactively engaging with Fund Regulatory and Development Authority (PFRDA) for stakeholders across the fintech ecosystem to foster implementation. Similarly, instructions issued by the other innovation, collaboration, and sustainable growth in the Nodal Ministries/ Departments for the welfare of aforesaid sector. Through regular interactions, workshops, and category employees, are also circulated to all PSBs, lecture series, it has created a platform for open dialogue PSFIs, PSICs, RBI, IRDAI and PFRDA etc. for with fintech startups, financial institutions, regulators, and implementation. 284Department of Financial Services V Details of representations from SCs/ STs/ OBCs/ 19. Audit Paras EWSs and Persons with Disabilities (PWDs) in Public A summary of Audit observations made available by Sector Banks / Financial Institutions and Insurance the Office of C&AG pertaining to DFS is at Annexure-III Companies is at Annexure I & II respectively. 285Annual Report 2024-2025 286Chapter - VI Department of Public Enterprises VI Department of Public Enterprises (DPE) 1. Public Enterprises Survey basis of recommendations of Public Enterprises Selection Board (PESB) after obtaining approval of competent The Department of Public Enterprises brings out authority and after completing due formalities in this the Public Enterprises Survey on the performance of regard. Central Public Sector Enterprises (CPSEs), which is laid 2.1.2 Government Directors: in the Parliament every year. The PE Survey Report 2023- 24 has been laid in the both the Houses of the Parliament The Government Directors are generally senior officers in December 2024. of the Government of India, State Government(s) or other As per PE Survey 2023-24 there were 448 Government agencies who are nominated to the Boards Central Public Sector Enterprises under the administrative of CPSEs by the concerned administrative Ministries in control of various Ministries/ Departments as on ex-officio capacity. The dual role of a Government Director 31.03.2024. Out of 448 CPSEs, 272 are in Operation of is clearly demarcated i.e. as a director of the company which 212 CPSEs showed profit during 2023-24. The and representative of the Government. As Director of the Overall ‘Net Profit’ of operating CPSEs was 3.22 lakh company, they are bound to exercise due diligence and crore in 2023-24 showing as increase of 47.42% over act in the best interest of the company keeping in view the previous year. The Contribution to the Central the provisions of the Companies Act 2013. Government Exchequer by CPSEs increased from 4.58 lakh crore in being the major shareholder in CPSEs, they are also 2022-23 to 4.85 lakh crore in 2023-24. required to protect its interest. In doing so, they can take formal instructions from the Government on critical issues A comparison of performances of CPSEs during and voice them in the meetings of the Board of the 2023-24 vis-a-vis the previous year i.e. 2022-23, is at company. They are required to provide timely feedback Annexure-2. on decisions taken by the company to their administrative 2. Organisation and Autonomy of CPSEs Ministry/Department/Organization. The endeavour of the Government is to make In respect of the matters having substantial Central Public Sector Enterprises (CPSEs) autonomous financial and other consequences to the Government (a) Board managed companies. Under Articles of as a shareholder and (b) on the policies of Government Association, the Board of Directors of CPSEs enjoys arising in the Board meetings, the Government Director autonomy in respect of recruitment, promotion and other is required to escalate them to the concerned Ministry service conditions of below board level employees. The and take their advice to formally prepare a view point of Board of Directors of a CPSE exercises delegated powers the Ministry and present the same in the Board of subject to broad policy guidelines issued by Government Directors meeting. The Government Director should also from time to time. regularly sensitize the Board about the relevant 2.1 Structure of Boards of CPSEs: Government Guidelines (including DPE Guidelines) and compliance of the same. The Board of Directors of CPSEs essentially consist of three types of Directors namely Government If the Board of a CPSE decides contrary to the Directors, Functional Directors and Independent (Non- Government policy, the Government Director should voice Official) Directors. The Boards are headed by a the concern of the Government and get his/her dissent Chairperson cum Managing Director. As per the extant or disagreement recorded in the Minutes of the Board guidelines the number of functional Directors should not meeting and report the same to the Ministry/Department. exceed 50% of the actual strength of the Board and the The Government Director is required to submit a quarterly number of Government nominee Directors shall be report on the issues deliberated by the Board, which in restricted to a maximum of two. In case of listed CPSEs his/her view merit attention of the Government and raise with executive Chairperson, the number of non-official alerts when things are not happening as expected in the Directors shall be at least 50% of the Board strength. In company. case of unlisted and listed CPSEs with non-executive Chairperson, at least one-third of the Board Members 2.1.3 Functional Directors: The Functional Directors shall be non-official Directors. are executive heads of the concerned functional areas of a CPSE and perform their executive role in the 2.1.1 Chairperson cum Managing Director: respective fields allotted to them, viz Operations, Finance, Appointment of CMD on the Board of CPSE is Marketing, Human Resources etc. The Functional made by the concerned administrative Ministry on the Directors are appointed on the Boards of CPSEs by the 287Annual Report 2024-2025 concerned administrative Ministry on the basis of ventures/subsidiaries, (iii) mergers & acquisitions, (iv) recommendations of Public Enterprises Selection Board human resources management, etc. During the year (PESB) after obtaining approval of competent authority 2024-25, Nine CPSEs, namely, National Fertilizers and after completing due formalities in this regard. PESB Limited, Central Warehousing Corporation, Housing is under the administrative jurisdiction of Department of & Urban Development Corporation Limited, Indian Personnel & Training. PESB issues the advertisement, Renewable Energy Development Agency Limited, shortlists candidates and holds selection interviews for Mazagon Dock Shipbuilders Limited, Railtel selection to the posts of functional Directors. The Corporation of India Limited, Solar Energy functional Directors are appointed for a tenure of 5 years Corporation of India (SECI) Ltd., NHPC Limited, SJVN or till their superannuation whichever is earlier. Limited were granted Navratna status upto 30.11.2024. 2.1.4 Independent (Non-Official) Directors: - 2.4 Miniratna Scheme The presence of Independent (IDs) on the Boards of CPSEs is important for sound Corporate In October 1997, the Government decided to Governance as their constructive role is essential for grant enhanced autonomy and delegation of financial smooth and transparent functioning of the company. The powers to some other profit-making companies subject IDs play an important role in various committees of to certain eligibility conditions and guidelines to make Boards viz. Audit Committee, Nomination & them efficient and competitive. The Miniratna Remuneration Committee, CSR Committee etc. Companies are in two categories, namely, Category- I and Category-II. The proposals for appointment of IDs on the Boards of CPSEs are initiated by the concerned 2.5 The salient features of Maharatna, Navratna & Administrative Ministry which submits a panel of names Miniratna scheme and list of these CPSEs are provided to DPE with the approval of their competent authority. at Annexure-4 and Annexure-5 respectively. DPE places such proposals before the Search 3. Wage Policy and Manpower Committee, which presently consists of Secretary Rationalization (DoPT) as Chairperson, Secretary (DPE), Secretary of the Administrative Ministry/ Department of the The Department of Public Enterprises (DPE) concerned CPSE and 2 non-official Members. The functions as the nodal Department for policy relating to concerned Administrative Ministry/Department appoints pay revision of CPSE executives at Board as well as the ID on the basis of recommendations of Search below Board level and non-unionized supervisors. DPE Committee after completing due formalities in this also issues guidelines for wage settlement negotiations regard and after obtaining the approval of competent in case of workmen in CPSEs. The Department renders authority. The IDs are appointed for tenure of 3 years. advice to the Administrative Ministries/ Departments and Details of the qualifying standards for being eligible to CPSEs in matters relating to revision in pay scales of be appointed as ID is at Annexure-3. executives and also for the wage policy negotiations of 2.2 Maharatna Scheme workmen. The CPSEs are largely following the Industrial Dearness Allowance (IDA) pattern of scales of pay. The main objective of the Maharatna scheme However, in some CPSEs, Central Dearness Allowance which was introduced in 2010 is to empower mega (CDA) pattern of scales of pay is also followed. DPE CPSEs to expand their operations and emerge as global issues quarterly DA orders in respect of IDA employees. giants. The Boards of such CPSEs have been delegated The DA orders for CDA employees of CPSEs are issued enhanced powers in the areas of (i) capital expenditure, for six monthly period. (ii) investment in joint ventures/subsidiaries, (iii) mergers & acquisitions, (iv) human resources management, etc. 3.1 Pay Revision for employees of CPSEs: During the year 2024-25, one CPSE, namely, 3.1.1 Pay Revision for Executives and Non- Hindustan Aeronautics Limited was granted Unionised Supervisors of IDA pattern in Maharatna status. CPSEs: 2.3 Navratna Scheme (i) The third Pay Revision Committee (PRC) was The Government introduced the Navratna constituted under the Chairmanship of Justice scheme, in 1997, to identify Central Public Sector (Rtd.) Shri Satish Chandra to consider and Enterprises (CPSEs) that had comparative advantages recommend pay scales for Board and Below and to support them in their drive to become global giants. Board level executives and non-unionized Under this scheme, the Boards of Navratna CPSEs have supervisors of CPSEs under IDA pattern of pay also been delegated autonomy enhanced powers in the scale. Based on the recommendations of the third areas of (i) capital expenditure, (ii) investment in joint PRC and Government’s decisions thereon, the 288Department of Public Enterprises VI revised pay scale guidelines effective from 4. Categorization of CPSEs 1st January, 2017 were issued vide DPE OMs dated 03.08.2017, 04.08.2017 and 07.09.2017. 4.1 The Public Sector Enterprises are categorized into four Schedules namely ‘A’, ‘B’, ‘C’ & ‘D’. The (ii) The revised pay scales and allowances categorization of CPSEs has implications mainly for recommended by third PRC were based on the organizational structure and salary of Board level basic premise of affordability. These pay scales incumbents of the concerned CPSE. It also plays a role and allowances would be implemented subject in grant of autonomy to the Boards of CPSEs under to the condition that the additional financial impact ‘Ratna’ scheme. in the year of implementing the revised pay- 4.2 The initial categorization of CPSEs in the mid- package for Board and Below Board level sixties was made on the basis of their importance to the Executives and Non-Unionized Supervisors economy and complexities of their problems. Over the should not be more than 20% of the Average years the Department of Public Enterprises has evolved Profit Before Tax (PBT) of the last three financial norms for the purpose of categorization/re-categorization years preceding the year of implementation. All of CPSEs. Categorization is based on both quantitative the expenditure on this account will be met by factors like investment, capital employed, net sales, profit the CPSE implementing the revised pay scales before tax, number of employees and units, capacity & allowances and no budgetary support shall be addition, revenue per employee, sales/capital employed, provided by the government. capacity utilization, value added per employee and qualitative factors such as national importance, 3.1.2 Pay Revision for employees of CDA pattern complexities of problems being faced by the company, in CPSEs: level of technology, prospects for expansion and For the employees of CPSEs following the CDA diversification of activities and competition from other pattern, DPE vide OM dated 17.08.2017 issued guidelines sectors etc. The other factors, wherever available, relate for revision of pay scales and allowances w.e.f. to share price, MoU ratings, Maharatna/Navratna/ 01.01.2016. The benefit of pay revision is allowed to the Miniratna status and ISO certification. In addition, the employees of those CPSEs that are not loss making and factor relating to the critical/Strategic importance of the are in a position to absorb the expenditure on account of CPSE is also taken into account. At present there are pay revision from their own resources without any 77 Schedule ‘A’, 65 Schedule ‘B’, 46 Schedule ‘C’ and budgetary support from the Government. Further, DPE 6 Schedule ‘D’ CPSEs. The Schedule-wise list of CPSEs is given in Annexure-6. vide OMs dated 21.05.2018 and 04.07.2019 conveyed the Government decision on allowances applicable to 4.3 Procedure for Categorization: CDA employees of CPSEs. Proposal for categorization of a CPSE is initiated 3.1.3 Wage Revision for Workmen under IDA by the concerned Administrative Ministry/Department and pattern in CPSEs: submitted to DPE. The latter examines such proposals and issue orders with the approval of Finance Minister. DPE has issued policy guidelines for the 8th Further, to make the process of grant of initial Round of Wage Negotiations with unionized workmen of categorisation to CPSE simple and easy, DPE has issued CPSEs (effective from 01.01.2017) vide its OM dated guidelines on 11.12.2023 as per which all asset holding 24.11.2017. The validity of the wage negotiation as per CPSEs created for managing the non-core assets of the para 2(xi) of DPE OM dated 24.11.2017 would be CPSEs under disinvestment and those CPSEs which are minimum period of five years for those who opted for a yet to be made functional will be categorized as schedule five-year periodicity and for a maximum period of ten ‘C’ as per procedure prescribed in the OM. Later, vide years for those who have opted for a ten-year periodicity OM dated 20.05.2024 and dated 08.08.2024, the process of wage negotiation w.e.f. 01.01.2017. of categorisation was further simplified. DPE OM dated 20.05.2024 simplified the process for upgradation of the 3.2 Guidelines recently issued: existing categorisation of CPSEs and states that all initially 3.2.1. DPE issued ‘Uniformity in facilities available to categorized CPSEs would continue to come to DPE for women employees of CPSEs in line with similar facilities upgradation of their schedule with the approval of their available to women employees of the Central Administrative Ministry/Department. The latter examines Government’ O.M. No. 6 (1)/2014-DPE (GM) dated such proposals and issue orders with the approval of 29.04.2024. Finance Minister. Such proposals would not be referred to PESB and Cabinet Secretariat. DPE OM dated 3.2.2. DPE has issued ‘Consolidated & revised 08.08.2024 simplified the process for initial categorisation Guidelines regarding Vigilance Policy for CPSEs’ O.M. of the existing uncategorised functional CPSEs and states dated 29th July, 2024. that all initially categorized CPSEs would continue to come 289Annual Report 2024-2025 to DPE for upgradation of their schedule with the approval 5.1.3 MoU Framework (for the year 2021-22 of their Administrative Ministry/Department. The latter onwards): Based on the recommendations of the HPC, examines such proposals and issue orders with the the framework for MoU mechanism using an online approval of Finance Minister. Such proposals would not dashboard for the target setting and performance be referred to PESB and Cabinet Secretariat. evaluation of CPSEs has been put in place and made applicable from the year 2021-22. The parameters 5. Monitoring & Evaluation included in the revised MoU mechanism are market oriented, reflecting shareholders’ interest in term of growth 5.1 Memorandum of Understanding: in revenue, EBITDA margin, return on net worth, return A Memorandum of Understanding (MoU) is a on capital employed, asset turnover ratio, and market negotiated agreement signed between the Administrative capitalization. Adequate weightage has also been given Ministry/ Department and the management of the Central to production linked parameters pertaining to CPSE’s core Public Sector Enterprises (CPSEs). Under this, the CPSE operations. All the parameters are quantifiable and undertakes to achieve targets set in the MoU. In the MoU verifiable from the documents available in public domain. evaluation, the performance of CPSE on predetermined Besides, certain government’s priorities/ programmes parameters is compared with the prescribed targets. The such as procurement from MSEs, CSR etc. have also MoU serves as a tool for ensuring accountability of the been included for compliance by CPSEs, the non- enterprise’s management to the government. compliance of which would result in deduction of marks. 5.1.1 Scope: The revised MoU framework also provides for benchmarking based on growth and emerging trends of All CPSEs (holding as well as subsidiaries) are the sector, vision that has been worked by the Ministry required to sign a MoU. The holding CPSEs sign the MoU about the sector, and peer performance. with their Administrative Ministries/ Departments, while the subsidiaries sign it with their respective holding 5.1.4 MoU Score and Rating: The CPSEs will be companies. allotted marks proportionately for achievement of target figure for each parameter. Score on all parameters would 5.1.2 Institutional arrangements for be added to arrive at MoU score. The rating system of Implementation of MoU Policy: CPSEs based on the MoU score is as follows: a) High Powered Committee (HPC): The High- Aggregated Score Rating Powered Committee is the Apex body for the 90 ≤ Score Excellent MoU mechanism for laying policy guidelines. 70 ≤ Score < 90 Very Good HPC is headed by the (i) Cabinet Secretary and 50 ≤ Score < 70 Good comprises: (ii) CEO (NITI Aayog), (iii) Finance 33 ≤ Score < 50 Fair Secretary, (iv) Secretary (Expenditure), (v) Score < 33 Poor Secretary (Statistics and Programme Implementation), (vi) Chairman (Public 6. Corporate Social Responsibility (CSR) Enterprises Selection Board), (vii) Chief Economic Advisor (Economic Affairs) and (viii) 6.1 As per Section-135 of the Companies Act, 2013, Secretary (PE) as the members. all profit-making corporates, including Central Public Sector Enterprises (CPSEs) exceeding threshold limits b) Inter-Ministerial Committee (IMC): The IMC prescribed in the Act, i.e., net worth of Rs. 500 crore; or finalizes the sectoral templates and CPSE-wise turnover of Rs. 1,000 crore; or net profit of Rs. 5 crore MoU parameters. The purpose of sectoral are mandated to spend at least 2% of the average net templates is to select and identify the parameters profits (Profit Before Tax) of the company made during and their weightages relevant to the core the three immediately preceding years. business activities relating to a sector and/or the CPSE. The IMC also sets the requisite levels of 6.2 The CPSEs are required to follow the provisions performance against each of the parameters, so contained in Section-135 of the Companies Act, 2013 decided, as benchmarked targets. The IMC and the Companies (CSR Policy) Rules, 2014 notified comprises: (i) Secretary (PE) as the Chairman thereunder by Ministry of Corporate Affairs and the and representative of (ii) Chief Economic Advisor Schedule-VII of the Act, which lists the activities that can (Economic Affairs), (iii) D/o Expenditure, (iv) M/ be undertaken under CSR. o Statistics and Programme Implementation, (v) NITI Aayog as the members, and (vi) Secretary/ 6.3 Based on the recommendations of CPSEs representative of the Administrative Ministry as Conclave held in April, 2018 and with the approval of special invitee, and any other expert co-opted competent authority, Department of Public Enterprises on need basis. has issued guidelines on 10.12.2018 to all Administrative 290Department of Public Enterprises VI Ministries & CPSEs for adopting a theme based focused national and international benchmarks. The CRR scheme approach every year on CSR expenditure by CPSEs. is designed to facilitate re-skilling and reorientation for These guidelines inter-alia provide that CSR expenditure surplus employees of CPSEs, who were rationalized due for such thematic programmes should be around 60% of to modernization, technology upgrades, or manpower annual CSR expenditure of CPSEs and the aspirational restructuring, and opted for Voluntary Retirement Scheme districts identified by NITI Aayog may be given preference. (VRS) or Voluntary Separation Scheme (VSS). The The common theme prescribed for the FY 2024-25 is scheme has benefited approximately 2 lakh individuals ‘Health & Nutrition’ and ‘PM Internship scheme’. until FY 2023-24 and is currently implemented through National Skill Development Corporation (NSDC) and its 6.4 DPE, with the support of UNICEF and SCOPE, training partners. organized CSR Conclave-2024 on 9th and 10th July, 2024 at Bharat Mandapam, New Delhi. Parallel 7.1.2 In line with the government’s focus on sessions on AMRCD, Culture & Heritage, CPSE- streamlining schemes to enhance implementation and SPARROW and PE Survey were organized during the reduce overhead costs, both training-oriented schemes event. More than 900 participants comprising of DCs/ (CRR for separated employees and RDC for current DMs and senior officers from Aspirational Districts, senior employees) have been merged. The merged scheme, officers from Sectoral Ministries/Departments, CSR Research, Development, Consultancy & Reorientation heads and executives from CPSEs and Implementing (RDCR), ensures that the objectives of both the CRR agencies participated in the CSR Conclave. and RDC schemes continue to be addressed and will be effective from the second half of FY 2024-25. 6.5 DPE and UNICEF jointly organized the 3rd regional workshop on CSR with focus on Aspirational 7.1.3 The aims and objectives of the RDCR Scheme Districts of Jharkhand at Ranchi on 30th September are as under: and 1st October, 2024. The workshop elicited good (a) Thematic Studies: Undertake studies on general/ response from all stakeholders with more than 120 sectoral issues affecting public sector enterprises participants from Aspirational Districts (ADs) of in a fast-changing economic environment. Jharkhand, CSR Nodal officers of CPSEs, NITI Aayog, officers from Government of Jharkhand, Implementing (b) Conferences and Seminars: Conduct national agencies, etc. and international conferences, seminars, webinars, and study tours for collaborative 6.6 DPE and UNICEF jointly organized the 4th learning and best practice sharing. regional workshop on CSR with focus on Aspirational (c) Capacity Building: Offer workshops, training, Districts of Chhattisgarh at Raipur on 24th and 25th and orientation programs for the Board of October, 2024. The workshop elicited good response Directors (BoDs) of CPSEs. from all stakeholders with 75 participants from Aspirational Districts (ADs) of Chhattisgarh, CSR Nodal officers of (d) Performance Improvement: Facilitate CPSEs, officers from Government of Chhattisgarh, performance evaluation and management Implementing agencies, DPE, UNICEF, etc. improvements for CPSEs through research and training institutions. 7. Scheme for Research, Development, Consultancies and Re-orientation for (e) Collaboration: Support national/international Central Public Sector Enterprises organizations working on capacity building and (RDCR) performance improvement of Public Sector Enterprises. 7.1.1 DPE has been implementing two central sector schemes: Research, Development, and Consultancy (f) Incentives: Reward CPSEs for best practices (RDC) since FY 2007-08, and Counselling, Retraining, in functional areas through grants and incentives. and Redeployment (CRR) since FY 2001-02. Under the (g) Reorientation Training: Provide skill RDC scheme, DPE organizes conferences, seminars, enhancement and reorientation training for VRS training programs, and workshops for employees of optees or their dependents to facilitate self or Central Public Sector Enterprises (CPSEs) and State wage employment. Level Public Enterprises (SLPEs) on topics like Corporate Governance, Regulatory Issues, Statutory Compliance, (h) Other Issues: Address any other pertinent issues and Performance Improvement, in collaboration with related to the Department of Public Enterprises leading academic institutions. It also conducts Orientation (DPE) and CPSEs/SLPEs. and Capacity Building Programs for the Board of Directors (BoDs) of CPSEs, and provides for consultancy and 7.1.4 The major interventions proposed to be research studies on functional issues to help CPSEs meet undertaken under RDCR scheme include: 291Annual Report 2024-2025 (a) Thematic Consultancies and Studies: to Personal Excellence, Developing HR Competencies for address key issues like corporate governance, Excellence in PSUs, New Labour Codes for employers risk management, HR, CSR, benchmarking and professionals of CPSEs/SLPEs, Contract studies to improve the competitiveness of Management/Safeguards in tendering, Project CPSEs. Studies on performance management, Management, and Effective functioning of Boards of compensation, and appraisal systems and other CPSEs. issue related to CPSEs can also be conducted. 7.2.3 Additionally, 3 orientation programmes for Board (b) Conferences, Seminars, and Study Tours: of Directors of CPSEs (1 for Government and 2 for National and international events will be Functional Directors of CPSEs) were organized during organized to encourage knowledge sharing and the year 2024-25 as per following details: best practices. Experts will be engaged for (i) DPE, with the support of NEEPCO Limited collaborative learning through workshops, organized residential orientation programme industry visits, and seminars domestic and for capacity building of Government Directors international. of CPSEs on 17th and 18th September, 2024 at (c) Skill Development and Training: Continuous Shillong. 15 Government Directors nominated skill development programs will enhance on the Boards of various CPSEs participated in employee productivity across CPSEs and SLPEs. the programme in which sessions relating to Role Training will be organized in collaboration with of Government Directors, Improving premier institutes like IITs and IIMs. Programs will effectiveness of Audit function in CPSEs, be extended to DPE officials as well. Transformative Board Leadership in CPSEs were taken by eminent Faculty. Presentation on DPE’s (d) Induction and Capacity Building for Board of online portals (AMRCD, CSR, MoU, SPARROW- Directors: Short-term orientation programs for CPSE, Survey) was also made during the Board of Directors and Key Managerial Personnel orientation programme. of CPSEs to cover topics like risk management, financial management, and leadership (ii) DPE, with the support of Cochin Shipyard development, succession planning, compliance Limited organized residential orientation etc to enhance board deliberations. programme for capacity building of Functional Directors of CPSEs on 2nd and 3rd (e) Support to Multilateral Bodies: DPE will September, 2024 at Kochi. 29 Functional continue to support organizations like the Directors of various CPSEs participated in the International Centre for Promotion of Enterprises programme in which sessions relating to Role of (ICPE) and cover membership contributions. Directors for effective Board, Improving effectiveness of Audit function in CPSEs, (f) Reorientation for VRS/VSS Optees: Financial Transformative Board Leadership, Collaborative support for training and associated costs will be leadership in Boards of CPSEs, Vigilance provided which will form part of the VRS package. Administration in CPSEs, Arbitration & Mediation (g) Incentives/Awards to CPSEs and SLPEs: in CPSEs were taken by eminent Faculty. CPSEs and SLPEs will be encouraged to (iii) DPE, with the support of Power Grid innovate and adopt best practices critical for Corporation of India Limited, organized future growth. Awards and incentives will be residential orientation programme for granted to those excelling in key focus areas, capacity building of Functional Directors of with the DPE determining the criteria and seeking CPSEs on 13th and 14th June, 2024 at Leh. 27 expert assistance if necessary. Functional Directors from various CPSEs (h) Payment of Outsourced Manpower Support and participated in the programme in which sessions Software Development: Due to the wide scope of relating to Improving effectiveness of Audit the RDCR scheme and the limited in-house function in CPSEs, Transformative Board manpower at DPE, outsourced personnel will be Leadership Succession Planning in CPSEs hired and payment would be made from scheme. Challenges in Public Procurement, Arbitration & Mediation in CPSEs were taken by eminent 7.2.2 DPE has organised 5 training programmes Faculty. Presentation on DPE’s online portals during the year 2024-25 under the RDC Scheme in (AMRCD, CSR, MoU, SPARROW-CPSE, residential/non-residential mode through 4 institutes Survey) was also made during the orientation namely Indian Institute of Company Secretaries, National programme. Productivity Council, Arun Jaitley National Institute of Financial Management and Art of Living. The topics of 7.2.4 DPE organized 1(one) residential training these programmes were Building Competencies for program for Company Secretaries of CPSEs on 292Department of Public Enterprises VI 26th & 27th September, 2024 at Mysuru with the 9.3 VRS in marginally profit or loss Making / sick / support of the Institute of Company Secretaries of unviable CPSEs Marginally profit /loss making CPSEs India. 33 Company Secretaries of various CPSEs as well as sick and unviable units may adopt either of the attended the program wherein issues relating to effective following models: functioning of Boards of CPSEs and DPE online portals 9.3 (i) Gujarat Model, under which the compensation were discussed. is computed by allowing 35 days salary for every 7.2.5 Statement of Scheme wise Expenditure for the completed year of service and 25 days for each year of year 2024-25 is enclosed at Annexure-7 the balance service left until superannuation subject to the condition that compensation shall not exceed the sum 8. National Land Monetization of salary for the balance period left for superannuation. Corporation 9.3 (ii) Department of Heavy Industry (DHI) model, 8.1 National Land Monetization Corporation: under which ex-gratia payment made is equivalent to 45 In pursuance of the Budget announcement, 2021 days emoluments (Pay + DA) for each completed year of and based on the approval of the Cabinet on 09.03.2022 service or the total emoluments for the balance period of “National Land Monetization Corporation” (NLMC), as a service, whichever is less. The employees who have 100% GoI owned company, has been incorporated on completed not less than 30 years of service will be eligible 03.06.2022 under the administrative control of for a maximum of 60 (sixty) months’ salary/wage as Department of Public Enterprises, Ministry of Finance to compensation and this will be subject to the amount not carry out the monetization of non-core assets of CPSEs exceeding the salary/wage for the balance period of as well as other Government agencies. So far 16 assets service left. with an approximate value of Rs.16 Crore have been 10. Executive Development Programmes transferred to NLMC. 8.2 Further, NLMC is also providing Consultancy 10.1 The Central Public Sector Enterprises (CPSEs) Services to Bharat Sanchar Nigam Ltd. (BSNL), design their own human resource development Mahanagar Telephone Nigam Ltd. (MTNL), ITI Ltd. and programmes to upgrade skills and knowledge of Middle Rashtriya Ispat Nigam Ltd. (RINL) for monetization of their and Senior level Executives by giving them training in assets having value more than Rs.100 Crore. various fields of management development through their own Management Institutes or outsourcing the services 8.3 Achievement: In respect of Monetization of of premier management training institutions in India. properties of Rashtriya Ispat Nigam Ltd. (RINL) at Visakhapatnam, Andhra Pradesh, The Phase-1 E-auction 10.2 Secretary, DPE is an ex-officio member of the was conducted on 14.03.2024 at 11:00 hrs. and the same Executive Board and Governing Council of the Standing yielded a cumulative transaction value amounting to Rs. Conference of Public Enterprises (SCOPE), New Delhi. 242.88 crores, reflecting 15.9% premium over the reserve price set at Rs. 209.5 crores. A total of 72 Plots/Blocks 10.3 Secretary, DPE is member on the Board of (measuring 29,267.79 Sq. yards) were bidded out of the Governors of the Institute of Public Enterprise, total 130 Plots/Blocks (measuring 67,277.04 Sq. yards) Hyderabad. put up for E-auction. 11. Reservation for Scheduled Castes 9. Voluntary Retirement Scheme (VRS) (SCs), Scheduled Tribes (STs), Other 9.1 As a result of the restructuring in some Central Backward Classes (OBCs) and Others Public Sector Enterprises (CPSEs), Government in the CPSEs announced the Voluntary Retirement Scheme (VRS) in October, 1988. A comprehensive scheme was later 11.1 The Personnel and Recruitment Policies in respect of appointments against below Board level posts notified by the Department of Public Enterprises (DPE) are formulated by the management of respective CPSEs. in May, 2000. However, on matters of general importance, policy 9.2 VRS in CPSEs that can support the scheme on guidelines are issued by the Government of India to the their own Enterprises, which are financially sound and enterprises so as to enable them to frame their individual can sustain VRS on their own, can frame their own corporate policies. Furthermore, formal Presidential schemes of VRS and make it attractive enough for Directives are issued to CPSEs by the concerned employees to opt for it. They may offer as compensation administrative Ministries to ensure reservation in regard upto 60 days salary (only Basic Pay +DA) for every to employment for Scheduled Castes, Scheduled Tribes completed year of service. Such compensation will, and Other Backward Classes (OBCs), on similar lines however, not exceed the salary for the balance period of as applicable in the Central Government Ministries/ the service left. Departments. DPE through its OM dated 25.02.2015 has 293Annual Report 2024-2025 stipulated that those instructions as issued by 11.6 DPE has also extended instructions vis-à-vis the Government in respect of reservations to SC/ ST/ OBC/ scheme for reservation for Ex-servicemen in CPSEs Disability & Ex-servicemen are to be taken as mutatis through the administrative Ministries/ Departments. mutandis extended to all the CPSEs concerned unless Instructions for streamlining the procedure for recruitment specified otherwise by DPE. of Ex-servicemen have also been issued with a view to augment their in-take in CPSEs. Such CPSEs, which are 11.2 A comprehensive Presidential Directive in a position to offer agencies/dealerships, have been incorporating all important instructions on reservation for advised to reserve quota of such agencies/dealership for SCs and STs was issued by DPE to all the administrative allotment to Ex-servicemen. Ministries/Departments concerned on 25th April, 1991 for formal issuance of the same to CPSEs. Necessary 11.7 The instructions issued by DoPT vide its OM dated changes and modifications are also circulated to CPSEs 19.01.2019 & 31.01.2019 and DO letter dated 21.01.2019 through their administrative Ministries/ Departments for in respect of 10% reservation to Economically Weaker information and compliance. Sections (EWSs) are also mutatis mutandis extended to all the CPSEs in terms of DPE OM dated 25.01.2019 11.3 Subsequently, based on the recommendation of and 01.02.2019. the Second Backward Classes Commission (Mandal Commission) and in accordance with the Hon’ble 11.8 The need to ensure timely filling up of reserved Supreme Court Judgment in the Indira Sawhney case, posts and the backlog has been stressed through various instructions were issued for providing reservation of 27% instructions issued from time to time. All administrative of vacancies in favour of Other Backward Classes Ministries/Departments have been requested to advise (OBCs). Reservation for OBCs was made effective w.e.f. the CPSEs under their administrative control to take 8.9.1993. The Department of Personnel & Training effective steps to fill up the unfilled reserved posts in Direct (DoPT) which formulates the policy in respect of Recruitment as well as in Promotion in accordance with reservation in services has been issuing instructions from the existing instructions. Further, the DoPT has issued instructions from time to time to launch a Special time to time on various aspects of reservation in respect Recruitment Drive (s) to fill up backlog of reserved of OBCs. Department of Public Enterprises (DPE) has vacancies for SCs, STs & OBCs in CPSEs. DPE has been extending these instructions to CPSEs through their also extended these instructions to all administrative administrative Ministries for compliance. A Ministries/Departments dealing with CPSEs to fill up these comprehensive Presidential Directive incorporating these vacancies in a time bound manner. instructions was forwarded by the Department of Public Enterprises to all administrative Ministries vide DPE’s OM 11.9 The present quota for providing reservation for dated 27th July, 1995 for formal issuance to the CPSEs candidates belonging to Scheduled Castes, Scheduled under their control. Tribes and OBCs as well as other categories of persons entitled to reservation of vacancies is shown below: 11.4 Further in terms of DPE OM dated 25-10-2017, all executives i.e. Board & below board level will be Quota for considered as creamy layer subject to the proviso that Category Reservation those executives whose annual income as per criterion Scheduled Castes 15% given in DoPT OM dated 08-09-1993 is less than Rs. 8 Scheduled Tribes 7.50% lakhs (as amended vide DoPT OM dated 13-09-2017) will not fall under creamy layer criteria. It is for the Other Backward Classes 27% concerned CPSE to issue the necessary orders for the Persons with Disability 4% posts covered under creamy layer criteria on the above- Economically Weaker Sections 10% mentioned principle. (EWSs) 11.5 DPE has issued Presidential Directive on As per policy of reservation for Ex-servicemen & 11.3.1997 to all the administrative Ministries /Departments Dependents of those killed in action, 14.5% posts in concerned with the CPSEs in follow-up of DoPT respect of skilled workers and 24.5% post in respect of instructions for employment of physically challenged un-skilled posts are reserved for Ex-servicemen in persons in CPSEs. With the enactment of the Persons CPSEs. with Disabilities (Equal Opportunities, Protection of Rights 11.10 Updated Consolidated Instructions of and Full Participation) Act, 1995, the reservation to Department of Personnel & Training regarding reservation physically challenged persons have been extended to to SCs, STs, OBCs, PwDs and EWS in posts and services identified Group ‘A’ and ‘B’ posts to be filled through Direct were circulated to CPSEs for information and compliance. Recruitment. As per the ‘The Rights of Persons with Disabilities Act, 2016, not less than 4% posts shall be 11.11 Reservation Cell in DPE has been constituted, reserved for persons with disabilities. which looks after the implementation of reservation 294Department of Public Enterprises VI policies in DPE and maintain Reservation Register/ increase the minimum annual procurement from MSEs Roster in respect of DPE cadre. Complaint Register in from 20% to 25% and to mandate procuring minimum respect of the reserved category employees of DPE is 3% out of the 25% from MSEs owned by women, in also being maintained by Reservation Cell, DPE. addition to 4% to be procured from MSEs owned by SC/ ST entrepreneurs. 12. Official Language Policy 13.2 Government e-Marketplace (GeM) which is 12.1 DPE’s Hindi Section is primarily responsible for hosted by Directorate General of Supplies & Disposals implementation of the various provisions of the Official (DGS&D), is a paperless, cashless, & system-driven e- Language Act 1963 and the Rules framed there under. market place that enables procurement of common-use Hindi Section is also responsible for translation of goods & services with minimal human interface. It is a documents required to be issued under Section 3(3) of dynamic, self-sustaining, & user-friendly portal for the Official Language Act, 1963. As more than 80% of procurement by offices of various Government Ministries the staff of this Department knows Hindi, the Department & Departments, CPSEs, & autonomous bodies of the has been notified under rule 10(4) of the Official Language Central Government. DGS&D has developed GeM with Rules, 1976. technical support of National e-Governance Division, Ministry of Electronics & Information Technology. 12.2 Resolutions, notifications, notices, circulars, papers etc. to be laid on the Table of the both houses of 13.3 DPE has been engaging with the CPSEs to Parliament have been issued bilingually during the year ensure that the CPSEs comply with the provisions relating 2023-24. Efforts were also made to promote original to procurement from MSEs and enhance their correspondence in Hindi. The Official Language procurement through GeM portal. In line with support Implementation Committee of DPE continues to function measures announced by the Government for MSEs, under the Chairmanship of the Joint Secretary. procurement by CPSEs from MSEs during the year 2021- 22 was around 32% as against the mandated 25% which 12.3 To create awareness and expanding the use of increased to 35% during the year 2022-23. During the Hindi as Official Language, Hindi Pakhwada was financial year 2023-24, procurement by the CPSEs organized by the Department from 14th September, 2024 from MSEs is around 36.34%. to 29th September, 2024. During the Hindi Pakhwada five competitions namely, Hindi Kavita Path, Bhasha Gyan, 13.4 Continuous engagement by DPE with Hindi Nibandh, Hindi Shrutlekhan and Vaad-Vivad Path stakeholders has ensured manifold increase in procurement by CPSEs from GeM from Rs. 7,035 crore were organized for the officers and staff including officials in 2020-21 to Rs. 45,970 crore in 2021-22 and further to on contract basis. Certificates and Rewards have been Rs. 1,05,780 crore during the year 2022-23. During felicitated to successful employees on 17.10.2024. the financial year 2023-24, procurement by the CPSEs 12.4 Annual Public Enterprises Survey on the working through GeM has further increased to Rs. 2,62,542 of Central Public Sector Enterprises is presented in the crore. Parliament every year by this Department. This is very 13.5 Trade Receivables Discounting System (TReDS) voluminous and comprehensive document brought out - TReDS is an electronic platform for facilitating the by the Department simultaneously in English and Hindi. financing / discounting of trade receivables of Micro, Small 13. Procurement by CPSEs from MSEs and Medium Enterprises (MSMEs) through multiple financiers. These receivables can be due from corporates and through GeM and other buyers, including Government Departments 13.1 The Government of India notified the Public and Public Sector Undertakings. DPE has been Procurement Policy for Micro & Small Enterprises (MSEs) continuously engaging with the CPSEs and their in 2012 to be administered by Ministry of Micro, Small & administrative Ministries/Departments to register CPSEs Medium Enterprises. The objective of this policy is to on TReDS portal and to increase usage of TReDS portal. promote and develop MSEs by supporting them in 177 CPSEs are now registered on the TReDS portal marketing of products & services. As per provisions of which account for 98% of total procurement by CPSEs. this policy, w.e.f., 2012-13, every CPSE should achieve In order to facilitate more effective use of the TReDS an overall procurement goal of minimum 20% of total portal by the CPSEs and ensure timely payments to MSE annual purchase from MSEs in a period of three years. vendors as provided in the MSMED, Act, 2006, a Of the 20% target of annual procurement from MSEs, a parameter with a weight of 5 marks on ‘timely acceptance/ sub-target of 4% must be earmarked for procurement rejection of goods and services by the CPSEs through from MSEs owned by SC/ST entrepreneurs. At the end TReDS portal within stipulated time (15 days)’ has been of three years (i.e., from FY 2015-16), the overall introduced in the MoU framework for the year 2022-23. procurement goal of minimum 20% would be mandatory. DPE has directed all CPSEs to include a clause/provision This policy was amended on November 9, 2018 to with reference to payment terms through TReDS platform 295Annual Report 2024-2025 in their standard tender document/notice inviting tenders Comprehensive Economic Cooperation Agreement for procurement. Financial Advisers of all administrative negotiations held during the year 2024-25. Ministries/Departments have also been requested to 15. Cyber Security Compliance Report monitor usage of TReDS portal by the CPSEs under their administrative control. The status of Cyber Security Compliance in 14. Significant Initiatives Department of Public Enterprises is as under: - 15.1 Cyber Security Process: - The Cyber Crisis 14.1 Mission Recruitment- The Government has Management Plan (CCMP) in the Department is in decided to fill up vacancies in various Ministries/ process. Business unit-wise network segmentation is in Departments and CPSEs in a Mission Mode, i.e. ‘Mission compliance 100% and IT Asset Inventory is being Recruitment’. This exercise is being coordinated by the maintained. Department of Personnel & Training (DoPT) which has setup a dedicated portal for this purpose. DPE has been 15.2 Network Security Aspects: - There are 15 regularly following up with the CPSEs for uploading of (fifteen) managed Switches (L2 & L3) in the department. requisite information on the designated portal of DoPT. All the switches have latest Firmware/IOS. MAC Binding As per information available, 56,979 candidates of is 100% compliant. CPSEs have been covered in 14 tranches of Rozgar 15.3 End-Point Security Aspects: - There are 137 Mela held till December, 2024. (one hundred thirty-seven) Endpoints in the department. All endpoints are OS supported with updated patches; 14.2 Mission Karamyogi- All employees of DPE have approved UEM and approved EDR. been onboarded on Karamyogi portal. Annual Capacity Building Plan of DPE was also approved during the year 15.4 Application Security Aspects: - There are 6 2023-24 and has been circulated to all employees of DPE (six) web applications with valid SSL Certificates in the for implementation. 81 employees of CPSEs (including department. 3 (Three) web application have been audited YPs/YAs) have completed 2,152 courses on I-Got but their audit certificates have expired. All Web portal till 31st December, 2024. applications are GIGW/STQC certified and valid up to 4th May 2025. 14.3 Participation in Free Trade Negotiations (FTAs)- India is pursuing FTA negotiations with several 15.5 Cyber Security Incidents: - No incident of Cyber countries and representatives of DPE participated in Security or email phishing have been reported in the ongoing India-UK FTA, India-EU FTA and India-Australia department. 296Department of Public Enterprises VI Annexure-1 Department of Public Enterprises Organogram Hon’ble Finance Minister Hon’ble Minister of State (Finance) Finance Secretary & Secretary, PE Joint Joint Principal Advisor Economic DDG (Survey) Addl. Secretary Secretary Secretary (Cost) Advisor & FA Director Deputy Director Dy. Secretary Senior Director Deputy Dy.Secretary Jt..Director CC A (MoU) Director (Policy (Administration, Technical (Disinvestment) Secretary (Wage) (Survey) (NLMC Division-I) Parliament, Director (IT (Policy Division-II) Cell) Coordination, Cell) AMRCD) 297Annual Report 2024-2025 Annexure-2 Performance of CPSEs during Financial Year 2023-24 2022-23 2023-24 Sl. % Item/Indicator (₹ lakh (₹ lakh No. Change Crore) crore) 1. Overall Net Profit [of Operating CPSEs] 2.18 3.22 47.42 Net Profit of Profit making CPSEs [of Operating 2.47 3.43 38.66 2. CPSEs] Net Loss of loss incurring CPSEs [of Operating 0.29 0.21 -27.39 3. CPSEs] 4. Total Gross Revenue [of Operating CPSEs] 37.86 36.08 -4.69 5. Financial Investment [of all CPSEs] 25.81 27.71 7.35 6. Capital employed [of all CPSEs] 38.52 42.74 10.95 7. Net Worth [of all CPSEs] 17.41 19.95 14.57 8. Dividend declared [of all CPSEs] 1.05 1.23 16.31 9. Contribution to Central Exchequer [of all CPSEs] 4.58 4.85 5.96 298Department of Public Enterprises VI Annexure-3 Eligibility Criteria for appointment as Non-Official (Independent) Directors on the Boards of CPSEs Criteria of Experience: (v) Former CEOs of private companies if the company is (a) listed on the Stock Exchanges or (i) Retired Government officials with a minimum of (b) unlisted but profit making and having an 10 years’ experience at Joint Secretary Level or annual turnover of at least Rs.250 crore. above. (vi) Persons of eminence with proven track record (ii) Persons who have retired as CMD/CEOs of from Industry, Business or Agriculture or CPSEs and Functional Directors of the Schedule Management. ‘A’ CPSEs. The ex-Chief Executives and ex- Functional Directors of the CPSEs will not be (vii) Serving CEOs and Directors of private considered for appointment as non-official companies listed on the Stock Exchanges may Director on the Board of the CPSE from which also be considered for appointment as part-time they retire. Serving Chief Executives/Directors non-official Directors on the Boards of CPSEs in of CPSEs will not be eligible to be considered for exceptional circumstances. appointment as non-official Directors on the Boards of any CPSEs. Criteria of Educational Qualification (iii) Academicians/Directors of Institutes/Heads of Minimum graduate degree from a recognized university. Department and Professors having more than Criteria of Age 10 years teaching or research experience in the relevant domain e.g. management, finance, The age band should be between 45-65 years (minimum/ marketing, technology, human resources, or law. maximum limit) (iv) Professionals of repute having more than 15 This could, however, be relaxed for eminent years of relevant domain experience in fields professionals, for reasons to be recorded, being limited relevant to the company’s area of operation. to 70 years. 299Annual Report 2024-2025 Annexure-4 Salient Features of Ratna Scheme (Maharatna/Navratna/Miniratna 1. Maharatna Scheme (ii) The concerned administrative Ministry/ Department will obtain the concurrence of NITI 1.1 Eligibility Criteria: The CPSEs meeting the Aayog for such proposals on a case to case basis following eligibility criteria are considered for Maharatna and firm up its view on the proposals as the status: - stakeholder for the Board’s deliberations through a) Having Navratna status its representative on the Board for appropriate decision. b) Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI (iii) The Government Directors will ensure that the regulations views of the Government, being the majority shareholder, on such proposals are properly c) An average annual turnover of more than presented before the Board while a decision on Rs.25,000 crore during the last 3 years such proposal is being taken. The decision for d) An average annual net worth of more than investment to set up financial joint ventures and Rs.15,000 crore during the last 3 years subsidiary entities should only be taken by the Board when Government Directors are present e) An average annual net profit after tax of more in the board meeting. than Rs.5,000 crore during the last 3 years 2. Navratna Scheme: f) Should have significant global presence/ international operations. 2.1 Eligibility criteria: The CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or 1.2 Procedure for grant/divestment of Maharatna ‘very good’ MOU rating in three of the last five years and status: - The procedure for grant of Maharatna status as have a ‘Composite Score’ of performance to be 60 or well as their review is similar to that in vogue for the grant above in six identified performance parameters are of Navratna status. eligible to be considered for grant of Navratna status. 1.3 Powers delegated to Maharatna CPSEs: - The composite score is calculated on the basis of performance of the concerned CPSEs during the last 1.3.1 The Boards of Maharatna CPSEs in addition to three years. For calculation of composite score, 6 exercising all powers to Navratna CPSEs, exercise performance indicators have been identified based on enhanced powers in the area of investment in joint their general applicability to the CPSEs. The performance ventures/subsidiaries and creation of below Board level indicators have been chosen so as to capture the posts. The Boards of Maharatna CPSEs have powers to performance of CPSEs irrespective of their belonging to (a) make equity investment to establish financial joint manufacturing sector or services sector. The 6 identified ventures and wholly owned subsidiaries in India or abroad performance indicators are: - and (b) undertake mergers & acquisitions, in India or abroad, subject to a ceiling of 15% of the net worth of the (Maximum concerned CPSE in one project, limited to an absolute S.N. Performance Indicator Weight) ceiling of Rs.5,000 crore (Rs. 1,000 crore for Navratna 1 Net Profit to Net worth 25 CPSEs). The overall ceiling on such equity investments and mergers and acquisitions in all projects put together Manpower Cost to total will not exceed 30% of the net worth of the concerned 2 Cost of Production or 15 CPSE. In addition, the Boards of Maharatna CPSEs have Cost of Services powers to create below Board level posts upto E-9 level. PBDIT to Capital 3 15 employed 1.3.2 The delegated powers to establish financial joint 4 PBIT to Turnover 15 ventures and subsidiary entities would be exercised by the Board of Maharatna CPSEs in the following manner: 5 Earnings per Share 10 Inter Sectoral (i) The proposal for establishing financial joint 6 20 Performance ventures and subsidiary entities will be presented Total 100 to the Board of the concerned CPSE. 300Department of Public Enterprises VI 2.2 Procedure for grant/divestment of Navratna (iii) 30% of the net worth of the CPSE in all joint status: The proposals for grant/divestment are initially ventures/ subsidiaries put together. considered by the Inter-Ministerial Committee and then (b) The delegated powers to establish financial joint by the Apex Committee. The recommendations of Apex ventures and subsidiary entities would be Committee for grant/divestment of Navratna status are exercised by the Board of Navratna CPSEs in to be placed before Minister (In charge of DPE) for a the following manner: decision. (i) The proposal for establishing financial joint 2.3 The Powers Delegated to Navratna CPSEs: ventures and subsidiary entities will be 2.3.1 Capital Expenditure: - The Navratna CPSEs presented to the Board of the concerned have the powers to incur capital expenditure on purchase CPSE. of new items or for replacement, without any monetary (ii) The concerned administrative Ministry/ ceiling. Department will obtain the concurrence of 2.3.2 Technology Joint Ventures and Strategic NITI Aayog for such proposals on a case- Alliances: - The Navratna CPSEs have the powers to to-case basis and firm up its view on the enter into technology joint ventures or strategic alliances proposals as the stakeholder for the Board’s and obtain by purchase or other arrangements, technology deliberations through its representative on and know-how. the Board for appropriate decision. 2.3.3 Organization Restructuring: - The Navratna (iii) The Government Directors will ensure that CPSEs have the powers to effect organizational the views of the Government, being the restructuring including establishment of profit centres, majority shareholder, on such proposals are opening of offices in India and abroad, creating new properly presented before the Board while activity centres, etc. a decision on such proposal is being taken. The decision for investment to set up 2.3.4 Human Resources Management: - The financial joint ventures and subsidiary Navratna CPSEs have been empowered to create posts entities should only be taken by the Board up to E-6 level and wind up all posts up to non-Board when Government Directors are present in level Directors and make all appointments up to this level. the board meeting. The Boards of these CPSEs have further been empowered to effect internal transfers and re-designation 2.3.7 Mergers and acquisitions: - The Navratna of posts. The Board of Directors of Navratna CPSEs have CPSEs have been delegated powers for mergers and the power to further delegate the powers relating to acquisitions subject to the conditions that (i) it should be Human Resource Management (appointments, transfer, as per the growth plan and in the core area of functioning posting, etc.) of below Board level executives to sub- of the CPSE, (ii) conditions/limits would be as in the case committees of the Board or to executives of the CPSE, of establishing joint ventures/subsidiaries, and (iii) the as may be decided by the Board of the CPSE. Cabinet Committee on Economic Affairs would be kept informed in case of investments abroad. Further, the 2.3.5 Resource Mobilization: - These CPSEs have powers relating to Mergers and Acquisitions are to be been empowered to raise debt from the domestic capital exercised in such a manner that it should not lead to any markets and for borrowings from international market, change in the public sector character of the concerned subject to condition that approval of RBI/Department of CPSEs. Economic Affairs, as may be required, should be obtained through the administrative Ministry. 2.3.8 Creation/Disinvestment in subsidiaries:- The Navratna CPSEs have powers to transfer assets, float 2.3.6 Joint ventures and Subsidiaries: - fresh equity and divest shareholding in subsidiaries (a) The Navratna CPSEs have been delegated subject to the condition that the delegation will be in powers to establish financial joint ventures and respect of subsidiaries set up by the holding company wholly owned subsidiaries in India or abroad with under the powers delegated to the Navratna CPSEs and the stipulation that the equity investment of the further to the proviso that the public sector character of CPSE should be limited to the following: - the concerned CPSE (including subsidiary) would not be changed without prior approval of the Government and (i) Rs. 1000 crore in any one project, such Navratna CPSEs will be required to seek (ii) 15% of the net worth of the CPSE in one Government approval before exiting from their project, subsidiaries. 301Annual Report 2024-2025 2.3.9 Tours abroad of functional Directors: - The without Government approval upto Rs. 250 crore Chief Executive of Navratna CPSEs have been delegated or equal to 50% of the Net worth, whichever is powers to approve business tours abroad of functional less. directors up to 5 days’ duration (other than study tours, 3.3.2 Joint ventures and subsidiaries: seminars, etc.) in emergency under intimation to the Secretary of the administrative Ministry. a) Category I CPSEs: To establish joint ventures and subsidiaries in India with the stipulation that 2.3.10 Exercise of delegated Navratna powers is the equity investment of the CPSE in any one contingent on certain conditionalities. project should be limited to 15% of the networth 3. Miniratna Scheme: of the CPSE or Rs. 500 crore, whichever is less. The overall ceiling on such investment in all 3.1 Eligibility criteria projects put together is 30% of the networth of (i) Category-I CPSEs should have made profit in the CPSE. the last three years continuously, the pre-tax profit b) Category II CPSEs: To establish joint ventures should have been Rs.30 crores or more in at least and subsidiaries in India with the stipulation that one of the three years and should have a positive the equity investment of the CPSE in any one net worth. project should be 15% of the networth of the (ii) Category-II CPSEs should have made profit for CPSE or Rs. 250 crore, whichever is less. The overall ceiling on such investment in all projects the last three years continuously and should have put together is 30% of the networth of the CPSE. a positive net worth. c) The delegated powers to establish financial joint These CPSEs shall be eligible for the enhanced ventures and subsidiary entities would be delegated powers provided they have not defaulted in exercised by the Board of Miniratna CPSEs in the repayment of loans/interest payment on any loans the following manner: due to the Government. (i) The proposal for establishing financial joint (iii) These public sector enterprises shall not depend ventures and subsidiary entities will be upon budgetary support or Government presented to the Board of the concerned guarantees. CPSE. (iv) The Boards of these CPSEs should be (ii) The concerned administrative Ministry/ restructured by inducting at least three non-official Department will obtain the concurrence of Directors as the first step before the exercise of NITI Aayog for such proposals on a case- enhanced delegation of authority. to-case basis and firm up its view on the (v) The administrative Ministry concerned shall proposals as the stakeholder for the Board’s decide whether a Public Sector Enterprise fulfilled deliberations through its representative on the requirements of a Category-I/Category-II the Board for appropriate decision. company before the exercise of enhanced (iii) The Government Directors will ensure that powers. the views of the Government, being the 3.2 Procedure for grant of Miniratna status: Grant majority shareholder, on such proposals are of Miniratna status to a particular CPSE is done by properly presented before the Board while concerned Administrative Ministry/Department. a decision on such proposal is being taken. The decision for investment to set up 3.3 Powers Delegated financial joint ventures and subsidiary entities should only be taken by the Board 3.3.1 Capital Expenditure when Government Directors are present in a) For CPSEs in category I: The power to incur the Board meeting. capital expenditure on new projects, 3.3.3 Mergers and acquisitions: - The Board of modernization, purchase of equipment, etc., Directors of these CPSEs have the powers for mergers without Government approval upto Rs. 500 crore and acquisitions, subject to the conditions that (a) it or equal to net worth, whichever is less. should be as per the growth plan and in the core area of b) For CPSEs in category II: The power to incur functioning of the CPSE, (b) conditions/limits would be capital expenditure on new projects, as in the case of establishing joint ventures/subsidiaries, modernization, purchase of equipment, etc., and (c) the Cabinet Committee on Economic Affairs 302Department of Public Enterprises VI would be kept informed in case of investments abroad. 3.3.6 Technology Joint Ventures and Strategic Further, the powers relating to Mergers and Acquisitions Alliances: - To enter into technology joint ventures, are to be exercised in such a manner that it should not strategic alliances and to obtain technology and know- lead to any change in the public sector character of the how by purchase or other arrangements, subject to concerned CPSEs. Government guidelines as may be issued from time to time. 3.3.4 Scheme for HRD: - To structure and implement schemes relating to personnel and human resource 3.3.7 Creation/Disinvestment in subsidiaries :- To management, training, voluntary or compulsory retirement transfer assets, float fresh equity and divest shareholding schemes, etc. The Board of Directors of these CPSEs in subsidiaries subject to the condition that the delegation have the power to further delegate the powers relating to will be in respect of subsidiaries set up by the holding Human Resource Management (appointments, transfer, company under the powers delegated to the Miniratna posting, etc.) of below Board level executives to sub- CPSEs and further to the proviso that the public sector committees of the Board or to executives of the CPSE, character of the concerned CPSE (including subsidiary) as may be decided by the Board of the CPSE. would not be changed without prior approval of the 3.3.5 Tour abroad of functional Directors: - The Government and such Miniratna CPSEs will be required Chief Executive of these CPSEs have the power to to seek Government approval before exiting from their approve business tours abroad of functional directors up subsidiaries. to 5 days’ duration (other than study tours, seminars, etc.) in emergency, under intimation to the Secretary of the 3.3.8 Exercise of delegated Miniratna powers is administrative Ministry. contingent on certain conditionalities. 303Annual Report 2024-2025 Annexure-5 List of Maharatna, Navratna & Miniratna CPSEs Maharatna CPSEs 17. Central Warehousing Corporation 1. Bharat Heavy Electricals Limited 18. Housing & Urban Development Corporation Limited 2. Bharat Petroleum Corporation Limited 19. Indian Renewable Energy Development Agency 3. Coal India Limited Limited 4. GAIL India Limited 20. Mazagon Dock Shipbuilders Limited 5. Hindustan Petroleum Corporation Limited 21. Railtel Corporation of India Limited 6. Indian Oil Corporation Limited 22. Solar Energy Corporation of India (SECI) Ltd. 7. NTPC Limited 23. NHPC Limited 8. Oil & Natural Gas Corporation Limited, 24. SJVN Limited 9. Power Finance Corporation Miniratna I CPSEs 10. Power Grid Corporation of India Limited 1. Airports Authority of India 11. Steel Authority of India Limited 2. Antrix Corporation Limited 12. Rural Electrification Corporation Limited 3. Balmer Lawrie & Co. Limited 13. Oil India Ltd 4. Bharat Coking Coal Limited 14. Hindustan Aeronautics Limited 5. Bharat Dynamics Limited Navratna CPSEs 6. BEML Limited 1. Bharat Electronics Limited 7. Bharat Sanchar Nigam Limited 2. Container Corporation of India Limited 8. Braithwaite & Company Limited 3. Engineers India Limited 9. Bridge & Roof Company (India) Limited 4. Mahanagar Telephone Nigam Limited 10. Central Coalfields Limited 5. National Aluminium Company Limited 11. Central Electronics Limited 6. National Buildings Construction Corporation 12. Central Mine Planning & Design Institute Limited Limited 13. Chennai Petroleum Corporation Limited 7. Neyveli Lignite Corporation Limited 14. Cochin Shipyard Limited 8. NMDC Limited 15. Cotton Corporation of India Ltd. 9. Rashtriya Ispat Nigam Limited 16. EDCIL (India) Limited 10. Shipping Corporation of India Limited 17. Garden Reach Shipbuilders & Engineers Limited 11. Rail Vikas Nigam Limited 18. Grid Controller of India Limited (GRID-INDIA) 12. ONGC Videsh Ltd 19. Goa Shipyard Limited 13. Rashtriya Chemicals & Fertilizers Limited 20. Hindustan Copper Limited 14. IRCON 21. Hindustan Steelworks Construction Limited 15. RITES 22. HLL Lifecare Limited 16. National Fertilizers Limited 23. Hindustan Paper Corporation Limited 304Department of Public Enterprises VI 24. HSCC (India) Limited 44. Pawan Hans Helicopters Limited 25. India Tourism Development Corporation Limited 45. Projects & Development India Limited 26. Indian Rare Earths Limited 46. Security Printing and Minting Corporation of India Limited 27. Indian Railway Catering & Tourism Corporation Limited 47. South Eastern Coalfields Limited 28. Indian Railway Finance Corporation Limited 48. Telecommunications Consultants India Limited 29. India Trade Promotion Organization 49. THDC India Limited 30. KIOCL Limited 50. Western Coalfields Limited 31. Mahanadi Coalfields Limited 51. WAPCOS Limited 32. MOIL Limited Miniratna II CPSEs 33. Mangalore Refinery & Petrochemical Limited 1. Artificial Limbs Manufacturing Corporation of India 34. Mineral Exploration Corporation Limited 2. Bharat Pumps & Compressors Limited 35. Mishra Dhatu Nigam Limited 3. Broadcast Engineering Consultants India Limited 36. MMTC Limited 4. Engineering Projects (India) Limited 37. MSTC Limited 5. FCI Aravali Gypsum & Minerals India Limited 38. National Projects Construction Corporation 6. Ferro Scrap Nigam Limited Limited 7. HMT (International) Limited 39. National Small Industries Corporation Limited 8. Indian Medicines & Pharmaceuticals Corporation 40. National Seeds Corporation Limited 41. Northern Coalfields Limited 9. MECON Limited 42. North Eastern Electric Power Corporation Limited 10. National Film Development Corporation Limited 43. Numaligarh Refinery Limited 11. Rajasthan Electronics & Instruments Limited 305Annual Report 2024-2025 Annexure-6 Schedule-wise List of Central Public Sector Enterprises Schedule- A (77) 30. IRCON International Limited 1. Airports Authority of India 31. Indian Railway Finance Corporation Limited 2. Advanced Weapons and Equipment India 32. Indian Renewable Energy Development Limited Corporation Limited. 3. Armoured Vehicles Nigam Limited 33. Indian Railway Catering & Tourism Corporation Limited 4. BEML Limited 34. Karmyogi Bharat 5. Bharat Electronics Limited 6. Bharat Heavy Electricals Limited 35. Konkan Railway Corporation Limited 7. Bharat Petroleum Corporation Limited 36. KIOCL Limited 8. Bharat Sanchar Nigam Limited 37. Mahanagar Telephone Nigam Limited 9. Central Warehousing Corporation 38. Mangalore Refinery & Petrochemicals Limited 10. Chennai Petroleum Corporation Limited 39. Mazagon Dock Shipbuilders Limited 11. Coal India Limited 40. MECON Limited 12. Cochin Ship Yard Ltd 41. MMTC Limited 13. Container Corporation of India Limited 42. MOIL Limited 14. Dedicated Freight Corridor Corporation of India 43. Mumbai Railway Vikas Corporation Limited Limited 44. Munitions India Limited 15. Electronics Corporation of India Limited 16. Engineers India Limited 45. National Aluminium Company Limited 17. Fertilizers & Chemicals (Travancore) Limited 46. NBCC (India) Limited 18. Food Corporation of India 47. National Fertilizers Limited 19. GAIL (India) Limited 48. NewSpace India Limited 20. Garden Reach Shipbuilders & Engineers Limited 49. NHPC Limited 21. Heavy Engineering Corporation Limited 50. National Highways and Infrastructure 22. Hindustan Aeronautics Limited Development Corporation Limited (NHIDCL) 51. NMDC Limited 23. Hindustan Copper Limited 52. National Textiles Corporation Limited 24. Hindustan Paper Corporation Limited 53. NTPC Limited 25. Hindustan Petroleum Corporation Limited 54. NLC India Limited 26. HMT Limited 55. North Eastern Electric Power Corporation Limited 27. Housing & Urban Development Corporation Limited 56. Numaligarh Refinery Limited 28. I T I Limited 57. Oil & Natural Gas Corporation Limited 29. Indian Oil Corporation Limited 58. Oil India Limited 306Department of Public Enterprises VI 59. ONGC Videsh Limited 13. Bridge & Roof Company (India) Limited 60. Power Finance Corporation Limited 14. British India Corporation Limited 61. Power Grid Corporation of India Limited 15. Burn Standard Company Limited 62. Power System Operation Corporation Limited 16. Cement Corporation of India Limited 63. RITES Limited 17. Central Coalfields Limited 64. RailTel Corporation of India Limited 18. Central Electronics Limited 65. Rail Vikas Nigam Limited 19. Central Mine Planning & Design Institute Limited 66. Rashtriya Chemicals and Fertilizers Limited 20. Cotton Corporation of India Limited 67. Rashtriya Ispat Nigam Limited 21. Eastern Coalfields Limited 68. Rural Electrification Corporation Limited 22. Engineering Projects (India) Limited 69. SJVN Limited 23. Fertilizer Corporation of India Limited 70. Security Printing & Minting Corporation of India Limited 24. Gliders India Limited 71. Shipping Corporation of India Limited 25. Goa Shipyard Limited 72. Solar Energy Corporation of India Limited 26. Handicrafts & Handlooms Export Corporation Limited 73. State Trading Corporation of India Limited 27. Hindustan Cables Limited 74. Steel Authority of India Limited 28. Hindustan Fertilizer Corporation Limited 75. Telecommunications Consultants (India) Limited 29. HLL Lifecare Limited 76. THDC India Limited 30. Hindustan Newsprints Limited 77. Yantra India Limited 31. Hindustan Organic Chemicals Limited Schedule - B (65) 32. Hindustan Shipyard Limited 1. Andrew Yule & Company Limited 33. Hindustan Steelworks Construction Company Limited 2. Air India Assets Holding Company Limited 34. HMT (International) Limited 3. Balmer Lawrie & Company Limited 35. HMT Machine Tools Limited 4. Bharat Coking Coal Limited 36. HMT Watches Limited 5. Bharat Dynamics Limited 37. India Optel Limited 6. Bharat Gas Resources Limited 38. India Tourism Development Corporation Limited 7. Bharat Petro Resources Limited 39. India Trade Promotion Organization 8. Bharat Pumps & Compressors Limited 40. Indian Drugs & Pharmaceuticals Limited 9. Brahmaputa Crackers & Polymers Limited 41. Indian Rare Earths Limited 10. Brahmaputra Valley Fertilizer Corporation 42. Instrumentation Limited Limited 43. M S T C Limited. 11. Biotechnology Industry Research Assistance Council 44. Madras Fertilizers Limited 12. Braithwaite & Company Limited 45. Mahanadi Coalfields Limited 307Annual Report 2024-2025 46. Mineral Exploration Corporation Limited 12. Central Railside Warehouse Company Limited 47. Mishra Dhatu Nigam Limited 13. Certification Engineers International Limited 48. National Films Development Corporation 14. Delhi Police Housing Corporation 49. National Handloom Development Corporation 15. EdCIL (India) Limited Limited 16. FCI Aravali Gypsum & Minerals (India) Limited 50. National Jute Manufacturers Corporation Limited 17. Ferro Scrap Nigam Limited 51. National Projects Construction Corporation Limited 18. Hindustan Antibiotics Limited 52. National Seeds Corporation Limited 19. HIL (India) Limited 53. National Small Industries Corporation Limited 20. Hindustan Photo Films Manufacturing Company 54. Northern Coalfields Limited Limited 55. Orissa Mineral Development Company Limited 21. Hindustan Prefab Limited 56. PEC Limited 22. Hindustan Salts Limited 57. Pawan Hans Limited 23. HMT Bearings Limited 58. Projects & Development India Limited 24. HMT Chinar Watches Limited 59. Scooters India Limited 25. Hooghly Dock and Port Engineers Limited 60. South Eastern Coalfields Limited 26. HSCC (India) Limited 61. SDCL 27. Hotel Corporation of India Limited 62. Troop Comforts Limited 28. The Jute Corporation of India Limited 63. Uranium Corporation of India Limited 29. Karnataka Antibiotics & Pharmaceuticals Ltd 64. W A P C O S Limited 30. Nagaland Pulp & Paper Company Limited 65. Western Coalfields Limited 31. National Backward Classes Finance & Schedule- C (46) Development Corporation. 1. Andaman & Nicobar Islands Forest & Plantation 32. National Handicapped Finance & Development Development Corporation Limited Corporation. 2. Artificial Limbs Mfg. Corporation of India 33. National Minorities Development & Finance 3. Brithwaite Burn & Jessop Construction Company Corporation Limited 34. National Research Development Corporation of 4. Bengal Chemicals & Pharmaceuticals Limited India. 5. BEML Land Assets Limited (BLAL) 35. National Safai Karamcharis Finance & 6. BHEL Electric Machines Limited Development Corporation. 7. Bharat Wagon & Engineering Company Limited 36. National Scheduled Castes Finance & Development Corporation 8. The Bisra Stone Lime Company Limited 9. Broadcast Engineering Consultants India Limited 37. National Scheduled Tribes Finance & Development Corporation 10. Central Cottage Industries Corporation of India Limited 38. NEPA Limited 11. Central Inland Water Transport Corporation 39. North Eastern Handicrafts & Handloom Limited Development Corporation Limited 308Department of Public Enterprises VI 40. North Eastern Regional Agricultural Marketing Schedule - D (06) Corporation Limited 1. Birds Jute & Exports Limited 41. Rajasthan Electronics & Instruments Limited 2. Hindustan Fluorocarbons Limited 42. Richardson & Cruddas (1972) Limited 3. Indian Medicines Pharmaceutical Corporation 43. Rohini Heliport Limited (RHL) Limited 44. STCL Limited 4. Orissa Drugs & Chemicals Limited 45. SCILAL 5. Rajasthan Drugs & Pharmaceuticals Limited 46. Tungabhadra Steel Products Limited 6. Bel Optronics Ltd 309Annual Report 2024-2025 Annexure-7 Statement of Scheme-wise Expenditure Department of Public Enterprises, Demand No. 33, 2024-25 Department of Public Enterprises (Grant No. 33) Rs.Lakh Sl. No. Heads of Account Scheme 33 - Department of Public Enterprises 2024-25 Exp. Upto BE RE 13.12.2024 2024-25 2024-25 2024-25 2852 Industries (Major Head) CRR Scheme Professional & Special Services 1 179.00 100.00 0.00 (28.00.28) 2 Grants - in- Aid (28.00.31) 1.00 1.00 0.00 3 CRR Scheme NER (01.00.31) 20.00 20.00 0.00 Total CRR 200.00 121.00 0.00 27 -RDC Scheme 1 Domestic Travel Expenses (27.00.11) 5.00 5.00 0 2 Foreign Travel Expenses (27.00.12) 5.00 5.00 0 3 Printing and Publications (27.00.16) 5.00 .75 0 Professional & Special Services 4 448.00 448.00 127.69 (27.00.28) 5 Grants - in- Aid (27.00.31) 1.00 3.25 2.25 6 Contribution ICPE (27.00.32) 110.00 0.00 0 RDC Scheme NER (02.00.31) 64.00 64.00 0 Total RDC 638.00 526.00 129.94 GRAND TOTAL 838.00 647.00 129.24 310For 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: https://www.financialservices.gov.in 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 iºÉiªÉàÉä´É VɪÉiÉä Government of India MINISTRY OF FINANCE ANNUAL REPORT 2024-2025 ANNUAL REPORT 2024-2025 MINISTRY OF FINANCE ºÉiªÉàÉä´É VɪÉiÉä PRINTED AT BUDGET PRESS, MINISTRY OF FINANCE, NEW DELHI