Feb 29, 2016: India’s
National Solar Mission and WTO ruling, Bank Board Bureau, Basel-III
General Studies: Daily Capsule
Curtain Raiser –News Update (Feb 29, 2016)
India’s National
Solar Mission and WTO ruling:
Complaint by the United States
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On 6 February 2013, the United States requested
consultations with India concerning certain measures of India relating to
domestic content requirements under the Jawaharlal Nehru National Solar
Mission (“NSM”) for solar cells and solar modules.
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As per the US, measures of India are inconsistent as per
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Findings of Panel established by Dispute Settlement Body (DSB) of the
WTO
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·
The Panel found
that the DCR measures are trade-related investment measures
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The Panel found that this suffices to
establish that they are inconsistent with both Article III:4 of the GATT 1994
and Article 2.1 of the TRIMs Agreement.
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Some Quotes on WTO
ruling to illustrate the impact and to give a feel of the subject:
Vinay Rustagi, managing director of Bridge to
India
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·
"It is a blow for domestic solar
manufacturers because the DCR was a safety net for them,"
·
"But DCR could never have been a
long-term, sustainable policy. Many fundamental reforms are needed to make
local industry competitive in the long run."
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(The WTO Just Ruled Against India's Booming Solar
Program)
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·
Bringing this case
is a perverse move for the United States
·
Nearly half of U.S.
states have renewable energy programs that, like India's solar
program, include "buy-local" rules that create local, green jobs
and bring new solar entrepreneurs to the economy
·
The U.S. government should drop this case to
avoid undermining jobs and climate protections not just in India, but also at
home.
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Bank Board Bureau:
Chairman Bank Board Bureau
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Vinod Rai (former Comptroller
and Auditor-General of India (CAG); can a CAG hold a government office
post-retirement?)
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Mandate of Bank Board Bureau
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·
The Bureau will
recommend for selection of heads - Public Sector Banks and Financial
Institutions
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and help Banks in developing strategies and
capital raising plans
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Composition of BBB
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·
three ex-officio
members
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and three expert members
·
in addition to Chairman
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All the Members and Chairman
will be part time
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start functioning from 1st April,
2016
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And also: Centre’s
nod for Bank Board Bureau, Feb 29, 2016, The Hindu
Basel –III:
Basel III (or the Third Basel Accord)
is a global, voluntary regulatory framework on bank capital
adequacy, stress
testing, andmarket liquidity risk. It was agreed upon by the members of the Basel Committee on
Banking Supervision in 2010–11.
Basel III is intended to strengthen bank
capital requirements by
increasing bank liquidity and decreasing bank leverage.
The
non-performing assets of public sector banks are estimated at almost Rs. 4 lakh
crore, and they need to raise capital of Rs. 2.4 lakh crore by 2018 to conform
to Basel-III capital requirement norms, according to the government.
New Accounting System:
Currently used accounting system
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Cash
Accounting (recognizes a transaction only when money changes hand)
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Recommended
Accounting System by the Fourteenth Finance Commission
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Accrual
System (recognizes the transaction at the time it is made; provides more
current snapshot)
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Source: Be cautious on new
accounting system:CGA, by TCA Sharad Raghavan, Feb 29, 2016,
The Hindu