Clever Arun Jaitley BJP Schemes For 1 Billion Poor
May25, 2015 (C) Ravinder Singh email@example.com
Watching PM speech broadcast live without interruption it was noticed most of the Schemes of BJP government are nothing but Clever & Misleading.
Here are their real benefits to 100 crore poor.
1. Pradhan Mantri Suraksha Bima Yojana
Eligibility: Available to people in age group 18 to 70 years with bank account.
Premium: Rs.12 per annum.
Risk Coverage: For accidental death and full disability - Rs.2 Lakh and for partial disability – Rs.1 Lakh.
Roughly 2.5 lakh people Die in Accidents and 5 lakh people are Disabled in India annually. This requires Rs.10,000 Crores Claims Payment only and GoI collects just about Rs.500 crores as premium. No one dying of natural causes or illness is covered.
Ø Benefit to Aam Admi Rs.9500 Crores.
2. Pradhan Mantri Jeevan Jyoti Bima Yojana
Eligibility: Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.
Premium: Rs.330 per annum. It will be auto-debited in one instalment.
Risk Coverage: Rs.2 Lakh in case of death for any reason.
Death rate in India is 0.7 per 1000 – 8m people die every year but Jeevan Bima is applicable to around 40% population in 18 to 50 years age frame of healthiest or around 1m people die in this group for 50 crore population. So Claims of all eligible shall be Rs.20,000 crores for Rs.15,500 Crore Premium collected.
Ø Gains to 50 Crore People – Rs.500 Crores.
3. Atal Pension Yojana
Benefit of APY: Fixed pension for the subscribers ranging between Rs. 1000 to Rs. 5000, if he joins and contributes between the age of 18 years and 40 years. The contribution levels would vary and would be low if subscriber joins early and increase if he joins late.
Age of joining and contribution period: The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more.
For example, to get a fixed monthly pension between Rs.1,000 per month and Rs. 5,000 per month, the subscriber has to contribute on monthly basis between Rs. 42 and Rs. 210, if he joins at the age of 18 years.
For the same fixed pension levels, the contribution would range between Rs. 291 and Rs. 1,454, if the subscriber joins at the age of 40 years.
Invest Rs.42/Month for 42 Years Get Rs.80/Month for 10 Years
At minimum premium level of Rs.42 per month at age 18 – beneficiary would be spending Rs.42 per month for 42 years before eligible for Rs.1000 per month pension. REAL VALUE OF PENSION SHALL BE JUST Rs.80 PER MONTH DUE TO RUPEE DEVALUATION OR INFLATION.
Ø Poor Shall Be Poorer After The End of 42 Year Term
4. Micro Units Development and Refinance Agency (MUDRA) Bank
NSSO survey of 2013, there are 5.77 crore small business units. Only 4% of such units get institutional finance.
A sum of Rs 20,000 crores would be allocated to the MUDRA Bank from the money available from shortfalls of Priority Sector Lending for creating a Refinance Fund to provide refinance to the Last Mile Financers. Another Rs 3,000 crore would be provided to the MUDRA Bank from the budget to create a Credit Guarantee corpus for guaranteeing loans being provided to the micro enterprises.
Ø RIL Got Rs.22,000 Crore Bank Credit in FY2014-15 – MUNDRA Allocated UNUTILIZED PRIORITY LENDING for 6 Crore MSME OR JUST RS.20,000 Cr for 6 Cr MSMEs = Rs.3333 Not Rs.10,000 to Rs.10,00,000 Claimed By PM.
5. Financing to Micro, Small and Medium Enterprises (MSMEs)
Loans to Medium Enterprises are being brought under Priority Sector Lending.
A separate sub-limit of 7.5% in Priority Sector Lending is being created for the Micro Enterprises. Micro Enterprise Lending of Rs.150,000 Crore is no improveent.
Ø Nothing For MSME But Excuse to Allow New Pvt Banks.
6. Priority Sector Lending (PSL)
Total credit extended by Banks in Priority sector Lending is Rs.21,54,356 Crore. There is a need to increase employment, create basic infrastructure and improve competitiveness of the economy, thus creating more jobs.
Ø Farmers are Not Permitted to Store, Process & Market Their Produce, SME don’t get Intellectual Property Protection Can’t Progress to Global Scale, Micro Enterprises Add No Value To Products. PSL Lending Fail to Contribute to Significantly Improve GDP or Create Regular Jobs.
7. Banking Reforms
Separation of the post of Chairman and Managing Director
Enabling provision for the appointment as MD & CEO in five major banks, so that wider choice is available
Both Public Sector and Private Sector bankers can apply. Higher salary can be given in appropriate cases
Revamping of present selection system which inter-alia includes structured three separate interviews, allotment of banks on merit-cum-preference basis
Ø Engineers & Professionals Are Missing in Indian Banking. No Monitoring of Loans Sanctioning Process and Utilization, Preventing Diverting Of Loans to Other Companies, TIMELY RECOVERY OF LOANS and Promoting High-Tech Companies.
8. International Financial Services Centre (IFSC)
An International Financial Services Centre (IFSC) is set up at Gandhinagar, Gujarat as a part of a Special Economic Zone (SEZ).
The key features of these regulations will be that any financial institution (or its branch) set up in the IFSC,-
a) shall be treated as a non-resident Indian located outside India,
b) shall conduct business in such foreign currency and with such entities, whether resident or non-resident, as the Regulatory Authority may determine,
c) subject to certain provisions, nothing contained in any other regulations shall apply to a unit located in IFSC.
Ø IFSC is Foreign Institution Within India Owned By Locals
9. New Investment Pattern for Non-Government Provident Funds -
Government notifies the Investment Pattern for Non-Government Provident Funds, Superannuation Funds and Gratuity Funds.
The revised investment pattern has been finalised and is being notified shortly.
Providing minimum and maximum limits for Central Government Securities, State Government Securities, Government Guaranteed Securities
(with a separate maximum limit of not in excess of 10%) and units of gilt Mutual Funds, forming part of a single category and allowing investment up to 50% of the investible funds, instead of 55% under the earlier Investment Pattern of 2008;
Providing a minimum investment ceiling for the categories of (a) Government Securities, (b) debt securities and (c) the equity and equity related instruments;
Ø Scheme to Use Non Government PF for Largely Private Companies Who Don’t Raise Funds Through IPOs.
Nothing Serious for 100 Crore Poor Indians
Ravinder Singh, Inventor & Consultant, INNOVATIVE TECHNOLOGIES AND PROJECTS
Y-77, Hauz Khas, New Delhi-110016, India. Ph; 091- 9718280435, 9650421857
Ravinder Singh* is a WIPO awarded inventor specializing in Power, Transportation,
Water, Energy Saving, Agriculture, Manufacturing, Technologies and Project.