Annual Report 2022-23 (Eng.)

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Government of India
MINISTRY OF FINANCE
ANNUAL REPORT 2022-2023

MINISTRY OF FINANCE
ANNUAL REPORT
PRINTED AT BUDGET PRESS, MINISTRY OF FINANCE, NEW DELHI 2022-2023
Contents
Page No.
INTRODUCTION vii
CHAPTER I
Department of Economic Affairs
1. Economic Division 1
2. Budget Division 4
3. Financial Markets Division 9
4. Financial Stability and Cyber Security Division 23
5. Financial Sector Reforms and Legislation Division 25
6. Infrastructure Policy and Planning Division 28
7. Investment and Digital Economy Division 31
8. FB & ADB Division 38
9. International Economic Relations Division 46
10. Aid Accounts & Audit Division 53
11. Administration Division 54
12. Bilateral Cooperation and Sustainable Finance Division 57
13. Integrated Finance Division 64
14. Coin & Currency Division 68
15. Other Multilateral Institutions Division 74
16. Infrastructure Support and Development Division 77
Annexures 80
Organisation Chart 85
i
CHAPTER II
Department of Expenditure
1. Personnel Division 87
2. Public Finance-States Division 88
3. Public Finance Central Division 90
4. Procurement Policy Division 91
5. Official Language 92
6. Integrated Finance Unit (IFU) 93
7. Controller General of Accounts 93
8. Chief Adviser Cost 97
9. Arun Jaitley National Institute of Financial Management (AJNIFM) 99
10. Chief Controller of Accounts (Finance) 100
11. Central Pension Accounting Office 102
Annexures I to IV 104
CHAPTER III
Department of Revenue
1. Organization and Functions 109
2. Central Board of Direct Taxes 110
3. Central Board of Indirect Taxes and Customs 120
4. Revenue Headquarters Administration 141
5. Integrated Financial Unit (IFU) 179
6. Implementation of Official Language Policy 180
7. Implementation of Right to Information Act, 2005 181
8. e-governance activities 183
9. Swachh Bharat Campaign 195
Annexure - I - Representation of SCs/STs/OBCs 196
Annexure - II - Representation of VH/OH 207
Annexure - III - Summary of Audit Reports / Paras 218
Annexure - IV - Organization Chart 219
ii
CHAPTER IV
Department of Investment and
Public Asset Management
I. Functions 221
II. Vision 221
III. Mission 221
IV. Organisational Structure 221
V. Current Policy on Disinvestment in CPSEs 221
VI. Disinvestment Performance 223
VII. Other Initiatives 225
VIII. Challenges to Disinvestment 226
IX. Dividend Receipts 226
X. Initiatives Undertaken for Persons with Disabilities,

Schedule Castes, Scheduled Tribes and Other Backward Classes 226
XI. Initiatives Relating to Gender Budgeting and

Empowerment of Women 226
XII. Official Language Policy 226
XIII. E-Governance 226
XIV. Redressal of Public Grievances 227
XV. Vigilance Machinery 227
XVI. Right to Information Act, 2005 227
XVII. Initiatives for Good Governance 227
XVIII. Audit Paras/Objections 228
XIX. Integrated Finance Unit 228
XX. Participation in ‘Azadi Ka Amrit Mahotsav’ (AKAM) 228
Annexure I 229
Appendix I - Organisation Chart 231

Appendix II 232
iii
CHAPTER V
Department of Financial Services
1. Work Allocation among Sections 233
2. Developments in Banking Sector 237
3. Financial Inclusion 242
4. Key Schemes 245
5. Agriculture Credit 247
6. Priority Sector Lending (PSL) 249
7. Insurance Sector 251
8. Pension Sector 254
9. Financial Institutions 258
10. Measures taken during COVID-19 pandemic 261
11. Representations from SCs, STs, OBCs and

PWDs in financial sector institutions 263
12. Vigilance 263
13. Special Court 263
14. Office of the Custodian 264
15. Debt Recovery Appellate Tribunal/Debt Recovery Tribunal 264
16. Information Technology and Cyber Security 265
17. Disposal of Public Grievances 265
18. Right to Information (RTI) Act, 2005 267
19. Audit Paras 267
Annexures 268
iv
CHAPTER VI
Department of Public Enterprises

1. Public Enterprises Survey 273
2. Organisation and Autonomy of CPSEs 273
3. Wage Policy and Manpower Rationalization 275
4. Categorisation of CPSEs 276
5. Monitoring and Evaluation 276
6. Corporate Social Responsibility (CSR) 277
7. Scheme for ‘Counselling, Retraining and Redeployment (CRR)’

and ‘Research, Development and Consultancies (RDC)’ 277
8. Implementation of New Public Sector Enterprises (PSE) Policy 279
9. Voluntary Retirement Scheme (VRS) 280
10. Executive Development Programmes 280
11. Reservation in Services for Scheduled Castes (SCs),

Scheduled Tribes (STs), Other Backward Classes (OBCs)
and Others, in the CPSEs 280
12. Official Language Policy 282
13. Procurement by CPSEs from MSEs and through GeM 282
14. Events organized by DPE under the aegis of Azadi Ke Amrit Mahotsav 283
Annexure 1 - Organisation Chart 284
Annexures 2-8 285
v
Introduction
Introduction
The Ministry comprises of six Departments due to ongoing geopolitical tensions and a slowdown in
namely:— China have resulted in a downward revision of the real
GDP growth rate (as per SAE 2022-23) in comparison to
 Department of Economic Affairs
the Real GDP growth rate forecasted in Economic Survey
 Department of Expenditure 2021-22.
 Department of Revenue
On the demand side, private consumption has
 Department of Investment and Public Asset witnessed continued momentum. It is estimated to grow
Management at 7.3 per cent in 2022-23 compared to 11.2 per cent in
 Department of Financial Services 2021-22, reflecting the rebound demand witnessed in the
 Department of Public Enterprises current year on account of the release of pent-up demand
for contact-intensive services. Gross Fixed Capital
Formation (GFCF) is estimated to grow at 11.2 per cent
1. Department of Economic Affairs
in 2022-23, supported by various reforms and measures
Economic Growth taken by the Government leading to the reinvigoration of
the capex cycle and crowding-in of private investment.
The global economy was on the path of recovery The government has continued to support the investment
after waning of the COVID-19 pandemic until the Russia- activity with capital expenditure reaching Rs. 5.7 lakh
Ukraine conflict broke out in February 2022. The conflict crore during April-January 2023, which is 29 per cent
further disrupted the global supply chains and led to a higher than last year's corresponding period. Private
spike in prices of critical commodities, leading to uptick investment also picked up in 2022-23, partially driven by
in inflationary pressures. To restrain the consequent increased public capex and because of the strengthening
inflation, major central banks around the world undertook of the balance sheets of the corporates and the
monetary tightening resulting in tightening of financial consequent increase in credit flow. Exports are estimated
conditions. As a result, increased borrowing costs and to grow at 11.5 per cent in 2022-23 despite sustained
stubbornly high inflation is now getting reflected in multiple supply chain disruptions and an uncertain geopolitical
leading indicators of global economic activity. Global environment. The share of exports in GDP (at 2011-12
developments have posed downside risks to India's prices) also increased to 23.1 per cent in 2022-23
growth and overall macroeconomic stability as well. The compared to 22.1 per cent in 2021-22.
impact was seen in the first half of 2022-23, in the
widening of the current account deficit (CAD), uptick in On the supply side, agriculture, forestry and fishing
retail inflation, the outflow of portfolio investments, and continues to lend unwavering support to economic growth
the appreciation of the US$ against the `. In the second and are expected to witness YoY growth of 3.3 per cent
half of 2022-23, retail inflation has fallen below the in 2022-23. The growth in the agriculture sector is likely
tolerance ceiling, portfolio investments have started to to remain buoyant, supported by healthy progress in Rabi
return, the ` has stabilized against the US$, but export sowing. This has led to a recovery in the rural economy.
growth has declined with the slowing of global growth. The improvement in rural demand can be deduced from
However, despite the unfavourable developments, as per the robust domestic tractor, two and three-wheelers sales
the latest IMF World Economic Outlook estimates, the during Q3 of 2022-23. The industry sector is likely to
Indian economy continues to be one of the fastest- witness modest growth of 3.6 per cent in 2022-23
growing major economies in 2022-23, which is a reflection compared to strong growth of 11.6 per cent in 2021-22,
of India's underlying economic resilience and strong possibly because of input cost-push pressures, supply
macroeconomic fundamentals. chain disruptions and China lockdown affecting the
availability of essential inputs and slowing global
As per the Second Advance Estimates of National economy. The services sector is expected to rebound
Income, 2022-23 of the National Statistical Office (NSO), with YoY growth of 9.4 per cent in 2022-23 compared to
Ministry of Statistics and Programme Implementation 8.8 per cent in 2021-22, driven by a recovery of the
(MoSPI), India's Real GDP and Nominal GDP are contact-intensive service sector (Trade, hotels, transport,
projected to grow by 7 per cent (YoY) and 15.9 per cent communication and services related to broadcasting)
(YoY), respectively, in 2022-23. Persistently high inflation, which is likely to witness the highest growth of 14.2 per
tightening financial conditions, supply chain disruptions cent on account of the release of pent-up demand.
vii
Annual Report 2022-2023
Industry 2021-22 (April-December). The three broad sectors,

mining, manufacturing and electricity sectors registered
The performance of the industrial sectors based on
growth of 5.4 per cent, 4.8 per cent and 9.9 per cent
the Index of Industrial Production (IIP) comprising mining,
respectively in 2022-23 (April-December) as against 16
manufacturing and electricity sectors witnessed continued
per cent, 16.1 per cent and 9.4 per cent growth
momentum during 2022-23 (April-December). According
respectively during the corresponding period last year.
to the data on the IIP released by the National Statistical
In terms of used based grouping, except for Consumer
Office (NSO) under the Ministry of Statistics and
Non-Durable Goods all subgroups witnessed positive
Programme Implementation (MOSPI), the IIP based
growth during 2022-23 (April-December). The growth of
industrial growth during 2022-23 (April-December), was
different sectors and used based industrial group is given
5.4 per cent as compared to 15.3 per cent during the
below.
Table: Growth of Index of Industrial Production (IIP) (in Per cent)
(Base 2011-12=100)
Industry group Weight 2021-22 2021-22 (April- 2022-23 (April-

December) December)
Mining 14.37 12.2 16 5.4
Manufacturing 77.63 11.8 16.1 4.8
Electricity 7.99 8.0 9.4 9.9
Growth by used-based industrial group
Primary Goods 34.04 9.6 11.8 7.8
Capital Goods 8.22 17.0 24.3 14.1
Intermediate Goods 17.22 15.4 20.8 4.5
Infrastructure/Construction 12.33 18.8 23.9 7.6

Goods
Consumer Durable Goods 12.83 12.4 20.6 3.4
Consumer Non-Durable 15.32 3.2 5.4 -1.2

Goods
General Index 100 11.4 15.3 5.4
Source: NSO, MoSPI
The index for eight core industries comprising coal, 2021-22 (April-January). The acceleration in ICI is mainly
crude oil, natural gas, refinery products, fertilizers, steel, driven by double digit growth in coal, cement, electricity
cement and electricity with a combined weight of nearly and fertiliser subsectors. Except for crude oil, all sub-
40 per cent in the IIP, registered growth of 7.9 per cent in sectors registered positive growth during 2022-23 (April-
2022-23 (April-January) compared to 11.6 per cent in January).
viii
Introduction
Weight 2021-22 2021-22 (Apr- 2022-23 (Apr-

Jan) Jan)
Coal 10.33 8.5 10.3 16.1
Crude Oil 8.98 -2.6 -2.6 -1.3
Natural Gas 6.88 19.2 21.2 1.4
Petroleum Refinery 28.04 8.9 9.3 5.4

Products
Fertilizers 2.63 0.7 -0.3 10.5
Steel 17.92 16.9 19.9 7.1
Cement 5.37 20.8 24.7 10.0
Electricity 19.85 8.0 8.5 10.1
Overall Growth Rate 100 10.4 11.6 7.9
Source: Office of the Economic Adviser, DPIIT (Ministry of Commerce & Industry)
Performance of the Banking Sector of SCBs has been rising sequentially in the post-asset
quality review period. With a pick-up in lending activity
Since the middle of the previous decade, RBI and
during H1:FY23, CRAR moderated in September 2022
the Government have made dedicated efforts in terms of
because of an increase in risk-weighted assets (RWAs).
calibrated policy measures like strengthening the
regulatory and supervisory framework, implementation However, it remains well above the minimum capital
of 4R's approach of Recognition, Resolution, requirement, including Capital Conservation Buffer (CCB)
Recapitalisation and Reforms to clean and strengthen requirements of 11.5 per cent.
the balance sheet of the banking system. These During the first half of FY23, the profitability of SCBs,
continuous efforts over the years have culminated in the measured in terms of Return on Equity (ROE) and Return
enhancement of risk absorption capacity and a healthier on Assets (ROA), improved to levels last observed in
banking system balance sheet both in terms of asset
FY15. At the system level, Profit After Tax (PAT) witnessed
quantity and quality over the years.
a double-digit growth of 40.7 per cent in the quarter ending
Consequently, the asset quality of Scheduled September 2022, led by strong growth in Net Interest
Commercial Banks (SCBs) has been improving steadily Income (NII) and a significant lowering of provisions.
over the years across all major sectors. The Gross Non- Macro-stress tests conducted by RBI for credit risk reveal
Performing Assets (GNPA) ratio has decreased from 8.2 that SCBs are well-capitalised and that all banks would
per cent in March 2020 to a seven-year low of 5.0 per be able to comply with the minimum capital requirements
cent in September 2022, while Net Non-Performing even under adverse stress scenarios.
Assets (NNPA) have dropped to a ten-year low of 1.3 per
cent of total assets. Lower slippages and the reduction in Credit Growth
outstanding GNPAs through recoveries, upgrades and
The recovery in economic activity in FY22, along
write-offs led to this decrease. Lower GNPAs, combined
with the enhanced financial soundness of banks and
with high provisions accumulated in recent years,
corporates, has bolstered the expansion of non-food bank
contributed to a decline in NNPA.
credit since June 2021.The YoY growth in non-food bank
Moreover, with shrinking GNPAs, the Provisioning credit accelerated to 16.7 per cent as on 27th January
Coverage Ratio (PCR) has been increasing steadily since 2023. This not only shows an acceleration in the growth
March 2021 and reached 71.6 per cent in September of current economic activities but also an anticipation of
2022. The Credit to Risk Weighted Asset Ratio (CRAR) continued momentum in economic activity in future.
ix
Credit growth has been broad-based across sectors, focused on the withdrawal of accommodation, while
with retail credit driving the growth primarily owing to rising supporting growth' in this meeting, signalling the start of
demand for home loans. An increase in demand for the monetary tightening cycle.
housing induces greater investment which, in turn, sets
Recognising the sizeable upside risk imparted by
off a virtuous cycle of growth and investment. Credit to
adverse global developments, such as the generalised
agriculture and allied activities gained momentum
hardening of commodity prices and an increased
supported by the Government's concessional institutional
likelihood of prolonged supply chain disruptions, the MPC
credit and higher agricultural credit target. Industrial credit
convened an off-cycle meeting in May 2022. Members
growth has been buoyed by a pick-up in credit to MSMEs,
unanimously voted for an increase of 40 bps each in the
assisted by the benefits accrued from the effective
policy repo rate, the SDF and the Marginal Standing
implementation of the Emergency Credit Line Guarantee
Facility (MSF), and a 50-bps increase in the Cash
Scheme (ECLGS) and the support provided by the
Reserve Ratio (CRR). Between May 2022 and February
government's production-linked incentive scheme and
2023 and over six meetings, the MPC implemented a
improvement in capacity utilisation. Credit growth in
cumulative hike of 250 bps each in the policy repo rate,
services was driven by a recovery in credit to NBFCs,
the SDF, the MSF and the bank rate. In the initial phases
commercial real estate and trade sectors.
of the tightening cycle, the committee noted that
With moderation in overseas issuances and lower commodity price-driven inflationary pressures, increased
investments by Private Equity (PE)/Venture Capital (VC), volatility and initial signs of a slowdown in output
the financing needs of the corporate sector are being characterised the global outlook.
met through domestic resources. As funds raised from
the primary segment of domestic equity markets declined Liquidity Conditions and its Management
during FY23, reliance on bank credit for funding regular
Surplus liquidity conditions that prevailed post-
operations and capacity expansion increased. Also, the
Covid-19 in response to the Reserve Bank's conventional
Incremental Credit-Deposit ratio rose sharply both on an
and unconventional monetary measures moderated
annual (122.0 per cent, YoY) and half-yearly basis (172.5
during FY23 in consonance with the changed monetary
per cent; September 2022 over March 2022). The
policy stance that focused on the withdrawal of
accumulation of deposits in the past few years has
accommodation. With the Marginal Standing Facility
enabled banks to fund the growing credit demand. Here,
(MSF) rate retained at 25 bps above the policy repo rate,
the well-capitalised banking system with a low NPA ratio
the Liquidity Adjustment Facility (LAF) corridor became
and more robust corporate sector fundamentals will
symmetric around the policy repo rate - the corridor width
continue to enhance the flow of bank credit into productive
was thus restored to 50 bps, the position that prevailed
investment opportunities, notwithstanding the rising
before the pandemic. The RBI's move to hike the Cash
interest rates.
Reserve Ratio (CRR) by 50 bps resulted in a withdrawal
Monetary Developments of primary liquidity to the tune of `87,000 crore from the
banking system.
The Monetary Policy Committee (MPC) maintained
a status quo on the policy repo rate between May 2020 The daily net liquidity absorption averaged `2.5 lakh
and February 2022 after implementing a 115 basis points crore during FY23 (up to 21 December 2022) as
(bps) reduction between March 2020 and May 2020. compared with `6.7 lakh crore in FY22. The Reserve
Retail inflation crossed the upper limit of RBI's tolerance Bank remained nimble and agile in liquidity management
band since January 2022. Sensing a serious risk to price by conducting two-way operations. It injected liquidity to
stability, RBI initiated the monetary tightening cycle. In its assuage transient liquidity tightness through two variable
April 2022 meeting, the committee introduced the rate repo (VRR) auctions of `50,000 crore each of 3 days
Standing Deposit Facility (SDF), which allowed for the and overnight maturity on 26th July and 22nd September
deposit of excess funds by banks with the RBI without 2022, respectively. The gradual withdrawal of surplus
the necessity of collateral in the form of government liquidity pushed the weighted average call rate (WACR) -
securities, thereby allowing effective liquidity the operating target of monetary policy - closer to the
management in a collateral-free manner. The SDF, policy repo rate, on an average basis. The WACR traded
introduced at a rate of 3.75 per cent, replaced the reverse 6 bps above the policy repo rate, on an average, during
repo rate as the new floor of the Liquidity Adjustment H2 (up to 21 December 2022) compared to 28 bps below
Facility (LAF) corridor. The MPC also indicated a change it during H1. Interest rates on various money market rates
in stance from 'Accommodative' to 'Accommodative and - 91-day Treasury Bills (T-Bills), 3-month certificates of
x
Introduction
deposit and commercial papers - gradually firmed up in private sector banks and 'others' were net buyers in the
line with the increase in the repo rate. secondary market.
Lending and deposit rates of banks increased during Services Sector

FY23 in consonance with the policy repo rate changes.
The Covid-19 pandemic hurt most sectors of the
During FY23 (up to December 2022), external
economy, with the effect particularly profound for contact-
benchmark-based lending rate and 1-year median
intensive services sectors like tourism, retail trade, hotel,
marginal cost of funds-based lending rate (MCLR)
entertainment, and recreation. On the other hand, non-
increased by 225 bps and 115 bps, respectively. Overall,
contact services such as information, communication,
the weighted average lending rate (WALR) on fresh and
financial, professional, and business services remained
outstanding rupee loans rose by 105 bps and 61 bps,
resilient. However, the services sector witnessed a swift
respectively, in FY23 (up to October 2022). On the deposit
rebound in FY22, growing Year-on-Year (YoY) at 8.8 per
side, the weighted average domestic term deposit rate
cent compared to a contraction of 8.2 per cent in the
(WADTDR) on fresh term deposits increased by 141 bps
previous financial year. The improvement was driven by
in FY23 (up to October 2022).
growth in the 'Trade, Hotel, Transport, Storage,
An analysis of transmission across bank groups Communication and Services related to broadcasting'
during FY23 (up to October 2022) indicates that the sub-sector, which bore the maximum burden of the
increase in the WALRs on fresh loans was higher in the pandemic. The growth momentum has continued in FY23
case of public sector banks, while that of the WADTDR as well. As per the Second Advance Estimates, Gross
on outstanding deposits and WALR on outstanding loans Value Added (GVA) in the services sector is estimated to
was higher for private banks. grow at 9.4 per cent in FY23, driven by 14.2 per cent
growth in the contact-intensive services sector.
Developments in the G-Sec Markets
Growth in the services sector in Q3 of 2022-23 is
After remaining steady through 2020 and 2021, the led by an increasing contribution of the contact-intensive
yield on the 10-year government bond rose in 2022. The services sector (trade, hotel, transport, communication
weighted average yield spike reflects the domestic bond and services related to broadcasting) to real GVA, as the
market volatility stemming from uncertainty in crude removal of restrictions and near-universal vaccination
prices, a hawkish stance of major central banks, a coverage led to a shift in discretionary consumption
hardening of global bond yield and the pressure on the towards contact-intensive services with the release of
rupee. The monthly average yield on the 10-year pent-up demand.
government bond stood at 7.35 per cent in February 2023
Bank credit to the services sector has witnessed
after having peaked at 7.5 per cent in June 2022. Yields
significant growth since October 2021 with the
moderated in November and December 2022 following
improvement in vaccination coverage and recovery in the
smaller rate hikes by major central banks and declining
services sector. The credit to services sector saw a YoY
inflation. With the softening of yields, volatility also
growth of 21.5 per cent in January 2023 compared to a
declined in the second half of 2022.
5.7 per cent growth in January 2022.
The trading volume in G-Secs (including T-Bills and
The World Investment Report 2022 of UNCTAD
SDLs) reached a two-year high of `27.7 lakh crore during
places India as the seventh largest recipient of FDI in the
Q2 FY23, registering a YoY growth of 6.3 per cent. The
top 20 host countries in 2021. In FY22 India received the
higher trading volume reflects the growing interest of
highest-ever FDI inflows of US$ 84.8 billion including US$
market players/ traders in the government security
7.1 billion FDI equity inflows in the services sector. To
market.
facilitate investment, various measures have been
Private Sector Banks emerged as the dominant undertaken by the Government, such as the launch of
trading segment in the secondary market during the the National Single-Window system, a one-stop solution
quarter under review, with a share of 25.0 per cent in for approvals and clearances needed by investors,
"Buy" deals and 24.8 per cent in "Sell" deals in the total entrepreneurs, and businesses. To ensure the
outright trading activity, followed by foreign banks, public liberalization of investment in various industries, the
sector banks, primary dealers and mutual fund. On a net Government has permitted 100 per cent foreign
basis, foreign banks and primary dealers were net sellers. participation in telecommunication services, including all
In contrast, public sector banks, cooperative banks, services and infrastructure providers, through the
financial institutions, insurance companies, mutual funds, Automatic Route.
xi
Services sector performance
Share in GVA Growth

(per cent)
Sector 2022-23 2021-22 2022-23 Q1 Q2 Q3

st nd
(2nd AE) (1 RE) (2 AE)
Total Services (Excluding

54.4 8.8 9.4 16.3 9.4 6.2
construction)
Trade, hotels, transport,

communication & services 19.1 13.8 14.2 25.7 15.6 9.7
related to broadcasting
Financial, real estate &

22.5 4.7 6.9 8.6 7.1 5.8
professional services
Public administration,
12.8 9.7 7.1 21.3 5.6 2.0
defence & other services*
Source: Ministry of Statistics and Programme Implementation

Share in GVA is at Current Prices and growth in GVA is at Constant 2011-12 Prices
Other services include Education, Health, Recreation and other personal services
PE: Provisional Estimates. AE: Advance Estimates
Agriculture and Food Management tonnes which is higher than the average Kharif food grain
The Indian agriculture sector grew by 3.0 per cent production of the previous five years (2016-17 to 2020-
in 2021-22 compared to 3.3 per cent in 2020- 21. As per 21). As per First Advance Estimates 2022-23 (kharif only)
Fourth Advance Estimates for 2021-22, the production the paddy area was about 3.8 lakh hectares less than
of Foodgrains in the country is estimated at 315.72 million the sown area of 411.2 lakh hectare during 2021-22 (kharif
tonnes which is higher by 4.98 million tonnes than the season). Further, in the current rabi season the area under
production of foodgrain during 2020-21. The production rabi paddy has expanded by 6.6 lakh hectares as
during 2021-22 is higher by 25 million tonnes than the compared to last year (Crop Weather Watch Group 12
previous five years’ (2016-17 to 2020-21) average January 2023). According to third advance estimates
production of foodgrains. As per the First Advance (2021-22), horticulture had a record production of 342.3
Estimates for 2022-23 (Kharif only), total food grains million tonnes in an area of 28.0 million hectares.
production in the country is estimated at 149.9 million
(Production in Million Tonnes)

Crops 2017-18 2018-19 2019-20 2020-21 2021-22*
Rice 112.76 116.48 118.87 124.37 130.29
Wheat 99.87 103.60 107.86 109.59 106.84
Nutri/Coarse Cereals 46.97 43.06 47.75 51.32 50.90
Total Pulses 25.42 22.08 23.03 25.46 27.69
Total Nine Oilseeds 31.46 31.52 33.22 35.95 37.70
Cotton # 32.81 28.04 36.07 35.25 31.20
# Lakh bales of 170 kgs. Each
* 4th advance Estimates
xii
Introduction
Livestock Sector is an important subsector of agriculture million tonnes of revenue-earning freight traffic
in the Indian economy. It grew at a CAGR of 7.93 per (excluding KRCL).
cent during 2014-15 to 2020-21 (at constant prices). As  In the case of the civil aviation sector, the total
per the estimates of National Accounts Statistics (NAS) number of passengers carried in December
2020 for sector wise GVA of agriculture and allied sectors, 2022 stood at 150.1 lakh, which was 106.4 per
the contribution of livestock in total agriculture and allied cent of the pre-Covid level (average for 11
sector GVA (at constant prices) has increased from 24.32 months from April 2019 to February 2020).
per cent (2014-15) to 30.13 per cent (2020-21). During November 2022, total air cargo tonnage
stood at 2.5 lakh MT, which is 89 per cent of
Dairy is the single largest agricultural commodity the pre-Covid levels.
contributing 5 per cent of the national economy and
employing more than 8 crore farmers directly. Milk  The capacity of major ports, which was 871.5
production in the country has grown at a compound Million Tonnes Per Annum (MTPA) at the end
of March 2014, has increased to 1534.9 MTPA
annual growth rate of about 6.2 per cent to reach 209.96
by the end of March 2022. Cumulatively they
million tonnes in 2020-21 from 146.31 million tonnes in
handled 720.1 MT traffic during FY 22.
2014-15. Egg production in the country has increased
from 78.48 billion in 2014-15 to 122.05 billion Nos. in  The total telephone subscriber base in India
2020-21. Meat production in the country has increased stands at 117 crore (as of November 2022).
from 6.69 million tonnes in 2014-15 to 8.80 million tonnes More than 97 per cent of the total subscribers
in 2020-21. The Fisheries sector plays an important role are connected wirelessly (114.3 crore at the end
in the national economy with an estimated Gross Value of November 2022), and 83.7 crore have
Added (GVA) at Rs. 1,37,716 Crores in 2020-2021. The internet connections as of June 2022.
sector has reached record fish production of 16.25 MMT
in 2021-22 (provisional) and has immense potential to Social Sector
grow further.
The Government's spending on social services1 has
Infrastructure shown a rising trend since FY16 with a focus on many
aspects of the social well-being of citizens of the country.
Infrastructure plays a vital role in national integration The share of expenditure on social services in the total
and regional development. This includes roads, railways, expenditure of the Government has been around 25 per
airports, ports, mass transport, waterways and cent from FY18 to FY20. It increased to 26.6 per cent in
telecommunications etc. Some of the achievements FY23 (BE). The social services expenditure witnessed
under infrastructure development in India are as follows: an increase of 8.4 per cent in FY21 over FY20 and another
 There has been an increase in the construction 31.4 per cent increase in FY22 over FY21, being the
pandemic years, which required enhanced outlay,
of National Highways (NHs)/roads over time,
especially in the health2 and education3 sectors. While
with 10,457 km of roads constructed in FY 22
the social sector expenditure outlay of the Centre and
as compared to 6,061 km in FY1 6. In FY 23
State governments was `12.8 lakh crore in FY19, it has
(until October 2022), 4,060 km of NHs/roads
increased steadily to stand at `21.3 lakh crore in FY23
were constructed. (BE).
 During the current financial year, passenger rail
Labour Market
traffic has seen strong growth with the number
of originating passengers hitting 418.4 crore (up As reported in annual PLFS4, labour markets have
to November 2022). In the case of revenue- recovered beyond pre-Covid levels, in both urban and
earning freight traffic, during FY 22-23 (up to rural areas, with unemployment rate (UR)5 (person age
November 2022), Indian Railways carried 976.8 15 years and above, as per usual status6) falling from
1
Social services include education, sports, art, and culture; medical and public health, family welfare; water supply and
sanitation; housing; urban development; the welfare of SCs, STs and OBCs, labour and labour welfare; social security and
welfare, nutrition, relief on account of natural calamities, etc.
2
Expenditure on ‘Health’ includes expenditure on ‘Medical and Public Health’, ‘Family Welfare’, and ‘Water Supply and
Sanitation.
3
Expenditure on ‘Education’ pertains to expenditure on ‘Education, Sports, Arts, and culture.
4
PLFS Survey year corresponds to July-June, For example, data for 2020-21 refers to the period July 2020-June 2021.
5
UR is defined as the per centage of unemployed persons in the labour force.
6
For a person to be categorised as employed as per usual status (ps+ss), he/she must have pursued and economic activity
for at least 30 days during the 365 days preceding the date of the survey.
xiii
5.8 per cent in 2018-19 to 4.1 per cent in 2021-22, rise in the key labour market indicators in the quarter ending
labour force participation rate (LFPR)7 from 50.2 percent December 2022 both sequentially and over the last year.
in 2018-29 to 52.9 per cent in 2021-22 and rise in worker The labour force participation rate increased to 48.2 per
population ration (WPR)8 from 47.3 per cent in 2018-19 cent in October-December, 2022 from 47.3 per cent a
to 52.9 per cent in 2021-22. Notably, there has been a year ago, while the worker-population ratio strengthened
significant rise in female LFPR from 24.5 per cent in from 43.2 per cent to 44.7 per cent in the same period.
2018-19 to 32.8 percent in 2021-22. The unemployment rate declined from 8.7 per cent in
October-December 2021 to 7.2 per cent in October-
The quarterly PLFS for urban areas (available till December 2022. This trend highlights that labour markets
October-December 2022) shows an improvement in all have recovered from the Covid impact.
Quarterly Employment Indicators for age 15 years & above
Quarters LFPR WPR UR
July-Sept, 2019 47.3 43.4 8.3

Oct-Dec, 2019 47.8 44.1 7.8
Jan-March, 2020 48.1 43.7 9.1
April-June, 2020 45.9 36.4 20.8

July-Sept, 2020 47.2 40.9 13.2
Oct-Dec, 2020 47.3 42.4 10.3
Jan-March, 2021 47.5 43.1 9.3
Apr-Jun 2021 46.8 40.9 12.6
July-Sept, 2021 46.9 42.3 9.8
Oct-Dec 2021 47.3 43.2 8.7
Jan-March, 2022 47.3 43.4 8.2
Apr-Jun 2022 47.5 43.9 7.6
July-Sept 2022 47.9 44.5 7.2
Oct-Dec 2022 48.2 44.7 7.2
Source: Quarterly PLFS reports
As per the Quarterly Employment Survey (QES) by payroll addition, pointing towards improved formalisation
the Labour Bureau, estimated total employment in the as economic activities picked up. The net addition in EPF
fourth round (Q4 FY22) in the nine major sectors stood subscriptions during FY22 was 58.7 per cent higher than
at 3.2 crore in January to March 2022, which is nearly in FY21 and 55.7 per cent higher than that in the pre-
ten lakh higher than the estimated employment from the pandemic year 2019. In FY23, net average monthly
first round of QES (April-June 2021). The increase in subscribers added under. EPFO increased from 9.8 lakh
estimates of workers from Q1FY22 to Q4FY22 was driven in April-December 2021 to 12.7 lakh in April-December
by rising employment in sectors such as IT/BPO (by 17.6 2022.
lakh), health (7.8 lakh), and education (1.7 lakh), due to
rising digitisation and resurgence of services sector World Economic Development
economy.
As per the World Trade Organisation (W TO)
EPFO data indicates a consistent YoY increase in statistics, the global trade volume grew by 4.8 per cent in
7
According to the PLFS, LFPR is the percentage of working – age, population, engaged in work or making tangible efforts to
seek ‘work’or being available for ‘ work’ if it is available. ‘work’ includes self-employment(subsistence, agriculture and collection
of fire-wood, poultry, farming etc. for self-consumption ), regular wage/salaried employment, and casual labour.
8
WPR is defined as the percentage of employed persons in the total population.
xiv
Introduction
H12022, on top of an impressive recovery of 9.7 per cent negative factors appear to outweigh positive trends.
in 2021. The global merchandise trade in value terms International Monetary Fund (IMF) forecasts Global
rose YoY, by 22.2 per cent in 2021, reversing the growth to slow from 6.0 per cent in 2021 to 3.2 per cent
deceleration observed in the previous three years. During in 2022 and 2.7 per cent in 2023. However, there is a
the H1 of 2022, the trade-in value terms grew by 32 per high degree of uncertainty associated with the forecast
cent compared to the corresponding period of 2019.9 due to shifting monetary policy in advanced economies
and the unpredictable nature of the Russia-Ukraine
As regards the future trade projections, according conflict.
to the WTO, world trade is expected to lose momentum
in H22022 and remain subdued in 2023. The organisation India's Merchandise Trade developments during
forecasts global trade to grow in 2023 by just 1 per cent, 2020-21, 2021-22, 2021-22 (April-December) and 2022-
a sharp downward revision from the previous estimate 23 (April-December)
of 3.4 per cent. The United Nations Conference on Trade
and Development (UNCTAD), in its Global Trade update As per the data of Department of Commerce, the
of December 2022 has also noted that the ongoing trade developments in India's merchandise trade during 2020-
slowdown is expected to worsen for 2023 and further 21, 2021-22, 2021-22 (April-December) and 2022-23
that while the outlook for global trade remains uncertain, (April-December) may be seen at Table 1.
Table: India's Merchandise Trade Performance

(Values in US$ billions)
Change Change 2022-23
2021-22 2022-23
2021-22 (Apr- Dec) over
2020-21 2021-22 (Apr- (Apr-
over 2021-22 (Apr-
Dec) Dec) (P)
2020-21 Dec)
Total Exports 291.8 422.0 44.6 305.0 332.8 9.1
Total Imports 394.4 613.1 55.4 441.5 551.7 25.0
POL Imports 82.7 161.8 95.7 112.6 163.9 45.6
Non- POL Imports 311.8 451.2 44.7 328.9 387.8 17.9
Trade Balance -102.6 -191.0 86.2 -136.5 -218.9 60.5
Source: Department of Commerce, Ministry of Commerce and Industry.
Note: P: Provisional.
India's Merchandise Trade developments during Table: Major Items of India's Balance of Payments
2020-21, 2021-22, 2021-22 (April-December) and 2022- (US$ Billion)
23 (April-December) Year / Item (Net) 2021-22 2022-23
As per the data of Department of Commerce, the H1 H1 (P)
developments in India's merchandise trade during 2020- A. Current Account -3.2 -54.6
21, 2021-22, 2021-22 (April-December) and 2022-23 A 1 Merchandise Trade
(April-December) may be seen at Table 1. Balance -75.2 -146.6
It may be seen from table 1 above that the A 1 a Merchandise Exports 202.2 234.8
merchandise trade deficit had increased to US$ 191.0 A 1b Merchandise Imports 277.4 381.4
billion in 2021-22 from US$ 102.6 billion in 2020-21. A 2. Invisibles 72.1 92.0
During 2022-23 (April-December), trade deficit increased A 2.a) Services 51.4 65.5
to US$ 218.9 billion from US$ 136.5 billion in 2021-22
A 2.b) Transfers 38.0 47.6
(April-December).
A 2.c) Income -17.3 -21.1
Developments in Balance of Payments during 2022 B) Capital Account 65.0 29.0
(April-September) B.1) Foreign Investment 24.5 11.9
As per the Press Release of the Reserve Bank of B.1.a) Foreign Direct
India, the developments in India's Balance of Payments Investment 20.3 20.0
for 2021- 22 (April-September) and 2022-23 (April- B.1.b Foreign Portfolio
September) may be seen in Table 2. Investment 4.3 -8.1
B.2) Loans 10.7 9.4
9
WTO’s press release, International Trade Statistics, 5 October 2022.
xv
B.2.a) External Assistance 1.4 2.3 translates the vision of the Hon'ble PM expressed through
B.2.b) Commercial Borrowings the "Panchamrit" at the UNFCCC Conference of Parties
(COP 26) in Glasgow in November 2021. The vision
(MT & LT) 5.0 -3.0 mentions of sustainable lifestyles and climate justice to
B.2.c) Short Term Credit to India 4.3 10.2 protect the poor and vulnerable from the adverse impacts
B.3) Banking Capital 4.4 10.6 of climate change. Aligning with this vision, the share of
B.4) Rupee Debt Service -0.1 -0.1 non-fossil fuel-based capacity in overall capacity has risen
rapidly over time. Including the large hydro, the share of
B.5) Other Capital 25.4 -2.9
non-fossil sources in total installed electricity capacity is
C) Errors and Omissions 1.2 -0.2 estimated to be about 40.4 per cent (on 31.09.2022)
D) Overall Balance 63.1 -25.8 compared to 27.3 per cent in 2014-15. This period has
E) Foreign Exchange Reserves seen a sizeable enhancement in the share of installed
(Increase - /Decrease +) -63.1 25.8 electricity capacity in solar and wind energy from 8.9 per
cent in 2014-15 to 25.1 per cent in 2022-23 (April-Sept).
Source: RBI. P: Provisional.
As India moves toward a carbon-neutral economy,
(A) Current Account mobilization of adequate resources at reasonable cost
India recorded a current account deficit of 3.3 per will be the key determinant. The order of financial flows
cent of GDP in H1:2022-23 on the back of a sharp required for climate action cannot be expected from
increase in the merchandise trade deficit, as compared domestic budgetary resources alone. In line with Article
with 0.2 per cent in H1:2021-22. Net invisible receipts 4, paragraph 19 of Paris Agreement India submitted its
were higher in H1:2022-23 on a y-o-y basis on account Long Term Low Emission Development Strategy (LT-
of higher net receipts of services and private transfers. LEDS) to UNFCCC during COP27 on 14th November
(B) Capital/Financial Account 2022. As per this strategy report the transition to the low-
In H1: FY 23, net capital flows declined to US$ 29.0 carbon development pathway will entail several costs
billion as compared to US$ 65.0 billion in 2021-22 H1. pertaining to the development of new technologies, new
Net FDI inflows at US$ 20.0 billion in H1:2022-23 were infrastructure, and other transaction costs. While several
comparable with US$ 20.3 billion in H1:2021-22. Portfolio estimates exist and vary across studies, overall, these
investment recorded a net outflow of US$ 8.1 billion in are, in all cases, substantial and of the order of tens of
H1:2022-23 as against an inflow of US$ 4.3 billion a year trillions of dollars by 2050. The LT-LEDS is driven by the
ago. In H1:2022-23, there was a depletion of US$ 25.8 vision of LiFE, Lifestyle for the Environment that calls for
billion to the foreign exchange reserves (on a BoP basis). a worldwide paradigm shift from mindless and destructive
consumption to mindful and deliberate utilisation.
Foreign Exchange Reserves
There was a decline in India's foreign exchange Among several issues, climate finance has been
reserves during 2022-23. The forex reserves stood at discussed during COP27 climate summit in Sharm el-
US$ 562.7 billion as at end-December 2022, than US$ Sheikh during November 2022. Officials from CCFU
607.3 billion as at end-March 2022. The import cover of handled the matters related to climate finance during the
India's foreign exchange reserves declined to 9.3 months negotiations. It may be recalled that an adhoc work
at end-December 2022 from 11.8 months at end-March programme from 2022 to 2024 was established in the
2022 as merchandise imports increased with an increase Glasgow Conference with the objective of setting the New
in crude oil prices in the international market and a pick- Collective Quantified Goal goal, prior to 2025.
up in domestic economic activity. Deliberations during COP27 took into account the work
carried out by the ad-hoc work program on the New
Exchange Rate Collective Quantified Goal (NCQG) and the 2022 High-
Indian rupee depreciated by 8.3 per cent (y-o-y Level Ministerial Dialogue on the goal.
basis) against US dollar during April-December 2022.
Further, the INR appreciated against select major COP27 decision acknowledged the need for
currencies barring the US dollar. The average exchange substantive progress in the deliberations on the NCQG
rate of INR against the Pound Sterling appreciated by on climate finance which will take into account the needs
6.27 per cent in April -December 2022 over April - and priorities of developing countries and include inter
December 2021. This rate of appreciation was 12.5 per alia, quantity, quality, scope and access features, as well
cent with respect to the Japanese Yen and 5.9 per cent as sources of funding, of the goal and transparency
against the Euro during April-December 2022 as arrangements. Further, the decision guided parties to
compared to April-December 2021. make submissions on the 2023 work plan on themes to
be discussed during upcoming Technical Expert
Climate Change and Finance Dialogues (TEDs) in 2023 under the ad-hoc work
program.
Performance and achievements under the key
flagship programmes Lastly, it was decided to establish new funding
India is deeply committed to climate action. arrangements for assisting developing countries that are
Demonstrating higher ambition in its climate action, the particularly vulnerable to the adverse effects of climate
Government of India updated its existing NDC on August change, in responding to loss and damage, including with
26, 2022. The updated NDC with enhanced targets a focus on addressing loss and damage by providing and
xvi
Introduction
assisting in mobilizing new and additional resources. in 2020-21 to 5.5 per cent in 2021-22 and stood at 6.8
Establish a transitional committee on the per cent in 2022-23(April-December). In 2022-23(April-
operationalization of the new funding arrangements for December), it has climbed sharply due to high food
responding to loss and damage and the fund. inflation. CPI-C inflation declined significantly from 7.8
per cent in April 2022 to 5.7 per cent in December, 2022.
e-Governance Activities
Food inflation based on Consumer Food Price Index
For matters related to climate change finance, the (CFPI) declined from 8.3 per cent in April 2022 to 4.2 per
e-file platform is used in almost all cases since 2018. cent in December 2022. Inflation measured in terms of
Old physical files also been converted to electronic form. Wholesale Price Index (WPI) increased from 1.3 per cent
in 2022-21 to 13 per cent in 2021-22. WPI inflation
Prices
averaged 11.5 per cent during 2022-23(April-December),
Retail inflation, measured by Consumer Price Index- declined from 15.4 per cent in April 2022 to 5.0 per cent
Combined (CPI-C), showed a decline from 6.2 per cent in December 2022 (Table 1).
Table 1: Inflation in CPI and WPI (in per cent)
CPI-C WPI
Headline Inflation Food (CFPI) Headline Food

Inflation Inflation Inflation
Base Year 2012=100 2011-12=100
Weight 100.0 39.1 100.0 24.4
2017-18 3.6 1.8 3.0 1.9
2018-19 3.4 0.1 4.3 0.6
2019-20 4.8 6.7 1.7 6.9
2020-21 6.2 7.7 1.3 4.0
2021-22 5.5 3.8 13.0 6.8
2021-22(Apr-Dec) 5.2 2.9 12.7 5.9
2022-23(Apr-Dec) 6.8 7.0 11.5 7.5
Apr-22 7.8 8.3 15.4 9.1
May-22 7.0 8.0 16.6 10.6
Jun-22 7.0 7.8 16.2 11.8
Jul-22 6.7 6.7 14.1 9.3
Aug-22 7.0 7.6 12.5 10.1
Sep-22 7.4 8.6 10.6 8.0
Oct-22 6.8 6.0 8.7 6.6
Nov-22 5.9 4.7 5.9 2.2
Dec-22 5.7 4.2 5.0 0.7
Source: NSO and DPIIT.

Notes: Notes: WPI inflation for December 2022 and is provisional.
xvii
2. Department of Expenditure 5. Department of Financial Services

The Department of Expenditure is the nodal As per Allocation of Business Rules (AOBR), the
Department for overseeing the public financial functions of the Department of Financial Services (DFS)
management system in the Central Government and include legislative and administrative matters pertaining
matters connected with state finances. It is responsible to financial services sectors of Banking, Insurance, and
for the implementation of the recommendations of the Pension. These include the administration of various acts
Finance Commission and Central Pay Commission, related to financial services sector and monitoring the
monitoring of audit comments/observations, preparation performance of public sector banks, insurance companies
of Central Government Accounts. It further assists Central and other financial institutions in banking insurance.
Ministries/Departments in controlling the costs and prices
All matters pertaining to three financial sector
of public services, reviewing system and procedure to
regulators, viz., Reserve Bank of India (RBI), Insurance
optimize outputs and outcomes of public expenditure. The
Regulatory and Development Authority of India (IRDAI)
principal activities of the Department include overseeing
and Pension Fund Regulatory and Development Authority
the expenditure management in the Central Ministries/
(PFRDA) are processed through this Department. It also
Departments through the interface with the Financial
functions as administrative department for Debt Recovery
Advisors and the administration of the Financial Rules/
Tribunals (DRT) / Debt Recovery Appellate Tribunals
Regulations/Orders, pre-sanction appraisal of major
(DRAT).
schemes/projects, handling bulk of the central budgetary
resources transferred to State. The Department is responsible for appointment
of key functionaries of the financial services sectorsuch
The business allocated to the Department of
as Governor / Deputy Governor of Reserve Bank of India,
Expenditure is carried out through its Personnel &
Chairman / Members of IRDAI and PFRDA, Chairman /
Establishment Division, Public Finance-State and Public
Managing Director and Chief Executive Officers (MD &
Finance Central Divisions, Office of Chief Advisor Cost,
CEOs)/Executive Directors (EDs)/ Non-official Directorsto
Office of Controller General of Accounts and Central
the Board of Public Sector banks/ insurance companies/
Pension Accounting Office. The Department has under
other financial institutions.
its administrative control the Arun Jaitley National Institute
of Financial Management (AJNIFM), Faridabad, which The Department of Financial Services (DFS)
is an autonomous body. oversees several key programs / initiatives of the
Government concerning the Banking Sector, the
3. Department of Revenue Insurance Sector and the Pension Sector in India. The
key flagship schemes being currently managed by the
The Department of Revenue exercises control in Department include the Financial Inclusion scheme of
respect of revenue matters relating to Direct and Indirect Pradhan Mantri Jan Dhan Yojana (PMJDY), the social
Union taxes. The Department is also entrusted with the security schemes, namely Pradhan Mantri Jeevan Jyoti
administration and enforcement of regulatory measures Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima
provided in the enactments concerning Goods and Yojana (PMSBY), Atal Pension Yojana (APY) & Pradhan
Services Tax (GST), Central Sales tax, Stamp duties and Mantri Vaya Vandana Yojana (PMVVY) and the credit
other relevant fiscal statutes. Control over production and schemes namely Pradhan Mantri Mudra Yojana (PMMY)
disposal of opium and its products is vested in this & Stand Up India (SUI).
Department. Apart from this, Directorate of Enforcement,
FIU-IND, GSTN, CBN, CCF, CEIB, NIPFP are under the The information on number of Banks,
administrative control of Department of Revenue. Insurance Companies and Financial Institutions are
as under.
4. Department of Investment and Scheduled Commercial Banks (as on 31.12.2022)
Public Asset Management Public Sector Banks 12
The Department of Disinvestment was set up as a Private Sector Banks 21
separate Department on 10th December, 1999 and was Small Finance Banks 12
later renamed as Ministry of Disinvestment from 6th
September, 2001. From 27th May, 2004, the Department Payment Banks 3
of Disinvestment is one of the Departments under the Regional Rural Banks 43
Ministry of Finance.
Foreign Banks 46
The Department of Disinvestment has been re-
TOTAL 137
named as Department of Investment and Public Asset
Management (DIPAM) with effect from 14th April, 2016. Source : RBI Website
xviii
Introduction
2. Functions:
Insurance Companies in India
(As on 31.03.2022) The following subjects are being dealt by DPE:
2.1 Coordination of matters of general policy
Private PublicTotal No. of
affecting all Public Sector Enterprises.
Sector Sector Insurers
(Public & 2.2 Composition of Boards of CPSEs.
Private) 2.3 Categorization of Central Public Sector
Enterprises including conferring 'Ratna' status.
Life Insurers 23 1 24
2.4 Matters relating to Permanent Machinery of
General insurers 20 6 26 Arbitration for the Public Sector Enterprises.
2.5 Wage policy & manpower rationalization of
Stand-alone Health 5 0 5
CPSEs.
Insurers
2.6 Evaluation and monitoring the performance of
Reinsurers 11 1 12 Public Sector Enterprises, including the
TOTAL 59 8 67 Memorandum of Understanding mechanism.
2.7 Review of capital projects and expenditure in
Central Public Sector Enterprises.
Financial Institutions (as on 31.12.2022)
2.8 Survey of Public Enterprises.
1 National Bank for Agriculture and Rural
Development (NABARD) 2.9 Counselling, training and rehabilitation of
employees in Central Public Sector
2 India Infrastructure Finance Company Ltd.
Undertakings under Voluntary Retirement
(IIFCL)
Scheme.
3 Export-Import Bank of India (EXIM)
2.10 Rendering advice relating to revival,
4 Industrial Finance Corporation of India (IFCI) restructuring or closure of Public Sector
5 Small Industrial Development Bank of India Enterprises including the mechanisms therefor.
(SIDBI) 2.11 Matters relating to Standing Conference of
6 National Housing Bank (NHB) Public Enterprises.
7 National Bank for Financing Infrastructure 2.12 Matters relating to International Center for
and Development (NaBFID) Public Enterprises.
2.13 Identification of CPSEs under Non-Strategic
sector for closure/ privatization and driving the
6. Department of Public Enterprises closure process.
1. Introduction : - 2.14 Monetization of Non-Core assets of CPSEs and
other Government organizations.
In their 52nd Report, the Estimates Committee of
3rd Lok Sabha (1962-67) stressed the need for setting 3. Organizational Structure: -
up a centralized coordinating unit, which could also Department of Public Enterprises is headed by
make continuous appraisal of the performance of public Secretary to the Government of India who is assisted
enterprises. This led to the setting up of the Bureau of by an establishment with an overall sanctioned strength
Public Enterprises (BPE) in 1965 in the Ministry of of 116 officers/personnel. The organizational structure
Finance. Subsequently, as a result of the reorganization of DPE is at Annexure-1. The Department has the
of the Ministries/Departments of the Union Government following constituent Divisions:
in September, 1985, BPE was made part of the Ministry
of Industry. In May, 1990, BPE was made a full-fledged 3.1 Policy Division-I
Department known as the Department of Public Policy Division-I deals with the issues related to
Enterprises (DPE). Before coming under the Ministry management of CPSEs including the Organizational
of Finance vide Cabinet Secretariat Notification dated Structure, Composition of Boards and Categorization
6th July, 2021, Department of Public Enterprises was of CPSEs to appropriate Schedule and conferring
part of the Ministry of Heavy Industries & Public 'Ratna Status' as per the Ratna scheme of Government
Enterprises. of India. It also issues guidelines for below Board level
xix
employees relating to personnel policies, service 3.5 Survey Division

matters of CPSEs like reservation, voluntary retirement
Survey Division collates information on important
etc. The Division also handles matters related to
physical and financial attributes of all CPSEs into a
commercial disputes of CPSEs.
comprehensive annual report "Public Enterprises
3.2 Policy Division-II Survey" and places the same in both the Houses of
Parliament every year.
Policy Division-II looks after all procurement
r elated m atters inc luding MSMEs and G EM The Survey division also facilitates the laying of
pr oc urem ent. T he Divis ion als o handles CSR the Reports of the Comptroller and Auditor General
(Corporate Social Responsibility) related matters and (C&AG) of India (Commercial) in the Parliament. It also
implements the CRR (Counselling, Retraining and f ollows up with the adm inis trative Ministries /
Redeployment) and RDC (Research, Development and Departments for submission of Action Taken Notes
Consultancies) schemes of the Department. (ATN) on Audit Paras as and when requested by C&AG.
The compilation of DPE guidelines is also part of
3.3 Wage Cell Survey Division.
Wage Cell deals with the policy relating to pay 3.6 Disinvestment Division
revision of CPSE executives at Board as well as below
Board level and non-unionized supervisors, and issues Disinves tm ent Divis ion is res pons ible f or the
broad guidelines for wage settlement negotiations in implementation of new PSE Policy in Non-Strategic
case of workmen in CPSEs. Wage Cell also issues Sector for identification of CPSEs for closure or
DA orders for both of IDA employees and CDA privatisation in Non-Strategic Sector driving the closure
employees of the CPSEs. process. Division also handles monetization of Non-
Core ass ets of CPSEs and other G overnm ent
3.4 MoU Division organizations.
MoU Division deals with the implementation of 3.7 Administration and Coordination Division
Memorandum of Understanding (MoU) framework for
T he Division handles all adm inis trative and
the purpose of performance evaluation of CPSEs. The
coordination matters of DPE relating to personnel
division also monitors and compiles the information on
management, maintenance of personnel records
CAPEX incurred by select CPSEs and their compliance
including leave, salary, service book and Parliamentary
on Corporate Governance parameters.
matters.
xx
Chapter - I Department of Economic Affairs I

1. Economic Division inaugural lecture was delivered by the Hon’ble Senior
The Economic Division tenders expert advice to Minister of Singapore, Shri Tharman Shanmugaratnam
the Government on important issues of economic policy. on 8th July, 2022.
The Division monitors economic developments-domestic The work of the Economic Division is organized under
and external and advises on policy measures relating to the following Units:
macro management including agriculture, industry and  Macro, Industry, Services and Financial
infrastructure sectors of the economy. As part of its intermediation and Financial Markets
regular activities, the Economic Division brings out the
Economic Survey annually, which is laid before both  Agriculture and Food Management
Houses of Parliament one day before the presentation of  Infrastructure
the Union Budget.  Climate Change Finance and Agriculture
The Economic Survey provides a comprehensive  Social Sector
overview of important developments in the economy. It
 External Sector
also analyses recent economic trends and provides an
in-depth appraisal of policies. Over the years, the  Prices
Economic Surv ey has acquired the status of an  IES Cadre Unit
authoritative source and a useful compendium of the
 Coordination
annual performance of the Indian economy. Further, the
Fiscal Responsibility and Budget Management (FRBM) Macro Unit
Act, 2003 requires the Ministry of Finance to review every The Macro unit, Economic Div ision is primarily
quarter the trends in Receipts and Expenditure in relation responsi ble f or: (a) Monitoring macroeconomic
to the Budget and lay it before both the Houses of parameters, such as, GDP, savings and investment and
Parliament. In addition, at the end of first quarter and analysis of macroeconomic trends; (b) Preparation of
third quarter, a Macro-Economic backdrop statement is Economic Survey (c) Preparation of Monthly Economic
prepared and provided to the Budget Division for Report; (d) Country coordination for Special Data
incorporating in the review of quarterly receipts and Dissemination Standard (SDDS); (e) Updating of the
expenditure. National Summary Data Page of the economy for web-
The Division also brings out every month an post in the Ministry of Finance’s website; (f) Annual
updating of metadata in SDDS; (g) Preparation of State
abstract entitled “Monthly Economic Report” which gives
of Economy brief, giving an overview of the current
the latest available data on the key sectors of the
economic situation; (h) Preparation of briefs, material/
economy. The Division prepares, from time to time briefs
speeches for G-20, World Bank, IMF and other meetings;
on the performance of the infrastructure sector, agriculture
(i) Framing replies of parliament questions.
and industrial production, trends in tax collection, balance
of payments and monetary situation. It also monitors the Budget Related Work: (a) Preparation of Macro-Economic
price situation on a weekly basis. In addition, the Division Framework Statement for the Union Budget every year;
undertakes short term forecasting of key economic (b) Macroeconomic backdrop for the statement on half
variables. yearly review of the trends in receipts and expenditure in
relation to the budget at the end of first half and second
As part of its advisory functions, the Economic
half of financial year; (c) Projection of GDP for giving to
Division prepares analytical notes and background papers
the Budget Division before the preparation of budget
on important policy issues and provides briefs for
meetings of the Consultative Committee and Working Public Finance Unit
Groups set up by the Government. The officers of the Public finance unit is responsible for: (a) Economic and
Economic Division participate in consultations with various Functional Classification of Central Government Budget;
missions from international institutions with various (b) Statistical Album on Public Finance, including
missions f rom international institutions such as budgetary transactions of Centre, State and Union
International Monetary Fund (IMF), the World Bank and Territories; (c) Monitoring of Central fiscal parameters,
the World Trade Organization (WTO) etc. The Division such as, fiscal deficit, revenue deficit, aggregate
works in close cooperation with the Reserve Bank of India, expenditure; (d) Policies relating to central plan outlays,
the NITI Aayog, the Central Statistical Organisation, the resources and expenditures; (e) Review of Fiscal position
Ministry of Commerce and Industry and the Economic and analysis of fiscal issues; (f) Analysis relating to tax
and Statistical Wings of their Ministries. The Division measures, direct and indirect tax proposals/ reforms; (g)
also instituted an annual Arun Jaitley Memoral Lecture Providing inputs towards Macro-Economic Framework
(AJML) as a tribute to the former Finance Minister. The Statement for the Union Budget every year.
1
Agriculture and Food Management Unit unions, civil society organizations, health, welfare and
Agriculture and Food Management unit is responsible for: women’s organizations/ experts etc.; (h) Handling VIP/
(a) Providing policy advice on issues and matters related Parliament/Other references related to the themes in
to Agriculture and Food Management; (b) Examining/ social sector; (i) Occasional review/reports on specific
Appraising Cabinet/ CCEA/ CoS/ EFC and other policy issues as and when required; (j) Organizing workshops/
notes on fixing Minimum Support Prices (MSPs) for major inter-departmental meetings on specific themes.
crops/crop insurance policy/ other agricultural policies External Sector Unit
including those related to change duty structure; (c) (A) Trade & Balance of Payments
PreBudget meetings with stakeholders in farm sector;
(d) Briefs for and appearances before the Parliamentary (a) Monitoring and analyzing the developments in India’s
Standing Committee on Agriculture related issues; (e) Trade and Balance of Payments (BoP) and providing
Participation/Membership of Committees on related policy inputs/ brief s/ comments, etc., relating to
subjects like Private Entrepreneurs Guarantee (PEG) same.(b)Analysis of recent trends and developments in
schemes of Food Corporation of India (FCI); (f) Analyzing India’s trade and BoP which culminates into the External
production and area sown in Rabi and Kharif crops; (g) Sector Chapter published in Economic Surv ey.
Occasional review/ reports on specific issues as and when (c)Preparation of a monthly trade note based on the press
required like “Incentivizing Pulses Production Through release of the Department of Commerce for the perusal
Minimum Support Price (MSP) and Related Policies”; (h) of the Secretary, DEA and Chief Economic Adviser (CEA).
Periodical monitoring of progress of Area sown/ Monsoon/ (d)Matters relating to Short-term Balance of Payments
Rainfall distribution using inputs of the Crop Weather (STBoP) Monitoring Group. (e)Economic Activity tracker:
Watch Group (CWWG); (i)Analytical issues related to Data maintenance and updation of India’s key trade and
Public Distribution System (PDS), buffer stock norms and BoP indicators on a weekly/monthly/ quarterly/annual
food security and MSP analysis like proportion of sales basis as per availability of data. (f)Policy inputs f or Hon’ble
below MSP in several markets during the procurement FM, MOS, Secretary on: (i) Parliamentary debates and
season; (j) Analysis of issues related to Allied sectors questions related to trade and BoP (ii) Speeches related
like dairy sector, fisheries, forestry and food processing; to important economic events(iii)Leading economic
(k) Preparation of the Chapter on ‘Agriculture and Food discussions at bilateral and multilateral forums such as
Management’ for Annual Economic Survey; (l) Handling G-20, World Bank, IMF, OECD, concerning India’s trade
VIP/ Parliament/ Other references and Private Member & BoP position.
Bills related to agriculture and food management; (m)
Off er comments on Studies/ MoUs/ International (B) External Debt Management Unit
Agreements/ Income tax exemptions to International (a) Publication of an Annual Status Report on India’
Organizations deal ing with agriculture & f ood External Debt, based on inputs from relevant stakeholders
management. like Reserve Bank of India (RBI) Aid, Accounts & Audit
Industry and Infrastructure Unit Division, Ministry of Defence, SEBI, etc. (b)Publication
Industry Unit advises the Government on policy issues of Quarterly Report on India’s External Debt for the two
relating to Industry at both macro and sectoral levels. quarters ending September and December, through
The unit regularly monitors and reviews industrial growth collection and compilation of data from different
and policies related to public sector. The Unit is also stakeholders. The remaining two quarters’ reports are
responsible for monitoring trends in production of core published by RBI. (c)Collection, compilation and provision
infrastructure industries. It undertakes analysis of of inputs on India’s External Debt data on quarterly basis
developments in infrastructure sector, renders advice on to World Bank for its centralized database called,
infrastructure sector policy issues ‘Quarterly External Debt Statistics (QEDS)’, in compliance
with IMF’s Special Data Dissemination Standard
Social Sector
(SDDS)requirements. (d) Dissemination of India’s
The unit is responsible for: (a) Providing policy advice on defence debt data on a quarterly basis to all relevant
issues related to social infrastructure, employment and stakeholders.
human development; (b) Analysis of labour issues,
employment trends, health, education and other topics (e) Monitoring and analyzing the developments in India’s
concerning social sector; (c) Examining/ Evaluating External debt and providing policy inputs/ briefs/
results of employment and unemployment surveys; (d) comments, etc., relating to same. (f) Analysis of recent
Examine/ Appraise Cabinet Notes/CoS/EFC/ SFC/PIB/ trends and developments in India’s external debt and
CEE notes on labour and skill development including incorporate a section on the same in the External Sector
various issues related to health, education, social Chapter published in Economic Survey. (g)Issues relating
empowerment, gender issues, rural development etc. to foreign exchange reserves and exchange rate (h)
those received from the other Divisions in DEA; (e) Policy inputs for Hon’ble FM, MOS, Secretary on: (i)
Participation/membership of Standing Committee on Parliamentary debates and questions related to external
Labour Force Statistics; (f) Preparation of chapter on debt (ii) Leading economic discussions at bilateral and
‘Social Infrastructure and Employment’ for Annual multilateral forums such as G-20, World Bank, IMF,
Economic Survey; (g) Pre-budget meetings with labour OECD, concerning India’s external debt sustainability.
2
Department of Economic Affairs I
Services Unit to developing countries, innovative and affordable

The unit is responsible for: (a) Preparing the Chapter on financing options for climate transition by preparing
Services Sector for the Economic Survey; (b) Monitoring positions papers and analysis of technical issues and
the performance of services trade; (c) Parliament Matters; policy options. The Unit is also responsible for preparing
(e) Comments on Notes related to trade in services, WTO and finalizing the chapter on climate change for the
negotiations in Services, etc. Economic Survey.
Prices Unit The unit is actively engaged in the sustainable finance
working group of the finance track in G20. One of the
The unit is responsible for: (a) Inflation monitoring based flagship priorities for the Indian presidency under the
on the following Price Indices: (i) Wholesale Price Index finance track is climate finance, work on which is being
(WPI), base: 2011-12=100; (ii) Consumer Price Index carried out in CCFU. CCFU’s key responsibilities in G20
(CPI)- Rural, Urban, Combined, base: 2012=100; (iii) involve engagement with G20 member countries, invitees,
Consumer Price Index for Industrial workers (CPI-IW), int ernat ional organisat ions, and domestic and
base: 2016=100; (iv ) Consumer Price Index for international knowledge partners. A presidency input
Agricultural Labourers (CPI-AL), based on 1986-87=100; paper on the mechanisms for mobilisation of timely and
(v) Consumer Price Index for Rural Labourers (CPI-RL), adequate resources for climate finance with contributions
based on 1986-87=100. (b) Price/inflation related issues: from knowledge partners was prepared and circulated in
(i) issues related to domestic and international price G20 by this unit.
behavior; (ii) issues related to seasonal price behavior;
(iii) issues related to Price Policy and inf lation IES Cadre Unit
management; (iv) Preparation of Monthly Inflation IES Cadre Unit The unit is responsible for: (a) Career
Reports; (v) Drafting chapter on prices for pre-budget Management and Placement of Officers; (b) Direct
Economic Survey. (c) Committees/ Working groups: (i) Recruitment into IES through Examination conducted by
Participation in the various committees on price indices UPSC; (c) Examination Rules & Syllabus for IES
(CPI, WPI and RESIDEX); (ii) Participation in Macro Examination; (d) Promotion of Feeder Post Holder to
financial monitoring group constituted under DEA; (iii) Junior Time Scale (Entry level) of IES; (e) IES (service)
Participation in the meeting of Committee of Secretaries Rules and policy Matters pertaining to IES; (f) Promotions/
on Review of prices of essential commodities. non-functional Up-gradations to various levels by
Money and Banking Unit conduction/ arranging meetings of the Departmental
The unit is responsible for: (a) Monitoring of money Promotion Committee; (g) Cadre Clearance f or
market trends and developments in monetary policy; (b) Deputation, study leave and other kinds of leave; (h)
Monitoring of banking policy and aggregate trends in Empanelment of officers at various levels; (i) Seniority
credit flows; (c) Fortnightly analysis of the monetary List/ Civil list of IES Officers; (~) Seniority of Officers in
parameters; (d) Monitoring yields on G-Sec/ Treasury the Feeder Grade and Roster Management of Induction
Bills; (e) Monitoring behavior of Call Money Rates and Quota; (k) Training Programmes for In-Services officers
LAF operations; (f) Periodical updates on monetary policy and Probationers based on training needs assessment
and Quarterly Reviews of RBI. for capacity building of officers; (l) Cadre Review and
restructuring of IES; (m) Maintenance of APARs of IES
Climate Change Finance Unit
officers; (n) Budget of IES Cadre, Annual Accounts etc.;
The Climate Change Finance Unit serves as the nodal (o) Court Cases, Vigilance Cases and Disciplinary
point on all financing matters related to climate change Matters; (p) Maintenance of IES website.
in the Ministry of Finance and conveying inputs to Ministry
of Environment Forest & Climate Change. The unit is Coordination Unit
extensively engaged on climate finance issue in meetings The Unit is responsible for (a) Internal Administration and
under G20, especially in Finance Track, and other Coordination in Economic Division; (b) Organizing
environment related meetings of various national and Finance Minister’s Pre-Budget meetings with various
international fora. It helps shape the firming up of India’s stake holders; (c) Nomination of officers of Economic
stand on financing issues related to climate change and Division for Foreign Deputation to OECD meeting and
sustainable development in fora like United Nations other meetings and workshops;(d) Coordination with all
Framework Convention on Climate Change (UNFCCC), Units of Economic Division for publishing Economic
etc. It is vested with the task of preparing submissions Survey and laying them before Parliament; (e) Organizing
on behalf of India as well as assessing submissions of Arun Jaitley Memorial Lecture, the annual International
other member countries in these fora. The Unit frames Conference on thematic issues; (f) Coordination of
inputs on an on-going basis on issues related to National Parliament work, RTI matters, VIP references, public
Action Plan on Climate Change and on other emerging grievances etc;(g) All administrative matters of Economic
issues like definition of climate finance, new collective Division viz. transfer/posting of Officers of Economic
quantified goal on mobilization of finance from developed Division within Economic Division.
3
2. Budget Division by the Parliament. The Second Batch of Supplementary

Demands for Grants 2022-23 will be laid in Parliament in
2.1 RESPONSIBILITIES the month of March, 2023.
2.1.1 Budget Division is responsible for the preparation 2.2.3 During this year (till February, 2023), 8 new
of and submission to the Parliament, the Annual Budget Guarantee proposals have been approved for a total
as well as Supplementary and Excess Demands for amount of Rs. 66643.18 crore.
Grants of the Central Government and of States under
2.3 STATES SECTION:
President’s Rule. The Division also deals with issues
relating to Public Debt, Market Loans of the Central 2.3.1 States Section is assigned the work relating to
Government and guarantees given by the Government the following:
of India and the administration of Contingency Fund of  Release of States’ share of Central Taxes and
India. Processing of proposals from other Ministries/ duties to State Governments as per approved
Departments for re-appropriation of savings in a Grant recommendations of the Finance Commission.
where prior approval of the Ministry of Finance is required
 Work relating to the Constitution of the Finance
is also handled by Budget Division. The Division also
Commission and processing of its reports.
handles the issues pertaining to National Savings Institute
(NSI), Small Savings Schemes and National Defence  Matters relating to financial provisions of various
Fund. The work relating to Treasurer, Charitable States’ Re-organisation Acts monitoring and
Endowment is also assigned to the Budget Division. review of repayment of Central loans and
payment of interest by State Governments.
2.1.2 Budget Division is assigned the matters relating
to Duties, Powers and Conditions of Service of the  Processing and presentation of Budget and
Comptroller and Auditor General of India including Supplementary Demands f or G rants to
submission of the Reports of the Comptroller and Auditor Parliament in respect of States under President’s
General of India relating to the accounts of the Union to Rule.
the President f or being laid bef ore Parliament, 2.4 PLANNING AND ALLOCATION SECTION:
ent rustm ent/re-ent rustm ent of audit of v ari ous
2.4.1 The Planning & Allocation Section is responsible
autonomous bodies/organizations to the C&AG of India,
for finalization of Ministry/Department wise Gross
etc.
Budgetary Allocation, finalization of estimates of Extra-
2.1.3 The Budget Div isi on i s responsi ble f or budgetary Resources (EBRs) and their monitoring,
administration of “Fiscal Responsibility and Budget reporting etc. The details of EBRs raised are provided in
Management Act, 2003” which was brought into force Statement 27 of Expenditure Profile of Union Budget.
w.e.f. 5th July, 2004. Statements of Fiscal Policy, half
2.4.2 This Section also handles issues concerning
yearly Reviews including Mid-term Review and disclosure
statements have been presented in Parliament in earmarking of funds for welfare of Scheduled Castes &
accordance with the requirements of the FRBM Act. Scheduled Tribes by obligatory Ministries/Departments
as prescribed in NITI Aayog’s guidelines. The detail of
2.1.4 The work relating to form of Accounts kept under fund allocation for SCs/STs by the obligatory Ministries/
Article 150 of the Constitution of India is also handled in Departments is provided in Statement No.10A & 10B of
this Division. Advice on the classification of Government the Expenditure Profile of Union Budget.
receipts and expenditure and on the accounting
procedure drawn up for implementation of new schemes 2.5 NATIONAL SAVINGS SECTION:
of the Government is also rendered by the Division. 2.5.1. Small Savings Schemes:
2.1.5 Union Budget 2023-24 was also delivered in Following Small Savings Schemes are currently
paperless form as was done during 2022-23. administered by Budget Division in Department of
2.2 SUPPLEMENTARY DEMANDS SECTION: Economic Affairs:
2.2.1 Supplementary Demands Section is responsible  Post Office Savings Account
for coordination and presentation of Supplementary  National Savings Time Deposits (1,2,3 & 5 years)
Demands for Grants, Demands for Excess Grants and  National Savings Recurring Deposits
the connected Appropriation Bills and parliamentary work
in this regard. Other activities of the Section relate to  National Savings Monthly Income Scheme
administration of the Contingency Fund of India Act, 1950  Senior Citizens Savings Scheme
overall policy related to Central Government Guarantees  National Savings Certificate (VIII-Issue)
and Statement of Annuity and making necessary
 Public Provident Fund
disclosures thereof in the Budget Documents.
 Kisan Vikas Patra
2.2.2 During the Financial year 2022-23, the First Batch
of Supplementary Demands for Grants 2022-23 and  Sukanya Samriddhi Account.
connected Appropriation Bill was presented and passed  PM CARES for Children Scheme, 2021
4
2.5.2. Small Savings Collections: the Fourteenth Finance Commission, it has been decided
The gross deposits under various small savings to advance NSSF loans only to the willing States w.e.f.
schemes during 2022-23 are estimated (RE) at Rs. 01.04.2016. Accordingly, only three States, namely, Delhi,
11,87,463.96 crore as against the deposit of Rs. Kerala and Madhya Pradesh have opted for the NSSF
10,49,795.48 crore during 2021-22(provisional). An loan. Besides, it has also been decided to invest NSSF
amount of Rs.14,635.65 crore (RE) is estimated to be corpus in various Public Agencies (National Highways
transferred, as share of net small savings collections to Authority of India, Food Corporation of India, Air India
Kerala, Madhya Pradesh and UT of Delhi during the etc.). During the current financial year, an amount of
current fiscal, as against the sum of Rs. 28,690.18 crore Rs.350 crore is estimated to be extended in these
transferred to these states and UTs (with Legislature) agencies.
during 2021-22.
2.5.4. Interest Rates on Small Savings Instruments
2.5.3. National Small Savings Fund:
Interest rates on Small Savings Schemes are
In order to account f or all the monetary decided/ notified by Government every quarter of the
transactions under small savings schemes of the Central Financial Year.
Government under one umbrella, the “National Small
Savings Fund” (NSSF) was set up in the Public Account The rate of interest on Small Savings Schemes is decided
of India w.e.f. 1st April, 1999. The net accretions under in view of the recommendations of Shyamala Gopinath
the small savings schemes were being invested in the Committee. The committee has recommended to align
Special Securities of State Governments and U.T.s (with the rate of interest on Small Savings Schemes with the
legislature). However, based on the recommendation of G-Sec rates of similar maturity.
The rate of interest on various small savings schemes for the FY 2022-23 is given below:
Rate of Interest in FY 2022-23 (in %)

Instrument Quarter I Quarter II Quarter III Quarter IV
Savings Deposit 4.0 4.0 4.0 4.0

1 Year Time Deposit 5.5 5.5 5.5 6.6
5Year Time Deposit 6.7 6.7 6.7 7.0
5 Year Recurring Deposit 5.8 5.8 5.8 5.8
5 Year SCSS 7.4 7.4 7.6 8.0
5 Year MIS 6.6 6.6 6.7 7.1
5 Year NSC 6.8 6.8 6.8 7.0
PPF 7.1 7.1 7.1 7.1
Sukanya Samriddhi Account 7.6 7.6 7.6 7.6
Kisan Vikas Patra 6.9 (will mature 6.9 (will mature 7.0 (will mature 7.2 (will mature
in 124 months) in 124 months) in 123 months) in 120 months)
2.6 WAYS AND MEANS SECTION 2.6.1.2. During the financial year 2022-23, Government
has planned to borrow Rs.14,21,000 crore through dated
2.6.1 Government Borrowings
securities, out of which till Feb 13, 2023 borrowing to the
2.6.1.1 The Ways & Means Section is responsible for extent of Rs.13,67,000 crore (gross) has been
implementation of the Government Market borrowing accomplished. The borrowing also includes Sovereign
(including T-Bills) programme in coordination / Green Bond issuance of Rs. 16,000 crore.
consultation with the Reserve Bank of India and PDMC.
2.6.1.3. The weighted average yield and maturity of
It administers the two appropriations namely Interest dated securities issued during 2022-23 (April 01, 2022
Payments and Repayment of Debt. It also handles the to Feb 13, 2023) were 7.32 % and 15.99 years
responsibilities related to cash management, Sovereign respectively (including Sovereign Green Bonds), as
Gold Bond Scheme, issuance of Sovereign Green compared to 6.28 % and 16.98 years in the
Bonds etc. corresponding period of the financial year 2021-22.
5
2.6.1.4. The Government debt is held predominantly (as % of GDP)

(approx. 95%) in domestic currency. Outstanding
external debt is financed by multilateral and bilateral Fiscal Indicator/ 2021-22 2022-23 2023-24
Year (RE) (BE)
agencies at concessional rates. Internal debt consists
largely of marketable and non-marketable securities. A Fiscal Deficit 6.7 6.4 5.9
low roll-over risk is signified through debt maturing Central Government
within the next 5 years. This accounted for about 30 debt* 58.8 57.0 57.2
per cent of total outstanding stock of G-Secs at end- Note:
Dec, 2022. Detailed analysis of existing debt and (i) GDP for the FY 2021-22 is 236.65 Lakh crore and for
liabilities of the Government is brought out in the annual FY 2022-23 is 273.08 Lakh crore issued by M/o
debt papers (available on https://dea.gov.in/public-debt- Statistics & Programme Implementation on
management). 06.01.2023.
2.7 FISCAL RESPONSIBILITY AND BUDGET (ii) The GDP for BE 2023-24 has been projected at
301.75 lakh crore assuming 10.5% growth over the
MANAGEMENT SECTION
estimated GDP of 273.08 Lakh crore for 2022-23
2.7.1 Administration of the Fiscal Responsibility and (RE).
Budget Management Act (FRBM), 2003 and the Rules (iii) GDP is the Gross Domestic Product at current market
framed there under is the prime function of the FRBM price.
Section. The FRBM Act, 2003 prov ide f or the * Central Govt. debt include external public debt valued
responsibility of the Central Government to ensure inter- at current exchange rates, total outstanding liabilities
generational equity in fiscal management and long-term on Public Account including investment in Special
macro-economic stability by removing fiscal impediments Securities of States under NSSF and EBR liabilities etc.
in the effective conduct of monetary policy and prudential 2.8 PUBLIC DEPOSITS SECTION
debt management consistent with fiscal sustainability
2.8.1 Public Deposits Section, Budget Division is also
through limits on the Central Government borrowings,
responsible for fixation of rate of interest on the following:
debt and deficits, greater transparency in fiscal operations
of the Central Government and conducting fiscal policy a) House Building Advance (HBA)
in a medium-term framework and for matters connected b) General Provident Fund (GPF) and other
therewith or incidental thereto. similar Funds
2.7.2 During the period from January 1, 2022 to c) Special Deposit Scheme (SDS)
December 31, 2022 in compliance with the relevant d) Employees Provident Fund (EPF)
provisions of the FRBM Act and Rules framed thereunder, e) Seamen’s Provident Fund (SPF)
the following documents were prepared and laid before f) Coal Mines Provident Fund (CMPF)
both Houses of Parliament: g) National Defence Fund(NDF)
A) Statements of fiscal policy presented with Budget h) Computer Advance
2022-23 2.8.2 Apart from the above, the responsibility of
a) Medium-Term Fiscal Policy cum Fiscal Policy compilation, monitoring and review of Non Tax Revenue
Strategy Statement Receipts also rests with PD Section.
b) Macro-Economic Framework Statement 2.9 REPORT AND COORDINATION SECTION:
B) Disclosure statements presented with Budget 2.9.1 During the above period, Budget Division also
2022-23:
coordinated the Pre-Budget Meetings for finalization of
a) Tax Revenues raised but not realised Revised Estimates 2022-2023 and Budget Estimates
b) Arrears of Non-Tax Revenues 2023-2024. W ork relating to security and other
c) Asset Register arrangements in connection with presentation of Union
C) Half yearly Statements on Review of the trends Budget i n the Parl iament is also a part of the
in receipts and expenditure in relation to the responsibilities handled by the Division.
budget at the end of- 2.9.2 From 1st April, 2022 to 28th February, 2023, 42
a) Second Half of the Financial Year 2021-22 Reports of the C&AG of India were laid before the
b) First Half of the Financial Year 2022-23 Parliament and 28 proposals of entrustment/re-
2.7.3 Fiscal indicators in FY 2021-22 and targets for entrustment of audit of various bodies to the C&AG of
RE 2022-23 and BE 2023-24 are as below: India were dealt by this Division.
6
2.10 PUBLIC DEBT MANAGEMENT CELL: Debt for year 2019-20 and 2020-21 was released last on
2.10.1 A Middle Office (MO) was set up in the DEA, April 13, 2022. The work on Status Paper on Government
MoF in September 2008 to advise the Government on Debt for year 2021-22 is in progress and the same will
public debt management. Subsequently, upon the be released shortly. This report covers various facets of
announcement in Lok Sabha in April 2015 by Hon’ble public debt including overall debt position of the country,
Finance Minister, consultations were held with RBI and assessment on aspects of debt sustainability, debt
other stakeholders on establishment of Public Debt management strategy covering various risks, etc. This
Management Agency in India and it was decided to initially publication now brings all components of public debt
set up a Public Debt Management Cell (PDMC) as an under the Debt Management Strategy, thus widening its
interim arrangement. This was considered necessary to scope and acts as a guide to debt managers in carrying
ensure separation of debt management functions form out day to day debt management. The PDMC also
RBI in a gradual and seamless manner, without causing publishes quarterly report on Public Debt and is also
market di srupti ons. Accordingly, a Public Debt responsible for uploading the public debt related data on
Management Cell (PDMC) was set up in DEA on October National Summary Data Page.
4, 2016. Formation of PDMC was also the first step 2.10.5 The PDMC also prepares various internal MIS
towards consolidation of all components of public debt reports on the development in primary and secondary
under one agency and consolidation of public debt related markets to keep the Government informed of these
data at one point. It was also decided that the work for development and also initiate necessary action, if
moving towards PDMA would be taken up in a phased necessary.
manner. 2.10.6. PDMC was also involved in the Government of
2.10.2 Considering the extant legal provision, only India’s first ever Sovereign Green Bond Issuance. As
advisory functions were assigned to PDMC to avoid any announced in the Union Budget 2022-23, the Government
conflict with the statutory functions of RBI. In view of of India, as part of its overall market borrowings, issued
electronic infrastructure created by RBI, it was also Sovereign Green Bonds (SGrBs) for an aggregate
agreed that the operations concerning Front Office, amount of Rs 16,000 crore in the second half of the fiscal
comprising of electronic auction system and Back Office, year 2022-23, for mobilising resources f or green
comprising of depository and registry services would infrastructure. The proceeds would be deployed in public
continue to be housed with RBI even with an independent sector projects which help in reducing the carbon intensity
PDMA coming into being. of the economy.
2.10.3 Since then, the PDMC has been playing important 2.11 BUDGET PRESS:
role in public debt management through planning the 2.11.1 Budget Press is responsible for printing of all
borrowing of GoI, formulating debt management strategy, Budget Documents relating to the Union Budget including
cash monitoring and management, increased interaction Detailed Demand for Grants of Ministry of Finance and
with market participants etc. Cash management has Supplementary Demands for Grants. During the year
become important due to sharp fluctuations being seen 2022-23, the Budget Press contributed in preparation of
in the Govt. receipts and payments for last three years. paperless Union Budget 2023-24, which was successfully
2.10.4 Other major function undertaken by PDMC is presented on 1st Feb, 2023 in the Parliament. This
dissemination of information on public debt through involved timely preparation & consolidation of total 24
periodical reports. Towards ensuring the enhanced documents (English/Hindi) in digital format for uploading
transparency in public debt management operations, the in the Union Budget website/App. Apart from this, 176
Government of India has been publishing a number of various documents including 71 jobs of G-20 documents
documents detailing overall debt position of the country, and 11 progress report of MOS office were executed in
consolidated debt data relating to public debt, debt all with as many copies required during 1.4.2022 to
management strategies of central government debt, etc. 06.03.2023.
These publications include an annual Government Debt 2.11.2 Apart from above, the Budget Press printed First
Status Paper (since 2010), Handbook of Statistics on Batch of Supplementary Demands for Grants for the year
Central Government Debt (since 2013) and Debt 2022-23, Detailed Demands for Grants for the year 2023-
Management Strategy document (2015). Government 24, Action Taken Report, Cabinet Note (Hindi & English)
has consolidated all these publications into a single report and several Discussion Paper. The Annual Report 2022-
‘Status Paper on Government Debt’ to bring complete 23 and the Second Batch of Supplementary Demands
Gov ernm ent Debt and i ts Management related for Grants for the year 2022-23 will also be printed during
information at one place. Status Paper on Government February-March, 2023.
7
2.12 HINDI BRANCH: Official Language Implementation Committee have been

held so far, which have been held on February 18, 2022
2.12.1 Official Language Activities
and November 15, 2022, the remaining meetings are to
During the year, the progress of implementation be held before the end of the financial year.
of various programs under the Official Language Policy
2.12.7 Circulation of Annual Program
has been continuously reviewed.
The Annual Program for the year 2022-23 issued by the
All documents were presented bilingually in the
Parliament. Section 3(3) of the Official Languages Act, Department of Official Language, Ministry of Home Affairs
1963 and Rule 5 of the Official Language Rules, 1976 was circulated on 19th May, 2022 to all the Sections/
made thereunder and other instructions issued by the Divisions of the Ministry including the Subordinate Offices
Department of Official Language were fully complied with. and put on the dash board in the e-office of the Ministry.
During the year several steps were taken in the
2.12.8 Projected Schemes
department to increase the use of Hindi in official work.
(i) Hindi Advisory Committee meeting is to be
2.12.2 Hindi fortnight
organized as soon as the works related to the budget
Like other years, this year also “Hindi Fortnight” and the economic review are completed, along with it is
was organized in the Department of Economic Affairs proposed to start an Official Language Shield scheme,
from September 14, 2022 to September 30, 2022. In order under which the subordinate offices of the department
to promote the use of Hindi in the department, various will be encouraged for the remarkable work being done
competitions were organized to create a conducive in the field of implementation of the official language and
environment. they will be provided shield and citation.
2.12.3 Bilingual Website (ii) A Hindi workshop related to the official
The website of the department is bilingual. language will be organized for the purpose of spreading
Besides other material, all budget document, economic information about the rules and instructions related to
survey and other publications and important circulars the official language policy to all the sections.
were uploaded simultaneously in Hindi and English.
(iii) Apart from this, there is also a proposal to
2.12.4 Official Language Inspection organize a Hindi conference in the department, which
can be done only after the budget session.
To ensure compliance of the Official Language
Act, rules made thereunder and annual program and 2.12.9 Translation Work
orders and instructions related to official language, etc.,
in the period from 27/04/2022 to 07/12/2022, a total of 18 All Budget docum ents are presented to
inspections were carried out in the subordinate offices of Parliament in Hindi and English. Besides Budget
the department i.e. SEBI, SPMCIL and NSI, including the documents, Hindi Translation Branch has also prepared
Head Offices and their attached offices in which Director Hindi versions of Supplementary Demands, Reports on
(O.L.), Deputy Director (O.L.), Assistant Director (O.L.) Public Statistics and Status Report of External Debt,
and the Translation Officers of the section participated. FRBM Quarterly Reports which were laid before the
Parliament.
2.12.5 Dispatch of Quarterly Progress Report
The translation of the other official documents
The Quarterly Progress Reports of the Ministry
were collected from all the Sections/Divisions of the as envisaged in the official Language Act, 1963 and Rules
Department. The consolidated quarterly progress report made thereunder, was also undertaken by the Hindi
was sent to the Department of Official Language, Ministry Branch during the year under report. These include
of Home Affairs. agreements with Foreign governments and International
Agencies, Cabinet Notes, Parliament questions/
2.12.6 Central Official Language Implementation assurances, notifications, Standing Committee papers,
Committee Meetings Action Taken reports, monthly summary for the Cabinet,
During this financial year, two meetings of the Official letters and External funding Report.
8
3. Financial Markets Division Appellate Tribunal (SAT). The division facilitates

the sovereign credit rating by various credit rating
agencies and financial regulatory dialogues with USA,
3.1 Introduction
UK and Japan and EU.
Financial Markets Division is prim arily
responsible for policy issues related to the development FM Division is also responsible for the
of the securities markets and matters incidental thereto. administration of SEBI Act 1992, Foreign Exchange
The Division is also responsible for policy matters relating Management Act (FEMA) 1999, International Financial
to foreign exchange management. Since 2013, the Services Centres Authority Act, 2019, Securities Contracts
Division is entrusted with the development of Regulation (SCRA) Act 1956, Depositories Act, 1996 and
commodity derivative markets. The division looks after Section 20 of the Indian Trust Act, 1882 and related
the administrative matters of the Securities and regulations and notifications thereunder. Issues related
Exchange Board of India (SEBI), International Financial to erstwhile Forward Contracts (Regulation) Act, 1952 is
Services Centres Authority (IFSCA) and Securities also handled in the FM Division.
Organogram
Joint Secretary (FM)
DIR (RE ,IC&-

JD(PM DIR(SM IG & JD(EM & ECB) JD(CD) )
&Coord) JPCJPC) IFSCA)
DD(IF US DD
DD US DD DD AD
DD (IC) SCA)) US (RE)
(CD) (CD)
(PM) (cord) (SM1) (SM2) (EM1)
3.2 Sections in Financial Market Division 5. Financial literacy

The various Sections and their work allocation are 6. Corporate governance of companies
given below (each of the sections handle the 7. Matters related to National Institute of Securities
parliament questions, grievances, RTIs, court cases Market (NISM)
miscellaneous references etc. belonging to their
8. Policy articulation on agenda items of SEBI's Board
work areas): meetings (primary responsibility)
I. Primary Markets (PM) Section 9. SEBI Act and related rules and regulations
1. Policy formulation on issues relating to initial and 10. Investment Guidelines for N o n
further issue of capital and related intermediaries Government Provident Funds, Superannuation
engaged in the same such as Funds and Gratuity Funds
(a) Mutual funds, 11. Coordinating DEA-NIFM Research Programme
(b) Collective investment schemes, 12. Sectoral Charge of Ministry of Corporate Affairs.
(c) Alternative investment funds, II. Secondary Markets Section
(d) Domestic credit rating agencies, 1. Policy issues of Secondary Market and related
Market Infrastructure Institutions (MIIs),
(e) Merchant Banks etc. Intermediaries and Participants (Stock Exchanges,
2. Matters related to Corporate Governance and Clearing Corporations, Depositories their
Minimum Public Shareholding. participants, Trading Members, and Investment
Advisors etc.), their ownership and governance
3. Policy issues related to Mergers, takeovers and issues etc.
acquisitions
2. Social Stock Exchange/SME Exchange/New
4. Development of Corporate bond market Segments/ platforms for trading in securities /crowd
funding platforms
9
3. Taxes and Stamp Duties in Securities Market 8. NSEL scam related m atters: holding inter-
4. Skilling in securities market /capacity building ministerial, inter-agency periodic review meetings
initiatives on NSEL scam
9. Negative Oil price settlement related matters
5. Delisting of companies and associated policy
concerns 10. Evaluation of relevant items in SEBI board Agenda
6. Creating a Single Demat Account for all financial IV. External Markets (EM) Section
assets 1. Foreign Portfolio Investment
7. Database relating to Securities Markets 2. Direct Listing of equity shares of Indian companies
8. Monitoring of Stock Market Movements in overseas exchanges
9. Self-Regulatory Organizations 3. American Depository Receipts/Gl obal
Depository Receipts/ Indian Depository Receipts
10. Cyber security related m atters in context of
Securities Market 4. FEMA Regulations of RBI
11. Regulation of distributors /distribution of financial 5. Global Bond and Equity Indices
products in context of Sumit Bose Committee 6. International Settlement of Indian G-Sec through
recommendation ICSDs
12. Matters related to Investor Education and Protection 7. Issuance of Bonds by Multilateral Institutions
13. Policy on Frozen Demat Accounts 8. Approval of foreign travel of Chief
Ministers/ Ministers/MLAs/Administrators/Officers
14. Ratification of UNIDROIT / Geneva Securities
Convention of States and Union Territories
9. Sectoral charge of Ministry of Law and Ministry of
15. Securities Contracts (Regulations) Act, 1956 and
Parliamentary Affairs
related Rules and Regulations
10. Bilateral Trade arrangement with Iran
16. Depositories Act, 1996 and related Rules and
Regulations V. External Commercial Borrowings (ECB) Section
III. Commodity Markets Section 1. External Commercial Borrowings, Trade Credits
1. Policy matters related to development of commodity and Offshore Rupee denominated Bonds [Masala
derivatives market: Design of new products / bonds]
contracts, entry of new players - domestic as well 2. Foreign Exchange Management Act
as foreign, harmonization of rules and procedures
with securities market, encouraging hedging by 3. Currency Derivatives
government entities / farmers etc. 4. Trade paym ents m echanism s with specific
countries
2. Notifying commodities for trading: Resumption/
suspension of futures trading in various notified 5. FEMA Rules including Non Debt Instruments Rules
commodities /Launch of Plain Vanilla Options and Current Account Rules
Contract 6. Approval for establishment of Liaison office / Branch
3. Integration of Commodity spot and derivatives office/ Project Office in India by Foreign entities
market: 7. Approval for purchase of immovable property in
4. Commodity derivatives trading related matters: India by foreigners/ non- residents
cases of manipulation/speculation etc. 8. Approval for opening Non Resident Ordinary (NRO)
5. Representing DEA in futures market related matters and Non Resident Rupee (NRE) Accounts by
in the inter-ministerial committees on Essential foreigners/ non-residents
Commodities' price rise etc. VI. International Financial Services Centres
6. Representing DEA in Comm odity Derivative Authority (IFSCA)
Advisory Committee of SEBI - processing CDAC 1. Administration of the IFSCA Act, 2019 and framing
agenda items of Subordinate Legislation under the Act
7. Delivery arrangements in the market: Taking up 2. Policy formulation on issues related to IFSCA Act,
matters related to warehouses accredited by stock 2019 and related rules and regulations
exchanges with WDRA and Ministry of Consumer
3. Facilitating overall development of core and niche
Affairs
10
segment in the financial ecosystem of IFSC through 9. Foreign visits of the Chairman of SEBI; hosting of
inter departmental coordination on areas including– meetings of foreign delegations - obtaining the
• Aircraft Leasing and Financing necessary clearances
• Bullion Trading VIII. International Cooperation (IC) Section
• Fin Tech [Make it a bullet point] 1. Facilitating Sovereign Credit Rating of India (Fitch,
• Insurance/Re-Insurance Moody's, S&P, DBRS, JCRA, R&I)
• Banking 2. Coordinating DEA - NIPFP Research Programme
• Fund Management 3. Indo-US Financial Regulatory Dialogue /Indo-US
• Global-In-House Centres Financial Initiative
• Others 4. Indo Japan Financial Regulatory Dialogue

4. Preparation of Cabinet Notes for signing of bilateral 5. India-UK Financial Market Dialogue
and multilateral MoUs by IFSCA for strengthening 6. Indo-UK Financial Partnership
mutual co-operation with overseas financial
regulators/authorities 7. India-EU Financial Regulatory Dialogue
5. Facilitating international outreach by IFSCA and 8. Other International matters
GIFT City 9. Interactions with financial analysts and economists
6. Enhancing inter regulatory coordination between
IX. Joint Parliamentary Committee (JPC) and
SEBI, RBI, IRDAI, PFRDA to enable comprehensive
Investor Grievances (IG) Section
regulations and new financial products/services in
IFSC 1. Matters related to Section 20 of Indian Trust Act
1882
7. Firming up of agenda items related to development
of IFSC under various economic and financial 2. Preparation of Progress Report on Action taken on
dialogues recom m endations of Joint Parliam entary
VII. Regulatory Establishment (RE) Section Committee (JPC) on Stock Market Scams and
1. Carrying out Board level appointments of Securities matters related thereto.
and Exchange Board of India(SEBI), appointment 3. Matters related to Nizam Trust
of Presiding Officer, Members and Registrar of
4. Handling of Investors' Grievances (Electronic &
Securities Appellate Tribunal (SAT) and
Physical) related to FM Division/ transferring of
administration of related Rules and Regulations
other representations to respective authority
2. Constitution of the Financial Sector Regulatory
5. Study/ Survey on reforms required in Investors'
Appointments Search Committee (FSRASC)
Grievance Redressal Mechanisms in context of
3. Establishment m atters of SEBI like audit, Securities Markets
appointment of CVO, etc.
6. Internal Charge of 5 states (Bihar, U.P.,Uttarakhand,
4. Establishment matters of SAT like residential Himachal Pradesh & Jharkhand)
accommodation, grant of budget to SAT and related
X. Coordination Section
matters, grant of vehicle to the officers in SAT etc.
1. Internal Coordination within FM Division for
5. Strengthening of SAT - Creation of additional
providing periodical inputs /reports to various
benches / creation of posts / creation of additional
Departments /Ministries, submission of material for
office space for SAT / implementation of e-Court in
annual reports, economic survey etc.
SAT, etc.
6. Administration of the Securities Appellate Tribunal 2. Meeting on Senior Management Group (SMG)
(Salaries, Allowances And Other Terms And taken by Secretary (EA) to evaluate pending VIP
Conditions Of Presiding Officer And Other reference, PMO reference and Parliamentary on
Members) Rules, 2003 Monday of every week. Management of e-Samiksha
and portals in respect of FM Division related
7. Bilateral and multi-lateral MoUs between SEBI and complaints, VIP/PMO references, cabinet notes,
securities market regulators of foreign countries. court cases, Senior Management Group Meetings
8. Remittances from SEBI to the Consolidated Fund etc.
of India 3. Monthly summary in respect of activities, major
11
achievement and important policy decisions taken November 2022). Capital market, both debt and equity,
in DEA are sent to Cabinet Secretariat has become increasingly important for India’s growth
story. On the equity side, the total funds of Rs. 1,14,360
4. Work management /allocation issues within FM crores have been raised through 448 issues including
Division Initial Public Offering (IPO), Rights Issue, Preferential
5. Website management in respect of FM Division Issue and Qualified Institutional Placement till November,
matters 30, 2022. On the debt side, the funds raised through
corporate bonds this financial year till November, 30, 2022
6. Internship Management within FM Division are around Rs. 3,91,996 crores, which includes fund
3.3 Recent Developments raising through both public issues and private placement.
I. Primary Markets: B. Fund raising in Corporate Bonds Market
A. Public Issue The Corporate Bond Market is one of the vital for
financing the real sector, supporting alternate investment
The year 2022-23 so far has been a good year for need apart from banks, diversifying risk and reducing
the primary markets with a boom in fund raising through financial markets fragility. The total debt amount consists
IPOs in Small and Medium Enterprises (SME) segment of Public issue and Private Placement of Corporate Bonds
with resource mobilization of Rs.1465 crores (upto 30th which has been tabulated below:
Apr - Nov 2022

Particular
No. of Issues Amount (` crore)
Debt 962 3,91,036
Public 17 5,663
Private Placement 945 3,85,373
The total resource mobilization in Primary Markets been amended, enabling them to invest up to 5 per cent
from April-November 2022 is Rs.5,06,356 crores with total in the units of Category I and Category II Alternative
1415 issues. Investment Funds (AIFs), subject to certain conditions.
C. Mutual Fund Activities 2. As part of overall objective to revitalize corporate
The Assets under Management (AUM) of mutual bond market in India. The efforts are being made to
fund industry stood at Rs. 39,88,735 crores upto 31st develop Credit Default Swap m arket in India, in
December, 2022.During 2022, important initiatives like consultation with regulators like RBI, SEBI etc.
nomination facility has been made mandatory, SEBI 3. The provision of Finance Act 2021 (notified on 28
regulations were amended to reduce the time allowed March 2021) has conferred power to the trusts registered
for payout of redemption and dividend to unitholders by with SEBI to issue debt security and the rights to lenders
AMCs, credit risk based single issuer limit for investment to enforce security interest underlying such debt in case
by actively managed mutual fund schemes in debt and of default. The law now clarifies that in case of default,
money market instruments etc., have been undertaken. lenders shall recover the defaulted amount and enforce
B. Major highlights: security interest, if any, against the trust assets. Trustee
will be proceeded against for recovery as per the terms
 Total number of demat accounts (NSDL+CDSL)
and conditions provided in the facility documents.
in India crossed the 10 crore mark during the
However, the trustee shall not be liable for and the
current financial year. At the end of November
trustee’s assets shall not be utilized towards recovery of
2022, the number of demat accounts increased
such debt. Whatever remains after paying the lenders
by 18.4 % (since March 2022) to stand at 10.6
shall be remitted to the unit holders. This benefit is already
crore.
available to mutual funds (MFs), Alternate Investment
 The AUM of mutual fund industry has increased Funds (AIFs), Business Trusts like REITS or INVITS etc.
by 8.1% to 40.5 lakh crore at the end November
4. Under Ease of Doing Business, automation of
2022 from 37.3 lakh crore at the end November
disclosure requirements under SEBI (Substantial
2021.
Acquisition of Shares and Takeovers) Regulations, 2011
II. POLICY DEVELOPMENTS OF PRIMARY was notified on March 7, 2022. The transactions
MARKET: undertaken in the depository system under certain
1. The investment guidelines for non-government regulations of Takeover Regulations do not require
provident funds, superannuation and gratuity funds have manual filing except in certain areas.
12
5. SEBI introduced the framework for conversion of 8. The Skin-in-the-game requirement for AMCs and
private listed InVIT into the Public InVIT and conversion designated employees was proposed by SEBI in circular
of unlisted InVIT into Private Listed InVIT in February dated 29/11/2021 wherein swing pricing framework for
2022. open-ended debt mutual fund schemes was introduced
6. To instill confidence amongst the participants in the to fairly allocate the costs.
Corporate Bond Market during times of stress and to 9. Distributed ledger technology (DLT) based platform
generally enhance secondary market liquidity, Union was launched for covenant monitoring of Debt Securities.
Budget 2021-22 proposed to create a permanent
This is first of its kind deployment of block chain
institutional framework to address the liquidity issue for
technology in the corporate bond market in the world
lower rated yet investment grade bonds. It is essentially
going to be a special purpose vehicle of permanent nature 10. A regulatory framework has been developed by
in the form of Backstop facility, to enhance secondary SEBI for Online Bond Platforms (OBPs) offering debt
market liquidity in the Corporate Bond Market during the securities to non-institutional investors. The circular dated
time of distress. The structure for setting up and operation 14/11/2022 for the framework provide an avenue for
of the Backstop facility has been finalized and is expected investors, particularly non-institutional investors to
to be in operational soon. access the bond market.
7. Hon’ble Finance Minister in 2021 budget speech 11. Government is engaged in an ongoing intensive
mentioned that the provisions of SEBI Act, 1992, effort to reduce the compliance burden on businesses
Depositories Act, 1996, Securities Contracts (Regulation) and citizens by way of rationalizing the laws, process etc.
Act, 1956 and Government Securities Act, 2007 is to be of regulatory bodies like SEBI and RBI. Overall, 62 items
consolidated into a rationalized single Securities Markets
have already been identified in respect of Securities laws
Code. A com m ittee was constituted with the
and FEMA related provisions on the Regulatory
representatives of DEA, DFS, Ministry of Corporate Affairs
Compliance Portal out of which 56 are completed. In the
and Ministry of Law on 07.10.2021 to review the current
provisions of the securities laws and to draft the proposed second round, the action plan was made in two phases :
Code. The committee has submitted its report and is Phase I to be completed by 31.03.2022 and Phase II by
being examined. 15.08.2022. The 5 action items for Phase I are completed.
12. Details of Funds mobilized through Primary Market

Table 1: Details of Fund Mobilization during 2020-21 to 2022-23 (upto 30th November, 2022)
Year Total IPOs (Main Board) IPOs- Rights QIP Preferential issues
SME /IGP
No. of Amount No. of Amount No. of Amount No. of Amount No. of Amount No. of Amount
issues issues issue issues issues issues
s
2020-21 341 2,14,766 29 30,814 26 216 21 64,059 31 78,738 234 40,940
2021-22 541 2,31,017 51 1,11,609 69 943 43 26,327 29 31,441 349 60,697
2022-23 448 1,14,360 28 46,630 76 1,465 37 3,436 8 4,115 298 54,414
Table 2: Data on corporate bond issuance (2020-21 to 2022-23)

Issue Type 2020-21 2021-22 2022-23
No. Amount No. Amount No. Amount
(Rs Cr) (Rs Cr) (Rs Cr)
Public Issue (Debt) 18 10,588 28 11,589 22 6,624
Pvt. Placement of 1995 7,71,840 1,405 5,88,037 945 3,85,373

Corporate Bonds*
Total Debt (Public & Pvt.) 2013 7,82,428 1,433 5,99,626 967 3,91,996
* Source: SEBI Bulletin (up to 30th November, 2022)
13
Table 3 : Secondary Market Trading in Corporate Bonds

Year No. of Trades Traded Value (in Rs. Crore)
2020-21
1,38,754 18,72,718
2021-22 1,55,621 17,73,384
2022-23 1,27,250 7,77,869
* Source: SEBI Bulletin (up to 30th November, 2022)
Table 4 : Asset under Management (AUM) by Mutual Funds (Rs. Crore)

Year AUM of MFs
2020-21 31,20,695
2021-22 37,69,137
2022-23 39,88,735
13. * Source: SEBI Data (as on 31st December, 2022)
II. Secondary Markets: in FY23 so far), Nifty 50 – USD adjusted return stood at
A. Stock Market Performance 0.2 per cent during FY23. As regards the U.S., Dow Jones
Industrial Average index declined by 0.3 per cent, while
During FY23 (April-November), stock markets Nasdaq Composite – heavily weighted (49 per cent)
across the world were on a declining trend. However, towards technology sector companies, declined by 19.4
Indian market emerged as one of the best performers per cent during FY23 (Apr-Nov). As at the end of
among major markets with a return of 7.4 per cent (Nifty November 2022, Sensex and Nifty 50 closed 7.7 per cent
50) during FY23 (till November 2022). Given the and 7.4 per cent higher, respectively, from their closing
depreciation in Indian Rupee against USD (7.2 per cent levels on March 31, 2022.
Figure 1: Movement of Indian Benchmark Indices
Among major emerging market economies, India 500 index, recorded strong gains and rose by 17.3 per
outperformed its peers during FY23 (April-November). cent and 15.0 per cent, respectively.
Among the select developed markets, Nasdaq and S&P
14
Table 2: Performance of Major Stock Market Indices across the World
As on As on Change in FY22 Change in FY23

Index
31/03/2022 30/11/2022 (Apr-Nov) (Apr-Nov)
India
Nifty 50 17,465 18,758 15.6% 7.4%
S&P BSE Sensex 58,569 63,100 15.3% 7.7%
Emerging Markets
Shanghai Composite, China 3,252 3,151 3.5% -3.1%
Brazil Ibovespa 1,19,999 1,12,486 -12.6% -6.3%
FTSE, South Africa 75,497 74,828 6.0% -0.9%
KOSPI, Korea 2,758 2,473 -7.3% -10.3%
Taiwan Taiex 17,693 14,880 6.1% -15.9%
Developed Markets
Nasdaq, USA 14,221 11,468 17.3% -19.4%
Dow Jones, USA 34,678 34,590 4.6% -0.3%
CAC, France 6,660 6,739 10.8% 1.2%
DAX, Germany 14,415 14,397 0.6% -0.1%
FTSE 100, UK 7,516 7,573 5.2% 0.8%
Hang Seng, Hong Kong 21,997 18,597 -17.3% -15.5%
Nikkei, Japan 27,821 27,969 -4.7% 0.5%
Straits Times, Singapore 3,409 3,290 -3.9% -3.5%
Nasdaq, USA 14,221 11,468 17.3% -19.4%
Source: Refinitiv
Figure 2: Returns of Major World Indices during FY23 (April-November)
15
Figure 3: Annualized Volatility in Major World Indices during FY23 (April-November)
India VIX, which measures expected short term volatility the war. However, Indian market showed resilience and
in the stock market, increased to a high of 32.0 on recovered to end on positive note in March 2022. During
February 24, 2022 as Russia invaded Ukraine. The April-November 2022, India VIX witnessed a declining
geopolitical crisis weakened the market sentiments, which
was reflected by downward movement in benchmark trend and stood at 13.8 at end of November 2022, as
indices over couple of weeks following the outbreak of compared to 20.6 as at end of March 2022.
Figure 4: India VIX
B. Valuations (P/E Ratio) 2022, stands expensive vis-à-vis the global markets.
Nifty, with its valuation at 22.5 times price-to-earnings on
However, it is still low as compared to its own 5-year
trailing basis ratio (P/E ratio) at the end of November
average.
Figure 5: Comparison of P/E Ratios of Major Indices with the Long Term (5-year) Average
16
C. Retail Participation in the Capital Market as compared to 42.2 per cent over the same period during
The share of individual investors in cash segment has
FY22.
declined to 37.5 per cent during FY23 (April-November)
Table 3: Share of Individual Investors in Equity Cash Segment Turnover (per cent)
Year Share of Individual Investors (per cent)

2021-22 41.1%
2021-22# 42.2%
2022-23# 37.5%
Note:
1. # period – April to November
2. Individual investors includes individual domestic investors, NRIs, sole proprietorship firms and HUFs, Others:
Partnership Firms/LLP, Trust / Society, Depository Receipts, Statutory Bodies, OCB, FNs, etc.
Source: NSE, BSE
Table 4: Demat Accounts (in lakh)
Year Total No. of Demat Accounts Accounts Added during the Period
2021-22* 890.3 344.8
2021-22@ 766.1 220.7
2022-23# 1,061.7 171.5
Note: * as at end of Mar-22, @ as at end of Nov-21, # as at end of Nov-22
The number of demat accounts in India rose to 10.6 crore market, amid prevailing global headwinds during the
by the end of November 2022, 39 per cent rise from the current financial year.
total number of accounts as at the end of November 2021. D. Turnover Statistics
However, incremental additions of demat accounts have
The cash segment turnover declined by 21 per cent during
been on a declining trend during FY23 relative to FY22.
171.5 lakh new accounts were added during FY23 (April- FY23 (till November 2022), as compared to the same
November), 22 per cent lower than the incremental period of FY22, while equity derivatives volumes recorded
additions over the corresponding period of FY22. The a huge jump of 113 per cent, showing individuals and
probable driving factors behind this declining trend are proprietary traders’ interests drifting away from equity
the secondary market volatility and subdued primary cash segment to equity derivatives segment.
Table 5: Turnover Statistics ( ` crore)
2021-22 2021-22# 2022-23# % Change

Year
(1) (2) (3) (3) over (2)
Cash Segment 1,79,04,483 1,24,26,578 98,15,896 -21%
Equity Derivatives 1,76,13,11,462 98,60,77,791 2,09,79,64,211 113%
# period – April to November ii. To enable investors to lodge and follow up their
complaints and track status of redressal of such
Major highlights complaints from anywhere, all recognized Stock
i. SEBI has made changes to SEBI KRA Regulations, Exchanges and Depositories have been advised to design
where KRA’s shall continue to act as repository of KYC and implement an online web based complaints redressal
data in the securities market and will be responsible for system of their own to facilitate investors to file complaints
storing, safeguarding and retrieving the KYC documents and escalate them for redressal.
and submit to SEBI or any other statutory authority as iii. To prevent mis-selling by unregulated platforms
and when required. offering algorithmic trading services/ strategies and to
17
protect investors interests, SEBI has issued guidelines The salient features for participation of FPIs in
to stock brokers and stock exchanges. It has further ETCDs are as under:
cautioned investors not to be lured by such entities. a) The existing Eligible Foreign Entity (EFE) route,
iv. SEBI came up with a detailed framework on the which required actual exposure to Indian physical
Social Stock Exchange (SSE). It stipulates minimum commodities, has been discontinued vide
requirement to be met by Not for Profit Organisation Circular dated September 29, 2022 by SEBI. Any
(NPO), initial disclosure requirements for fund raising, foreign investor desirous of participating in Indian
annual disclosure, disclosure of annual impact report and ETCDs with or without actual exposure to Indian
statement of utilisation of funds in terms of LODR physical commodities can do so through FPI
regulations. route.
v. SEBI, vide circular dated September 07, 2021, b) FPIs will be allowed to trade in all non-agricultural
introduced the T+1 settlement cycle in the Indian capital com m odity derivatives and select non-
markets after detailed consultations with stakeholders, agricultural benchmark indices. To begin with,
viz., stock exchanges, clearing corporations and FPIs will be allowed only in cash-settled
depositories. Stock exchanges have been given the contracts.
option to launch T+1 rolling settlement in a phased c) FPIs will be allowed to participate in Indian
manner starting from February 25, 2022. All the stocks ETCDs, subject to certain risk management
will move to T+1 settlement cycle by around January measures.
2023. India has become one of the very few large d) The position limits for participation of FPIs in
economies that switched from T+2 to T+1 settlement. ETCDs are as under:
The shorter settlement cycle (T+1) is in the interest of i. The position limits for FPIs (other than
retail investor as it reduces the risk of non-payment or individuals, family offices and corporate
non-delivery of shares by the broker by one day, which is bodies) will be at par with those presently
an improvement over the present system. Further, faster applicable for Mutual Fund schemes i.e. as
trade settlements lead to better efficiency levels and a client.
further protect investors.
ii. FPIs belonging to categories viz. individuals,
III. Commodity Derivatives : family offices and corporates will be allowed
1. Setting up Gold Spot Exchanges: Union Budget position limit of 20 per cent of the client level
Speech 2021-22 announced to launch Gold Spot position limit in a particular commodity
Exchange in the country as the first electronic platform derivatives contract, similar to the position
for spot trading of gold in dematerialized form. Towards limits prescribed for currency derivatives. The
the fulfillment of this Announcement, Department of participation of FPIs including individuals,
Economic Affairs, notified “electronic gold receipts (EGR)” family offices and corporates shall be subject
as ‘securities’ under Securities Contracts (Regulations) to compliance with the provisions of SEBI
Act, 1956 on December 24, 2021. Subsequently, (Foreign Portfolio Investors) Regulations,
Securities and Exchange Board of India (SEBI) issued 2019, SEBI (Custodian) Regulations, 1996
the framework for Gold Spot Exchange on 10 January and the applicable SEBI Circulars on ETCDs.
2022 and other necessary Regulations. BSE launched iii. A Working Group com prising of
the Electronic Gold Receipt trading in its platform in representatives from SEBI and market
October, 2022. EGRs will cater all kinds of market participants has also been constituted to
participants i.e. retail, commercial, institutional etc. review/examine whether any additional risk
management measures, are required to be
2. Notifying SEBI as regulator of Gold Spot
prescribed for FPIs.
Exchange
COMMODITY DERIVATIVES MARKET
The Government of India vide Gazette notification
S.O. 5401 (E) dated December 24, 2021, notified The commodities eligible for derivatives trading are
“electronic gold receipts (EGR) as ‘securities’ under notified by DEA, MoF in consultation with SEBI. At
section 2 (h) (iia) of SCRA, 1956. This will enable SEBI present, major agricultural commodities trading on
to regulate EGR. derivatives platforms include Barley, Castor Seed,
Coriander, Cotton, Guar Seed, etc. Major non-agri
3. Allowing FPIs to participate in Exchange Traded commodities traded on commodity derivatives platforms
Commodity Derivatives market in India are metals (Zinc, Aluminium, Copper, Gold, Silver)
The SEBI Board, after deliberations, approved the and energy commodities (Crude Oil, Natural Gas). The
participation of Foreign Portfolio Investors (FPIs) in total turnover in the commodity derivatives segment is
Exchange Traded Commodity Derivatives (ETCDs). distributed across exchanges as follows:
18
Table 1: Market share of exchanges year wise
Total Turnover 2018-19 2019-20 2020-21 2021-22 2022-23* % variation of 2021-

22 over 2020-21
(in Rs. Crore)
All-India 7,377,943.89 9,224,839 9,222,927 1,00,27,900 92,63,487 8.73%
MCX 6,772,372.87 8689518 8,264,585 87,81,757 91,07,177 6.26%
NCDEX 531587.96 442009 318,814 4,57,186 1,36,424 43.40%
ICEX** 37,735.50 40,511.29 1,666 139 0 -91.68%
NSE 3,443.82 6,362.00 27839 19,744 -29.08%

12,300
BSE 32,803.75 46,438.72 610,023 7,69,075 26.07%
7,586
* Data as on 30 November 2022 **SEBI has withdrawn the recognition granted to the Indian Commodity Exchange Limited
on May 18, 2022.
Source: SEBI Bulletin, December 2022
IV. Snapshot of External Market
FPI Investment Inflows in India from 2012-13 to 2022-23
INR Crores
Financial Year
Calender Year
Equity Debt Debt - VRR Hybrid Total
2012-13 1,40,031 28,334 0 0 1,68,365
2014-15 1,11,333 1,66,127 0 0 2,77,461
2015-16 -14,172 -4,004 0 0 -18,176
2016-17 55,703 -7,292 0 0 48,411
2017-18 25,635 1,19,036 0 11 1,44,682
2018-19 -88 -42,357 0 3,515 -38,930
2019-20 6,153 -48,710 7,331 7,698 -27,528
2020-21 2,74,032 -50,443 33,265 10,247 2,67,101
2021-22 -1,40,010 1,628 12,642 3,498 -1,22,242
2022-23* -11,421 -12,400 8,662 -993 -16,153
Source: NSDL, *Up to 31st December 2022
FPI Investment Inflows by Month in India during 2022
INR Crores
Month
Equity Debt Debt - VRR Hybrid Total
January -33,303 5,194 -2,114 1,697 -28,526
February -35,592 -3,073 487 110 -38,068
March -41,123 -5,632 -3,244 -68 -50,068
April -17,144 -4,439 -1,175 69 -22,688
May -39,993 -5,506 9,043 -62 -36,518
June -50,203 -1,414 87 108 -51,422
July 4,989 -2,056 -785 -176 1,971
August 51,204 3,845 2,997 -1,525 56,521
September -7,624 4,012 -1,455 1,112 -3,955
October -8 -3,532 762 -301 -3,080
November 36,239 -1,637 -540 -214 33,847
December 11,119 -1,673 -272 -4 9,171
Total-2022 -1,21,439 -15,911 3,791 746 -1,32,815
19
 FPI flows were in the negative territory for the first 90,368 crore. FPIs made a net investment of Rs. -
1,32,815 crore up to Dec 31st, 2022.
six months of 2022. Thereafter, there were inflows
 The Indian growth story continues to expand as is
in net FPI investment during second half of the year
demonstrated by the trends in FPI flows that indicate
to the tune of Rs. 94,475 crore with August and and underline the faith of global investors in the
November witnessing a combined inflow of Rs. strength and resilience of Indian economy.
A. External Commercial Borrowing in India:

The data for ECB net inflows since FY 2017-18 is presented as under:
USD Million
2017-18 2018-19 2019-20 2020-21 2021-22
2022-23 (Till
Nov 2022)
2,305 13,180 29,399 4,248 12,888 (-)2,934
* Data for latest month are as per the scheduled drawdown (indicated by
borrowers in Form-ECB) in absence of ECB-2 Return.
B. Foreign Exchange Management (Non–Debt 2020. The Chairman and ex-officio members of the
Instrument Rules) Authority have been appointed and all sections of the
IFSCA Act have been notified in the Official Gazette. All
Pursuant to the amendments to FEMA 1999 through
key operational rules and regulations for IFSCA under
the Finance Act, 2015, Ministry of Finance had notified
the IFSCA Act, 2019 have been notified by DEA and
the Foreign Exchange Managem ent (Non-debt
IFSCA.
Instruments) Rules, 2019 vide Notification No. 1802(E)
dated 12th April, 2022 which is as under: In the recent years, GIFT-IFSC has witnessed
substantial traction across the entire spectrum of financial
(i) Foreign Exchange Managem ent (Non-debt
services. It has played a pivotal role in onshoring financial
Instruments) (Amendment) Rules, 2022: Regarding Press
services which had overtime migrated to attractive
Note 1(2022 series) of DPIIT relating to review of FDI
offshore jurisdictions. Presently, more than 390 entities
Policy for permitting foreign investment in LIC and other
are registered across traditional as well as niche
modifications.
segments in the IFSC. Significant gains have been made
V. International Financial Services Centres in kick starting experimental and innovative activities such
Authority (IFSCA): as bullion trading, aircraft leasing, global-in house centres
and Finech. The foundation has been laid for creating a
The vision of GIFT IFSC is to establish itself as a
thriving knowledge economy by allowing foreign
dominant gateway for global financial flows into and out
universities to set up operations in IFSC. Simultaneously,
of India, and simultaneously emerge as a major global
external assistance is being mobilised for establishment
financial hub. In pursuit of this vision, it aims to leverage
of India’s premiere Fintech Institute and Innovation Centre
the Indian Diaspora, match tax regime with offshore
in GIFT City. The aspirational pursuit of integrating the
jurisdictions, institutionalize a modern unified regulatory
Indian economy with the global financial ecosystem
framework, develop networks/ connects with major
through India’s m aiden IFSC has been rich with
financial hubs, and have a diversified range of financial
achievements some of which are noted below –
products and services. These endeavors will enable the
transition of GIFT IFSC into a globally competitive 1. Laying of the foundation stone for IFSCA HQ
financial hub for international banking, insurance and building was done by the Hon’ble PM on 29th
capital market activities which serves both the Indian July, 2022. The headquarter building will be a
Economy and the region as a whole. physical manifestation of the vision for GIFT IFSC
and would symbolize the dreams and aspirations
Pursuant to the passage of IFSCA Act in December
of a New and Atma Nirbhar Bharat. The work on
2019, the International Financial Services Centres
the project has started in November 2022.
Authority (IFSCA), a first of its kind unified regulator for
the financial sector, has been established and made 2. India first International Bullion Exchange was
operational vide Gazette Notification dated 27th April, inaugurated by the Hon’ble Prime Minister of
20
India in GIFT IFSC on 29th July 2022. IIBX aims 8. A revised “Framework for Aircraft Lease” was
to offer a world-class bullion exchange issued on May 18, 2022 to enable Aircraft
ecosystem for bullion trading, investment in operating lease in GIFT-IFSC including the
bullion financial products and vaulting facilities
leasing of Aircraft Ground Support Equipment.
in IFSC.
The revised framework consolidates the
3. In its endeavor to become a hub for sustainable guidelines relating to business of operating and/
finance IFSCA has notified ‘Sustainable Lending or financial lease of aircraft or helicopter and
Framework’ for IFSC Banking Units and Finance
engines of aircraft or helicopter or any part
Companies to encourage lending by banking/
thereof and/or Aircraft Ground Support
financial sector to sustainable sectors.
Equipment by the aircraft leasing entities
4. Further, IFSCA also notified comprehensive Fund registered with the IFSCA.
Management Regulations in April 2022 which has
several provisions for enabling fund management 9. The NSE IFSC-SGX Connect was launched in
activities for sustainable finance July 2022 to give impetus to the capital market
5. A dedicated platform for listing of various ecosystem in GIFT IFSC. The Connect aims to
categories of ESG related products such as bring together international financial institutions
Green Bonds, Social Bonds, Sustainable Bonds, and participants based in GIFT-IFSC to create
Carbon Credits, Green Equity, Green and a bigger liquidity pool for derivative contracts
sustainable REITs, known as the International with Indian indices as the underlying. The
Sustainability Platform has been launched by
Connect would deepen liquidity in derivative
NSE- IFSC on July 29, 2022.
instruments at NSE-IFSC, attracting more
6. To implement the Budget announcement of 2022- international participants and having a positive
23 for setting up World Class Universities at impact on the financial ecosystem in IFSC.
GIFT-IFSC, Notification under Section 3 of the
IFSCA Act 2019 enabling IFSCA to regulate 10. Four MoUs have been exchanged by IFSCA
select courses offered by foreign universities in with 4 foreign regulators and Department of
GIFT-IFSC has been issued on May 23, 2022. Space (DoS) to deepen mutual co-operation and
Meanwhile, draft Notification under Section 31 facilitate technical cooperation.
of the Act to dis-apply provisions of University
Grants Commission Act 1956 and All India 11. To augment the FinTech Ecosystem at GIFT-
Council for Technical Education Act 1987 for IFSC, Circular putting in place a comprehensive
foreign universities/institutions based out of FinTech Entity (FE) Regulatory Framework for
GIFT-IFSC has been tabled in both houses of FinTechs and TechFins in GIFT-IFSC has been
the Parliam ent for approval. IFSCA after
issued by IFSCA on 27th April 2022. The first
extensive consultation has notified regulations
five authorizations to FinTech entities under the
for Setting up and Operation of International
Branch Campuses and Offshore Education FinTech Entity Framework were granted on 29th
Centres in October 2022. This path breaking July 2022, during the visit of the Hon’ble Prime
initiative is expected to bring world class Minister and Finance Minister to GIFT IFSC.
education & research facilities in GIFT IFSC and
12. Deputy Prime Minister of Singapore visited GIFT
provide high end talent for financial institutions
setting up presence in IFSC. IFSC on 18th September during which the
Monetary Authority of Singapore (MAS) and the
7. The Union Cabinet in its meeting on 13th July
International Financial Services Centres
2022 has approved signing of an MoU between
Authority (IFSCA) signed a FinTech Co-
IFSCA and Monetary Authority of Singapore
(MAS) to facilitate m utual exchange of operation Agreement (CA) to facilitate regulatory
information and technical cooperation. collaboration and partnership in FinTech.
21
VI. International Cooperation: (S&P), Japanese Credit Rating Agency (JCRA), Rating
and Investment Information Inc., Tokyo (R&I) and DBRS
India’s sovereign debt is rated by 6 major Sovereign
Credit Rating Agencies (SCRAs). These are Fitch MorningStar. The latest sovereign ratings issued by these
Ratings, Moody’s Investors Service, Standard and Poor’s rating agencies are given below:
Rating Date of Foreign Currency Local Currency

Agency affirmation of
ratings
Ratings Outlook Ratings Outlook
Moody’s 15.12.2022 Baa3 Stable Baa3 Stable
Fitch 20.12.2022 BBB- Stable BBB- Stable
S&P 13.07.2021 BBB- Stable BBB- Stable
JCRA 13.05.2022 BBB+ Stable BBB+ Stable
R&I 26.12.2022 BBB Stable No ratings were given
DBRS 19.05.2022 BBB (low) Stable BBB (low) Stable
R-2 (middle) R-2 (middle)
VII. Regulatory Establishment It is also the designated Tribunal to hear appeal

Securities Appellate Tribunal (SAT) is established cases against the orders passed by International Financial
under Section 15K of the Securities and Exchange Board Services Centres Authority (IFSCA) for matters related
of India Act, 1992, to exercise the jurisdiction, powers to securities, insurance, and pension under the Acts
and authority conferred on the Tribunal by or under the mentioned above.
SEBI Act1992, PFRDA Act 2013, Insurance Act 1938 and As on 31.12.2022, 852 appeals are pending
any other law for the time being in force. before SAT and its breakup is as follows:-
Category Opening Cases filed Total Cases Disposed Pending

Balance as on Cases Cases
01.01.2022
SEBI 807 1046 1853 1011 842
IRDA 15 05 20 10 10
PFRDA 00 00 00 00 00
TOTAL 822 1051 1873 1021 852
22
4. Financial Stability and Cyber Security of Registered Valuers by all the Government Departments.
Division It was noted that there is a need to monitor the financial
sector risks, the financial conditions and market
4.1. Financial Stability and Development Council
developments on a continuous basis by the Government
4.1.1 The Financial Stability and Development Council and the regulators so that appropriate and timely action
(FSDC) was set up by the Government of India as the can be taken so as to mitigate any vulnerability and
apex level forum in December 2010 with a view to strengthen financial stability. The FSDC also took note of
strengthening and institutionalising the mechanism for, the preparation in respect of financial sector issues to be
inter-alia, maintaining financial stability, enhancing inter- taken up during India’s G20 Presidency in 2023.
regulatory coordination and promoting financial sector
4.2. FSDC Sub-Committee (FSDC-SC)
development. The Chairperson of the FSDC is the Finance
Minister of India and Members include Ministers of State 4.2.1 The FSDC is supported by a Sub-Committee
for Finance, the heads of the financial sector regulators (FSDC-SC), chaired by the Governor, RBI. Excluding the
and Secretaries of the relevant Ministries/ Departments Chair of the FSDC and the Ministers of State for Finance),
of the Government of India. all members of the FSDC are also the members of the
FSDC-SC. Additionally, all four Deputy Governors (DG) of
4.1.2 The FSDC monitors macro-prudential supervision
RBI, and Secretary (FSDC), are also the members of the
of the economy and deliberates on contextual issues
FSDC-SC. Executive Director of RBI, who is in-charge-of
covering financial stability, financial sector development,
Financial Stability, is the Member Secretary, and the
inter-regulatory coordination, financial literacy, financial
Financial Stability Unit (FSU) of RBI is the Secretariat for
inclusion, co-ordinating India’s international interfaces with
the FSDC-SC. The FSDC-SC has met 29 times so far.
financial sector bodies like the Financial Action Task Force
(FATF) and the Financial Stability Board (FSB). The 4.2.2 During the year 2022-23, FSDC-SC held the 29th
Financial Stability and Cyber Security (FS&CS) Division meeting on November 15, 2022. The Sub-Committee
in the Department of Economic Affairs provides secretarial reviewed the major developments in the global and
assistance to the FSDC. The Division-Head in charge of domestic economy as well as in various segments of the
Financial Stability & Cyber Security (FS&CS) Division, financial system. It discussed certain inter-regulatory
Ministry of Finance, Department of Economic Affairs is issues. The Sub-Committee also reviewed the activities
the Secretary of the FSDC. of various technical groups under its purview and the
functioning of State Level Coordination Committees
4.1.3 Till 25th November 2022, FSDC held 26 meetings. (SLCCs) in various States/ UTs. The members resolved to
In 2022-23, the 25th meeting was held on February 22, remain vigilant and proactive to ensure that financial
2022 and 26th meeting was held on September 15, 2022. markets and financial institutions remained resilient amidst
In the 25th meeting, the FSDC deliberated on the various the spillovers arising from evolving global macroeconomic
mandates of the FSDC and major macro-financial situation.
challenges arising in view of global and domestic
4.3. Financial Stability Board (FSB)
developments. The FSDC noted that the Government and
all regulators need to maintain constant vigil on the financial 4.3.1 The FSB is an international body established in
conditions and functioning of important f inancial April 2009 under the aegis of G20 by bringing together the
institutions, especially considering that it could expose national authorities, standard setting bodies and
financial vulnerabilities in the medium and long-term. The international financial institutions. The FSB is responsible
FSDC discussed measures required f or f urther for undertaking vulnerabilities assessment, policy
development of the financial sector and to achieve an development and coordination, implementation monitoring,
inclusive economic growth with macroeconomic stability. and to act as a compendium of standards for financial
The FSDC also discussed operational issues relating to sector regulation and reforms in members’ jurisdictions.
currency management, particularly the issues of Fake 4.3.2 India, as a member of the FSB, remains committed
Indian Currency Notes. In the 26th meeting, the FSDC, to adoption of the priority and other areas of financial sector
inter alia, deliberated on the Early Warning Indicators for reforms and international standards in a phased manner,
the economy and our preparedness to deal with them, calibrated to local conditions wherever necessary.
improving the efficiency of the existing Financial/Credit Department of Economic Affairs is the nodal point for India
Inf ormation Systems, issues of gov ernance and to coordinate with the FSB and all India-specific information
management in Systemically Important Financial are regularly provided in consultation with the financial
Institutions including Financial Market Infrastructures, sector Regulators (namely, RBI, SEBI, IRDAI and PFRDA)
strengthening cyber security framework in financial sector, while responding to various FSB questionnaires, surveys
Common KYC for all financial Services and related matters, and reports. India also participates in the peer reviews,
update on Account Aggregator and next steps, issues meetings and conference calls of the FSB and presents
relating to financing of Power Sector, strategic role of GIFT its views and comments as a Member.
IFSC in New Aatmanirbhar Bharat, inter-regulatory issues 4.3.3 The Plenary is the sole decision-making body of
of GIFT-IFSC, and the need for utilisation of the services the FSB, the Steering Committee provides operational
23
guidance between Plenary meetings to carry forward the 4.3.6 For 2023, it is also proposed to work towards
directions of the FSB and prepare the Plenary meetings developing a reporting framework for mitigating system-
in order to allow the Plenary to efficiently fulfil its mandate, level vulnerabilities for the financial sector from cyber risks,
Standing Committee on Standards Implementation (SCSI) especially through greater convergence in cyber incident
is responsible for monitoring the implementation of agreed reporting and coordination of relevant definitions and
FSB policy initiatives and international standards, and the terminologies. As a member country, India has been
Standing Committee on Budget and Resources (SCBR) actively participating in the FSB work to strengthen the
is responsible for assessments of the resource needs of financial sector’s cyber resilience. The FSB, Basel
the FSB Secretariat taking into account the current Committee for Banking Supervision (BCBS), and
mandate, the work programme and emerging demands. Committee on Payments and Market Infrastructures
The Regional Consultative Group on Asia (RCG Asia) is (CPMI), among others, including the G20, have focused
one of the 6 regional groups established by FSB in 2011 on developing a common lexicon (terminology) and
to expand upon and formalise the FSB’s outreach activities approach to the regulation and supervision of cyber risk
beyond the membership of the G20 and to reflect the global management in financial institutions.
nature of the financial system through interaction with the 4.4. Financial Sector Assessment Programme
non-members. Secretary of the Department of Economic (FSAP)
Affairs represents India in the FSB Plenary, Steering 4.4.1 FSAP is a quinquennial exerci se joi ntly
Committee (2021-2023) and in the two out of the four FSB conducted by IMF and World Bank (WB) and involves a
standing Committees, namely, the Standing Committee comprehensive and in-depth analysis of a country’s
on Standards Implementation(SCSI) and the Standing financial sector to assess financial stability and financial
Committee on Budget and Resources(SCBR). Secretary sector development. India underwent its first FSAP
(Economic Affairs) also represents India in the Regional exercise in 2011-12 and the second FSAP in 2017.
Consultative Group on Asia (RCG Asia). Chairman, SEBI, Department of Economic Affairs, in close coordination with
and the Deputy Governor (DG), RBI are the other two financial sector Regulators and Ministries/Departments
members from India in the FSB Plenary as well as in the concerned, facilitates and coordinates all matters related
RCG Asia. The DG (RBI) represents as a Member from to FSAP undertaken for India, including following up on
India in the other two Standing Committees of FSB, the recommendations of FSAP. Subsequent to the FSAP
namely, Standing Committee on Assessment of exercise in 2017, the IMF and the World Bank published
Vulnerabilities (SCAV) and Standing Committee on their reports, including the Financial System Stability
Supervisory and Regulatory Cooperation (SRC). He also Assessment Report (FSSA)(along with IMF Press
represents India in the Steering Committee that provides Release, Staff Supplement and Statement of India’s
operational guidance between Plenary meetings to carry Executive Director in IMF) and Financial Sector
forward the directions of the FSB, promotes coordination Assessment (FSA) report, respectively in December, 2017
across the Standing Committees and coordinates and on their respective websites, followed by a few Detailed
conducts reviews of the policy development work of the Assessment Reports (DARs) and Technical Notes on
international standards setting bodies. selected topics. Department of Economic Affairs has been
4.3.4 During the year 2022-23, meetings of the FSB following up with the Ministries/ Departments/ Regulators
Plenary were held on 07th April 2022, 30th June 2022, 29th concerned for examination and suitable implementation
September, 2022, 04th November, 2022 and 05th-06th of the recommendations. The next FSAP exercise is
December 2022. SCSI virtual and hybrid meetings were tentatively planned to be held in 2024.
held on 18th May, 2022, 07th September, 2022, 05th October, 4.5. Macro Financial Monitoring Group (MFMG)
2022 and 22nd November, 2022. Besides, two virtual 4.5.1 The Macro Financial Monitoring Group has been
meetings of the RCG Asia were held on 28th May, 2022 set up in 2012 under the Chairmanship of the Chief
and 03rd November, 2022. FSB’s Emerging Market and Economic Adviser. The Group aims at keeping track of
Developing Economies (EMDEs) Forum meeting was held the macroeconomic and financial developments, identifying
on 05th December, 2022 to discuss issues of common vulnerabilities, and providing early warning signals. The
interest across EMDEs and receive EMDEs’ feedback on Group has held 24 meetings till date. The last meeting of
the FSB’s work. All these meetings were attended by the MFMG was held on August 25, 2021 under the
representatives of DEA at suitable levels. chairmanship of the CEA which was attended by Senior
4.3.5. As India has assumed G20 Presidency in 2023, officials of the Ministry of Finance; Senior Resident
several meetings were organised with FSB to decide upon Representative, IMF India; and officials of financial sector
the deliverables under financial sector issues under India’s regulators. The Group discussed several contemporary
G20 Presidency. Further, continuous engagement was financial sector issues.
maintained through various virtual meetings / conference 4.6. Computer Security Incident Response Team-
calls of Plenary, SCSI, RCG, etc. and inputs on surveys Finance Sector (CSIRT-Fin)
and reports circulated by FSB were provided in consultation 4.6.1 The Computer Security Incident Response Team-
with the regulators. Finance Sector (CSIRT-Fin) has been set up on 15th May
24
2020 as a unit of the Indian Computer Emergency 5. Financial Sector Reforms and
Response Team (CERT-In) within the Ministry of Electronics Legislation Division
and Information Technology (MeitY). CSIRT-Fin is 5.1 Introduction
responsible for coordinating and supporting the response 5.1.1 The Financial Sector Legislative Ref orms
to cybersecurity events or incidents within the financial Commission (FSLRC), set up on 24th March, 2011 for re-
sector. CSIRT-Fin is the incident response force which writing the financial sector laws to bring them in harmony
focuses on mitigation processes, providing on-site with the current requirements, submitted its Report to the
awareness, expertise, and recovery oversight. CERT-In is Government on 22nd March, 2013. The Report is in two
parts: Volume I titled “Analysis and Recommendations”
providing the requisite leadership for the operations of
and Volume II titled “Draft Law” consisting of the draft Indian
CSIRT-Fin under its umbrella. The strategic direction is Financial Code (IFC). The Commission, inter alia,
provided through a strategic advisory committee co-chaired recommended a non-sectoral, principle-based legislative
by Secretary (DEA) and Secretary (MeitY) having architecture for the financial sector, by restructuring
representation from DEA, DFS, NSCS, CERT-IN, NCIIPC existing regulatory agencies and creating new agencies,
and financial sector regulators. wherever needed, for better governance and accountability.
4.6.2. The 2nd Strategic Advisory Committee meeting of 5.1.2 A new Division, namely, FSLRC Cell was created
in the year 2013 to process the implementation of the
the CSIRT-Fin was held on 20th January 2022. In this
FSLRC Report with the following mandate:
meeting, the Strategic Advisory Committee deliberated on
various mandates for CSIRT-Fin including governance a. To firm up the views of the Government on the
oversight and decisions for effective coordination amongst recommendations of the FSLRC following due
stakeholders along with their roles and responsibilities. consultative process with all the concerned
The Committee discussed on the strategic roadmap and stakeholders, Regulators/Ministries/State
Governments/Union Territories and public at large;
milestones to be achieved in the next 6 months for CSIRT-
Fin. The Committee was also informed on the cyber b. To implement the recommendations of the
security posture of the financial sector. FSLRC, duly approved by the Government; and
4.7. Critical Information Infrastructure (CII) c. To deal with administrative and establishment
identification in Financial Sector matters relating to FSLRC.
5.1.3 In September, 2017, it was decided to rename
4.7.1 The FS&CS Division collaborates regularly with
the FSLRC Division as Financial Sector Reforms and
the National Critical Information Infrastructure Protection Legislation (FSRL) Division with (i) Legislative Reforms
Centre (NCIIPC), and financial sector regulators/ and (ii) Financial Sector Reforms Sub-Divisions.
departments to identify critical information infrastructure 5.2. Fin ancial Sector L egisl ative Refo rms
(CII) in the financial sector, the incapacitation or destruction Commission- Main recommendations
of which shall have a debilitating impact on national The Report of FSLRC was placed in the public
security, economy, public health or safety. The Division domain on 28th March, 2013. The same was examined
also coordinates the declaration of systemic important and discussed in various meetings of the Financial Stability
CIIs as “protected systems”. In accordance with NCIIPC and Development Council (FSDC) chaired by the Finance
recommendations, the protected systems must apply a Minister. The recommendations of the FSLRC can broadly
higher level of security measures to ensure that the CIIs be divided into two parts - Legislative and Non-Legislative.
are effectively secured. The legislative aspects of the recommendations relate to
revamping the legislative framework of the financial sector
4.7.2 During the year 2022-23, CIIs hosted by NPCI, regulatory architecture by a non-sectoral, principle-based
SBI, LIC of India, HDFC, ICICI, Punjab National Bank, Bank approach and by restructuring existing regulatory agencies
of Baroda and Union Bank of India have been declared as and creating new agencies wherever needed.
“Protected Systems”. In addition, the identification 5.3. Recommendati ons on the Fi nancial
procedure has been improved, and a sizeable number of Regulatory Architecture
information technology (IT) systems in the BFSI sector The Commission has recommended a seven
have been notified as CIIs. The process of CIIs identification agency regulatory architecture namely, Reserve Bank of
in the financial sector, their declaration through Gazette India, Unified Financial Agency, Financial Sector Appellate
notification and further assessment for validation of Tribunal, Resolution Corporation, Financial Redress
“Protected Systems” after every two years is ongoing. Agency, Public Debt Management Agency and Financial
Stability and Development Council in the draft law- Indian
Further, continuous coordination with relevant agencies
Financial Code to replace a number of existing laws. The
and the financial sector regulators was done through virtual non-legislative aspects of the FSLRC recommendations
meetings and onsite visits to strengthen the cyber are broadly of the nature of governance enhancing principles
resilience of the financial sector. for stronger consumer protection and greater transparency
25
in the functioning of financial sector regulators. It features 2014. These Task Forces submitted their reports
following set of changes, which renders it implementable: during June 2015. Another Task Force for creating
i. The RBI will continue to exist, although with a sector-neutral Financial Redress Agency (FRA)
modified functions; that was set up on 5th June, 2015 as announced
ii. The existing SEBI, FMC, IRDA, and PFRDA will in the Budget Speech 2015-16 submitted its
be merged into a new UFA; Report on 30th June, 2016. Its Report is under
examination.
iii. The existing SAT will be subsumed into the FSAT;
v. Apart from inviting comments on the FSLRC
iv. The existing DICGC will be subsumed into the Report and the Draft IFC, the Department of
Resolution Corporation; Economic Affairs in collaboration with the Institute
v. A new FRA will be created; of Company Secretaries of India (ICSI) organised
vi. A new PDMA will be created; and a number of workshops and seminars on specific
vii. The existing FSDC will become a full-fledged areas of the IFC for building consensus on the
statutory agency, with modified functions. Draft. Work on fine tuning the Draft IFC with
5.4. Imp lementati on Status of the comments of stakeholders suitably incorporated
recommendations of the FSLRC to make it legally flawless was initiated and the
Draft IFC was revised in the light of the comments
5.4.1 The status and next steps on the implementation received and hosted on the website of the Ministry
of the recommendations of the FSLRC are as follows:- of Finance on 23rd July, 2015, inviting comments
i. As has been agreed to in the meetings of the of stakeholders by 8th August 2015. Moving the
FSDC, the financial sector regulatory agencies Indian Financial Code (IFC) recommended by the
are implementing the governance enhancing, non- FSLRC in totality, after due consideration, is likely
legislative recommendations of the FSLRC on to take time. Key aspects of the IFC being fast-
voluntary basis. A MIS Portal was developed and tracked are as follows:-
inaugurated by FM in May, 2015 to put in place a. Financial Sector Appellate Tribunal:
an appropriate mechanism to measure the The Securities and Exchange Board of India
benchmark compliance for each Regulator/Board. Act, 1992 was amended through the Finance
The MIS Portal has been modified in consultation Act 2017, for upgrading / enhancing the
with the Regulators to remove several difficulties capacity of the Securities Appellate Tribunal
f aced by the Regulators in updating the (SAT) to hear appeals relating to the Insurance
compliance status on the Portal. The Regulators and Pension sectors also and for providing
have started submitting their responses on the for multiple benches. FM Division, DEA, is
MIS Portal. assigned the task to undertake necessary
ii. A Financial Sector Regulatory Appointment steps for the setting up of PDMA.
Search Committee (FSRASC) has been created b. Establishment of a comprehensive resolution
for recommending names of suitable persons for framework for the financial sector:
appointment to board level positions of financial An announcement was made in the Budget
sector regulatory bodies with the approval of the Speech of 2016-17 to frame a comprehensive
ACC on 24th November, 2015. The FSRASC has Code on Resolution of Financial Firms and
been reconstituted on 9th June, 2017. This would introduce it as a Bill in the Parliament during
bring about uniformity in the selection of board 2016-17. The Financial Resolution and
members of financial sector regulators, which was Deposit Insurance Bill, 2017 (the Bill) was
one of the recommendations of the FSLRC on introduced in the Lok Sabha on 10th August
the broad structure of such regulators. 2017 and referred to a Joint Committee of
iii. As regards the establishment of a unified financial Parliament for making a Report to the
agency for the organised trading, by way of an Parliament. The Bill provided for establishment
incremental reform effort, the Forward Markets of a specialized Resolution Regime for
Commission (FMC) has been merged with the financial sector entities. The enactment of the
Securities and Exchange Board of India (SEBI) Bill would have empowered the Resolution
with effect from 28th September, 2015 to achieve authority to contribute to the stability and
the convergence of regulations of the securities resilience of the financial system by carrying
market and the commodity derivatives markets. out speedy and efficient resolution of financial
FMC stands abolished and the Forward Contracts firms in distress, providing deposit insurance
(Regulation) Act, 1952 has been repealed. to consumers of certain categories of financial
However, there is no consensus on merging the serv ices, monitoring the Systemically
existing financial sector regulators into a single Important Financial Institutions and protecting
the consumers of financial institutions and
Unified Financial Agency. public funds to the extent possible. The FRDI
iv. The Task Forces for transforming the existing Bill was withdrawn from the Parliament on 7th
Securities Appellate Tribunal (SAT) into the August, 2018 owing to concerns raised by
Financial Sector Appellate Tribunal (FSAT) and the stakeholders’ on certain provisions of the
for establishing new agencies namely, Resolution FRDI Bill for comprehensive re-consideration
Corporation (RC), Public Debt Management and re-examination.
Agency (PDMA) and Financial Data Management Accordingly, work on consolidating all the
Centre (FDMC) were set up on 30th September, laws relating to resolution of financial sector
26
entities in one law and provide a specialised Committee and Terms and Conditions of their
resolution mechanism to deal with bankruptcy Appointment and factors constituting failure
situations in most of the financial sector to meet inflation target under the MPC
ent ities, such as, banks, i nsurance Framework have also been notified in the
companies, FMIs and select financial sector Gazette of India, Extraordinary on June 27,
entities is under examination. 2016. The Government, in consultation with
c. Establishment of an independent Financial the RBI, notified the inflation target in the
Data Management Centre: Gazette of India Extraordinary dated August
A centralised data centre named as Financial 5, 2016, for the first five-year period ending
Data Management Centre (FDMC) is on the March 31, 2021. Keeping in mind the
proposed to be set up under the aegis of the primacy of price stability in the wake of
Financial Stability and Development Council supporting macroeconomic policies to boost
(FSDC) that will be used for analysis of the economic recovery from COVID-19
f inancial stability and related issues. induced slowdown, and to further strengthen
Subsequent to the FSLRC recommendation credibility of monetary policy in guiding the
on creation of a statutory Financial Data inflation expectations in the economy, the
Management Centre (FDMC), Government Government, after consultation with the RBI,
constituted a Task Force on FDMC which, has decided to continue with the existing
inter alia, recommended to establish the inflation target for the next five-year period
FDMC. Strengthening the institutional starting from April 1, 2021 to March 31, 2026,
mechanism for financial stability analysis is as under:
being examined by the FS&CS Division, Inflation Target : 4 per cent.
DEA. Upper tolerance level : 6 per cent.
d. Establishment of an independent Public Lower tolerance level : 2 per cent.
Debt Management Agency: The Inflation target has been notified by the
An independent Public Debt Management Gov ernment in the Gazette of India,
Agency (PDMA) is proposed to be set up for Extraordinary dated March 31, 2021.
managing Government‘s debt and cash (iii) As per the provision of section 45ZB of the RBI
balance, etc. To this effect, the Government Act, 1934, out of the six Members of Monetary
set up a Public Debt Management Cell Policy Committee, three Members will be from
(PDMC) on 4th October, 2016, as an interim
arrangement bef ore setting up of an the RBI and the other three Members of Monetary
independent and statutory debt management Policy Committee (MPC) will be appointed by the
Agency in due course. Budget Division, DEA, Central Government. Accordingly, the MPC was
is assigned the task to undertake necessary constituted and notified in the Gazette of India
steps for the setting up of PDMA. Extraordinary dated September 29, 2016. MPC
e. Institutionalised and Statutory Monetary was re-constituted and notified in the Gazette of
Policy Framework: India Extraordinary dated October 5, 2020 as
(i). FSLRC has recommended establishment of follows:
a statutory and an institutionalized framework a. Governor of the Bank—Chairperson, ex officio;
to conduct monetary policy, including the b. Deputy Governor of the Bank, in charge of
creation of a Monetary Policy Committee that Monetary Policy—Member, ex officio;
would determine the policy interest rate. The c. One officer of the Bank to be nominated by the
Reserve Bank of India Act, 1934 (RBI Act) Central Board—Member, ex officio;
has accordingly been amended by the
Finance Act, 2016, to provide for a statutory d. Dr. Shashanka Bhide, Senior Advisor, Research
and an institutionalized framework for a Programmes, National Council of Applied
Monetary Policy Committee, for maintaining Economic Research (NCAER), —Member
price stability, while keeping in mind the e. Dr. Ashima Goyal, Professor, Indira Gandhi
objective of growth. The Monetary Policy Institute of Development Research (IGIDR), and
Committee is entrusted with the task of fixing Part Time Member, Prime Minister’s Economic
the benchmark policy rate (repo rate) required Advisory Council (PMEAC) — Member
to contain inflation within the specified target f. Dr. Jayanth R. Verma, Professor, Indian Institute
level. A Committee-based approach for
determining the Monetary Policy will add value of Management (IIM), Ahmedabad — Member
and transparency to monetary policy (iv). The Members of the Monetary Policy Committee
decisions. The meetings of the Monetary referred to in sub-paragraphs (d) to (f) above would
Policy Committee shall be held at least 4 hold office for a period of four years or until further
times a year and it shall publish its decisions orders, whichever is earlier.
after each such meeting. (v). The Reserve Bank of India Monetary Policy
(ii). Provisions of the RBI Act relating to the Committee and Monetary Policy Process
chapter on Monetary Policy have been Regulations were framed and notified on July 14,
brought into force through a Notification in the 2017 for ensuring full operationalisation of the
Gazette of India Extraordinary on June 27, MPC. The Regulations were subsequently laid in
2016. The Rules governing the Procedure for the Lok Sabha on August 4, 2017 and Rajya Sabha
Selection of Members of Monetary Policy on August 8, 2017.
27
6. Infrastructure Policy and Planning infrastructure investment; Infratech; and identifying

Division innovative instruments for mobilizing financial resources
Infrastructure Policy & Planning (IPP) Division is for infrastructure investment. The working group is co-
headed by Shri Solomon Arokiaraj, Joint Secretary. chaired by Australia and Brazil.
The Division has the following Units: Under the 2022 Indonesian G20 Presidency, a
Finance Unit (FU) total of 4 meetings were organized in 2022, out of which,
Policy & Planning Unit (PPU) two meetings were attended virtually, and the remaining
were attended in- person. In the 2022 IWG meetings,
Capacity Building Unit (CBU)
Shri Peeyush Kumar, Joint Secretary, IPP Division, DEA
Each Unit is headed by Advisor/Director and represented Ministry of Finance as Head of the Indian
assisted by Deputy Director / Assistant Director etc. Delegation and Shri Aman Garg, Director, IPP Division,
1. Finance Unit (FU) : DEA participated as a delegate.
1.1 Major Functions : As part of the 2021 Inf rastructure W ork
Finance Unit deals with financing requirements of Programme, the Indonesian G20 Presidency focussed
infrastructure including conceiving new initiatives related its discussions on scaling up infrastructure investments
to infrastructure financing and promotion of investment to support sustainable dev elopment and digital
in infrastructure sectors. The Unit deals with: transformation. The underlying principle for selection of
 Financi al Sector Ref orms f or long-t erm these themes was to narrow the investment gap in
availability of financing from Domestic sources sustainable and digital infrastructure and the 2022 IWG
& Foreign capital, Dev elopment Finance discussed approaches to address this challenge.
Institutions and Financial Markets. India mainly supported the workstreams,
 Infrastructure Financing from Fiscal resources, however, ref lected its recommendations on the
PSE’s IEBR and Private sector, including from deliverables. India nominated itself to be a member of
National Monetization Plan the Technical Working Group to design the flagship
 Matters related to infrastructure financing, deliverable of “Framework to scale up private sector
including dev elopment of Inf rastruct ure participation in sustainable infrastructure”. India
Instruments and promotion of investments in suggested relevant interventions to make the Framework
infrastructure sectors. outcome oriented. On the QII indicators, India submitted
 Matters relating to Infrastructure Debt Funds 14 recommendations, out of which 13 were accepted and
(IDFs), Real Estate Investment Trusts (REITs)/ accommodated by the IFC and Indonesian Presidency.
Infrastructure Investment Trust (InvITs), Tax Free India, in the fourth meeting of the Infrastructure Working
Bonds, Municipal Bonds, Sovereign Green Group, also reflected its proposed 2023 Infrastructure
Bonds and ot her instruments meant f or Agenda, and outlined how it is strategically aligned with
infrastructure financing. the work done by previous presidencies.
 Matters relating to SPV for Credit Enhancement
First Infrastructure Working Group under Indian
of Infrastructure Projects and New Credit Rating
Presidency was held in Pune in January 2023. The
System for Infrastructure.
meeting was attended 64 delegates from by 18 member
 All International engagement on infrastructure
countries, 8 guest countries and 8 international
financing (other than PPPs).
organisations.
 Matters relating to issues of Municipal Bonds by
Urban Local Bodies (ULBs) for PPP and Non- 1.2.2 Real Estate Investment Trusts (REITs)/
PPP Projects. Infrastructure Investment Trust (InvITs)
 Model Tripartite Agreements (MTA) for sectors REITs/ InvITs are trust-based structures that
such as Road, Ports, Airports. maximize returns through efficient tax pass-through and
 Matters relating to Infrastructure Working Group improved governance structures. Guidelines/Regulations
(IWG) of G-20. for InvITs and REITs were notified by SEBI on 26
September, 2014. SEBI regulations permit InvITs/REITs
 Matters relating to meetings of Board of Directors
of IIFCL, AI AHL, NIIF TL as JS (IPP) is to have a single tier structure comprising the Trust and
Government nominee on its Board of Directors; Special Purpose Vehicle (SPV) or a two-tier structure
comprising the Trust, Holdco (Holding Company) and
1.2 Major Policy Initiatives/ Achievements: SPV. Presently, there are 19 registered InvIT’s with SEBI
1.2.1 G20 Infrastructure Working Group (G20-IWG) and 13 are operational InvITs. InvITs have raised
Infrastructure Working Group (IWG) is a working cumulative funds of about INR 79,482.58 crores till date
group under the G20 Finance Track that drives G20’s either through public issue, private placement, or rights
infrastructure agenda. The IWG deliberates on various issue. Similarly, total 3 REITs have raised cumulative
aspects of infrastructure investments including developing funds of about INR 15,249.99 crores in the commercial
infrastructure as an asset class; promoting quality real estate segment through public issue.
28
1.2.3 Infrastructure Debt Funds (IDFs) (erstwhile Delhi Mumbai Industrial Corridor
IDFs were created essentially to act as vehicles Development Corporation (DMICDC) Limited),
for refinancing existing debt of infrastructure companies, National Industrial Corridor Development and
thereby creating fresh headroom for banks to lend to fresh Implementati on Trust (NICDIT) National
infrastructure projects. IDFs were expected to channelize Highways Authority of India (NHAI), Digital
long term funds from insurance and pension funds, Com munications Com missi on (erstwhile
sovereign wealth funds etc to supplement lending for Telecom Commission)
infrastructure projects by commercial banks which are  Ministries/Departments: M/o Road Transport &
increasingly being constrained by their asset-liability Highways, M/o Ports, Shipping & Waterways, M/
mismatch and exposure limits. o Civil Aviation, M/o Railways, M/o Housing and
IDFs are set up by sponsoring entities either as Urban Affairs, Dept. Of Telecommunications, and
NBFCs – which are regulated by the RBI and as Mutual Dept. Of Posts.
Funds which are regulated by SEBI. As on date, four IDFs 2.2 Major Policy Initiatives/ Achievement:
under NBFC route and two under MF route are in 2.2.1 Harmonized Master List of Infrastructure Sub-
operation. sectors
1.2.4 Sovereign Green Bond Framework The HML was formulated in 2012 under the broad
In keeping with the ambition to significantly framework, developed by the committee chaired by Dr.
reduce the carbon intensity of the economy, the Union C. Rangarajan. The inclusion of any sector in the HML
Budget 2022-23 announced the issue of Sovereign Green enables it to avail infrastructure lending at easier terms
Bonds (para 103). with enhanced limits, access to larger amounts of funds
The budget para 103 is reproduced as below: as External commercial Borrowings (ECB), access to
‘As a part of the government’s overall market longer tenor funds from insurance companies and
borrowings in 2022-23, sovereign Green Bonds will be pension funds and be eligible to borrow from India
issued for mobilizing resources for green infrastructure. Infrastructure Financing Company Limited (IIFCL) etc.
The proceeds will be deployed in public sector projects In October, 2022, 2 sub-sectors i.e. “Data Centre” and
which help in reducing the carbon intensity of the “Energy Storage System” have been included in
economy.’ Harmonised Master List of Infrastructure Sub-sector. The
Towards this agenda, the Finance Unit worked updated HML list now includes 37 Infrastructure sub
on a Green Bond Framework that sets f orth the sectors under 5 categories i.e. 1. Transport and Logistics,
obligations of the Government of India as a Green Bond 2. Energy, 3. Water and Sanitation, 4. Communication
issuer. The Framework applies to all sovereign Green and 5. Social and Commercial Infrastructure.
Bonds issued by the Government of India. The framework
2.2.2 National Infrastructure Pipeline (NIP)
is designed to comply with four components and key
recommendations of the International Capital Market National Infrastructure Pipeline (NIP) aims to
Association (ICMA) Green Bond Principles (2021). These improve project preparation and attract investment into
principles recommend delineation of a clear process and infrastructure. To draw up the NIP, a High-Level Task
disclosure by the issuer to enable the investors and banks Force was constituted under the chairmanship of the
and others to understand the characteristics of the green Secretary, Department of Economic Affairs (DEA). The
bond. Final Report on National Infrastructure Pipeline for FY
2. Policy & Planning Unit (PPU) 20-25 of the Task Force was released by the Hon’ble
2.1 Major Functions: Minister for Finance & Corporate Affairs, Smt. Nirmala
 Infrastructure Investment Policy Sitharaman on 29th April, 2020.
 Institutional Mechanism on the Harmonized NIP has been made on a best effort basis by
Master List of Infrastructure Sub-sectors aggregating the information provided by v arious
 National Infrastructure Pipeline (NIP) planning, stakeholders including line ministries, departments, state
periodic review and updating (Aligning with Gati- governments and private sector across infrastructure sub-
Shakti vision, prioritizing the projects and sectors, as identified in the Harmonized Master List of
Anchoring to India@2047 vision) Infrastructure. All projects (Greenfield or Brownfield,
 NIP monitoring framework & NIP Implementation under conceptualization or under implementation or under
 Analysing non-PPP inv estment proposals Development) of project cost greater than Rs. 100 crore
concerning Road Transport & Highways, Ports, per project were sought to be captured. DEA works in
Shipping, Inland Water Transport, Railways, close coordination with Invest India, line Ministries/
Telecommunications, Civil Aviation & Urban Departments and State Governments to monitor the
Development sectors progress of projects under the NIP.
 Institutions: National Industrial Corri dor NIP was launched with 6,835 projects worth
Development Corporation (NICDC) Limited around 111 Lakh Crore, which has expanded to over 8,900
29
projects covering 37 sub-sectors. NIP portal is being Mumbai, 9th September, 2022 at Chandigarh and 30th
maintained and regularly updated by Invest India Grid September, 2022 at Varanasi.
(IIG) in consultation with the stakeholders. The same may Further, a workshop on Track 2 - “Private
be accessed at: https://indiainvestmentgrid.gov.in/
Investment in Manufacturing, Housing and Real Estate and
national-infrastructure-pipeline.
Services” of Sub-Theme 2 - ‘Infrastructure & Investments’
2.2.3 Accelerating capital expend iture by under pillar 1 - ‘Growth and Job Creation’ in the run-up to
Infrastructure Ministries the 2nd National Conference of Chief Secretaries, was
The government has stepped up its preparations organised on 1st December, 2022 at Guwahati, Assam
to bring India among the top three global economies and by the track-lead State ‘Assam’ and the Policy & Plmming
inch closer to the status of a developed nation by the Unit of ‘Department of Economic Affairs’, Gol, and
lOOth year of its Independence. As part ofindia’s vision
witnessed participation from 19 State Governments &
2047, the Centre has stressed upon the importance of
increasing capital expenditure to crowd-in private Union Territories
investments and enable extraordinary increase in the 3. Capacity Building Unit (CBU)
economic growth. 3.1 Major Functions:
Regular meetings of the Council of Ministers have
Capacity Building Unit (CBU) CBU is entrusted
been conducted in September, October, and November
with the work related to Capacity Building in Central
2022 to closely monitor capital expenditure progress
Ministries/State Governments and other Agencies through
of different ministries, departments, and states against their
respective projected target for FY 2022-23. During trainings/workshops/seminars for project preparation,
these meetings, it was emphasized that the concerned design and structuring, project appraisal, project
ministries and CPSEs should ensure full utilization of f inanci ng, pre-project act iv it ies, procurement,
the Capex outlays during the current year and plan well implementation planning and management etc.
in advance for implementation during the next year. Considering the need for a larger programmatic
The result of the efforts is visible in Ministries/ approach to improve capacity it is desirable to provide
Departments capex spending till January 2023 in Current training/workshop for officials executing projects and
Financial Year (CFY), which has been Rs. 5.93 lakh crore drafting concessions/contracts etc. in order to have
(~79% achieved against the Budgeted Capex of 7.5 lakh
rigorous understanding of the frameworks, principles,
crore) as against Rs. 4.42 lakh crore for the same period
regulations guiding our Infrastructure ecosystem. Such
in FY 21-22 (i.e., till January 2022). The actual expenditure
in CFY is also ~34% higher than the expenditure in FY a programmatic training design is required to not only
21-22 for the corresponding period. enhance the appraisal of capacity of the officials working
at the ground lev el but also support i n bet ter
2.2.4 Infrastructure Investment Proposals
conceptualization and structuring of projects. This
A total of 90 DIB/SFC Memorandum, 9 PJB/EFC
becomes much more important for Public Private
Mem orandum, 11 proposals of M/ o Shi pping’s
Partnership (PPP) projects where expertise is required
Empowered Committee and 28 CCEA/Cabinet/GoM
Notes received from line Ministries/Departments i.e. in areas such as PPP Structuring, Project Appraisal and
MoRTH, MoHUA, M/o Shipping, M/o Railways, DoT, Approval Process, Value for money, cost benefit analysis,
MoCA and Dept. of Ports have been examined. All these Project Selection approaches, Data analysis and Legal
Investment Proposals were related to a number of bidding clauses etc.
infrastructural projects, implementation of which would play The capacity building programmes are also
an important role in improvement in the infrastructure instrumental in stirring necessary dialogue between
and would automatically bring socio economic growth
Ministries and State Governments to learn from pitfalls
in the region where the project would be implemented.
and success of each other’s project experiences.
2.2.5 Workshops with States in Infrastructure
development This Financial year (FY 2022-23), as on 7th
February,2023, 26 training programs have been
DEA is conducting workshops with States to
conducted by DEA in association with top Institutions like
explore the progress in infrastructure development
IIMs, ISB, AJNIFM, World Bank, IIBF etc. Total of 839
through existing required initiatives under Infra Financing,
Infra Implementation and PPP encouragement. The officers comprising of 528 officers from 22 Central
workshop aims to deliberate on measures to attract Ministries and 15 CPSEs and 311 officers and from 29
private financing and understand ground issues faced State Governments and Union Territories from across the
. by implementing agencies in undertaking large country have participated in these trainings. Over 1490
infrastructure projects. During the year 2022, DEA has nominations have been received till date for these
conducted 3 workshops i.e. on 22nd August, 2022 at trainings this financial year.
30
7. Investment and Digital Economy Division Automatic route. FDI under the automatic route does not
7.1. Investment Division : lnvestment Division require prior approval either by the Government of India
comprises of four different sections. The major functions or the Reserve Bank of India (RBI). Investors are only
of the lnvestment Division are as under: required to notify and file documents with the concerned
Regional Offices of RBI. Under the Government approval
To provide policy support on Foreign/ Domestic route, applications for FDI proposals are considered and
lnvestment policies including new policy initiatives in approved by the respective subject matter Ministries on
Foreign Direct lnvestment (FDl)/Domestic lnvestment (Dl) the Foreign Investment Facilitation Portal (FIFP), the new
Policy besides FDI/Dl policy clarifications & related online single point interface of the Government of India
matters for investors to facilitate Foreign Direct Investment.
Foreign Exchange aspect related to Gold DEA is entrusted with the power to approve
including Gold Monetisation Scheme, Indian Gold Coins FDI proposals (as per the extant FDI Policy, 2020) for:
etc.
(a) “Financial services which are not regulated
To coordinate with Ministry of Steel, Ministry of by any Financial Sector Regulator or where
Micro, Small & Medium Enterprises (MSME) , Ministry of only part of the financial services activity is
Textiles, Ministry of Electronic and lnform ation regulated or where there is doubt regarding
Technology, Department of Chemical and Petro the regulatory oversight”; and
Chemicals, Department of lnvestment and Public Asset (b) Applications for foreign investment into a
Management (DIPAM), : Department for Promotion of Core Investment Company or an Indian
lndustry & lnternal Trade (DPllT), Department of Public company engaged only in the activity of
Enterprises (DPE), Department of Commerce and investing in the capital of other Indian
Department of Heavy lndustry on investment issues and Company/ies.
also offering them comments / suggestions on various
Government of India has reviewed the extant FDI
matters as per need of the Indian economy.
policy on various sectors and amended from time to time.
To negotiate and conclude Bilateral lnvestment Following FDI Policy reforms have inter-alia been
Treaties (BlTs) and lnvestment Chapter of FTAS/CECA/ undertaken by the Government across sectors in the
CEPA with other countries on the basis of the revised recent past:
Model Bilateral lnvestment Treaty (BlT)Text which was a. Review of the FDI policy on downstream
approved by the Cabinet on 16th December, 2015 and to investments made by Non-resident Indians
also handle the Investor State Dispute Settlement (ISDS) (NRIs):
notices/cases arising out from BITs/FTAs signed with
Foreign countries as a nodal Department in GOI. GoI vide Press Note 1 (2021) reviewed FDI policy
in relation to investments made by an Indian
Matter related to equity investments from both company owned and controlled by Non-resident
domestic and international sources for infrastructure Indians on a non-repatriation basis and in order
development in commercially viable projects, both to provided clarity on downstream investments.
greenfield and brownfield, including stalled projects b. FDI in Insurance Sector
through National lnvestment and lnfrastructure Fund
The GoI vide Press Note 2 (2021) increased the
(NllF).
permissible FDI limit from 49% to 74% in
7.2. SECTION.WISE ALLOCATION OF WORK Insurance companies along with other applicable
A) FDI AND ODI (FOREIGN DIRECT condition.
INVESTMENT & OVERSEAS DIRECT c. FDI in Petroleum and Natural Gas Sector
INVESTMENT) POLICY SECTION The GoI vide Press Note 3 (2021) permitted
The main function of FDI Policy section is to foreign investment up to 100% under the
provide policy support on Foreign Investment including automatic route in cases where the government
new policy initiatives in Foreign Direct Investment (FDI) has accorded ‘in-principle’ approval for a strategic
and FDI policy clarifications & related matters. This disinvestment of a PSU engaged in petroleum
Section primarily co-ordinates with DPIIT, DFS, RBI and and natural gas sector.
SEBI on foreign investment issues and also offers them d. FDI in Telecom Sector
comments / suggestions on any amendment in FDI policy The GoI vide Press Note 4 (2021), has permitted
as per the need of the Indian economy. It also suggests 100% FDI in telecom sector through automatic
measures for improving investment environment in India route for all telecom services permitted by DoT
with respect to FDI policy. This section also publishes except cases requiring prior governm ent
Overseas Direct Investment (ODI) outflows data across approval under the provision of para 3.1.1 in the
sectors and counties on DEA’s website on monthly basis. extant FDI policy.
To promote Foreign Direct Investment (FDI), the e. FDI in Life Insurance Corporation of India
Government has put in place an investor-friendly policy The GoI vide Press Note 1 (2022) dated
which is transparent, predictable and easily 14.03.22, Government has permitted 20% FDI
comprehensible. Except for a small negative list, most in Life Insurance Corporation of India (LIC) under
sectors have been made open for 100% FDI under the automatic route.
31
Consequently, India has recorded highest ever Regulations, 2022 had been notified in the Gazette of
annual FDI inflow of USD 84.84 billion in the India dated 22.08.2022. The copy of the notification laid
Financial Year 2021-22. The details of total FDI on table of Lok Sabha and Rajya Sabha in Winter Session
inflows reported during the last five financial years of parliament in December, 2022.The revised regulatory
are given in table 1. fram ework for overseas investment provides for
Overseas Investment Rules and Regulations Notified simplification of the existing framework for overseas
The Government of India in consultation with the investment and has been aligned with the current
Reserve Bank undertook a comprehensive exercise to business and economic dynamics. Clarity on Overseas
simplify these Overseas Investment Rules & Overseas Direct Investment and Overseas Portfolio Investment has
Investment Regulations. Final Foreign Exchange been brought in and various overseas investment related
Management (Overseas Investment) Rules and Foreign transactions that were earlier under approval route are
Exchange Managem ent (Overseas Investm ent) now under automatic route, significantly enhancing “Ease
of Doing Business”.
TABLE 1: TOTAL FDI INFLOWS DURING THE LAST FIVE FINANCIAL YEARS
S. Financial Year FOREIGN DIRECT INVESTMENT INFLOWS

No. (April-March) (Amount in US$ Billion)
Equity Inflows Reinvested Other Total FDI
FIPB unincorporated Earnings capital
bodies
1 2017-18 44.86 0.66 12.54 2.91 60.97

2 2018-19 44.37 0.69 13.67 3.27 62.00
3 2019-20 49.98 1.76 14.18 8.48 74.39
4 2020-21 59.64 1.45 16.94 3.95 81.97
5 2021-22(P) 58.77 0.91 19.35 5.81 84.84
6 2022-23 (P) 26.91 0.43 9.25 2.51 39.10
(Up to September,
2022)
Cumulative FDI inflows 618.20 20.01 199.83 49.73 887.76
in India since 2000 (up
to September, 2022)
Source: DPIIT, P: - Figures are Provisional
B) INTERNATIONAL INVESTMENT TREATIES AND the base text for replacing the existing BIPA with and for
FRAMEWORK (IITF) having new agreements.
The main function of IITF Section is to negotiate Achievements

and conclude Bilateral Investment Treaties (BITs) with 2. Based on India’s Model BIT 2015, India has
other countries on the basis of the revised Model Bilateral
signed the following Treaties/Agreement with other
Investment Treaty (BIT) Text which was approved by the
Cabinet on 16 th December, 2015. This section also countries/Jurisdictions:
handles the Investor State Dispute Settlement (ISDS) 3. India is currently discussing and negotiating Bilateral
notices/cases arising out from BIT/FTAs signed with Investment Treaties at various stages with U.K, Canada,
foreign countries as a nodal department in GoI. The European Union, Australia, Iran, Morocco, UAE,
Switzerland, Oman, Israel, Cambodia, Qatar, Tajikistan,
Model BIT text approved in 2015, aims to provide
Russia, Saudi Arabia, Mexico, Hong Kong, Mauritius, San
appropriate protection to foreign investors in India and
Marino, Argentina, Armenia, Azerbaijan, Ethiopia, Bolivia,
Indian investors in the foreign country, in the light of Cote d’Ivoire, Kuwait, Philippines, Zimbabwe, Egypt,
relevant international precedents and practices, while Thailand, Turkmenistan and a Bilateral Investment
maintaining a balance between investor’s rights and Agreement with Taipei Economic and Cultural Centre
Government obligations. The Indian Model BIT text is (TECC).
32
S.No. Country and Name of Agreement Date of Date of Present

Agreement Enforcement Status
1. Belarus: Bilateral Investment Treaty 24th September, 5th March, Active
2018 2020
th
2. Brazil: Investment Cooperation & 25 January, 2020 To be ratified
Facilitation Treaty
th
3. Kyrgyz Republic: Bilateral Investment 14 June, 2019 To be ratified
Treaty
th th
4. Bilateral Investment Agreement 18 December, 14 February, Active
between between India Taipei 2018 2019
Association (ITA) in Taipei and Taipei
Economic and Cultural Center (TECC) in
India
5. Uzbekistan: Bilateral Investment Treaty - - Negotiations

concluded
4. In May 2022 India has also signed Investment Incentive and, over time to reduce the country’s dependence on
Agreement with Government of USA. the import of gold, Government launched the Gold
C) FOREIGN TRADE & SERVICES (FT) SECTION Monetisation Scheme on 5th November, 2015.
The main function of Foreign Trade (FT) section The Gold Monetization Scheme comprise of the
of investment division is dealing with the Policy matters ‘Revamped Gold Deposit Scheme’ and the ‘Revamped
related to Gold viz. Gold Monetisation Scheme (GMS), Gold Metal Loan’ scheme, linked together. The minimum
deposit at any one time shall be 10 grams of raw gold
Indian Gold Coin (IGC) and Gold Metal Loan (GML),
(bars, coins, jewellery excluding stones and other metals).
Drafting Policy for promotion of Gold as a Financial Asset
There is no maximum limit for deposit under the Scheme.
Class and providing advice on references received from
Depositors may avail two options for deposit:
Ministry of Commerce, Heavy Industries and MSME and
coordination within Investment Division.  Short term bank deposit (1-3 years) and
2. Gold Monetization Scheme: With a view to mobilize  Medium and Long Term deposit (5-15 year)
the idle gold held by households and institutions in the Till November 2022, approximately 27,530 kilograms
country; and put this gold to productive use, e.g., by of gold have been mobilised under GMS. The details are
making available gold for the gems and jewellery sector; as under:
Details of Gold Mobilized under GMS (5th Nov, 2015 to 30 Nov, 2022)
Sl.No. Types of Deposit Deposited gold as on 30.11.2022 (in Kgs)

1 Cumulative Quantity of Gold (in Kgs) 27,530
a Short Term Gold Deposit 7,366
b Medium Term Gold Deposit 8,082
c Long Term Gold Deposit 12,082
2 Number of participating Banks 10

3 Number of depositors 4382
33
3. Indian gold Coin 2021 265.3 Kgs of Indian Gold Coin has been sold out
The Indian Gold Coin (IGC) is manufactured out as per summary placed below. Thereafter, there were no
of dom estic gold (received under GMS) and is
domestically manufactured (Make in India) standard gold sales in the month of September 2021. & onwards as the
coins/bars in different denominations. Till 31st August, MMTC has no coins to sell.
IGC SALES Details (5th Nov 2015 to 31 August 2021)

Turnover (In Weight Sold Qty. Sold Denomination-wise details ( in number)
crores) (In Kgs) (in Nos.)
5 GM 10 GM 20 GM
Grand 265.3 793.1 87,740 38,202 38,865 10,673
Total
D) DOMESTIC INVESTMENT& DIGITAL ECONOMY SECTION exceeding its original target of USD 2.1 billion. Alongside
GOI, the investors in the NIIF MF include Abu Dhabi
A. National Investment and Infrastructure Fund (NIIF)
Investment Authority (ADIA), UAE; Temasek, Singapore;
1. Background: AustralianSuper, Australia; Ontario Teachers’ Pension
The establishment of the NIIF was announced vide Plan (OTPP), Canada; CPP Investments (CPPIB),
para 47 of the Budget Speech on 28 February 2015 and Canada; PSP Investments, Canada; US International
Development Finance Corporation (DFC), United States;
approved by the Union Cabinet on 28 July 2015. It was
and select domestic institutional investors including HDFC
envisaged that the NIIF would attract equity investments Limited, HDFC Life Insurance, HDFC Asset Management
from domestic and international sources for infrastructure Company, ICICI Bank, Kotak Life Insurance and Axis
development in commercially viable greenfield and Bank.
brownfield projects, including stalled projects. It could also The Fund’s current portfolio consists of the following
consider other nationally important projects, for example, investments:
in manufacturing, if commercially viable. NIIF can also
a. Hindustan Infralog Private Limited (HIPL) &
invest in the corpus created by Asset Management
Hindustan Ports Private Limited (HPPL): NIIF MF and
Companies (AMCs) for investing in private equity. DP World, Dubai, have set up a ports and logistics
Anchored by the GOI with a 49% stake, the mandate for company, Hindustan Infralog Private Limited (HIPL), to
NIIF is also to raise the balance 51% from international consolidate and develop assets across the entire value
and domestic institutional investors over time. chain from ports to inland logistics. Over three years, HIPL
National Investment and Infrastructure Fund Trustee has become the country’s second-largest player in inland
Ltd. (“NIIF Trustee Ltd.”), a 100% Government of India container logistics. HIPL’s portfolio consists of ICDs/PFTs,
(GOI) company, is the Trustee of NIIF-managed funds. FTWZs, container freight stations, cold chain facilities,
container trains and CTO licenses. NIIF MF has expanded
Three funds, i.e. National Investm ent and its partnership with DP World. It announced an investment
Infrastructure Fund (Master Fund), NIIF Fund of Funds- into HPPL, DP World’s wholly owned subsidiary, for a
I and National Investment and Infrastructure Fund-II 22.5% stake. HPPL is one of India’s leading container
(Strategic Opportunities Fund), have been established terminal platforms and operates five container terminals
under the NIIF platform. The funds are registered with in strategic growth locations.
SEBI as Category II Alternative Investment Funds and
managed on a day-to-day basis by National Investment b. Ayana Renewable Power Limited: NIIF MF, Green
and Infrastructure Fund Ltd. (“NIIF Ltd.”), a company Growth Equity Fund (GGEF) and CDC, U.K. have
registered under the Companies Act, 2013 and regulated invested jointly in this company focused on the renewable
by SEBI as a fund manager of these funds, with ~USD energy sector in India. The company currently has an
4.3 billion in assets under management. operational capacity of approximately 1.3 GW and
another 2.5 GW under development. Ayana has signed
2. Investments a Memorandum of Understanding with Greenstat
An overview of the three funds currently managed Hydrogen India to accelerate hydrogen technology
by NIIF Ltd. is as follows: development and to collaborate to produce green
I. Master Fund hydrogen in India. They are currently executing a pilot
project in Karnataka.
NIIF Master Fund (NIIF MF) is the largest India-
focused infrastructure fund. The Fund primarily invests c. Athaang Infrastructure Private Limited: NIIF
in operating assets in core infrastructure sectors, such MF has incubated an in-house roads sector-focused
as transportation and energy, through its portfolio company. The company has acquired four strategic road
companies. It achieved its final close in December 2020 assets, including the Bangalore city airport connector, the
and attained an INR equivalent of USD 2.34 billion, toll road connecting Hyderabad to Nagpur and a highway
and tunnel road that connect Jammu and Srinagar.
34
d. IntelliSmart Infrastructure Private Limited: b. HDFC Capital Affordable Real Estate Fund 2
NIIF MF and Energy Efficiency Services Limited (EESL) (HCARE-2): NIIF FoF has committed INR 660 crore to
have set up this company jointly to implement and operate HCARE-2, managed by HDFC Capital Advisors. The fund
smart energy meters across the country. IntelliSmart is provides structured debt to developing mid-income and
managing 2.5 million smart meters across the country. It affordable housing developers. HCARE-2 has financed
had won the first competitive bid in the country for smart 78,000+ housing units, which are under various stages
metering in the state of Assam for 0.6 million meters and of development.
has achieved Go-Live for the first phase of this project. c. Multiples PE Fund III: NIIF FoF is an anchor
In December 2022, IntelliSmart emerged as the preferred investor in Multiples PE Fund III, a mid-market growth
bidder to deploy 6.7 million smart meters in Western Uttar equity fund. NIIF FoF committed INR 878 crore to the
Pradesh (UP). Fund, catalysing capital from various multilateral
e. Digital Infrastructure Platform: In March 2022, agencies, pension funds, another fund of funds and family
NIIF MF created a platform focused on developing hyper- offices. The Multiples PE Fund III’s mandate is to provide
scale data centres across multiple metro cities in India. growth equity to m id-market com panies across
f. Airports: In Decem ber 2022, NIIF MF healthcare, BFSI, education, technology, consumer etc.
announced a partnership with GMR Airports Limited d. Somerset Fund II: NIIF FoF has committed INR
(GAL) to fund equity capital for three airport projects in 125 crore to Somerset Indus Healthcare India Fund II
the country, including two greenfield airports which are (Somerset Fund II). The Fund focuses on providing
part of the USD 1.5 trillion National Infrastructure Pipeline growth capital to entrepreneurs of SME businesses
(NIP). NIIF MF is investing in the upcoming airport at operating in the affordable healthcare segment. NIIF has
Mopa, Goa which has a design capacity of handling up invested in hospitals in Tier 2 and 3 cities through this
to 4.4 million passengers per annum, with an ultimate fund, pioneering innovative models using technology to
capacity of up to 40 million passengers per annum. provide access to high-quality healthcare solutions. For
II. Fund of Funds exam ple, the fund has invested in 4 hospitals in
NIIF Fund of Funds (NIIF FoF) is one of the most Rajasthan, including Jaipur, Sawaimadhopur and
significant India-dedicated Funds of Funds. It is focused Jhunujhunu.
on building a portfolio of funds across investment e. Arpwood Partners Fund I: NIIF FoF is an
strategies and diversified sectors. NIIF FoF closed its anchor investor in Arpwood Partners’ maiden fund and
fundraising in September 2021 at an INR equivalent of has committed approximately INR 600 crore to the Fund,
USD 600 million. Anchored by the GOI, it has received which focuses on the mid-market buyout / control
commitments from multilateral institutions, including Asian segment. The Fund has invested in one of the largest
Infrastructure Investm ent Bank (AIIB), Asian multi-speciality hospital chains in Gujarat with 6 hospitals
Development Bank (ADB) and New Development Bank and a focus on oncology and cardiac with 900+ beds.
(NDB). The Fund’s current portfolio consists of six
f. YourNest Fund III: NIIF FoF is an anchor
portfolio funds:
investor in YourNest Innovative Products VC Fund III,
a. Green Growth Equity Fund: NIIF FoF and which invests in ventures across a spectrum of deep-
Foreign Commonwealth and Development Office (FCDO) tech domains and products built around emerging
UK anchored GGEF, India’s first climate-focused fund. It technologies with applications at scale.
achieved a final close at ~USD 740 million (~INR5,000
III. Strategic Opportunities Fund
crore), making it one of the most significant single-country
climate-focused funds in emerging markets. EverSource NIIF Strategic Opportunities Fund (SOF) is a
Capital, a joint venture between Everstone Group and growth equity fund focused on high-growth businesses
Lightsource BP, manages the Fund. GGEF invests in in financial services, social infrastructure (healthcare,
growth-oriented entities in the green infrastructure space education, agriculture), technology and manufacturing.
in India and has invested in businesses in utility-scale It is targeting to build a portfolio of domestic champions.
renewables, commercial and industrial distributed energy, The Fund is currently raising capital and is in discussion
waste management, e-mobility, green finance and waste- with select international and domestic investors. So far,
water treatment. Its companies have invested in electric the Fund has raised commitments from GOI and the State
buses in UP, a water treatment project in West Bengal Bank of India (SBI). NIIF SOF has made four investments
under the Namami Gange scheme, amongst other tasks. so far:
35
a. NIIF Infrastructure Finance Limited (NIIF IFL): of INR 10,037.5 crore on December 06, 2019. The Fund
NIIF SOF invested in NIIF IFL, an NBFC registered as an has as on December 06, 2022 secured additional
Infrastructure Debt Fund with the Reserve Bank of India. commitment of INR 5,000 crore from Government of
NIIF IFL provides long-term refinancing solutions to India taking the aggregate Fund’s commitment to INR
operational infrastructure projects across the country that 15,530 crore. This additional commitment is subject to
have completed at least one year of satisfactory operations. approval by all investors.
b. Aseem Infrastructure Finance Limited (AIFL): The Fund invests in RERA-registered housing
NIIF SOF also invested in an NBFC-IFC, Aseem projects where 90% of Floor space index (FSI) is
Infrastructure Finance Limited (AIFL), which invests in dedicated for Affordable/ Mid-Income Housing, RERA
projects across the infrastructure spectrum with a mix of carpet area of the units is less than 200 sqm and houses
operating, brownfield and greenfield assets. are priced below INR 2.0 crore in MMR, below INR 1.5
AIFL and NIIF IFL work complementarily to cover crore in NCR, Chennai, Kolkata, Pune, Hyderabad,
the full range of infrastrucsture debt financing in India. The Bangalore and Ahmedabad and below INR 1.0 crore in
total loan book size (across both NBFCs) is ~INR 26,000 Rest of India. The projects also have to be net-worth
crore, and there is no NPA position across the portfolios of positive and at least 30% of the project costs has to be
both companies. completed.
c. Manipal Hospitals: The Manipal Group has 27 II. Investment strategy of the Fund:
hospitals across India, with a critical focus on tertiary and a. The Real estate market has bottomed out in 2017
quaternary care. NIIF SOF’s investment supported Manipal and is now on an uptrend. Affordable and Mid-
Hospitals’ expansion plans and has grown from a regional income housing has continued to clock sales and
healthcare company to the second largest hospital chain has also received considerable support from the
in India. government in terms of tax incentives. Thus, there
d. Ather Energy: NIIF SOF invested in Ather Energy, is an opportunity to invest to complete construction
one of India’s leading electric two-wheeler companies. of stressed projects. Market studies have shown
Since SOF’s investment, Ather Energy has increased its that INR 55,000 crore are needed to complete
manufacturing capacity from 1,10,000 scooters per annum construction of stressed net-worth positive projects.
to 4,00,000. However, NBFC funding to the sector has dried up
and thus there is a substantial deal flow of stressed
B. Special Window for Affordable and Mid-Income
projects that will need the capital provided by the
Housing (SWAMIH) SWAMIH:
Fund
I. Background:
b. The Fund has the opportunity to provide priority last-
The proposal to set up a ‘Special Window’ in the mile capital with seniority of charge on the asset
form of AIF to provide priority debt financing for the and cash flows and to be repaid completely before
completion of stressed / stalled housing projects was any other projects debts are serviced. Thus the Fund
approved by the Union Cabinet on November 06, 2019. will be able to generate significant returns for the
The Special Window for Affordable and Mid-income reduced risk profile of it seniority in the capital
Housing (SWAMIH) Investment Fund I (“Fund”) has been structure.
formed to complete construction of stressed, brownfield,
c. The Investment Manager of the Fund is SBICAP
RERA registered residential developments that are in the
Ventures Ltd. (SVL), an asset managem ent
affordable housing / mid-income category, are net worth
company that is a wholly owned subsidiary of SBI
positive and require last mile funding to complete
Capital Markets Ltd. which in turn is a wholly owned
construction.
subsidiary of State Bank of India.
The Government of India is the sponsor of the
III. CURRENT STATUS OF SWAMIH Investment Fund
fund and has committed a fund infusion of up to INR 10,000
I
crore in the Special Window. Further investments will be
brought in through institutional and private investors. The The Fund has made ten drawdowns as of November
Fund has a target corpus of INR 12,500 crore with a 30, 2022 and called for a total INR 4,651.16 crore and
greenshoe option of INR 12,500 crore. The Fund achieved all investors have completed their capital contribution
a first closing with 14 investors and a capital commitment as required.
36
Commitments and Investments by ALL Investors (as on 30.11.2022)

Investor Committed Amount (INR Cr)
(1)
Government of India 5,000
(2)
State Bank of India 1,250
(2)
Life Insurance Corporation 1,250
Union Bank of India 500
Indian Bank 400
Punjab National Bank 400
Canara Bank 400
Bank of Baroda 400
Central Bank of India 400
HDFC Limited 250
Bank of India 100
Bank of Maharashtra 100
Punjab & Sind Bank 75
SBICAP Ventures 5
Total 10,530
Note: (1) The Fund has as on December 06, 2022, secured additional commitment of INR 5,000 crore from Government of India taking
the aggregate Fund’s commitment to INR 15,530 crore. This additional commitment is subject to approval by all investors.
(2) Up to 10% of the Fund size or INR 1,250 crore whichever is lower.
IV. OTHER SIGNIFICANT DEVELOPMENTS Debt Platform, comprising of Assem Infrastructure

(a) Hon’ble Supreme Court (SC) directed project Finance Limited (AIFL) and NIIF Infrastructure Finance
completion: The Hon’ble Supreme Court passed an Limited (NIIF-IFL).
order dated September 1, 2020, in respect of the NIIF investing INR 2,299 crores, set up specialised
proposed funding by the Fund into the Amrapali infrastructure financing institutions Aseem Infrastructure
Group. The Court has provided a broad framework Finance Lim ited (AIFL), an NBFC-IFC and NIIF
for the Fund’s investment funding into the Identified Infrastructure Finance Limited (NIIF IFL), an NBFC-IDF,
Site(s) and had directed the Receiver and the Fund together the NIIF Infrastructure Debt Platform (IDP). The
to formulate the precise modalities. IDP continues to have a pristine loan book with Nil NPAs
The Hon’ble Court has approved the funding of INR with the AUM of INR 26,000+ crores from ~INR 4,200
650 crore in the 6 Identified site(s). The Court crores at acquisition. The IDP has also been an active
appointed Receiver has incorporated the Section 8 player in the bond market and has raised ~INR 18,000+
company - Amrapali Stressed Projects Investments crores so far.
and Resolution Establishment (“ASPIRE”) for As part of Atmanirbhar Bharat 3.0, the Union
funding. The Fund has begun disbursements in the Cabinet approved an additional commitment of INR 6,000
project and has funded Rs 245 crore as of November crores into the IDP. The IDP has drawndown INR 1,700
30, 2022. crores from GOI till Novem ber 2022. The GOI
(b) Fully exited nine projects and commenced partial commitment and substantial capitalisation during the initial
exit in 12 projects: The Fund has received full days enabled AIFL to get an AA+ rating within its first full
redemption proceeds of INR 363.3 crore of face value year of operations and facilitated their early access to
of NCDs invested in the 9 projects along with bond markets. For NIIF IFL, the capital commitment was
redemption premium at an IRR of 12% aggregating instrumental in enabling the platform to take lead positions
to INR 415.6 crore as of November 30, 2022. A total and enable larger loans while being an active player in
of ~INR 531.9 crore, that includes partial exits, has the bond market. At the platform level, the GOI capital
been distributed back by the Fund to all investors. drawndown has been leveraged ~11x times already.
(c) Handover of 19,572 houses achieved: As of Further, on the equity capital front, AIFL, has attracted
November 25, 2022, the Fund has delivered 19,572 Sumitomo Mitsui Banking Corporation (SMBC), one of
homes in 41 projects which are in various phases of Japan’s megabanks to take a 10% stake.
completion. Of these, Occupation Certificates (“OC”) Thus, the IDP has been tracking well on all the
have been received for 11,532 houses and OCs has objectives set forth for the commitment: Scaling
been applied for 8,040 houses. specialised infra financing institutions, catalysing
C. NIIF Infrastructure Debt Financing Platform international investors while being a significant player in
The Cabinet in its meeting held on 25.11.2020, infrastructure debt financing and acting as an intermediary
approved an equity infusion of Rs 6000 crores in NIIF in the Bond Market.
37
8. FB & ADB Division across sectors like Health, Transport, Education, Energy,
Disaster & Risk Management, Agriculture, Water, Urban,
Environment, Governance, Social Protection, Financial
8.1 Introduction
inclusiveness, Poverty etc. Major World Bank assisted
8.1.1 The FB & ADB Division is concerned with the projects are National Rural Livelihoods Project,
policy matters of Multilateral Funding Institutions like Strengthening Teaching-Learning and Results for States
World Bank Group, International Monetary Fund (IMF), Project, North Eastern Region Power System
Asian Development Bank (ADB) and related Institutions. Improvement Project, Raising and Accelerating MSME
FB & ADB Division is also the nodal point for facilitating Performance, National Ganga River Basin Project, Green
and monitoring Externally Aided Projects (Central & State National Highways Corridor Project, Atal Bhujal Yojana-
Projects all over India) which are being implemented National Groundwater Management Improvement,
through Multilateral Development Banks and other related Catalyzing Private Financing for Sustainable Recovery
Trust Funds / Loans / Grants. An online web portal has and Growth etc.
been developed by FB&ADB Division, with technical help
from NIC for facilitating the entire process of availing an 8.4 Major activities pertaining to the World Bank
externally aided loan from Multilateral Development in 2022-23
Banks (MDBs) and Bilateral Agencies by State Govt/UT/
8.4.1 Loan Signed & Disbursement:
Central Govt. Ministries/Departments/ Central Govt
PSUs, to ensure paperless interaction between DEA and 8.4.1.1 Six World Bank assisted projects were signed
concerned stakeholders. The portal has led to greater during April-November 2022, amounting to USD 1.99
transparency, better monitoring of project status and billion of assistance. The projects signed during April-
faster and uniform sharing of information with all the November 2022 included Raising and Accelerating MSME
stakeholders. Performance, Public Service Capability Enhancement
Project, Second Tam il Nadu Housing Sector
8.2 World Bank Group Strengthening Program Development Policy Loan,
RIGHTS: Inclusion, Accessibility and Opportunities for
8.2.1 The World Bank is among the world's leading
Persons with Disabilities in Tamil Nadu, Systems Reform
development institutions with a mission to fight poverty
Endeavours for Transformed Health Achievement in
and improve living standards for people in the developing
Gujarat (SRESTHA-G), Catalyzing Private Financing for
world by promoting sustainable development through
Sustainable Recovery and Growth. Total Disbursement
loans, guarantees, risk management products and (non-
for the period April to November 2022 was approximately
lending) analytic and advisory services. The World Bank
USD 1.34 billion.
is one of the United Nations' specialized agencies. The
World Bank concentrates its efforts on reaching the 8.4.2 Monitoring of the World Bank Portfolio:
Millennium Development Goals aimed at sustainable 8.4.2.1 Portfolio performance has improved over the
poverty reduction. years as a result of regular review meetings such as Tri-
partite Review Meetings for ongoing projects and Pipeline
8.2.2 India is member of four institutions of the World
Review Meetings for pipeline projects. The meetings are
Bank Group viz., International Bank for Reconstruction
organized jointly by Government of India and World Bank
and Development (IBRD); International Development
and attended by officials from Department of Economic
Association (IDA); International Finance Corporation
Affairs (DEA), World Bank and Implementing Agencies
(IFC) and Multilateral Investment Guarantee Agency
of World Bank assisted projects. Under the chairmanship
(MIGA). India has been accessing funds from the World
of AS (MBC) during April - November, 2022, pipeline
Bank (mainly through IBRD) for various developmental
review meetings were held on August 30, 2022 and
projects1. Fund Bank & ADB Division, DEA is the focal
November 29, 2022 to review pipeline projects seeking
point for India being represented in the WBG meetings
assistance from the World Bank and Tripartite Portfolio
for international level deliberations to discuss policy issues
Review Meetings was held on July 20-21, 2022 in
pertaining to the World Bank Group as also to undertake
Lucknow, UP and virtually on September 01, 2022 and
projects with assistance from the World Bank (IBRD).
September 16, 2022 for reviewing World Bank assisted
8.3 World Bank India Portfolio ongoing projects of various sectors.
8.3.1 The World Bank's India portfolio as of November, 8.4.3 India as donor to IDA:
2022 comprises of 101 projects with a net commitment 8.4.3.1 Since its founding in 1960, IDA has had 19 regular
of USD 22.3 billion. The World Bank projects are spread replenishments. In 2014 (IDA 17), India transitioned to
being a confident donor. However, it continued to receive
[1]
India was also a recipient from IDA till 2014. In 2014 (IDA 17) India transition support during IDA17 (2014-17). India became
transitioned to being a confident donor. However, it continued to a donor-only nation during IDA18. As a commitment to
receive transition support during IDA17 (2014-17). India became a
donor only nation during IDA18. India's shared objective of eliminating extreme poverty,
38
reducing vulnerability and increasing resilience across the country. India is IFC's sixth largest shareholder with
countries, India decided to contribute USD 200 million to 3.82% of total voting power. India's Executive Director
IDA 17 replenishment. In furtherance of its commitment represents a constituency equal to 4.61% voting power.
towards the IDA countries, India announced a pledge of There are three other countries in India's constituency at
INR 12.25 billion as its contribution towards IDA 18 the IFC, viz. Bangladesh, Bhutan and Sri Lanka. IFC has
replenishment. During the IDA 19 replenishment, India committed over USD 25 billion (including mobilization) in
committed INR 15.00 billion. For IDA 20 replenishment, India since the first investment in 1958. Currently, IFC
India announced a pledge of INR 17.48 billion. investments are spread over 500 clients in India. As of
November 2022, IFC's committed portfolio in India stood
8.5 Meetings of Fund Bank at approximately USD 5.4 billion, making India IFC's
8.5.1 The Development Committee (DC) Meeting of largest portfolio exposure which accounts for about 10%
World Bank Group (WBG) during Spring Meeting of WBG of its global portfolio. India is also one of IFC's largest
and IMF, 2022 was held on April 22, 2022 in Washington advisory client, as well as the IFC regional hub for South
DC which was attended by Hon'ble Finance Minister as Asia. IFC's investments in India are spread across priority
Indian Governor of the World Bank. The Development sectors like infrastructure, manufacturing, financial
Committee Dinner meeting was held on April 21, 2022. markets, SMEs, affordable housing, renewable energy,
Further, a Bilateral Meeting between Hon'ble FM and low-income states, gender development and climate
World Bank Group President was also held on April 22, change. In line with the Country Partnership Strategy
2022 in Washington DC. (CPS) of the World Bank Group, IFC uses its private
sector expertise to support economic growth that is
8.5.2 The Development Committee (DC) Meeting of inclusive, productive and sustainable. IFC continued to
World Bank Group (WBG) during Annual Meeting was deliver over USD 1.3 billion through own account and
held on October 14, 2022 in Washington DC which was mobilization in FY22 (July 2021-June 2022) in India.
attended by Hon'ble FM as Indian Governor of the World During July 2021-June 2022, DEA approved a total of 28
Bank. The Development Committee Dinner meeting was Article III Notifications. Further, DEA granted approval
held on October 13, 2022. Further, a Bilateral Meeting for 8 advisory engagements of IFC between July 2021
between Hon'ble FM and World Bank Group President and June 2022.
was also held on October 15, 2022 in Washington DC.
8.7 International Monetary Fund
8.5.3 IDA Day Meetings held during April-November
8.7.1 India is a founder member of the International
2022 are as follows: -
Monetary Fund, which was established to promote a
 Exceptional IDA-19 Meeting was held virtually on cooperative and stable global monetary framework. At
April 11, 2022 to discuss providing financial present, 190 nations are members of the IMF. Since the
support to Ukraine and Moldova. IMF was established, its purposes have remained
unchanged but its operations - which involve surveillance,
 IDA Day meeting was held virtually on May 16, 2022
financial assistance and technical assistance - have
to discuss the Impact of the Ukraine War on IDA
developed to meet the changing needs of its member
Countries and the Bank's Response and closing
countries in an evolving world economy. The Board of
IDA-19 and Getting Ready to Deliver IDA-20.
Governors of the IMF consists of one Governor and one
 IDA20 Launch event took place on September Alternate Governor from each member country. For India,
12-13, 2022 in Tokyo, Japan. the Finance Minister is the ex-officio Governor on the
 IDA Day meeting was held on October 17, 2022 Board of Governors of the IMF. There are three other
to discuss Update on IDA20 Long-dated Market countries in India's constituency at the IMF, viz.
Bond Program and IDA Financial Outlook and Bangladesh, Bhutan and Sri Lanka. Governor, Reserve
review of IDA Operations. Bank of India (RBI) is India's Alternate Governor.
 Exceptional IDA meeting on Sri Lanka was held 8.7.2 Meetings of Board of Governors:
virtually on November 03, 2022.
8.7.2.1 The Board of Governors usually meets twice a
8.6 International Finance Corporation (IFC) year viz. the Spring Meetings and the Annual Meetings
of the IMF and World Bank to discuss the work of the
8.6.1 The International Finance Corporation (IFC), a respective institutions. At the heart of the gathering are
member of the World Bank Group, focuses exclusively meetings of the IMF's International Monetary and
on investing in the private sector in developing countries. Financial Committee (IMFC). India is represented by the
Established in 1956, IFC has 186 members. India is the Hon'ble Finance Minister in IMFC and the joint World
founding m em ber of IFC. IFC is an im portant Bank-IMF Developm ent Comm ittee (DC), which
development partner for India with its operations discusses progress on the work of the IMF and World
concentrated on financing and advising private sector in Bank.
39
8.7.3 The Spring Meetings of the IMF/ World Bank, In February 2020, the Board of Governors of the
meetings of G-20, Bilateral and Investor were held in USA IMF formally concluded the 15th GRQ with no increase in
from April 18 to April 27, 2022. The Hon'ble Finance quotas or change in quota formula as the United States
Minister, Chief Economic Adviser, Additional Secretary expressed its inability to contribute to any quota increase
(MBC), Adviser (IER), Adviser (BC), Director (Investment), under the 15th GRQ. In February 2020, IMF Board of
Director (WB) and DS (IMF) represented India in these Governors has adopted a resolution that the 16th Round
meetings. Hon'ble FM discussed the current global of GRQ should be concluded no later than December
economic outlook and risks in the context of recent 15, 2023.
macroeconomic and geopolitical developments. Hon'ble
FM also recognized soaring food and energy prices, b). India’s contribution to New Arrangements
impending supply chain disruptions, tightening global to Borrow (NAB): In April 2009, the G-20 agreed to
financial conditions, rising debt and divergent prospects increase the resources available to the IMF by up to $500
of recovery as key challenges. The economic and billion (which would double the total pre-crisis lending
humanitarian repercussions of Russia's invasion of resources of about $250 billion) to support growth in
Ukraine were also extensively discussed. The 2023 emerging market and developing countries, viz. through
Spring Meetings of the IMF/ World Bank are expected to bilateral financing from IMF member countries; and by
be held in USA from April 11 to April 16, 2023. incorporating this financing into an expanded and more
flexible New Arrangements to Borrow (NAB).
8.7.4 The Annual Meetings of the IMF/ World Bank,
The New Arrangements to Borrow (NAB)
meetings of G-20, Bilateral and Investor were held in USA
constitutes a second line of defence to supplement IMF
from October 11 to October 16, 2022. The Hon'ble
resources to forestall or cope with an impairment of the
Finance Minister, Secretary, Department of Economic international monetary system. Through the NAB, a
Affairs, Chief Economic Adviser, Additional Secretary number of member countries and institutions stand ready
(MBC), Advisers (IER), Director (IER), Jt. Director (IER), to lend additional resources to the IMF. In January 2021,
OSD (IER) and Media & Communication Officer, DEA a reform of the NAB took effect following consents from
represented India in these m eetings in person. 38 NAB participants, almost doubling the size of the NAB
Honourable Finance Minister emphasized on the greater to SDR 361 billion (US$521 billion) for the period from
role of IMF in the post-pandemic period and the need for 2021 to 2025. India is also one of the 38 creditor countries
timely completion of 16th General Review of Quotas to
in NAB with a contribution of SDR 8.88 billion.
address the under-representation of the Emerging and
Developing Market economies and highlighted India's c). India’s contribution to Bilateral Borrowing
ambitious climate action path through the updated Arrangements (BBA): BBAs are used as a third line of
Nationally Determined Contributions for decoupling of defence after quota and NAB resources are exhausted
economic growth from greenhouse gas emissions. substantially. At the Los Cabos G20 Summit in 2012, the
Honourable Finance Minister also highlighted the IMFC and G20 jointly called for further enhancement of
significance of transfer of climate finance and low-cost IMF resources for crisis prevention and resolution through
technologies from developed to developing countries. temporary bilateral loans.
8.7.5 India and IMF: India had agreed to commit USD 10 billion to the
8.7.5.1 The membership of the Fund is committed to BBA 2016 on August 10, 2017, which was set to expire in
maintain a strong, quota-based, and adequately December 2019, however, the agreement was further
resourced IMF. IMF's total resources presently include extended for another year through December 31, 2020.
the following: India's commitment towards Bilateral Borrowing
a. Quotas: Primary source of financing for Arrangements is implemented through the mechanism
lending; of Note Purchase Agreement (NPA) between Reserve
b. New Arrangements to Borrow (NAB) acts Bank of India (RBI) and the IMF.
as the second line of defence i.e. after quota
resources are exhausted substantially. The new round of bilateral borrowing agreements
c. Bilateral Borrowing Agreements (BBAs) took effect on January 1, 2021. The BBAs now in effect
provide a third line of defence. with 42 creditors contribute a further SDR 138 billion (USD
195 billion) with India's contribution at USD 3.9 billion.
a). India’s Quota and Ranking: The 2010 IMF
Quota and Governance Reforms (including the 14 th 8.7.6 South Asia Regional Training and Technical
General Reforms of Quotas) came into effect on January Assistance Center (SARTTAC) :
26, 2016. Consequent to this Quota increase, India's
quota shareholding rose to 2.75%. With a quota share of 8.7.6.1 A Memorandum of Understanding was signed
SDR 13,114.40 million, India ranks 8th in terms of quota between India and International Monetary Fund for setting
holding in IMF. up of South Asia Regional Training and Technical
40
Assistance Center (SARTTAC) in India by the Japan and the United States are the largest shareholders
International Monetary Fund on March 11, 2016. The with15.57% each of shares. China and India are the third
Centre was officially inaugurated on February 13, 2017. (6.43%) and fourth (6.32%) largest shareholders,
SARTTAC serves six-member countries of Bangladesh, respectively.
Bhutan, India, Maldives, Nepal & Sri Lanka. It provides
training to government & public sector employees in order 8.8.3 The Asian Development Fund (ADF) is a
to enhance their technical and analytical skills and special fund of ADB, which is utilized for extending
improve the quality of their inputs into policy making. It financial support to Group A (and selectively Group B)
also provides technical assistance to governments and member countries, which have lesser credit worthiness
public institutes in various areas such as macroeconomic and are prone to debt distress and other vulnerabilities.
policy, macro & micro prudential regulation, financial India became a donor to ADF in July 2014 and contributed
sector supervision as well as national accounts statistics $30 m illion for the 11th Replenishm ent of ADF
and forecasting. (ADFXI)and US$41.74 million for ADF-XII. For ADF-XIII,
India has pledged $51.38 million. ADB provides
8.7.7 India has contributed USD 32.8 million of which concessional financing through ADF to its developing
the first instalment of USD 15 million to SARTTAC was member countries (DMC) based on the agreed yardsticks.
paid in August, 2016 and the balance USD 17.8 million
was paid in November, 2017. 8.8.4 ADB has a Board of Governors (BoG), a Board
of Directors (BoD), a President, six Vice Presidents and
8.7.8 Article IV Consultations : specialized officers and staff in its headquarters and
8.7.8.1 Under Article IV of the IMF's Articles of country offices. The BoG is ADB's highest policy-making
Agreement, the IMF holds bilateral discussions with body, which comprises one representative from each
members, usually every year, to review the economic member nation including India. The Finance Minister of
status of the member countries. Article IV consultations India is the designated Governor for India. The BoG
are generally held in two phases. During this exercise exercises its powers and functions with the assistance
the IMF mission holds discussions with the RBI and of the BoD, which performs its duties full time at the ADB
various line Ministries / Departm ents of Central headquarters. The Directors supervise ADB's financial
Government. The Article IV Consultations are concluded statements, approve its administrative budget, and review
with a meeting of IMF Executive Board at Washington and approve all policy documents and all loan, equity,
DC which discusses the Article IV Report. The Annual and technical assistance operations. India is represented
Article IV Mission with International Monetary Fund was in the BoD by an Executive Director (ED), who is
held during September 19-27, 2022. Discussions were nominated by the Government of India. ED is supported
held on the State of the Indian economy, climate change by officers from India (two advisers and one executive
issues, reform initiatives and growth prospects and assistant).
Secretary (EA) chaired the Wrap Up session with the
IMF Mission Team on September 27, 2022. The outcome 8.8.5 Annual Meetings of BoG are he ld in a
of these meetings in the form of the IMF India Article IV designated member country in early May. Annual
report was published on 23rd December 2022. Meetings are occasions for the BoG to provide guidance
on ADB administrative, financial, and operational
8.8 Asian Development Bank directions. The meetings provide opportunities for
member governments to interact with ADB staff, non-
8.8.1 Membership of ADB: governm ent organizations (NGOs), m edia, and
8.8.1.1 India was a founding member of the Asian representatives of observer countries, international
Development Bank (ADB) in 1966. ADB envisions a organizations, think tanks, and the private sector. Bilateral
prosperous, inclusive, resilient, and sustainable Asia and meetings are held between countries on the side lines of
the Pacific, while sustaining its efforts to eradicate the Annual Meeting. The 46th Annual Meeting of ADB
extreme poverty in the region. ADB assists its members, was hosted by India on 2-5 May 2013 in New Delhi. The
and partners, by providing loans, technical assistance, 55th Annual Meeting was held in two stages. The first
grants, and equity investments to promote social and stage was held virtually on 5 May 2022, and the second
economic development. stage was a combination of virtual and physical events
that took place from 26 to 30 September 2022 in Manila.
8.8.2 ADB has 68 members (including 49 regional
and19 non-regional members), with its headquarters in 8.8.6 ADB operations in India. ADB's assistance to
Manila, Philippines. ADB's authorized and subscribed India commenced in 1986. The ongoing sovereign lending
capital stock is US$163.12 billion, of which India's portfolio of ADB projects in India consists of 65 loans
subscription is US$10.3 billion. India holds 6.32% of worth $15.15 billion. ADB's annual sovereign lending in
shares in ADB, equivalent to 672,030 shares India increased to an all-time high of $4.6 billion in the
(@US$12063.5 per share). India has 5.35% voting rights. calendar year 2021, including a $1.5 billion loan under
41
the Asia Pacific Vaccine Access Facility (APVAX), which  Energy sector initiatives focus on strengthening
supports the government's rapid vaccination rollout to of power transmission and distribution networks
contain the pandemic and help reduce the severity of a in India. ADB supported initiatives aim to provide
possible third wave. In the same year, ADB committed uninterrupted power supply to all, promoting
$273.4 million for its private sector investments in India. sm art grid technologies, and low-carbon
The 2022 regular program of assistance included projects solutions, including renewable energy and energy
in transport, human development, urban, agriculture, and efficiency.
public sector management sectors.
 The urban sector program supports expanding
8.8.7 ADB support to India is in line with the the coverage, quality, and continuity of basic
government's development priorities, evolving focus services to improve the urban quality of life. The
areas, and flagship initiatives and emphasizes Finance program aims to contribute to sustainable urban
Plus elements. The India country partnership strategy development by supporting policy reform,
(CPS) of ADB provides the overarching framework for institutional developm ent, and im proved
ADB's operations in India. In line with the government's governance of urban services.
guiding principle that multilateral development partners
add value beyond tangible investments, ADB leverages  The finance sector program endeavors to support
knowledge, supports capacity developm ent, and leveraging of finance for infrastructure.
incorporates innovation and best practice into its
operations. ADB's CPS, 2018-2022 for India was  The agriculture and natural resources sector
approved in September 2017. A new CPS for 2023-2027 interventions provide assistance in the key areas
is under preparation and is likely to be approved in early of water use efficiency, climate resilience, and
2023. coastal protection.
8.8.8 ADB assistance to India has shifted from COVID-  The human development program encompasses
19 crisis response to the pursuit of medium and long- interventions in the skills/education and health
term development goals. They are aimed to accelerate sectors. Skills/education interventions focus on
the country's inclusive economic transformation and improving employability of youth in the industries
ADB's country program supports India's fast, green, and and services essential to growth through stronger
inclusive recovery in alignment with Atmanirbhar Bharat industry engagement and increased focus on
Abhiyan (Self-Reliant India), which envisages to make quality and outcomes. The health sector program
India a competitive, resilient, self-sustaining, and self- aims to contribute to health sector development
generating economy. To synchronize industry growth with and reforms, health care finance, and health
well-m anaged urbanization and environm ental insurance and subsidized health programs.
sustainability, ADB operations adopt a multidisciplinary
approach embodied in projects on multimodal logistics, 8.8.10 Non sovereign operations strive for
industrial corridor development, and integrated urban diversification with larger num ber of projects.
planning. They also cover innovative initiatives such as Interventions facilitate inclusive access to finance,
transit-oriented development, value capture financing, including m icroloans for wom en and agriculture,
and public-private partnership infrastructure financing. affordable housing, and small-scale investments in
ADB also helps mobilize domestic resources to promote climate change projects. Private equity funds with focus
a sustainable recovery. ADB operations continue to assist on health, finance, education, agribusiness, and non-
in enhancing engagements in the social sectors through traditional sectors such as technology is supported.
investments in education, health, and skills; support for Innovative mechanisms like municipal finance and
micro, small, and medium enterprises development; and blended sovereign-non sovereign loans under the One
policy advice building on well-performing sustainable and ADB approach is being pursued. ADB also supports the
quality infrastructure operations. government's priority to enhance private financing of
infrastructure through continuing partnership to
8.8.9 ADB interventions span six sectors of strengthen the PPP policy and institutional framework.
operation: transport; energy; urban infrastructure and
services; finance; human development; and agriculture 8.8.11 The Technical Assistance (TA) program has
and natural resources. also evolved in line with the loan program. TA projects
help DMCs enhance capacity, im prove project
 The ADB transport sector program aims to preparedness and implementation, promote technology
improve connectivity and accessibility, promote transfer, and undertake analytical studies. The TA
safe and environment-friendly practices, and program underpins strong knowledge work in priority
enhance in-country and sub-regional trade areas. ADB's Technical Assistance Special Fund (TASF)
corridors and facilities. provides technical assistance improving capacity in the
42
formulation, design and implementation of projects to and capacity building targeted towards upstream studies
facilitate effective use of external financing. India has been that are needed for development of cross border projects
voluntarily contributing to TASF, since 1970. The TA or projects that have regional significance; and
program adopts a coherent, principles-based, filtering administrative, logistic, knowledge and capacity support
framework for prioritization and allocation of scarce TASF for convening of Working Group meetings and Senior
resources across projects in India, while leveraging Officials' meetings.
cofinancing.
8.8.16 SASEC Operations. As of 15 October 2022, the
8.8.12 Knowledge support is developed and prioritized SASEC portfolio consists of 77 committed projects with
to drive ADB operations-identifying transformative cumulative cost of $17.56 billion and ADB funding of about
investment and reform opportunities to address complex $10.31 billion since 2001 . The transport sector accounts
developmental challenges that require more than for the highest number of projects (44 projects worth a
financing. Strategic planning is being mainstreamed to cumulative $12.32 billion), followed by energy (16 projects
establish long-term interventions that optim ize worth $2.92 billion), economic corridor development/
development impact. Best practices and lessons will be multi-sector (eight projects worth $1.94 billion), trade
disseminated, including through state-to-state project facilitation (five projects worth $328.15 million), ICT (two
replication to maximize return on investment. projects worth $20.80 million) and health (two projects
worth $25.92 million).
8.8.13 Portfolio performance has improved over the
years as a result of regular review meetings such as 8.8.17 An additional $199.68 million in 143 technical
tripartite portfolio review meetings (TPRM) for ongoing assistance grants was also provided. India received ADB
and pipeline projects. In 2021, three such TPRMs were assistance for 21 SASEC projects (transport, economic
held virtually under the pandemic environment. ADB corridor development, ICT and tourism) with total cost of
continues to build strong pipelines, ensure quality and about $6.36 billion, with cumulative ADB lending of $3.79
readiness at entry from overprogrammed pipelines, and billion. The ADB firm SASEC pipeline for 2023-2025
apply high discipline in implementation. comprises 33 projects. ADB's pipeline for India includes
11 projects with total prospective ADB funding of $2.57
8.8.14 SASEC Program. ADB program deepens its
billion. ADB is assisting Government of India in extending
engagements in regional cooperation and integration
project development support through project readiness
under the South Asia Subregional Economic Cooperation
financing (PRF) loans along with knowledge support
(SASEC) and other regional forums. The SASEC
technical assistance to NER states. PRF enables quick
Program brings together Bangladesh, Bhutan, India,
response to continued demand for project development
Maldives, Myanmar, Nepal, and Sri Lanka in a project-
and finances project preparation and design activities for
based partnership. Under this flagship program, ADB has
been working with SASEC countries to build cross-border investments that are expected to be financed under one
or more ensuing ADB-financed projects with quality
power connectivity, facilitate regional trade, and connect
transport network for better movement of goods and project designs and a high level of implementation
people. ADB projects in the North Eastern Region (NER) readiness.
aimed at helping develop economic corridors to be linked 8.8.18 PRF and KSTA in NER aim to support
with neighbouring South Asian and Southeast Asian development of investment plans/projects for key sectors
countries, as envisaged under India's Act East Policy will
and preparation of feasibility studies, detailed designs,
also be highlighted. Several project readiness financing
procurement process, and timely completion of pre-
projects are included to help accelerate project
construction activities of priority projects. Building
development and preparation.
institutional capacity is one of the key components of PRF
8.8.15 New SASEC Institutional Mechanism. India and KSTA, which intend to support infrastructure planning
hosted the SASEC Nodal Officials' Meeting on 20 June, and implementation capacities of the line departments.
which formally endorsed the new institutional mechanism Presently, Sikkim Road Sector PRF ($2.5 million) and
covering (i) regularizing SASEC Finance Ministers Tripura Urban and Tourism Development PRF ($4.2
Meetings, strengthening sub-regional and national million) are under implementation and the Mizoram Urban
institutional arrangements for SASEC, and establishing Transport PRF ($4.5 million). Tripura Industry PRF ($2
SASEC Secretariat in the subregion at ADB India million), Tripura City Infrastructure PRF ($3 million),
Resident Mission (INRM); (ii) Strategic reorientation of Manipur Road Sector PRF ($5 million), and Nagaland
the SASEC Vision includes a new operational priority; Urban Infrastructure PRF ($2 million) are under
and (iii) Proposed new initiatives. ADB is expediting the processing. KSTA support is also being mobilized for
setting up of the SASEC Secretariat in INRM for the developing sector investment plans in the state of Tripura
development of cross border projects or projects that have and Assam (Road Sector and Urban & Rural Water
regional significance for SASEC countries; knowledge Supply -Sanitation).
43
8.8.19 Capacity Building. Building the capacity of third installment to the GFATM for 2022-23 (USD 8 million)
various executing agencies has been an important was paid in July 2022.
element of ADB's assistance to India. The Capacity
Development Resource Center (CDRC), which was 8.10.3 India committed USD 25 million to GFATM during
established at ADB's India Resident Mission, collaborates the Seventh Voluntary Replenishment cycle (2023-25)
with leading experts and national training institutes to as per following schedule (i) US$ 8 million in 2023 and
develop and deliver training courses for executing 2024 each and (ii) US$ 9 million in 2025.
agencies on operational, technical and substantive topics 8.11 Global Facility for Disaster Reduction and
relating to ADB operations in India. In 2020, CDRC carried Recovery (GFDRR)
on its work despite the COVID-19 pandemic situation,
8.11.1 GFDRR is a global partnership program
through virtual training programs.
administered by the World Bank Group. GFDRR supports
8.9 Global Alliance for Vaccines and developing countries to: (i) mainstream disaster risk
Immunizations (GAVI Alliance) m anagem ent and clim ate change adaptation in
development strategies and investment programs, and
8.9.1 The GAVI Alliance (formerly the Global Alliance (ii) improve the quality and timeliness of resilient recovery
for Vaccines and Immunization) was founded in 2000 and reconstruction following a disaster. The governance
to reduce the historical gap in access to life saving structure of GFDRR comprises: the Consultative Group
vaccines and reduce child mortalities. GAVI's mission (CG), the Secretariat, and the Trustee. The Consultative
is to save children's lives and protect people's health by Group is the primary policy making body in GFDRR whose
increasing access to immunization in poor countries. Chair is a World Bank representative while its Co-chair
India is not only a recipient, but also a contributor to is selected from the member countries for a period of
GAVI Alliance. As per 'Contribution Agreement' signed one year.
be tween Go ve rnm ent o f Ind ia and GAVI, Ind ia
committed to contribute USD 3 million per annum to the 8.11.2 India became a member of GFDRR in 2013 by
GAVI Alliance during the replenishment cycle of five year paying one time member fee of USD 500,000 in three
i.e. 2021-25. installments during 2014-15. DEA vide its O.M. dated Oct
30, 2018 gave its no-objection to MHA which is the nodal
8.9.2 A proposal of MoHFW was received in 2020 for ministry for GFDRR, for renewal of India's membership
enhancement of India's contribution to the GAVI in the to GFDRR and as well as commitment on the financial
next replenishment cycle of five year i.e. 2021-25. It was support on making contribution of USD 5,00,000 as
decided with the approval of Hon'ble Finance Minister membership fee cumulatively over three years to GFDRR
that the Govt. of India will make a contribution of US$ for the FY 2018-21. In October 2021, DEA agreed with
three million per annum to GAVI, i.e., a cumulative the proposal of MHA on India's association with GFDRR
contribution of US$ 15 million for the next replenishment in the observer status.
cycle of GAVI of five years. The Multi-Year Contribution
Agreement towards the replenishment for the next five 8.12 Multilateral Investment Guarantee Agency (MIGA)
years (2021-25) was signed on 30 th June, 2021 and 8.12.1 Multilateral Investment Guarantee Agency (MIGA)
second installment was made on 31st January, 2022. was founded in 1988 to promote foreign direct investment
(FDI) into developing countries. MIGA currently has 182
8.10 Global Fund to Fight AIDS, Tuberculosis and members. It provides investment guarantees to private
Malaria (GFATM) sector investors and lenders, particularly in conflict
8.10.1 The Global Fund to Fight AIDS, Tuberculosis and affected countries. MIGA also provides technical
Malaria (The Global Fund / GFATM) is an international assistance to developing countries as well as helps them
financing organization that aims to attract and disburse in their efforts to attract foreign capital, technology, and
additional resources to prevent and treat HIV and AIDS, know-how. With the approval of Cabinet Committee on
Tuberculosis and Malaria. The organization is public- Political Affairs, the MIGA Convention was signed by India
private partnership with Secretariat at Geneva, on April 13, 1992 with a view to creating an environment
Switzerland. The organization began operations in for foreign direct investment (FDI) in India to provide
January 2002. GFATM supported program s have guarantees to prospective investors and mitigating certain
estimated to have saved 50 million lives since 2002. perceptions like non-commercial risks like inability to
transfer profits from the host country, confiscation of
8.10.2 As per the 'Multi-Year Contribution Agreement' assets, damages due to war or civil disturbances which
signed between the Government of India and GFATM on were restraining FDI flows in India. India became member
11th June, 2020, India committed USD 22 million to of MIGA on January 6, 1994. At present, India has 3.03%
GFATM during the Sixth Voluntary Replenishment cycle capital subscription with a voting power of 2.56% on the
(2020-22) as per following schedule (i) US$ 7 million in MIGA Board. As a constituency India has 7402 shares,
2020 and 2021 each and (ii) US$ 8 million in 2022. India's comprising 3.39% of total voting power.
44
8.13 Global Development Network (GDN) more inclusive developm ent. Through its global
8.13.1 GDN was created as World Bank Initiative in platform, GDN connects social science researchers
1999. GDN is a public international organization that with policymakers and development stakeholders
supports high quality, policy-oriented, social science across the world. In 2001, GDN was established
research in developing and transition countries to outside the World Bank as US NGO. GDN has 5
promote better lives. It supports researchers with member countries namely Colombia, India, Spain, Sri
financial resources, global networking, as well as Lanka and Hungary. GDN Agreement has not been
access to inform ation, training, peer review and ratified by 3 countries namely Egypt, Italy and Senegal
mentoring. GDN acts on the premise that better for internal reasons. GDN is currently headquartered
research leads to more informed policies and better, in New Delhi.
Position of ATNs – IMF Section

(FB & ADB Division, DEA)
Sl. Year No. of Paras/ PA reports on Details of the Paras/PA reports on which ATNs
No. which ATNs have been are pending
submitted to PAC after vetting No. of ATNs No. of ATNs No. of ATNs
by Audit not sent by sent but which have
the Ministry returned with been finally
even for the observations vetted by
first time and Audit is Audit but
awaiting their have not been
resubmission submitted by
by the the Ministry to
Ministry PAC
1 2014 Report 1 of 2014, Demand No.
32, Para 3.16 (Annexure 3.14, - - Submitted
Item 23 to 25)
2 2014 Report No. 1 of 2014, Demand
No. 32, Para 3.16 (Annexure - - Submitted
3.14)
No. 33, Para 3.12 (Annexure - - Submitted
3.10 & 3.15, Annexure 3.13)
No. 34, Para 3.16 (Annexure
- - Submitted
3.13, Item 21), Para 3.17
(Annexure 3.14, Item 6)
No. 34, Para 3.18 (Table 3.9, - - Submitted
Item 3)
6 2017 Reports No. 44 of 2017,
Demand No. 29, Para 3.15
(Annexure 3.12, Item No: 13), - - Submitted
Para 3.17 (Annexure 3.14, Item
4)
7 2019 Reports No. 2, Demand No. 29,
Para No. 3.3, Table 3.2, Item - - Submitted
No. 9
45
9. International Economic Relations The first G20 Summit was held in November
2008 in Washington DC under the shadow of the greatest
Division
financial crisis in the post-war era. This was followed by
9.1. The International Economic Relations Division fourteen summits held in London (April, 2009), Pittsburg
of the Department of Economic Affairs deals with (September, 2009), Toronto (June, 2010), Seoul
economic and financial matters related to: (November, 2010), Cannes (November, 2011), Los Cabos
1. G-20 (June, 2012), St. Petersburg (September, 2013), Brisbane
(November, 2014), Antalya (November, 2015), Hangzhou
2. G-7 (September, 2016), Hamburg (2017) and Buenos Aires
3. G-24 (2018), Osaka (2019), Riyadh (2020) and Rome (October,
2021). The 17th G20 Bali Summit was held under the
4. BRICS Indonesian G20 Presidency in Bali, Indonesia on 15-16
5. SAARC, SDF November, 2022.
6. ASEAN, Caribbean Union India assumed the G20 Presidency on 1st
December, 2022 under the theme "One Earth, One
7. World Economic Forum (WEF)
Family, One Future". The Leaders' Summit under the
8. OECD, SCO Indian Presidency will be held in September 2023 in Delhi,
9. Asia Europe Meeting (ASEM) India. The Presidency of G20 is usually held for a year
with various meetings taking place (across a range of
10. BIMSTEC policy issues) culminating into the G20 Leaders' Summit.
12. External Charges- G20 issues are discussed through two parallel
a) South Asia (Afghanistan, Bangladesh, tracks, viz., Finance Track and Sherpa Track. Under
Bhutan, Maldives, Nepal, Pakistan, Sri Finance Track, issues such as international financial
Lanka), South East Asia (Brunei, Burma, architecture, infrastructure financing, sustainable finance,
Cambodia, East Timor, Indonesia, Laos, sustainable and inclusive growth, international taxation
Malaysia, Philippines, Singapore, Thailand, and financial sector regulations, financial inclusion are
Vietnam), North America(Mexico), East Asia deliberated. The highest level of meeting under Finance
(Mongolia, Hong Kong, Taiwan) Track is G20 Finance Ministers and Central Bank
Governors (FMCBG) Meeting which is held 3-4 times in
b) Matter relating to CIS countries (Armenia,
a year. The G-20 member countries are represented by
Azerbaijan, Belarus, Georgia, Kazakhstan,
their Finance Ministers and Central Bank Governors
Kyrgyzstan, Moldova, Tajikistan,
(FMCBGs). Preceding every FMCBG Meeting, Finance
Turkmenistan, Ukraine, Uzbekistan).
and Central Bank Deputies (FCBD) Meetings are held to
13. Sectoral Charge - prepare for FMCBG Meeting. Secretary (Economic
a) Ministry of Defence, Affairs) is India's Finance Deputy and Deputy Governor,
Reserve Bank of India is India's Central Bank Deputy.
b) Ministry of Tribal Affairs Technical level discussions are held through meetings of
E- Governance: Working Groups that are usually held 3-4 times a year.
Working Groups/areas under the G20 Finance Track are
As far as e-governance is concerned, IER
as follows:
division has fully operationalized E-file System and thrust
are being given for optimal usage of Govt Email id for a. Framework Working Group (FWG)
official communication in order to make decision swift, b. International Financial Architecture Working
transparent, efficient and effective. Group (IFA WG)
c. Infrastructure Working Group (IWG)
I. G-20 d. Sustainable Finance Working Group (SFWG)
The G20 was formed in 1999, as a forum of e. Financial Sector
Finance Ministers and Central Bank Governors, in f. Global Partnership for Financial Inclusion (GPFI)
recognition of the fact that there was a major shift in the g. International Taxation
global economic weight from the advanced economies h. Joint Finance and Health Task Force
to emerging market economies. However, G20 rose into a. Framework Working Group (FWG) discusses
prominence in 2008 when it was elevated from a forum issues relating to the global economy, risks and
of Finance Ministers and Central Bank Governors to that uncertainties, suitable policy responses, and
of G20 Heads of Nations in order to effectively respond promoting Strong, Sustainable, Balanced, and
to the global financial crisis of 2008 and insulate the world Inclusive Growth (SSBIG) across the G20. India
from major economic collapse. along with the UK co-chairs this Working Group.
46
b. International Financial Architecture (IFA) h. Joint Finance and Health Task Force was
Working Group deals with issues related to established during the G20 Rome Leaders'
international financial architecture such as Global Summit, 2021. The Task Force is aimed at
Financial Safety Net (GFSN), the role of the enhancing dialogue and global cooperation on
SDRs in the international monetary system; issues relating to pandem ic Prevention
restructurings of sovereign debt, debt Preparedness and Response (PPR), promoting
transparency and sustainability among others. the exchange of experiences and best practices,
This Working Group is co-chaired by South Korea developing coordination arrangements between
and France. Finance and Health Ministries, promoting
c. Infrastructure Working Group (IWG) collective action, assessing and addressing
deliberates on quality infrastructure investments health emergencies with cross-border impact,
including innovation in mobilizing financial and encouraging effective stewardship of
resources for infrastructure investment. The resources for pandem ic prevention,
Working Group is co-chaired by Australia and preparedness and response (PPR), while
Brazil. adopting a One Health approach. The Task Force
is co-chaired by Italy and Indonesia and is
d. Sustainable Finance Working Group (SFWG)
assisted by a Secretariat housed at the World
was established group under the G20 Italian
Presidency co-chaired by the US and China. The Health Organisation (WHO), with the support of
Working Group deliberates on ways to mobilize the World Bank.
sustainable finance as a way of ensuring global Priorities of the G-20 in 2022 under Indonesian Presidency
growth and stability and promoting the transitions
Indonesia assumed the G20 Presidency on 1st
towards greener, more resilient and inclusive
December 2021 under the theme "Recover together,
societies and economies.
Recover Stronger". Indonesia focused on three main
e. Financial Sector issues related discussions pillars for its G20 2022 Presidency namely:
take place directly at the level of the Deputies
(i) Global Health Architecture,
and there is no separate Working Group for the
same. The key areas of discussion have included (ii) Sustainable Energy Transition and
strengthening prudential oversight, improving risk
(iii) Digital Transformation
management, strengthening transparency,
prom oting m arket integrity, establishing Through these pillars, Indonesia focused on
supervisory colleges, enhancing cross-border ensuring equitable access to COVID-19 vaccines,
payments, smooth LIBOR transition, and Central prom oting sustainable and inclusive econom ic
Bank Digital Currencies among others. development through MSMEs participation and digital
f. Global Partnership for Financial Inclusion economy.
(GPFI) works for advancing financial inclusion The broad Finance track priorities under the
globally. Some of the work areas include ways Indonesian G20 Presidency in 2022 were as follows:
to improve financial system infrastructure, pursue 1. Coordination of exit strategies to support global
policies conducive to harnessing emerging recovery,
technologies, facilitating remittance flows and
2. Efforts to deal with the effects of the pandemic
reducing the cost of remittance transfers,
financial literacy and consumer protection, digital (scaring effects) on the economy to support
financial literacy and bridging the digital divide stronger growth in the future,
among others. The GPFI Co-Chairs are Italy and 3. Strengthening payment systems in the digital era,
Russia.
4. Development of sustainable finance
g. International Taxation agenda in the G20
5. Improvement of an inclusive financial system
Finance Track is discussed directly at the level
of the Deputies and there is no formal Working 6. International Tax Agenda
Group on taxation. The matters discussed under
Furthermore, G20 Indonesia also discussed several
the group include addressing tax challenges
legacy issues that included:
arising from digitalization of the economy, fighting
1. Integrating pandemic and climate risks in global
against tax evasion, ending bank secrecy and
risk monitoring;
tax havens, exchange of information, and
addressing tax avoidance by m ultinational 2. Strengthening the Global Financial Safety Net
corporations. (GFSN);
47
3. Increased Capital Flow; strengthening of national health systems by putting people

at the centre of preparedness and equip them to respond
4. Continuing the Data Gap Initiatives;
effectively. They reaffirmed their com mitm ent to
5. Improving Financial Sector Regulatory Reform; strengthen global health governance, with the leading and
6. Strengthen debt management and transparency; coordination role of WHO and support from other
international organizations. They welcom ed the
7. Accelerating the infrastructure agenda towards establishment of a new Financial Intermediary Fund for
sustainable and inclusive development;
Pandemic PPR (the 'Pandemic Fund') hosted by the
8. Optimizing financing support from multilateral World Bank. They looked forward to the launch of the
development banks (MDBs); Pandemic Fund's first call for proposals as soon as
possible and commended the pledges by current donors,
9. Strengthen health system capacity in pandemic
amounting to over USD 1.4 billion, and encouraged
prevention, preparedness and response;
additional voluntary pledges.
10. Continued support for attracting private sector
investment in low-income countries, such as in 4. SDR Channelling: Leaders' committed to
the African region support all vulnerable countries to recover together,
recover stronger. Leaders welcomed pledges amounting
Key Outcomes of Bali Summit, 2022 under the G20 to USD 81.6 billion through the voluntary channelling of
Finance Track Special Drawing Rights (SDRs) or equivalent
1. Reflections on war in Ukraine-Leaders' contributions. They also welcomed the operationalization
recognized that war in Ukraine further adversely impacted of the Resilience and Sustainability Trust (RST) to help
the global economy. They reiterated their national eligible low-income countries, small states and vulnerable
positions as expressed in other fora, including the UN middle-income countries address longer-term structural
Security Council and the UN General Assembly, which, challenges that pose macroeconomic risks, including
in Resolution No. ES-11/1 dated 2nd March 2022, as those stemming from pandemics and climate change.
adopted by majority vote (141 votes for, 5 against, 35 Leaders suggested exploring viable options for countries
abstentions, 12 absent) deplores in the strongest terms to voluntarily channel SDRs through Multilateral
the aggression by the Russian Federation against Ukraine Development Banks (MDBs), while respecting national
and demands its complete and unconditional withdrawal legal frameworks and the need to preserve the reserve
from the territory of Ukraine. Leaders condemned the assets status of SDRs.
war in Ukraine and stressed it is causing immense human 5. Common Framework for debt treatments -
suffering and exacerbating existing fragilities in the global Leaders welcomed the progress achieved under the G20
economy - constraining growth, increasing inflation, Debt Service Suspension Initiative (DSSI) and the recent
disrupting supply chains, heightening energy and food progress on the Common Framework for debt treatment
insecurity, and elevating financial stability risks. They beyond the DSSI including the provision of financing
acknowledged that security issues can have significant assurances for Zambia. They also encouraged the
consequences for the global economy. conclusion of the debt treatment for Ethiopia under an
2. Reflections on Global Economy- Leaders IMF-supported program. Leaders committed to step up
agreed that it is essential that the G20 undertakes efforts to implement the Common Framework in a timely,
tangible, precise, swift and necessary actions, using all orderly and coordinated manner and looked forward to
available policy tools, to address common challenges, progress in the current negotiations under the Common
including through international macro policy cooperation Framework. They also affirmed the importance of joint
and concrete collaborations. In doing so, they showed efforts by all actors, including private creditors, to continue
commitment to support developing countries, particularly working towards enhancing debt transparency.
the least developed and small island developing states, 6. International Financial Architecture- Leaders'
in responding to these global challenges and achieving committed to strengthening the long-term financial
the SDGs. They agreed to take coordinated actions to resilience of the international financial architecture,
advance an agenda for a strong, inclusive and resilient including by promoting sustainable capital flows, and
global recovery and sustainable development that delivers developing local currency capital markets. They
jobs and growth. welcomed the IMF's revised Institutional View on
3. Global Health: Leaders committed to promoting Liberalization and Management of Capital Flows. They
a healthy and sustainable recovery which builds towards also reiterated their commitment to maintaining a strong
achieving and sustaining Universal Health Coverage and effective Global Financial Safety Net with a strong,
under the SDGs. They reaffirmed the importance of quota-based and adequately resourced IMF at its centre.
48
They showed commitment to revisiting the adequacy of increase resilience, in particular against cross-border
quotas and to continue the process of IMF governance spillovers, including by addressing the identified structural
reform under the 16 th General Review of Quotas, vulnerabilities in non-bank financial intermediation (NBFI)
including a new quota formula as a guide, by 15 th from a systemic perspective. They also welcomed the
December 2023. FSB progress report on achieving consistent and
comparable climate-related financial disclosures and the
7. Infrastructure Investment - Leaders recognized
final report on supervisory and regulatory approaches to
the importance of revitalizing infrastructure investment
climate-related risks and the report by the FSB and the
in a sustainable, inclusive, accessible, and affordable way.
Network for Greening the Financial System (NGFS) on
They endorsed the voluntary and non-binding G20/GI Hub
climate-scenario analysis by jurisdictions.
Framework on How to Best Leverage Private Sector
Participation to Scale up Sustainable Infrastructure 11. Technological Innovation - Leaders welcomed
Investment. Leaders endorsed the G20-OECD Policy on-going work by the FSB and international standard
Toolkit on Mobilizing Funding and Financing for Inclusive setters to ensure that the crypto-assets ecosystem,
and Quality Infrastructure Investment and the InfraTracker including so-called stable coins, is closely monitored and
2.0. They also endorsed the Quality Infrastructure subject to robust regulation, supervision, and oversight
Investment (QII) Indicators and associated guidance note, to mitigate potential risks to financial stability. They
developed for the G20 and welcomed the progress made welcomed the FSB consultative report on the review of
towards developing a possible new governance model its high-level recommendations for the regulation,
for the Global Infrastructure Hub (GI Hub) and asked that supervision and oversight of "global stable coin"
principles to guide the process be finalized as soon as arrangements.
possible. 12. Combating money laundering and terrorist
8. Sustainable Finance- Leaders welcomed the financing - Leaders reaffirmed their commitment to
progress m ade across the G20, international delivering the strategic priorities of the Financial Action
organizations, other international networks and initiatives, Task Force (FATF). They welcomed the initiative by the
and the private sector in addressing the priorities of the FATF to promote implementation of international
G20 Sustainable Finance Roadm ap and the standards on virtual assets, in particular the "travel rule",
establishment of the Sustainable Finance Working and transparency of beneficial ownership, and
Group's online dashboard and repository of relevant work. acknowledged their role in the fight against systemic
They endorsed the 2022 G20 Sustainable Finance corruption and environmental crimes, which gravely
Report. Leaders also welcomed the valuable discussion impact economies and societies. They supported the on-
during the Presidency's Forum on policy levers that going work of the FATF to enhance global efforts to seize
incentivize financing and investment to support the criminal proceeds and return funds to victims and states
transition. in line with domestic frameworks. They encouraged all
G20 members to strengthen collaboration to adopt and
9. Globally fair, sustainable, and modern effectively implement the FATF standards.
international tax system - Leaders committed to the
swift implem entation of the OECD/G20 two-pillar 13. Digital Financial Inclusion - Leaders endorsed
international tax package and welcomed the progress on the G20 Financial Inclusion Framework on Harnessing
Pillar One. They also welcomed progress on Pillar Two Digitalization to Increase Productivity and Foster a
Global Anti-Base Erosion (GloBE) Model Rules. They Sustainable and Inclusive Economy for Women, Youth
supported the progress m ade on im plem enting and MSMEs or Yogyakarta Financial Inclusion Framework
internationally agreed tax transparency standards, guided by the G20 2020 Financial Inclusion Action Plan.
including regional efforts and welcome the signing of the Contribution of India for the Summit
Asia Initiative Bali Declaration in July 2022. They also India constructively engaged in the discussions
welcomed the Crypto-Asset Reporting Framework and under various work streams of the Finance Track during
the amendments to the Common Reporting Standard. the G20 Indonesian Presidency. We ensured that a strong
10. Financial Sector- Leaders com mitted to voice is lent to the ongoing discourse that not only conveys
sustaining global financial stability, including through India's position on the agenda issues but is also aimed
continued coordination of policy m easures and at representing the views of the Emerging Market
implem entation of international standards. They Economies (EMEs) in general.
welcomed the FSB's final report on financial sector exit As a co-chair of the Framework Working Group
strategies and scarring effects of COVID-19 and its (FWG), India along with UK and the G20 Presidency
conclusions regarding financial stability issues by the end worked alongside the FWG membership in drafting and
of 2022. They strongly supported global policy actions to finalizing all deliverables/outcome documents of the FWG.
49
India also constructively engaged in the II. BRICS

discussions for effective and swift implementation of the
BRICS is the acronym for an association of five
Common Framework to address debt sustainability issues
major emerging economies: Brazil, Russia, India, China
of low-income countries and supported the Presidency's
and South Africa. The key objective of the BRICS group
continued work towards enhancing debt transparency.
is to build south-south cooperation and evolve a
On climate related issues India constantly coordinated approach to address common concerns of
highlighted the need to mobilize climate finance the developing countries, such as international taxation,
commitments and technology transfer.
climate financing, reforms in governance structure of
India supported the health agenda that aimed at international financial institutions (IFIs) etc.
enhancing dialogue and global cooperation on issues
India has actively participated in all the BRICS
relating to pandemic PPR, promoting the exchange of
Summits held so far under chair ship of member countries
experiences and best practices, developing coordination
arrangements between Finance and Health Ministries, and has adopted a pro-active stance for incorporation of
promoting collective action, assessing and addressing critical issues in the BRICS Forum.
health emergencies with cross-border impact, and Ministry of External Affairs is the nodal Ministry
encouraging effective stewardship of resources for overseeing and coordinating across all areas of BRICS
pandemic PPR, while adopting a One Health approach. cooperation. IER Division, DEA coordinate on the BRICS
India supported the establishment of a new Financial Financial Cooperation agenda in consultation with
Intermediary Fund for Pandemic PPR (the 'Pandemic Reserve Bank of India and other key stakeholders from
Fund') hosted by the World and contributed USD 10 Government of India.
million to the Pandemic Fund.
The Chair ship of BRICS was taken over by China
India joined other G20 members in supporting
from India on 1st January 2022. The XIV BRICS Summit
and implementing the work under the Indonesian
under the theme "Foster High-quality BRICS Partnership,
Presidency to ensure stability of the financial system.
Usher in a New Era for Global Development" was held in
Further, India has actively contributed its perspective
Beijing on 23-24 June 2022.
through participation in the Financial Stability Board
discussions. BRICS Financial Co-operation
Priorities of the G20 in 2023 under Indian Presidency Financial Cooperation is one of the prominent
The them e of India's G20 Presidency - areas of cooperation in the BRICS forum. Issues and
"Vasudhaiva Kutumbakam" or "One Earth One Family initiatives under the BRICS financial cooperation are dealt
One Future" - is drawn from the ancient Sanskrit text of by the Ministries of Finance and Central Banks of the
the Maha Upanishad. It manifests our firm belief in the BRICS nations and such issues are discussed during
power of unity and the value of interconnectedness. the meetings of BRICS Finance Ministers and Central
Bank Governors (FMCBG) assisted by their Finance and
Indian Presidency in 2023 offers India a unique
Central Bank Deputies. Secretary (EA) is India's BRICS
opportunity to set the agenda that is globally relevant and
Finance Deputy and Deputy Governor (RBI) is India's
at the same time mainstreams the perspectives of the
BRICS Central Bank Deputy.
Global South in the G20. People centricity of the issues is
another important element that is reflected across all the BRICS 2022 Meetings & Outcomes
priorities. Given the fact that till 2025, the Presidency of In 2022, under the Chinese Chairship, one
the G20 will be with an emerging market economy (Brazil meeting of the BRICS Finance and Central Bank Deputies
in 2024 and South Africa in 2025), there is an opportunity and two meetings of the BRICS Finance Ministers and
to reflect the aspirations of large number of countries who Central Bank Governors were held. Under BRICS
are not members of the G20 but are considerably affected Financial Cooperation, the following agenda items were
by the decisions emanating from the forum. Development discussed in 2022:
financing, macroeconomic vulnerabilities and maximising
the full potential of digital public infrastructure for achieving Ministry of Finance Issues
inclusive growth are the key tenets on which India's 1. Macro Econom ic Outlook and Policy
priorities have been hoisted. Coordination
The First meeting of the G20 Finance and Central 2. Infrastructure Investment
Bank Deputies was held from (13-15) December 2022
3. New Development Bank
in Bengaluru, thereby kick-starting the G20 Finance Track
meetings under India's 2023 Presidency of G20. 4. BRICS Think Tank Network for Finance
50
Central Bank Issues Indian Regional Office (IRO) at Gujarat International

1. Contingent Reserve Arrangement Issues Finance Tec-City (GIFT City) in Ahmedabad.
2. BRICS Local Currency Bond Fund Issues d. BRICS Think Tank Network for Finance
The BRICS Leaders endorsed the establishment
3. Thematic Cooperation on Key Topics of BRICS Think Tank Network for Finance at the Beijing
The key outcomes under the Chinese Chair ship in 2022 Summit. The Think Tank Network will provide intellectual
are as follows: support, as and when tasked, for knowledge sharing,
exchange of experiences and practices and cooperation
a. Macroeconomic outlook and policy
on finance issues amongst BRICS countries.
coordination
Macroeconomic outlook and policy coordination e. Central Bank Issues
has been one of the core areas of discussion under the Under the BRICS Contingent Reserve
BRICS Finance. India's BRICS Chairmanship in 2021 Arrangement (CRA) the 5th CRA Test Run was conducted
introduced a BRICS Finance Ministers and Central Bank in 2022 by testing the Liquidity Instrument under the IMF-
Governors Joint Statement under this agenda. A BRICS linked portion, without transfer of funds in alternative
Finance Ministers and Central Bank Governors Joint payment currency/currencies. Considerable progress was
Statement was brought out in 2022 during the Chinese made on CRA amendment by the BRICS central banks
BRICS Chairship. and the third edition of the BRICS Economic Bulletin was
produced under China Chair in 2022. The People's Bank
The Joint Statement focused on current risks in of China (PBoC) conducted the surveys on transition
global economic recovery and sustainable development finance and Central Bank Digital Currencies and the draft
and called on members to work together to address Stocktaking Reports were finalized in 2022. The
common challenges. It also emphasized the need to cooperation under the existing work program of BRICS
deepen cooperation among BRICS countries on Rapid Information Security Channel (BRISC) was
infrastructure investment, the New Development Bank, continued by PBoC, which included exchanging cyber
Contingent Reserve Arrangement (CRA), the payment incident information and best practices in information
system and other financial areas, so as to deepen and security, as well as an update to the e-booklet of
consolidate cooperation among BRICS countries on information security regulations. Further, the BRICS
finance. Payments Task Force (BPTF) continued to act as a
b. Infrastructure Investment platform for knowledge and experience sharing through
Focus of this agenda was knowledge and dialogues and discussions with a focus on payments and
experience sharing on the theme of PPP serving for settlements regulations.
sustainable development. A 'Technical Report on Public- BRICS 2023
Private Partnerships for Sustainable Development' was South Africa assumed the BRICS Chairship on
brought out as a deliverable for the year 2022 under 1st January 2023 and will host the XV BRICS Summit in
infrastructure investment agenda through BRICS Task August 2023 under the theme: "BRICS and Africa:
Force on PPP and Infrastructure. The Technical Report Partnership for Mutually Accelerated Growth, Sustainable
illustrates the progress, achievements, good practices Development and Inclusive Multilateralism."
and experience of BRICS countries with regards to PPP
III. G24
promoting sustainable development in terms of economy,
The Intergovernmental Group of Twenty-Four
society, and environment, collects corresponding PPP
on International Monetary Affairs and Development, or
project case studies, and outlines future cooperation.
The Group of 24 (G-24) was established in 1971 as a
c. New Development Bank chapter of the Group of 77 in order to help coordinate
On 19 th May, 2022 the 2nd General Strategy the positions of developing countries on international
(2022-2026) of New Development Bank (NDB) was monetary and development finance issues, and to
approved at the Bank's 7th Annual Meeting of Board of ensure that their interests are adequately represented
Governors. Governors requested the Bank, in its new in negotiations on international monetary matters. In
general strategy cycle to further crystallize its identity as particular, the G-24 focuses on issues on the agendas
an MDB set by EMDCs and for EMDCs, maintain the of the International Monetary and Financial Committee
momentum of membership expansion, expand its non- (IMFC) and the Development Committee (DC) as well
sovereign operation, focus on mitigation and adaptation as in other relevant International fora. Though originally
of climate change, catalyze private capital and strengthen named after the number of founding Member States, it
co-financing with other MDBs, and try to pursue higher now has 28 Members plus China, which acts as a
credit rating. The NDB also announced the launch of its Special Invitee since 1981).
51
The governing body of the G-24 meets twice a V. SAARC & SDF:
year, preceding the Spring and Fall meetings of the Framework on Currency Swap Arrangement
International Monetary and Financial Committee and the
for SAARC Member Countries:
Joint Development Committee of the World Bank and
"Framework on Currency Swap Arrangement for
the International Monetary Fund (IMF). The plenary G-
SAARC Countries" was approved by the Government of
24 meetings are addressed by the heads of the IMF and
India on 1st March, 2012. The Framework was formulated
the World Bank Group as well as by senior officials of
with the intention to provide a line of funding for short
the United Nation (UN) System. Issues are first discussed
term foreign exchange requirements or to meet balance
by the Deputies and culminate at the Ministerial level by
of payments crises till longer term arrangements are
the approval of a document that sets out the consensus
made. Under the facility, RBI offers swaps of varying sizes
view of member countries. The Ministerial document is
to each SAARC m em ber country (Afghanistan,
released as a public Communiqué at a press conference
Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri
held at the end of the meetings. Decision making within
Lanka) depending on their two months import requirement
the G-24 is by consensus.
and not exceeding US$ 2 billion in total, in US$, Euro or
The last G-24 Ministers and Governors Meeting INR subject to a floor of USD 100 Million and a ceiling of
was held virtually on 11th October, 2022. It was chaired USD 400 million. Apart from the country specific limits,
by Governor of the Bank of Guatemala and was followed there is also a provision of 'Standby Swap' of USD 400
by the adoption of a Communiqué. The discussions were Million within the approved Framework to be operated
focused under the theme of "Securing a Sustained Post- from the unutilized balance available, within the overall
pandemic Recovery Under Uncertainty". The meeting size of the Facility of USD 2 billion.
aimed to discuss the key areas where the international
community and international organisations like the IMF Till date, the validity of the framework has been
and World Bank Group need to increase their assistance extended from time to time. The 'Framework on Currency
to Em erging Market and Developing Econom ies Swap Arrangement for SAARC Countries' was last
(EMDEs). Key areas included ensuring food and energy extended till 30th June, 2023. During FY 2022-23, the facility
security, availability of vaccines and treatments, financial has been availed by Maldives, Bhutan and Sri Lanka.
access and stability, adequate liquidity support and SAARC Development Fund: SAARC
development financing in the near- and medium- term. Development Fund (SDF), headquartered in Thimphu,
IV. OECD Bhutan, was established and inaugurated in 2010 by the
The Organization for Economic Cooperation and SAARC Member countries (Afghanistan, Bangladesh,
Development (OECD), founded in 1961, is a global think Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka)
tank that works on a host of economic and development to promote the welfare of people of the SAARC region,
issues. Today, there are 37 OECD members1 spanning to improve their quality of life and to accelerate economic
from South America to Europe and Asia Pacific including growth, social progress and poverty alleviation in the
several advanced economies and three emerging market SAARC region. The Fund serves as the umbrella financial
economies (Mexico, Chile, Turkey). All OECD members institution for SAARC projects and programmes. It is
are signatories to1960 Convention on the OECD and are
aimed to contribute to regional cooperation and
committed to democracy and market economy.
integration through project collaboration. The projects that
India engages with some of the key OECD bodies the SDF aims to fund fall under three broad categories/
through participation in the meetings of committees, their windows namely, Social, Economic and Infrastructure.
related bodies and global fora. Additionally, India and In India, IER Division of Department of Economic Affairs,
OECD engage in bilateral activities, periodic reviews and M/o Finance is the Counterpart Agency for all SDF related
sector- specific publications. OECD also publishes the matters.
OECD Economic Survey of India that is usually done on
a two-year cycle. Till date, 5 Surveys have been published VI. BIMSTEC:
with the last one being released on December 2019. Bay of Bengal Initiative for Multi-Sectoral
Technical and Economic Cooperation (BIMSTEC), a
1
The membership of OECD is constituted by 27 European regional organization, came into being on 6th June 1997
countries (Austria, Belgium, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy,
through the Bangkok Declaration. It comprises of seven
Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Member States lying in the littoral and adjacent areas of
Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, the Bay of Bengal - Bangladesh, Bhutan, India, Nepal,
Turkey and United Kingdom), 5 from America (Canada, Chile,
Colombia, Mexico, and the United States), 1 from West Asia
Sri Lanka, Myanmar and Thailand. DEA, Ministry of
(Israel), 2 from East Asia (Japan and South Korea), 2 from Asia Finance handles the financial cooperation issues under
Pacific (New Zealand and Australia). the BIMSTEC Forum.
52
10. Aid Accounts & Audit Division (AAAD) : as repayment, preparation of Annual External Assistance
10.1 AAAD under Department of Economic Affairs Brochure, processing of claims, repayment of debt and
implements the financial covenants of external Loans/ maintenance of Debt Records. All the Officers/Staff
Grants received by Government of India from various members of this Division are well versed with the
Multilateral and Bilateral donors. Main functions handled functioning of this system.
by this Division are processing the claims received from 10.3.2 IT-application is being promoted by way of
Project Implementing Authorities of externally aided accepting and processing/forwarding of the draw down
projects, to draw down the funds from various external claim s from various Project Implem enting
funding agencies and timely debt servicing liability of Authorities(PIAs). PIAs have been provided software
Government of India in respect of availed external loans. support for processing the e-claims. Such software is
Besides, this Division is also responsible for maintaining being utilized by the PIAs to maximum extent. E-claims
loan records, external debt statistics, publication of external in the form of SOE/Interim unaudited Financial Report
assistance brochure on annual basis, and framing of (IUFR) ensure faster disbursals. In case of World Bank,
estimates of external aid receipts and debt servicing. In claims are processed in E-disbursement mode through
addition, audit of import licenses issued by DGFT offices the World Bank's software client connection from this
for Export Promotion is also conducted by this Division. Division to World Bank.
10.2 Performance/Achievements During Financial 10.3.3 The customized software of this division i.e ICS
year 2022-23 (as on 30th November, 2022) has been upgraded and declared go live from 18th November
10.2.1 Total of 1430 live loan/accounts are being 2022 with a Technical Assistance (TA) from Asian
handled by AAAD. Out of these, 405 loan/Grants accounts Development Bank (ADB). The system is being tested with
are in disbursement mode. Rest of the loans are live from a view to check functional suitability and user requirement.
debt servicing point of view.
10.4 Trainings & Facilitation
10.2.2 External receipts of Loans on Government
Account during financial year 2022-23 ( upto 30 th 10.4.1 In order to familiarise the officers/staff of the PIAs,
November, 2022) is `49286/- crore. In addition to loan training on E-submissions organized by this Division.
receipts, a sum of `792 Crore has been received as Cash As a result of initiatives taken by this Division more claims
Grant. are being received in e-claim forms.
10.2.3 A comparative position of receipts and repayment/ 10.4.2 In order to increase the capacity of the officers
payment in the current year as compared to previous and staff of this division frequently officers are being
financial year and upto 30th November,2022 is as under. nominated to ISTM and other training centres for training.
The areas covered under the trainings comprises of ethics
In ` crore in Governance and Administration, O&M, Cash and
SI. Description 2021-22 2021-22 2022-23 Budget and financial management. This office has
No (as on 30th (as on 30th developed; over a period of time; an excellent centre of
Nov., 2021) Nov., 2022) cross learning as a result of continuous interactions of
the officers and staff at international, national and state
1 Receipts
level conference/ workshops.
(Loans and
Grants) 77697 41267 50078 10.4.3 This office facilitates other ministries, state
2 Payments officials; CPSUs in understanding the fund flow
(Principal and mechanism in case of externally aided projects. The data
Interest) 42602 25926 28996 maintained by this division is shared with other ministries
3. Net Transfer to be used in different reports and analysis.
(1-2) 35095 15341 21082
10.5 Standards & Improvements in the Service
10.3 E-Governance deliveries
10.3.1 The Activities of AAAD have been fully 10.5.1 All the activities of this division have been
computerized since April 1999. A software known as organised hierarchically and standards in terms of time
"Integrated Computerised System" (ICS) is working. This span at each level for their accomplishment have been
covers all the activities in the loan cycle i.e. preparation defined. The standards set out are being adhered to by
of Estimates for External Assistance for receipt as well close monitoring. Stakeholders of this division are well
53
defined consisting of three broad groups i.e. PIAs, in Department of Economic Affairs is in existence in the
external funding agencies and others. Service to be Department.
rendered to these groups is also well defined i.e. smooth
11.4 Training of Staff Members
and quick disbursal of the Loans/Grants, timely debt
11.4.1 Department of Economic Affairs deputes its
servicing and to provide management information as and
officials for training to ISTM and other institutes to
when required.
increase their efficiency and improvement in the quality
10.5.2 To ensure continuous improvement in the of their work. During the period 1.1.2022 to 31.12.2022 a
performance standards, Management Review Meeting total of 51 officials were nominated for the trainings of
(MRMs) are being held. In MRMs performance is critically different levels, which were conducted by the Institute of
reviewed. Methods/suggestions for m aintenance/ Secretariat Training and Management (ISTM), New Delhi.
improvement of the service delivery standards are
11.5 Redressal Of Public Grievances:
discussed by the management.
11.5.1 A Centralized Public Grievances Redressal and
10.5.3 This division is ISO 9001:2015 certified division. Monitoring System (CPGRAM) is operational within the
This certification provides additional assurance to all the Government which attends to all the Public Grievances
stakeholders with respect to the stated standards of this related to various Ministries/ Departments. During the year
division. The terms and conditions of the certification are 2022, 3346 fresh public grievance cases were received
ensured through annual surveillance audit. Recertification in the Department besides 214 brought forward from the
of ISO Certification of this Division was carried out by previous year. Out of these 3560 cases, 3221 cases were
URS on 30.06.2021. Latest ISO annual Surveillance Audit disposed off during the year. Further, 194Appeals against
was conducted in 2022. the disposal of grievances were received and 177Appeals
10.6 Audit of Import Licences were disposed off. Adviser (Admin.) is functioning as the
Nodal Officer for Public Grievances in Department of
10.6.1 AAAD carries out audit of Import Licenses issued Economic Affairs.
by licensing offices of the Director General of Foreign
Trade located at 25 stations for promotion of Export. As 11.6 Right To Information Act, 2005
a result of settlements a sum of `154 lakh has been 11.6.1 In order to facilitate dissemination of
recovered till 30th November, 2022 Now audit teams are information under the provisions of the Right to
being deputed regularly. Information Act, 2005, Department of Economic Affairs
has taken the following actions :
11. Administration Division (i) An RTI Section is in operation in DEA to collect,
11.1 Functions transfer the applications under the RTI Act, 2005
11.1.1 Adm inistration Division is responsible for to the Central Public Information Officers/Appellate
personnel and office administration, implementation of Authorities/Public Authorities concerned and to
Official Language policy of the Governm ent, submit the quarterly returns regarding receipt and
implementation of the Right to Information Act, 2005, disposal of the RTI applications/ appeals to the
redressal of public grievances, training of officials, Record Central Information Commission.
Retention Schedule, Complaints Committee on Sexual (ii) In September 2022, the proactive disclosure page
Harassment of Women Employees etc. was uploaded on the Department's website
11.2 Staff Strength (www.dea.gov.in) which contained information as
11.2.1 The staff strength in Department of Economic required under Section 4 of the RTI Act, 2005. It
Affairs and its attached/sub-ordinate offices/statutory also contains the details of the Department's
bodies along with the representation of Scheduled functions along with its functionaries etc. as
Castes (SCs), Scheduled Tribes (STs), Other Backward required under section 4(1)(b) of the RTI Act, 2005.
Classes (OBCs) and persons with Disabilities therein is
(iii) Under Secretaries/ Deputy Directors/ Assistant
given in Annexure I & II respectively.
Directors, Sr. Accounts Officers and Economic
11.3 Complaints Committee on Sexual Officers level officers of the Department have been
Harassment of Women Employees designated as Central Public Information Officers
11.3.1 A Com plaints Com m ittee for considering (CPIOs) under section 5(1) of the Act, 2005 in
complaints of sexual harassment of women employees respect of subject(s) being handled by them.
54
(iv) Deputy Secretaries/ Directors/ Addl. Economic 2. Bilingual Website

Advisers have been designated as First Appellate The website of the Department is bilingual.
Authorities in terms of Section 19(1) of the Act, Besides other material, all budget document, economic
2005, to deal with the Appeals preferred by survey and other publications and important circulars
applicants who does not receive a decision within
were uploaded simultaneously in Hindi and English.
the time specified in the RTI Act or is aggrieved
by a decision of the Central Public Information 3. Official language inspection
Officer, as the case may be. To ensure compliance of the Official Language
(v) The list of CPIOs and First Appellate Authorities is Act, rules made thereunder, annual program and orders/
updated from time to time on the website of DEA instructions related to official language, etc., in the period
for the information of Public. To facilitate the public, from 27/04/2022 to 07/12/2022, a total of 18 inspections
the RTI Cell is functioning outside the North Block were carried out in the subordinate offices of the
at Gate No. 8, to receive the RTI applications. The Department i.e. SEBI, SPMCIL and NSI, including the
applications received are forwarded to the Head Offices and their attached offices in which Director
concerned CPIOs/ Public Authorities. (O.L.), Deputy Director (O.L.), Assistant Director (O.L.)
(vi) The RTI application can be filed through online and the Translation Officers of the section participated.
portal www.rtionline.gov.in. The RTI applicants
4. Dispatch of Quarterly Progress Report
can see the status of their application as well as
The Quarterly Progress Reports of the Ministry
their replies through the website. Further, transfer
of application can also be done online. These all were collected from all the Sections/Divisions of the
processes have resulted in significant reduction Department. The consolidated quarterly progress report
in time for processing of RTI applications. was sent to the Department of Official Language,
Ministry of Home Affairs.
(vii) During the year 2022 from January 1, 2022 to
December 31, 2022, 2453 RTI applications 5. Central Official Language Implementation
(including 337 physical applications) and 115 Committee Meetings
first appeals, were received in the Department. During this financial year, two meetings of the
An amount of `1940 (Rupees one thousand nine Official Language Implementation Committee have been
hundred and forty only) was received as RTI
held so far, which have been held on February 18, 2022
fees and Documents' fees under the RTI Act.
and November 15, 2022, the remaining meetings are to
11.7 Use of Hindi in Official work be held before the end of the financial year.
11.7.1 The progress of implementation of various 6. Circulation of Annual Program
programs under the Official Language Policy has been
The Annual Program for the year 2022-23 issued
continuously reviewed during the year under report.
by the Department of Official Language, Ministry of Home
11.7.2 All documents were presented bilingually in the Affairs was circulated on 19th May, 2022 to all the
Parliament. Section 3(3) of the Official Languages Act,
Sections/Divisions of the Department including the
1963 and Rule 5 of the Official Language Rules, 1976
Subordinate Offices and put on the dash board in the e-
made thereunder and other instructions issued by the
Department of Official Language were fully complied with. office of the Department.
During the year, several steps were taken in the 7. Projected Schemes
department to increase the use of Hindi in official work. (i) Hindi Advisory Committee meeting is to be
11.7.3 The official language related activities initiated organized as soon as the works related to
in the Department are as follows: the budget and the economic review are
1. Hindi Fortnight completed, along with it is proposed to start
Like other years, this year also "Hindi Fortnight" an Official Language Shield scheme, under
was organized in the Department of Economic Affairs which the subordinate offices of the
from September 14, 2022 to September 30, 2022. In order Department will be encouraged for the
to promote the use of Hindi in the Department, various remarkable work being done in the field of
competitions were organized to create a conducive implementation of official language and they
environment. will be provided shield and citation.
55
(ii) A Hindi workshop related to the official Grammarly, Caxin, Indiastat and access to e-journals and
language will be organized for the purpose back-filed collection through JSTOR is also available.
of spreading information about the rules and 11.8.3 Services
instructions related to the official language 11.8.3.1 Finance Library provides different kinds of
policy to all the sections. services viz. lending, interlibrary loan, consultation,
(iii) Apart from this, there is also a proposal to reprographic, circulation of newspapers and magazines,
organize a Hindi conference in the reference service, current awareness service through
Department, which can be done only after "WEEKLY BULLETIN" as well as providing services
the budget session. through e-mail and also extended the services of e-
governance.
8. Translation Work
All Budget documents are presented to Parliament The Finance Library also undertakes the work of
in Hindi and English. Besides Budget documents, Hindi distribution of publications of Ministry of Finance and
Reserve Bank of India to State Governments, Foreign
Translation Branch has also prepared Hindi versions of
Governments and renowned institutions in India as well
Supplementary Demands, Reports on Public Statistics and
as abroad. A useful links is also provided on intranet by
Status Report of External Debt, FRBM Quarterly Reports
the Library, which helps the readers in search, and
which were laid before the Parliament.
download full text of national and international reports
The translation of the other official documents and data.
as envisaged in the Official Language Act, 1963 and Rules
11.8.4 Publications
made thereunder was also undertaken by the Hindi
11.8.4.1 Finance Library brings out two (print + online)
Branch during the year under report. These include publications i.e. "Weekly Bulletin" and "Current contents.
agreements with Foreign Governments and International
Agencies, Cabinet Notes, Parliam ent questions/ 11.8.5 Digital record
assurances, notifications, Standing Committee papers, 11.8.5.1 Indian Official Documents relating to Economic
and Finance Subject (Center and State since independence)
Action Taken reports, monthly summary for the Cabinet,
and Ministry of Finance Gazette Notifications published in
Official letters and External funding Report.
the Pt. 2 Sec. 3 Sub-section (i) (ordinary) for the year 1955
11.8 Finance Library & Publication Section to 2010 has been digitized. So far around 02 TB Data has
11.8.1 Introduction been digitized and available in digital format.
11.8.1.1 Finance Library & Publication Section was 11.8.6 Computerisation
established in 1945. Finance Library functions as the 11.8.6.1 The Library is fully automated. The Library uses
Central Research and Reference Library in the Ministry KOHA Library package for database management, retrieval,
and caters to the needs of Officials of all the Departments Library automation and other inhouse jobs. The internet
of the Ministry of Finance, Ad-hoc Committees and facility is also available in the Library through which
Commissions set from time to time and research scholars information is provided to the Officers of Ministry of Finance.
from the various Universities in India as well as abroad. As far as accessibility of the online data is
This Library also serves as the Publications concerned, e-governance has been extended to the
Section of the Ministry, coordinating in the procurement Ministry of Finance. A link from intranet site "finance.nic.in"
and distribution of official documents with the various is made available to access the library information.
institutions/individuals on demand in India and abroad. 11.8.7 Other works
Finance Library has been categorized as Grade i. The Library undertook modernization and
III Library on the basis of Department of Expenditure's infrastructure improvement and 97% work has
O.M. No. 19(1)/IC/85 dated 24.07.1990. All the posts in been completed.
ii. The Finance Library also undertakes the work of
the Library are ex cadre posts.
reimbursement of newspapers and magazines
11.8.2 Collection of DEA.
11.8.2.1 Finance Library has specialized collection of iii. This Library also serves specifically as the
around two lakh documents on Economic and Financial Publications Section of the Ministry; coordinating
matters and subscribe to more than 800 periodicals/ in the procurement and distribution of official
newspapers annually and databases like Agriwatch, CMIE, docum ents with the various institutions/
Bloomberg Terminal/Access Anywhere, CEIC portal, individuals on demand in India and abroad.
56
12. Bilateral Cooperation and Sustainable A. Bilateral Official Development Assistance

Finance Division Policy
12.1 Bilateral Cooperation & Sustainable Finance 12.2 Bilateral Official Development Assistance
Division deals with the following functions: Policy:
a. Bilateral Official Development Assistance 12.2.1 India has been accepting external assistance
Policy: Bilateral Development Assistance from bilateral partners in the form of loans, grants and
from all G-8 countries, namely, USA, UK, technical assistance for development of infrastructure,
Japan, Germany, France, Italy, Canada and social sector and for enhancement of knowledge/skills
Russian Federation as well as the European
of Indian nationals at both Centre and States level. As
Union and Republic of South Korea and the
per the guidelines issued by this Department in 2005,
policy relating to it.
bilateral development assistance can be accepted from
b. Concessional Credit through Lines of all G-8 countries, namely USA, UK, Japan, Germany,
Credit (LoCs) extended by Government France, Italy, Canada and the Russian Federation as well
of India to partner countries under Indian as from the European Commission. European Union
Development and Economic Assistance countries outside the G-8 can also provide bilateral
Scheme (IDEAS) and Concessional
development assistance to India, provided they commit
Financing Scheme (CFS)
a minimum annual development assistance of USD 25
c. Economic Policy Dialogues and Forums: million.
BC Division deals with following dialogues/
12.2.2 A revised set o f g uid eline s o n Off icial
meetings-
 India-UK Econom ic and Financial
Development Assistance for Development Cooperation
Dialogue with bilateral partners were issued in December, 2015.
After issuance of revised guidelines, the Republic of
 India-US Econom ic and Financial
South Korea has been recognized as bilateral partner
Partnership
country for accepting Official Development Assistance
 Indo-French Bilateral Dialogue on from them.
Economic and Financial Issues
12.3 Bilateral Development Cooperation with
 India-Korean Finance Minister's Meeting
Japan
 India-Japan Strategic Dialogue on
12.3.1 Japan-Official Development Assistance:
Economic Issues,
12.3.1.1 Japan has been extending Official Development
 India-Japan Finance Dialogue Assistance (ODA) to India since 1958. Japanese ODA in
 India- Switzerland Financial Dialogue the form of loan assistance, grant aid and technical
 India-EU Macro-economic Dialogue assistance to India is received through Japan International
Cooperation Agency (JICA). Japan is the largest bilateral
 India-China Financial Dialogue
donor to India.
 India-Australia Economic Policy Dialogue
12.3.1.2 Government of Japan has committed JPY
 India-New Zealand Economic Policy 412.258 billion (`26,945 crore approx) for 8 Project
Dialogue Proposals to India from January 1, 2022 to November
 India-German Finance Ministry Senior 30, 2022. As on November 30, 2022, 67 loan projects
Officers Meeting ar e und er im ple m en ta tio n with J apane se lo an
 International Platform on Sustainable assistance.
Finance The loan amount committed for these projects
 India-Korea Working Group Meeting is JPY 3,162.375 billion (`1.94 lakh crore approx.). The
d. UNDP and Sustainable Finance cumulative commitment of ODA loan to India has reached
JPY 7,023.63 billion on commitment basis till November
e. Short-term Foreign Training Courses: The
30, 2022.
Division is the focal point for administering
all short-term foreign training courses of the 12.3.1.3 The ODA loan disbursement to India from
duration up to four weeks offered by various January 1, 2022 to November 30, 2022 was JPY 457.434
international agencies. billion (`27,849.89 crore).
57
12.3.2 Grant in Aid well as in the reconstruction of emerging countries.

12.3.2.1 The Government of Japan provides Grant in Aid Through these cooperation activities, participating
to India under the following sectors and criteria: volunteers can, not only contribute to the development
of partner countries but also gain valuable experience in
i) Criteria:
terms of international goodwill, mutual understanding and
a) Development impacts; an expansion in their international perspectives.
b) Utilization of Japanese technology/know- 12.3.4.2 During 1st January 2022 to 30th November
how and likelihood of its dissemination to 2022, 18 proposals were posed to Embassy of Japan
other areas. and No-objection to 13 Volunteers were issued.
ii) Sectors: 12.3.5 JICA Partnership Programme
a) Transport sector, including projects using 12.3.5.1 Recognizing the growing importance of NGOs
inform ation and com m unication in international cooperation, the JICA Partnership
technology (ICT) and road projects with Programme (JPP) was introduced in 2002. JPP is a
slope protection measures (potential line technical cooperation program implemented by JICA to
ministries could include Ministry of Road contribute to the social and economic development of
Transport and Highways, Ministry of developing countries at the grass-roots level, in
Housing & Urban Affairs, etc.) collaboration with partners in Japan, such as NGOs,
b) Power sector, including small-scale hydro universities, local governments and public interest
power projects and solar power projects corporations while applying for JPP, Indian NGOs are
(potential line ministries could include advised to seek a Japanese partner to take part in the
Ministry of Power, Ministry of New and scheme. This has two components:
Renewable Energy, etc.) 1. Japanese NGO / Institution / Local
12.3.2.2 There are four (4) ongoing Grant-in-Aid projects Government through JICA will support Indian
viz. (a) The Project for Implementation of Advanced organization with Japanese expert
Information and Management System in Core Bengaluru personnel, equipment provision and
Financial support through FCRA route;
(b) Construction of the International Cooperation and
Convention Centre in Varanasi (c) The Economic and 2. Japanese NGO / Institution / Local
Social Development Programme (Provision of Medical Government through JICA will provide
Equipment) and (d) Improvement of Power Supply in training of Indian personnel in Japan.
Andaman and Nicobar Islands. 12.3.6 Grassroots Funding
12.3.3 Technical Cooperation Programme 12.3.6.1 The Government of Japan also provides small
12.3.3.1 Technical Cooperation aims at transfer of assistance to Indian NGOs under its Grassroots Funding
technology and knowledge in a bid to develop and Programme through FCRA route on receipt of no
improve human resources and thus contribute to the objection from DEA.
Socio-Economic Development of India. The Technical 12.3.7 Green Aid Plan
Cooperation covers a broad spectrum of fields ranging
from basic human needs to Agriculture and Industrial 12.3.7.1 The Government of Japan (Ministry of Economy,
Development. Trade and Industry) provides technical assistance under
Green Aid Plan through agencies like New Energy and
12.3.3.2 The main components of Technical Cooperation Industrial Development Organization (NEDO), an
are (i) Technical Cooperation Projects, (ii) Technical organization of METI. The areas of cooperation are
Cooperation by Experts, (iii) Technical Cooperation by prevention of water pollution, air pollution, treatment of
Training, (iv) Technical Cooperation by Development wastes and recycling and energy conservation and
Planning. alternative energy source. Model projects are carried out
12.3.3.3 There are 15 ongoing projects under Technical by NEDO on the basis of the MoU signed by NEDO with
Cooperation Programme. Department of Economic Affairs, the concerned line
ministry and the implementing agency.
12.3.4 JOCV Programme
12.4 Bilateral Development Cooperation between
12.3.4.1 JICA's volunteer programs, such as Japan
India and Germany
Overseas Cooperation Volunteer (JOCV), support a wide
range of local activities by Japanese citizens who intend 12.4.1 Germany, through their Ministry for Economic
to cooperate in the economic and social development as Cooperation & Development (BMZ), has been providing
58
both financial and technical assistance to India since 12.4.6 At present, there are 41 ongoing projects
1958. In 2008, the German Ministry for the Environment, receiving external financing/loans from KFW aggregating
Nature Conservation and Nuclear Safety (BMUB) also Euro 5.66 billion from Germany.
initiated assistance under Germ an Government's
12.5 Bilateral Development Cooperation with AFD,
'International Climate Protection Initiative (IKI)', which is
France
an additional instrument for the assistance of the German
Government over and above and without undermining 12.5.1 The Government of France has been extending
the existing sources of Official Development Assistance. development assistance to India since 1968.
Priority areas of Cooperation includes: Energy, 12.5.2 In 2006, Government of France proposed to
Sustainable Urban Development as well as Environment provide untied development assistance to India through
and Management of Natural Resources. the French Agency for Development (AFD). In this regard,
12.4.2 Germany implements its financial assistance an inter-governmental Agreement was signed between
programmes through KfW, the German Government's the two Governments on 25.01.2008 during the State visit
Developm ent Bank. The technical assistance of French President Mr. Nicholas Sarkozy to India.
programmes are implemented through GIZ (earlier GTZ) 12.5.3 AFD has been entrusted with a strategic mandate
- a fully-owned corporation of German Government. tailored to the Indian Government's priorities. It is
Financial Assistance is provided as Reduced Interest implemented through three main focuses for cooperation:
Loan (EURIBOR-based loan) as well as Financing grants. Promote sustainable and integrated urban development;
The technical assistance is provided in the form of grant Encourage energy efficiency and renewable energy
and services by project experts. development; Conserve the country's biodiversity and
12.4.3 Under bilateral developm ent cooperation natural resources.
programme two annual meetings at the level of Joint 12.5.4 Since 2008, total net cumulated financing by AFD
Secretary/ Additional Secretary (Bilateral Cooperation) i.e. amounts to EUR 2.5 billion. This financing was provided
Indo-German Annual Consultations and Indo-German through ODA- compliant loans, on a sovereign and non-
Annual Negotiations are held, generally during 2nd sovereign basis. On an average AFD makes annual
quarter and 4th quarter of the year respectively. In the commitment of Euro 250 million. Major areas of ongoing
Annual Consultations, apart from the policy issues, the cooperation are in the field of:
discussion on ongoing projects and new projects and
review of ongoing projects are made. In Annual a) Cooperation in the field of public transport
Negotiations, the Government of Germany makes sector;
commitments of funds for new projects as well as for b) Smart City Mission and
additional funding for ongoing projects. On an average
c) Water, Environment and Biodiversity sector.
Germany makes an annual commitment of Euro 1 billion.
The Indo-German Annual Negotiation meeting 2022 was 12.5.5 At present, there are 11 ongoing loans for Euro
held in New Delhi on 28th November 2022. The total 1.13 billion with financial assistance from AFD. Some of
volume of funds committed by the German side for the major projects being financed by AFD are Ahmedabad
Technical and Financial Cooperation projects and Metro Phase II, Surat Metro, Smart City Programme.
programmes in 2022 amounts to EUR 982.97 (EUR
12.5.6 French Government also provides technical
919.50 million FC and EUR 39.50 million TC). The
assistance in the form of FASEP facility Scheme. FASEP
cumulative volume of commitment made by the Germany
facility is managed by the Treasury and Economic Policy
for bilateral Technical and Financial Cooperation till 2022
General Directorate of the French Ministry of Economy,
amounts to EUR 22.93 billion.
Finance and Industry. Under this facility, grants are
12.4.5 Pursuant to the Joint Declaration of Intent signed provided to finance technical cooperation in the area of
between Hon'ble PM and German Chancellor Olaf Scholz infrastructure projects (water, sanitation, solid waste,
in May, 2022 to commit additional at least Euro 10 billion environment, transport, energy).
under the Indo-German Partnership for Green and
12.6 Bilateral Development cooperation with
Sustainable Development, the German side has
Republic of Korea:
committed a total of Euro 1009.96 million till November
2022 which includes Euro 982.97 million committed 12.6.1 In the Joint Statement for Special Partnership
during Indo-German Annual Negotiation Meeting held on signed during the Prime Minister's visit to Republic of
28.11.2022. In 2022, record volume of financing Korea (RoK) during May 18-19, 2015, it was agreed to
agreements aggregating Euro 1.64 billion were signed upgrade the bilateral relationship between the two
under Indo-German Bilateral Development Cooperation. countries to a 'Special Strategic Partnership' and to
59
expand it into a wide range of areas. Accordingly, RoK extended sine die vide amendment dated 24th November
was accepted as bilateral partner for development 1998.
cooperation during October, 2016. In the 5th India-Korea EIB loan signed during 2022-2023
Finance Minsters' Meeting held on June 14, 2017 in
Seoul, an Economic Development Cooperation Fund 12.8.3 During the year, two Finance Contracts
(EDCF) Agreement was signed between the two aggregating Euro 300 million loan were signed between
Governments for US$ 1 billion Official Development DEA and EIB for the following two metro rail projects:
Assistance (ODA) to India. a. Bhopal Metro Rail Project
12.7 Development Cooperation between India and b. Pune Metro Rail Project.
European Union
12.9 Bilateral Development Cooperation with
12.7.1 The European Union (EU) provides development United Kingdom
assistance to India in the form of Grants. The priority
12.9.1 The United Kingdom (UK) has been providing
areas include environment, public health and education.
development assistance to India since 1958. The
Since 2014, the financial component of development
assistance from the UK, through its Department for
assistance from EU was discontinued, however technical
International Development (DFID), flows to mutually
cooperation and exchange of best practices remains
agreed government projects and programmes in the form
active in three lines (i) in areas of mutual interest (ii) in
of financial and technical assistance. The Development
areas relevant to the Sustainable Development Goals with
assistance is received m ainly for achieving the
civil society organizations and (iii) at a regional level to
Sustainable Development Goals (SDGs). Presently,
address global challenges.
Odisha, Madhya Pradesh and Bihar are the three focus
12.7.2 The closure/execution phase of technical states of DFID.
assistance project, namely "Support to Renewable
12.9.2 W ith effect from January 2016, all new
Energy, Clean Technologies and Energy Efficiency in
development cooperation programmes by the UK
India" is undergoing, which will end in April 01, 2024.
Government have been either Technical Assistance (TA)
12.8 European Investment Bank (EIB) programmes focused on sharing skills and expertise, or
12.8.1 External Financing in India by European in investments in private sector under PSDI projects
Investment Bank (EIB) focused on helping the poor.
12.8.1.1 The European Investment bank is the European 12.9.3 With effect from September 2, 2020, the UK side
Union's financing institution which was established in has informed that the Foreign and Commonwealth Office
1958 under the treaty of Rome (1957) to provide financing (FCO) and the Department for International Development
for capital investment. The members of the EIB are the (DfID) have ceased to exist. The Foreign, Commonwealth
member States of the European Union, who have all and Development Office (FCDO) will take on responsibility
subscribed to the Bank's capital. Outside the European for Memorandums of Understanding and other contracts
Union, EIB financing operations are conducted principally agreed by either the Foreign and Commonwealth Office
from the Bank's own resource but also, under mandate, or the Department for International Development.
from Union or Member States' budgetary resources. 12.10 Bilateral Development Cooperation with the USA
Under these arrangements, the EIB's funds are utilized
12.10.1 U.S. Agency for International Development
to finance investm ents in countries signatory to
(USAID)
Cooperation Agreement with the EU.
12.10.1.1 The United States of America's bilateral
12.8.2 EIB in India:
development assistance to India started in1951 and it is
12.8.2.1 EIB's activities in India is anchored by the Joint m ainly adm inistered through USAID. Since its
Action Plan (JAP) of the Strategic Partnership between com mencem ent, USAID has provided economic
the EU and India. EIB aims to increase its lending assistance of over US $ 17 billion to India in various
activities focusing mainly on environmental sustainability sectors for over 555 projects. Currently, the following
and large infrastructure project through FDI, transfer of seven projects worth a total budget of US $ 750 million
technology and know-how. EIB investments in India are (approx.) is being implemented by USAID in partnership
governed by the Framework Agreement for Financial with GOI:
Cooperation. This agreement was signed between India
i. Partnership Agreement for Agri. & Food
and EIB on 25th November 1993 by the Charge d' Affairs
Security Program;
of India at Brussels. The Framework Agreement was
initially valid for a period of three years and later it was ii. Partnership Agreement for Sustainable
60
Forests and Climate Adaptation Program; extension to the scheme has been granted in 2015 for
iii. Partnership Agreement for Water, Sanitation another five years i.e. 2015-16 to 2019-2020, with revised
set of guidelines with a view to improve efficiency and
and Hygiene (WASH);
make the system robust and transparent.
iv. Partnership Agreement for Renewable Energy
12.11. 2 LoCs are being operated through Export-Import
Technology Commercialization & Innovation;
Bank of India, which raises resources from the market
v. Partnership Agreement for Health Project; and provides LoCs to recipient Governm ents at
vi. Disaster Management Support Project; and concessional rates. GoI backs the LoCs through a Deed
of Guarantee in favour of the lending bank to guard
vii. Partnership Agreement for the Energy
against any default by the borrowing Government in
Efficiency Technology Commercialization and
payment of interest and principal to the lending bank.
Innovation Project.
GoI also extends Interest Equalization Support (IES) to
12.10.2 United States Trade and Development Agency the lending bank for enabling it to lend on concessional
(USTDA) terms.
12.10.2.1 USTDA promotes economic growth in emerging 12.11. 3 With the approval of the Cabinet, the Indian
economies by facilitating the participation of U.S. Development and Economic Assistance Scheme (IDEAS)
businesses in the planning and execution of priority have been revamped and continued till 31 March, 2026,
development projects in host countries. Since 1992, the or till further review, whichever is earlier
U.S. Trade and Development Agency has supported over
12.11.4 As on November 30, 2022, 312 LOCs have
100 priority development projects in India with public and
been extended to 68 countries for an amount of USD
private sector sponsors.
32.29 billion. Out of this, value of contracts covered under
12.10.3 International Development Research Centre the LOC by Exim Bank is USD 14.33 billion and
(IDRC) disbursements made are USD 10.54 billion. During FY
12.10.3.1 The Canadian bilateral development assistance 2022-23 (i.e. April, 2022 to November 30, 2022), 5 LOCs
to India is received through IDRC - an entity created and worth USD 659 million have been extended to developing
funded by the Parliament of Canada. IDRC supports countries''.
research activities in developing countries to promote 12.12 Credit extended under Concessional
growth, reduce poverty, and drive large-scale positive Financing Scheme (CFS)
change. In India, IDRC extends grant assistance to
12.12.1 The Concessional Financing Scheme was
various Govt. and Non-Govt. organizations for research
introduced in September 2015 after obtaining the approval
projects in the field of agriculture, health and family
of CCEA to support Indian companies bidding for
welfare, etc.
strategically important infrastructure projects abroad. The
B. Concessional Credit extended by guidelines on CFS were revised on 10-08-2018 for the
Government of India under IDEAS and CFS period from 2018-2023.
12.11 Lines of Credit (LoCs) extended to developing 12.12.2 Under the Scheme, MEA selects the specific
countries under Indian Development and projects keeping in view strategic interest of India and
Economic Assistance Scheme (IDEAS). sends the same to Department of Economic Affairs
12. 11.1 Lines of Credit (LoCs) form an important (DEA). The strategic importance of a project to deserve
component of India's diplomatic strategy and have been financing under this Scheme, is decided, on a case-to-
very useful in generating goodwill and building long term case basis, by a Committee chaired by Secretary (DEA)
partnerships. GoI extends Lines of Credit to Developing and with members from Department of Expenditure,
African and Non-African Countries through Indian Ministry of External Affairs, Department for Promotion of
Development and Econom ic Assistance Scheme Industry and Internal Trade (DPIIT), Department of
(IDEAS). This Scheme was initially known as "India Commerce, Department of Financial Services and
Development Initiative" (IDI) and flows from the Ministry of Home Affairs. The Deputy National Security
announcement made by the Finance Minister in the Union Adviser is also a member of this Committee. Once
Budget for FY 2003-04. GoI has been extending Lines approved by the Committee, DEA issues a formal letter
of Credit to developing countries under IDEA Scheme to EXIM Bank conveying approval for financing of the
since 2005-06. Initially proposed to be operated for five project under CFS.
years from 2005-06 to 2009-10, the scheme was granted 12.12.3 The Scheme is being operated through the
first extension in 2010 from 2010-11 to 2014-15. Second Export-Import Bank of India, which raises resources from
61
the market to provide concessional finance. GoI provides C. Economic Dialogues and Forums
counter guarantee and interest equalization support of 14. During the year 2022-23, following dialogues/
2% to the EXIM Bank. meetings were held :
12.12.4 Two Projects agregating USD 2.6 billion are 12.14.1 India-Japan Finance Dialogue:
under implementation under the CFS providing 12.14.1.1 The 1st India-Japan Finance Dialogue was
concessional financing to the neighbouring countries held on 16th June, 2022 in New Delhi under the co-
Bangladesh and Sri Lanka. chairmanship of Secretary, Department of Economic
Affairs, Ministry of Finance and Vice Minister of Finance
12.12.5 The concessional credit extended under the for International Affairs, Japan. Both sides exchanged
CFS has been merged as a distinct views on the macroeconomic situation, financial system,
component under Indian Development and financial digitalization and investment environment and
Economic Assistance Scheme (IDEAS) 2022. agreed to continue discussions for further promoting
Azadi Ka Amrit Mahotsav financial cooperation and strengthening bilateral relations.
12.12.6 During the iconic week celebrations by Ministry 12.14.2 India-Korea Working Group Meeting:
of Finance under Azadi Ka Amrit Mahotsav , Hon'ble 12.14.2.1 India-Korea Working Group Meeting (WGM)
Finance Minister launched the New e-Tracking and serves as a platform for discussing all the issues
Remote Administration (NETRA) website and Mobile App pertaining to the financial package offered by Republic
for Indian Development and Economic Assistance of Korea and progress of candidate projects etc. The 10th
India-Korea WGM was held on July 07, 2022 in Seoul
Scheme (IDEAS) on June 8, 2022.
under the co-chairmanship of Deputy Director General,
12.13 MoU between EXIM Bank and Republic of DEA from Indian side and Director, Ministry of Economy
Chad and Finance from Korean side.
12.13.1 A memorandum of understanding (MOU) is 12.14.3 India-US Economic & Financial Partnership
signed between the EXIM Bank of India, on behalf of (EFP) meeting
India and the Republic of Chad in respect of their request 12.14.3.1 There is a mechanism of Economic & Financial
for debt treatment under the G20 "Common Framework Partnership Ministerial meetings between India and the
for Debt Treatments beyond the DSSI". The MoU seeks U.S.A. in place since 2010. The last/ ninth ministerial
commitment from the Creditor Committee members to meeting of the India-USA Econom ic & Financial
reconvene the meeting in future when the IMF-WBG Debt Partnership was held on 11th November 2022 in New
Sustainability Analysis (DSA) assesses that a financing Delhi, India. The Indian delegation was led by Hon'ble
gap has reappeared. The G20 members including India Finance Minister, Smt. Nirmala Sitharaman and the U.S.
and the Paris Club endorsed the "Common Framework delegation was led by the Secretary of the U.S. Treasury,
Dr. Janet Yellen.
for Debt Treatments beyond the DSSI" in the G20 Finance
Ministers and Central Bank Governors' (FMCBG) meeting 12.14.3.2 During the meeting, discussions were held on
held in November 2020. Under this framework, the debtor a range of subjects, including macroeconomic outlook,
country requires signing of an MoU with participating supply chain resilience, climate finance, multilateral
creditors and seeks a treatment at least as favorable as engagement, global debt vulnerabilities, anti-money
the one agreed in the MoU (known as 'Comparability of laundering, and combating the financing of terrorism. The
Treatment' (COT) principle) from all its other official meeting concluded with the adoption of a Joint Statement.
bilateral creditors and private creditors. Further, the debt D. UNDP and Sustainable Finance
treatment must be supported with the IMF program and
12.15 United Nations Development Programme
need for debt treatment and the required restructuring 12.15.1 UNDP is an agency of the United Nations
financial envelope should be based on the DSA of IMF- working in the areas of human development, systems
WBG. The first request for debt relief under the Common and institutional strengthening, inclusive growth and
Framework was received from the Republic of Chad in sustainable livelihoods, sustainable energy, environment
December 2020. A committee of creditors was formed and resilience. UNDP is led by the Executive Board which
with members from India, China, Saudi Arabia and France provides inter-governmental support to and supervision
in April 2021. The signed MOU is the outcome of the of UNDP activities. Currently, India is a member of the
series of technical and creditors committee meetings held Board where the Permanent Representative of India to
so far to address the debt vulnerabilities of the Republic the United Nations represents India. India's annual
of Chad. contribution to the UNDP has been to the extent of US$
62
4.5 million. Besides this contribution, India pays the local inclusive entity, presently has 19 member countries
office expense to UNDP towards Government Local representing 55% of greenhouse gas emissions, 51% of
Office Contributions. DEA is the point of interface between the world population and 55% of global GDP. Work of
UNDP and any other national or sub-national authorities IPSF is informed by twelve observers which include the
and agencies in India. DEA decides the amount of World Bank, IMF, UNDP, UNEP and OECD.
voluntary contribution to UNDP and makes local office 12.17.2 IPSF will enable India to participate in the
contribution. Projects implemented by UNDP in India are process of global deliberations on the evolution of
considered for clearance in DEA. Sustainable Finance as a major line of financing for the
12.16 Global Environment Facility future, in the crucial climate change management sector.
12.16.1 Global Environment Facility (GEF) was The third IPSF Annual Report and IPSF Transition
established on the eve of the 1992 Rio Earth Summit to Finance report were published in November 2022 at the
help tackle earth's m ost pressing environmental occasion of the IPSF Annual Event. These reports give
problems. GEF's Secretariat is based in Washington D.C., an overview of the work of the IPSF during the year, such
USA. GEF provides grants for projects related to as the work on taxonomies, disclosures and transition
biodiversity, climate change, chemical waste, international finance.
waters and land degradation. The GEF connects 184 12.18 Climate Finance Leadership Initiative (CFLI)
member countries with international institutions, civil India
society organizations (CSOs), and the private sector to 12.18.1 The Climate Finance Leadership Initiative (CFLI)
address global environmental issues while supporting India partnership was launched at the 11th India-UK
national sustainable development initiatives. Economic and Financial Dialogue held on 2nd September
12.16.2 India is a founder mem ber of GEF. The 2021. CFLI is a group of leading financial institutions led
Executive Director of India in the World Bank Group by UN Special Envoy for Climate Ambition and Solutions,
represents the South Asian Constituency in the Council Mr Michael Bloomberg. CFLI India aims to work with
of GEF. The constituency members include Bangladesh, financial institutions, corporates, and existing sustainable
Bhutan, Maldives, Nepal and Sri Lanka. India in GEF is finance initiatives to accelerate efforts to mobilise capital
represented by DEA as Political Focal Point (PFP) and into India for sustainable infrastructure projects in specific
low-carbon sectors. N. Chandrasekaran, Chairman, Tata
by Ministry of Environment, Forest and Climate Change
Sons and Shemara Wikramanayake, Managing Director
(MoEFCC) as Operational Focal Point (OFP). The PFP
and Chief Executive Officer, Macquarie Group are co-
deals with the financing framework of GEF as per which
chairs of CFLI India.
the funds are contributed by the member countries to
the GEF kitty. The OFP coordinates all GEF-related E. Foreign Training Courses/Programmes
activities within a country and reviews project ideas, 12.18.2 Department of Economic Affairs is the nodal
checks against eligibility criteria and ensures that new point for administering short term foreign training courses
project ideas will not duplicate an existing project. offered by some bilateral partner countries under bilateral
cooperation programme and some multilateral agencies.
12.16.3 India is a donor as well as a recipient member
These courses are intended for capacity building of the
of GEF. Being the PFP for GEF, DEA decides voluntary
officers in various spheres/fields of activities including
contribution to GEF. India has contributed around USD
sectors such as Education, Health, Water Resources,
96.75 million to GEF since its inception in 1991. This also
Disaster Management, Governance, Natural Resources
includes committed voluntary contribution of USD 18.75
and Energy, Agriculture, Nature Conservation,
million under the current replenishment cycle i.e., GEF-8 Environmental Management, etc. Nominations are invited
that runs from 2022-2026. Under GEF-7 (2018-2022), from all Ministries /Departments, State Governments/
India received a total allocation of USD 85.62 million. Union Territories. The nominations are screened by a
12.17 International Platform on Sustainable Finance Selection Com m ittee in DEA and thereafter
12.17.1 International Platform on Sustainable Finance recommended to the sponsoring Government/Agency for
(IPSF) is a forum for dialogue between policymakers, acceptance. During 2022-23 (upto November, 2022) DEA
with the overall aim of increasing the amount of private has processed trainings for 134 Short Term Foreign
capital being invested in environmentally sustainable Training Programmes (less than four weeks) from
investments. IPSF, an initiative taken by the European Singapore Cooperation Programme Training Award
Union, was launched on 18th October 2019 at (SCPTA), Japan International Cooperation Agency (JICA)
Washington DC, USA with India as a founding member. and Malaysian Government as received and suitable
This platform, designed as a member driven informal and applicants have been recommended for the purpose.
63
13. Integrated Finance Division Services. This involves finalizing the Budget
Estimates/ the Revised Estimates/estimating final
13.1 The Division is responsible for the following requirem ents/ surrender of savings, re-
functions: appropriations and vetting of Head wise
(i) Tendering financial advice & concurrence to Appropriation Accounts.
proposals involving expenditure in respect of DEA
and DFS as well as their attached and subordinate (iv) Coordination, Compilation, Printing and laying of the
offices e.g. Security Appellate Tribunal (SAT)/ 'Detailed Demand for Grants (DDG)' and 'Output
National Savings Institute/G-20 Secretariat /Office Outcome Monitoring Framework(OOMF)' for
of Special Court, Mumbai/ Office of Custodian/ Debt Central Sector and Centrally Sponsored
Recovery Tribunals, Pension Fund Regulatory and Schemes costing less than `500.00 crore of the
Developm ent Authority and Office of Court Ministry of Finance in Parliament.
Liquidator, Kolkata
(v) Coordination of all matters relating to the
(ii) Exercising expenditure control and management, examination of the DDG by the Parliamentary
ensuring rationalization of expenditure and Standing Committee on Finance.
compliance of economy measures in accordance
(vi) Monitoring of pending PAC/C&AG Audit Paras.
with th e instruc tions of the Departm e nt of
Expenditure including regular m onitoring of (vii) Coordination, Compilation, Printing and Presentation
expenditure through monthly/quarterly reviews of Statements to be made by Hon'ble Finance Minister
and submission of reports to the concerned as required in terms of Rule 73-A, in Lok Sabha/Rajya
Secretaries. Sabha in respect of implementation of Reports of the
Standing Committee.
(iii) The Division also administers two Detailed Demands
for Grants i.e. Grant No.30-Department of Economic (viii) Budgetary position regarding the Grants
Affairs and Grant No.31-Department of Financial administered by the Division is given below:
13.2 Budgetary allocation of the Grants (on net basis)

( ` in crore)
Grant BE 2022-23 RE 2022-23 BE 2023-24
30- Department of Economic Affairs Revenue 6143.36 6803.80 6321.62
Capital 8396.90 4944.07 4559.43
Total 14540.26 11747.87 10881.05
32- Department of Financial Services Revenue 1102.70 1366.42 1112.35
Capital 4211.03 3536.00 212.29
Total 5313.73 4902.42 1324.64
The best practices followed for effective expenditure (c) Strengthening of internal control mechanism by
control includes: getting internal audits undertaken.
(a) Expenditure progress reviewed quarterly with Major (d) Monthly monitoring of Major Schemes/Programmes
Head/Schem e 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.
64
PARAS OF AUDIT REPORTS OF C&AG - Details of ATNs Audit paras pending with different Ministries/Departments
and their disposal status - as on 31.01.2023
Name of the Ministry/Department : Ministry of Finance
(Department of Economic Affairs)
Sl. No & Year No. of Paras/PA Details of the Paras/PA reports on which ATNs are pending.
No. of the reports on which No of ATN not No of ATNs Sent No of ATNs which
Report ATNs have been sent by the but returned with the have been finally
submitted to PAC Ministry even observations & vetted by audit but
after vetting by Audit for the first time Audit is awaiting their have not been
re-submission submitted by the
by the Ministry. Ministry to PAC
1. 6 of 2021 ... ... ... 1
2. 7 of 2021 11 ... 2 ...
3. 18 of 2022 ... ... 1 ...
4. 32 of 2022 ... 1 ... ...
Summary of Important Audit Observations:- Chapter 2: Overview of Union Finances

Report No. 31 of 2022 (Financial Audit) - Union
The Gross Domestic Product (GDP) at the end of FY21
Government Accounts of the Union Government for the
was `135,58,473 crore at Constant Prices (base year
year 2020-21
2011-12) and `198,00,914 crore at Current Prices. In both
Tabled in the Parliament on: 21st December, 2022 cases there was a decline of 6.60 per cent and 1.36 per
cent over the previous year respectively. This is against
The Report includes matters arising from test audit of
the Finance Accounts and the Appropriation Accounts of a GDP growth of 3.74 per cent at Constant Prices and a
the Union Government for the year ended March 2021. growth of 6.22 per cent at Current Prices during FY20.
However, the prevailing scenario may be viewed in light
Chapter 1: Introduction of the fact that the economy suffered adversely during
The Annual Accounts of the Union Government presented 2020-21 on account of Covid pandemic.
to the Parliament consist of the Finance Accounts and [Para 2.1]
the Appropriation Accounts. The Union Government
During FY21, the Union Government had total resources
Finance Accounts (UGFA) depict the receipts and
of `135,36,878 crore through debt receipts (`81,62,910
payments from the Consolidated Fund of India (CFI),
crore, 60.30 per cent), gross non-debt receipts
Contingency Fund and Public Account. The Union
(`25,27,330 crore, 18.67 per cent) and gross receipts
Governm ent Appropriation Accounts com pare
into public accounts (`28,48,879 crore, 21.05 per cent).
expenditure with the allotments authorised by the
The application of total resources was `135,31,932 crore,
Parliament and provide explanations for variations
on repayment of debt (`61,84,635 crore, 45.69 per cent),
between the two beyond specified limits under each
discharge of liabilities on Public Account (`28,44,653
Grant/ Appropriation.
crore, 21.01 per cent), actual expenditure (`39,07,647
This Report of the Comptroller and Auditor General of crore, 28.87 per cent) and States' share in Union taxes
India (CAG) on the finances of the Union Government (`5,94,997 crore, 4.40 per cent). Gross non-debt receipts
analyses the financial performance of the Union of `25,27,330 crore comprise gross revenue receipts
Government and discusses the significant trends and (`24,59,510 crore) and Non-Debt Capital receipts
structural profile of the Government's receipts and (`67,820 crore). The gross revenue receipts of
disbursements during the financial year 2020-21. `24,59,510 crore consist of gross tax receipts of
65
`20,27,104 crore (includes States' share in Union taxes Grants-in-Aid (GiA) to States and UTs pertaining to
of `5,94,997 crore) and non-tax receipts of `4,32,406 Centrally Sponsored Schemes plateaued in the last four
crore. years and was `2,08,394.63 crore in FY21, while the
Finance Commission Grants increased substantially from
[Para 2.3] `93,703.58 crore to `1,84,062.50 crore in last two years.
In gross tax receipts of `20,27,104 crore, direct taxes The Finance Commission Grants increased by 48.79 per
amounted to `9,45,117 crore (46.42 per cent) and indirect cent in FY21 mainly on account of increase in 'post-
taxes to `10,81,987 crore (53.38 per cent). Further, cess devolution revenue deficit grant' by `46,026.50 crore. In
respect of UTs with Legislature, the increase was on
collections at `3,99,949 crore constituted about one-fifth
account of 'Special Assistance' to Jammu and Kashmir,
of the gross tax receipt in FY21.
amounting to `30,757 crore.
[Para 2.3 and Para 2.3.1.1] [Para 2.4.2(D)]
Total expenditure of the Union at `39,07,647 crore in FY21 In FY21, the total liability as per UGFA was `122,85,644
increased by 28.20 per cent over the previous year. While crore. Total liabilities consistently increased by more than
revenue expenditure of `33,14,852 crore registered 10 per cent from FY18 onwards. The increase was 17.64
increase of 26.75 per cent, expenditure on loans and per cent in FY21, on account of increase in Public Debt
advances of `2,49,846 crore registered increase of (22.88 per cent).
453.48 per cent from `45,141 crore, on account of [Para 2.5]
enhanced loans and advances to State and UT
Fiscal deficit in FY21 was `19,75,314 crore. Fiscal deficit
Governm ents, and for economic services sector.
was financed mainly from the net internal debt with more
However, capital expenditure of `3,42,949 crore
than 90 per cent share. External debt for financing fiscal
decreased by 11.55 per cent compared to the previous deficit also saw a consistent increase through FY17 from
year's figures of `3,87,744 crore. `17,997 crore to `89,223 crore in FY21. Fiscal Deficit of
[Paras 2.4 and 2.4.1] `19,75,314 crore in FY21 included borrowing of `1,10,208
crore by the Union Government on behalf of State
Revenue expenditure of `33,14,852 crore include interest Governments, which was transferred to them as back to
payments of `7,20,984 crore (21.75 per cent) in FY21 - back loan, to com pensate for shortfall in GST
on internal debt (`6,44,829 crore), on Small Savings and Compensation Cess. Out of the fiscal deficit of `19,75,314
Provident Fund, etc. (`42,429 crore), on external debt crore in FY21, `14,50,339 crore (73.42 per cent) was on
(`8,204 crore) and rest on other obligations (`25,522 revenue account, with an year on year increase of 8.71
crore). As a proportion of revenue receipts, interest per cent.
payments grew from 33.64 per cent in FY20 to 38.67 per [Para 2.7]
cent in FY21.
Chapter 3: Quality of Accounts and Financial
[Para 2.4.2(A)] Reporting Practices
Expenditure on subsidies in FY21 rose by 187.81 per Audit of guarantees as depicted in Statement 4 of UGFA
cent to `7,54,936 crore over FY20, mainly on account of revealed instances of non-disclosure of guarantees given
payment of arrears to Food Corporation of India in lieu of to public sector entities, variation between guarantees
shown in UGFA and CPSEs records and non recovery of
food subsidy. The annual growth on food subsidy in FY21
guarantee fees.
was 398.06 per cent. Due to this substantial increase,
[Para 3.2]
the expenditure on subsidies increased as a percentage
of revenue expenditure from 10.03 per cent in FY20 to UGFA Statement 11 shows the details of investments by
22.77 per cent in FY21. the Union Government in Statutory Corporations,
[Para 2.4.2(C)] Companies, other Joint Stock Companies, Co-operative
66
Banks and Societies etc. There was mismatch of `119,04,054.99 crore, total expenditure thereon was
information relating to number of equity shares and `107,52,209.61 crore with overall savings of
percentage of Government shareholding in comparison `11,51,845.38 crore.
with annual reports of the entities, non-depiction of [Para 4.1.1]
investments in certain entities, shortfall in payment of
There was excess disbursement of `1,18,651.04 crore
dividend and non-depiction of dividend etc.
over authorization involving two Grants of Ministry of
[Para 3.3]
Defence and one Grant pertaining to Department of Food
Suspense heads depicted only net balances and did not and Public Distribution. The main reason for excess of
disclose the outstanding amount separately as Credit and `1,18,648.60 crore in the Department of Food and Public
Debit balances under these heads. Resultantly, the Distribution was payment of subsidy to Food Corporation
balances varied by 91.64 per cent under Suspense of India (FCI) and repayment of outstanding balance of
Account (Civil) and 58.60 per cent under PSB Suspense. NSSF loan to FCI. The Government stated that the
Accumulation of large suspense balances Impacts on the excess would be regularized at appropriate time by
accuracy of receipt, expenditure and cash balance obtaining Parliament's approval, in consultation with MoF.
position as appearing in the accounts. [Para 4.2.1]
[Para 3.4.1 and 3.4.2] Total savings under all the Grants/ Appropriations were
There were instances of short/ non-transfer of collected `11,51,845.38 crore, constituting 9.68 per cent of total
authorisations. There were Savings of `100 crore or more
amounts of cess/ levy to the designated reserve funds,
in 113 segments of 77 Grants/ Appropriations amounting
non-opening/ non-operationalisation of reserve funds,
to `12,68,488.40 crore. Further, out of the 22 Grants/
dorm ant reserve funds without any transactions
Appropriations with savings of `5,000 crore or more in
thereunder and deviation from approved accounting
FY21, nine had substantial savings in FY19 and FY20 as
procedure in accounting the transactions under reserve
well.
funds.
[Para 4.2.2 & 4.2.2.1]
[Para 3.6]
Significant savings of `500 crore or more at minor-head/
At the end of FY21, an amount of `5,58,394 crore is
sub-head level and savings of more than 25 per cent of
outstanding as loans and advances given by the Union
allocations subject to a minimum of `100 crore were
Government to State/ UT Governments and other entities.
noticed in 324 cases of 69 Grants/ Appropriations out of
Out of this, arrears in recovery (principal and interest) at
97 Civil grants/ Appropriations.
the end of FY21 was amounting to `63,763 crore.
[Para 3.7] [Para 4.2.2.2]
During FY21, Specified Undertaking of UTI (SUUTI) In 11 Minor/ Sub-heads under eight Grants,
remitted `3,124.86 crore (`1,497.00 crore towards supplementary provisions amounting to `1,680.17 crore
remittances to GoI out of interest and dividend income were obtained during FY21 in anticipation of higher
and `1,627.86 crore towards sale of strategic holding in expenditure, but final expenditure of `10,219.33 crore
Axis Bank) which was accounted for in the UGFA as was less than the original provisions of `13,017.06 crore.
'Other receipts' (Minor Head 800) under Sub-Major Head- [Para 4.3]
01 under MH 4000-Miscellaneous Capital Receipts,
Excess expenditure over total authorisation aggregating
instead of treating as non-tax receipts.
to `7.58 crore, attracting limitations of New Service/ New
[Para 3.8.3] Instruments of Service, occurred in five cases under two
Chapter 4: Budgetary Management grants related to object head 'Grants-in-aid General' and
'Grants for Creation of Capital Assets' during FY21,
Appropriation Accounts consisting of 101 Demands for without prior approval of the Parliament.
FY21 had approved provisions aggregating to [Para 4.8]
67
14. Coin and Currency Division of coins, expansion, diversification and modernization of
14.1 Coin and Currency Division is responsible for Mints and Security Presses.
policy related to all aspects of the currency and coinage of 14.1.3 SPMC Section deals with matters related to
India. The works of the Division is carried out in close SPMCIL, which is under administrative control of the
coordination with Reserve Bank of India (RBI), Security Department. The Section deals with issues of this
Printing and Minting Corporation of India Limited (SPMCIL), company relating to appointment to Board Level posts,
Bhartiya Reserve Bank Note Mudran Private Limited MoU, residual establishment matters of its nine Units,
(BRBNMPL) and Bank Note Paper Mill India Private and coordination of meetings of SPMCIL Board, SPMCIL
Pension Fund Trust etc.
Limited (BNPMIPL). The Division has three Sections viz.
Currency, Coin and SPMC Section. Responsibilities among 14.2 Major achievements of the Division are given
these Sections are divided as follows: below:
14.2.1 In order to stay ahead of the counterfeiting,
14.1.1 Currency Section deals with all policy matters Government of India, in consultation with RBI, has initiated
relating to design, form and material of currency notes/ the process for introduction of new security features in
banknotes including security features, and operational Indian banknotes. The Government has approved the
issues relating to production, planning of printing of bank recommendations of RBl's Central Board on revised
notes, Currency related legislation, indigenization of bank matrix of security features in bank notes in terms of the
note m aterials, expansion, up-gradation and provisions of section 25 of the RBI Act, 1934. RBI has
modernization of Presses, Paper Mills, Ink factory, etc. initiated process for introduction of this revised matrix of
administration of SBN (Cessation of Liabilities) Act, 2017 security features. This revised matrix of new security
and Rules made thereunder, and policy issues on crypto features is expected to protect against counterfeiting of
assets including legislation and Central Bank Digital the currency notes.
Currency. 14.2.2.1 The production of banknotes by BRBNMPL and
SPMCIL is monitored by this Division. The meetings of
14.1.2 Coin Section deals with policy matters relating
Strategic Planning Group and Production Planning
to design, shape and size of circulation coins, fixation of Committee are also held regularly to review the indent
fair selling price of coins, coins related legislations and and production of banknotes and coins & their
issuance of Commemorative Coins, security products viz. uninterrupted supply to public. The cumulative production
passport, postal stamps, Non-Judicial Stamp Paper, of notes by the currency presses during 2022-23 up to
production planning of coins and determination of indent 31.12.2022 is given below:
IV. Status of indent of notes by BRBNMPL and SPMCIL during 2022-23 up to 31.12.2022
Press Total Indent allocated Cumulative production Production left for

for 2022-23 (in mpcs) 01.04.2022 to 31.12.2022 2022-23 (in mpcs)
(in mpcs)
BRBNMPL 13,560 11,389 1247*
SPMCIL 9,040 6,551.6 2,488.4**
Face Value (Cr)
BRBNMPL 3,68,760 3,12,401 36,446
SPMCIL 2,45,840 1,69,566.4 76,263.6
* As per the advice of RBI, carry forwarded stock of 924mpcs is adjusted in the production for 2022-23.
Supply indent is 13,560 mpcs only.
** 250 mpcs packed stock and around 1500 mpcs of semi finish was also available at Presses on 31.12.2022.
14.2.2.2 The trends in the Note In Circulation (NIC) are visually impaired. Hon'ble Prime Minister on 7th March
monitored. The Notes In Circulation (NIC) as on 2019 released the new series coins. The new features
November 4, 2016 were `17,74,187 Cr. which have now incorporated in the new series of coins include pattern of
increased to `32,52,070 Cr. as on 13th January, 2023. increasing size (i.e. diameter) from lower to higher
14.2.3.1 New Series of Coins which are friendly to denominations and weight in increasing order from lower
visually impaired people: This Department vide Gazette to higher denomination. The theme of new series coins
notification dated 6th March 2019, has notified new series is 'Agriculture', represented with crop grains on the
coins of One Rupee, Two Rupees, Five Rupees, Ten reverse side of the coins. RBI has comm enced
Rupees and Twenty Rupees easily identifiable to the distribution of new design coins among public.
68
14.2.3.2 Furthermore, this Department vide Gazette by the Government of India (Ministry of Finance) directly.
notification dated 08th November, 2021 has notified a The Company is wholly owned by the Central Government
special series of circulatory coins of One Rupee, Two with Authorized Share Capital of `2500 crores and paid-
Rupees, Five Rupees, Ten Rupees and Twenty Rupees up Share Capital of `987.50 crores.
to celebrate 75th years of India's Independence under 14.3.2 The Reserve Bank of India (RBI) is the customer
the Azadi Ka Amrit Mahotsav (AKAM) celebrations. These for currency notes supplied by two Currency Presses of
coins are part of the action plan of Department under the Company, i.e. Bank Note Press (BNP), Dewas and
AKAM. This special Series of coin will retain other existing Currency Note Press (CNP), Nashik. The Ministry of
features, including all the visually-impaired friendly External Affairs (MEA) and Ministry of Home Affairs
features of the New Series of Coins, 2019. These special (MHA) are customers for passports and visa stickers
coins were released by Hon'ble Prime Minister on 6th respectively and the State Governments are customers
June, 2022. for Non-Judicial Stamp Papers and allied stamps and
14.2.3.3 The trends in Coins In Circulation (CnIC) are the Postal Department is the customer for postal
also monitored. As on 31.10.2022, the CnIC of ` 28468.72 stationery, stamps, etc. supplied by the two Security
crore. CnIC has risen to `1770.66 crore as compared to Presses of the Company, i.e. Security Printing Press
CnIC as on 31.10.2021. (SPP), Hyderabad and India Security Press (ISP),
Nashik. These Security Presses also produce various
14.2.4.1 As per the Coinage Act, 2011, commemorative
security items like cheques, railway warrants, income
coin means any coin stamped by the Government or any
ta x return o rde r f or m s, saving in str um e nts,
other authority empowered by the Government in this
comm emorative stamps, excise adhesive labels,
behalf to commemorate any specific occasion or event
certificates etc. for various customers. The Department
and expressed in Indian currency. Accordingly, the
of Economic Affairs (DEA), Ministry of Finance is the
Government issues commemorative coins on eminent
customer for circulation coins supplied by the four India
persons/ personalities/ institutions/ events/ programmes/
Government Mints (IGMs) of the Company at Mumbai,
history, etc. that have a national or international nature
Kolkata, Hyderabad and Noida. The Company has one
and which have made a lasting contribution or impact.
Security Paper Mill (SPM) at Narmadapuram which
The contribution made by the individual/ organisation/
manufactures Security Paper for use by Currency /
programme/ event should have transcended the barriers
Security Presses. The Company also has an Ink Factory
of partisan politics, region, community, language or
at Dewas which manufactures Offset Ink, UV Ink and
religion. However, on an occasion to express sympathy/
Quickset Intaglio Ink for use by the presses of SPMCIL.
grief/ exhibit respect for the sacrifice, Commiserative
Coins' would be issued. The Guidelines in this regard 14.3.3 As a com pany which is m anufacturer of
has been issued on 29.09.2020. instruments of faith, SPMCIL is inspired by its vision to
serve national priorities of producing state-of-the-art
14.2.4.2 During 2022-23 (Upto 11.01.2023), the
security products leveraging core competency and
Government issued Gazette Notifications for release of building design capabilities. With the commitment to aid
9 Commemorative Coins viz. to mark the occasion of the nation by manufacturing world class and highly
400th Birth Anniversary of Guru Shri Tegh Bahadur Ji, to secured banknotes, coins and security documents,
celebrate the Centenary Year of University of Delhi, Birth SPMCIL has almost 100 years of security printing
Centenary of Shri Jawaharlal Darda, 175 Years of IIT experience and over two centuries of experience in the
Roorkee, 250th Birth Anniversary of Raja Ram Mohan field of minting.
Roy, 90th Interpol General Assembly, 150th Birth
Anniversary of Yugvir Jainacharya Srimad Vijay Vallabh 14.3.4 SPMCIL has produced 8008 million pieces of
Suri, 150th Birth Anniversary of Shri Ram Chandra Ji and the Bank Notes and supplied 8900 million pieces of Bank
150th Birth Anniversary of Sri Aurobindo. Notes and 39 mpcs of Re.1 Currency Note to Reserve
Bank of India (RBI) during the year 2021-22. This is
14.3 Security Printing and Minting Corporation of 3.38% lower than the production of 8288 million pieces
India Limited (SPMCIL): of the Bank Notes during the last year i.e. 2020-21 and
14.3.1 Security Printing and Minting Corporation of India this reduction in production is due to reduction in the
Ltd. (SPMCIL), a Miniratna Category-I, Schedule-'A' indent of Bank Notes by Reserve Bank of India (RBI)
Central Public Sector Enterprise (CPSE) was incorporated during the year 2021-22. Production of the Bank Notes
on 13th January 2006 to manage four India Government per employee has increased to 3.56 million pieces in
Mints, two Currency Presses, two Security Presses and 2021-22 as against 3.24 million pieces achieved during
one Security Paper Mill, which were earlier being managed the last year 2020-21.
69
14.3.5 SPMCIL has produced 784 million pieces of the The consolidated TCI after taking into account the 50%
Circulation Coins and supplied 800 million pieces of the share of Joint Venture Company, Bank Note Paper Mill
Circulation Coins to RBI during the year 2021-22. This is India Pvt. Ltd. (BNPMIPL) is `789.48 crores in the year
71.56% lower than the production of 2757 million pieces 2021-22 as compared to the Consolidated TCI of `523.78
of Circulation Coins achieved during the last year 2020- crores in the year 2020-21.
21. Production of Coins per Employee has decreased to
14.3.10 In accordance with the guidelines on Capital
0.51 million pieces in 2021-22 as against 1.53 million
Restructuring of CPSEs issued by the Department of
pieces achieved in the last year 2020-21. The decrease
Investment and Public Asset Management (DIPAM), the
in the production of Circulation Coins is mainly due to
Company has paid the dividend of `259.62 crores
huge reduction in the indent of Circulation Coins by RBI
including the Interim Dividend of `240.00 crores paid on
during the year 2021-22.
25.03.2022 for the financial year 2021-22.
14.3.6 During the year 2021-22, SPM, Narmadapuram
14.3.11 During the year 2021-22, the Company has
(a unit of SPMCIL) has produced 7488 Metric Ton (MT)
ta ken -u p m any m o der nization an d c apacity
of Security Paper and supplied 7751 MT of Security
augmentation initiatives. During the year 2021-22, two
Paper to the printing presses. This is 9% higher than
new state-of-the-art banknote printing and finishing lines
the production of 6870 MT of Security Paper during the
comprising of Offset, Intaglio, Numbering, Finishing
last year 2020-21. Production of Security Paper per
Employee has increased to 8.49 MT in the year 2021- machines and WSRTP plant (one each at CNP & BNP)
22 as against 7.35 MT achieved during the previous have been successfully commissioned and made
year 2020-21. operational at both Currency Presses of SPMCIL. Also,
two additional Intaglio machines (one each at CNP &
14.3.7 SPMCIL has produced 450 Metric Ton (MT) of BNP) have been successfully commissioned and made
Security Inks at Ink Factory, Dewas and supplied 547 operational at both Currency Presses. IGM, Hyderabad
Metric Ton Inks to printing presses during the year has installed & commissioned XRF spectrometer
2021-22. This is 25% lower than the production of 600 machine which is used for the determination of the
MT of Security Inks during the last year 2020-21. chemical composition of materials including Gold &
Production of Security Ink per Employee has decreased Silver. IGM, Noida has upgraded its electrical substation
to 7.50 MT in the year 2021-22 as against 8.96 MT to ensure continuous and stable supply of electricity.
achieved during the previous year 2020-21. IGM, Kolkata has successfully installed & commissioned
14.3.8 SPMCIL has produced 8.30 million pieces of Multi Colour Medal Press used for coloring different
travel documents/passport booklets and supplied 8.44 types of medal designs as per the requirement of the
million pieces travel documents/passport booklets to customer. ISP, Nashik has installed Sequential/Non-
Ministry of External Affairs (MEA) during the year 2021- Sequential (Random) Numbering Machine. In this
22. This is 35% higher than the production of 6.15 million machine there are two numbering stations on which
pieces of travel documents/ passport booklets during the sequential and non-sequential (both types) numbering
year 2020-21. SPMCIL has also produced 311.68 million as well as printing of State name can be done on Non-
pieces of Non-Judicial Stamp Papers (NJSPs) and Judicial Stamps and India Court Fee Stamps of different
supplied 303.22 million pieces NJSPs to various State denominations of different States. SPP, Hyderabad has
Governments during the year 2021-22. This is 29.17% done Retrofitting of equipment for online post printing
higher than the production of 241.29 million pieces of operations of Excise Adhesive Labels on Rotatek-III.
NJSPs during the year 2020-21. SPP, Hyderabad has also installed 2 nos. Automatic
14.3.9 The Revenue from Operations of the Company program mable perforating machines to increase
has decreased to `4086.63 crores in 2021-22 from production of CPS and CFS stamps. As a part of e-
`4712.57 crores in the previous year 2020-21. The Passport project, ISP, Nashik has manufactured and
decrease in revenue is due to reduction in indent of supplied the International Civil Aviation Organization
products by the customers. Total expenditure for the year (ICAO) standard compliant e-Passport sample booklets
2021-22 is `3388.00 crores as compared to `4094.00 to MEA for testing and approval. SPM, Narmadapuram
crores for the year 2020-21. Profit before Tax (PBT) from has installed indigenous Shredder & Briquetting Machine
continuing operations for the year 2021-22 is `880.12 which is useful for conversion of Spoil CWBN paper into
crores as compared to `789.74 crores for the year 2020- Paper Briquettes. The Paper briquettes manufactured
21. The Company has achieved a Total Comprehensive are being sold through MSTC. This has resulted into
Income (TCI) of `707.77 crores in the year 2021- 22 as protection of environment by avoiding burning of spoil
compared to `395.99 crores during the year 2020-21. paper.
70
14.3.12 The Corporate R&D Centre, Nashik has been Enterprises (DPE) for giving preference to aspirational
certified for ISO 9001: 2015-Quality Management districts, SPMCIL had adopted Barwani District of Madhya
System . The Corporate R&D Centre, Nashik in Pradesh as the aspirational District.
collaboration with CSIR-National Chemical Laboratory 14.3.15 Indigenization: The Joint Venture Company,
has successfully developed varnish/ Coating formulation Bank Note Paper Mill India Private Limited(BNPMIPL)
for post-printing treatment for anti-soiling Currency has produced 14110 MT of Security Paper during the
Notes. Initiatives are being taken for incorporating year 2021-22.
sp ecia l trea tm en t/tech nolo gy off erin g a ntivira l,
14.4 Bharatiya Reserve Bank Note Mudran Private
antibacterial and antifungal properties for Indian
Limited (BRBNMPL)
banknotes during paper manufacturing process. The
Scanning Electron Microscope (SEM) has been 14.4.1 Bharatiya Reserve Bank Note Mudran Pvt Ltd
successfully commissioned and made operational at (BRBNMPL) was established by Reserve Bank of India
Corporate R&D Centre, Nashik. SEM is high-end as its wholly owned subsidiary on 3rd February 1995 with
technology used for elemental Analysis for advanced a view to augmenting the production of banknotes in India
forensic examination of banknotes and security features. to enable RBI to bridge gap between supply and demand
The equipment is also being utilized for Research and for bank notes in the country. The Company has its bank
Development activities related to all Units of SPMCIL. notes manufacturing units at Mysuru, Karnataka and
The Ink Factory, Dewas in collaboration with CSIR- Salboni, West Bengal and its Corporate Office at
National Physical Laboratory (NPL) has successfully Bengaluru, Karnataka. The present total capacity for both
developed 5 GM lab scale sample of Colour Shift Intaglio the presses is 16 billion note pieces per year in a 2-shift
(C SI) Ink pig m en t use d f or pr inting of h igh er operation.
denomination of Banknotes. Further, facility for creation 14.4.2 Paper and Ink are the most critical raw materials
of mass scale production of CSI ink is under process. used for banknote production. These two raw materials
IGM, Kolkata has carried out the project for separation costs approximately 65% of the total production cost. In
of cutting oil from water through salting out process. the global banknote production industry, most of the
This has resulted into conservation of water and savings countries depend on external sources for paper and ink.
in cost of disposal of cutting oil through WBWML. The But, the green field project initiated by BRBNMPL for
Company is collaborating with Government IITs/CSIR setting up a new paper mill at Mysuru (Bank Note Paper
laboratories for latest technology up-gradation in Mill India Pvt Ltd (a Joint Venture between BRBNMPL
currency, coins and security paper. and SPMCIL) and its brown field project of Varnika (in-
14.3.13 The Manpower Strength of the Company has house Ink Manufacturing Unit) at Mysuru has brought
come down to 6454 as on 31.03.2022 which includes Indian Currency Printing Industry to its self-reliance and
352 Executives, 940 Supervisors and 5162 Office staff & to stand ahead of global banknote printers.
Workers working in 9 Units and Corporate Office in 14.4.3 Colour Shift Intaglio Ink (CSII), one of the security
comparison to previous year's employee strength of 7234. features used in the Indian banknotes earlier out-sourced,
Training and retraining of employees to upgrade their is now being manufactured at In-house Ink Manufacturing
functional skills and expertise along with development of Unit of BRBNMPL at Mysuru. BRBNMPL is supplying
their soft skills and group dynamics are thrust areas for entire requirement of CSII to both BRBNMPL and SPMCIL
the Company. presses and this has put an end on our im port
14.3.14 SPMCIL has taken-up many CSR projects in the dependency and huge cost efficiency.
areas of education, healthcare, disaster management, 14.4.4 Colour Shift Pigment (CSP), which is one of the
protection of national heritage including restoration of raw materials required for manufacturing of CSII, was
historical building, measures for benefit of armed force earlier procured from the foreign source. Presently CSP
veteran, war widows and their dependents etc. in the year is being procured at a ratio of 50:50 from domestic and
2022. Under the Gram Uday Scheme, BNP, Dewas had foreign sources finalized through tender. Further
adopted Kawaria village and SPM, Narmadapuram had backward integration for Manufacturing of Colour Shift
adopted Chatua village for implementing projects under pigment has already been initiated, under Make-in-India
CSR. As per the instructions of Department of Public initiative.
71
14.4.5 Indigenization - Status of Indigenization is as under:
Financial Year 2018-19 2019-20 2020-21 2021-22
(in crores)
Total Consumption – Imported 797.06 388.64 287.42 146.93
(in crores)
Total Consumption - 1086.93 1411.33 1173.73 1180.08
Indigenous (in crores)
Total consumption 1883.99 1799.97 1461.15 1327.01
(Import+Indigenous) (in crores)
Import % in total consumption 42.31% 21.59% 19.67% 11.07%
Indigenous % in total 57.69% 78.41% 80.33% 88.93%
consumption
14.4.6 BRBNMPL has increased direct remittance of inventory management and control on the movement of
banknotes to currency chests which enhances logistical people.
efficiency and cost effectiveness to RBI. Number of direct
14.5.3 The Company has been taking various initiatives
remittances dispatched to Currency chest during the FY
to inculcate a culture of continuous improvement in its
2022-23 (as on 31/12/2022) is 53% (231 direct
processes by adopting latest technology to reduce cost
remittances out of total 439 remittances).
of manufacturing. Some of the important measures like
14.4.7 BRBNMPL is certified with ISO 45001:2018 power purchase from Indian Energy Exchange (IEX),
Occupational Health and Safety Management System Reducing and optimizing power demand, Upgradation of
apart from ISO 9001:2015 Quality Management System online quality monitoring system to reduce manual
and ISO 14001:2015 Environmental Management monitoring, upgrading water filtration system, improving
System. washing and flushing system of process lines, developing
14.4.8 BRBNMPL is establishing a state-of-the-art special machine parts indigenously, developing Indian
Learning and Development Centre (LDC) at Mysuru to sources for security features, recycling of process water
cater to the learning needs of all stakeholders in currency and achieving Zero effluent discharge etc., have
eco system and to carry out process related innovation. contributed towards reduction of manufacturing cost. Due
to efforts undertaken towards environmental protection
14.4.9 A state-of-the-art facility is being established at BNPM has been able to recover recycle and reuse every
Mysuru under the aegis of RBI for conducting cutting edge drop of rain water/seepage water in the campus during
research to test the robustness of security features of the year 2021-22. The Company has also initiated steps
banknotes and introduction of new security features.
towards research and Development with the support of
14.5 Bank Note Paper Mill India Private Limited ICARCIRCOT, Mumbai, SITRA, Coimbatore, and CPPRI
(BNPMIPL) Saharanpur to improve its processes. During the year
14.5.1 BNPMIPL was incorporated as a 50:50 Joint the Company has received national awards for safety
Venture Company between SPMCIL and BRBNMPL in from National Safety Council, CII National award for
the year 2010 at Mysuru to manufacture bank note paper Excellence in Water Management, Dasara award for Best
(CWBN Paper) indigenously. The Company has installed Industrial Garden. The Company was awarded with two
two line of paper mills having an installed capacity of safety awards from Department of Factories & Boilers,
12000 MT per year. Industrial safety and Health for best package Boilers and
best Safe Industry (Large Scale industry category) in the
14.5.2 During the year 2021-22, BNPMIPL has
previous year indicates commitment for continuous
produced 14110 MT of CWBN Paper (118% of the
improvement culture.
installed capacity) and supplied 13907 MT of CWBN
Paper to all the four banknote printing presses to meet 14.5.4 Under the Corporate Social Responsibility (CSR),
their entire requirement of paper to print Indian banknotes. BNPMIPL has been contributing in the areas of rural
The Company is ISO 9001:2015, ISO 14001:2015 and education, women empowerment, rural health, supporting
ISO 45001:2018 certified for quality management, orphanage, protection of heritage, supporting physically
environment management and health and Safety challenged, wildlife conservation, disaster relief, public
management systems respectively. The Company has health and hygiene, supporting local bodies for urban
also implemented an ERP system for all accounting, sanitation, medical aids to the poor etc.
72
Annexure-I
Representation of SCs, STs, and OBCs
Number of Appointments made during the previous calendar year
Groups Representation of SCs/Sts/ By Direct Recruitment By Promotion By Other Methods

OBCs (As on 31.12.2022) (Internal
Recuritment)
Total SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs OBCs
No.of
Employees
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Group 'A' 367 55 18 79 7 0 1 1 32 5 3 0 0 0 0
Group 'B' 944 147 77 193 65 6 4 17 69 9 2 2 2 0 0
Group 'C' 4736 924 432 825 75 10 1 28 540 95 45 25 9 2 8
Total 6047 1126 527 1097 147 16 6 46 641 109 50 27 11 2 8
Annexure-II
Representation of Persons With Disabilities
Number of Appointments made during the previous calendar year

Representatiion DIRECT RECRUITMENT PROMOTION
(As on 31.12.2022)
Groups No. of No. of No. of No. of

Vacancies reserved Appointments made Vacancies reserved Appointments made
Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH
No. of
Employees
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Group A 91 0 1 1 1 0 0 2 1 0 0 0 0 0 0 0 0 0
Group B 431 1 0 13 0 1 1 16 0 0 1 0 0 0 22 0 0 2
Group C 1779 15 39 87 3 0 0 26 1 0 0 0 0 0 170 2 8 4
Total 2301 16 40 101 4 1 1 44 2 0 1 0 0 0 192 2 8 6
73
15. Other Multilateral Institutions (OMI) incomes, and special funds. India has so far pledged USD
Division 258 million to IFAD's Resources in various replenishment
The Other Multilateral Institutions (OMI) Division cycles including USD 47 million as a core grant in IFAD
was created in 2018. This Division has been assigned 12 (2022-24). Apart from this, India also pledged an
with the responsibility of eight (8) Multilateral Development amount of USD 20 million each as Concessional Partner
Banks (MDBs) viz., Asian Infrastructure Investment Bank Loan (CPL) in IFAD 11 and IFAD12.
(AIIB), New Development Bank (NDB), International Fund 15.1.5 IFAD's Investment Operation in India:
for Agricultural Development (IFAD), European Bank for 15.1.5.1 India has received funding from IFAD for projects
Reconstruction and Development (EBRD), African in rural development, tribal development, women's
Development Bank (AfDB), Inter-American Development empowerment, and micro-finance. Since 1979, IFAD has
Bank (IDB), Caribbean Development Bank (CDB), and assisted in 32 projects in agriculture, rural development,
OPEC Fund for International Development (OFID). tribal development, women's empowerment, natural
In addition, the Division has been assigned with the resources' management, and rural finance sector with a
sectoral charges of seven Ministries/Departments viz. commitment of USD 1,207.8 million (approx.). Out of
Ministry of Women and Child Development, National these, 26 projects have already been closed. Presently,
Commission for Women, Ministry of Rural Development, 6 projects with a total assistance of USD 366.35 million
Ministry of Panchayati Raj, Departm ent of Water (approx.) in the States of Uttarakhand, Maharashtra,
Resources, River Development and Ganga Rejuvenation, Odisha, Nagaland, Mizoram, Meghalaya & Chhattisgarh
Department of Science and Technology and Council for are under implementation.
Scientific and Industrial Research. The Division has also 15.2 Asian Infrastructure Investment Bank (AIIB)
been assigned with the works related to four States 15.2.1 The Asian Infrastructure Investment Bank (AIIB),
namely, Punjab, Haryana, Rajasthan, and Goa. an MDB headquartered in Beijing, China, began its
15.1 International Fund for Agricultural operations in January 2016 with 57 founding Members
Development (IFAD) focusing on investments in infrastructure to foster
15.1.1 The IFAD is a specialized agency of the United sustainable economic development in Asia and beyond.
Nations. It was set up as an international financial The bank has now grown to 106 members in seven years
institution in 1977 to support agricultural development of operations, and became the world's second-largest
primarily for food production in developing countries. It MDB in terms of members.
has supported projects that have reached millions of
AIIB Mission
people in the world including more than 6.34 million
 Green Infrastructure: AIIB intends to prioritize green
households in India. At present, IFAD has 177 member
infrastructure and support its members meet their
of Countries including India as a founder member.
environmental and related development goals by
15.1.2 India's Representation at IFAD: financing projects that deliver local environmental
15.1.2.1 IFAD is headed by the President elected by its improvements and investments dedicated to climate
member countries for a four-year term. It has two main action.
governing bodies viz. the Governing Council and the  Connectivity and Regional Cooperation: AIIB
Executive Board. India represents IFAD on the Governing prioritizes projects that facilitate better domestic and
Council by Secretary (EA) as Governor and Additional cross-border infrastructure connectivity within Asia and
Secretary (OMI) as Alternate Governor. Director (OMI) beyond. The AIIB supported projects also complement
represents India as the Director on the IFAD Executive cross-border infrastructure connectivity by generating
Board. direct measurable benefits across the countries.
15.1.3 IFAD Governing Bodies meetings in 2022-23:-  Technology-enabled infrastructure: AIIB supports
15.1.3.1 The 12th special session, 135th, 136th and 137th projects where the application of technology delivers
sessions of the IFAD Executive Board were held in better value, quality, productivity, efficiency, resilience,
February, April, Septem ber, and Decem ber 2022 sustainability, inclusion, transparency or better
respectively. India was represented in these sessions by governance along the full project life cycle.
the AS /Director (OMI) in the IFAD Executive Board. The  Private Capital Mobilization: AIIB supports projects
45th Governing Council meeting of IFAD was held on 16th that directly or indirectly mobilize private financing
February, 2022 in which AS (OMI) represented GoI who into sectors within its mandate.
was the Alternate Governor from India in the IFAD GC.
Shareholding in AIIB
15.1.4 India's contribution to IFAD:- The Authorized Capital Stock of the bank is
15.1.4.1 IFAD funds are derived from m em ber USD100 billion, divided into 1 million shares of
contributions (made in replenishment cycles), investment USD100,000 each. The paid-in capital of the bank is
74
maintained at 20 percent (USD 20 billion), while the education. This financing also includes 4 projects totaling
remaining 80 percent is the callable capital. Currently, USD 2.25 billion towards Economic Resilience and
the bank has subscribed 96.76 percent of its capital stock, COVID-19 response.
which is allocated based on the size of each member
India's Representation at AIIB
country's economy. India plays a key role in the Board of Governors
The five largest shareholders in AIIB are China, (BoG) and Board of Directors (BoD) in AIIB. The Finance
India, Russia, Germany, and Republic of Korea. About Minister represents India as the Governor while the
83 percent of shares are held by members rated Secretary (EA) as the Alternate Governor on the BoG.
investment grade and above. India is the second largest Additional Secretary (OMI) represents India as Director
shareholder in AIIB with a subscribed capital of USD 8.37 while Director (OMI) as the Alternate Director on the BoD.
billion (8.6 percent of the capital stock of AIIB)- paid-in During 2022-23, Indian representatives participated in
capital amounts to 20 percent while the remaining 80 more than 40 Board events including Board meetings by
percent is callable capital. In terms of voting power, India virtual means.
stands second with 7.6 percent of voting power (85,745). 15.3 New Development Bank (NDB)
AIIB's Institutional Developments 15.3.1 The New Development Bank (NDB) is an MDB
 Permanent Observer Status in UNGA: AIIB has been established by Brazil, Russia, India, China, and South
granted Observer Status in the UN General Assembly Africa in 2014 with the objective to mobilize resources
on December 20, 2018. Granting of Observer status for infrastructure and sustainable development projects
has put the Bank on a par with more than ninety other in BRICS and other emerging market economies and
organizations which enjoy Observer status; developing countries (EMDCs), and started its operation
in February, 2016.
 AAA credit rating: The Bank has maintained the
'AAA' credit rating over the last three years from all Shareholding and Membership in NDB
the premier credit rating agencies including Standards The authorized capital of the Bank is up to USD
and Poor, Moody's, and Fitch Ratings 100 billion of which USD 50 billion were subscribed initially
by founding members (BRICS). The ratio of the bank's
 Membership: The AIIB has now grown to 106
paid-in to callable capital remains at 20:80. As on date,
members in seven years of operations, and became
about 51.50 percent of NDB's total authorized capital has
the world's second-largest MDB in terms of members.
been subscribed.
 Corporate Strategy: The AIIB has completed its start-
With the admission of the UAE, Uruguay,
up phase, and developed its first Corporate Strategy
Bangladesh, and Egypt as new members, the NDB has
targeting 50 percent of climate finance by 2025, 50
grown to nine members. Bangladesh and UAE deposited
percent of private sector financing of its actual
their instruments of accession by effecting their
approved financing and financing 25-30 percent for
membership, while Uruguay and Egypt remained as
cross-border connectivity projects by 2030.
prospective members of the bank. With the change in
AIIB's Lending Activities the bank's membership, each founding member has the
The bank's Investments are based on sovereign shareholding of 19.42 percent, while Bangladesh and the
and non-sovereign loans, equity participations and UAE the newly joined members have 1.83 percent and
guarantees. AIIB's financing of sustainable infrastructure 1.08 percent of shareholding, respectively. India has paid
is demonstrated by its investment in projects related to USD 2 billion as paid-in capital to NDB in seven
the mitigation of the impact of climate change, climate installments.
adaptation, and other environmental objectives. NDB's Regional Office in India:
The AIIB has approved financings of USD 38.81 To strengthen its operations, NDB has
billion in 34 countries for 202 approved projects as of established Regional Offices in South Africa, Brazil, and
January, 2022. These financings cover sectors like Russia, while the Indian Regional Office (IRO) has been
energy, transport, water, urban, digital infrastructure and full-fledged operational since December 2022 from
technology, rural infrastructure and agriculture Gujarat International Finance Tec-City (GIFT City) in
development, education, economic resilience, COVID- Ahmedabad. The IRO is expected to be instrumental in
19 response, public health, etc. effective and timely preparation and implementation of
the projects in India.
As of January, 2023, India is the AIIB's largest
receiver of approved financing with 27 Sovereign projects India's Representation at NDB
amounting to USD 8.3 billion across various sectors viz. India represents NDB at the BoG and BoD levels.
energy, transport, water, urban, public health, and The Finance Minister represents India as the Governor
75
while the Secretary (EA) as the Alternate Governor on Société Internationale Financière pour les
the BoG. Additional Secretary (OMI) represents India as Investissements et le Développement en Afrique
the Director while Director (OMI) is the Alternate Director (SIFIDA), the Association of African Development
in the BoD. During 2022-23, India participated in more Finance Institutions (AADFI), and Shelter-Afrique.
than 35 Board events including Board meetings by virtual iv. All 81 AfDB members (54, RMCs & 27, NRMCs) are
means. grouped into 20 constituencies (13 regional and 7
NDB's Investment operations in India non-regional). India had joined the Nordic
India is the second largest recipient of NDB Constituency comprising Norway, Sweden, Finland,
financing. India has been received funding from NDB for Denmark, and Ireland.
projects in power, water, transport, public health, v. India was allotted a total of 41,475 shares and holds
sustainable development, and the social sector. Since 0.287 in AfDB and in ADF has 0.178 percent voting
2016, NDB has approved 24 projects in the amount of share. India participates in the BoG meetings which
USD 7. 5 billion (approx.) of which 22 projects in the
are held annually and raises concerns during the BoD
amount of USD 7.1 billion are sovereign-backed and 2
meetings via our constituency. India is represented
projects in the amount of USD 400 million are non-
in the Board of Governors by Hon'ble Finance Minister
sovereign backed. This includes USD 2.00 billion in
of India and the Alternate Governor is the Secretary
recoveries (of the USD 10 billion for all 5-member
of the Department of Economic Affairs, Ministry of
countries) of assistance to India towards COVID-19
Finance.
support and economic resilience.
 As of December 2022, India has pledged `601.9
15.4 African Development Bank (AfDB) crore (till ADF-15).
15.4.1 The AfDB Group is a regional multilateral  ADF-16 India has pledged `152.64 crore, as pure
development finance institution established to contribute grant. (`3.69 crore as grant compensation)
to the economic development and social progress of
African countries that are the institution's Regional  About `35.66 crore have been contributed
Member Countries (RMCs). The AfDB was founded towards the Multilateral Debt Relief Initiative
following an agreement signed by member states on (MDRI) of ADF.
August 14, 1963, in Khartoum, Sudan, which became 15.5 European Bank for Reconstruction and
effective on September 10, 1964. The AfDB comprises Development (EBRD)
three entities namely the African Development Bank 15.5.1 EBRD, headquartered in London was established
(ADB), the African Development Fund (ADF), and the in 1991 to help the erstwhile economies of Central and
Nigeria Trust Fund (NTF). The AfDB headquarters is Eastern Europe reconstruct their economies in the post-
officially in Abidjan, Côte d'Ivoire. Cold War era, evolve into open, market-oriented
i. The Bank comprises 54 African countries known as economies, committed to the principles of multiparty
regional member countries (RMCs) and 27 Non- democracy and pluralism. EBRD works in more than 30
African countries known as non-regional member countries from Central Europe to Central Asia and
countries (NRMCs). To become an AfDB member, Southern and Eastern Mediterranean. The EBRD is the
non-regional members must first accede to ADF only Bank among MDBs that focuses mainly on the non-
membership. When the African Development Bank sovereign operations EBRD has an explicitly political
(AfDB) was established, only independent African mandate: firstly, to support democracy-building activities.
countries were eligible to be shareholders of the Second, the EBRD does not have a concessional loan
Bank, and later in 1982, the memberships were window. To date, the Bank has 70-member countries, as
opened to Non-African Countries. well as the European Union and the European Investment
Bank. India had joined the EBRD in July 2018 as its 69th
ii. India joined the Bank on December 6, 1983. The shareholder and currently holds 0.033 percent
Fund comprises, to date, 29 contributing countries shareholding in the Bank. India is part of the Portugal
(26 from NRMs and 3 from RMCs/State participants) Constituency in EBRD, which comprises Portugal,
and benefits 38 countries. Greece, and San Marino. India paid Euro 1.79 Million
iii. The ADB group of financing bodies includes the (14.74 Cr INR) towards its paid-up portion and has an
African Development Fund, which grants interest-free initial subscription of 986 shares. India became a member
loans to impoverished African countries, and the of the Bank, comprising 179 paid-in shares and 807
Nigeria Trust Fund. The ADB has five associated callable shares. India is represented in the Board of
institutions through which public and private capital Governors by Hon'ble Finance Minister of India and the
is channeled: the African Import-Export Bank, the Alternate Governor is the Secretary of the Department of
Africa Reinsurance Corporation (Africa-Re), the Economic Affairs, Ministry of Finance.
76
16. Infrastructure Support and Major Policy Initiatives/ Achievements of PIU

Development Division (ISD Division) 1. Fin ancial sup port to Public Private
Introduction : Partnerships in Infrastructure (VGF Scheme)
Infrastructure Support and Development Division, The Department of Economic Affairs (DEA)
a part of Infrastructure Finance Secretariat in DEA, deals launched the Viability Gap Funding (VGF) scheme for
with initiatives for promotion of investment in infrastructure providing financial assistance to financially unviable but
socially/ economically desirable PPP projects. Under this
development in the country, creation of an enabling
scheme, economic sector projects may get up to 40% of
environment for private sector investment in infrastructure
the Capex as VGF grant. The VGF Scheme includes
through Public Private Partnerships (PPPs), etc. The
higher provisions of VGF grant for social sectors i.e.,
division is headed by a Joint Secretary. The Division has
Health, Education, Water Supply, Waste Water
the following Units: Private Investment Unit, Energy Unit Treatment, Solid Waste Management, etc. Social sector
and NIP Facilitation Unit. Each Unit is headed by a projects may get up to 80% of the Capex and upto 50%
Director/Deputy Secretary and assisted by Under of Opex for 5 years after Commercial Operation Date
Secretary/ Deputy Director. (CoD) as VGF grant. Social Sector projects get VGF grant
Private Investment Unit (PIU) under following two categories:
Major Functions of PIU, inter alia, include the following: a) Sub scheme -1 caters to Social Sectors such
as Wastewater Treatment, Water Supply, Solid
1. Matters relating to appraisal and approval of Waste Management, Health & Education sectors
Central sector PPP projects. etc. The projects eligible under this category
2. Matters and proposals relating to clearance by should have at least 100% Operational Cost
Public Private Partnership Appraisal Committee recovery. The Central Government will provide
(PPPAC) maximum of 30% of Capex of the project as VGF
and State Government/Sponsoring Central
3. Matters and proposals relating to the scheme for Ministry/Statutory Entity may provide additional
Financial support to Public Private Partnerships support up to 30% of Capex.
in Infrastructure Viability Gap Funding (VGF)
b) Sub scheme -2 supports demonstration/pilot
Scheme
social sectors projects. The projects may be from
4. Matters and proposals relating to the scheme for Health & Education sectors. The projects eligible
India Infrastructure Project Development Fund under this category should have at least 50%
(IIPDF). Operati onal Cost recov ery. The Cent ral
Government will provide a maximum of 40% of
5. Developing Multi-pronged and innovative
the Capex of the Project and a maximum of 25%
interventions and support mechanisms for
of Opex of the project for first five years of
facilitating PPPs in the country, including commercial operations as VGF. The State
Technical Assistance and programmes from Government/Sponsoring Central Ministry/
bilateral/multilateral agencies on mainstreaming Statutory Entity may provide additional support
PPPs and support t o State and local up to 40% of the Capex of the Project and upto
governments. 25% of Opex of the project for first five years of
6. Managing t raining programs, strategies, commercial operations.
exposures for capacity building for PPPs and In the year 2022-23 (till December, 2022), under
other matters relating to institution building for the Scheme for support to Public Private
mainstreaming PPPs. Partnerships in Infrastructure, 4 projects
amounting to a TPC of `29,023.97 Crore were
7. All International interfaces on PPPs & other
granted In-Principle Approval and 3 projects were
matters concerning PPPs including BRICS
granted final approval with a TPC of `11,574.59
Taskforce on PPP and Infrastructure.
Crore with a Viability Gap Funding approval of
8. Matters relating to management of PPP related `2,050.25 Crore. The total amount of VGF
information, including www.pppinindia.gov.in and disbursed under the scheme in the FY 2022-23
infrastructureindia.gov.in. (till January 2023) by DEA is `9.41 Crores.
77
2. Pub lic Private Partnership Apprai sal 5. PPP Policy-related matters

Committee (PPPAC) In order to ensure smooth functioning of PPP
The Public Priv ate Partnership Appraisal projects, DEA is preparing various policy documents such
Committee (PPPAC) is the apex body for appraisal of as Model Concession Agreement (MCAs) for nascent
PPP projects in the Central Sector. The streamlined sectors like Solid Waste Management, Sports etc.,
appraisal mechanism for PPP projects ensures speedy rev ising Model RFP, PPP Procurement Manual,
appraisal of projects, eliminates delays, adopts
revamping PPP structuring toolkits etc. A workshop with
international best practices and promotes uniformity in
PPP Stakeholders –both public and private was also
appraisal mechanism and guidelines. The PPPAC is
organised to share best practices and key learning and
chaired by Secretary, DEA with Secretaries of Department come up with solutions to the problems.
of Expenditure, Department of Legal Affairs, the
Sponsoring Central Ministry/Department and CEO, NITI 6. Handholding/Support initiatives
Aayog as members to consider and appraise the To handhold State Governments in PPP matters,
proposals for Central Sector PPP Projects. In the year two workshop were organised with State Governments
2022-23 (till January, 2023), Public Private Partnership and Transaction Advisers to disseminate knowledge on
Appraisal Committee has appraised 7 projects with a Total VGF Scheme. In addition, a hands-on workshop was
Project Cost of `14,026.45 Crore. organised with State Gov ernments to help them
3. Financial Support for Project Development understand PPP structuring toolkit.
Expenses of PPP Projects (IIPDF Scheme) Till December’ 22, three chapters of state
The very success of PPP projects depends on outreach workshops have been conducted at Mumbai,
how well the project is structured. Since PPP projects Chandigarh and Varanasi with participation from a total
are complex in nature, conceiving a project demands of 14 States and Union Territories (Uttar Pradesh, Bihar,
expertise of experienced professionals in the field Madhya Pradesh, Chattisgarh, Himachal Pradesh,
(Transaction Advisers). Generally, hiring of transaction Uttarakhand, Punjab, Maharashtra, Gujarat, Karnataka,
advisers for project development involves substantial Andhra Pradesh, Chandigarh, Jammu & Kashmir, and
costs and many times Project Sponsoring Authorities Ladakh).
(PSAs)face financial crunch in financing this cost. Thus, Energy Unit
Department of Economic Affairs (DEA) has launched the
Major functions of Energy Unit, inter alia, include the
IIPDF Scheme on 03.11.2022 as a Central Sector
following:
Scheme for funding such project development expenses.
1. All policy related issues pertaining to energy
IIPDF Scheme provides necessary support to the
sector viz. Petroleum and Natural Gas, Coal,
PSAs, both in the Centre and the State Governments, by
Atomic Energy and New & Renewable Energy.
extending financial assistance in meeting the cost of
transaction advisory services engaged in the development 2. Sectoral Charge of M/o Petroleum and Natural
of PPP projects. Funding under IIPDF Scheme can be Gas, M/o New and Renewable Energy, M/o Coal,
for a maximum amount of `5 Crore for a single proposal. Dept. of Atomic Energy and Dept. of Space.
Any funding requirement over and above `5 Crore may 3. Examination of the investment proposals in
be borne by the PSAs. Under this scheme, DEA has energy sector requiring the approval of Cabinet/
approved three proposals in the FY 2022-23 (till January, CCI/CCEA/CoS/PIB/EFC for their viability and
2023) with total funding of `7.5 Cr. justification.
4. Empanelment of Transaction Advisors 4. All matters relating to Power Sector (including
To create an enabling environment for stepping Policy, Projects, DCNs/CCEA Notes/EFC/SFC,
up of private investment in infrastructure and to cater to etc.).
State Governments demand, DEA has empanelled 12 5. Internal territorial charge of Chhattisgarh,
transaction adv isors for PPP projects to prov ide Maharashtra, Gujarat and Madhya Pradesh.
necessary support to project sponsoring authorities in
transaction of PPP projects. The objective of empanelling 6. External territorial charge of Iran, Iraq, Cyprus.
TAs is to provide access to quality advisory support for 7. Examination of proposals for grant of viability gap
PPP projects. This would help the Project Sponsoring funding under the National Clean Energy Fund
Authorities to appoint TAs without delay. (NCEF).
78
8. Matters relating to OPEC Fund for International Gasification Projects of Government PSUs &
Development (OFID). Scheme of Exploration of Coal and Lignite over
9. Matters related to Committee on Allocation of FFC Cycle.
Natural Resources (CANR). NIP Facilitation Unit (NIP FU)
Major Policy Initiatives/ Achievements: Major functions of NIP FU, inter alia, include the
1. Energy Unit is also acting as a secretariat of the following:
Monitoring Committee (MC) set up to review the  Engagement with States in the implementation
implementation status of the recommendations of National Infrastructure pipeline (NIP)
of the Committee on Allocation of Natural  Handholding assistance to States for PPP project
Resources (CANR). A periodic review and follow structuring and development.
up is going on with concerned Ministries/
 Putting process enablers of PPP in Infrastructure.
Department to ensure implementation of these
recommendations.  Monitoring of perf ormance of Ministries/
Departments on National Monetisation Pipeline
2. In the year 2022, helped ECoS setup by M/o Coal (NMP);
regarding adoption of methodology for auction
 General reform Initiatives for creating an enabling
of coal and lignite mines/ blocks to approve 9
eco system f or increased priv ate sector
coal mines to be offered for sale of coal through
participation in infrastructure development;
auction.
 County Charge of West Asian Countries- Iran,
3. Continuous engagement with Gulf countries (i.e., Armenia, Azerbaijan, Cyprus, Georgia, Israel,
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, Turkey, Jordan, Lebanon, Palestine, Syria,
UAE and Iraq) or investment and other matters
Yamen, etc.
including liaison with various Sovereign Wealth
 State charge of Maharashtra and Gujrat
Funds from Gulf countries (such as Public
Investment Fund (Saudi Arabia), Abu Dhabi  Co-ordination work within the Division, etc;
Investment Authority (ADIA) & Mubadala (UAE) Major Policy Initiatives/ Achievements of NIP FU
& Qatar Investment Authority (QIA), Qatar. Public
1. National Infrastructure Pipeline (NIP)
Investment Fund (Saudi Arabia), Qatar Holding
NIP which had started with 6835 projects has
LLC & INQ Holding LLC (two wholly owned
since expanded to around 9000 projects. NIP projects
subsidiaries of QIA) are notified as SWF under
showcase the infrastructure investment opportunities in
Section 10(23FE) of Income Tax Act.
the states/UTs to domestic and global investors.
4. During the year, Energy Unit had handled Six Continuous engagement with states/UTs were made to
Cabinet/ CCEA notes from the line Ministries/ improve NIP performance in the States. Project status
Departments. In addition, three PIB proposals, Snapshots of all states/UTs were prepared and shared
seven EFC proposals and one SFC proposal with states/UTs for review and further improvement.
have been examined during the year. These were
Cabinet/ CCEA Notes on such as Grant to PSU 2. National Monetisation Pipeline (NMP)
Oil Marketing Companies for under-recoveries In the year 2021-22, as against monetization
in domestic LPG, Trusted Vendor System for target of 0.88 lakh crore, transactions with monetisation
Power Sector, equity investment by Coal India, value of `0.97 lakh crore was achieved. For the year
listing of shares of Bharat Coking Coal Limited, 2022-23, a target of `1.62 lakh crores is envisaged under
etc. Energy Unit also handled PIB/EFC/SFC the NMP. In order to ensure performance of NMP, regular
notes on Green Energy Corridor Phase-II-Inter review meetings on NMP are chaired by the finance
State Transmission System in Ladakh, Sawalkot minister and Cabinet Secretary.
HE Project in J&K by NHPC Ltd, and providing 3. Enabling Eco-system and process enablers
Additional Financial Contribution to ISA. Various initiatives of enabling eco-system and
5. Energy Unit helped line ministries/ departments process for PPP have been undertaken like preparation
in structuring various schemes such as PMUY, of Guidebook on Waterfall Framework for selection of
operationalisation of Power System Development project implementation mode, Post Award Contract
Fund, VGF scheme for development of Battery Management (PACM) toolkits, revamping of project
Energy Storage Systems, PLI Scheme for Coal preparation toolkits, Project Renegotiation framework, etc.
79
Annexure-I
DEPARTMENT OF ECONOMIC AFFAIRS (MAIN)
Groups Number of Employees Number of appointments made during the previous year i.e. 2022
By Direct Recruitment By Promotion By Other Methods
Total SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Group A 119 17 03 07 0 0 0 0 0 0 0 02 0 0
Group B 234 37 31 49 03 01 0 01 07 03 0 0 0 0
Group C 201 68 06 27 15 02 02 04 05 01 0 0 0 0
TOTAL 554 122 40 83 18 03 02 05 12 04 0 02 0 0
Annexure-II
DEPARTMENT OF ECONOMIC AFFAIRS (MAIN)

Representation of Persons With Disabilities (PWD)
DIRECT RECRUITMENT PROMOTION
Group Number of Employees No. of No. of No. of No. of

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Group A 119 - - 01 - - - - - - - - - - - - - -
Group B 234 - - 03 - - - - - - - - - - - - - -
Group C 201 - - 04 - - - 01 - - 01 - - - 04 - - -
Total 554 - - 08 - - - 01 - - 01 - - - 04 - - -
Annexure-I
NATIONAL SAVINGS INSTITUTE
Groups Number of Employees Number of appointments made during the previous calender year
By Direct Recruitment By Promotion By Other Methods
Total SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Group A 3 1 - - - - - - - - - - - -
Group B 16 2 - 4 - - - - - - - - - -
Group C 30 6 3 9 - - - - - - - - - -
Group D - - - - - - - - - - - - - -
(Excluding Safai Karamcharis)
Group D
(Safai Karamcharis) - - - - - - - - - - - - - -
TOTAL 49 9 3 13 - - - - - - - - - -
80
Annexure-II
NATIONAL SAVINGS INSTITUTE

Group Number of Employees No. of No. of No. of No. of

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Group A 3 - - - - - - - - - - - - - - - - -
Group B 16 - - - - - - - - - - - - - - - - -
Group C 30 - - 1 - - - - - - - - - - - - - -
Total 49 - - 1 - - - - - - - - - - - - - -
Annexure-I
SECURITIES APPELLATE TRIBUNAL, MUMBAI

Groups Number of appointments made during the previous calendar year
Representation of By Direct Recruitment By Promotion By other Methods

SCs/STs/OBCs (Internal Recruitment)
(As on 30.11.2022)
Total No. SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs OBCs
of Employees
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Group ‘A’ 06 - - - - - - - - - - - - - -
Group ‘B’ 06 01 - 01 - - - - - - - - - - -
Group ‘C’ 11 02 - 03 - - - - - - - - - - -
TOTAL 23 03 - 04 - - - - - - - - - - -
Annexure-II
SECURITIES APPELLATE TRIBUNAL, MUMBAI


Groups Representation No. of No. of No. of No. of
(AS on 30.11.2022) Vacancies reserved Appointments made Vacancies reserved Appointments made
Total No. VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH
of
Employees
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Group ‘A’ 6 - - - - - - - - - - - - - - - - -
Group ‘B’ 06 - - 01 - - - - - - - - - - - - - -
Group ‘C’ 11 - - - - - - - - - - - - - - - - -
Total 23 - - 01 - - - - - - - - - - - - - -
81
Annexure-I
SECURITY PRINTING & MINTING CORPORATION OF INDIA LIMITED (SPMCIL)
Groups Number of Appointments made during the previous calender year
Representation of By Direct Recruitment By Promotion By Other Methods

SCs/STs/OBCs (Internal Recruitment)
(As on 30.11.2022)
Total No. SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs OBCs
of
Employees
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Group ‘A’ 367 55 18 79 7 0 1 1 32 5 3 0 0 0 0
Group ‘B’ 944 147 77 193 65 6 4 17 69 9 2 2 2 0 0
Group ‘C’ 4736 924 432 825 75 10 1 28 540 95 45 25 9 2 8
TOTAL 6047 1126 527 1097 147 16 6 46 641 109 50 27 11 2 8
Annexure-II
SECURITY PRINTING & MINTING CORPORATION OF INDIA LIMITED, (SPMCIL)

Representation of Persons with Disabilities (PWD)
Representation No. of No. of No. of No. of

(AS on 30.11.2022) Vacancies reserved Appointments made Vacancies reserved Appointments made
Total No. VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH
of
Employees
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Group ‘A’ 367 0 1 1 1 0 0 2 1 0 0 0 0 0 0 0 0 0
Group ‘B’ 944 1 0 13 0 1 1 16 0 0 1 0 0 0 22 0 0 2
Group ‘C’ 4736 15 39 87 3 0 0 26 1 0 0 0 0 0 170 2 8 4
Total 6047 16 40 101 4 1 1 44 2 0 1 0 0 0 192 2 8 6
82
Annexure-I
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
Representation of SCs, STs and OBCs as on date (31.12.2022)
Groups No. of employees Appointment by Appointment by Appointment by

in position Direct Recruitment Promotion other methods
Total SC ST OBC Total SC ST OBC Total SC ST Total SC ST OBC
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Officers 64 3 2 7 42 3 2 7 1 0 0 25 0 0 2
Executive
Assistants - - - - - - - - - - - - - - -
Multi-
Tasking Staff 3 2 - 1 - 2 - 1 - - - - - - -
Total 67 5 2 8 42 5 2 8 1 0 0 25 0 0 2
Annexure-II
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY

Representation of Persons with Disability (PWD)
By Direct Recruitment BY Promotion
Groups No. of No. of No. of No. of No. of

Employees Vacancies reserved Appointments made Vacancies reserved Appointments made
Total VH HH OH Total VH HH OH Total VH HH OH Total VH HH OH Total VH HH OH
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Officers 64 1 0 0 1 1 0 0 42 01 0 0 0 0 0 0 0 0 0 0
Executive
Assistants - - - - - - - - - - - - - - - - - - - -
Multi-
Tasking
Staff 3 - - - - - - - - 01 - - - - - - - - - -
Total 67 1 0 0 1 1 0 0 42 01 0 0 0 0 0 0 0 0 0 0
83
Annexure-I
Security and Exchange Board of India (SEBI)
Groups No. of employees in Appointment Appointment Appointment

Position (as on 30.11.2022) by Direct Recruitment by Promotion by other methods
Total SC ST OBC Total SC ST OBC Total SC ST OBC Total SC ST OBC
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Officers 995 139 58 278 140 24 9 47 143 16 8 41 0 0 0 0
Secretaries 71 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0
Junior Asst. 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Messenger/
Cook 2 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 1069 140 58 281 140 24 9 47 143 16 8 41 0 0 0 0

SEBI does not classify its employees into Groups A,B,C,D. The employees of the Board are classified as follows:
a) Officers (Grade A,B,C,D,E,F and Executive Directors)

b) Secretaries (Secretarial Staff, accounts assistants and Library Assistants (Grades A,B,C)
c) Junior Assistants
d) Messenger, Cook and Driver
Annexure-II
Security and Exchange Board of India (SEBI)
Representation of Persons with Disability(PWD)
By Direct Recruitment BY Promotion
Groups No. of No. of No. of No. of No. of

Employees Vacancies reserved Appointments made Vacancies reserved Appointments made
Total VH HH OH Total VH HH OH Total VH HH OH Total VH HH OH Total VH HH OH
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Officers 995 14 8 10 - 4 6 0 140 2 1 0 - 0 0 0 143 2 2 1
Secretaries 71 1 0 0 - 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0
Junior Asst. 1 0 0 0 - 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0
Messenger/
Cook 2 0 0 0 - 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0
Total 1069 15 8 10 - 4 6 0 140 2 1 0 - 0 0 0 143 2 2 1
SEBI does not classify its employees into Groups A,B,C,D. The employees of the Board are classified as follows:
a) Officers (Grade A,B,C,D,E,F and Executive Directors)

b) Secretaries (Secretarial Staff, accounts assistants and Library Assistants (Grades A,B,C)
c) Junior Assistants
d) Messenger, Cook and Driver
84
ORGANIZATION CHART IN THE DEPARTMENT OF ECONOMIC AFFAIRS Department of Economic Affairs I
85
Chapter - II Department of Expenditure II
1. PERSONNEL DIVISION Service(CSS)/ Central Secretariat Stenographer Service
(CSSS)/ Central Secretariat Clerical Service (CSCS) upto
1.1 The Personnel Division works under the Special the level of Section Officers/ Private Secretaries in the
Secretary (Personnel) and i s responsible f or Ministry of Finance, apart from coordinating Parliament
administration of various financial rules and regulations work as well as Right to Information Act (RTI) matters for
including those relating to personnel matters of Central the Ministry of Finance as a whole.
Government Employees such as regulation of pay and
allowances, policy matters on pension, and staffing of 1.7 Pay Research Unit (PRU)
Government establishments by creation and upgradation 1.7.1 The Pay Research Unit was established in 1968
of posts, as also cadre reviews. and is mainly responsible for collection, compilation and
1.2 The Division also deals with proposals seeking analysis of data on actual expenditure incurred on pay
to alter service conditions and other benefits to and various types of allowances as well as data pertaining
Government employees with significant recurring financial to the strength of the Central Government Civilian
implicat ion. Broad inst ructi ons on Expendit ure Employees and em ployees of Uni on Territ ory
Management, including economy measures and Administration. This unit brings out an Annual Publication
measures for improving quality of expenditure such as titled "Annual report on Pay & Allowances of Central
through Utilisation Certificates (UC) are issued by the Government Civilian Employees". The brochure provides
Personnel Division. statistical information regarding expenditure incurred by
the different Ministries/ Departments of the Central
1.3 This Division administers the General Financial Government on pay and various types of allowances such
Rules and the Delegation of Financial Powers Rules as Dearness Allowance, House Rent Allowance, Overtime
including issue of clarifications/ amendments thereto, and Allowance, Compensatory Allowance etc. in respect of
coordinates with Financial Advisors of all Ministries/ its regular civilian employees. It also provides information
Departments of the Central Government. All legislative on Ministry-wise/ Department-wise and Group wise
proposals with general financial implications are number of sanctioned posts and numbers of incumbents
scrutinized in the Personnel Division. in position.
1.4 The Department of Expenditure (DoE), Ministry of 1.8 RTI Cell
Finance (MoF) receives Capital Acquisition/works
proposals from Ministry of Defence pertaining to Army, 1.8.1 The Right to information Act, 2005 is implemented
Navy, Air Force, DRDO and Coast Guard. These in its true spirit and the information required to be
proposals are received in MoF after tender evaluation disclosed under the Act has been uploaded on the website
and price negotiations are done by MoD. Ministry of of this Department. The Central Public Information
Finance is not involved in the appraisal procedure of these Officers (CPIOs) ensure timely supply of information to
proposals although the proposals have significant applicants and prompt action is taken on appeals by
financial implications. The position of Ministry of Finance Appellate Authorities. The quarterly returns are submitted
to the Central Information Commission by the RTI Cell.
is also unique because a large number of proposals
Suo-Moto disclosure has been made mandatory as per
needing approval of CCS originating from Ministries like
Orders of the Department of Personnel & Training.
MEA and MHA are also examined in Ministry of Finance.
It is the endeavor of Ministry of Finance to ensure that no 1.8.2 RTI Cell works in close coordination with Central
duplication of assets are created for meeting similar Information Commission(CIC) and this Cell updates the
security environment wherein MoD, MHA or any other quarterly report of this Department on the CIC portal in
Ministry is a stakeholder. the matters of RTI and also receives hearing notices from
CIC and prompt action is taken on it. During the year
1.5 Service matters pertaining to the Indian Audit and
2021-22 under the RTI Act-2005, 1202 RTI applications
Accounts Service(IA&AS), Indian Civil Accounts Service
and 39 appeals received in physical form and 4146 RTI
(ICAS) and Indian Cost Accounts Service (ICoAS) are
applications and 269 appeals received online were
dealt with by this Division. Administrative assistance to
disposed off in a time-bound manner.
the Finance Ministers' Office is also provided by this
Division. 1.9 Legal Cell
1.6 The Div ision also handles the ov erall 1.9.1 Legal cell is the 'Nodal Section' of the Department
administration of the Department of Expenditure and also of Expenditure in respect of all legal matters received
controls the cadre f or all Central Secretariat from Central Registry of Hon'ble Supreme Court of India,
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various High Courts and Tribunals including other 2.1.2 Out of special assistance in the form of 50-year
Ministries/Departments and also coordinate with the interest free loan amounting to Rs. 11,830 crore provided
various branches/sections/divisions of Department of to 27 States except the State of Tamil Nadu, an amount
Expenditure and also Ministry of Law & Justice for all of Rs. 2,441 crore for completing 3 out of 4 Citizen Centric
court cases. Legal cell also compile the information Reforms (One Nation One Ration Card, Ease of Doing
regarding pending court cases on monthly basis wherein Business, Urban Local Bodies Reforms and Power Sector
Department of Expenditure is one of the respondent and Reforms) was provided to the States of Andhra Pradesh,
submit the status report for the appraisal of Finance Madhya Pradesh, Goa, Punjab, Rajasthan, Himachal
Secretary and Secretary (Expenditure). Legal Cell do Pradesh, Manipur, Odisha, Telangana, Tripura and
overall supervision of all legal matters including monitoring Uttarakhand in the financial year 2020-21.
of court cases on the LIMBS Portal for the updated entries
made in LIMBS software by the concerned sections of 2.1.3 Scheme of Special Assistance to States for Capital
the Department of Expenditure. The parliament questions Expenditure was extended for the year 2021-22 with an
received from Department of Legal affairs (DoLA) on legal allocation of Rs. 15,000 crore including an amount of Rs.
matters are also being replied by the Legal cell in 5,000 crore earmarked for providing incentive to States
consultation with various sections of Department of for privatisation/disinvestments of the State Public Sector
Expenditure. Enterprises (SPSEs) and monetization/recycling of
assets.
1.10 Staff Inspection unit (SIU)
2.1.4 Out of special assistance in the form of 50-year
1.10.1 The Staff Inspection Unit (SIU) was set up in interest free loan amounting to Rs. 14,186 crore provided
1964 with the objectives of securing economy in the to 28 States, an amount of Rs. 539 crore was provided to
staffing of Government organizations consistent with the Stat e of Madhya Pradesh, as incentiv e f or
administrative efficiency and evolving performance privatisation/disinvestments of the State Public Sector
standards and work norms in Government offices and Enterprises (SPSEs) and monetization/recycling of assets
institutions wholly or substantially dependent on in the financial year 2021-22.
Government Grants. The Scientific and Technical
Organizations are not covered within the purview of the 2.1.5 The State-wise details of the total amount
SIU but a Committee constituted by the Head of the approved and released under 'Scheme for Special
respective Department, with a representative from SIU Assistance to States for Capital Expenditure' in 2020-21
as a Core Member, conducts study of such organization. and 2021-22 is given in Annexure-I.
1.10.2 The Financial Advisors (FAs) are main links 2.1.6 Following the Union Budget Speech for 2022-23
between the SIU in the Department of Expenditure and Department of Expenditure, Ministry of Finance the
the other Ministri es / Departments / O ff ices / 'Scheme for Special Assistance to States for Capital
Organizations. All requests for staffing studies by the SIU Investment for 2022-23' has outlined an allocation of Rs.
are routed through the concerned FAs in the Departments. 1.05 lakh crore including an incentive amount of
The study reports are issued after 'on the spot' work Rs.25,000 crore, in the following six areas. The Part-I of
measurement study are conducted by the SIU Study team the Scheme has an allocation of Rs. 80,000 crore, which
which includes discussion with the senior officials of the has been allocated amongst States in proportion to their
organization and finalization of the prov ision as share of Tax Devolution for 2022-23.
assessment report of the SIU. The final report of the
2.1.7 Under Part-I of the Scheme for Special Assistance
SIU is required to be implemented by the concerned to States for Capital Investment for 2022-23, capital
organization within the stipulated period of three months
expenditure on capital projects amounting to Rs. 68,592
as per the instructions in this regard.
crore has been approved as on 30.11.2022. Out of the
2. PUBLIC FINANCE-STATES DIVISION approved Capital Expenditure, an amount of Rs. 31,571
crore has been released to the States except the States
2.1 Scheme for Special Assistance to States for of Odisha and West Bengal.
Capital Investment/Expenditure
2.1.8 Part-II (PM Gati Shakti related Expenditure) -
2.1.1 Considering the fiscal environment faced by the Rs.5,000 crore: Under Part-II of the Scheme for Special
State Governments during 2020-21 due to the shortfall Assistance to States for Capital Investment for 2022-23,
in tax revenues arising from the COVID-19 pandemic, capital expenditure on capital projects amounting to Rs.
'Scheme for Special Assistance to States for Capital 1,458 crore has been approved and out of approved
Expenditure' with an allocation of Rs. 12,000 crore, was capital expenditure, entire amount has been released to
launched in October, 2020 to assist the States in boosting the Stat es of Andhra Pradesh, Bi har, Gujarat,
capital expenditure, which has a higher multiplier effect Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland,
and enhances the productive capacity of the economy. Punjab, Telangana and Tripura as on 30.11.2022.
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Department of Expenditure II
2.1.9 Part-III (PMGSY) - Rs.4,000 crore: For providing of 3.5 percent of Gross State Domestic Product (GSDP)
supplemental funding for priority segments including has been allowed to States for the year 2022-23. The
support for the States' share. NBC of the States for the year 2022-23 has been fixed at
Rs. 8,57,849 crore at 3.5 percent of GSDP of the States.
2.1.10 Under Part-III of the Scheme f or Special
Assistance to States for Capital Investment for 2022-23, 2.2.2 Further, States have been allowed extra borrowing
an amount of Rs. 1,616 crore has been approved towards ceiling equivalent to the employer's and employee's share
States' share for priority segments under RCPLWEA and of contribution of its employees pertaining to financial year
PMGSY-III and out of approved capital expenditure entire 2022-23 actually deposited with the designated authority
amount has been released to the States of Andhra i.e. 'National Securities Depository limited (NSDL)/ trustee
Pradesh, Bihar, Chhattisgarh, Kerala, Madhya Pradesh, bank as per the guidelines of National Pension System
Maharashtra and Telangana as on 30.11.2022. (NPS), over and above, the normal net borrowing ceiling
of 3.5% of GSDP for the year 2022-23.
2.1.11 Part-IV (Incentive for Digitisation) - Rs.2,000 crore:
The amount earmarked under this part has been allocated 2.2.3 The XV-FC has recommended performance
amongst States in proportion of the result of allocation based additional borrowing space of 0.50 percent of
criteria, which is based on weighted average of reforms Gross State Domestic Product (GSDP) to States in the
and appropriated population criteria as recommended by power sector. This additional borrowing of 0.50 percent
Ministry of Electronics and Information Technology. of GSDP is over and above the NBC. The objectives of
the additional borrowing space are to improve the
2.1.12 Part-V (Optical Fiber Cable) - The amount operational and economic efficiency of the sector, and
earmarked under this part has been allocated in promote a sustained increase in paid electricity
proportion of result of allocation of criteria, which is based consumption. This special dispensation has been
on population and areas of the States as recommended recommended for each year for a four year period from
by Department of Telecommunications (DoT), Ministry 2021-22 to 2024-25.
of Communications. Further, release of funds under this
part is recommended by DoT based on compliance of 2.2.4 For the financial year 2021-22, additional
prescribed reforms. borrowing permission of Rs. 39,175 crore was allowed
to 12 States for meeting the stipulated reform criteria.
2.1.13 Under Part-V of the Scheme for Special For the financial year 2022-23 also, States are eligible
Assistance to States for Capital Investment for 2022-23, for additional borrowing of 0.5% of GSDP (approx Rs.
capital expenditure on capital projects amounting to Rs. 1,22,551 crore) linked to performance in power sector.
2,215 crore has been approved and an amount of Rs. The additional borrowing is allowed based on the
2,011 crore has been released to the States of Andhra recommendation of Ministry of Power after assessment
Pradesh, Chhattisgarh, Goa, Haryana, Jharkhand, of the performance of the States in power sector as per
Karnataka, Kerala, Madhya Pradesh, Maharashtra, the guidelines issued by the Department of Expenditure,
Manipur, Mizoram, Rajasthan, Sikkim, Tamil Nadu, Ministry of Finance.
Tripura, Uttar Pradesh and Uttarakhand as on 30.11.2022.
2.3 Additional central Assistance for Externally
2.1.14 Part-VI (Urban Reforms) - Rs.6,000 crore: Aided Projects
Incentive under this Part of the Scheme will be provided
on "First Come First Served Basis". Maximum amount 2.3.1 Additional Central Assistance (ACA) f or
of incentive will vary from Rs.100 crore to Rs.1,000 crore Externally-Aided Projects (EAPs) is passed on to the
for different category of States. General Category States on back to back basis on the
same terms and conditions on which these loans are
2.1.15 Part-VII (Disinvestment and Monetization)- received by the Union Government from donor agencies.
Rs.5,000 crore: incentives to State Governments for However, in case of North Eastern and Himalayan States,
privatization/disinvestment of the State Public Sector special dispensation has been made whereby they
Enterprises (SPSEs) and monetization/recycling of received the assistance for EAPs in grant: loan ratio of
assets. Under this Part, maximum amount of incentive is 90:10. Based on the recommendations of the Office of
Rs.1,000 crore and will be provided on 'First Come First Controller of Aid, Account and Audit Division, Department
Served Basis'. of Economic Affairs, an amount of Rs. 20,239.16 crore
2.1.16 The State-wise details of the total amount has been released against the total Budget Estimates of
approved and released as on 30.11.2022 under Part-I, Rs. 36,002.00 crore under the ACA for EAPs during the
Part-II, Part-III and Part-V of the Scheme are given in financial year 2022-23 under the demand No. 42 upto
Annexure-II. 30.11.2022.
2.2 Borrowings of the States 2.4 Special Assistance to States
2.2.1 As per the recommendations of the XV-FC, NBC 2.4.1 States are empowered through the budget line
89
'Special Assistance to States' for meeting spill over 2.5.4 Local Bodies grants (RLBs & ULBs): The XV-FC
committed liabilities for which Budget provision is not has recommended a total grants for duly constituted local
made and other need based assistance to the States. governments that sum to Rs 69,421.00 crore for the
Accordingly, an amount of Rs. 4,681 crore in 2018-19, period 2022-23. The inter-se distribution of grants for local
Rs. 1,624 crore in 2019-20, Rs. 1,949 crore in 2020-21 bodies among the States is based on population and area
and Rs. 3,766 crore in 2021-22 were released to states in the ratio of 90:10.
as Special Assistance for meeting contextual needs. Now,
in the financial year 2022-23, an amount of Rs. 979 crore 2.5.5 The Commission has recommended that 60 per
has been released (till 30.11.2022) as Special Assistance cent of the grants to rural local bodies and for urban local
to the States of Andhra Pradesh, and Arunachal Pradesh. bodies in non-Million-Plus cities should be tied to
The details of releases are provided in Annexure-III. supporting and strengthening the delivery of two
categories of basic services: (a) sanitation, maintenance
2.5 Finance Commission Grants to States of ODF status (for Rural Local Bodies), solid waste
management and attainment of star ratings as developed
2.5.1 The Finance Commission Division has been
by MoHUA (for non-million plus cities / Category-II Cities/
entrusted to deal with releases of Finance Commission
Towns; (b) drinking water, rain water harvesting and water
grants as per recommendations of successive Finance
recycling (both for Rural Local Bodies and Urban Local
Commissions during their award period.
Bodies).
2.5.2 The recommendations made by the Fifteenth
2.5.6 Health Sector grants to local bodies: To strengthen
Finance Commission (XV-FC) have been accepted by and plug the critical gaps in the health care system at the
the Union Government for the award period 2021-22 to primary health care level, XV-FC has recommended
2025-26. For the year 2022-23, the Commission has grants for Health sector to be channelized through Local
recommended allocation of an amounting to Rs 1,92,108 Governments amounting to Rs.13,192.00 crore for the
crore for Grants-in-aid of revenues of States for Post year 2022-23.
Devolution Revenue Deficit Grant, grants to Local Bodies
including health sector grant and Disaster Management 2.5.7 Disaster Management Grants: The Fifteenth
grants under Article 275 of the Constitution. The details Finance Commission for the award period 2021-22 to
of allocation and releases of grants to the State 2025-26 has made far-reaching changes to strengthen
Government under various components during 2022-23 disaster management in the country. The XV-FC has
are as under: recommended that the total States allocation for State
Disaster Risk Management Fund (SDRMF) should be
S. Components 2022-23 (Rs in crore) subdivided into two funding windows. Accordingly, the
No. Allocation Releases (up to State Disaster Response Fund (SDRF) should get 80 per
22nd November,
2022) cent of the total allocation and the State Disaster Mitigation
Post Devolution Fund (SDMF) 20 per cent. The Commission has
1. 86201.00 57467.33
Revenue Deficit Grant recommended an amount totalling to Rs 23,294.00 crore
Local Bodies Grants f or SDRMF in the year 2022-23. Similarly, the
2 69421.00 28609.16
(RLBs & ULBs) Commission has recommended that National Disaster
Health Sector Grants to Response Fund (NDRF) should get 80 per cent of the
3 13192.00 275.28
local bodies total allocation of the National Disaster Risk Management
State Disaster Risk Fund (NDRMF) and balance 20 per cent for National
4 Management Fund 23294.00 10975.80 Disaster Mitigation Fund (NDMF).
(SDRF & SDMF)
Total (1 to 4)
3. PUBLIC FINANCE CENTRAL DIVISION
5 192108.00
97327.57
3.1 Public Finance (Central) Division is primarily
National Disaster Risk engaged with all issues relating to the Central Plan of the
6 Management Fund 13010.00 886.72
(NDRF & NDMF) Government of India through various Public Funded
Programmes/ Projects/ Schemes of various Central
Grand Total (5+6) 205118.00 98214.29
Government Ministries/ Departments. This Division is
handled in two untis:- Public Finance (Central -I) and
2.5.3 With respect to Post Devolution Revenue Deficit
Public Finance (Central-II) .
Grant: In order to meet the gap in the Revenue Accounts
of the States post-dev oluti on, t he XV-FC has 3.2 This division is entrusted with the appraisal and
recommended a total Post Devolution Revenue Deficit approval of all public funded schemes and projects of
grant of Rs.86,201 crore to 14 States in the financial year the Central Ministries/PSUs. In respect of development
2022-23, out of which an amount of Rs.57,467.33 crore schemes and projects, the focus has been on improving
has already been released the quality of public Expenditure though better scheme/
90
Project formulation, emphasis on outputs, deliverables, for the meeting and dispatching minutes after approval
impact assessment and convergence approach. has been functional since August, 2017.
3.3 A continuous endeavour is made to rationalize the 3.11 In August, 2021, revised format for appraisal and
Centrally Sponsored Schemes (CSSs) and Central Sector approval of new Public Funded Schemes were issued,
Schemes (CSs) for optimal and focused use of public to make it more informative, lucid and to incorporate
resources. output/ outcome related targets in a logical framework.
This will make the appraisal more structured and effective
3.4 Public Finance (Central) division deals with the while placing enhanced emphasis on measurable outputs/
f inancial restruct uring of Central PSUs on the outcomes of public expenditure.
recommendations of the Bureau for Restructuring of
Public Sector Enterprises (BRPSE). It is also engaged in 4. PROCUREMENT POLICY DIVISION
working out modalities for financial assistance to CPSEs,
quantification of their Internal and Extra Budgetary 4.1 A Public Procurement Cell (PPC) was set up in
Resource (I&EBR) generation for preparation of budget, this Department in June, 2011 to take follow up action on
finalizing modernization of plants and machinery to ensure the Report of the Committee on Public Procurement
more efficiency in production. Review of Capex and IEBR (CoPP) and for related matters such as drafting of rules
of CPSE is also done periodically. and setting up of a Central Public Procurement Portal.
The Cell was gradually strengthened and a Division called
3.5 Various issues relating to Food, Fertilizers and Procurement Policy Division (PPD) was created.
Petroleum subsidy, including their quantification extension
of assistance to the stake holders are also dealt within 4.2 Functions of PPD
this division. This Division is actively involved along with The Division deals with the following items of work:-
the concerned Department/Ministry, in shaping subsidy
policy of the government as to ensure effective targeting i. Public Procurement legislation and rules,
notifications, orders there under;
coupled with minimum burden on the Government.
ii. Policies relating to Public Procurement including
3.6 The PFC division also deals with various issues of
administration of General Financial Rules 2017
Direct Benefit Transfer (DBT) in coordination with the DBT
on procurement of goods and services and
Mission, Adhaar seeding beneficiaries data base and use
contract management; policies relating to
of the Public Financial Management System (PFMS) in mandatory or preferential procurement;
order to have end to end digitized information on all central
expenditures encompassing CSSs, CSs, subsidies and iii. Matters relating to standardization of
other expenditure. procurement related documents;
3.7 This division is responsible for preparation of iv. All matters related to Central Public Procurement
outcome budgets for all Central Ministries/Departments Portal (CPPP) set up for publishing information
in consultation with the NITI Aayog. This Output-Outcome relating to Public Procurement;
Framework shall be for all CSSs, and CSs dealing with v. Matters relating to electronic procurement;
in identified measurable outcome in the relevant medium
term framework and physical and financial outputs are vi. Professional standards to be achieved by officials
targeted on a year to year basis, consolidated Outcome dealing with procurement and suitable training
Budget 2022-23 was presented in the Parliament as a and certification requirements for the same;
part of the Budget Documents of 2022-23. vii. Interface with International bodies on matters
3.8 During the period from 1st April, 2022 to 30th relating to Public Procurement.
November, 2022, the Expenditure Finance Committee viii. Mat ters related to operati onal issues of
(EFC) Chaired by Secretary(Expenditure) recommended Government e-Marketplace (GeM).
33 investment proposals/Schemes of various Ministries/
Departments costing Rs. 2,20,073.19 Crore. ix. Handling of proposals relating to Global Tender
Enquiry (GTE) receiv ed f rom all Central
3.9 Also during the period, Public investment board Ministries.
(PIB) chaired by Secretary (Exp.) considered and
recommended 13 proposals involving an amount of 4.3 Cen tral Publi c Pro curement Portal &
Rs.14,87,373.28 Crore. e-Procurement
3.10 In order to speed up the appraised process, and i. Pursuant to the recommendations of the
online portal for uploading EFC/PIB/SFC/DIB proposals Committee on Public Procurement (CoPP), a
to relevant Ministries, receiving comments, fixing dates Central Public Procurement Portal (CPP Portal)
91
has been set up for providing comprehensive 5. OFFICIAL LANGUAGE

inf ormat ion and data relati ng t o public
procurement and is accessible at 5.1 Hindi Section of the Department of Expenditure
www.eprocure.gov.in. It is being used at present is responsible for implementation of the provisions made
by various Ministries / Departments, CPSEs and under Official Language Act, 1963 and Official Language
autonomous / statutory bodies. e-Publishing of Rules, 1976 as amended from time to time. Hindi Section
tender enquiries, corrigenda thereto and details is also responsible for coordinating follow-up action on
of contracts awarded thereon, on the Portal, has the suggestions/ directions given by Kendriya Hindi
been made mandatory in a phased manner w.e.f Samiti, Committee of Parliament on Official Language,
1st January 2012. Hindi Advisory Committee and Central Official Language
Implementation Committee. Other responsibilities of the
ii. Further, it has also been decided to implement section include implementation of various incentive
e-Procurement in Ministries/ Departments of schemes to enhance use of Hindi in official work,
the Central Government and instructions facilitation in nomination of officers/ employees for Hindi
hav e also been issued to all Minist ries/ language training and organization of Hindi Diwas/week/
Departments to commence e-procurement in fortnight. In addition to these, efforts for achieving annual
respect of all procurement with estimated value targets set by Department of Official Language with regard
of Rs.2.50 lakh or more in a phased manner. Use to usage of Hindi in official work are made in association
of e-procurement has enhanced transparency with the other sections/divisions/offices in the Department.
and accountability and made procurement more
5.2 To increase original correspondence with other
efficient. This also helps in monitoring delays and
Offices/individuals in Hindi, letters/circulars are issued
reducing the procurement cycle.
to sections/divisions/offices from time to time. As per
iii. Currently, more than 1.1 Lakh tenders are floated quarterly progress report for the quarter ended on 31st
per month using facility of CPPP (including September, 2022. The original correspondence in Hindi
States) which amounts to more than Rs. 21 lakh with Region "A", "B" and "C" is 55.63%, 49.00% and
crore per annum. Apart f rom i t, m any 30.92% respectively.
procurement organizations like Railways, PSUs 5.3 Meetings of the Departmental Official Language
like ONGC, BHEL etc. have their own e- Implementation Committee were held on 7th April, 2022,
procurement portals. 22nd June, 2022 and 9th September, 2022 in which
4.4 Government e-Marketplace (GeM) reports for quarters ending 31st December, 2021, 31st
March, 2022 and 30th June, 2022 received from the
i. It is mandatory to buy goods/ services from GeM sections/ divisions/ offices of the Department were
only, which are available on GeM. rev iewed. Quarterly Progress Reports regarding
progressive use of Hindi received from sections/offices
ii. In order to promote greater discipline and
of the department are reviewed in detail keeping in view
timeliness in payment to vendors, it has been
the targets prescribed in the Annual Program. Wherever
decided that whenever a CRAC is auto generated shortcomings were found, they are advised to rectify/
or issued by a buyer and payment is not made improve usage of Hindi in official work.
10 days thereafter, the buyer organization will be
required to pay penal interest @ 1% per month 5.4 Replies of letters received from members of
for the delayed payment beyond the prescribed Parliament and other VIPs were promptly sent and follow
timeline till the date of such payment. up action ensured. During the period under reference,
replies to all the letters received in Hindi were compulsorily
4.5 Capacity Building given in Hindi under rule 5 of the Official Language Rules
It is imperative that the executives/ officers 1976. Also, official language inspection of Eleven
engaged in public procurement process have thorough Sections/Divisions/Offices was conducted. During
knowledge of all the relevant rules, regulations and inspection their work was f ound satisfactory and
suggestions were also given to them to further improve
procedures of public procurement. For the purpose, one
the progress of Official Language Hindi.
week Training Program on Public Procurement is
conducted in Arun Jaitely National Institute of Financial 5.5 The Policy of the Government with regard to the
Management (AJNIFM), Faridabad with a view to educate propagation and spread of the Official Language is that
and familiarize the concerned executives/ officers with the use of Hindi as Official Language may be increased
all the relevant rules, regulations and procedures of public with motivation, encouragement and goodwill. Hindi
procurement. Around 2000 officers per annum are being workshops are organized from time to time for the
trained. So far, around 10000 officers have already been employees of the department to help them solve the
trained in AJNIFM. practical difficulties in working in Hindi. This year, Hindi
92
workshops were organized in the department on June 6.3 The Integrated Finance Unit expeditiously
2, 2022 and September 9, 2022, in which problems examines and disposes the financial and expenditure
faced while filling quarterly progress reports and annual proposals pertaining to the Department of Expenditure
evaluation reports were addressed and employees were including the proposals for appointment of consultants,
motivated to do noting on files originally in Hindi. "Hindi deputation of officers abroad, payments towards Course
Fortnight" was observed in the Department from 14-28 Fees (including grants-in-aid) to National Institute of
September, 2022 to motivate the employees for the Financial Management etc. duly observing austerity
progressive usage of Hindi in their day-to-day work. instructions issued by the Govt. from time to time.
Several competitions viz. Hindi Essay Writing, Noting- 6.4 The expenditure trend of Grant No.31-DoE is
Drafting, Hindi Typing on Computer, Poem Writing and monitored consistently and strict control has been
Hindi dictation-handwriting were organized to encourage exercised over the expenditure. A report of the review is
the employees to work in Hindi and create a conducive regularly submitted to the Secretary (Expenditure) on
atmosphere. In addition, a Campaign was launched for monthly basis through DO letter.
undertaking more and more work in Hindi (minimum
2000 words) during the period from 01st to 30th 7. CONTROLLER GENERAL OF ACCOUNTS
September, 2022. This year, Consolation prizes are 7.1 The Controller General of Accounts (CGA), in the
increased to 5. Several officers and employees of the Department of Expenditure, Ministry of Finance, is the
Department took part in these competitions/campaigns Aut horit y to administer, manage and superv ise
enthusiastically. Along with this, in order to promote work departmentalized accounts of Government of India. It also
in Hindi, this year, the 'Incentive scheme for noting/ provides advice to various Ministries/Departments of
drafting in official work originally in Hindi', promoted by Government of India concerning Financial/Accounting
the Department of Official Language, has also been matters and is responsible for establishing and maintaining
implemented in the Department of Expenditure. a technically sound Payment and Accounting System.
6. INTEGRATED FINANCE UNIT (IFU) 7.2 The Office of Controller General of Accounts
prepares monthly and annual analysis of expenditure,
6.1 The Integrated Finance Unit works under revenues, borrowings and various fiscal indicators for the
Additional Secretary & Financial Adviser (Finance) and Union Government. Under Article 150 of the Constitution,
deals with the expenditure and Budget related proposals the Annual Appropriation Accounts (Civil) and Union
under Grant No.31 - Department of Expenditure which Finance Accounts are submitted to Parliament. Along with
includes (i) Secretariat General Services covering the these documents, an M.I.S Report titled 'Accounts at a
establishment budget for the Department of Expenditure Glance' is prepared and circulated to Hon'ble Members of
(Main Secretariat), O/o Controller General of Accounts, Parliament.
O/o Central Pension Accounting Office, O/o Cost
7.3 Functions: i) Formulate policies relating to general
Accounts Branch and O/o Chief Controller of Accounts;
principles, form and procedure of accounting for the Central
and (ii) Other Administrative Services covering the
and State Governments; ii) Administer the process of
budget for Institute of Government Accounts and
payments, receipts and accounting in Central Civil
Finance, National Institute of Financial Management, Ministries / Departments; iii) Prepare, consolidate and
Contribution to International Body (AGAOA) and the submit the monthly and annual accounts of the Central
budget relating to payment of service charges to the Government through a robust financial reporting system
Central Recordkeeping Agency for the New Pension aimed at effective implementation of the Government fiscal
Scheme. policies; iv) Coordinate and assist in the introduction of
Management Accounting Systems in Ministri es/
6.2 This Unit also monitors the Monthly expenditure
Departments with a view to optimizing the utilization of
under Grant No.31 - Department of Expenditure.
Government resources through efficient cash management
The allocations under Grant No.31-Department and an effective Financial Management Information
of Expenditure are as under: System (FMIS); v) Administer banking arrangements for
(Rs. in crore)
Budget Estimates 2022-23 *Revised Estimates 2022-23

Grant No.
Revenue Capital Total Revenue Capital Total
31 – Department of Expenditure 476.88 0.01 476.89 - - -
*Yet to be received.
93
disbursements of Gov ernment expenditures and v. The Finance Accounts of the Cent ral
collection of government receipts and interact with the Government comprises of the accounts of the
Central Bank for reconciliation of cash balances of the Central Government as a whole and includes
Union Government; and vi) Establish a sound Human transactions of Civil Ministries/Departments,
Resource Management System f or recruitment, Ministries of Defence and Railways and the
deployment and improve the career profile management Departments of Posts & Telecommunication. It
of officers and staff, both at the supervisory level and at presents the accounts of receipts and outflows
the operational level within the Indian Civil Accounts of the Central Government for the year together
Service. with the financial results disclosed by different
accounts and other data comi ng under
7.4 Financial Reporting - Monthly and Annual examination. These accounts include the
Revenue and Capital Account, Public Debt
i. The office of the Controller General of Accounts
account and other liabilities and assets worked
is responsible for Monthly Consolidation of the
out from the balances in the accounts. It is
Union Government Accounts, a detailed analysis
supplemented by the accounts separately
of the monthly trends of receipts, payments,
presented in the form of Appropriation Accounts
deficit and its sources of financing are presented for Grants and charged Appropriations. The
to the Union Finance Minister every month. The Finance Accounts is an Auditor's presentation of
documents has over a period of time evolved into the general accounts of the Government to
an extremely useful tool for monitoring budgetary Parliament.
compliance and a handy MIS reference for
decision making. In consonance with the 7.5 Public Financial Management System(PFMS):
Government's policy towards transparency in
The Public Financial Management System
public functioning, an abstract of the Union
(PFMS) is a web-based online software application
Government accounts is also released every
designed, developed, owned and implemented by the
month on the Internet. The data can be accessed
Office of the Controller General of Accounts. Public
at the website http://www.cga.nic.in.
Financial Management System aims to provide a sound
ii. With the advancement of technology this office Public Financial Management System for Government
has started providing flash figures of receipts, of India (GOI) by establishing a comprehensive payment,
payments and deficit to Ministry of Finance for receipt and accounting network. It is aimed to achieve (i)
data dissemination and quick management "Just in time" transfer of funds and (ii) complete tracking
decision. Daily flash figures are provided in the of realization of funds from its release to its credit into
month of March, in order to monitor various the bank account of intended beneficiaries. Public
financial parameters and targets. Financial Management System makes a direct and
significant contribution to the Digital India Initiative of
iii. In tune with the development in best practices, Government of India by enabling electronic payment and
Controller General of Accounts’ Office also receipt for Ministries/Departments in Government of India.
prepares Prov isional Accounts of the
7.5.1 Through PFMS, Rs. 89.09 Crore Transactions
Government of India within two months of
have been done during FY 2022 - 23 (as on 30.11.2022).
com plet ion of the f inanci al year. The
The Direct Benefit Transfer (DBT) under various social
professionalism with which these accounts are
welfare schemes like Scholarships, Subsidy, wages,
prepared is evident from the high accuracy level pensions, cash in lieu of food grains etc. directly in the
attained in the last few years as only marginal bank account of the beneficiary is being done for 926
variations have been observed between the schemes. A total of Rs. 88.46 Crore transactions
Provisional Accounts and final audited Annual disbursing Rs. 1,98,191.36 Crore has been achieved in
accounts. FY 2022-23 (upto 30th November 2022).
iv. The Finance Accounts of the Union Government 7.5.2 Single Nodal Account (SNA) Implementation:-
is submitted to Parliament under the provision
of Article 151 of the Constitution of India. The As an important Public Financial Management
Finance Accounts of the Union Government reform, the fund release mechanism was changed by
presents the accounts of recei pts and Ministry of Finance for the Centrally Sponsored Schemes
disbursements for the purpose of the Union in 2021 that aim at better cash management and best
Government together with the financial results value realization for every rupee spent by the government.
disclosed by the revenue and capital accounts, SNA model for Centrally Sponsored Schemes
the accounts of the public debt and the liabilities requires every state to designate an SNA for each CSS.
and assets are worked out from the balances Funds are now being released by the State Treasury to
recorded in the accounts. the State Nodal Agency's bank accounts. The child
94
agencies can operate the SNA account or open the Zero 02-03-2022. As on 1st November, 2022, it is rolled out
Balance Accounts. This has resulted into effective and in 305 Pay & Accounts Offices (PAOs) of 47 Civil
real time monitoring of the funds and expenditure, as the Ministries/Departments and 2 Union Territories.
entire funds of the scheme lies in a Single Nodal Account.
7.6 Technical Advice on Accounting matters
As on 12th December, 2022, 3500 State Linked
Schemes corresponding to 124 Centrally Sponsored 7.6.1 Article 150 of the Constitution provides that "The
Schemes have been onboarded on SNA Model. accounts of the Union and of the States shall be kept in
such form as the President may, on the advice of the
SNA reports have been developed to provide Comptroller and Auditor General of India, prescribe." Note
information related to funds released by Government of to Rule 3 of Government Accounting Rules, 1990 provides
India, funds transferred by State Treasury to SNA, that "this function is exercised by the Controller General
expenditure done by SNA and unspent balances. of Accounts, Ministry of Finance (Department of
Expenditure) on behalf of the President of India."
7.5.3 Central Nodal Agency (CNA) Implementation:-
7.6.2 Expenditures are classified according to the
With an objective to achieve efficient cash
function, programme, and their economic nature using a
Management, Ministry of Finance introduced revised
fifteen digit numerical code. Receipts are classified
procedure of funds flow under Central Sector Scheme
according to their nature and source.
with effect from 1.4.2022 namely Central Nodal Agency
(CNA) System though Public Financial Management 7.6.3 In terms of Rule 26 of GAR, 1990, Controller
System (PFMS). This revised procedure is aimed at General of Accounts’ office administers the 'List of Major
enhancing the efficiency of fund flows by using the 'just and Minor Heads of Account of Union and States
in time' principle for drawl of funds and thereby ensuring (LMMHA)', which contains the classification of account
better Cash Management in Government of India. heads upto Minor Head level (and some Sub/Detailed
There are two models of implementation. Under Heads under some of them) in Government Accounts.
Model I namely TSA Model, CNA and sub-agencies draws Any amendment in LMMHA is carried out on advice of
funds directly from Reserve Bank of India based on the Comptroller and Auditor General of India (C&AG). In
assignment limits. This model is applicable for all cases involving policy on Accounting Procedure, the
schemes having an outlay of more than Rs. 500 crore. Budget Division, Department of Economic Affairs, Ministry
For rest of the schemes model 2 is applicable wherein of Finance is also consulted.
funds are released from Central Government to CNA's 7.6.4 The Object Heads have been prescribed under
scheduled commercial bank account only. Down the Government of India's Orders below Rule 8 of Delegation
ladder agencies can either draw funds from CNA account
of Financial Power Rules, 1978. The power to amend or
directly or open zero balance subsidiary accounts mapped
modify Standard Object heads and to open new Object
with CNA account.
Heads rests with the Department of Expenditure of
As on 30th November,2022, total 193 Central Ministry of Finance on the advice of the Comptroller and
Sector Schemes are on boarded on CNA system. Out of Auditor General of India. Department of Expenditure in
which 29 are under Model 1 and 164 are under Model 2. consultation with Controller General of Accounts’ Office,
Comptroller and Auditor General of India’s (C&AG) Office
7.5.4 e-Bill:- In pursuance of the Digital India Initiative and Budget Division of Department of Economic Affairs
of Hon'ble Prime Minister, it was decided to develop a (DEA) have reviewed the Standard Object Heads, the
system to enable end to end digital processing of bills revised Object Heads have been notified on 16.12.2022
and claims from Vendors, suppliers, contractors and all and will be implemented with the effect from the financial
other types of payees of Government. The system was year 2023-24.
developed in the Public Financial Management System
(PFMS) for the use in all Civil Ministries and Departments. 7.7 Treasury Single Account (TSA)
With the initiative of e-bill supported by the revision in
7.7.1 The Expenditure Management Commission
the Receipt and Payment Rules, the complete Payment
(EMC) vide Para 125 of its September 2015 report had
system has become paperless. The system, apart from
recommended to gradually bring all Autonomous Bodies
providing convenience to vendors/suppliers/other
claimants in digital upload of their bills is expected to bring (ABs) under Treasury Single Account (TSA) system.
about such advantages as shorter bill payment cycle, Under Treasury Single Account (TSA) system, all
online tracking of the bill position, more effective audit Autonomous Bodies (ABs) in receipt of Grants-in-aid from
trails in the payment system, and environmental benefits Central Government have to open assignment limit based
on account of elimination of paper requirement. account in RBI linked with Central Government Principal
Accounts’ Offices Account at RBI. Thereby 'Just-in-time'
The e-bill system was launched by Hon’ble FM release is ensured against the assignment limit to
on Pilot basis in 9 of 5 Ministries and Departments on Autonomous Bodies (ABs). The unutilized balances at
95
the end of the financial year will be written back to paragraphs, Action Taken Replies (ATRs) on PAC
Government Account by PAO. The main advantage of paragraphs and Explanatory Notes (ENs) on saving of
the project is towards financial gain on account of savings Rs. 100 crore and above and excess expenditure as per
due to Just in time releases to Autonomous Bodies (ABs) direction of Public Accounts Committee. Submission of
resulting in reduction of borrowings by the Government Act ion Taken Notes/Act ion Taken Repl ies and
through RBI. The guidelines for implementation of the Explanatory Notes are being done through the Audit Paras
Treasury Single Account (TSA) System were issued by Monitoring System (APMS) Portal, which facilitates online
Department of Expenditure, Ministry of Finance. submission of ATNs/ATRs/ENs to Lok Sabha Secretariat.
Monitoring Cell is also administrator of APMS Portal
7.7.2 Implementation of Treasury Single Account (TSA) dealing with its development, maintenance and provide
has been extended to 40 group of Autonomous Bodies Quarterly training to users of APMS Portal.
(ABs), receiving funds amounting to more than Rs. 200
crore each from BE 2021-22 vide Budget Division, The number of ATNs/ATRs on C&AG/PAC
Ministry of Finance’s OM dated 22-02-2021. paragraphs and Explanatory Notes submitted/settled
through APMS Portal to the Lok Sabha Secretariat (PAC
7.7.3 The coverage of the TSA has been further Branch) during 2022-23, are as under:-
expanded. Ministry of Finance vide OM No. F. No. 1(18)/
PFMS/FCD/2021 dated 9th March, 2022 has issued
revised procedures for the flow of funds under the Central Paras submitted to Lok
Sector Scheme and monitoring utilization of funds S.No. Subject Sabha Secretariat during
released w.e.f 1.4.2022 . 01.04.2022 to 29.11.2022
7.8 Revision of Central Government Accounts 1. C&AG Audit Paras 659

(Receipts and Payments) Rules, 1983
7.8.1 Central Government Account (Receipts and 2. PAC Paras 89
Payments) Rules, 2022 (RPR, 2022) and Subsidiary
Instructions to RPR, 2022 were approved. RPR, 2022 3. Explanatory Notes 18
was published in the Gazette of India Notifications on
20.8.2022. RPR 2022 is the revised and updated rules 7.10 Institute of Government Accounts and
in place of RPR, 1983 and Treasury Rules of the Central Finance (INGAF)
Government. RPR, 2022 contain rules regulating the
7.10.1 The Institute of Government Accounts & Finance
custody of the Consolidated Fund of India, the payment
(INGAF) is the training arm of the Controller General of
of money into such funds, the withdrawal of money there
Accounts (CGA), Department of Expenditure, Ministry of
from, the custody of public money other than those
credited to such funds received by or on behalf of the Finance, Government of India. Initially known as the Staff
Government of India, their payment into the Public Training Institute, it was set up in February, 1992 to train
Account of India and the withdrawal of money from such personnel in specific areas of accounting, administrative
Account and all other matters connected therewith or matters and financial management. In the years following
ancillary thereto. The rules have been prescribed in two its inception, the Institute has evolved to become a
parts (i) RPR, 2022 and (ii) Subsidiary Instructions to premier training centre in the spheres of Government
RPR, 2022 (detailed procedures and forms). Accounting and Public Financial Management. In addition,
the Institute has Regional Training Centres (RTCs) at
7.8.2 The revision was undertaken to consolidate all
Chennai, Kolkata, Aizawl and Mumbai.
instructions and cater to new initiatives in receipts and
payments in the light of end-to-end electronic processes 7.10.2 Customized or Sponsored Training:- The Institute
of Government receipts, payments and its accounting in of Government Accounts & Finance (INGAF) is being
the Central Government. regularly approached by various organization to provide
in-depth training for their staff and officers from Group A,
7.8.3 RPR, 2022 and Subsidiary Instructions to rules B & C such as Drawing and Disbursing Officers (DDOs)/
will enable an improved, efficient and effective framework Heads of Officers etc. on a variety of subjects. The
of Government receipts, payments and its accounting in Institute has formulated and arranged training courses
Central Government. for such organization and while some of these training
7.9 Monitoring Cell courses are undertaken on cost sharing basis, in cases
of other courses, the entire cost is charged to the
Monitoring Cell, Office of the Controller General of concerned departments. Over the last four years (2017-
Accounts, Department of Expenditure, Ministry of Finance 18 to 2020-21), this Institute has conducted training
is entrusted with the work of co-ordination of timely programs for the different organization whose duration
submission of Action Taken Notes (ATNs) on C&AG spanned from one week to five weeks. Prominent of these
96
include National Investigation Agency (NIA), National Committees (SFC), Public Investment Board (PIB),
Sample Survey Organization (NSSO), Enforcement Delegated Investment Board (DIB), Advisory Committee
Directorate (ED), O/o Registrar General of India (ORGI) for consideration of Techno-economic viability of Major /
and so on. Medium, Flood Control and Multipurpose Projects; ii)
Revised Cost Committee (RCC) to examine time & cost
7.10.3 International Cooperation:- The Institute of overruns or projects helps in identification of reasons for
Government Accounts & Finance (INGAF) is a premier tim e and cost ov erruns and prov i de inputs f or
institute in the field of imparting training to participants rationalization of cost; iii) Member of Rate Structure
from countries under ITEC programme in collaboration Committee for Directorate of Advertising and Visual
with Ministry of External Affairs. Besides this, the DPFM Publicity (DAVP) advertisement rates for Print Media, FM
participants of Sri Lanka Institute of Development Radio, Television, Internet and social media and
Administration (SLIDA), Sri Lanka have visited Institute Governing Body of National Pharmaceutical Pricing
of Government Accounts & Finance (INGAF) on several Authority (NPPA);iv)Assisting Central Government
occasion for training on Public Financial management, Ministries/ Departments/ Organizations in solving
In addition, several programmes on Public Expenditure complex price/ cost related issues, in fixing fair prices for
Management/Public Financial Management as well as various services/ products and rendering advice to various
Internal Audit/Risk Audit have regularly been conducted Ministries/ Departments in cost matters; v)Determination
for the participants from Royal Government of Bhutan, /fixation of fair prices of the products and services
the Gov ernment of Bhutan, the Gov ernment of supplied/rendered to Government. Some of the major
Afghanistan and Nepal. studies are determination of cost / fair price of bank notes
Last but not the l east , The Inst itute of and coins supplied by SPMCIL to Reserve Bank of India,
Government Accounts & Finance (INGAF) has been rails supplied by SAIL & traction supplied by BHEL to
functioning as the Secretariat for the Association of Ministry of Railways, Contraceptives supplied by HLL
Government Accounts Organization of Asia (AGAOA) Lifecare Limited to Ministry of Health & Family Welfare
since November 2007. The purpose of AGAOA is to and Continuously Operating Reference Stations (CORS)
promote 'professional understanding and technical Services provided by Survey of India etc.; vi) Examination/
cooperation among member institutions through verification of claims between Government Departments/
exchange of ideas and experiences in the fields covered Public Sector Undertakings and suppliers arising out of
by Government Accounts Organization to ensure purchase contracts; vii)Vetting of claims under Price
transparency, accountability and good governance'. Support Scheme and Price Stabilization Fund for
Perishable Agriculture produce and Cereals submitted
7.10.4 MISSION KARMAYOGI by Implementing Agencies and State Governments; and
INGAF continuously thrives to raise its training viii) Examination of cost estimates, evaluation of the
profile both in terms of magnitude and eminence. To financial feasibility and other financial parameters of the
facilitate and build the capacity of the officials, INGAF in High value Infrastructural Projects like Rail, Highways,
collaboration with Capacity Building Commission has Power, Education Sector etc. referred by DoE.
meticulously curated the digitized course on FRSR III 8.3 The Office of CAC is also cadre controlling office
(Leave Rules), under Mission Karmayogi which has been for the Indian Cost Accounts Service (ICoAS),which
successfully launched by Hon'ble Finance Minister during broadly encompasses Recruitment, transfer/posting and
iconic week of Azadi Ka Amrit Mahotsav. Similar courses career progressions of ICoAS Officers. It also looks after
on FRSR-I, FRSR-II, FRSR-IV & FRSR-V are in the training requirements of the officers for continuous up-
process of digitization and will be launched shortly.
gradation of their knowledge and skills, in addition to
8. CHIEF ADVISOR COST rendering professional guidance to the ICoAS officers
working in different participating organizations. ICoAS has
8.1 The Office of Chief Adviser Cost (CAC) is one of the sanctioned strength of 230 officers and is staffed by
the div i sions f unctioni ng in the Department of Cost Accountants / Chartered Accountants.
Expenditure, Ministry of Finance.
8.4 The Office of Chief Adviser Cost completed 46
8.2 The Office of Chief Adviser Cost is rendering studies/reports during the period from December, 2021
adv ice t o the Central Gov ernment Ministri es/ to November, 2022 following last annual report. The
Departments/Organizations on complex Price/Cost cost-price studies including vetting of claim/compensation
related issues and financial matters, which cover a wide
completed during this period are detailed below:
spectrum of sectors/areas. It is currently engaged in the
following major thrust areas viz. i)Provides inputs for (i) Determination of Fair selling price of products/
rationalization of cost of projects / schemes of various service where Government/Public Sector
Ministries / Departments in various committees e.g. Undertaking is the Producer/Service provider as
Expenditure Finance Committees (EFC), State Finance well as the user:- a) Determination of Fair Price
97
of Coins Supplied by India Government Mint handed over to ITPC by Northern Railway; and
(IGM) Hyderabad to RBI during for FY 2019-20; e) Grant-in-Aid claim in respect of establishment
b) Determination of Fair Selling Price of Coin cost & provision for PMO Canteen for FY
Supplied by IGM-Mumbai to RBI during the FY 2021-22.
2019-20; c) Determination of Fair Price of Coins
Supplied by India Government Mint (IGM) (iii) Other studies :- a) Revaluation of compensation
Kolkata to RBI during for FY 2019-20;d) payable to the prior allottees of Coal Blocks for
Determination of Fair Price of Coins Supplied by 'Mine Infrastructure Other than Land' for various
IGM-Noi da to RBI during F Y 2019- coal blocks; b) Report on cost Analysis of
20;e)Consolidated Cost Report of Four IGM at Demand Aadhaar PVC Card Service of Unique
Mumbai, Kolkata, Hyderabad, Noida in respect Identification Authority of India; and c) Report on
of Fair Price of Coins supplied to RBI during for compensation payable to UCIL for supplying
FY 2019-20;f ) Price Fixation of Condoms Uranium Concentrate for year 2019-20.
Manufactured / supplied by M/s HLL Healthcare 8.5. Rev ised Cost Esti mates Com mitt ees
Ltd. to M/o HFW for the year 2019-20; g) Cost of Represented: In pursuance of Ministry of Finance,
production and fair selling price of Postal Department of Expenditure's Office Memorandum
Stationery items produced supplied by SPPH to No. 24(35)/PF-II/2012 dated 05th August, 2016, Office
D/o Posts during 2019-20; h) Fair selling price of of Chief Adviser Cost has represented in 122 Committees
Tear Smoke Munitions Manufactured by TSU, for Revision of Cost Estimates in various Ministries/
BSF during the year 2020-21; i) Fixation of the Departments involving a total value of Rs. 1,68,363.41
prices of continuously operating reference station crore during the current year. Proactive role of this Office
(CORS); j)Supplementary Report on fixation of in t he Rev ised Cost Com mittee has f acilitated
pri ce of NGADU year 2018-19, REC rationalisation of revised cost estimates.
OSCOM;k)Vetting of price of Ayurvedic and
Unani Medicines manufactured by IMPCL for the 8.6 EFC/PIB Committee Represented: This Office
year 2018-19;l)Fixation of rate of compensation has represented and offered comments in 25 Expenditure
for NGADU supplied by IREL RED for FY Finance Committee (EFC)/Public Investment Board (PIB)
2019-20;m)Determination of Fair Price of Postal meetings in various Ministries/Departments involving a
stationery items produced and supplied by INP total value of Rs. 30,65,718.32 crore during the period
Nasik to D/o Posts during f or year December, 2021 to November, 2022.
2019-20;n)Study for determination of fair price 8.7 Other Major Committees Represented: Officers
of Postal items produced and supplied by SPP- of Chief Adviser Cost's Office owing to their expertise in
Hyderabad during year 2018-19;o) costing/finance/commercial accounting have also served
Supplementary Report on fixation of rate of as Chairman/Members on the following major multi-
NGADU supplied by OSCOM-MoIP of REC year disciplinary Inter-Ministerial/ Expert Committees:-
2017-18; p)Re-Fixation of Fair Selling Price of a)Academic Council Meeting of Arun Jaitley National
Tear Gas Gun and Multi Barrel Launches for year Institute of Financial Management (AJNIFM) for 29th
2020-21; and q) Fixation of Common Hourly Probationers Training Course (PTC); b) National
Rates and Overhead % for Government of India Pharmaceutical Pricing Authority (NPPA), Department of
Press, Temple Street Kolkata, Mayapuri New Pharmaceuticals; c) Advisory Committee on Irrigation,
Delhi and Nashik for year 2019-20, Government Flood Control and Multipurpose Projects; d) Committee
of India Mayapuri New Delhi, Minto Road New to resolve the issue of interest on delayed payment to
Delhi and Nashik for year 2019-20. HIL India Ltd. under Chairmanship of AS&FA, MoH&FW;
(ii) Determination of subsidy/Reimbursement of e) Board of Governors and the society of the Arun Jaitely
Losses:-a)Vetting of claims of NAFED for National Institute of Financial Management (AJNIFM),
reimbursement of losses and recovery of Gains Faridabad; f) Governing Body of Tear Smoke Unit, BSF,
Tekanpur, (Gwalior);g)Working Group for reviewing the
under Price Support Scheme (PSS) for various
calculation of Benefit-Cost Ratio and Procedure for
crops/commodities; b)Subsidy payable to
Revised Cost estimation for Major & Medium Irrigation
Northern Railway Catering Unit Functioning in Flood Control and Multi-purpose projects under the
Parliament House Complex for the year 2020- Chairmanship of Member (Water Projects & Planning),
21; c) Vetting of claims under Market Intervention Central Water Commission; h)9th Rate Structure
Scheme and Price Stabilization Fund for Committee under the Chairmanship of AS&FA, Ministry
Perishable Agriculture produce and Cereals of Information and Broadcasting for DAVP advertisement
submitted by Implementing Agencies and State rates for Print Media; i) Committee to adopt Uniform
Gov ernm ents f or v arious years; d) Format of Accounts in Financial Management of
Reimbursement of value of crockery, cutlery etc. autonomous bodies; j) Committee for Ethanol price to be
98
paid to ethanol suppliers for Ethanol Supply year b. Master of Business Administration in Financial
2022-23 (1st December, 2022 to 30th November 2023) Management- for mid-level officers of Central
under the Ethanol Blended Petrol (EBP) Programme; and and State Governments, Autonomous Bodies &
k) Disposal of Chana procured under Price Support Defence Services.
Scheme (PSS) & Price Stabilization Fund (PSF) to States/
UTs at a discounted rate of Rs. 8/- per kg over issue c. Master of Business Administration (Finance): It
price of utilization under various welfare schemes like focus on Financial Analysis, Financial Modelling
Mid-Day-Meal, Public Distribution System, ICDP etc. & Forecasting, Big Data Analytics and Risk
Managem ent etc. The programme is
8.8 Celebration of Iconic Week of Azadi Ka Amrit
comprehensive in nature, covering all major
Mahotsav: During the Iconic week of Ministry of Finance
areas of financial markets viz. Equity, Debt,
in the celebration of Azadi ka Amrit Mahotsav from 6th
Mutual Funds, Equity Derivatives, Currency
June to 11th June, 2022, various programs/events were
organised by Office of Chief Adviser Cost including Derivatives and Commodities etc. for mid-level
Seminar on 'Appraisal & Monitoring of Infrastructure officers of Government & others.
Projects- Time and Cost Overruns' with Interaction of d. Post Graduate Dipl oma in Gov ernm ent
Finance Secretary & Secretary Expenditure with Financial
Accounting and Internal Audit (PGDG&IA) - It is
Advisers and participants, 'Walkathon from Lodi Garden
a one year programme to upgrade the technical
to Office of CAC', Workshop on 'Vision ICoAS@2047',
'Input Tax Credit under Goods and Service Tax (GST) skills of Group-B officers of the Civil Accounts
Act' and 'Cost Accounting Standard 19 on Joint Costs. Department.
9. ARUN JAITLEY NATIONAL INSTITUTE 9.3.2 Apart from its regular long term programs, AJNIFM
OF FINANCIAL MANAGEMENT conducts short term training programs on various aspects
(AJNIFM) of Finance and Public Financial Management.
Participants include officers from Central Government,
9.1 Introduction about AJNIFM State Government, Autonomous Bodies, PSUs, Defence
9.1.1 AJNIFM was set up in 1993 as a Society. The & Paramilitary Forces etc. These short-term programs
Union Finance Minister is the President of the AJNIFM deal with specific themes and are specially tailored to
Society and Secretary (Expenditure) is the Chairman of address the needs of the participants and sponsoring
the Board of Governors. organizations.
9.1.2 It began with the core objective of imparting 9.4 Col laboration with other Min istri es/
training to Officer Trainees (Probationers) of the six Departments
organized Accounts and Finance services. However, over
the years, the Institute has expanded its activities with a) AJNIFM has signed a MoU with Research &
four long term programs and a dynamic repertoire of Information Division of Lok Sabha Secretariat.
short-term programs. In the process, AJNIFM has been The objective of MoU is to provide written
able to carve a unique identity for itself as a premier materials/articles like Commentaries, Briefs,
institute of Ministry of Finance in professionalizing Public Background Notes on mutually agreed topics to
Financial Management and Public Procurement. the R&I Division of Lok Sabha Secretariat.
9.2 Key achievements b) AJNIFM has signed a MoU with Jawaharlal
Till November 2022, AJNIFM has conducted 71 Nehru University (JNU). Under this MoU, JNU
Capacity Building/Management Development Programs has recognized AJNIFM as a partner institution
and 1935 officers have been imparted training. 50 more and participants of two long term programs will
Capacity Buil ding/ Management Dev elopm ent be enrolled with them for award of MBA Degree
Programmes have been slotted during last December, from academic year 2022.
2022 to March, 2023 and 1500 officers are expected to
be trained. c) AJNIFM has signed a MoU with Department of
Expenditure. This MoU paved the way of setting
9.3 Sig nificant d evelo pmen ts - Train ing up of a Procurement Research Centre(PRC) in
Programmes AJNIFM with the aim to conduct research on
9.3.1 AJNIFM conducts four long term programs. These different facets of Public Procurement.
are as under: d) AJNIFM has signed a MoA with Department of
a. Professional Training Course- for Officer Economic Affairs and various reports are
Trainees of various Accounts and Finance submitted to them in accordance with terms of
Services of twenty six weeks duration. reference.
99
9.5 Initiatives taken with reference to the departments of the Ministry of Finance are sent
Northeast region. to the office of the Controller General of Accounts
for their consolidation into the Accounts of
The programs run by AJNIFM draw participants Government of India.
from all over the country. Recently, a special training
program of one week duration on Financial Management  The Scheme of Departmentalization of Accounts
& other Financial Rules for State Civil Service officers of had env isaged a system of management
Arunachal Pradesh has been conducted from 28th accounting O/o CCA prepares monthly and
November to 03rd December, 2022. Similar special quarterly review statements for receipt and
training programs have been organized for officers of expendit ure and submits the same f or
Government of Himachal Pradesh, Uttarakhand, Odisha inf ormation of t he Secretaries of the
& Madhya Pradesh. Departments. The summary statements are also
uploaded on the Ministry's official website.
9.6 Ini tiati ves u ndertaken for Disabl ed/
Handicapped and SC/ST as well as other  Internal Audit is the responsibility of the O/o CCA.
weaker sections of Society In the Ministry of Finance, the Internal Audit Wing
undertakes the audit of all DDOs, attached and
The AJNIFM campus is disabled friendly with retro fittings subordinate offices including Banks who are
at most of places. Any grievance received in respect of handling Government Schemes such as Public
SC/ST or other weaker sections are duly addressed. As Provident Fund, Special Deposit Schemes and
on date, no grievance is pending with the Institute. Senior Citizen Savings Scheme. There are about
9.7 Inputs on e-governance 145 auditee units within the jurisdiction of internal
audit.
9.7.1 Dissemination of knowledge on new initiatives
of the Government: Whenever there are new initiatives  Budget related work for nine (9) Grants pertaining
of the Central Government, AJNIFM has been mandated to Department of Economic Affairs, Department
to launch special training drives to cover all Government of Financial Serv i ces, Department of
entities. In fulfilment of this mandate, AJNIFM has run Expenditure, Transfer to States, Department of
several training programs on Public Procurement Revenue, Department of Investment and Public
including GeM. Asset Management and Department of Public
Enterprises are vested with O/o CCA.
9.7.2 Digital Governance: AJNIFM is a partner Institute
under NeGD and is successfully delivering capacity building  Providing support staff to Controller of Aid
and training programs in e-Governance for all cadres of Accounts and Audit (CAAA).
Government officials. Various training courses run at  Pension authorization under the Pension Rules
AJNIFM comprise a component on e-governance invariably.
to the officials retiring on superannuation, seeking
10. CHIEF CONTROLLER OF ACCOUNTS voluntary retirement and to the families of
(FINANCE) deceased employees/pensioners.
10.1 The Chief Controller of Accounts (CCA) is in  Pension payment to foreign pensioners residing
overall charge of the payment and accounting set up of in India on behalf of Sri Lanka, Singapore, UK
the Ministry, supported by three Controller of Accounts, and Myanmar.
two Deputy Controllers of Accounts, two Assistant
Controllers of Accounts, 37 Senior Accounts Officers and  Accounting and monitoring of Loans advanced
approximately 300 other staff members at various levels. to foreign countries.
10.2 Function of the CCA (FINANCE)  Accounting of total receipts and payments in the
entire central Government under the CGEGIS
 Payments and accounting functions of six (Central Government Employees Group Insurance
Departments in Ministry of Finance v iz. Scheme) and calculation & accounting of interest
Department of Economic Affairs, Department liability of GOI under both the savings fund and
of Expenditure, Department of Rev enue, Insurance fund components of this scheme.
Department of Investment and Public Asset
Management, Department of Financial Services  Provide support for the settlement of C&AG audit
and Department of Public Enterprises. Para.
 Financial reporting to the Chief Accounting  Responsible for transfer of funds to and from CFI
Authority (i.e. the Secretaries of the respective to Public Account. There are 14 such Funds in
Departments) and to the Controller General of the Department of Economic Aff airs, 2 in
Accounts. The monthly accounts, Appropriation Department of Revenue and 1 in Department of
Accounts and Finance accounts pertaining to six Expenditure.
100
 Formulation of detailed Accounting procedures loans, Back to Back Loans and B2B Loans to
in respect of the Funds maintained under Public states in lieu of GST Compensation shortfall)
Account of India. were released to various state governments.
 Settlement of the cases relating to combined 10.3.2 Internal Audit
pension, pro-rata pension, leave encashment,
leave salary and pension contributions, revision a. Internal Audit functions under the control and
of pre-2016 pension cases etc. of the absorbed supervision of the CCA and focuses on the Audit
employees of SPMCIL, after the corporatization of all the DDOs and subordinate offices including
of Mints and Presses, in coordination with the Banks who are handling Government Schemes
Corporate office of SPMCIL, field units and the such as Public Provident Fund, Special Deposit
administrative division in the Ministry. Scheme and Senior Citizen Deposit Scheme.
Thi s inv olv es appraisal, monitoring and
10.3 Highlights of important functions
ev aluati on of indi v idual schemes and
10.3.1 Monitoring system for transfer of funds from the assessment of adequacy and effectiveness of
Ministry of Finance to State Governments internal controls in general and soundness of
financial systems and reliability of financial and
 Under the Public Financial Management System
accounting reports in particular.
(PFMS) implemented under the aegis of CGA,
scheme wise funds released to the states are b. The BFI wing of the Internal Audit W ing is
visible on the PFMS portal. Under this system, mandated to check delayed remittances by
the sanctions are transmitted to Public Financial banks, of deposits under NSSF and impose
Management System (PFMS) Portal based on penalti es on such del ayed remit tances.
which Inter Government Advices (IGA) are Currently, banks are liable to pay penal interest
generated and sent to RBI, Nagpur in respect of for the entire period commencing from the date
28 States. IGA advice in respect of State
of receipt at receiving Branch of the Bank to the
Government of Sikkim and Delhi are sent to RBI,
date of settlement with RBI (CAS) Nagpur beyond
Delhi by special messenger.
the prescribed (T + 1) day (including holidays).
 Grants-in-aid amounting to Rs. 2,17,619.73/-
crore towards Externally Aided Projects, 10.4 Achievements during the year
Finance Commission Grants including Grants- 1) Enrolment of N.S.I. and Indian Economic
In-Aid for State Disaster Response Fund & Service into Employee Information System (EIS).
Compensation to State/UT Government for
Revenue Loss and Rs.502.74/- crore towards 2) Recovery of outstanding Penal Interest from
assistance to States from NDRF for calamities Banks: Audit of the banks handling PPF-1968,
of sev ere nature were released to State SCSS- 2004 & Sukanya Samridhi Account-2016
government through PFMS portal in Financial scheme is conducted by Office of CCA (Finance)
Year 2022-23. to check delayed remittances under these
 During the Financial Year 2022-23 (up to schemes. A total penalty of Rs. 18,90,81,098.37
30.11.2022) loans of Rs.54,020.46/- crore (Block have been imposed on banks so far.
Details of Delayed Penal Interest levied on the Banks for PPF, SCSS and SSA (as on 30/11/2022)
(Amount in Rs.)
PPF SCSS SSA Total
Outstanding as on 31/03/2021 106883091.62 120187586.22 4692425.00 231763102.84
Levied during 2021-22 49740.00 1328186.30 13144.40 1391070.70
Recovered during 2021-22 1203694.70 18823236.82 0.00 20026931.52
Contested and dropped during 2021-22 0.00 2770060.00 0.00 2770060.00
Total outstanding as on 31/03/2022 105729136.92 99922475.70 4705569.40 210357182.02
Levied during 2022-23 (upto 30/11/2022) 13608748.73 40610096.37 14583694.18 68802539.28
outstanding as on 30/11/2022 119337885.65 140532572.07 19289263.58 279159721.30
Recovered during 2022-23 (upto
30123576.32 58849444.61 26491.00 88999511.93
30/11/2022)
Contested and dropped during 2022-23
0.00 457700.00 621411.00 1079111.00
(upto 30/11/2022)
Net outstanding as on 30/11/2022 89214309.33 81225427.46 18641361.58 189081098.37
101
Name of the Schemes Public enterprises will be looked after by AS &

FA, Ministry of Finance. The PAO (DPE) under
 PPF (Public Provident Fund-1968) Ministry of Finance was set up and PAO functions
 SCSS (Senior Citizen Saving Scheme-2004) commenced w.e.f. 01.10.2021 in a record time
of 3 months.
 SSA (Sukanya Samridhi Account-2016)
9) INDRAA (Internal Debt and Recovery Advanced
3) PFMS has been implemented in all Pay and Application) software has been developed and
Accounts offices of the Ministry and all payments is runni ng smoothly in the Ist phase of
are being made through PFMS. Use of cheques implementation.
as a mode of payment has been more or less
eliminated. All payments are now being made 11. CENTRAL PENSION ACCOUNTING
electronically. e-bill has been introduced in the OFFICE
PAOs of Ministry of Finance. The implementation
of PFMS coupled with extensive training to the 11.1 The Central Pension Accounting Office (CPAO)
concerned officials and peer to peer knowledge was established w.e.f. 1st Jan, 1990 for Payment and
sharing has resulted in less adaptation time, more Accounting of Central (Civil) Pensioners and Pension to
organisational efficiency, less response time in Freedom Fighters etc. CPAO is a subordinate office
payments, improved record keeping/tracking under the Office of the Controller General of Accounts,
through digital logs and more transparency. Department of Expenditure, Ministry of Finance. It has
been entrusted with the responsibility of administering
4) This Department has moved to Government e- the scheme of payment of pension to Central Government
Market Place for all the procurements. Officials (Civil) Pensioners including UTs, Delhi Administration
were prov i ded training on GeM and the except Railways, P&T and Defense through authorized
procurements are being made through GeM. The Banks. Its core functions are:
procurement/process has now become more
streamlined, efficient and transparent. This has  Issue of Speci al Seal Aut horit ies(SSAs)
considerably reduced the hurdles in the authorizing payment of pension in fresh as well
procurement process, providing the purchasing as revision of pension cases to the CPPCs
department with more choices and better (Central Pension Processing Centers) of pension
recordkeeping as the bills are in digital format. disbursing Banks;
5) All pension cases of this department are being  Preparation of Budget for the Pension Grant and
processed through the "Bhavishya Portal" accounting thereof;
resulting in the expeditious processing of pension  Audit of CPPCs of pension disbursing Banks;
related works. The check points in the "Bhavishya
Portal" ensures procedural accuracy of the  Maintenance of Data Bank of Central Civil
pension cases. Pension cases of Pre-2016 are Pensioners containing all details indicated in the
being revised electronically on the e-portal PPOs and Revision Authorities;
eppo.nic.in/revision.
 Handle the issues raised by Central Civil
6) All work rel ated to f eeding of budget, Pensioners;
supplementary, re-appropriation and surrender
orders for each grant along with mapping of  Payment of Additional Relief to the Pensioners/
heads to each scheme on PFMS has been Family Pensioners covered under National
successf ully done f or the Financial Year Pension System-Additional Relief Scheme (NPS-
2021-22. AR) (as an interim arrangement). The Pension
Rules for National Pension System pensioner
7) The Aut omati on of Com pilat ion and have been notified in March, 2021. The process
Consolidation of Monthly Accounts on PFMS was of migration of legacy cases & Fresh Pension
started from the Month of December, 2020 cases of old Pension Scheme Pensioners is
wherein the PAOs and Pr.AO are able to submit under process under the guidance of CGA.
the accounts through their respective Digital
Signature on PFMS. 11.2 Achievements: The primary function of CPAO is
to issue SSAs to the CPPCs of Banks in fresh and revision
8) Vide Gazette Notification No. S.O. 2718(E) dated of pension cases. In the Financial year 2022-23 (as on
06.07.2021 issued by Government of India, 24th Nov, 2022), highlights are as follows: -
wherein the Department of Public Enterprises
has been made part of the Ministry of Finance  32,456 and 33,857 authorities were issued in
and the finance advice charge of Department of fresh and revision of pension cases respectively.
102
 Projection or estimate for the remaining period:- writing, debates, paragraph writing etc. have
been centered around "Social, Cultural,
(i) Fresh Pension Case- 16,000 (Approx.)
Economic and Scientific progress of the
(ii) Revision of pension case- 17,000 (Approx.) country since independence."
11.3 To endeavor and improve the ease of living of 11.4 e-Governance Initiatives of CPAO
pensioners and to bring about transparency in the pension
authorization process, the recent initiatives taken by 11.4.1 CPAO is a fully computerized office. A wide range
CPAO are as follows: of soft wares/packages hav e been dev eloped/
implemented in this office for streamlining pension
a) Pension Adalats: CPAO is organizing 'Pension
authorization, accounting, Grievance Redressal etc.
Adalat' every year since 2018. However, due to
which include:-
the Covid pandemic, no Pension Adalat was
organized in 2021. For the year 2022, it was held (A) Pension Authorization Retrieval & Accounting
on 16th March, 2022 through video conferencing. System (PARAS):- All the pension processing
More than 500 pensioners attended each of the activities from receipt to dispatch are managed
Pension Adalat in 2018 & 2019. Due to the Covid
through PARAS. The web interface of PARAS
Pandemic, the Pension Adalat was organized
provides the related information to pensioners;
through video conferencing facility in 2020 &
PAOs/Ministries & Banks. About 15.47 lakhs
2022. Region wise Pension Adalats shall be
organized by CPAO to increase the outreach to Central Civil pension cases have been processed
Pensioners spread across country. by CPAO through this software thereby creating
digital database of these pensioners. Various
b) Migration of UT Ladakh Pensioners: Subsequent MIS reports are also generated by this software
to the creation of Union Territoty of Ladakh for the purpose of monitoring.
(without Legislature), CPAO has successfully
migrated the data of pensioners from Treasury (B) Database Management Software:- Software for
system to CPAO in a time bound manner; and comparison of banks' database with CPAO's
their pensions are now routed through CPAO via database of pensioners has been developed and
electronic system. exception reports are generated by it to clean up
c) Payment of Gallantry Awards through CPAO: the database and establish a completely
Recently, CPAO has started an online system to matching database.
pay Gallantry Awards/Police medal Awards (C) Electronic Pension Payment System (e-PPO/e-
through banks along with the pension of the
SSA System): CPAO has been making an effort
awardee. Earlier, the same was paid by the
to ensure that pension authorization process
concerned office. This issue was pending since
long & has led to considerable reduction of delay becomes completely paperless. At Present, credit
in payment. of the first pension into the account of pensioner/
family pensioner is carried out immediately on
d) Training to CPPC's officers: In current year, the basis of e-PPO and e-SSA received from
CPAO has started a new initiative to provide CPAO without waiting for the physical copy of
training for hand holding of bank officers for the same. This initiative has led to a significant
smooth disbursal of pension. First such training reducti on in delays experi enced by the
by CPAO was held in SBI training Centre Noida
pensioners/family pensioners in first credit of
in July 2022.
pension.
e) AzadiKaAmritMahotsav: The following activities
(D) Facilitation Centres along with Token Generation
hav e been undertaken by CPAO to
System: In Sep, 2022, a Pensioner Facilitation
commemorate "AzadiKaAmritMahotsav":-
Centre having an automated token generation
i. W ide publicit y of the system has been established to facilitate
"AzadiKaAmri tMahotsav " am ong the pensioners visiting CPAO. The token wise
off icers/staffs has been done through facilitation request/help request is generated for
banners, circulars and website of CPAO. solving the request & helping in smooth disbursal
of pension. The generated token report is
ii. The theme of various events under "Hindi monitored on regular basis. CPAO is committed
Pakhwada-2021 & 2022" such as essay to provide the best services to the pensioners.
103
Annexure-I
State-wise allocation and releases under ‘Scheme for Special Assistance to States for Capital
Expenditure’ in 2020-21 and 2021-22
(Rs. in crore)
Sl. 2020-21 2021-22
States
No. Approved Released Approved Released
1 Andhra Pradesh 688.00 688.00 501.7900 501.7900
2 Arunachal Pradesh 232.97 232.97 490.2700 371.1900
3 Assam 450.00 450.00 600.0000 600.0000
4 Bihar 843.00 843.00 1246.5000 1246.5000
5 Chhattisgarh 286.00 286.00 423.0000 423.0000
6 Goa 97.66 97.66 111.0400 111.0400
7 Gujarat 285.00 285.00 432.0000 432.0000
8 Haryana 91.00 91.00 135.0000 135.0000
9 Himachal Pradesh 533.00 533.00 800.0000 800.0000
10 Jharkhand 277.00 277.00 409.5000 246.0000
11 Karnataka 305.00 305.00 451.5000 451.5000
12 Kerala 163.00 81.50 238.5000 238.5000
13 Madhya Pradesh 1320.00 1320.00 1533.0520 1512.3610
14 Maharashtra 514.00 514.00 783.0000 771.7300
15 Manipur 317.16 317.16 288.4695 212.8495
16 Meghalaya 200.00 200.00 300.0000 281.2000
17 Mizoram 200.00 200.00 299.9900 299.9900
18 Nagaland 200.00 200.00 300.0000 300.0000
19 Odisha 471.50 471.50 561.0000 517.1200
20 Punjab 296.50 296.50 223.5000 223.5000
21 Rajasthan 1002.00 1002.00 747.0000 692.4100
22 Sikkim 200.00 200.00 300.0000 300.0000
23 Tamil Nadu 0.00 0.00 505.5000 505.5000
24 Telangana 358.00 358.00 260.9371 214.1371
25 Tripura 300.00 300.00 300.0000 118.5400
26 Uttar Pradesh 976.00 976.00 2224.5000 1483.0000
27 Uttarakhand 675.00 675.00 528.6301 263.9201
28 West Bengal 630.00 630.00 933.0000 933.0000
Total 11911.79 11830.29 15927.6787 14185.7777
104
105
Annexure-III
Releases to the States under Special Assistance
(Rs. in crore)
Sl. 2022-23
States 2018-19 2019-20 2020-21 2021-22
No. (30.11.2022)
1 Andhra Pradesh 15.81 350.00 350.00 2785.39 478.8830

2 Arunachal Pradesh 309.73 328.77 500.0000
3 Assam
4 Bihar 739.47 195.74 250.00
5 Chhattisgarh
6 Goa 150.00
7 Gujarat 431.00
8 Haryana
9 Himachal Pradesh
10 Jammu & Kashmir 85.00 200.00
10 Jharkhand
11 Karnataka
12 Kerala
13 Madhya Pradesh
14 Maharashtra
15 Manipur
16 Meghalaya
17 Mizoram
18 Nagaland 226.80 219.15
19 Odisha
20 Punjab
21 Rajasthan 146.00
22 Sikkim 150.00
23 Tamil Nadu
24 Telangana 450.00 450.00
25 Tripura 1500.00 698.70
26 Uttar Pradesh 1200.00
27 Uttarakhand 8.00 375.00 405.00
28 West Bengal
Total 4680.81 1623.70 1948.66 3766.39 978.8830
106
Annexure-IVA
Annexure-IVB
Annexure-IVC
107
108
Chapter - III Department of Revenue III
1. Organisation and Functions xvi. Foreign Exchange Management Act, 1999.
1.1 The Department of Revenue functions under the xvii. Union Territory Goods & Services Tax Act, 2017
overall direction and control of the Secretary (Revenue).
xviii. Goods & Services Tax (compensation to States)
It exercises control in respect of matters relating to all
Act, 2017
the Direct and Indirect Union Taxes through two Statutory
Boards, namely, the Central Board of Direct Taxes xix. Central Goods & Services Tax Act, 2017
(CBDT) and the Central Board of Indirect Taxes and
xx. State Goods & Services Tax Act, 2017; and
Customs (CBIC). Each Board is headed by a Chairman
who is also ex-officio Special Secretary to the Government xxi. Integrated Goods & Services Tax Act, 2017
of India. Matters relating to the levy and collection of all
the Direct taxes are looked after by the CBDT whereas 1.3 The Department looks after the matters relating
to the above-mentioned Acts through the following
those relating to levy and collection of Goods and Service
attached/subordinate offices:
Taxes (GST), Customs and Central Excise duties, Service
Tax and other Indirect taxes fall within the purview of the i. Commissionerates/Directorates under Central
CBIC. The two Boards were constituted under the Central Board of Indirect Taxes and Customs;
Board of Revenue Act, 1963. Each Board has a
ii. Commissionerates/Directorates under Central
sanctioned strength of 6 (six) members.
Board of Direct Taxes;
1.2 The Department of Revenue administers the
iii. Central Economic Intelligence Bureau;
following Acts:
iv. Directorate of Enforcement;
i. Income Tax Act, 1961;
v. Central Bureau of Narcotics;
ii. Black Money (Undisclosed Foreign Income &
Assets) Imposition of Tax Act, 2015 vi. Chief Controller of Factories;
iii. Benami Transactions (Prohibition) Act, 1988; vii. Appellate Tribunal under SAFEMA;
iv. Chapter-VII of Finance (No.2) Act, 2004 (Relating viii. Income Tax Settlement Commission;
to Levy of Securities Transactions Tax) ix. Customs and Central Excise Settlement
v. Central Excise Act, 1944 and related matters; Commission;
vi. Customs Act, 1962 and related matters; x. Customs, Excise and Service Tax Appellate
Tribunal;
vii. Central Sales Tax Act, 1956;
xi. Authority for Advance Rulings (for Income Tax
viii. Custom Tariff Act, 1975 and Central Excise, Customs & Service Tax);
ix. Central Excise Tariff Act 1985 xii. National Committee for Promotion of Social and
Economic Welfare;
x. Narcotic Drugs and Psychotropic Substances
Act, 1985; xiii. Com petent Authorities appointed under
Smugglers and Foreign Exchange Manipulators
xi. Prevention of Illicit Traffic in Narcotic Drugs and (Forfeiture of Property) Act, 1976 & Narcotic
Psychotropic Substances Act, 1988; Drugs and Psychotropic Substances Act, 1985;
xii. Smugglers and Foreign Exchange Manipulators xiv. Financial Intelligence Unit, India (FIU-IND);
(Forfeiture of Property) Act, 1976;
xv. Adjudicating Authority under Prevention of Money
xiii. Indian Stamp Act, 1899 (to the extent falling within Laundering Act.
jurisdiction of the Union);
xvi. Revision Application Unit.
xiv. Conserv ation of Foreign Exchange and
Prevention of Smuggling Activities Act, 1974; 1.4 A comparison of the collection of Direct and
Indirect taxes for the period of F.Y. 2021-22 and F.Y.
xv. Prevention of Money Laundering Act, 2002; 2022-23 (provisional) is as follows:
109
(Rs. in crore)
S. Nature of Taxes Amount collected
No. 2021-22 2022-23
(Provisional)
(Up to Nov. 2022)
1. Corporate Income Tax* 7,12,037.33 4,49,340.94

2. Personal Income Tax (excluding STT & WT)* 6,73,413.50 4,09,781.92
3. Other Direct Taxes (WT, STT, etc.)* 26,971.62 18,347.47
4. Total Direct Taxes (1+2+3)* 14,12,422.45 8,77,470.33
5. GST (CGST, IGST & Comp. Cess)** 6,99,239 5,57,450
6. Non-GST (Customs, Central Excise & Service 5,91,548 3,62,080
[Tax Arrears])**
7. Total Indirect Taxes (5+6)** 12,90,787 9,19,530
* Source: Pr. CCA (CBDT)
** Source: Pr. CCA (CBIC), DG-Systems (CBIC)
1.5 The details of representation of SCs, STs and regions headed by Principal Chief Commissioners of
OBCs are at Annexure-I. Income Tax (Pr. CCIT), who are entrusted with the
supervision and collection of direct taxes and taxpayer
1.6 The details of representation of persons with services. The Directors General of Income Tax
disabilities are at Annexure-II. (Investigation) supervises the investigation functions and
1.7 The details of AT Ns in respect of audit deal with tax evasion and unearthing unaccounted
observations are at Annexure-III. income. The Director General of Income Tax (Intelligence
and Criminal Investigation) supervises the intelligence
1.8 An Organisation Chart of Department of Revenue gathering and investigation in tax related crimes. The
is given at Annexure-IV. Pri ncipal Chief Commi ssioner of Income Tax
(Exemptions) supervises the work of exemption and non-
2. CENTRAL BOARD OF DIRECT TAXES profit organizations/ trusts across the country and the
2.1 Organization and functions Pri ncipal Chief Commi ssioner of Income Tax
(International Taxation) supervises the work in the field
The Central Board of Direct Taxes (CBDT), of International Tax and Transfer Pricing.
created by the Central Boards of Revenue Act 1963, is
the apex body entrusted with the responsibility of The Principal Chief Commissioners of Income
administering direct tax laws in India. CBDT is the cadre Tax are assisted by Chief Commissioners, Principal
controlling authority for the officers of the Indian Revenue Commissioners and Commissioners of Income Tax and
Service and controlling authority for the officials of the Principal Directors General/ Directors General of Income
Income Tax Department (ITD). The CBDT consists of a Tax are assisted by Principal Directors/ Additional
Chairman and six members and is assisted by the Directors General of Income Tax within their jurisdictions.
following Directorates: Commissioners of Income Tax posted as Commissioners
of Income Tax (Appeals) perform appellate functions.
i) Directorate of Income Tax (Administration & Tax
Payer Services) 2.2 Media Centre (M&TP)
ii) Directorate of Income Tax (Systems) I. Dissemination of information related to Direct

Taxes: The Pr. CIT (M&TP), CBDT is in-charge
iii) Directorate of Income Tax (Training) of the Media Centre, set up in the CBDT in August
iv) Directorate of Income Tax (Human Resource 2006. The Media Centre disseminates information
Development) of public value relating to Direct Taxes through
the Print and Electronic Media. During the year
v) Directorate of Income Tax (Vigilance) so far (from 01.04.2022 to 30.11.2022) 54 Press
Releases have been issued to bring important
vi) Directorate of Income Tax (Legal & Research) decisions, developments and issues related to
ITD is the subordinate organization of the CBDT Direct Tax to the public notice and to highlight
having jurisdiction across the country. It is divided into 18 different achievements of the CBDT and ITD.
110
Department of Revenue III
II. Use of Social Media in spreading awareness VDA. Gifting of VDA will also be taxed in hands
and amplifying messaging around Azadi Ka of recipient. Thus, clarity in taxation of VDA has
Amrit Mahotsav and Special Campaign 2.0: been provided.
Awareness about all the major initiatives of the
Department, including Azadi Ka Amrit Mahotsav II. Updated return: To increase ease of voluntary
and Special Campaign 2.0 was spread through compliance and reduce litigation, a new provision
focused and concerted messaging through is introduced in the Income Tax Act, 1961 (“the
Twitter. The national and the regional handles Act”), facilitating the taxpayer to be able to update
altogether put out 81 Tweets (with a total of 221 his return anytime within two years from the end
pictures/creatives and 13 videos) around Special of the relevant assessment year. A taxpayer can
Campaign 2.0, which garnered a total of file an updated return by voluntarily admitting
11,49,625 Impressions. The events held as part omissions or mistakes and paying an additional
of the celebration of Azadi Ka Amrit Mahotsav tax as applicable. With the long strides that ITD
were also given wide dissemination through has made in field of technological advancement
messaging on Twitter. In all, 243 tweets were put and data sharing, there is now a huge amount of
out spreading awareness about the events information and data available in respect of
celebrating Azadi Ka Amrit Mahotsav, which taxpayers. A formal mechanism of first passively
registered 11,78,952 impressions. sharing information through AIS and then actively
sharing through e-Verification scheme has been
2.3 Direct Tax Collection recently enabled. Non-intrusive voluntary
compliance through this two-pronged approach
The Direct Tax Collection as on 30th November, is devised to enable access to a taxpayer of
2022 continue to register a steady growth. Direct Tax information available with the Department and
Collections upto 30.11.2022 show that gross collections to nudge him to correct omissions/errors/
are at Rs. 10,93,385 crore* which is 29.66% higher than oversights allowing updating of this return of
the gross collections for the corresponding period of last income.
year. Direct tax collections, net refunds, stands at Rs.
8,77,470 crore which is 22.78% higher than the net III. In order to provide a level playing field between
collections for the corresponding period of last year. co-operative societies and companies by
This collection is 61.79% of the Budget Estimates (BE) removing the existing disparity in the rate of
for Direct Taxes for the F/Y 2022-23. Minimum Alternate Tax payable by them, the rate
at which the cooperative societies are required
So far as the growth rate of Corporate Income to pay Alternate minimum tax has been
Tax (CIT) and Personal Income Tax (PIT) in terms of reduced to fifteen per cent to bring it at par
gross revenue collections is concerned the growth rate with the corporate. Further, the surcharge on co-
of CIT is 27.66% while that for PIT (including STT) is operative societies has been reduced from
31.97%. After adjustment of refunds, the net growth of present 12% to 7% for those having total income
CIT collections is 27.09% and that in PIT collections is of more than 1 crore upto 10 crores.
19.29% (PIT only)/18.65% (PIT including STT).
IV. It may be pertinent to note that the introduction
Refunds amounting to Rs. 2,15,915 crore have of the concessional taxation regime almost
been issued during 30.11.2022 which is 67.82% higher coincided with the onset of the COVID-19
than refund issued during the same period in the pandemic and the subsequent Government
preceding year. imposed lockdowns, Further, the second wave
(*Source: Pr.CCA, CBDT) of the pandemic also struck the nation in the first
quarter of FY 2021-22. The cumulative impact
2.4 Some Recent Legislative Changes in Direct of the persistence of the COVID-19 pandemic
Tax Laws has resulted in delay in setting up of new
I. Provision for taxation of virtual digital asset domestic companies and the commencement of
(VDA): A special provision for taxation of VDA manufacturing or production. In view of the
has been provided wherein income from transfer above, Finance Act, 2022 has extended the
of VDA will be taxed at 30%. No deduction other outer date o f commencement of
than cost of acquisition shall be allowed while manufacturing or production of an article or
computing such income. No loss is to be set off thing for 15% concessional tax rate under
against income from such transfer. Further, loss section 115BAB of the Act from 31st March,
from transfer of VDA cannot be set off against 2023 to 31st March, 2024.
any income. Tax Deduction at Source (TDS) at V. TDS on benefit or perquisite: A person
the rate of 1% has been provided on transfer of responsible for providing any benefit or perquisite
111
to a resident carrying on business or profession treatment of himself or family member from

is required to deduct tax at the rate of 10 % of an employer or from any person for treatment
such benef it or perquisite if the v alue or of COVID-19 during financial year 2019-20 and
aggregate of such benefit or perquisite exceeds subsequent years. The aim of this exemption is
Rs. 20,000 during the financial year. This is to to provide relief to taxpayers who suffered on
ensure that such benefit/perquisites are brought account of COVID-19 and had to incur sum for
to tax. medical treatment of COVID-19 after taking help
from employer or any other person.
VI. Provisions pertaining to bonus stripping and
dividend stripping have been made applicable XIII. In order to provide relief to the family members
to securities and units of business trusts and of taxpayers who have lost their lives due to
Alterative Investment Funds. Covid-19, income-tax exemption has been
provided to ex-gratia payment received by family
VII. Concessional tax rate of 15% on dividend members of a person from the employer of such
income received by Indian company from person or from other person on the death of the
specified foreign company has been withdrawn person on account of Covid-19 during FY 2019-
w.e.f. assessment year 2023-24. 20 and subsequent years. The exemption is
VIII. In order to widen and deepen the tax-base, it has allowed without any limit for the amount received
been provided to make the provisions relating to from the employer and the exemption is limited
deduction/collection at higher rates for non-filers to Rs. 10 lakh in aggregate for the amount
received from any other persons.
more stringent by reducing the time period for
which no return has been filed from 2 years XIV. The existing provisions of the Act allow for
to 1 year. deduction of hundred per cent of profit and gains
of eligible start-ups for three consecutive years
IX. In order to giv e eff ect t o busi ness
out of ten years , beginning from the year of
reorganisation, amendments were brought in
incorporation, at the option of the assessee.
to provide that the pending assessment or
However, due to the circumstances of Covid-19
reassessment of the predecessor entity shall there had been delay in setting up of such eligible
be deemed to be carried out on the successor businesses. So to lend a supporting hand to
entity. Further, it has also been provided that these start-ups, the period of incorporation of
modified return shall be filed by the successor the eligible start-up has been extended to
entity and the Assessing Officer has been 31.03.2023.
enabled to i ssue noti ce of dem and, in
consequence to such reorganisation. XV. Widening the scope of reporting expenditure
by entertainment industry: the scope of
X. Avoidance of repetitive appeals on the same reporting of payment above Rs. 50,000 has been
question of law: Taking forward the policy of expanded to cover person involved in specified
litigation management, a new provision (section activities such as event management, production
158AB) is made under the Act wherein if a of programs for telecast on television or over the
question of law in the case of an assessee is top platforms etc, other performing arts, sports
identical to a question of law pending in appeal event management etc. in addition to film
before the jurisdictional High Court or the production.
Supreme Court in his case or in any other case,
the filing of further appeal to the Appellate XVI. Parity between employees of State and
Tribunal or the jurisdictional High Court in the Central government: To remove disparity
case of the assessee shall be deferred till such between Central government employees and
State government employees with respect to
question of law is decided by the relevant Court
deduction available on employer contribution to
subject to certain conditions.
the National Pension System (NPS) Tier-I
XI. In v iew of t he gov ernm ent’s pol icy of Account, the tax deduction limit on employer
decriminalization, prov isions hav e been contribution has been increased from existing
introduced to make initiation of prosecution 10% to 14% of salary in NPS Tier-I Account for
under section 276AB of the Act ineffective State Government employees as well.
from 1st April, 2022 as the underlying offences XVII. Faceless Schemes: The procedures for faceless
under this section were omitted in the Act in 2002. assessment, appeal and levy of penalty under
XII. Income-tax relief has been provided to the the Income-tax Act have been streamlined by
amount received by a taxpayer for medical optimizing use of resources through functional
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specialization and streamlining the procedures (iii) Ext ension of time limits f or v ari ous
to enable efficient implementation. compliances under the Act in view of
difficulties faced by the taxpayers due to
XVIII. Streamlining of provisions related to taxation
severe covid pandemic and in electronic
of income of charitable institutions: The
filing of various reports of audit. The ITA
provisions related to charitable institutions have
division of the Central Board of Direct Taxes
been streamlined by aligning the provisions of
was continuously monitoring the difficulties
two regimes of exemption, streamlining the
faced by the taxpayers in view of severe
provisions related to violations of different
cov id pandemi c and made tim ely
provisions and providing clarifications where
intervention to reduce the compliance
there were ambiguities.
burden of the taxpayers by exercise of its
2.5 ITA Division powers under section 119 of the Act as and
when required. In this regard, Circular 01/
ITA Division of Central Board of Direct Taxes is
2022 dated 11.01.2022 was issued
entrusted with the administration and interpretation of
regarding extension of time limits for
specified sections of the Act. The prominent ones being
compliances under the Act.
those pertaining to definitions, exemption u/s 10 of the
Act, salaries, house property deduction under chapter (iv) Further, on consideration of difficulties faced
VIA, profits and gains of business or profession, TDS by the taxpayers in filing various Audit
and capital gains under the Act. It is also entrusted with Reports and Income Tax Returns for AY
the responsibility of assigning jurisdiction to various 2022-23, ITA Division has issued Circular
Income-tax authorities. ITA Division also deals with the No.19/2022 dated 30.09.2022 and Circular
issues related to collection of Direct Taxes, allocation of No. 20/2022 dated 26.10.2022 extending the
Budget Estimates targets and collection of demand. due date for compliances under the Act.
I. A brief note on the significant works 2. Revised Instruction for constitution and
1. The following measures were taken to avoid functioning of Local Committees to deal with
genuine hardship and ease compliance taxpayers’ grievances due to high-pitched
burden of the taxpayers: Scrutiny Assessment:
(i) Condonat ion of delay under sect ion In line with CBDT’s policy and commitment
119(2)(b) of the Act in the filing of Form 10- towards providing enhanced taxpayers’ services
IC for Assessment Year 2020-21 and reduce taxpayers’ grievances, CBDT has
issued revised Instruction for constitution and
With a view to avoid genuine hardship to functioning of Local Committees to deal with
the domestic companies in exercising the taxpayers’ grievances arising out of high-pitched
option u/s 115BAA of the Act, Circular No. Scrutiny Assessment through F.No.225/101/
06/2022 dated 17.03.20222 was issued 2021-ITA-II, dated 23rd April, 2022.
condoning delay in filing of Form 10-IC as
per Rule 21AE of the Rules for the previous II. Matters pertaining to Start-Ups
year relevant to A.Y 2020-21 in cases where
In line with the Start up India Initiative, in order to
the condition specified in Circular are
provide hassle free tax environment to the Startups, CBDT
satisfied.
issued intimation to Startups under clause (ii) of the
(ii) Condonat ion of delay under sect ion provision to Section 56(2)(viib) of the Act. 1727
119(2)(b) of the Act in the filing of Form 10A intimations were issued in this period.
With a view to avoid genuine hardship, the This charge runs the Startup Cell created at
Board, in exercise of the powers conferred CBDT for handling redressal of grievances of Startups
under section 119(2)(b) of the Act, condoned and addressing its tax related issues. During this period,
the delay upto 25.11.2022 in filing Form 45 grievances were solved and disposed of.
No.10A under sub-clause (i) of clause (ac)
of sub-section (1) of section 12A /clause (i) 2.6 Foreign Tax and Tax Research Division
of first proviso to clause (23C) of section 10/ A. India’s Active participation in work related to
clause (i) of first proviso to sub-section 5 of addressing tax challenges arising from the
section 80G / fifth proviso to sub-section 1 Digitalization of Economy
of section 35 of the Act, which was required
to be made electronically on or before I. OECD/ G20 Inclusive Framework (IF) on Base
31.03.2022. Erosion and Profit Shifting (BEPS) (consisting
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of 141 jurisdictions) has been working on finding taxation and enhance economic cooperation
a solution to address the tax challenges arising between countries) with the present international
from digitalization of economy under the mandate standards and the positions taken by India under
of G20. The work explores technical issues to MLI. The key developments pertaining to DTAAs
be resolved through two main pillars: during FY 2022-23 are as follows:
 Pillar One focuses on the allocation of taxing
 With an endeavour to broaden India’s treaty
rights and seeks to undertake a coherent
network with South American countries,
and concurrent review of the profit allocation
India had successfully negotiated and
and nexus rules.
signed a DTAA with Chile. Ratification from
 Pillar Two focuses on the remaining BEPS Chile has been received this year. The
issues and seeks to develop rules that would process for notifying the said agreement is
provide jurisdictions with a right to “tax back” under way.
where other jurisdictions have not exercised
 The Hon’ble External Affairs Minister, on
their primary taxing rights, or the payment
24th August, 2022 during his visit to Brazil
is otherwise subject to low levels of effective
has signed the Protocol in the India-Brazil
taxation. It provides for tax rules that will
DTAA. The process of ratification is to be
ensure that large and profitable Multinational
initiated after receipt of original Protocol from
Enterprises (MNEs) pay a certain minimum
the Mission/MEA.
amount of tax on their income.
 The Agreement f or the Exchange of
B. Negotiation of Tax Treaties – Multilateral
Information and Assistance in Collection with
Instrument (MLI), Double Taxation Avoidance
respect to Taxes (AEI & ACT) was signed
Agreemen ts (DTAAs) and Amend ing
between the Government of India and the
Protocols:
St. Vincent & the Grenadines on 19th May
I. The Base Erosion & Profit Shifting (BEPS) project 2022.
of OECD/G-20 for addressing tax avoidance by
 Negotiations are being pursued with Algeria
Multinational Enterprises included Action 15, on
and Senegal to finalise the DTAA.
the BEPS outcomes and minimum standards that
all countries have agreed on. This is being  Negotiations are being pursued with Egypt
implemented through the Multilateral Convention to finalise the revision of the existing DTAA.
for Implementation of Tax Treaty Related
 Negotiations to bring the India-Mauritius
Measures to Prevent Base Erosion and Profit
DTAA on par with the BEPS Minimum
Shifting, also called as Multilateral Instrument
Standard have been completed. The internal
(MLI).
processes to ratify the amending Protocol
II. India actively participated in the BEPS project are underway.
and subsequent to the ratification of the MLI on
C. Coordination with other Multilateral Agencies
25.06.2019, the provisions of the MLI were
notified vide Gazette Notification S.O.2887(E), i. CIAT
dated 9th August 2019. The MLI entered into
India is an Associate member of the Center for
force in India from 01st October 2019. India had
Inter American Tax Administration (CIAT), a
notified 93 tax treaties in its final MLI Position.
multilateral organization focused on cooperation
As on 30th November 2022, 65 treaty partners
between the tax administrations of different
have notified their tax treaty with India in their
jurisdictions to jointly combat international tax
respective MLI positions. As a result, the MLI has
evasion. To achieve this goal, CIAT organizes a
modified/is expected to modify 65 tax treaties.
range of activities, including studies, workshops,
III. Steps have been taken for bilateral revision of and seminars, where tax administrators can
existing treaties to make them more relevant & share their suggestions, practi ces, and
updated by incorporating the provisions, which experiences. Through these activities, CIAT aims
will align the existing treaties (Double Tax to support tax administrators in their efforts to
Av oidance Agreements to prev ent double promote tax compliance and prevent tax evasion.
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The 2022 CIAT Technical Conference of the Africa): BRICS is an important multilateral block
Inter-American Centre of Tax Administration that seeks to represent the interests of the
(CIAT) was held on 04th-06th October, 2022 in developing countries. China held the rotating
Grande, Spain. The Conference was in in- chairmanship of BRICS for the year 2022 under
person event with the central theme of “The
which Tax Experts and Tax Heads meetings were
Spaniards Tax Administration: Information and
knowledge management to improv e the held in November, 2022. In the Tax Expert’s
prevention and fight against fraud”. As part of meeting, experts from the Direct Taxes participated
the speaker sessions, the head of the and in the Tax Heads meeting, the Revenue
delegation from India, Chairman, CBDT, made Secretary (designate) represented India. In the Tax
a presentation on “Tax Services; Access of Heads meetings, the best Practices Reports of the
information to taxpayers and updated return. BRICS nations were launched which India
Further, a CIAT seminar on “The CIAT Centre witnessed. In the said report, two best practices
for Technological Innovation and Advanced from India, namely, “AIS and updating of reports”
Analytics applications, databases, studies and and “Faceless Tax administration” were also
products generated and under development” included.
was held in Granada, Spain on 7th October,
2022.The seminar saw session on Artificial E. India’s Collaboration with Forum on Tax
Intelligence and tax Administration: New CIAT Administration (FTA)
tools like CIAT Public Database-DIP+, toolkit
I. Forum on Tax Administration is a forum for
GAAR etc; and Ethics in the Tax Administration.
co-operation between revenue bodies and was
The seminar was attended by Chairman, CBDT.
created in July 2002 at the initiative of Committee
ii. CATA on Fiscal Affairs (CFA) of the OECD, with the aim
India has been a member of the of promoting dialogue between tax administrations
Com monwealth Association of Tax and of identifying innovative tax administration
Administrators (CATA) since 1979. As a practices to increase efficiency, effectiveness and
member of CATA, India has access to a range f airness of tax administration and reduce
of benef its, incl uding annual t echni cal compliance burdens. Being a member of the FTA
workshops, high-quality training programs for and its Bureau, India is an active participant in the
tax officials, in-country training programs
work programme of the FTA.
tailored to the specific needs of members, a
quarterly newsletter, consultancy services, II. India has been actively participating in the FTA
research facilities, and information on request. projects such as:
CATA’s activities aim to support and improve
the capabilities of tax administrators in its  Effective taxation of platform sellers in sharing
member countries. & gig economy.
India, in association with CATA, have facilitated  Effective use of information received under
successfully hosting of the ‘International Common Reporting Standard (CRS).
Sem inar on the Modern Techniques of
Investigation and Intelligence Gathering’ at  Online Cash registers.
National Academy of Direct Tax (NADT),
 Expansion of Common Transmission System
Nagpur in 2017, 2018 and 2020 and in July,
2022, it was held virtually. During 2022, India (CTS).
has participated in 42nd Technical conference  Tax Debt Management.
held in-person in Nigeria in the month of
November, 2022 as well.  Joint International Task force on Shared
Intelligence and Collaboration (JITSIC) etc.
D. Cooperation with BRICS Countries on Tax
Matters Under current work programme of the FTA,
Co-operation with BRICS countries (Brazil, India is a member of project group for
Russia, India, Ch ina and So uth following projects:
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 Small and Medium sized Enterprises capacity building and provide innovativ e
(SMEs): improving tax compliance and approaches to technical assistance, sharing of
reducing burdens. expertise and best practices, development and
application of technological innovations in the
 BEPS Impacts and inputs.
fields of taxation and anti-corruption.
 Tax administration 2030.
2.7 Investigation Division
III. India has been regularly participating in these
During the F inancial Year 2021-22, the
projects through emails and virtual meetings and Government has taken several steps, by way of policy-
wherever required, comments/inputs are being level initiatives and more effective enforcement actions
sent to the FTA Secretariat from time to time. on the ground to tackle the issue of black money. These
During the year, in-person meetings of the FTA steps include creation of more advanced systems and
Bureau and the FTA Plenary were held in May, processes with due focus on capacity building and greater
2022 and September, 2022. The Revenue use of information technology.
Secretary attended both the FTA Bureau and the
Plenary meetings, being the FTA Commissioner i. Search and seizure and survey actions:
from India. Further, India is now a part of the During F.Y. 2021-22, search and seizure actions
Senior W orking Group of the FTA Tax were carried out against 686 groups leading to
Adm inist ration 3.0 Project, deal ing with seizure of assets worth over Rs. 1150 crores.
digitalisation/digital transformation of tax Whereas, during F.Y. 2022-23* (upto August,
administrations, and attended the first virtual 2022), search and seizure actions were carried
meeting of the Senior W orking Group in out in 227 groups. The actions in these cases
November, 2022. led to seizure of assets worth over Rs. 790 crores.
F. Indo-Pacific Economic Framework Further, during F.Y. 2021-22, 1046 surveys were
conducted leading to detection of Undisclosed
I. The Indo-Pacific Economic Framework for Income over Rs. 5100 crores. Whereas, during
Prosperity (IPEF) was launched jointly by USA F.Y. 2022-23* (upto August, 2022), over 335
and other partner countries including India on surveys were conducted leading to detection of
May 23, 2022, at Tokyo. The Framework is Undisclosed Income over Rs. 1100 crores.
structured around four pillars, relating to Trade;
Supply Chains; Infrastructure, Clean Energy and *Figures are provisional
Decarbonization; Fair Economy/Tax and Anti- ii. Prosecutions & compounding:
Corruption. At the Ministerial Meetings held in
September, 2022, India joined 3 Pillars Supply Various measures have been taken by the ITD
Chains (Pillar 2), Clean Economy (Pillar 3) and in the recent past to strengthen the prosecution
Tax & Anti-corruption (Pillar 4). mechanism with a view to identify the deserving
prosecutable cases at the earliest and pursue
II. Within Pillar 4 i.e., Tax & Anti-Corruption, IPEF the same with due seriousness.
partner countries will seek to level the playing
During F.Y. 2021-22, 195 prosecution complaints
field for stakeholders within partner countries by
were filed and 11 persons were convicted and
preventing and combating corruption, curbing tax
468 cases of compounding applications were
ev asion, and enhancing transparency,
accepted. Whereas, during F.Y. 2022-23* (upto
recognizing the i mportance of f airness, August, 2022), 109 prosecution complaints have
inclusiveness, the rule of law, accountability and been filed and 10 persons have been convicted
transparency. By innovating and strengthening and 216 cases of compounding applications have
shared approaches to implement ing been accepted.
anticorruption and tax measures, the countries
will seek to improve the investment climate and * Figures are provisional.
boost flows of commerce, trade, and investments iii. Actions under The Black Money (Undisclosed
among our economies while advancing a free, Foreign Income and Assets) and Imposition
open, and prosperous Indo-Pacific region. of Tax Act, 2015 (“the BM Act”):
III. Avenues and opportunities will be explored to Recognizing the limitations of the Income-tax Act,
pursue provisions and initiatives that support 1961, etc. in dealing with black money stashed
116
abroad, the Gov ernment enacted a include deposits in bank accounts, plots of land,
comprehensive and a more stringent new law flat etc. Provisional attachment of properties
that has come into force w.e.f. 01.07.2015. As under the Act has been done in more than 2960
an outcome of the actions taken by the ITD under cases involving Benami properties of more than
the BM Act, as on 31.03.2022, order u/s 10(3) Rs. 18400 crores. Further, the Adjudication
were passed in 349 cases raising a cumulative Authority (First Appellate Authority under the
demand of over Rs. 13500 crores (subject to PBPT Act, 1988) has confirmed the provisional
fluctuations in currency conversion). Further, as attachment order in about 1900 cases involving
on 31.03.2022, more than 122 prosecution Benami property of more than Rs. 6000 crores.
complaints were filed under the BM Act.
2.8 Directorate of Admn. and Tax Payer Services
Whereas as on 31.08.2022, order u/s 10(3) has
been passed in about 390 cases raising I. Publicity Campaigns: Reaching out to
cumulative demand of over Rs. 15570 crores Current Taxpayers: Taxation is a complex
(subject to fluctuations in currency conversion). subject, and to reach out to taxpayers to both
Further, as on 31.08.2022, 125 prosecution inform and encourage compliance, CBDT has
complaints have been filed under the BM Act. devised interactive and engaging publicity
campaigns on all major communication channels.
iv. Actions under the Prohibition of Benami The ‘Annual Action Plan’ is approved by the
Property Transactions Act, 1988 (“the Benami Hon’ble Finance Minister. This Action Plan
Act”): includes publicity campaigns on TV, radio, print
media, and social media accounts on Facebook,
With a view to bridge the gaps and put in place
Instagram, LinkedIn for awareness of Budget
appropriate effective legislation, the existing Act
was amended through Benami Transactions announcements, payment of Advance Tax, filing
of Returns, TDS statements, Annual Information
(Prohibition) Amendment Act, 2016, and came
Returns and other due dates etc.
into force w.e.f. 1 st November 2016. The
amended Act defines benami transactions and II. Publicity Campaigns: Reaching out to Future
benami property. It provides for consequences Taxpayers: Taxpayer education has been found
of entering into a prohibited benami transactions, to be a critical input in promoting voluntary tax
which includes attachment of the benami compliance. The Income-Tax Department aims
property, confiscation and prosecution of both the to ‘catch them young’ through the following
benamidar and the beneficial owner. The ITD innovative initiatives:
has set up 24 Benami Prohibition Units across
India for taking effective action under the Benami a. Three comic characters; Jaankari Babu, Tax
Act. Pari and Taxa have recently been copyrighted
and are being creatively incorporated in the
As an outcome of unabated actions taken by ITD, department’s media campaigns to create an
the Department has (till 31.07.2022) identified organic connect with taxpayers and promote
more than 4200 benami transactions. These a taxpayer friendly image.
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b. Innovative products, Augmented/ Virtual comprising “The Story of Income Tax”, “The
Reality (AR/VR) games and comic books Story of Pan card” and “Tax Pari” were
which educate and inform taxpayers have launched by Hon’ble Finance Minister during
been developed to reach out to potential ‘Iconic Week’ on 11.06.2022 in Panaji Goa.
taxpayers and build tax awareness. A series
of eight comic books was proposed to The comic books are available for download
actively promote tax literacy in future on https://incometaxindia.gov.in/Pages/
taxpayers. Three digital comic books comic-books.aspx.
c. Two board games and 1 3D puzzle game projects. It is collaborative in nature wherein
for children were also developed by the every person does their best to win together.
Directorate and launched by Hon’ble
Finance Minister.
 The game “Snakes, Ladders and Taxes”
through its well-established game pattern
intends to encourage good tax practices by
being rewarded instantaneously and deters
bad tax practices by being penalized
instantly in respect of tax events/financial
transactions among the players.
 The 3D puzzle game “India Gate - 3D

Puzzle”uses a 3-dimensional model to
intuitively teach children that a nation’s
infrastructure is built on the foundation of
taxes paid.
 The other board game “Building India”

introduces the concept of importance of
paying taxes through the use of memory
cards based on infrastructure and social
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The board games and 3D puzzle have been 22. It was virtually launched by the Hon’ble
distributed to schools across the country by Finance Minister and dedicated to the
the field formations of the Income Tax Nation.
Department so as to reach the target
audience.
III. Samvaad- Reaching out to taxpayers and
stakeholders through chat sessions: The
Income Tax Department organizes interactive
chat sessions with the senior officers of the
department having expertise on important issues
of concern to taxpayers and other stakeholders.
These sessions are recorded at its in-house
communication centre at Directorate of Income
Tax (PR, P&P). Sessions were recorded on
‘Updated returns’, ‘e-Filing’, ‘Advance Tax’,
‘Charitable Trusts/Institutions’ and ‘Ease of doing
d. Launch of Board Games, Puzzle and
Business’ etc. These sessions are uploaded on
Comic Books by Hon’ble Finance Minister
department’s YouTube Channel and the fliers are
on 11.06.2022 in Panaji Goa for our future
posted on the social media handles of the
taxpayers.
department. The Samvaad series has received
wide appreciation with the YouTube channel V. Other Outreach Activities: Other outreach
having clocked close to half a million views on activities undertaken by the department and
some of the talks aired. steered by the Directorate, included walkathons,
IV. Iconic Week: As a part of celebrations of Ministry cyclothons, plantation drives, cultural events,
of Finance, Iconic Week for the department was Swachhta drives, yoga activities, blood donation
celebrated during 6th -11 th June, 2022. The camps, seminars, felicitation of taxpayers etc.
following events were held during the week: These were part of Azadi ka Amrit Mahotsav
celebrations. These outreach activities aimed at
a. Launch of Pratidhwani e-book by Hon’ble sending the message that the Department is
Minister of State (Finance) on 7th June, 2022, conscious of the concerns of its taxpayers and
at Civic Centre, New Delhi. This e-book stakeholders.
showcases the growth and reforms in the
VI. Taxpayers’ Lounge at the India International
Department and development of the country
Trade Fair 2022: The “India International Trade
through the lens of advertisement published
Fair”, with over 2500 global exhibitors offered a
by the Income Tax Department during the
unique platform for staging the best practices
period 2000 to 2022 in print and social
media. being adopted by the department. The Lounge
showcased – ‘Digi talisation through the
b. Launch of Aarohan e-book by Hon’ble Transparent Taxation Platform’ launched by
Minister of State (Personnel & Parliamentary Hon’ble Prime Minister for ‘Honouring the
Affairs) on 8th June, 2022 at Civic Centre, Honest’, comprising ‘Faceless assessments’,
New Delhi. This e-book showcases the ‘Faceless appeals’, ‘Taxpayers Charter’, online
contribution of different batches of Indian grievance redressal, e-filing, E-PAN, and various
Revenue Service to tax administration and Tax payer serv ices f or easi ng v oluntary
reforms undertaken since Independence. compliance. Specialised counters offered PAN/
The book is designed as a repository or e-PAN, Aadhaar PAN linking and queries related
photographs of most IRS batches since to Grievance Redressal.
Independence.
To interact with our future taxpayers, a Children’s
c. A Sand Art Sculpture was prepared live by Carnival Enclosure was designed with the
Padamashri, Shri Sudarshan Patnaik along inhouse Aaycar Video Game, Augmented / Virtual
with his student artists at Puri Beach in reality game “VR Nation Builders”. Kids could also
Odisha. The sand art sculpture depicted the take a picture wi th t he Departm ent’s 3
contribution of direct taxes to national copyrighted comic character mascots- Jaankari
development. The sand art sculpture also Babu, Tax Pari and Taxa. Nukkad Natak, Quiz
highlighted highest direct tax collection ever Shows for adults on the themes of Taxation and
at Rs.14,09,000/- Crore, during the FY 2021- Nation Building, Magic Shows, Live Caricature
119
artist and drawing/painting activities were offered Returns, Refunds and Redressal of Grievances.
with T Shirts, Caps and key chains as prizes. All out efforts were made to achieve maximum
Mascots ‘in-costume’ i.e., Jaankari Babu and disposal of E-nivaran grievances. Out of the
Taxa were hugely popular with kids and adults pending 34,493 E-nivaran cases, 21,799 cases
interacting with them. were disposed off. Disposal of E-niv aran
grievances during FY 2022-23 has reached upto
98.95%.
3. Central Board of Indirect Taxes and

Customs (CBIC)
Introduction:
3.1 The Central Board of Indirect Taxes and Customs
or CBIC (erstwhile Central Board of Excise & Customs)
is a part of the Department of Revenue under the Ministry
of Finance, Government of India. It is the apex body for
indirect tax administration. It is involved in policy
formulation concerning levy and collection of Customs,
The lounge attracted over 7-8000 footfall on Central Excise duties, Central Goods & Services Tax
weekdays with double the number on weekends. (CGST) and Inter-state Goods & Services Tax (IGST),
The Income Tax Department was awarded ‘Gold prevention of smuggling and administration of matters
Medal’ under the category Ministry and relating to Customs, Central Excise, CGST, IGST and
Departments, PSU, PSB & Commodity Boards Narcotics to the extent which is under CBIC’s purview.
by India Trade Promotion Organisation which The CBIC also plays an active role in GST Council
lauded the interactive and taxpayer friendly digital meetings and the associated activities of Law Committee
initiatives of the Department, showcased in the which deliberates on all matters brought before the GST
Lounge. Council.
VII. Taxpayers’ Charter: The Taxpayers’ Charter The CBIC constituted under the Central Board
2020, defines a taxpayer’s rights and obligations of Revenue Act, 1963 consists of a Chairman and six
under the law. It specifies the Income Tax Members who are Special Secretaries to the Government
Department’s commitment to its taxpayers. of India. The CBIC personnel supervise the functioning
of the subordinate formations which includes Directorates
VIII. Aaykar Seva Kendras (ASKs): ASKs have been and field formations of Customs, GST Commissionerates
set up under Sevottam, as per the 12th report of and Narcotics formations such as Opium factories and
2nd ARC aimed at Citizen Centric Governance the Central Revenues Control Laboratory.
with the aid of modern technology. ASK is a single
window mechanism for centralized receipt of The field formations are mainly engaged in
returns, applications, grievances, in various collection of revenue and are spread across the country.
Income Tax Of f ices. Di sposal of all The tax payer’s grievances are attended to by these field
communications as well as physical returns units of the CBIC on a day to day basis.
received in ASKs can be monitored and reviewed The Board is assisted by 19 Directorates who
at the highest level, through a robust e- act as adjunct offices and assist the Board in policy
governance framework integrated with the formulation. Each Directorate has been assigned with a
Income Tax Business Application (ITBA) for specific responsibility. The Directorate General of
taxpayer interface. Revenue Intelligence (DRI) is the premier intelligence and
IX. E-Nivaran: In order to ensure better grievance investigation agency which collects and collates
redressal, E-Nivaran accessed through the e- intelligence relating to Customs duty frauds and
filing portal, is a special electronic grievance smuggling. Similarly, the Directorate General of GST
redressal system which integrates all the online Intelligence is tasked with investigation of GST and
and physical complaints received by the Central Excise/ Service Tax matters. Another important
department. These are monitored by the directorate is the Directorate of Human Resource
concerned supervisory authorities. During the FY Development (DGHRD) which handles all HR matters of
2022-23, a special drive was conducted under CBIC.
the aegis of the ‘Special Swachhata campaign After the introduction of GST in 2017, the
2.0.’ as per Hon’ble F inance Mi nister ’s Directorate of Analytics and Risk Management (DGARM)
observation for addressing three R’s namely – was created. The DGARM is engaged in data analytics
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and data mining. The results of the data analytics has • Vide Notification No. 14/2022-Central Tax dated
helped in detecting large number of fake invoice cases 05.07.2022, UPI & IMPS has been provided as
and has helped in augmenting GST collection. The an additional mode for payment of GST to
performance of this Directorate has been commendable facilitate taxpayers and to further encourage
in the previous two years. The Directorate of Performance digital payment by amending Rule 87(3) of CGST
Management is tasked with evaluation of performance Rules. This will provide them flexibility and
of the field formations based on laid down parameters. ease in making their GST payment.
The Directorate of Audit is mandated to carry out audit
which is an important tool of compliance verification. • Transfer of CGST / IGST cash ledger balance
has been allowed between ‘distinct persons’
The motto of CBIC is “Desh Sevarth Kar (entities having same PAN but registered in
Sanchay”. different states).
3.2 GOODS & SERVICE TAX • Facility has been provided for withdrawal of
refund applications made under GST by the
3.2.1 The Constitution was amended vide the 101st taxpayers.
Amendment Act, 2016, to provide concurrent powers to
both Centre & States to levy GST on goods and Services • In GST, a mechanism has been prescribed for
both. Subsequent to the amendment, the GST Council refund of accumulated ITC on export of electricity.
comprising of the Union Finance Minister, MoS, Finance
• Procedure of sanction of IGST Refund in case
and Finance Ministers of all States, is empowered to make
of export of goods, where the exporters have
recommendations on matters related to GST Law and been identified as risky, has b een
tax rates. More than 17 taxes and 13 cesses have been streamlined, to expedite verification and
subsumed in GST making India – “One Nation One Tax”. processing of such claims.
The taxes subsumed in GST include erstwhile Central
Excise duty (except on 5 petroleum products & tobacco/ • Clarifications issued on various issues related
tobacco products) and Service Tax. to GST to clarify doubts and to reduce
litigation
3.2.2 GST has completed more than 5 years, since its
implementation. GST has revolutionized the indirect • To facilitate small taxpayers in making supply of
taxation regime in India and has allowed India to achieve goods through e-commerce operators (ECOs),
the goal of One Nation, One Tax. However, like every and to provide parity in intra-state offline and
other law, GST is also an evolving law and Government online supply of goods, in-principal decision has
has been sensitive towards the requirements of the trade been taken for waiv er of requirement of
and industry and is making necessary changes required mandatory registration under GST for intra-state
in law and procedures under GST to address the concerns supply of goods through ECOs. Composition
of the trade so as to make India a favourable destination taxpayers would also be allowed to make intra-
for investment and to enable India in achieving the Goal State supply through ECOs subject to certain
of “Atma Nirbhar bharat”. conditions. T his will open the huge e-
commerce market for the small taxpayers to
3.2.3 Following decisions have been implemented/ sell their goods without getting mandatory
proposed to be implemented in GST during 2022-23: reg istration which wil l boo st small
businesses.
A. For Easing compliances in GST and Ease of
Doing Business: B. For improving compliance
• Threshold for mandatory issuance of e- • To prevent fake dealers and shell companies
invoice has been reduced to Rs. 10 crore from to pass on fake credit without filing their
01.10.2022. This threshold limit is proposed to GSTR3B returns and paying taxes, a provision
be further reduced to Rs 5 crore in future, based introduced with effect from 01.01.2021 to block
on the recommendation of the GST council. filing of GSTR-1 by a taxpayer, if 2 or more
GSTR 3B returns are not filed by the said
• Retrospective amendment made in section 50 taxpayer. This restriction was further tightened
of CGST Act with effect from 01.07.2017 to and w.e.f. 01.01.2022, filing of GSTR-1 is not
provide that interest is required to be paid on allowed unless the taxpayer has furnished
the wrongly availed ITC only when the same GSTR-3B return for preceding tax period.
has been availed as well as utilized. Also, rate
of interest on wrongly availed and utilized ITC • Filing of GSTR-1 is made mandatory before
reduced to 18% from 24% with retrospective filing of GSTR-3B for a tax period w.e.f.
effect from 01.07.2017. 01.10.2022, and filing of GSTR-1 has been
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mad e man dato rily sequential w.e.f. f unctionality is expected to enhance the
01.10.2022. uniformity in examination, and lower the time
taken in the process as well as reduce associated
• To tackle the issue of unmatched/non- costs. To harmonize the examination orders
reported invoices, Rule 36(4) was brought w.e.f across FAGs, the Board has further extended
09.10.2019 to limit the availment of input tax the Standard Examination Orders to the goods
credit by the recipient to 1.2 times of the credit under Assessment Group 5 (Chapter 84).
available as per details furnished by the suppliers
in their GSTR-1. This limit was reduced in a iv. Implementation of Anonymized Escalation
phased manner to 10% w.e.f. 01.01.2020 and Mechanism on ICEGATE which allows importers/
further to 5 % w.e.f. 01.01.2021. The same was Customs brokers to raise grievances, in delays
finally brought down to zero w.e.f. 01.01.2022. in Faceless Assessment.
W.e.f . 01.01.2022, the input tax credit
availment has been limited to the extent of v. IGCR Rules 2022 : Leveraging the IT driven
the details furnished by the supplier in GSTR- process of (Import of Goods at Concessional
1/IFF and which has been made available in Rate of Duty (IGCR) procedure, more facilitation
taxpayer’s GSTR-2B. measures were added, and the coverage has
been extended to cov er certain end-use
• Any person who is beneficiary of fake invoices notifications and Gold related schemes under this
and at whose instance such transactions are procedure by bringing in Customs (Import of
conducted has also been made liable for penal Goods at Concessional Rate of Duty or for
action. Specified End Use) Rules, 2022 superseding the
existing rules.
• Aadhaar authentication made mandatory for filing
application for refunds under GST. vi. Implementation of Action points mentioned in the
National Trade Facilitation Action Plan 2020-23:
• In GST, refund to be given in only those bank NTFAP 2020-23 contains total of 66 Action points
accounts which are in name and PAN of the which have been categorized into 3 categories:
applicant. Technology, Regulatory and Infrastructure. Total
• Vide Notification No. 23/2022-Central Tax, the 30 action points have been completed and the
Competition Commission of India has been implementation of rest of the action points is
empowered to handle anti profiteering cases under process.
related to GST. vii. National Time Release Study 2022 was
3.3 Customs released on 11 th April 2022: National Time
Release Study 2022 is a robust quantitative
Reforms carried out by Customs for the year assessment of the EXIM cargo clearance
2022-23 process in the country, covering the four port
categories, viz. seaport, inland container depot,
i. CBIC has extended Customs clearances beyond air cargo complex and integrated check posts.
normal working hours in Inland Container Major finding emerging from the National Time
Depot(s) on the requirement of the trade: on a Release Study 2022 has been that there has
24 x 7 basis; on all seven (7) days of the week been a gradual reduction in the overall release
(including holidays), with stipulated timings; or time for both imports as well as exports. This
beyond normal working hours for specified days indicates the eff ectiv eness of the Trade
in a week and with specified timings. Facilitation reforms initiated by the CBIC to
ii. CBIC undertook key step in decriminalization by expedite the Customs clearances.
revised the guidelines for arrest, prosecution and 3.4 Tax Research Unit
bail in relation to offences punishable under
Customs Act, 1962 by enhancing the threshold All issues pertaining to rate of taxes (Customs,
value limit for offences. Customs Compounding GST, Central Excise), including exemptions, are handled
provisions amended making the compounding by the Tax Research Unit of CBIC.
of off ences m ore accessible and l ess
3.4.1 Tax Research Unit-I (GST on Goods)
discretionary.
A. General policy direction as regards Customs
iii. CBIC implemented Standard Examination Orders
duty rates to give impetus to economic
in the Customs system. The said implementation
growth:
started for goods covered under Assessment
Group 4 in all the Customs Stations. This A1. In recent years, the Customs duty rate structure
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has been guided by principles/ objectives as  Finished items of consumption attract higher
under: duty, e.g., items like mobile, television, air-
conditioner, refrigerators, washing machine,
 To incentivize domestic manufacturing with furniture, jewellery, including imitation
increased value addition under Make in jewellery, watches, toys attract higher BCD.
India and Atma Nirbhar Bharat schemes,
which interalia envisages imposition of lower  In Union Budget 2022-23, the Phased
dut y on raw materials and prov ide manufacturing Programme (PMPs) on smart
reasonable tariff support to goods being watches, hearable devices and smart
manufactured in India. Accordingly, Basic met ers were notif i ed to prom ote
Customs Duty (BCD) rates have been manufacturing of these high-technology
calibrated. electronic goods.
 To complement the schemes devised by  The BCD rates of solar cells and modules
various ministries, this office has designed were increased from ‘Nil’ to 25% and 40%
graded BCD structure under various Phased respect iv ely to i ncentiv ize local
Manufacturing Programmes (PMPs) manufacturing of these goods.
designed by different ministries viz. for  Towards providing a level playing field for
cellular mobile phones, electric vehicles, domestic manufacturers, particularly in the
X-ray machines, wearable devices (smart MSME sector, import duty was increased on
watches), hearable devices (wireless umbrellas and parts of toys in the Union
earphones, bluetooth speakers etc), and Budget 2022-23, while concessional rates
smart meters. in capital goods and project imports for
sectors such as textiles, petroleum, power,
 To provide level adequate protection to
leather etc been provided a gradual phase-
farmers through tariff barrier on agricultural
out taking their rates to a moderate tariff of
produce,
7.5%.
 To rectify inversions in duty structure.
 A comprehensive review of Customs duty
 To allow Strategic imports like defence exemptions was undertaken in the Union
goods not produced locally at concessional Budget 2022-23 through a process of crowd
duty. sourcing and taking inputs from various
ministries and about 350 exemptions were
 To discourage import of non-essential withdrawn.
items.
 The Customs tariff was simplified by moving
 To prescribe trade remedial duties, like unconditional concessional rates from
anti-dumping duty, CVD, safeguard duty on notifications to the schedule to the Customs
dumped and subsidized imports causing Tariff Act, thus making the import duty rates
injury to the domestic industry. on several sectors like textiles, chemicals
and metals to essentially operate through
 To encourage exports, by making available tariff schedule
the raw material at Nil customs duty and
allowing refunds of duty/taxes on inputs.  To control the rising prices of essential
Prominently, gems and jewellery sector, com modi ties like edible oi ls, the
textiles, pharma, leather goods, electronics, Government reduced the customs duty rates
fisheries, agriculture have been benefitted multiple times over the last year and has
by such initiatives relating to exports. extended this concessional duty structure till
31st March, 2023. In the same vein, the
A2. Basic Customs Duty structure consequent to effective import duties on Lentils (Mosur), a
adoption of the above guiding principles for key food item, was reduced to Nil to arrest
inducing economic growth in India: food inflation.
 Generally basic customs duty rates of Nil/  In May 2022, the Cent ral
2.5%/5%/7.5% are applied on the inputs/ government reduced import duty on imports
intermediate products (other than f or of raw materials of Steel like Coal, Coke and
agricult ure and t extil es) used f or Ferro-nickel in order to reduce the cost of
manufacture of finished goods/intermediate domestic production of steel products. The
goods. duty was restored recently.
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 To augment domestic availability export duty in-India and promotion of ease of doing business during
was imposed on Ores and concentrates and the FY 2022-23:
specified steel products
A. Rationalization of GST Rates of Services
 Concerted efforts have also been made to
remove inversions in duty structure. A1 Fol lowing changes hav e been made in
Notif ication No. 11/2017-CT (Rate) dated
B. The Goods and Services Tax: 28.06.2017:
B1: GST rates for Goods I. GST rate on transport of goods and
passengers by ropeways has been reduced
 GST rates are prescribed based on the from 18% to 5% (with ITC of services)
recommendations of the GST Council which
is a constitutional body comprising of II. GST rate of renting of goods carriage with
members from both the central government operator where cost of fuel is included in
and state governments. consideration has been reduced from 18%
to 12%.
 Based on the decisions of the 47th Meeting
of the GST Council held in June 2022, the III. GST rate on Services supplied by a foreman
GST rates on ostomy appliances and some of a chit fund in relation to chit has been
specif ied orthopaedic appliances like changed from 12% to 18%.
implants were reduced from 12% to 5%
providing relief in health care costs. IV. GST rate on Job work in relation to
processing of hides, skins and leather has
 IGST on import of Diethylcarbamazine been changed from 5% to 12%.
(DEC) tablets supplied free of cost for
V. GST rate on Job work in relation to
National Filariasis Elimination Programme
manufacture of leather goods or footwear
was fully exempted.
has been changed from 5% to 12%.
 Based on the recommendation of the Group
VI. GST rate on Job work in relation to
of Ministers (GoM) on Rate Rationalization,
manuf acture of clary bricks has been
the GST Council decision in its 47th Meeting
changed from 5% to 12%.
of the GST Council, the GST rates were
calibrated in July, 2022 on various goods like A2 Exemptions on following services have been
LED lamps, specific machinery, solar water withdrawn to correct the inverted duty structure
heaters, specific kinds of leather goods and allow seamless flow of Input tax credit:
etc to remove inversion in duty structure.
I. Services by the Reserve Bank of India.
 As per the GoM recommendations, a few
exemptions and concessional rates provided II. Services provided by Insurance Regulatory
in GST were also pruned, with respect to and Development Authority to insurers.
few goods. With respect to specific food III. Services prov ided by Securities and
items, the scope of exemption was pruned Exchange Board of India (SEBI)
to exclude the goods sold in pre-packaged
and pre-labelled retail packs. IV. Services prov ided by the Goods and
Serv ices Tax Network (GSTN) to
C. Central excise duty on Diesel and petrol Government for implementation of Goods
C1 Excise duty rates: and Services Tax
 To soften the impact of increasing V. Transport of passengers by air in other than

international prices of crude which led to a economy class embarking f rom or
sharp rise in retail selling price of petrol and terminating in an airport located in NE states
diesel, the Road and Infrastructure Cess and Bagdogra.
(RIC) was reduced by Rs 8 per litre for Petrol
VI. Services by way of storage or warehousing
and Rs 6 for Diesel. These prices came into
of commodities which attract tax (nuts,
effect from 22nd May, 2022.
spices, copra, jaggery, cotton etc.)
3.4.2 Tax Research Unit-II (GST on Services)
VII. Services by way of transportation by rail or a
Following measures have been taken towards vessel from one place in India to another, of
rationalization of GST Rates, Atma-nirbhar Bharat, Make- railway equipment or materials.
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VIII. Services by way of hotel accommodation 3.5 International Customs Division (ICD)
priced up to Rs. 1000 per day per unit.
(i) Agreement between the Government of the
IX. Serv ices prov ided by a clini cal Republic of India and the Government of the Republic of
establishment, an authorized medical the Philippines on Co-operation and Mutual Assistance
practitioner, or paramedics by way of room in Customs Matters was signed on 24th April, 2022. The
(other than ICU) in the clinical establishment Agreement aims to enhance cooperation between the
for which total amount charged exceeds Rs. two Customs Administrations benefitting both the
5000 per patient per day. countries.
X. Services provided by operators of common (ii) Vide notification No. 39/2022-Customs (N.T.)
biomedical waste treatment facility by way dated 30.04.2022, CBIC has notified the Customs Tariff
of treatment or disposal of biomedical waste (Determi nati on of Origin of Goods under the
or the processes incidental thereto. Comprehensive Economic Partnership Agreement
between India and United Arab Emirates) Rules, 2022.
XI. Entry 23A of Notification No. 12/2017- CT(R)
(iii) CBIC endeavours to replace the system of paper
which exempts service by way of access to
certificates of origin (COO) used for preferential trade to
a road or a bridge on payment of annuity
e-COO. In the new trade agreements, use of e-COO is
has been deleted w.e.f 01.01.2023.
being introduced, while for the old FTAs, discussions have
A3 Other miscellaneous changes: been initiated with partner countries. Vide Instruction No.
28/2022-Customs dated 27.10.2022, a mechanism for
I. All taxable service of Department of Posts accepting e-COO has been provided. In addition, CBIC
would be subject to forward charge with is at an advance stage of development of the Electronic
effect from 18.07.2022. Hitherto certain Origin Data Exchange System (EODES) with Korea.
taxable services of Department of post were
taxed on reverse charge basis. (iv) In order to leverage the vast network of post
offices across the country and enable MSME’s (Micro,
II. In case of tour conducted for a foreign tourist Small and Medium Enterprises) to export to global
(person located outside India), partially in markets using e-commerce or other regular channels,
India and partially outside India, the value the CBIC in collaboration with the Department of Posts
of tour operator service, for the purpose of (DoP) has notified the Postal Exports (Electronic
levy of tax, shall be proportionate to the Declaration and Processing) Regulations, 2022. Under
number of days of Indian components of the new system, an exporter need not visit a Foreign Post
such tour, provided that the taxable value of Office (FPO) to file the Postal Bill of Export (PBE) rather,
supply shall not be less than 50% of the total he may file the PBE online from his home/office and
consideration charged for such a tour, handover the export parcel to postal authorities at a
including the component outside India. nearby booking post office. Postal authorities shall
arrange secure transport of export parcel from booking
III. Goods transport agency (GTA) has been post office to an FPO, where customs clearance shall
given option to GST at 5% or 12% under take place.
forward charge; option to be exercised at
(v) Vide Circular No. 09/2022-Customs dated
the beginning of Financial Year. RCM option
30.06.2022, CBIC has put in place a simplified regulatory
also continues. framework for e-Commerce exports of jewellery via
B. Exemption from levy of GST International Courier Terminals (ICTs). To accommodate
the e-commerce business need, it incorporates a re-
I. Services by the Department of Posts by way import process for return of jewellery. For this purpose,
of post card, inland letter, book post and the Courier Import and Exports (Electronic Declaration
ordinary post (envelopes weighing less than and Processing) Regulations, 2010 have been amended
10 grams) have been exempted from GST vide Notification No. 57/2022-Customs (N.T.) dated
irrespective of whether the recipient is an 30.06.2022.
individual or a business entity. (vi) Circular No.08/2022-Customs dated 17.05.2022
C. Issuance of Clarification: has been issued to enable exports from Bangladesh to
India by rail in closed containers, with clearance at
In addition, various clarification regarding hinterland ICDs. A transhipment module has also been
implementation of GST have been issued from time to developed in the Indian Customs EDI System to digitize
time to ensure uniformity in accordance with the the procedure. This would decongest the border trade
recommendation of GST Council. points and facilitate Bangladesh’s exports.
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(vii) Vide Circular No. 17/2022-Customs dated a) Notif ication No. 01/2022-Serv ice Tax dt.
09.09.2022, CBIC has enabled export of containerized 16.12.2022 has been issued by the Central
cargo from any Inland Container Depot (ICD) to Government to the effect that service tax payable
Bangladesh using a combination of rail/road route and under Section 66B of the Finance Act, 1994, on
riverine route. the “light-dues” collected by the Directorate
General of Lighthouses and Lightships under the
(viii) With a view to leveraging the potential of Inland
Lighthouse Act, 1927 for the period from
Waterways for enhancing trade and transit, CBIC has
allowed movement of containerized export goods of 01.07.2012 to 30.06.2017 shall not be required
Bangladesh through India using a combination of riverine to be paid
and rail routes. This facility, allowed vide Circular No. 19/ b) Notification No.3/2022-Central Excise (N.T) dt.
2022-Customs dated 14.09.2022, involves entry of 20.07.2022 has been issued for the purpose of
containerized cargo on a barge/vessel from Bangladesh transfer of appeals filed after the 30th June 2017
into India up to the sea port of Kolkata or Haldia using
the riverine route. From the sea port of Kolkata or Haldia, c) Notification No.4/2022—Central Excise (N.T) dt.
the goods will travel by rail to the sea port of Nhava Sheva 1.12.2022 has been issued for appointment of
or Mundra for final export to third countries by sea route. the Commissioner of Central Excise and Service
The Circular lays down detailed procedure and Tax (Appeals) as Central Excise Officer for the
documentation and provides for track and trace facility entire territorial jurisdiction of the Principal Chief
using ECTS (Electronic Cargo Tracking System). This Commissioner/Chief Commissioner of Central
arrangement is expected to save time and cost for the Excise and Service Tax for the purpose of
traders by providing an alternate and more efficient trade passing orders-in- Appeal for the CX & ST
route. appeals filed after 30.6.2017
(ix) Vide Notification No. 112/2022-Customs (N.T.) d) Circular No.4/2022—Central Excise (N.T) dt.
dated 22nd December, 2022, CBIC gave effect to the 1.12.2022 issued for withdrawal of Circular No.
Rules of Origin (Chapter 4) of the India-Australia 1027/15/2016-CX dated 25.04.2016 regarding
Economic Cooperation and Trade Agreement (India- excisability of waste/residue arising during the
Australia ECTA). process of Manufacture
3.6 CENTRAL EXCISE e) Instruction CBIC-240137/14/2022-Service Tax-
The Central Excise and Service Tax Wing deals CBEC dt. 28.10.202 regarding Pre-deposit
with the policy issues related to Central Excise and legacy payment method for cases pertaining to Central
issues of Central Excise & Service tax. W ith the Excise and Service Tax issued
implementation of GST w.e.f. 01.07.2017, the Chapter V f) Instruction CBIC-110267/75/2022-CX.VIII dt.
of the Finance Act, 1994, is omitted and the Central Excise 6.10.2022 on Sabka Vishwas (Legacy Dispute
Act, 1944 (except as respects goods included in entry 84 Resolution) Scheme 2019
of the Union List of the Seventh Schedule to the
Constitution), is repealed and there are only 6 g) Instruction No. 267/55/2020-CX.8(Pt.) dt.
Commodities viz. (5 Petroleum Products) Crude Oil, 30.5.2022 regarding manual processing of
Diesel, Petrol, Natural Gas, Air Turbine Fuel and Tobacco declarations filed by co-notices under Sabka
Products on which Central Excise duty is being levied. Vishwas (Legacy Dispute Resolution) Scheme
2019 issued.”
The Budgetary Support Scheme under GST was
notified by the Department of Promotion of Industry and 3.7 DRAWBACK
Internal Trade, Ministry of Commerce & Industry and is 3.7.1 Functioning of Drawback Division
being implemented by CX Wing in CBIC. It covers Union
Territory of J&K, Himachal Pradesh, Uttarakhand and Drawback Division in CBIC aims to facilitate trade
North Eastern States (Arunachal Pradesh, Assam, and enhance ease of doing business while balancing the
Manipur, Meghalaya, Mizoram, Nagaland and Tripura need for compliance and enforcement of Customs laws.
including Sikkim). It provides budgetary support to the It performs the following functions:
eligible units under erstwhile Area-based Exemption
(i) Fixation of All Industry Rates under Duty
Scheme and were availing benefits under the respective
Drawback scheme, which is a key scheme to
central excise exemption notification in the erstwhile
rebate the incidence of Customs and Central
regime of Central Excise taxation.
Excise duties on export products so as make
During the current financial year, the Notifications/ country’s exports zero-rated and competitive in
Circulars/Instructions issued by the Wing are as follows: international markets.
126
(ii) Monitoring of sanction and disbursal of drawback (Drawback) was designated as the Secretary to
by the field formations; and the Committee and Drawback Division served
as secretariat. It being a DOC scheme, ceiling
(iii) Monitoring along with DGFT of the functioning rates/caps under the scheme were notified by
of all Export Promotion schemes except SEZ, the Department of Commerce/DGFT based on
EOU and Gems and Jewellery schemes, which recommendations of the RoDTEP Committee
are monitored by the DGEP. and discussion with DoR. Subsequent to
(iv) Fixation of rates for other schemes like Rebate submission of its final report on 15.03.2021, the
of State and Central Taxes and Levies (RoSCTL) Committee was reconstituted on 18.10.2021 to
and Remission of Duties and Taxes on Exported examine anomalies and determination of ceiling
Products (RoDTEP). rates for SEZ/EOU/Advance Authorization
clients. The Committee has submitted its final
3.7.2 Important items of work accomplished by the report on anomalies on dated 20.07.2022 which
Drawback Division of CBIC during the period 01.01.2022 was forwarded to DoC on 06.10.2022.
to 30.11.2022 are as follows:
f. Formulation of Budgetary mechanism: As per
a. Notification No. 37/2022 dated 30.06.2022 issued directions from Ministry, Drawback Division has
vide which exemption from Integrated tax (IGST) successfully brought all the scrip-based export
and Compensation Cess (C.cess) for import of promoti on schemes under budgetary
materials under the AA/EPCG Scheme, which mechanism.
was allowed on 13.10.2017 initially for the period
upto 31.03.2018 and has been subsequently 3.8 CUSTOMS INVESTIGATION WING
extended from time to time, is made available
The office of Commissioner Inv estigation
beyond 30.06.2022.
(Customs), CBIC deals Policy matters relating to Search,
b. Notification No. 75/2022-Customs (NT) dated Sei zure, Arrest, Summons, Prosecution and
14th September, 2022 has been issued to amend compounding offences under Customs Act 1962 [ All
RoDTEP Notification No. 76/2021-Customs(N.T.) legislative matters relating to Chapter XIII, XIV and XVI
dat ed 23.09. 2021. The eff ect of these of the Customs Act, 1962]. This office also deals with
amendments is the deletion of certain conditions matters related to Disposal of various seized and
related to transferee-holder of the scrip. Further confiscated goods including Gold and Narcotics, MLAT
Circular No. 21/2022-Customs dated 26 th requests, Prosecution of officers under Customs Act,
September, 2022 has been issued for clarification Presidential Awards, Rewards to officers as well as
in this regard. informers, NCORD, Election matters and matter
pertaining to FATF Cell in CBIC.
c. Notification No. 76/2022-Customs (NT) dated
14th September, 2022 has been issued to amend The major activities and policy decisions taken by
RoSCTL notification. No. 77/2021-Customs this office:
(N.T.) dated 24.09.2021. The effect of these
 Mass destruction of Narcotics on ‘Drug
amendments is the deletion of certain conditions
Destruction Day’ 08.06.2022: As a part of the
related to transferee-holder of the scrip. Further
Azadi ka Amrit Mahotsav (AKAM) celebrations,
Circular No. 22/2022-Customs dated 26 th
Ministry of Finance celebrated the Iconic Week
September, 2022 has been issued for clarification
from 06.06.2022 to 12.06.2022. Within the said
in this regard
week, 08.06.2022, was earmarked as ‘Drug
d. Notification No. 79/2022-Customs (NT) dated Destruction Day’. A total of 44 MTS of assorted
15th September, 2022 has been issued vide which drugs (Ganja, Heroin, Methamphetamine,
the Electronic Duty Credit Ledger (Amendment) Cocaine, Charas, MDMA, Tablets, Cough syrup,
Regulations, 2022, were modified to the extent Injections etc.), were destroyed during the
of validity of e-scrip issued under the EDCL initiative. The actual destruction was presided by
Regulations from 1 year to 2 year from the date Hon’ble Finance Minister via VC.
of its generation. Further Circular Nos. 21/2022
and 22/2022 both dated 26.09.2022 have been  T he Con troll ed Delivery (Custo ms)
issued for clarification in this regard. Regulations, 2022: Section 109A- Power to
undertake Controlled delivery into the Customs
e. RoDTEP Scheme: Government has constituted Act, 1962 was inserted in Customs Act, 1962 vide
a committee for determination of ceiling rates Finance Act, 2018 empowering Customs officers
under Remission of Duties and Taxes on Export to undertake controlled delivery of a consignment
Products (RoDTEP) Scheme. Joint secretary of goods for the purpose of identifying the
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persons involved in the commission of the collection, bank finance and money laundering.
offence or contrav ention. In this regard, Government from time to time has taken several
Controlled Delivery (Customs) Regulations 2022 measures to prevent GST related offences,
were issued vide Notification No. 59/2022- which include using robust data analytics and
Customs (N.T) dated 12.07.2022. artificial intelligence to identify and track risky
taxpayers and detect tax evasion and sharing of
 Passeng er Name Record Info rmation data with partner law enforcement agencies for
Regulations 2022: Passenger Name Record more targeted interventions. A total no. of 12574
(PNR) data along with APIS data is a significant and 8960 cases involving amount of Rs. 73238
tool for passenger risk profiling. India being a Cr. and Rs. 76515 Cr. have been booked for GST
party to Chicago Convention and is under evasion on various counts during 2021-22 and
obligation to develop capacity for collection, 2022-23 (upto November, 2022) respectively.
usage and protection of PNR Data. Finance Act, Amount reali zed / recov ered during the
2017 had introduced legal provisions in the corresponding period was Rs. 25157 Cr. and Rs.
Customs Act, 1962 mandating the collection of 21085 Cr., respectively. Further, 342 and 131 no.
PNR data. Accordingly, Passenger Name of people have also been arrested during this
Record Information Regulations 2022 were period respectively.
issued vide Notification No. 67/2022-Customs
(N.T) dated 08.08.2022. (b) Transparency and Streamlining enforcement
action:
 Revision of monetary limits for launching of
Pro secution i n rel atio n to offen ces CBIC has issued three instructions during the
punishable under the Customs Act, 1962: year 2022-23 on ‘arrests and bail’, ‘summons’,
With reference to decriminalization of tax laws and ‘prosecution’ to streamline enforcement
emanating from Meeting of Committee of action by its field formations. These instructions
Secretaries, the monetary limits of various have been issued with the intent to maintain the
offences under the Customs Act, 1962 were uniformity of practice, sensitize field officers and
revised. Accordingly, the monetary limits were also to prov ide t ransparency in the tax
revised vide Circular 12/2022-Customs dated administration.
16.08.2022 for launching of Prosecution in
relation to offences punishable under the The essence of the instructions on Arrest is
Customs Act, 1962 and concomitantly, thresholds that power to arrest should be exercised
for revisions of Arrest and Bail were also judiciously. The arrest should not be made in
enhanced vide the Circular 13/2022-Customs routine and mechanical manner and reasons to
dated 16.08.2022. believe to place a person under arrest should be
unambiguous and recorded in writing. Further,
3.9 GST INVESTIGATION WING arrest should not be resorted to in cases of
technical nature. Similarly, instructions on
GST Investigation wing of CBIC was created by launching Prosecution under the CGST Act have
Instruction No. 01/2018 on 10th September, 2018. Its main been issued for prescribing uniform procedure
work is related to deal with policy issues including and time-lines for each step. Further, for twin
legislative matters concerning enforcement aspect viz. purposes of optimal utilization of resources
search, seizure, arrest, prosecution and compounding available with the department and Government’s
under CGST Act, 2017 which eventually refers to GST intention of de-criminalization of laws, launching
Policy wing for further implementation. It monitors the of prosecution has been restricted to cases
work of DGGI and GST field formations in respect of involving more than Rs. 5 Cr. excluding arrest
investigation of cases booked and related reports. It also cases. This effectively decriminalizes certain
coordinates with DGARM and DGGI in analysing and offences involving duty less than Rs. 5 cr even
disseminating intelligence to field formations. when the same attracts prosecution as per Act.
Various activities under taken during this period The instructions on Summons as a measure to
are as under: - secure the presence of a person, accused or
(a) Gov ernment has taken several eff ectiv e witness, also seeks to streamline the process to
measures to curb the GST evasion including ensure that exercise of such power is done
menace of fraudulent Input Tax Credit (ITC) judiciously and with due consideration.
availment based on fake invoices without actual (c) With the change in the outlook of preventive work,
supply of goods and/or services. Besides denting which evolves with the changing trade and
GST revenue, it has a bearing on Income Tax industry landscape, as well as the transformed
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legal landscape of indirect taxes, the need arises Directorate Heads was launched by
to prepare a comprehensive manual for GST Chairman CBIC on 17th March, 2022. It
Int elli gence and Inv estigation work. A provides a focused approach to employee
comprehensive document covering various development and infrastructure expansion
Standard Operating Procedures and instructions in order to harness the Human Resources
is being codified in this regard. The same is as a strategic partner in the symbiotic
presently being finalized and shall be published process of organizational growth and Nation
shortly. building. It augments the HR Management
of CBIC by providing real-time information
3.10 The Directorate General of Human Resource pertaining to all four wings of DGHRD. The
Development (DGHRD) portal is accessible to all Zonal Chief
With a view to providing a more focused cadre Commissioners/ Directors General and they
management including time bound career progression can obtain various reports such as Missing
in all grades and infrastructure expansion in order to APARs, APAR Cycle Pendency, Number of
catalyze the Human Resource functions as an engine of APAR Representations at Zonal Level and
progress, the Directorate of Human Resource Monitoring of Comments/ replies on Service
Development (HRD) was set up in November, 2008 by Matters.
merging the erstwhile Directorate of Organization (iv) E-Pratiniyukti – A portal for streamlining and
&Personnel Management and Directorate General of expediting the deputation process for Group
Housing &Welfare. The new formation was operational A officers has been launched in Sept, 2020.
w.e.f. 1st December, 2008. Presently, there are four wings Since it’s launch, 1510 applications for
in DGHRD namely HRM-I, HRM-II, Infrastructure & deputat ion hav e been successf ully
Welfare (I&W) and Expenditure Management Cell (EMC). processed within prescribed time limits in the
I. Performance and achievements of HRM-I e-pratiniyukti module till November, 2022.
Win g during the year 2022-23 (up to (v) Recruitment Rules (RRs) notified during
November 2022): During the year 2022,
2022-23 –Recruitment Rules have been
following major initiatives have been taken by DG
notified f or the post of LDC in Field
(HRM): -
Formations, MTS in Field Formations,
(i) SPARROW-IRS Module: For online writing Additional Assistant Director in Directorates,
of APAR of Group ‘A’ IRS officers of Central Tax Assistant in Directorates, Tax Assistant
Board of Indirect Taxes and Customs in Field Formations and Executive Assistant
(CBIC), SPARROW -IRS Module was (Directorates).
successfully implemented w.e.f A.Y. 2016-
(vi) Amendments in Recruitment Rules from
17. For the Assessment Year 2021-22, total
2022-23 –Various Recruitment Rules have
6700 (approx.) APARs/NRCs/Foreign
Assignment hav e been generated in been amended during 2022-23 period in
SPARROW module. It also enables the wake of the changing requirements and
online submission of IPRs by the officers. nature of work under various Grades such
as Gr-C posts of Directorates viz. MTS,
(ii) In SPARROW-CBIC project, for online Steno Gr-II, LDC, Havaldar and Head
writing of APAR of Group B and C officers Havaldar, Havaldar in Field formations,
(Grade Pay 1900 and above) of Central Havaldar in Directorates, Steno GR-I in
Board of Indirect Taxes and Customs Directorates and Executive Assistant in Field
(CBIC), was successfully implemented w.e.f Formations.
F.Y. 2018-19 and covered more than 50,000
Officers/Staff (Head Havaldar and above) of II. Performance and Achievements of HRM-II
CBIC. Havaldars and MTS being the feeder wing of DGHRD
grade/ cadre for further promotion to the (i) Half-Year Booklet was finalized (as on
grades where APARs were already being 01.07.2022).
written online, a need was felt that their
APARs also need to be written online. The (ii) Finalization of SOP for Physical Examination
mapping has now been extended upto Test/Physical Standard Test (PET/PST) for
Hawaldar and MTS also. the post of Havaldar-2021 examination.
(iii) Aadharshila, a portal for monitoring of HRD (iii) Recruitment Drive was conducted on
related priorities and timelines by Zonal/ Mission Mode.
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(iv) Civil List 2022 : Civil List of IRS (C and IT) 2022-23, out of the total allocation of Rs.1200 crore under
officers as on 1st day of January 2022 was Capital Heads (4059 & 4216) an amount of Rs. 1033.15
released by CBIC. It comprises basic Cr. has been released till 30.11.2022.
information including color photographs of
the officers. Also, a symbolic depiction of a Major infrastructure proposals sanctioned/
medal against the names of Presidential ongoing are Construction of new NACIN complex at
Awardees and Picture gallery of past Hindupur, Palasamundram (A.P), Office complex and
Chairpersons of CBIC, hav e been residential quarters at Customs Enclave Plot, Wadala,
incorporated therein. Mumbai, residential qtrs. at Anna Nagar, Chennai,
residential qtrs. at Dwarka, residential quarters at
(v) The database of Group A officers was Nungambakkam, Chennai, purchase of land f or
updated and Comprehensive database of construction of office for CGST formations at Noida. The
Group ‘B’ & ‘C’ Officers was created. project of construction of 187 residential quarters at
Kharghar, Mumbai at a cost of Rs. 110.11 Cr. has been
(vi) AGT- 2022: Total 1193 representations of recently completed and was inaugurated by Hon’ble
Group A Officers for AGT 2022 and Post Finance Minister on 14.09.2022. Special initiatives have
AGT 2022 were received till date. The been taken with reference to development of North-
compiled data was placed before the Eastern Region and Sikkim such as Construction of office
placement committee and Orders for 729 building at Agartala, office-cum-residence complex at
officers were issued till date. Shillong and proposal of construction of office building at
(vii) e-HRMS: As part of “Navachar” initiative, Imphal.
the CBIC has deci ded to implement C. Welfare
electronic Human Resource Management
System. HRM-II has been made resource The Customs & Central Excise Welfare Fund
owner for e-HRMS. DoPT is nodal agency was created with the sanction of Hon’ble President of
for implementation and NIC is the technical India in 1987 for the purpose of financing various welfare
partner for designing, development and schemes for promotion of welfare of staff and their
implementation of e-HRMS. At present two families. The Fund is financed by transfer of 5 % of the
Zones, Delhi and Panchkula are selected sale proceeds of confiscated goods credited to the
for implementation of the project on pilot Government and Customs/Excise Duties, fines, penalties
basis. in offence cases realized and sustained in appeal/revision
etc.
(viii) E-vacancy module: This module replaced
the manual system of reporting of data A number of welf are schemes are being
regarding Direct Recruitment Vacancies in implemented for staff welfare under the aegis of Customs
respect of all Cadres by the CCAs. This & Central Excise Welfare Fund. A thorough revision of
has saved time and also ensured accuracy most of the welfare schemes has been completed, where-
in compilation of data. after not only the schemes have been updated and
rationalized with changing times but amounts granted
(ix) Development of e-Preference Module: under the schemes have also substantially enhanced both
This module enables online collection and in cases of the schemes targeted for benefits of
compilation of preferences from individual individuals and as well for procuring energy efficient and
candidates (selected under CGLE and latest technology gadgets/items for setting up of common
Stenographer I and II examinations) which facilities. Facilities such as Medical Assistance, Ex-gratia
was tedious and time taking process prior assistance to the families of deceased officers, financial
to the e-preference module. assistance to the needy Persons with Disability (PwD),
Cash Awards to the meritorious children of Departmental
(x) Comp letion of zon al all ocatio n of officials, Cash Awards for winning Medals/Civilian awards
candidates under CGLE & Steno- I&II in sports and assistance for participation in sports events,
2019 & 2020 Setting up/ refurbishing of Departmental Guest Houses,
Departmental Gyms/ Recreation/ Sports centres,
B. Infrastructure Division:
Departmental Canteens/ Kitchenettes, creche facilities,
DGHRD (Infrastructure Wing) deals with the Preventive and Welfare measures for fighting against
infrastructure issues of CBIC including purchase of land, COVID-19 were undertaken under the welfare fund.
construction of off i ce buildings and residential
D. Expenditure Management Wing
accommodation, purchase of ready-built accommodation,
repai r and mai ntenance of buildings and other The Expenditure Management Cell is mandated
infrastructure related issues. During current F.Y. to act as the Nodal Authority in respect of all Budget
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related matters for the Grant No. 37 – Indirect Taxes. 3.11 The Directorate General of Taxpayer Services
This year BE was Rs. 9948.46 crore (excluding scrips- (DGTS)
based schemes). The funds in BE issued in time as result
of which the utilization of funds upto 30.11.2022 is Rs In terms of Board’s Order No. 02/Ad.IV/2015
6026.87 crore which is 60.58 % of the total available dated 27.8.2015, the Directorate General of Taxpayer
budget. Services (DGTS) is entrusted with the task of coordinating
taxpayer services and publicity and inf ormation
EMC wing in collaboration with NIC, developed a dissemination requirements of the CBI C. It is
dedicated BEAMS Software with an aim to streamline headquartered at New Delhi with zonal offices at
budget estimation, allocation and monitoring of Ahmedabad, Bengaluru, Chennai, Kolkata and Mumbai.
expenditure. BEAMS Software replaces manual PUBLICITY
monitoring exercise of allocation and expenditure of
Budget with an online system. BEAMS is a very unique Publicity Activities till 30.11.2022 during F.Y. 2022-23
application as no other Central Ministry/ Department is a) During the Iconic Week of AKAM celebrations,
currently using such an application and it will be in line 07 teasers and 02 docum entary v ideos
with CBIC’s focus on paperless work and promoting digital showcasing Customs & GST historic Museum
governance. BEAMS marks a generational shift from the ‘Dharohar’ Goa were prepared and released. The
manual monitoring exercise of budget to a more museum was rededicated to the nation by
systematic online process. The Software can generate Hon’ble Finance Minister.
various kind of MIS reports which can be of great use in
monitoring expenditure trend and envisaging Budget b) The GST regime completed 05 successful years
on 01.07.2022. To publicize this occasion and
Estimates. This module brings together all the
make public aware about the latest achievements
stakeholders viz 68 Budget Control Authority’s (BCAs),
under the GST regime, produced 04 teasers and
400 Head of Department’s (HODs) and over 1200
01 short-video on the occasion of completion of
Drawing and Disbursing officer’s (DDOs). It will be a single 5 years of GST along with a logo and 10 creatives
platform for swifter and seamless processing of all were processed which were circulated to the field
matters related to CBIC’s Budget. All efforts are being formations and on social media platforms.
made to train field formations to utilize the benefits of the
application. This software is fully functional w.e.f. c) DGTS has worked as an interface between the
01.04.2021. Board and field formations in organizing the Azadi
ka Amrit Mahotsav (AKAM) commemorating the
The efforts are being made to integrate PFMS 75 years of Independence of India. In this regard
and BEAMS applications so that real time data is available approx. 50 creatives were prepared and shared
in respect of expenditure booked by various BCAs. with field formations on various events i.e.
Recently, a meeting has been held between NIC team Commemorating the martyrs of the Jallianwala
and office of Pr. CCA to work out modalities to integrate Bagh massacre; World Environment day;
PFMS and BEAMS. International Yoga Day; Quit India Movement; etc.
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d) Participation in the 41st India International Trade 320 Creatives were released through social media sites
Fair organized by ITPO from 14.11.2022 to Twitter and Facebook covering varied topics related to
27.11.2022. AEO; Azadi ka Amrit Mahotsav (AKAM); Clarification on
GST; Deferred Payment of Duty; e-Invoice; GST Refunds;
e) For educating and increasing taxpayers’
HSN Code; GST Returns; Trade Friendly Initiatives by
awareness in an effective manner, webinars are
CBIC; Turant Customs; 46th & 47th GST Council Meeting;.
conducted regularly by DGTS Zonal units in
GST Day, 2022; Rozgar Mela; CAAR; Dharohar; Special
association with field formations and trade
Drive for destruction of Drugs; Special Driv e for
organization (FICCI, ASSOCHAM, CII, etc.).
cleanliness in office premises undertaken by CBIC under
Some of the topics covered are:
Swachhta 2.0; etc.
i) E-invoicing processes in GST and Technical/
(Projection till 31.03.2023)
System related aspects in GST e-invoicing
(the presentation was based on practical Regular reminders for filing GST Returns/
aspects) Deferred payment of Customs Duty/ filing of Central
Excise Return/ payment of duties will be issued along
ii) Role and Functions of the Customs Authority
with any amendments/ legislative changes/ new initiative
for Advance Rulings- Best Practices and
introduced by CBIC. This Directorate will also carry out
Case Studies.
publicity campaigns to educate the taxpayers/ public at
i) Changes in GST due to the Finance large. As the Country is celebrating 75 years of
Act, 2022. independence “Azadi ka Amrit Mahotsav” (AKAM) all the
creatives issued by this Directorate are having the logo
ii) Outreach /Physical Seminar at Maha of AKAM, will also be preparing a few AKAM oriented
Mumbai Metro Operation Corporation Social media Campaign. India holds the Presidency of
Ltd (MMMOCL) ( a State Govt. PSU the G20 from December 1, 2022 to November 30, 2023,
established for running Metro ) the G20 logo is being used in all the creatives prepared
iii) AEO Scheme & Recent Changes by this Directorate.
iv) 47th GST Council Meeting- Trade TAXPAYER SERVICE CENTRES

Facilitation Measures etc. One of the mandates of DGTS has been to set
up Taxpayer Service Centres in all Commissionerates.
DGTS has organized 35 Webinars in a span of
Vigorous follow-up has ensured setting up of Taxpayer
last 8 months time.
Services Centres in the Commissionerates of Central Tax,
Publicity Activities to be undertaken from 01.12.2022 Customs & Central Excise.
to 31.03.2023 (F.Y.2022-23)
PUBLICATIONS
i. Celebration of 60 Years of Customs Act, 1962.
The Directorate brought out publications at the
ii. Celebration of International Customs Day, 2023. behest of CBIC and other formations such as DGHRD
SS & WS Booklet, Booklet for AKAM, Dharohar Booklet,
iii. Publicity of decisions taken by the 48th GST WTO Agreement, Hindi Manual (50 sets of 12 Books),
Council. Booklet for GST Day, Civil List, 2022, IITF Booklet,
iv. Publicity of initiatives undertaken by CBIC in the Brochures and Fliers.
later part of the Financial Year. 3.12 DG SYSTEM
v. Publicity of Government of India’s initiative Azadi The Central Board of Indirect Taxes and Customs
ka Amrit Mahotsav (AKAM) in the later part of (CBIC), through the Directorate General of Systems and
the Financial Year. Data Management (DGoS & DM), implements all the IT
Social Media (As on 30.11.2022) and digital requirements for the CBIC officers. The
development and maintenance of all the CBIC IT
Considering the importance of social media as a applications like ACES GST applications, Indian Customs
powerful means of instant communication with citizens, EDI Systems, ICEGATE etc. to provide the digital
the Department has effectively used this platform namely workflow for CBIC businesses and also to facilitate
Facebook page (CBI CINDI A), t witter handle electronic interface with the trade and the general public
(@CBIC_India) and Youtube channel (GST_India). Over in respect of Customs and GST Wings of the Department.
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The projects in this program are in line with the CBIC’s cancelled taxpayers, preparation of SCN (others
commitment to the nation on e-governance and various category), including additional column for Fee in
guidelines in the matter. DGoS & DM has initiated several forms DRC 01, DRC 07 and DRC 08 are
projects aim ed at harnessi ng I nf orm ation & developed and rolled out to production.
Communication Technology (ICT) in achieving the
Further, functionalities like selecting Common
objectives of Customs and Indirect tax administration.
Adjudication Authority in form DRC 01, issuance
DGoS & DM is one of the first government departments
of Form DRC 02, De-novo adjudication are under
to have implemented an Enterprise Date Warehouse, a
advanced stage of development.
central repository of clean and consistent and near real
time data pertaining to Customs, Central Excise and GST. iii. Appeals, Review & Revision sub-module of
DSR
ADVAIT (Advanced analytics in Indirect Taxation)
leverages the capabilities of big data and predictive Functionalities for Appeal proceedings against
analytics to provide platform for improved decision- Refund Orders (Taxpayer & Department Appeal)
making, with the threefold objective of enhancing indirect and Appeal proceedings against Registration
tax revenue, increasing taxpayer base, and supporting order (Taxpayer Appeal) are rolled out in June
data-driven tax policy formulation. ADVAIT provides and November 2022. Further, modification in the
business outputs in three formats: Reports, Interactive Review of Demand/Refund orders and Appeal
Dashboards, and Analytical Models. In FY 2022-23, till functionalities for first Appellate Authority have
30.11.2022, 110 reports, 10 dashboards and 11 Data been taken up for Development based on
science Models are developed as ADVAIT utilities. feedback received from field formations.
Furthermore, minimum 19 Reports, 2 Dashboards and 1
iv. Recovery sub-module of DSR
Data science models will be developed before the
completion of this Financial Year. The functionality of each Development of MIS reports for recovery,
output is specifically designed to aid and assist officers providing hyperlinks and color coding of Forms
in their day-to-day operations that range from reporting DRC 20, DRC 21 are taken up for development
and ensuring tax compliance to detecting tax evasion. as the recovery module consisting of Forms DRC
9 to DRC 25 has already been rolled out in 2021
The Express Cargo Clearance System (ECCS) itself.
is an application that enables automated clearances of
express cargo. It is a single and common web-based v. Audit Module
digital workspace for all stakeholders. The ECCS The module was deployed to production in April
facilitates electronic clearance of courier shipments and 2022. Nine APIs released by GSTN are being
brings transparency and ease of clearance, in line with integrated in the Audit module. Defects reported
the Government’s initiatives such as Digital India and by formations during usage of application, are
Ease of Doing Business. This State-of-the-Art ECCS being rectified.
application has been built on cutting edge technology
products to ensure faster clearance, better compliance vi. E-Way Bill
of rules, quick data reporting and enhanced data security. Functionality to Search, View and download
Development of modules in CBIC GST Application: E-Way bill data is rolled out during the year. To
handle the voluminous data of e-way bill and
i. Investigation sub-module of DSR improve performance of the functionality, existing
e way bill data and new data is proposed to be
The module is rolled out in 2020. As a part of
stored in new DB instance and the migration of
furtherance of module, development of additional
existing data to new instance is taken up.
functionalities like Enquiry, IP address search,
MOV Forms, Show Cause Notice, MIS reports A. Postal automation project in Customs:
etc., are being taken up.
a) Development of Customs FPO Application for
ii. Adjudication sub-module of DSR Postal Imports:
The module is made available from 2018 FPO Import Application being developed by DG
onwards and new functionalities are added every Systems & Data Management, Bangalore Zonal
year thereafter. In this year, functionality to unit in association with NIC. The same is being
facilitate issue of DRC-01 for registration developed in a phased manner.
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b) Development of PBE (Postal Bill of Export) E. Returns & Payments Module:

System for Postal Commercial exports:
In this module, Comparison of Liabilities Vs ITC
PBE (Postal Bill of Export) System for Postal Report, Update the details of Aggregate Annual Turnover
Commercial exports is being developed by (AATO) given by the Taxpayer by the Tax Officer,
Department of Post (DoP), in association with Generation of GSTR-2B, Enhanced view of GSTR-2A,
CBIC. ITC Block-Un Block - Additional fields to provide for
Reasons and to upload documents and to facilitate
DG Systems was directed to coordinate with
negative blocking, View of GSTR-3A Notices issued by
Department of Post and monitor the same. DGS
GSTN to non-filers of GSTR-3B Returns, Delinking of
BZU coordinated for testing, shared BRD and
Credit/debit notes from original Invoice details in GSTR-
additional requirements on the functionality to be
6, Enhanced view of GSTR-3B (Collection of late fees of
added in the PBE system and suggested phased
GSTR-1 through GSTR-3B & Inclusion of new table 3.1.1
approach with the CBIC. CBIC has approved and
pertaining to supplies made by registered persons through
shared those with DoP. Accordingly, DoP has
E-Commerce operator), GSTR-1 Changes - New
revised the PBE system.
Approach
B. Refunds: - - To reduce the Return data Gap between GSTN
From 26.09.2019, Processing of Ref und and CBIC data base prospectively and Total Deposit
Applications filed by the Tax Payers is made fully Summary based on Type of Taxpayer were developed
online. Withhold release functionality was introduced and deployed.
during the year. Further, the Functionality to credit the Further, Functionalities such as Risk based
sanctioned Refund Amount to Consumer Welfare Fund Selectivity System for scrutiny of Returns, Summary
is also developed and ready to be deployed. Alternate assessment, New TRAN-1/TRAN-2 – View and posting
work flow for ICEGATE refunds is also developed and of the amount allowed by the Tax Officer after verification,
would be deployed once GSTN implements the same. View of GSTR-4 (Annual Return for composition
Taxpayers) are proposed to be rolled out.
C. Registration:
F. GST Services
In registrat ion m odule, Cancell ation of
registration by OIDAR taxpayers, W ithdrawal of a) For the period 1st January 2022 to 30th
cancellation by Taxpayer, and Viewing and downloading November 2022 the helpdesk cbicmitra has
document f or UIN Registration along with date received 3,09,002 calls and 27,452 emails and
functionalities were implemented. Further, Change in 1,00,173 web tickets from taxpayers and tax
revocation timelines, List page showing suspended officers which have been duly resolved.
taxpayers, Composition levy opt in/opt out status in active b) There was a “GST & Customs Pavilion” in the
registration list, Automation of drop proceedings of Suo India International Trade Fair (IITF) organized
moto cancellation, and IRP/RP as new class of person from 14th to 27th November, 2022 at the Pragati
for registration are proposed to be introduced. Maidan, New Delhi. Therein CBIC Mitra Helpdesk
was also setup.
D. MIS Analytics team:
c) From Jan, 2022 to August, 2022, 111 hand-
MIS & Analytics has been generating and sharing holders across 79 locations of CBIC offices
the data with field formations based on specific requests were provisioned. Further, after analysis of Daily
from field formations. This team is regularly sharing the Activity of Hand-holders. From 01.09.2022 they
GSTR-1 and GSTR-3B table wise data for consumption were ramped down to 21 for 21 locations of CBIC
by DGARM. MIS & Analytics Team has taken up Auto offices. As on 30.11.2022 there were 18 hand-
population of Data for 12 GST MPR for DDM Portal. Data holders actively deployed.
was transferred successfully from ACES-GST data base
to Intermediate server of DDM in respect of Five revenue G. Monthly Performance Report (MPR):
reports. Demo/dry run completed successfully at DDM a) The Directorate of Data Management (DDM)
for these reports on 18.10.2022. Team has also taken up successfully completed the migration of all parts
automation of Ad-hoc reports into MIS reports which are of the Monthly Performance Report (MPR)
being shared by SI on daily basis to field formations. module from NIC Cloud Server Meghraj to the
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CBIC Server. All parts of MPR are now available  RMS and IPR Production single-si gn-on
on Antarang Portal. authentication on OAM 12c has been completed
on 13th April 2022
b) Further, a new MPR viz DDM-CUS-7 has been
introduced under Customs stream of Part-I to  Atithi Mobile App Version 2.0 launched conducted
capture revenue figures from all 100% EOUs. successfully on 26th May 2022
c) The proforma for MPR DRI-CUS-8 has been  ISO 22301 transition audit (Audit based new
enhanced to capture the data on Compounding standard ISO 22301:2019) was completed
of Offences from the Custom Zones. successfully on 9th-10th June 2022.
d) Further, in compliance with the directions of the  Customs DR Drill was successfully conducted
Board, data pertaining to manual payments not from 24th to 26th June 2022.
being reported in the MPR is being reported on
 GST simulation with user testing completed
a monthly basis from 20 Zones of Customs &
successfully on 23rd Jul’22.
CGST & DGRI by DDM through Office 365
Application.  ECCS DR simulation activity with user testing
H. DGARM Application: was successfully completed on 9th Aug’2022
The reach of DGARM application (developed by  ADVAIT simulation with user testing has been
DDM) forwarding the analytical reports of the DGARM successfully conducted on 27th Aug’22
containing actionable data on suspect & risky taxpayers  ISO recertification of ISO 20000, 22301, and
to CGST offices and DGGI has been extended up to the 27001 was completed successfully for CBIC in
Range level. the last week of Aug 2022
I. Various study tour and Outreach Activities
 Installation of Hindi Indic Tool for Hindi typing in
were conducted
21000 AIO’s out of 24000 AIO’s.
J. ECCS:
 Upgradation of Windows OS 10 pro on 23000
a) In order to enable express clearances, CBIC has AIO’s out of 24000 AIO’s.
notified 14 International Courier Terminals (ICTs),
 Process optimization conducted for Saksham
out of which ECCS is currently operational at 9
Seva helpdesk to ensure that L1 team takes end
locations, viz. Bangalore, Mumbai, Delhi,
user confirmation on resolution in all cases.
Ahmedabad, Cochin, Chennai, Jaipur, Kolkata
and Hyderabad.  Phase 1 development for new CBIC website
b) A few other noteworthy points regarding ECCS completed.
are that ECCS has resulted in 100% Paper less  Web Application Firewall (WAF) enablement in
clearance and covers approximately 45000 blocking mode on all public-facing websites –
shipments per day cleared out of the major March 2022.
express terminals in the country.It has an
automated Risk Management System (RMS) and  Application log Integration with Security
nearly 90% of shipments are facilitated. The duty Operation Center (SOC) – March 2022.
and other fee are paid 100% online electronically.
 Mitigation of prominent zero-day vulnerabilities
K. System Integration and Security: including Boothole, Log4J, and Spring4Shell –
April 2022.
 Successful Go-live of E seva - Admin Module
launched on 4th Feb 2022.  Integration of Data Leakage Prevention with
Advait – May 2022.
 Production readiness of API-based Container
Scanner solution was completed for 4 locations  Mitigation of Folina zero-day vulnerability – June
in Feb 2022. 2022.
 IDAM (Identity and Access Management)  Initiation of Security Orchestration Automation
migration from 11g to 12C was completed and Response (SOAR) implementation. – August
successfully on 18th Feb 2022 2022.
135
 Initiation of integration of NCIIPCs Threat which, 70 have been accepted till date. Remaining ATPs
Dissemination Platform (TDP) with DG Systems are expected to be accepted at the earliest
– August 2022.
(v) Onboarding of Custodian on CBIC Network
 Completed ISO 22301 Transition audit.
During the period LAN-WAN vertical received 34 requests
 NCIIPC’s Threat Dissemination Platform (TDP) from various field formations for allocation LAN IP Pool
integration with Security Operation Centre (SOC) to Custodian locations for access to Data Centers. Out
– October 2022. of these request 20 Custodian locations have successfully
connected to Data Center and working on CBIC
 Enablement of blocking of threat feeds being
applications. Further in order to conclude remaining
received from TDP – November 2022.
requests necessary guidance is being provided to
 Framing of advisory for Malware Investigation on Custodians.
locations hosting non-saksham desktops/
M. ICEGATE:
machines – November 2022.
 SOAR implementation in CBIC – October 2022. i. Launch of ICEGATE 2.0 (Phase I):
 Creation of a playbook for automating actions New functionalities were introduced in ICEGATE
through SOAR – November 2022. as part of launch of ICEGATE 2.0 on November 16, 2022:
 Creation of playbooks for various security attack • Improved Bilingual Website

scenarios – December 2022. • Personalized Dashboard
L. LANWAN: • Chatbot and Advanced Helpdesk
(i) Provision of IT Infrastructure • Secured and authenticated communication with
During this period, the LAN/ WAN vertical external agencies
received 110 IT infrastructure related requests (shifting/ • Availability of both online and offline document
addition / repair & maintenance) from various field filing facility
formations. 95 requests were successfully executed and
work in respect of remaining 15 requests are under ii. Helpdesk:
process of completion. Helpdesk has started helping the users in
(ii) Commissioning of MPLS Links resolution of their inquiry related incidents from the month
of September, 2022 which has increased the scope of
During this period, LAN-WAN vertical received support at Helpdesk level.
41 requests f rom v arious f i eld f ormat ions f or
commissioning of MPLS Links including the links to be iii. Export Obligation discharge certificate
shifted to new premises. MPLS links have been (EODC) enquiry:
successfully installed at 23 locations through BSNL/ EODC Enquiry is designed to help exporter to
MTNL, while balance is being closely monitored for
monitor the status of their applications submitted for grant
expeditious completion.
of Export Obligation Discharge Certificate.
(iii) Extension of WAN Contract
EODCs issued by DGFT, should normally be
During the period, existing contract for WAN accepted unless there is an intelligence suggesting
managed services with BSNL/MTNL had expired on 30th misuse. In cases where Regional Licensing Authority has
Sep. 2022. IFU concurrence and approval of the Hon’ble endorsed on the EODC that customs should verify the
FM on proposal for extension of the contract for a period Shipping Bills and other documents, such verification
of 6 months has been received. would be done.
(iv) Analysis and acceptance of pending ATP. iv. Import of Goods at Concessional Rate of Duty
(IGCR):
ATP reports form a crucial part of verifying the
completion of network changes implemented and A module has been made available to the
payment to SI is based on the said ATP acceptance. For taxpayer’s post-login to enable them to file their requests
the subject period, 86 ATPs were submitted by SI out of online for availing benefits under the Import of Goods at
136
Concessional Rate of Duty (IGCR) Rules. The broad x. Awards & Recognition:
provisions are as under:
 ICEGATE, DG Systems has received Jury Award
(i) Provision of declaration of advance intimation of from Tax India Online (TIOL) under the category
Import of Goods at concessional rate of duty. of ‘Institutional Game Changer’ in the month of
November 2022.
(ii) Generation of a unique IIN for a Financial Year
with facility to amend as and when required.  ICEGATE has also been selected for Platinum
Award, given under ‘Digital India Awards 2022’
(iii) A Continuity Bond of IGCR Bond Type can be
under the category of ‘Public Digital Platforms –
created or amended by the Importer.
Central Ministries, Departments’.
(iv) Bond Management Module
xi. Proposed Launches till March 31, 2023:
(v) Multiple Details are auto populated in the monthly
 Electronic Cash Ledger (ECL): The e-Cash
statement.
Ledger module enables a registered/authorised
(vi) Interface to accept details, entered by the user, IEC holder to create a virtual account (electronic
provided to the jurisdictional Customs officer wallet) on ICEGATE website and credit funds into
the virtual account, using Internet Banking,
v. Anonymized Escalation Mechanism (AEM): NEFT/RTGS or Ov er-The-Counter (OTC)
The Anonymized Escalation Mechanism enables Payments, so as to act as a mode of payment
importers to submit a grievance on ICEGATE in case of for customs duties online.
any delay in clearance of a Bill of Entry under faceless  Exchange Rate Automation Module (ERAM):
assessment. The grievance is escalated anonymously Using ERAM, automatic updation of exchange
to the Assessing Officers and their Supervisory Officers rates for import and export goods will be done
at the Faceless port, while concealing the identity of the on daily basis (except Saturdays, Sundays and
Faceless Officer and the Port from the importer. Gazetted Holidays) on ICEGATE Website and
the ICES System.
vi. E-scrip module:
 ICEGATE 2.0 (Phase 2):
E-Scrip Module provides a facility to the exporters
to avail benefits defined under various incentive schemes o ICEGATE Mobile-based application
like Remission of Duties and Taxes on Exported Products
o Search Functionality
(RoDTEP) and Rebate of State and Central Taxes and
Levies (RoSCTL) in order to avail rebate of Central, State o Chat Bot (Phase 2)
and Local duties/taxes/ levies which are not refunded
o Remaining Messaging Infrastructure
under any other duty remission schemes.
o API Integration with external stakeholders
vii. Examination Application:
(Importer/Exporter/CHA)
The utility helps importers to select the time slot
o Reports Phase 1 (Dynamic Enquiries on
for examination of their Import Consignments in their
Transactional Data & Ticket Logging)
presence.
o E-Payment
viii. Air Trans-shipment for outbound Messages:
o Registration Module and Admin Portal for
Implementation of All India Air Trans-shipment
all users
(ATP) Message fillings for Air-to Air and Air-to-ICD Trans-
shipment in imports, whereby the registered users can  ICEGATE (Phase 3):
file the ATP EDI messages via Email or Web Upload in
ICEGATE. The existing facility of filing at the Service o API Integration with external stakeholders
(Custodians, DGFT, MoS,
Centre would also continue without change.
ix. Separate PQMS Module: o DGCIS, Pr.CCA, DoV, SEZ, Courier, CRIS)
o Refunds & Integration with PFMS
An independent PQMS (Plant Quarantine
Management System) module was developed replacing o ICEGATE Mobile-based Application for
PQIS in line with the Single Window concept. Customs Officers
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o Reports Phase 2 (c) ICES Advisory No. 09/2022 dated 10.06.2022 on

Implementation of Notification No.16/2011 -
o Helpdesk & Self-service portal
Customs (NT) dated 1st March 2011 under IGCR
o Social Experience Manager tool consistent with CBIC Notification No. 16/2011 -
Customs (NT) dated 1 st March 2011 that
o Public enqui ries f or ICEG ATE and prescribes import of certain prohibited goods
Compliance Information Portal subject to the condition of fulfilment of Import of
 Integration with SEZ: Goods at Concessional Rate of Duty for
Manufacture of Excisable Good.
Functionality for registration of SEZ users and
filing of customs documents will be provided at ICEGATE. (d) ICES Advisory No. 10/2022 dated 14.06.2022
issued for system changes relating to AD Code
Significant developments / policy decisions taken Registration in exports in accordance with Board
during the year for the development of a particular sector, Circular No. 32/2020-Customs dated 06.07.2020.
including initiatives for improving delivery of public
services and for ensuring “inclusive growth” (e) ICES Advisory No. 12/2022, dated September
8, 2022, issued on the Anonymized Escalation
(i) Dual Connectivity Testing Mechanism (AEM) under Faceless Assessment,
The LAN-WAN section, initiated and successfully in accordance with Board Circular No. 14/2021,
completed failover testing at 85 critical sites of CBIC dated July 7, 2021.
having dual connectivity from M/s BSNL/MTNL & M/s (f) ICES Advisory No. 14/2022 issued on September
TCL. This has ensured robust connectivity to the system 29, 2022 for customization of alerts/suspension
and provided better users experience while working on module for exports in System - Changes made
CBIC applications. in System.
(ii) Non-EDI to EDI Conversion (g) ICES Advisory No. 18/2022, dated December 5,
In order to give shape to Principal DG, DG 2022, for the implementation of a new All India
Systems’ vision of conversion of all non-EDI sites to EDI Air transshipment bond for air-to-air and air-to-
in the, located in remote border areas, the LAN/WAN ICD transshipment in imports. This National Bond
vertical took up the task in a systemic and phased manner. (bond type TA) can be registered at any port and
Out of 18 sites proposed in Phase-I, a total of 14 sites then used at any port.
have been converted to EDI. For Phase II, out of 16
Initiatives taken with reference to the
proposed sites, 01 site has been converted to EDI. Work
development of North–Eastern Region and Sikkim
on the remaining sites is ongoing and is expected to be
including projects/schemes in operation and actual
completed at the earliest.
expenditure thereon:
(iii) Hosting of Hackathon
Three non-EDI Customs locations in North-East
The DDM successfully hosted the HACKATHON (NE) region have been enabled on the Indian Customs
event of EDW vertical of DG Systems. EDI System.
(iv) ICES Advisories issued on policy decisions 3.13 National Academy of Customs, Indirect Taxes
for activities listed are as follows: & Narcotics (NACIN)
(a) ICES Advisory No. 06/2022 dated 18.04.2022 National Academy of Customs, Indirect Taxes &
issued for the implementation on IT platform on Narcotics (NACIN) is the apex institute of Government
Implementation of IGCR in SEZ Clearances for of India for capacity building in the field of indirect taxation.
DTA Supplies in accordance with Board Circular It also plays a vital role in international capacity building
No. CBIC Circular No. 04/2022-Customs vide F. by imparting training to officers of various countries in
No. 450/28/2016-Cus-IV dated 27.02.2022. the field of Customs, drug laws and environment
protection. NACIN is the World Customs Organization
(b) ICES Advisory No. 08/2022 dated 30.04.2022 for (WCO) Regional Training Centre (RTC) for the Asia
changes introduced by Finance Act 2022 in the Pacific Region. United Nations Environment Program
Customs Tari ff ef f ect iv e 01.05. 2022 in (UNEP) has designated NACIN as a collaboration center
accordance with Finance Act 2022. for capacity building in the field of environment protection.
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In collaboration with United Nations Office on Drugs & personally monitored by the highest authority at the
Crime (UNODC), NACIN is imparting training on drug Ministry to create a World Class Capacity Building Institute
law enf orcement to v arious Asian nations. The as pride of Nation and showcase the Indian Heritage and
Gov ernment of India has ent rusted NACIN the Culture to the international community. As the upcoming
responsibility of knowledge exchange, experience sharing campus will be hosting many National and International
and training with various countries of the world. training programmes being the accredited Regional
Training Centre for WCO, BRICS, UNODC and other
The charter of functions of NACIN issued by international agencies. NACIN is also under the
CBIC mandates training of not only the officers working obligations to extend capacity building assistance to the
under CBIC but also of the off icers f rom other friendly countries on MOU basis while collaborating with
departments, ministries, and other stakeholders. NACIN’s advanced countries like USA, UK, Russia and other G-
flagship program is to conduct the Induction Training of 20 countries.
newly recruited IRS (C&IT) Group ‘A’ officers selected
through Civil Service Examination conducted by UPSC. b. Mission Karmayogi and iGOT
Since last two decades NACIN is conducting complete
The National Programme for Civil Services
professional training of Officer Trainees of IRS (C&IT).
In addition, NACIN through its 18 Zonal/Regional Capacity Building (NPCSCB) approved by Union Cabinet
Campuses in 15 state capitals, and 03 major cities, in September 2020 is popularly known as Mission
conducts the training programs for the capacity building Karmayogi. It is governed by the “Hon’ble Prime
as well as enhancing of skills in-service officers. Minister’s Public Human Resource Council”. One of the
aims of the programme is to build and strengthen the
NACIN also conducts the Mid-career training
Behavioral, Functional and Domain Competencies of civil
programs at regular time intervals for the officers to enable
servants.
them to discharge their responsibilities effectively as per
their changed roles and positions. The zonal/ regional i. Accreditation (NSCSTIs): - As a step ahead
campuses of NACIN also provide induction training to under Mission Karmayogi, in order to assess the
the newly recruited Group B and C officers. NACIN was performance of Central Training Institutes (CTIs)/
also mandated by the Government to provide GST Administrative Training Institutes (ATIs) and
training to all officers under CBIC and officers from States, provide them performance-based ranking, the
Union territories and other stakeholders at the time of
Capacity Building Commission (CBC) identified
the introduction of GST.
the need for development of an evaluation
MAJOR ACHIEVEMENTS: framework for enabling functional assessment
of all Civil Service Training Institutions. CBC, in
a) NACIN Complex at Palasamudram, Hindupur:
July 2022, has launched the portal for National
The upcoming NACI N Com plex at Standards for Civil Service Institutions (NSCSTI)
Palasamudram, Andhra Pradesh is envisioned as a and initiated accreditation certification program
Centre of Excellence in Capacity Building, spread across for training institutes.
500 acres of land, with state-of-the-art facilities. The
Administrative approval and Expenditure Sanction for Accreditation is a process of establishing
Rs.702.27 Crore was given by the Hon’ble Finance competence of a training institute in delivering
Minister on 01.12.2021. The laying of the foundation stone the requisite elements and its ability to carry out
ceremony was performed by the Hon’ble Union Finance evaluation of competence acquired by the
Minister on the 5th of March 2022. The tender for the learners/trainees. Accreditation focus is on
project has been awarded to M/s. DEC Infrastructure & learning, self-development and encourages
Projects India Private Limited, Hyderabad. The EPC training institutes to pursue continual excellence.
contractor had started working on the project on 10th of NACIN has registered f or undergoing
June 2022. The foundation stage of all the buildings has accreditation process as envisaged under
been completed. The construction for the phase I is likely National Standards of Civil Service Training
to be completed by July 2023.
Institutions (NSCSTI) and would be shortly
The NACIN Palasamudram is the only major National undergoing the exercise of filing application and
Project under Mission Karmayogi which is scheduled to self-assessed questionnaire along with requisite
be inaugurated as part of the Azadi ka Amrit Mahotsav. It documents based on which assessment process
is a flagship project of the Ministry of Finance and would begin
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ii. iGOT Karmayogi is a made in India digital ii. SOPs for effective and timely handling of court
Platform offering services around Learning and cases on disciplinary matters to protect the
Career Management. iGOT Karmayogi is one of interests of the government were issued to all
the aspects of Mission Karmayogi and basically field formations;
is a platform where Learning Management
iii. Sensitization of all IOs on the option to invoke
System (LMS) is developed by CBC.
the existing Departmental Inquiries (Enforcement
NACIN has published content on few topics on of Witnesses & production of Documents) Act
Customs and Indirect Taxation on iGOT portal. by Inquiry Authorities to secure the attendance
Capacity Building Commission (CBC), in of the witnesses, as the same is not being
December 2022, has empanelled six firms for invoked by the Inquiry Authorities due to lack of
development of e-learning content for various awareness about this provision;
departments. NACIN is in the process of iv. Structured interaction through video conferences
developing the content on other remaining topics with Disciplinary Authorities and Inquiry Officers
with the help of expert services of the empanelled to take stock of the pendency position and
IDAs. nudging them to expeditious finalization of the
proceedings;
3.14 DIRECTORATE GENERAL OF VIGILANCE:
v. Close monitoring to ensure timely implementation
3.14.1 The vigilance work in CBIC is administered and
of penalty orders passed on conclusion of
supervised by the CVO through the twin wings of the disciplinary proceedings;
vigilance set up of CBIC, viz Directorate General of
Vigilance (DGoV) and Ad.V Section in the CBIC. 3.14.3 ACHIEVEMENTS:
3.14.2 INITIATIVES TO IMPROVE PERFORMANCE: The above measures have contributed to the
exponent ial improv ement in the year-on-year
In 2022, concerted efforts have been made to performance of DGoVin vigilance matters. There has
spruce up vigilance administration in CBIC in the current been a high rate of disposal in the key vigilance related
year, namely: work areas, such as finalization of inquiries, submission
of cases to UPSC and issuance of final orders etc., which
A. Improvement in business processes:
has been appreciated also by CVC in their review
i. Instructions for effectively and timely handling of meetings, wherein disposal of cases in Block Years 2000-
court cases on disciplinary matters in Central 2010, 2011-2018 and 2019 to date were taken up for close
Administrative Tribunals/High Courts/Supreme scrutiny. The major achievements in 2022 (From 1.1.2022
Courts to protect the interest of the Government to 31.12.22) are given below:
dated 09.03.2022
YEAR ON
ii. Instructions on updation of data on e-seva vivad YEAR
portal in Vigilance matters dated 06.04.2022 S.No. KEY AREA OF WORK PROGRESS
iii. SOPs dated 07.10.2022 for conducting Vigilance 2021 2022

Audits of field formations issued. 1 Final Orders issued on 296 344
conclusion of Disciplinary
iv. SOPs dated 12/04.2022 for timely completion of Proceedings
vigilance matters issued.
2 Prosecution sanctioned 69 106
B. Pro-active steps to sensitize field formations
3 Complaints Handled 1401 970
and moni tor p rogress of Disciplin ary
Proceedings: 4 Vigilance clearance given 1834 2183
(references)
In 2022, some of the notable efforts made to
sensitize field formations on various aspects of disciplinary In 2022, 282 Departmental inquiries were
proceedings included: completed, and they are at different stages of Disciplinary
i. DGoV has published two publications i.e. Proceedings.
“Referencer for Vigilance officers -2022” and These initiatives would further contribute to
“Handbook for Vigilance Administration-2022” enhancing CBIC’s image as a responsive and efficient
covering wider aspect of Vigilance administration administration and would also improve our compliance
in CBIC for the guidance of its Officers. commitments to CVC.
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4. Revenue Headquarters Administration  Chairman, Vice Presidents and Members of

CESTAT
4.1 Administration
 Chairman, Vice Chairman and Members of
The Revenue Headquarters looks after matters
CCESC
relating to all administrative work pertaining to the
Department, coordination between the two Boards (CBIC  Director General of CEIB
and CBDT), the administration of the Indian Stamp Act
 Director of Enforcement
1899 (to the extent falling within the jurisdiction of the
Union), the Central Sales Tax Act 1956, Goods and  Competent Authorities (SAFEMA and NDPS)
Services Tax (GST) Act, 2017, the Narcotic Drugs and
 Director (FIU-IND)
Psychotropic Substances Act 1985 (NDPS), the
Smugglers and Foreign Exchange Manipulators  Chairperson and Member of Adjudicating
(Forfeiture of Property) Act 1976 (SAFEMA), the Foreign Authority set up under PMLA
Exchange Management Act 1999 (FEMA), the  Chairman and Members of "Appellate Tribunal"
Conservation of Foreign Exchange and Prevention of
established under SAFEMA, 1976.
Smuggling Activities Act, 1974 (COFEPOSA), the
Prevention of Money Laundering Act, 2002 (PMLA) and  CVO, CBDT/ CBIC/ ED
matters relating to the following attached/subordinate
offices of the Department: 4.2 Directorate of Enforcement
a. Enforcement Directorate 4.2.1 Introduction
b. Central Economic Intelligence Bureau (CEIB) 4.2.1.1 The Directorate of Enforcement (ED) is the
premier law enforcement agency of the Government of
c. Competent Authorities appointed under SAFEMA
India which has been entrusted with the administration
and NDPS
and enforcement of the Prevention of Money Laundering
d. Chief Controller of Factories Act, 2002 (PMLA), Foreign Exchange Management Act,
1999 (FEMA) and the Fugitive Economic Offenders Act,
e. Central Bureau of Narcotics
2018 (FEOA). ED is the nodal agency for collection of
f. Customs, Excise and Service Tax Appellate intelligence, carrying out research and analysis and
Tribunal (CESTAT) conducting financial investigation for cases involving
money laundering, bank frauds, financial scams, foreign
g. Appellate Tribunal under SAFEMA
exchange violations etc. Under the provisions of PMLA,
h. Customs and Central Excise Settlement the officers of ED investigate and prosecute the persons
Commission (CCESC) involved in money laundering, attach the proceeds of
i. National Committee for Promotion of Social and crime and carry out international cooperation with
Economic Welfare competent authorities in foreign jurisdictions including
recovery of assets stashed abroad and extradition of
j. Financial Intelligence Unit, India (FIU-IND) fugitives. ED is also entrusted with the responsibility to
k. Adjudicating Authority under Prevention of Money investigate, adjudicate and impose penalty if any person
Laundering Act violates the provisions of FEMA and launch prosecution
in appropriate cases.
l. National Institute of Public Finance and Policy
(NIPFP) 4.2.1.2 In the recent past, the work of Directorate of
Enforcement has increased considerably both
The following items of works are also undertaken
qualitatively and quantitatively. Investigations have
by the Headquarters:
commenced in several high-profile cases with positive
results in terms of attachment and confiscation of
Appointment of -
proceeds of crime related to bank fraud, corruption, drugs
 Chairman and Members of CBIC and CBDT & human trafficking and terror financing etc.
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4.2.2 Functioning of the Directorate and issues Show Cause Notices (SCN) in cases where
the allegations of contravention of provisions under FEMA
4.2.2.1 The primary function of the Directorate of
are notices. These SCNs upon adjudication results in
Enforcement is administration and enforcement of the
imposition of penalty as well as confiscation of currency/
Prevention of Money Laundering Act, 2002 (PMLA)
property involved.
including investigation into the offence of money
laundering, filing of prosecution complaint before the 4.2.2.3 The Directorate of Enforcement has also been
special court against the accused, attachment and entrusted with the implementation of the Fugitive
confiscation of property involved in money laundering, Economic Offenders Act, 2018 (FEOA). The FEOA
carrying out international cooperation with competent provides for the measures to deter the fugitive economic
authorities in foreign jurisdictions ensuring that the offenders from evading the process of law in India by
accused persons do not enjoy the proceeds of crime. staying outside the jurisdiction of Indian Courts and to
Unlike in many other countries, in India, ED has the sole preserve the sanctity of the rule of law in India. Action
jurisdiction to investigate the money laundering cases and under the said Act can be initiated against economic
the Law Enforcement Agencies (LEAs) having the offenders who have left India so as to avoid criminal
responsibility to investigate a "predicate offence", prosecution or who, being abroad, refuse to return to India
including the State Police Authorities, are required to to face criminal prosecution and the total amount involved
make a reference to ED to examine the money laundering in the economic offence is more than Rs. 100 crore.
aspect of the criminal activity. In certain cases, the fact
that a predicate offence has taken place is also obtained 4.2.3 Organizational Structure
from publicly available sources or on receipt of information
4.2.3.1 The Directorate of Enforcement is headed by the
from the Financial Intelligence Unit (FIU). On receipt of
Director, who is not below the rank of Additional Secretary
the reference or information and after making certain
to the Government of India. He is assisted in his work at
preliminary verification, ED records a case and initiates
the Headquarters by officers of all ranks. Sanctioned
investigation (Enforcement Case Information Report or
strength of 04 Special Directors, 11 Additional/Joint
the ECIR) following a risk based approach taking into
Directors and a number of other officers/staff is available
consideration factors such as materiality of the offence,
in HQ to assist the Director, ED. The Headquarter office
transnational nature of the crime, complexity of the case,
(HQ) of ED is situated in New Delhi. The functional
the larger public interest and the availability of resources.
establishment of ED is divided into 05 Regions located
Investigation under PMLA generally covers collection of
at Chandigarh (Northern Region), Chennai (Southern
information/evidence from public domain, other
Region), Delhi (Central Region), Kolkata (Eastern Region)
investigating agencies (Predicate Offence Investigating
and Mumbai (Western Region). Each region is headed
Agency (LEAs), Income Tax Department, Customs and
by a Special Director. Apart from the above Regions,
Indirect Tax Department, Ministry of Corporate Affairs,
special units named as Headquarters Investigation Units
Serious Fraud Office, SEBI, etc.), financial institutions,
(HIUs) and Special Task Force (STF) headed by the
banks, District Sub Registrar office, etc. as well as using
Special Director are also functioning at the Headquarters
investigative tools as provided under PMLA. Identification
office. Regions are constituted by Zone(s) headed by
and quantification of proceeds of crime and involvement
Additional Directors/Joint Directors and Sub-Zone(s)
of person/ entities in any process or activity connected
headed by Deputy Directors. Sub-Zones are controlled
with proceeds of crime are main requirements for proving
by respective Zones.
offence of money laundering as well as for punishment
for money laundering offence. 4.2.3.2 Details of functions performed in HQ are as
follows:
4.2.2.2 The Directorate of Enforcement is also entrusted
with the implementation of the Foreign Exchange Establishment: The headquarters office is the main office
Management Act, 1999 (FEMA) whose object is to dealing with work related to the matters of establishment,
consolidate and amend the law relating to foreign recruitment, transfer and posting, etc. All Human
exchange for facilitating external trade and payments and Resource related work including maintaining incumbency
for promoting the orderly development and maintenance position of officers/staff; filling up vacant posts by issuing
of foreign exchange resources. ED initiates investigations vacancy circulars/making correspondence with UPSC,
142
SSC etc.; extension of deputation tenure of officers; Adjudication: This section handles adjudication of FEMA
holding of DPC, departmental examination, Selection of cases and Penalty recovery.
Legal Consultants, etc.; framing and amendment of
Recruitment Rules is being handled in this section. Legal: This section handles Appeal /Writ Petition matters
of Supreme Court; filing of appeals before Appellate
Admin and Accounts: All administration and accounts Tribunal for Foreign Exchange (ATFE); matters of
related work including preparation of office budget and Attachment Orders before Adjudicating Authority under
allocation of funds to field formations; management of PMLA; review of Adjudication Orders passed by Joint
office expenses; procurement/lease/contract of vehicles, Directors and above; legal vetting; dealing with references
office equipment and office premises etc.; processing of from Ministries on legal issues/Law relating to FEMA,
bills and financial approvals; posting of sepoys, drivers, PMLA and FEOA; tracking of work of Prosecutors/
DEOs, MTS in HQ; processing of leave applications and Advocates in Courts; empanelment of Advocates etc.;
Medical bills; issuance of Departmental IDs; salary, GPF, giving legal opinion in investigative and other matters;
pension, gratuity, leave encashment, etc.; management drafting/vetting of PAOs, PCs, affidavits, appeals, LRs,
of SSF; etc. are being handled in this section. extradition requests etc.; appearance before the
Vigilance: All vigilance related work including disciplinary Adjudicating Authority, Appellate Tribunal and Courts on
proceedings of Group 'A' officers and officials of behalf of the Directorate; Monitoring of court cases and
Headquarters Office; CAT Cases; High Court/ Supreme legal issues at all India level etc.
Court matters of Establishment; Property Returns and Headquarters Investigation Units (HIU): The HIUs were
ACRs of all the officials of the Directorate, and Public
created at Headquarters of ED in the year 2012 for
grievances); Processing of Immovable Property Returns;
investigating sensitive and important cases.
Vigilance Clearance, Vigilance Complaints, Disciplinary
Proceedings, preparation of Agreed List and ODI List, STF: The Special Task Force (STF) has been constituted
etc. are being handled by this section. at Headquarters office of the Directorate, specifically to
carry out quality investigation in cases related to Drug
Coordination: The work handled by this section includes
Trafficking, Terrorist Financing and the Unlawful Activities
compilation of monthly and other reports from Regions
(Prevention) Act (UAPA), 1967.
and Zones; Processing of antecedent verification on
behalf of Directorate; Monitoring of recording of ECIR in Overseas Investigation Unit (OIU): This section deals
coordination with Regions/Zones and predicate agencies; with the overseas enquiries and other matters relating to
Compilation and dissemination of ML-1 and ML-2 reports; cooperation with foreign countries with whom India has
Parliament Questions; Attending and replying to all RTI got mutual assistant arrangements through MLATs etc.;
applications as well as appeals filed before the Appellate coordination related to formal and informal cooperation
Authority; etc. with foreign authorities including preparation of LRs and
Intelligence: The work handled by this section include Extradition requests; all forms of international cooperation
handling of all non-vigilance complaints related to PMLA/ including matters relating to G20-ACWG, UNODC, ARIN-
FEMA etc.; dealing with COFEPOSA matters, handling AP, World Bank, StAR Initiative, Asset Recovery etc.;
CVC/CEIB/IB/Cabinet Secretariat/other LEA referred processing of international meetings and trainings; etc.
matters including terror financing; Dealing with FIU,
Systems and Training: This section handles all matters
Egmont requests and bulk requests; Examination of STRs
relating to information technology, electronics, internet/
and dissemination to Regions/Zones/Sub-zones
intranet, coordination with NIC, installation and
concerned and obtaining feedback on the same; Matters
management of IT related software/hardware, running
relating to ICJS; obtaining Customer Application Form
and managing the Cyber Lab, computerization project,
(CAF) and Call Data Record (CDR); Surveillance work in
etc. It also conducts trainings of officers of the Directorate.
terms of MHA guidelines; etc.
4.2.3.3 Organizational Structure at Regional, Zonal and
Investigation: The work handled by this section includes
Sub-zonal Offices: The present structure of all the
monitoring the investigation of cases by Zones and
Regional, Zonal and sub-zonal offices of the Directorate
coordination with other agencies in ongoing investigation
is tabulated hereunder:
cases.
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S.No. Regions Zones Sub-zones

1. Western Region Mumbai -I
Mumbai -II Nagpur
Ahmedabad Surat
Bhopal Indore
Panaji
Raipur
2. Northern Region Chandigarh -I Shimla
Chandigarh -II Dehradun
Gurgaon (Gurugram)
Jalandhar
Jaipur
Srinagar Jammu
3. Southern Region Chennai -I
Chennai -II Madurai
Hyderabad Visakhapatnam
Kochi Kozhikode
Bengaluru Mangalore
4. Central Region Delhi -I
Delhi -II
Patna
Lucknow Allahabad (Prayagraj)
Ranchi
5. Eastern Region Kolkata -I
Kolkata -II Gangtok
Bhubaneshwar
Guwahati -I
Guwahati -II Agartala
Aizawl
Imphal
Itanagar
Kohima
Shillong
(a) Western Region: The Region is having its office is located at Delhi. It comprises of 05 Zones
at Mumbai. The Region comprises of 06 Zones, namely Delhi-I, Delhi-II, Lucknow, Patna and
namely, Mumbai-I, Mumbai-II, Ahmedabad, Ranchi and 01 Sub-Zone viz. Allahabad
Bhopal, Panaji (Goa) & Raipur and 03 Sub- (Prayagraj) Sub-Zone falling under Lucknow
Zones, namely, Nagpur under Mumbai-II, Surat Zone.
under Ahmedabad and Indore under Bhopal.
(e) Eastern Region: The Region is having its Office
(b) Northern Region: The Region is having its office at Kolkata. It comprises of 05 Zones, namely,
situated at Chandigarh. The Region comprises Kolkata-I, Kolkata-II, Bhubaneshwar, Guwahati-
of 06 Zones, namely Chandigarh-I, Chandigarh- I & Guwahati-II and 07 Sub Zones namely
II, Gurgaon (Gurugram), Jalandhar, Jaipur and Gangtok under Kolkata-II and other six sub-zones
Srinagar and 03 Sub-Zones, namely, Shimla i.e. Agartala, Aizawl, Imphal, Itanagar, Kohima
under Chandigarh-I, Dehradun under and Shillong, all under Guwahati-II.
Chandigarh-II and Jammu under Srinagar.
4.2.3.4 The Regional Special Directors are assigned with
(c) Southern Region: The Region is having its office the role of supervising and monitoring the overall working
at Chennai. It comprises of 05 Zones, namely and functioning of the Zonal offices of the Directorate
Chennai-I, Chennai-II, Bengaluru, Kochi and located at various cities within the Region and other
Hyderabad and 04 Sub-Zones, namely, Madurai administrative/vigilance matters. Similarly, the Zonal
under Chennai Zone-II, Mangalore under Additional/Joint Directors are responsible for the overall
Bengaluru, Kozhikode under Kochi and supervision and functioning of the FUs under their
Vishakhapatnam under Hyderabad. jurisdiction including the Sub-zones. The Sub-zonal
offices are headed by Deputy Directors and they report
(d) Central Region: The office of the Central Region to the Zonal Additional/Joint Directors.
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4.2.3.5 The offices of the Directorate of Enforcement Explanation. — For the removal of doubts, it
located all over India ensures that the money laundering is hereby clarified that,-
offences are investigated in an effective manner and it
also acts as deterrence for the potential offenders. (i) a person shall be guilty of offence of
money-laundering if such person is found to
4.2.3.6 Considering the strategic importance of North- have directly or indirectly attempted to
East Region, Directorate of Enforcement has indulge or knowingly assisted or knowingly
strengthened its presence and intensified anti-money is a party or is actually involved in one or
laundering activities including cross border financial more of the following processes or activities
crimes, international hawala, terror financing and drugs connected with proceeds of crime, namely:-
trafficking. The Directorate has set up offices in all the
seven sisters of North-East (07 states under North- (a) concealment; or
Eastern Region). (b) possession; or
4.2.4 Offence of Money Laundering (c) acquisition; or
4.2.4.1 Section 3 of the PMLA criminalizes the offence (d) use; or

of money laundering related to a wide range of criminal (e) projecting as untainted property; or
offences listed in the schedule to the PMLA. These
offences include participation in an organized criminal (f) claiming as untainted property,
group and racketeering, terrorism and terrorist financing, in any manner whatsoever;
illicit trafficking in narcotics drugs and psychotropic
substances, illegal human trafficking, illicit arms (ii) the process or activity connected with
trafficking, illicit trafficking in stolen goods, corruption and proceeds of crime is a continuing activity and
bribery, fraud, counterfeiting and piracy of products, continues till such time a person is directly
environmental crimes, kidnapping, robbery, smuggling, or indirectly enjoying the proceeds of crime
extortion, forgery, piracy and insider trading and market by its concealment or possession or
manipulation. These offences listed in the schedule are acquisition or use or projecting it as untainted
called "predicate offences" and section 3 of the PMLA property or claiming it as untainted property
states that whoever is directly or indirectly involved or in any manner whatsoever.".
associated with any process or activity connected with
"proceeds of crime" related to these criminal activity will 4.2.4.3 Thus, after this amendment, it is not necessary
be guilty of the offence of money laundering and is liable that for committing an offence of money laundering, the
for punishment with rigorous imprisonment of three to person concerned should project or claim the proceeds
ten years under section 4 of the PMLA. of crime as untainted property, it is enough if he is directly
or indirectly involved in any process of activity connected
4.2.4.2 The scope of section 3 has been widened over with the proceeds of crime including its concealment,
the years following a risk based approach to ensure that possession, acquisition or use. Thus, the definition of the
each and every kind of money laundering offence is offence of money laundering is in full compliance with
covered under the provisions and the "proceeds of crime" Article 3(1)(b) and 3(1)(c) of the Vienna Convection and
are not enjoyed with any person who could in any way Article 6(1) of the Palermo Convention.
connected to the underlying criminal activity. Through the 4.2.4.4 Further, it has been clarified that the money
Prevention of Money Laundering (Amendment) Act, 2012, laundering cannot be interpreted as a one-time,
section 3 was amended in the following manner with effect instantaneous offence that ceases with the concealment
from 15th February, 2013 or possession or acquisition or use or projection of the
proceeds of crime as untainted property or claiming it as
"Whosoever directly or indirectly attempts to
untainted. A person shall be considered guilty of the
indulge or knowingly assists or knowingly is a
offence of money laundering for as long as the said
party or is actually involved in any process or
person is enjoying the "proceeds of crime".
activity connected with the proceeds of crime
including its concealment, possession, 4.2.4.5 The offence of money laundering applies to
acquisition or use and projecting or claiming it "whosoever" and thus includes a person who commits
as untainted property shall be guilty of the offence the predicate offence, if that person is knowingly involved
of money laundering." in the laundering of the proceeds and thus the offence of
"self-laundering" is covered in the definition. The term
In addition, through the Finance (No. 2) Act, 2019, the "whosoever" in its generality also covers any "person"
following Explanation was added in section 3 of the PMLA which is defined in section 2(s) of the PMLA to include
with effect from 1st August, 2019, an individual and all forms of companies, firms,
145
associations and legal persons, which includes laundering evidencing title to, or interest in, such property or assets,
by third parties. Thus, the legal persons are also covered wherever located. Through the Prevention of Money
and are liable to be fined under the provisions of PMLA. Laundering (Amendment) Act, 2012, an Explanation has
Section 70 of the PMLA provides that where the violation been added in section 2(1)(v) and it has been clarified
of the Act is committed by a company, both the company for the removal of doubts that the term "property" includes
and the individuals in charge of the company will be property of any kind used in the commission of an offence
deemed to be guilty of that contravention unless they did under the PMLA or any of the scheduled offences.
not have the knowledge of contravention or they have
4.2.4.9 A wide range of criminal offences have been
exercised all due diligence to prevent it.
listed in the schedule to the PMLA and are the "predicate
4.2.4.6 The term "proceeds of crime" has been defined offence" for the purposes of investigation of the offence
in section 2(1)(u) of the PMLA to mean any property of money laundering and attachment/confiscation of the
derived or obtained, directly or indirectly, by any person proceeds of crime. The list of predicate offences under
as a result of criminal activity relating to a scheduled the PMLA have been expanded over the years based on
offence or the value of any such property or where such a Risk Based Approach and the same has been
property is taken or held outside the country, then the summarized below:-
property equivalent in value held within the country or
abroad. Many a times the proceeds of crime is consumed Sl. Amending Act Modification in the
or expended or transferred outside India by the accused No. Scheduled Offence
persons and is not available for confiscation. In order to 1. The Prevention of Addition of Part C in the
deal with such situation, the concept of equivalent value Money-Laundering Schedule to include an
of such property which is not available for confiscation Amendment Act, offence of cross-border
has been provided under section 2(1)(u) of the PMLA. It 2009 w.e.f. 1.6.2009 implications and which
may be noted that the provision for equivalent value of are specified in Part A
property held within India, which may be attached/ of the Schedule and the
confiscated by Directorate of Enforcement, if the proceeds offences against
of crime is taken or held outside India was introduced property under Chapter
through the Finance Act, 2015, with effect from 14th May, XVII of the Indian penal
2015, and its scope was further widened to property held Code
abroad through the Finance Act, 2018, with effect from 2. Finance Act, 2015 Addition of Section 132
19th April, 2018. (w.e.f. 14.5.2015) of the Customs Act,
4.2.4.7 Through the Finance (No. 2) Act, 2019, the 1962, relating to false
declaration, false
following Explanation was added in section 2(1)(u) of the
documents etc. with a
PMLA with effect from 1st August, 2019
monetary limit of Rs. 10
"'Explanation.-For the removal of doubts, it is million
hereby clarified that "proceeds of crime" include
3. Finance Act, 2018 Addition of Section 447
property not only derived or obtained from the
(w.e.f. 19.4.2018) of the Companies Act,
scheduled offence but also any property which
2013 relating to
may directly or indirectly be derived or obtained
Punishment for Fraud
as a result of any criminal activity relatable to
the scheduled offence;'." 4. Black Money Section 51 of the Black
(Undisclosed Money (Undisclosed
Thus, the scope of the expression "proceeds of crime" Foreign Income and Foreign Income and
has been widened significantly and would not only include Assets) Imposition Assets) Imposition of
properties derived or obtained from the scheduled offence of Tax Act, 2015 Tax Act, 2015
but also any property which may directly or indirectly be w.e.f. 1.7.2015
derived or obtained as a result of any criminal activity
relatable to the scheduled offence. Thus, the money 4.2.4.10 In addition, the PMLA was amended through
laundering offences can be investigated independently the Prevention of Money Laundering (Amendment) Act,
without necessarily requiring investigation of predicate 2009 with effect from 1st June, 2009, to add Part C in the
offence. schedule to provide that the predicate offence would
include all the offences specified in Part A and also the
4.2.4.8 It may be noted that the term "property" has also offences against property under Chapter XVII of the IPC,
been defined widely in section 2(1)(v) of the PMLA and if the offence has a cross-border implication. Offences
means any property or assets of every description, of cross-border implications means any conduct by a
whether corporeal or incorporeal, movable or immovable, person outside India which constituted an offence at that
tangible or intangible and includes deeds and instruments place and which would have constituted an offence
146
specified in the schedule to the PMLA had it been Directorate of Enforcement, or any other officer authorized
committed in India and if such person transfers in any by him not below the rank of Deputy Director, to carry out
manner the proceeds of such conduct or part thereof to search and seizure operation and seize any record or
India. Thus, the predicate offences for money laundering property found during the search. If it is not practicable
also extend to conduct that occurred in another country to seize such record or property, the officer concerned
which constitutes an offence in that country and which may make an order to freeze the property prohibiting its
would have constituted a predicate offence had it occurred transfer. Section 18 of the PMLA gives powers to the
domestically. Accordingly, if the proceeds of crime relate officers of Directorate of Enforcement to search a person
to drug trafficking in a foreign jurisdiction and the same and seize any property. In the case of seizure/freezing
is laundered in India, action can be taken under the under sections 17 and 18 of the PMLA, the authorities
provisions of the PMLA including attachment/confiscation concerned are required to make an application to the
of properties. Adjudicating Authority for retention of such record or
property or for continuing the order of freezing.
4.2.4.11An amendment in section 44 of the PMLA was
also carried through the Finance (No. 2) Act, 2019, to 4.2.5.4 The Adjudicating Authority is a quasi-judicial body
clarify for the removal of doubts that the jurisdiction of comprising of a chairperson and two other members. On
the Special Court, while dealing with an offence under receipt of a complaint under sections 5 or 17 or 18 of the
the PMLA, will not be dependent upon any order passed PMLA, if the Adjudicating Authority has reason to believe
in respect of the schedule offence. Thus, even if a that any person has committed an offence under section
accused is discharged/acquitted from scheduled offence, 3 of the PMLA or is in possession of proceeds of crime, it
the trial for the offence of money laundering will continue. may serve a notice of not less than 30 days on such
This also means that while proving the property as the person calling upon him to indicate the sources of his
proceeds of crime, it is not necessary that a person be income, earning or assets, out of which or by means of
convicted of a predicate offence. It has also been clarified which he has acquired the said property, the evidence
through Finance Act (No. 2) of 2019, for the removal of on which he relies and other relevant information and
doubt, that the offence of money laundering are particulars, and to show cause why all or any of such
cognizable and non-bailable offences and thus the officers properties should not be declared to be the properties
of the Directorate of Enforcement have the powers to involved in money-laundering and confiscated by the
arrest subject to certain conditions. Government.
4.2.5 Attachment and Confiscation 4.2.5.5 The Adjudicating Authority after taking into
consideration the above reply, hearing the aggrieved
4.2.5.1 Section 5 of the PMLA provides that where the person(s) and the officers of the Directorate of
Director, Directorate of Enforcement, or any other officer Enforcement, and after taking into account all relevant
not below the rank of Deputy Director authorized by him, material, records a finding whether the properties are
has reason to believe (the reason for such belief to be involved in money laundering.
recorded in writing), on the basis of material in his
possession, that (a) any person is in possession of any 4.2.5.6 After the Adjudicating Authority decides that the
proceeds of crime and (b) such proceeds of crime are property is involved in money-laundering, it confirms the
likely to be concealed, transferred or dealt with in any order of attachment/freezing and gives a finding that the
manner which may result in frustrating any proceedings attachment shall continue during the investigation for a
relating to confiscation of such proceeds of crime, he period not exceeding 365 days or during the pendency
may, by order in writing, provisionally attach such property of the proceeding related to any offence under the PMLA
for a period not exceeding 180 days from the date of the before a Court, including foreign Courts. Thus, after the
order. order of the adjudicating authority, the attachment/freezing
continues during the investigation and will also continue
4.2.5.2 After the attachment, the officer concerned is after filing of a prosecution complaint till the matter is
required to forward a copy of the attachment order along finally decided by the Court.
with the material in his possession to the Adjudicating 4.2.5.7 The order of confiscation is passed by the Special
Authority for adjudication. The attachment will cease to Court under section 8(5) of the PMLA after conclusion of
have effect after the expiry of 180 days or after the order
the trial for the offence of money laundering and all rights
of adjudication, whichever is earlier. The period of stay and title in the property vest absolutely in the Central
by the High Court, however, shall be excluded for Government free from all encumbrances. However, after
computing the period of 180 days. During the period of the confirmation of the attachment/freezing by the
attachment, however, the persons interested in the
Adjudicating Authority, a quasi-judicial body, it is provided
enjoyment of the immovable property so attached is not in section 8(4) of the PMLA that the officers of the
prevented from such enjoyment. Directorate of Enforcement will take possession of the
4.2.5.3 Section 17 of the PMLA gives power to Director, property attached and thus it is ensured that the offenders
147
do not enjoy the "proceeds of crime". Thus, after committing the offence of money laundering or part of it
confirmation of attachment/freezing by the Adjudicating or the offence itself has been committed outside the
Authority, it no longer remains only a "provisional country or the witnesses and other material evidence are
measure" as the property is not available to the criminals. available in another country, it may be necessary to gather
information or conduct formal investigation abroad.
4.2.5.8 Any person aggrieved with the order of
Adjudicating Authority, including the officers of the 4.2.7.2 Generally, the basis for seeking Mutual Legal
Directorate of Enforcement, can file an appeal within 45 Assistance from a Contracting State is the Mutual Legal
days before the Appellate Tribunal, another quasi-judicial Assistance Treaty in Criminal Matters (MLAT). As of now,
authority under section 26 of the PMLA and the Appellate India has signed MLAT with 45 countries. Mutual Legal
Tribunal after giving the parties to the appeal an Assistance can also be sought on the basis Multilateral
opportunity of being heard may pass such orders thereon Treaties, such as, United Nation Convention against
as it thinks fit, confirming, modifying or setting aside the Corruption (UNCAC) or United Nation Convention on
order appealed against. Any person aggrieved with the Transnational Organized Crime (UNCTOC). Where there
order of Appellate Tribunal may file an appeal to the High is no such treaty the request can be made on the basis
Court within 60 days on any question of law or fact arising of mutual assurance of reciprocity. These requests are
out of such order. normally made through the Special Courts under section
57 of the PMLA although under the MLAT or the
4.2.6 Investigation, Prosecution and Conviction multilateral treaties, the requests need not be routed
4.2.6.1 Under the PMLA, the officers of the Directorate through the Courts.
of Enforcement have wide range of powers to investigate 4.2.7.3 If an order of attachment/freezing/confiscation
the offence of money laundering and for attachment/ has been issued by the officers of the Directorate of
freezing and confiscating the proceeds of crime. These Enforcement and the said property is suspected to be in
include powers of summons, survey, search and seizure, a foreign jurisdiction, the Special Court may issue a letter
search of persons, arrest etc. The officers of various other of request to a court or an authority in the foreign
departments such as officers of CBIC, CBDT, police, RBI, jurisdiction for execution of such order.
SEBI, IRDA etc. are empowered and required to assist
the officers of the Directorate of Enforcement in the 4.2.7.4 The Directorate of Enforcement also provides
enforcement of PMLA. assistance to foreign jurisdictions and investigates the
offence of money laundering by carrying out necessary
4.2.6.2 After registering the complaint, at the first inquiries if a request is received from a Court or authority
instance, the officers of Directorate of Enforcement in the said foreign jurisdiction. It may also attach, seize,
identify, quantify and trace the "proceeds of crime". They freeze, or confiscate the property in India derived or
also collect the evidence relating to the commencement obtained, directly or indirectly, by any person from the
of the offence, which may comprise of information commission of an offence under the corresponding law
received from predicate agency on parallel financial committed in the foreign jurisdiction if a request is
investigation, examination of accused, other persons received from a Court or authority in the said foreign
associated with the offence and third parties, reduction jurisdiction.
of their statement in writing, carrying out survey and
search etc. They provisionally attach the properties 4.2.8 Performance of Directorate of Enforcement
identified as "proceeds of crime" and file a complaint in the area of PMLA
before the Adjudicating Authority. In appropriate cases, 4.2.8.1 During the Financial Year (F.Y.) 2022-23 (up to
joint investigation in collaboration with the predicate 30.11.2022), the Directorate has taken up investigations
agency is also conducted. under the provisions of PMLA in 363 cases. Total number
4.2.6.3 After carrying out the necessary investigation, the of investigations initiated by the Directorate is 5785 as
Directorate of Enforcement also file a Prosecution on date.
Complaint before the Special Courts constituted under 4.2.8.2 As on date, the Directorate has identified
section 43 of the PMLA, who takes cognizance of the proceeds of crime amounting to Rs. 1,85,213 crores
offence of money laundering committed under section 3 (approx.). During F.Y. 2022-23 (up to 30.11.2022), the
of the PMLA. After trial in the Special Court, the accused Directorate has attached proceeds of crime with the
is convicted and is punished in accordance with section aggregate value of Rs. 9092.84 crores by issuance of
4 of the PMLA. 133 Provisional Attachment Orders. The Proceeds of
4.2.7 International Cooperation Crime amounting to Rs. 1,13,793 crores have been
attached by issuance of 1588 Provisional Attachment
4.2.7.1 When proceeds of crime related to offence Orders as on date. Thus, 61.43% of the total identified
committed in India, is transferred in foreign jurisdictions, proceeds of crime stands attached as on date. The
or when accused person(s) has escaped from India, after Adjudicating Authority has confirmed attachment of
148
properties worth Rs. 8787.20 crores during this F.Y. up Moreover, extradition proceedings in case of high
to 30.11.2022. Thus, total amount of confirmed attached profile fugitive economic offenders are also being properly
properties by Adjudicating Authority as on date is Rs. followed up by the Directorate.
67,379 crores.
4.2.11 Performance of Directorate of Enforcement
4.2.8.3 During F.Y. 2022-23 (up to 30.11.2022), in the area of Extradition and Red Notice
Prosecution Complaints have been filed in 120 cases.
During the Financial Year 2022-23 (up to 30th
Total numbers of Prosecution Complaints filed under
November), the Directorate of Enforcement has made
PMLA is 1112 as on date.
requests for publishing of Red Notice in respect of 01
4.2.8.4 During F.Y. 2022-23 (up to 30.11.2022), the person. Further, a total of 02 Extradition requests have
Special Court, PMLA has ordered for confiscation of Rs. been sent to various countries. Till date, the Directorate
2.42 crore (approx.) and imposed a cumulative fine of of Enforcement has made requests for publishing of Red
Rs. 07.40 lakhs (approx.) on the accused. Further, Notice in respect of 36 persons, out of which Red Notice
proceeds of crime amounting to Rs. 45.55 crore (approx.) has been published in respect of 19 persons. A total of
has also been confiscated by the Special Court, PMLA 35 Extradition requests have been sent to various
under section 8(7) of PMLA. Thus, during the F.Y. 2022- countries in respect of 23 individuals.
23 (up to 31.12.2022) total confiscation amount under
PMLA is Rs. 47.97 crore (approx.). Further, the total ED is working tirelessly to extradite the fugitive
confiscation amount under PMLA, as on date is Rs. economic offenders who have evaded the process of law
15,623.40 crore (approx.). in India by staying outside the jurisdiction of Indian Courts.
The efforts of the Directorate have resulted in successful
4.2.8.5 During F.Y. 2022-23 (up to 31.12.2022), the representation before Competent Court abroad in
Directorate has secured 06 conviction orders in which extradition of various fugitive economic offenders. In this
12 accused have been convicted by the Special Court regard, it is pertinent to mention that UK Court has
PMLA. It is appropriate to mention here that as on date approved extradition of few high profile accused persons
the Directorate has secured 21 conviction orders wherein to India following effective representation of the
35 accused have been convicted. Further, in only one Directorate in coordination with other LEAs and Indian
case accused has been acquitted by Special Court, PMLA mission abroad.
on merit. Thus, it is pertinent to highlight that total
percentage of conviction is very high in PMLA cases which 4.2.12 Restitution of properties to Public Sector
is 95.45%. There are few cases wherein proceedings Banks
under PMLA could not proceed further due to quashing
ED is not only actively pursuing the economic
of the predicate offences investigated by Law
offenders to unravel the money laundering but at the same
Enforcement Agencies.
time is also making efforts for the restitution of assets to
4.2.9 Performance of Directorate of Enforcement the banks and others who have lost money. Vijay Mallya,
in the area of FEMA Nirav Modi and Mehul Choksi have defrauded Public
Sector banks by siphoning off the funds through their
During the Financial Year 2022-23 (up to 30th November),
companies which resulted in total loss of Rs. 22,585.83
the Directorate has initiated investigation in total number
crore to the public sector banks. As on 30.11.2022, assets
of 2521 cases under the provisions of Foreign Exchange
worth Rs. 19111.20 crore have been attached under the
Management Act, 1999 (FEMA). A total number of 261
provisions of Prevention of Money Laundering Act, 2002.
Show Cause Notice have been issued and 314 cases
Out of which, assets worth Rs.15113.91 crores has been
have been adjudicated during the period. Further, penalty
restituted to the Public Sector Banks. In addition, assets
of Rs. 2149.01 crores has also been imposed and penalty
worth Rs.764.44 crores have been confiscated to
amounting to Rs. 11.93 crore (approx.) have been realized
Government of India. As on 30.11.2022, 84.61 % of the
during the period.
total defrauded funds in these cases have been attached/
4.2.10 Performance of Directorate of Enforcement seized and 66.91% of total loss to the banks has been
in the area of FEOA handed over to Banks/Confiscated to GOI. It is pertinent
As on 30th November, 2022, ED has filed to mention here that till 30.11.2022, the consortium of
applications under FEOA against 15 persons, out of which banks led by SBI has realized Rs.7975.27 crore by sale
09 persons have been declared as Fugitive Economic of assets handed over to them by Directorate of
Offenders by the Competent Courts. Hon'ble Special Enforcement.
Court has ordered for confiscation of properties to the 4.2.13 Special Focus on Terror Financing
tune of Rs. 862.43 crores (all the Foreign Currency values
are converted to INR) respect of various accused. Hearing 4.2.13.1 The Directorate of Enforcement gives special
for confiscation of properties in respect of other declared focus on investigation of terror financing cases. The
FEOs is underway in the Competent Courts. terrorism cases under UAPA are investigated and
149
prosecuted by the National Investigation Agency (NIA) but also files Prosecution Complaints against the terror
under the NIA Act, 2008. However, the State Police accused under the PMLA.
Authorities also investigate the terrorism cases under
4.2.13.7 ED has taken strict action against terrorist
UAPA and also under various provisions of the IPC.
activities by way of registering several cases related to
4.2.13.2 The focus of investigation by the Police terror funding against anti-national elements and
Authorities are normally on criminal investigation such intensified money laundering investigation to trace and
as from where the arms have been received, how the deter the terror funding leading to unearthing of Proceeds
conspiracy has been hatched, who was the mastermind, of Crime (PoC) to the tune of more than Rs. 1200 Crores
what was the plot, what was the motive, who were (approx.). Out of these identified PoC, 169 (approx.)
involved etc. movable and immovable properties having book value
of Rs.1062 Crores (approx.) have been attached. The
4.2.13.3 The Directorate of Enforcement, after a
attached properties include both movable and immovable
reference is made to it by the police authorities, carries
properties of Rs. 858.73 Crores (approx.) in India and
out the financial investigation, including from where the
Rs.203.27 Crores (approx.) in abroad. In one of the case,
funds have been received, how the funds were layered
the accused has been declared as Fugitive Economic
into the banking channels, and if not through banking
Offender and the properties worth Rs. 97.99 Crores have
channels, whether it was from Hawala or Barter Trade or
been confiscated under the provisions of Fugitive
Trade Based Money Laundering. It also investigates, how
Economic Offenders Act, 2018 (FEOA). A total of 32
and to whom the funds were distributed and if the funds
prosecution complaints (Charge-sheets) have been filed
have been invested in some property, whether the
under the Prevention of Money Laundering Act, 2002 and
property still exist or is liquidated. Once the property is
in 03 cases the accused have been convicted by PMLA
identified, the Directorate of Enforcement provisionally
Special Court. Further, 10 accused have been declared
attaches the property and then takes possession after
proclaimed offender and 03 others have been declared
confirmation by the Adjudicating Authority. If the property
Fugitive Economic Offenders by the Special Courts.
is liquidated, equivalent amount of property, whether in
India or abroad, is attached. 4.2.13.8 Action against insurgent groups in the North-
East Region: In order to put a curb on the funding of
4.2.13.4 During investigation of cases related to terror
insurgency activities in the North-East Region, the
financing by ED, it has been found that the terrorists use
Directorate has taken up several investigations under the
a number of methods for funding including the following:
provisions of PMLA against some of the prominent
• Bank ing channels by receipt of foreign extremist groups such as NSCN (IM), NSCN (K), Dima
remittances Halam Daogah (Jewel Garolsa Faction).
• Authorized money transfer services such as 4.2.13.9 Action against Naxal funding in Bihar,
Western Union Jharkhand and Chhattisgarh: Strict actions under PMLA
• Hawala Payments have been taken against LWEs active in Bihar, Jharkhand
& Chhattisgarh leading to attachment of properties and
• Donations to NPOs/Social Welfare Organizations
filing of Prosecution Complaints in several cases. As on
• Barter Trade 30.11.2022, PoC amounting to more than Rs 18 crores
• Fake Indian Currency Notes has been identified in Naxal/LWE related cases out of
which, PoC amounting to Rs 10.37 crores involving 147
4.2.13.5 It may be noted that Barter Trade was properties (61 - movable and 86 - immovable) stands
allowed between India and Pak Occupied Kashmir, attached in 14 different PAOs. Further, 12 prosecution
across the Line of Control. This mode of trade was being complaints have been filed in Naxal/LWE related cases.
misused by the Pakistan based elements for illegal inflow 4.2.14 Proactive Steps taken by ED in other key
of narcotics, weapons and Fake Indian Currency Notes. areas of money laundering are as follows:
Huge seizures of narcotics have been affected from
concealments in the trucks being used in the name of (i) Stringent action in money laundering cases
trade across LOC. Besides, invoice manipulation was related to NDPS
being used for generating cash for terror funding. In NDPS related cases, as on 30.11.2022,
Therefore, the Barter Trade has been suspended by the Proceeds of Crime (PoC) amounting to Rs 1445.11 crores
Government of India, pending strict regulatory have been identified. Out of which PoC amounting to Rs
mechanism in April, 2019. 1132.78 crores stands attached in 49 different PAOs. Total
4.2.13.6 In terror financing cases, ED has a very 40 Prosecution Complaints including 03 supplementary
important role both in tracing the proceeds of crime and Prosecution Complaints have been filed before Special
its laundering by the terrorists. ED not only attaches the Court PMLA resulting in conviction in 02 cases convicting
Proceeds of Crime and takes possession of the same 06 accused persons. Further, 03 accused have been
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declared as Fugitive Economic Offender under the As on 30.11.2022, the Directorate has taken up
Fugitive Economic Offenders Act, 2018 by the Special investigation in 08 cases related to illegal sand mining
Court. which resulted in unearthing of proceeds of crime
amounting to Rs. 209.30 crore, out of which proceeds of
(ii) Special focus on Cyber Crime & Crypto
crime amounting to Rs. 205.80 crore has been attached/
Assets related cases
seized. Further, 02 prosecution complaints have also
The Directorate has taken vigilant steps in been filed in these cases which are at different stages of
tackling the threat of money laundering through Cyber trial.
Crime and Crypto assets related cases. As on 30.11.2022,
In cases related to illegal Coal mining, proceeds
investigation has been initiated in 37 Cyber Crime &
of crime amounting to Rs. 198.72 crore has been
Crypto Assets related cases which led to identification of
attached. Further, 05 Prosecution Complaints have been
Rs. 3412.18 crores as Proceeds of Crime under PMLA.
filed which are at different stages of trial and 01 accused
Out of which Rs.1115.65 crores has been attached/
has been declared as Proclaimed offender.
freezed/seized in different PAOs/seizure order/freezing
order issued by ED. Total 10 Prosecution Complaints have 39 cases related to illegal mining of other natural
been filed which are at different stages of trial. The action resources have been taken up for investigation by the
taken by ED is not limited to PMLA but alternate measures Directorate which resulted in identification of proceeds
under FEMA has also been explored by ED to curb the of crime amounting to Rs.2724.91 crore, out of which
fraudsters and assets amounting to Rs. 289.28 crores proceeds of crime amounting to Rs.2693.71 crore stands
has been seized under section 37A of FEMA. attached / seized. Further, 09 Prosecution complaints
have also been filed in these cases which are at different
(iii) Unearthing of modus operandi adopted by
stages of trial.
foreign entities / nationals
The Directorate of Enforcement has also taken
ED has played a pioneering role in unearthing of various
up investigation in 17 cases related to Environmental
modus operandi adopted by foreign entities / nationals in
crimes and 42 cases related to Wildlife crime cases which
looting the public money from gullible and innocent
resulted in attachment of proceeds of crime of Rs. 8.39
Indians. The method adopted by these unscrupulous
crore and Rs.122.55 crore respectively in Environmental
foreign entities / nationals are summarized below:
crime and wildlife crime cases. 07 Prosecution
• Fraud committed through various unauthorized Complaints have been filed in these cases which are at
loan apps, micro financing, lending apps. different stages of trial.
• Siphoning off Indian money away illegally in the (v) Cases related to SEBI, Hawala, Shell company
name of royalty payment. & Real estate
• Lack of KYC by payment aggregators and fintech The Directorate has taken up investigation in
companies. several cases related to Hawala which resulted in
• Online gaming/dating/betting applications unearthing of proceeds of crime amounting to Rs. 1635.97
promoted by foreign entities with the help of crore, out of which proceeds of crime amounting to Rs.
dummy Indian Directors. 379.38 crore has been attached / seized. Further, 27
prosecution complaints have also been filed in these
• Running app based tokens which promised cases which are at different stages of trial and 15 accused
higher gains in mining machines for bitcoin and have been declared as Proclaimed offender.
other cryptocurrency.
In SEBI related cases, proceeds of crime
• Running ponzi schemes through fake websites. amounting to Rs.1505.81 crore have been identified in
• Hawala through shell companies. 23 cases. Out of which proceeds of crime amounting to
Rs. 578.69 crore have been attached / seized. Further,
As a result of ED investigations, the Proceeds of 05 prosecution complaints have also been filed in these
Crime (PoC) around Rs.4000 crores has been identified, cases which are at different stages of trial and 07 accused
out of which PoC amounting to Rs.1275 crores has has been declared as Proclaimed offender.
already been attached under PMLA. However, further In cases related to Shell companies, proceeds
PoC and other similar networks are being identified under of crime amounting to Rs.47937.82 crore have been
the supervision of the Director, ED. identified, out of which proceeds of crime amounting to
(iv) Money laundering cases related to Sand Rs.39475.81 crore has been attached / seized. Further,
mining, Coal mining, Illegal mining of other natural 89 prosecution complaints have also been filed in these
resources, Illegal logging, Wildlife and Environment cases which are at different stages of trial and 06 accused
related cases have been declared as Proclaimed offender.
151
In cases related to Real-Estate, proceeds of the Directorate from 12th March, 2021. The
crime amounting to Rs. 13425.98 crore have been Mahotsav is being celebrated in this Directorate.
identified, out of which proceeds of crime amounting to
Rs. 9649.29 crore has been attached / seized. Further, (b) A Vigilance Awareness Week was also organized
26 prosecution complaints have also been filed in these by the Directorate during 31st October to 6th
cases which are at different stages of trial and 10 accused November, 2022 to create awareness among
has been declared as Proclaimed offender. staff to check corruption at every level so that a
corruption free society could be attained.
(vi) Money laundering cases having impact over
public at large (c) International Day of Yoga was celebrated on 21st
June, 2022 by all the offices of this Directorate.
In the recent past, the work of ED has increased
All the officers / officials of the Directorate
considerably both qualitatively and quantitatively.
participated with enthusiasm and zeal.
Investigations in cases involving bank frauds, corruption
in public life and others having impact over public at large (d) To ensure rational distribution of work, the
were fast tracked which also resulted in huge cash concept of Functional Unit has been introduced
seizure, arrest and filing of Prosecution Complaint within in each field of work across all the offices/
short period of 60 days. ED is working without fear or formations. For ensuring specialized, targeted
favour and the Rule of law is being applied to all accused and smooth working, each such unit is self-
irrespective of his or her position in Government or contained unit headed by an officer of the rank
society. Further, deterrence against future systemic bank of Deputy Director with clearly demarcated
frauds has been reinforced by expeditious investigation resources and responsibilities including
in several bank fraud cases including YES Bank, PMC investigation, administration, intelligence etc.
Bank, ICICI Bank, DHFL. These Functional Units were created vide order
Two of such cases caught the attention of whole dated 11.02.2021 and now the functioning of the
nation wherein ED recovered huge cash during its search same is streamlined and settled.
operation viz. cash of Rs. 19.31 crore was recovered and
seized in Jharkhand belonging to a high profile IAS officer. (e) Further, with a view to have unique designation
In another case of fraud to public at large in the SSC of Deputy Directors and Assistant Directors
recruitment scam in West Bengal, cash of Rs. 49.80 Crore posted in the various offices of the Directorate
has been seized from two premises connected with a of Enforcement and to ensure broad uniformity
sitting minister of the state government. In addition, in work allocation amongst the officers working
jewellery worth Rs. 5.08 Crore, bank balance of more in this Directorate, an order in this regard
than Rs. 8 Crore and more than 25 immovable properties specifying the designations and broad allocation
including land, farm house, residential flats, commercial of work was issued on 04.05.2021.
space and industrial plot have been unearthed and
(f) Designation based email IDs at all levels were
attached under PMLA. The total amount seized / attached
also created in the Directorate to ensure
in this case stands at Rs. 103.10 crores. Thus, the
continuity, credibility and to preserve the
staggering quantum of loot of public money has been
institutional memory. This has ensured
detected and prompt action taken by ED has not only led
definitiveness and accountability in official
to recovery of looted public money but also in exposing
communications.
the criminal nexus of PEPs and bureaucrats.
In the above cases and other similar cases where (g) To address the issue of lack of manpower being
arrests under PMLA have been made, subsequent filing faced by the ED, a cadre restructuring committee
of Prosecution Complaint within statutory period of 60 was constituted and its report dated 01.11.2021
days of arrest has been ensured. was submitted to the Department of Revenue
(DoR) which is being examined and is under
4.2.15 Other Initiatives active consideration of DoR.
Other initiatives taken by the Directorate of
Enforcement includes the following: 4.2.16 ED also adheres to the rules and guidelines
framed by Government for the welfare of differently-abled
(a) Celebration and commemoration of 75 years of persons, SCs/STs & other weaker sections of the Society
independence India and the glorious history of ensuring their adequate representation in different
its people, culture and achievements, "Azadi Ka positions in the Organization.
Amrit Mahotsav", a 75 week countdown to our
75th anniversary of Independence intended to 4.3 Financial Intelligence Unit - India (FIU-IND)
end post a year on 15th August, 2023, started in
4.3.1 Background and function of FIU-IND
152
Financial Intelligence Unit-India (FIU-IND) was c. Provided information in 3085 cases

set up by the Govt. of India to coordinate and strengthen requested by the agencies.
collection, analysis and sharing of financial intelligence
through an effective national, regional and global network iv. Regional and global AML/CFT efforts (01 April
to combat money laundering and related crimes. 2022 to 30 November 2022):
4.3.2 The main functions of FIU-IND include all a. 77 requests received from foreign FIUs
matters pertaining to during 01.04.2021 to 30.11.2021.
a) Analysis of information/reports received from b. 255 requests sent to foreign FIUs during
Reporting Entities as per the provisions of PMLA 01.04.2021 to 30.11.2021.
2002 and Rules made there under and their
dissemination to authorized domestic agencies v. Increasing awareness about money
for further action. laundering and terrorists financing (01 April
2022 to 31 October 2022):
b) Enforcement of the provision of PMLA in so far
as it relates to FIU-IND. a. 31 Programmes for training REs were
conducted in which 859 participants
c) Egmont Group and exchange of information with participated.
foreign FIUs.
b. 2 Review meetings at FIU-IND were held in
d) Interface with reporting entities and their which 4 participants participated.
regulators and domestic agencies authorized to
receive information from FIU-IND including c. 34 Training Programmes for training LEAs
promoting awareness about AML/CFT, capacity were conducted in which 1260 participants
building and training. participated.
d. 17 meetings with LEAs were conducted in
4.3.3 Highlights of the Performance/ achievements which 348 participants participated.
during 2022-23 (from 01 April 2022 to 30 November
2022) vi. Strengthening legislative and regulatory
framework:
i. Collection of information (01 April 2022 to 30
November 2022): a. Regular interaction with the Department of
Revenue and Regulators.
a. 9403744 Cash Transaction Report (CTRs)
received. b. Suggestions received from stake holders or
through Department of Revenue for
b. 248082 Suspicious Transaction Reports
amendments to the Prevention of Money
(STRs) received.
Laundering Act, 2002 and the PML
c. 141041 Counterfeit Currency Reports (Maintenance of Records) Rules, 2005 were
(CCRs) received. dealt with.
d. 548806 NPO Transaction Report (NTRs) c. Participated in proceedings of the AML

received. Steering Committee for evolving Risk based
approach and framing of the National ML/
ii. Analysis and dissemination of information (01 TF Risk Assessment.
April 2022 to 30 November 2022):
vii. Strengthening IT information:
a. 38420 STRs processed.
a. Initiation of Project FINnet 2.0
b. 48246 STRs disseminated.
b. Designation and Conceptualization of FINnet
iii. Collaboration with domestic Law 2.0 features and initiation of tendering
Enforcement and Intelligence Agencies (01 process
April 2022 to 30 November 2022):
4.4 Economic Security (ES)
a. Regular interaction and exchange of
information. 4.4.1 Economic Security Cell is dealing with the
administration and implementation of the Prevention of
b. Received 3314 requests for information from Money Laundering Act, 2002. Based on PMLA, Economic
intelligence and Law Enforcement Agencies. Security Cell is also looking after framing / amendment
153
of PMLA Rules on matters relating to Know Your orders in Original Complaint and Original Application have
Customer (KYC norms), setting up of special Courts been pronounced in 494 nos. of cases (as against 245
under PMLA, Section 66 of PMLA - authorities to whom cases last year) except 146 nos. of cases where the
information to be disseminated etc. from time to time. Hon'ble courts granted stay in respect of Provisional
Attachment orders/Original applications furnished by
4.4.2 Prevention of Money Laundering Act (PMLA) was
Directorate of Enforcement.
enacted on 17th January, 2003 and brought into force on
1st July 2005. The object of this Act is to prevent money 4.5 Financial Action Task Force
laundering and to provide for confiscation of property i. Financial Action Task Force (FATF) is an
derived from, or involved in, money - laundering and for independent inter-governmental body having 39
matters connected therewith or incidental thereto. Two members (37 jurisdictions and 2 organizations)
main objectives of the Act are: established by its member jurisdictions for
• Criminalize money laundering and provide for effective implementation of legal, regulatory and
attachment, seizure and confiscation of property operational measures for combating money
involved in money laundering [Implemented by laundering, terrorist financing, combating
Enforcement Directorate]; and financing or proliferation of weapons of mass
destruction in countries across the world. India
• Prescribe obligations on banks, financial became a member of FATF in 2010. India is also
Institutions and intermediaries relating to KYC, a member of two FATF Style Regional Bodies
record keeping and furnishing reports (FSRBs) -Asia Pacific Group (APG) and Eurasian
[Implemented by Financial Intelligence Unit (FIU- Group the combating Money laundering and
IND)]. Financing of Terrorism (EAG)
4.4.3 PMLA has been amended from time to time to ii. The core work of FATF is to conduct Mutual
overcome the deficiencies and to meet the international Evaluation of its Members and to guide and assist
standards on Anti-Money Laundering as prescribed by FSRBs to conduct Mutual evaluation of their
Financial Action Task Force (FATF). respective member jurisdictions. India's last
Mutual Evaluation was conducted in the year
4.4.4 Adjudicating Authority under Prevention of
2010 and the next Mutual Evaluation is scheduled
Money Laundering Act, 2002
to begin in May 2023 based on the revised
4.4.4.1 The Prevention of Money Laundering Act standards of FATF (40 recommendations and 11
(PMLA), 2002 was enacted by the Parliament to prevent Immediate outcomes).
money laundering and connected activities, confiscation
of proceeds of crime and setting up of agencies and iii. The Mutual Evaluation is very comprehensive
mechanism for coordinating measures for combating and intense exercise and evaluates the anti-
money laundering. money laundering and combating terror financing
(AML/CFT) abilities of a country's financial sector.
4.4.4.2 The Director, Directorate of Enforcement has
been designated as the Director for exercising powers iv. FATF Cell was constituted in DoR in 2017 vide
under the PMLA, 2002 and is authorized to provisionally GOI Gazette Notification dated 9th Nov, 2017.
attach the property allegedly involved in money
laundering. The Adjudicating Authority is empowered to v. Coordination or work related to FATF Secretariat
confirm/ relief the provisional Attachment after hearing is the main function of FATF Cell. As part of this,
the aggrieved parties to ensure that property is not FATF coordinates with other key agencies such
disposed of during the pendency of trial for scheduled as ED, FIU-IND, RBI, SEBI, IRDAI, MHA, NIA,
offences of money laundering or proceeds of crime MEA, MCA etc.
money laundered.
vi. The Cell receives, circulates and discusses
4.4.4.3 The Adjudicating Authority consists of a various documents/ proposals related to FATF,
chairperson and two Members. The post of Chairperson APG, EAG with all the concerned stakeholders
& Members are tenure post after retirement from erstwhile within the country and comments of India are sent
job. The Adjudicating Authority received 271 nos. of on these issues, keeping national interests in
Provisional Attachment Orders (PAOs) and 271 nos. of view.
Original Complaints (OCs) till November 2022. In addition,
169 nos. of Original Application (OAs) for retention of vii. The FATF cell also handles nominations of Indian
seized documents from Directorate of Enforcement were delegation to the Plenaries and other important
received till November 2022. 2 Nos. of Miscellaneous meetings of FATF, APG and EAG. Officers from
Application (MA) also received till November 2022. Final the key agencies along with officers from FATF
154
Cell participate in these meetings and the Working Group meetings of FATF, EAG, APG are
delegation takes part in the multilateral being conducted in virtual mode and Indian
discussions on various issues. delegation has been attending the same. Since
February 2022, the Plenary and Working Group
viii. Currently, the FATF Cell is coordinating the work meetings of FATF are being held in physical
related to India's upcoming mutual evaluation. format and therefore have been attended by India
Joint Secretary (Revenue) is the National in person. The February 2022 FATF Plenary was
Coordinator and Director (FATF) is the Deputy held in Paris, France and was attended by a two
National Coordinator for the Mutual evaluation member delegation from India whereas the June
exercise. and October 2022 FATF Plenaries, which were
held in Berlin and Paris, were attended by a 6
ix. An important part of FATF mutual evaluation is member and 9 member delegation from India.
to conduct National Risk Assessment where risk
of various sectors of the economy like Banking, 4.6 Narcotics Control (NC)
Insurance, Capital Markets, Designated Non-
The Narcotics Control Division administers the
Financial Business and Profession sectors etc.,
Narcotic Drugs and Psychotropic Substances Act,1985
are assessed periodically. FATF Cell, DoR
(61 of 1985), which prohibits, except for medical and
functions as the coordinator for conducting
scientific purposes, the manufacture, production,
India's/TF NRA.
possession, sale, purchase, transport, warehouse, use,
consumption, import inter-State, export inter-State, import
x. An Inter- Ministerial Coordination Committee has into India, export from India or transshipment of narcotic
been constituted under the Chairpersonship of drugs and psychotropic substances. The policy of the
Revenue Secretary under Sec.72A of PMLA with Governments has thus been to promote use of narcotic
the mandate of macro-level policy decision Drugs and psychotropic substances for medical and
making on AML/CFT matters, operational co- scientific purposes while preventing their diversion from
operation between the Government, law licit sources, and prohibiting illicit traffic and abuse. The
enforcement agencies, the Financial Intelligence Narcotic Drugs and Psychotropic Substances Act divide
Unit-India and the regulators or supervisors, and the powers and responsibility of regulation of licit activities.
supervision of National Risk Assessment (NRA). Section 9 of the Act has listed various activities which
FATF Cell works as the Secretariat to the IMCC. the Central Government can, by rules, regulate while
xi. An AML/ CFT Joint Working Group under the Section 10 lists various activities which the State
Chairmanship of Additional Secretary (Revenue) Governments can, by rules, regulate. Accordingly,
has been created for enhancing operational co- Narcotic Drugs and Psychotropic Substances Rules, 1985
ordination among all stakeholders. have been framed by the Central Government, which
regulates cultivation of opium, manufacture, import/export
xii. FATF Cell is also part of the core group of narcotic drugs and psychotropic substances. Further
constituted by Department of Personnel and to prevent diversion of precursor chemicals, of wide
Training to work on G20 Anti-Corruption Working industrial use, for illicit manufacturing of, narcotic Drugs
Group (ACWG) and is working closely with all and psychotropic Substances, the Narcotic Drugs and
stakeholders on the Action plan for 2022-24 Psychotropic Substances (Regulations of Controlled
which covers the year of 2023, India's presidency Substances) Order, 2013 has been framed under Section
of G 20. FATF Cell provides regular inputs for 9A of the NDPS Act.
the Finance Track of G 20 coordinated by DEA,
BRICS AML/CFT meetings, RIC meetings, CT 4.6.1 FUNCTIONS/ WORKING OF THE CENTRAL
Dialogues, to UN on Terrorist Financing related BUREAU OF NARCOTICS.
Targeted Financial Sanction and meetings of 4.6.1.1 Organizational set up
other multilateral economic bodies.
The Narcotics Commissioner heads the Central
xiii. During the year 2022, FATF Cell, Department of Bureau of Narcotics (CBN) with headquarters at Gwalior.
Revenue worked closely with financial sector The Narcotics Commissioner exercises control and
supervisors and regulators in order to improve supervision over opium poppy cultivation, which is
the existing AML/CFT infrastructure, and presently undertaken in select notified areas of the three
meetings were held to improve our compliance states of Madhya Pradesh, Uttar Pradesh & Rajasthan.
with FATF standards. Officers from FATF Cell In addition to the work relating to licensing of opium poppy
attend FCORD meetings for coordination on cultivation, measurement and test measurement of fields
Counter Financing of Terrorism (CFT). and procurement of opium, the CBN also undertakes
xiv. Since the advent of pandemic, the Plenary and preventive checks and exercises vigil to prevent diversion
155
of opium into illicit channels as well as enforcement of Certificate' for import/export of precursor
Narcotic Drugs & Psychotropic Substances Act, 1985. chemicals under the 1961, 1971 and 1988 UN
Conventions dealing with narcotic drugs,
4.6.1.2 Responsibilities and Duties
psychotropic substances and chemicals/
The broad outline of the functions and substances used for manufacture of these drugs.
responsibilities of CBN are as under:
vi. 1988 Convention requires CNA of the countries
i. Performing the function of the National Opium to take all possible measures to prevent diversion
Agency for India under Single Convention on from international trade of precursor chemicals
Narcotic Drugs 1961 to exercise supervision over used in illicit manufacture of narcotic drugs and
licit cultivation of opium poppy in the country in psychotropic substances in close cooperation
terms of Section 5(2) of the NDPS Act,1985. with INCB and competent authorities of
concerned countries.
ii. Survey, detection and eradication of illicit
cultivation of opium poppy throughout the country. vii. Liaison with the International Narcotics Control
Board, United Nations Drug Control Programme
iii. Enforcement of provisions of the NDPS Act 1985
as well as with the Competent National
to suppress illicit traffic in Narcotic Drugs,
Authorities of other foreign countries on issues
Psychotropic Substances and controlled
related to international trade in narcotic drugs,
substances including search, seizure, arrest,
psychotropic substances and precursor
investigation and prosecution of drug offenders
chemicals.
tracing and freezing of illegally acquired
properties of drug traffickers derived from illicit viii. Co-ordination with other Drug Law Enforcement
drug trafficking for forfeiture and confiscation. Agencies such as Directorate of Revenue
Intelligence, Narcotics Control Bureau, State
iv. Issuance of licenses domestic manufactures for
Police, State Excise and various other drug law
manufacture of synthetic Narcotic Drugs notified
enforcement agencies.
under the NDPS Act 1985.
v. Performing the functions of Competent National 4.6.1.3 Performance and Achievements: -

Authority (CNA) for issuance of Export The performance/achievement with respect to issuance
Authorizations and Import Certificate for Export/ of NOCs issued by Central Bureau of Narcotics during
Import of Narcotic Drugs & Psychotropic the year 2022 for the export/import of Precursor
Substances and issuance of 'No Objection Chemicals is as under:
Number of NOC issued From From 01.12.2022 Total

01.04.2022 to to 31.03.2023
30.11.2022 (Projected)
For export of Controlled Substance 1163 500 1663
For import of Controlled Substance 776 388 1164
No. of Pre-export Notifications (PEN) 980 320 1300
issued
No. of Pre-export Notification (PEN) 529 - 529
received
Number of Stop Shipments/ 25 NA NA
suspended (Import)
Number of Stop Shipments/ 8 NA NA
suspended (Export)
International Narcotics Control Board (INCB) has verifying the legitimacy of the transactions. On the
developed online Pre-export Notification (PEN) system initiative, taken by the Central Bureau of Narcotics (CBN),
to make exchange of information between the Competent through online PEN system, CBN has identified and
National Authorities. CBN had issued 980 PENs (during stopped suspicious transactions of Precursors Chemicals
the period from 01.04.2022 to 30.11.2022 to the suspected to be diverted from the licit channels during
competent authority of various importing countries, for the year under report.
156
The performance/achievement with respect to issuance year from for the export/import of narcotic drugs/
of Export authorization and Import Certificate issued by psychotropic substances is as under –
Central Bureau of Narcotics during the current financial
Particular Psychotropic Substances Narcotic Drugs

From 01.04.2022 From From 01.04.2022 From 01.12.2022 to
to 30.11.2022 01.12.2022 to to 30.11.2022 31.03.2023
31.03.2023
(Projected)
(Projected)
No. of Export 3880 2100 241 85
Authorization
Issued
No. of Import 516 225 168 30
Certificate
issued
4.6.1.4 Enforcement of NDPS Act, 1985- traffickers, derived from illicit drug trafficking, for forfeiture
and confiscation.
The Central Bureau of Narcotics undertakes
action to prevent the illicit trafficking of Narcotic Drugs Number of persons convicted/ acquitted in CBN
and Psychotropic Substances. It also undertakes cases, decided by various Courts, upto October, 2022
investigations and prosecution of drug related offences, are as under-
tracing and freezing of illegally acquired property of drug
Year Total no. of Total no. of Total no. Total no. Total no. of Convict
persons who persons against of of person facing ion rate
were facing whom persons persons prosecution at (%)
prosecution at prosecution was convicted acquitted the end of
the beginning of launched during year
the year the year
2021 540 46 4 4 578 50%
2022 578 69 0 1 646 0%
st
(Upto 31
Oct.2022)
Number of cases, decided by various Courts, during the year 2022 are as under (upto October, 2022):-
Year Total no. of Total no. of Total no. Total no. of Total no. of Convict
persons who persons of persons persons person ion rate
were facing against whom convicted acquitted facing (%)
prosecution at prosecution prosecution
the beginning was launched at the end
of the year during the year of year
2021 678+2* 87 5 5 755+2* 50%
2022 755+2* 80 0 1 834+2* 0%
st
(Upto 31
Oct.2022)
157
Details of Destruction of Illicit Opium Poppy Cultivation and Cannabis in 2021-2022 are as under (upto 31st October,
2022): -
Year State Area Destroyed (In Total Area Destroyed
Hectare) (In Hectare)
2021 Opium Poppy 0
Cannabis(Ganja) 0
2022(Upto Arunachal Pradesh Opium Poppy 3615 hectares
31.10.22)
Himachal Pradesh Cannabis(Ganja) 1032 hectares
Disposal of seized drug by CBN during the year 2022 (upto 31st October, 2022):-
Sl. Narcotics Drugs/ Psychotropic No. of Cases Quantity
No. Substances/ Precursor
1. Opium 26 62.550KG
2. Heroin 7 1.750 KG
3. Poppy Straw 15 7104.830KG
4. Codeine Phosphate 3 15600 bottles
5. Alprazolam 9 2901840 tablets
6. Tramadol Tablets 6 1763093 tablets
7. Tramadol Injections 5 50 injection
Total 46
Seizures effected by CBN during the year 2021 to 2022 (Upto 31st October, 2022) is as follows:
Name of Drug/substance 2021 2022 (Upto 21st

October 2022)
Opium Quantity (in kgs) 62.655 155.92
No. of cases 13 26
Poppy Straw Quantity (in kgs) 17314.73 22139.66

No. of cases 15 16
Poppy straw along with Quantity (in kgs) 175.59 0

black poppy seeds
No. of cases 1 0
Black Poppy seeds Quantity (in kgs) 0 11271.5

No. of cases 0 2
Ganja/Ganja Plant Quantity (in kgs) 710.916 kg + 750 636.6

plants
No. of cases 6 3
Illicit ganja (Cannabis) Quantity (in kgs) 0.0200 sq. Hectare 0

cultivation
No. of cases 1 0
158
Charas Quantity (in kgs) 0 0.06

No. of cases 0 1
Acetic Anhydride Quantity (in kgs) 24050 0

No. of cases 1 0
Alprazolam tablets Quantity (in kgs) 215046 85810

No. of cases 3 6
Buprenorphine injection Quantity (in kgs) 0 1350

No. of cases 0 1
Alprazolam Quantity (in kgs) 44.895 9.192

No. of cases 1 3
Clonazepam tablets Quantity (in kgs) 3690 800

No. of cases
Codeine Phosphate Quantity (in kgs) 4544 268

syrup
No. of cases 2 1
Diazepam Quantity (in kgs) 175 0

No. of cases 0
Dephenoxylate mixed Quantity (in kgs) 0 53.095

powder
No. of cases 0 1
Etizolam tablets Quantity (in kgs) 3000 0

No. of cases 0
Ayurvedic medicines Quantity (in kgs) 18272 bottles + 180 0

having opium content gram
No. of cases 1 0
Heroin Quantity (in kgs) 0.83 2.775

No. of cases 2 6
Illicit opium cultivation Quantity (in kgs) 3.7800 Hectares 1.034

No. of cases 6 7
159
Charas Quantity (in kgs) 0 0.06

No. of cases 0 1
Acetic Anhydride Quantity (in kgs) 24050 0

No. of cases 1 0
Alprazolam tablets Quantity (in kgs) 215046 85810

No. of cases 3 6
Buprenorphine injection Quantity (in kgs) 0 1350

No. of cases 0 1
Alprazolam Quantity (in kgs) 44.895 9.192

No. of cases 1 3
Clonazepam tablets Quantity (in kgs) 3690 800

No. of cases
Codeine Phosphate Quantity (in kgs) 4544 268

syrup
No. of cases 2 1
Diazepam Quantity (in kgs) 175 0

No. of cases 0
Dephenoxylate mixed Quantity (in kgs) 0 53.095

powder
No. of cases 0 1
Etizolam tablets Quantity (in kgs) 3000 0

No. of cases 0
Ayurvedic medicines Quantity (in kgs) 18272 bottles + 180 0

having opium content gram
No. of cases 1 0
Heroin Quantity (in kgs) 0.83 2.775

No. of cases 2 6
Illicit opium cultivation Quantity (in kgs) 3.7800 Hectares 1.034

No. of cases 6 7
Lanced green poppy Quantity (in kgs) 205 0

capsules
No. of cases 0
Larozepam tablets Quantity (in kgs) 720 0

No. of cases 0
160
Midazolam (inj + nasal Quantity (in kgs) 280 Inj. + 6 spray 0

spray)
No. of cases 0
Mephentermine inj Quantity (in kgs) 727 0

No. of cases 2 0
Morphine Quantity (in kgs) 9 0.78

No. of cases 1 2
Pentazocine Inj. Quantity (in kgs) 8840 0

No. of cases 2 0
Phenobarbitone Inj. Quantity (in kgs) 110 0

No. of cases 1 0
Tramadol tablets & Quantity (in kgs) 60256 tablets + 506704 tablets +
capsules 28800 capsules 16360 capsule
No. of cases 4 7
Tramadol Inj. Quantity (in kgs) 6418 Inj. 980

No. of cases 2
Tramadol Quantity (in kgs) 0 53.028

No. of cases 0 2
Nitrazepam tablets Quantity (in kgs) 0 349

No. of cases 0 2
4.6.1.5 Allotment of General Pool office yield per (kg/hectare) at 70 consistences on the basis of
Accommodation (GPO) & general Pool Residential results received from Madhya Pradesh, Rajasthan and
Accommodation (GPRA): Ministry of Urban Uttar Pradesh units for the crop 2020-21 was 63.362 kg/
Development, Directorate of Estates, New Delhi was hectare (all India). The All India average yield during the
requested for General Pool Office Accommodation and crop year 2021-22 was 65.107 kg/hectare (provisional).
General Pool Residential Accommodation. Thus the These figures are for crop year 2021-22 as the crop cycle
officers and staff of CBN posted in the cells have become for the cultivation of opium is 1" October, to 30 September
eligible for allotment of General Pool Residential of next year.
Accommodation.
4.6.1.8 Payment to cultivators through e-Payment:
4.6.1.6 Gender Issues/ Empowerment of Women: Since crop year 2012-13, a new procedure for payment
Complaint Committee regarding "Sexual Harassment" of has been adopted. There was high risk in drawing big
women at Work place created and working at Hqrs amount from Banks carrying it to weighment centers,
Gwalior and unit offices and submission of quarterly report disbursing it to concerned cultivators/Lambardars and
to DGHRD on action taken on complaints under the carrying it to villages by cultivators from weighment enters
Sexual Harassment of Women at work place (Preventive, in late evening. Banking infrastructure has been improved
Prohibition and Redressal Act, 2013). Side by side seven in opium growing areas and it is developing day by day.
newly direct recruited women candidates joined CBN Considering all these factors, cost of opium/commission
between 01.04.2022 and till date on various posts. is being paid through e-payment directly in Bank Accounts
of cultivators during weighment operation. After receipt
4.6.1.7 During the crop year 2021-22, a quantity of 349 of computed challans from Govt. Opium Factories, final
Metric Tons of opium at 70°consistence (Provisional payment to cultivators is being done without waiting for
figure) was procured from opium cultivators. The average Settlement Operation.
161
4.6.1.9 Other highlights of performance and The office of the Chief Controller of Factories is located
achievements during the year 2022-23. at New Delhi. Each of the factories at Ghazipur and
(i) GEM Purchase Neemuch comprises two units - the Opium Factory and
Alkaloid Works. The Opium Factories undertake the work
Purchase of items for the official purpose is made of receipt of opium from the fields, their storage and
through GEM portal. The dead stock items, perishable processing for exports and domestic consumption. The
items are purchased through GEM portal. The upcoming Alkaloid Works are engaged in processing raw opium
purchase/ services of the articles will also be made into alkaloids of pharmacopeial grades to meet the
through the GEM portal mostly. domestic demand of the pharmaceutical industry. The
(ii) World Drug Day,26th June, 2022 by Central GOAWs have employed a total work force of about 467
Bureau of Narcotics: - people at the two opium and alkaloid plants. The work
force comprises of officials and staff drawn from the
Every year, 26th June is observed as Central Board of Indirect Taxes and Customs, Central
"International day against drug abuse and trafficking", in Bureau of Narcotics, Central Revenues Control
order to raise awareness for the drug menace in the Laboratory, apart from personnel selected by the Union
society and seeking people's participation to deal with Public Services Commission directly. The security
this problem. Central Bureau of Narcotics organised aspects of these factories are looked after by the Central
several activities like placing Banners on prominent public Industrial Security Force (CISF), a paramilitary force
places, bike rally for awareness, use of electronic media under the Ministry of Home Affairs.
such as awareness camping through FM Radio, easy
and slogan writing and Tree plantation in the official Further, for the first time in India the process of
campus implementation of Concentrated Poppy Straw Technology
has been commenced. In the Opium Policy 2021-22 of
4.6.2 FUNCTIONS/ WORKING OF GOVERNMENT the Govt. of India licenses have been issued for cultivation
OPIUM AND ALKAOLIDS WORKS (GOAW) of unlanced Opium Poppy and tendering of unlanced
4.6.2.1 The Government Opium & Alkaloid Works Poppy Straw to the Government of India. Concentrated
(GOAW) is engaged in the processing of raw opium for Poppy Straw (CPS) is a technology for production of
export and manufacturing of opiate alkaloids through its alkaloid from unlanced Poppy Straw. The office of Chief
two Factories viz Govt. Opium & Alkaloid Works (GOAW) Controller of Factories has recently signed two contracts
at Ghazipur (U.P.) and Neemuch (M.P.). The Products with private entity, M/s Bajaj Healthcare Ltd. (i) to process
manufactured at GOAW s are mainly used by 500 MT of unlanced poppy straw to manufacture CPS
pharmaceutical industry of India for Preparation of cough and extract alkaloids/active pharmaceutical ingredients
syrup, pain relievers, de-addiction drugs and tablets for (APIs), (ii) to process 100 MT of Opium gum to extract
terminally ill cancer and HIV patients. The GOAW are alkaloids/active pharmaceutical ingredients (APIs). M/s
administered by a High-Powered Body called the Bajaj Healthcare Ltd. has started Alkaloid extraction from
"Committee of Management" constituted and notified by opium gum w.e.f. 09.12.2022.
the Government of India in 1970. The Additional 4.6.2.2 The overall performance / achievements of
Secretary (Revenue), Department of Revenue, Ministry Government Opium and Alkaloid Factories (GOAF) for
of Finance is the Chairman of the Committee of the Financial Year 2022-23 are as follows:
Management. An officer of the rank of Commissioner/
Joint Secretary is the Chief Controller of Factories who (I) PERFORMANCE OF GOAF FOR THE
heads the Organization and each of the two factories at FINANCIAL YEAR 2022-2023
Neemuch and Ghazipur are managed by a General
A. PRODUCTION
Manager of the rank of Additional Commissioner/Director.
(Provisional)
Sl. Particulars Unit Actual Production Estimated Production from
No.
April to November 2022 December,202 to March,2023
1 Drying of opium for KG. -- --
Export at 90°C
2 a) Morphine Sulphate KG. 297.200 547.800
b) Codeine Phosphate (C.P.) KG. 24245.900 608.100
c) Pure Thebaine KG. 756.800 783.200
d) Noscapine BP KG. 0.000 7251.000
162
e) Papavarine S.R. KG. 2290.640 268.360

f) IMO Powder KG. 7000.000 5000.000
g) IMO Cake KG. 0.000 5000.000
Total (2) (a to g) KG. 34590.540 19458.460
3. Codeine Phosphate KG. 26500.000 0.000

Imported for Domestic
Market
A. SALES
(Provisional)
Sl. Particulars Actual Sales Estimated Sales from
No. April to November, 2022 December,2022 to March,2023
Quantity Amount Quantity Amount

( in Kg.) (Rs. in Crore) ( in Kg.) (Rs. in Crore)
1 Export of opium for at 1380 0.704 100 0.11
90°C
a) Morphine Sulphate 333.100 1.38 166.550 0.69
b) Codeine Phosphate 30793.010 140.72 8000.00 36.55
(Indigenous Production
& Imported)
c) Dionine I.P. 8.000 0.09 4.000 0.045
d) Pure Thebaine 1115.000 5.06 557.500 2.53
e) Noscapine BP 667.000 2.38 333.500 1.19
f) Pholcodine 3.000 0.02 1.500 0.01
g) Papavarine S.R. 1455.000 0.46 727.500 0.23
h) IMO Powder (Dom. 6296.500 6.67 3148.250 3.33
Sales+Export)
i) IMO Cake (Domestic 1197.602 1.22 598.801 0.61
Sales+Export)
Total 2 (a to i) 41868.21 158 20934.11 78.995
Grand Total (1+2) 43248.21 158.704 21034.11 79.105
B. EXPORT OF OPIUM AT 90°C (excluding domestic sales of IMO Powder & Cake)
(a) UPTO NOVEMBER 2022.
(Quantity in Kgs)
Unit USA France Switzerland Sri Lanka Germany Total
1 Ghazipur 4000 -- -- -- 80 --
2 Neemuch 1080 -- 300 -- -- 1380
Total 5080 -- 300 -- 80 5460
163
(b) FROM DECEMBER 2022 TO MARCH 2023)

(Quantity in Kgs)
Unit USA France Switzerland Sri Lanka Total
1 Ghazipur -- 4000 -- -- 4000
2 Neemuch -- 100 -- -- 100
Total -- 4100 -- -- 4100
A. REVENUE RECEIPTS (ON REALISATION BASIS) FOR THE FINANCIAL YEAR 2022-23
(a) UPTO NOVEMBER 2022
(Rs. In crore)
Opium Factory Alkaloid Works Total
1 Ghazipur 0.12 20.12 20.24
2 Neemuch 0.14 151.21 151.35
Total 0.26 171.33 171.59
(b) FROM DECEMBER, 2022 TO MARCH, 2023

(Rs. In crore)
Opium Factory Alkaloid Works Total
1 Ghazipur 0.02 41.50 41.52
2 Neemuch 0.14 60.00 60.14
Total 0.16 101.5 101.66
(I) Achievement of CCF organisation up to the month of November 2022 with comparative
data of previous year i.e. 2021 for the similar period
A. PRODUCTION
(Provisional)
Sl. Actual Production % age increase over
No. previous year
Particulars Unit April to November
2021-22 2022-23
(1) (2) (3) (4) (5) (6)
1 Drying of opium for
KG. -- -- --
Export at 90°C
2 Manufacture of Drugs:
a) Morphine Sulphate KG. 206.300 297.200 44.06205
b) Codeine Phosphate KG. 12706.000 24245.900 90.82245
c) Pure Thebaine KG. 654.475 756.800 15.63467
d) Noscapine BP KG. 158.000 0.000 -100
f) Papavarine S.R. KG. 1885.100 2290.640 21.51292
g) IMO Powder KG. 1000.000 7000.000 600
164
h) IMO Cake KG. 3046.000 0.000 -100
Total (2) KG. 19655.875 34590.540 75.98067
3. Import of Codeine Phosphate
i) For Domestic Market KG. 11000.000 26500.000 140.9091

A. SALES
Provisional
Sl. 2021-22 2022-23

No. Particulars April to November April to November
Quantity Amount Quantity Amount (Rs. in
(Kgs) (Rs. in (Kgs) Crore)
Crore)
(1) (2) (4) (5) (6) (7)
1 Export of opium on actual basis 137 0.08 1380 0.704
2 Domestic Sale of Drugs: (on actual basis)
a) Morphine Sulphate 326.075 1.35 333.100 1.38
b) Codeine Phosphate 22879.48 104.56 30793.010 140.72
(Indigenous & Imported)
c) Dionine I.P. 0.000 0.00 8.000 0.09
d) Pure Thebaine 2142.500 9.72 1115.000 5.06
e) Noscapine BP 559.000 1.997 667.000 2.38
f) Papavarine S.R. 1463.000 0.41 1455.000 0.46
g) Pholcodine 220.917 0.08 3.000 0.02
h) IMO Powder (Domestic sale + 9040.000 7.85 6296.500 6.67
Export)
i) IMO Cake (Domestic sale + Export) 2110.000 2.15 1197.602 1.22
Total (2) (a+i) 38740.972 128.117 41868.21 158
Grand Total (1+2) 38877.97 128.197 43248.21 158.704
A. Export of Opium at 90°C (up to November of each Financial year).

(Qty. in Kgs at 90°C)
Unit USA FRANCE SWITZERLAND JAPAN SRI LANKA Germany TOTAL
2021-22
Ghazipur -- -- -- -- -- -- --
Neemuch 137 -- -- -- -- -- 137
Total 137 -- -- -- -- -- 137
2022-23
Ghazipur 4000 -- -- -- -- 80 4080
Neemuch 1080 -- 300 -- -- -- 1380
Total 5080 -- 300 -- -- 80 5460
165
A. Revenue Receipts on Realization basis (up to November of each Financial year).

(Rs. in Cores)
(Provisional)
Unit Opium Alkaloid Total
Factories Works
2021-22
Ghazipur 0.08 25.64 25.72
Neemuch 0.12 109.94 110.06
Total 0.20 135.58 135.78
2022-23
Ghazipur 0.12 20.12 20.24
Neemuch 0.14 151.21 151.35
Total 0.26 171.33 171.59
4.6.2.3 Development of North Eastern Region: The 1985 for coordinating and strengthening the economic
CCF organization including GOAWs are located in Uttar intelligence and enforcement activities under the Ministry
Pradesh, Madhya Pradesh and Delhi only and therefore, of Finance.
there is nothing to specify with regard to work done on
4.7.1.2 The Bureau is headed by a Director General who
the development of North Eastern region and Sikkim
is assisted by two Additional Directors General (JS
Project Schemes.
Equivalent), Joint Secretary (COFEPOSA), Additional/
4.6.2.4 Grievances Redressal Machinery: Public Joint Directors (DS/Director equivalent), Under
Grievances in the CCF's Organization are dealt with Secretaries, Deputy Directors (US equivalent) and other
promptly. The grievances of workers are also dealt with staff. The Bureau has a sanctioned strength of 116
expeditiously and the relations between the Management Officers & Staff.
& workers during this period was harmonious and cordial.
4.7.1.3 In terms of its existing charter, the CEIB functions
4.6.2.5 Gender Budgeting/Empowerment of Women: as:
Equal opportunity / status is enjoyed by women in CCF a) The Secretariat for the Economic Intelligence
organization. In case of gender bias / harassment Council (EIC)
reported if any, it is ensured that appropriate action is
taken against the erring official. Internal Complaint b) Coordination between various agencies for
Committee has already been formed at CCF office, New coordinating action and repository of economic
Delhi, at GOAW, Neemuch & Ghazipur for the purpose intelligence (ECOINT) and
of dealing with the complaints received regarding sexual c) Administers the COFEPOSA Act, 1974 at Central
harassment at workplace. Government Level.
4.6.2.6 Activities Undertaken for Disability Sector &
SCs/STs & Other Weaker Sections of Society: The 4.7.1.4 As part of its earlier mandate, the CEIB:
CCF organization is strictly adhering to the prescribed (a) Maintains databases on economic offenders and
rules and regulations for the welfare and development of offences;
disabled, SCs, STs and other weaker sections. With an
objective to initiate prompt action on grievances of such (b) Studies and analyses macro level economic
sections, a committee has been formed with members activities;
drawn from such sections. Roster registers for this
purpose are also being maintained. (c) Supervises and monitors the functioning of
Regional Economic Intelligence Councils
4.7 Central Economic Intelligence Bureau (CEIB) (REICs), which are coordinating bodies at the
4.7.1 Organization and Functions field level and comprise representatives from
various Central and State enforcement and
4.7.1.1 The Central Economic Intelligence Bureau is the investigative agencies dealing with economic
nodal agency on economic intelligence. It was set up in offences;
166
(d) Organizes training programmes in premier faced by them and in better monitoring of the offence
training institutions for officers of the Department verticals by LEAs themselves. During F.Y 2022-23, GEI
of Revenue/ Member agencies of REICs. meetings have been held on feedback on SFIO's
Investigation report shared by CEIB and Online Gaming
4.7.1.5 In terms of its existing revised charter dated Industry.
12.12.2003 issued by Department of Revenue (HQ), the
A Working Group of Head of Investigative
CEIB carries out the following functions:
Agencies (HoAs) of Department of Revenue viz. DRI,
a) The Secretariat for the Economic Intelligence CBDT, DGGI, ED, CBIC along with associate members
Council (EIC); i.e. MCA and RBI was constituted to discuss and review
cases having multi agency implications on regular basis.
b) Coordination between various agencies for
coordinated action; A "Working Group to discuss and analyse issues
related to suspicious foreign outward remittance" was
c) Repository of economic intelligence (ECOINT); constituted to discuss and review cases of foreign outward
remittance with members viz. CBDT, DRI, ED, CBIC
d) Administers the COFEPOSA Act 1974 at Central (Customs) and RBI to review cases of multiagency
Government Level; ramifications and study pattern of foreign outward
remittances.
e) Ensures prompt dissemination of intelligence
having security implications among the NSCS, As a member of Joint Working Group (JWG)
IB & R&AW; which will monitor the progress of India's Mutual
Evaluation by Financial Action Task Force (FATF) and
f) Coordinates the functioning of Regional improving effectiveness of India's AML/CFT regime, the
Economic Intelligence Councils (REICs); inputs/submission pertaining to Technical Compliance
(TC) Annexe of the 40 FATF recommendations/
g) Coordination with Multi Agency Centre (MAC); Standards, criteria wise was shared with Department of
Revenue (DoR). Besides, CEIB will prepare a paper on
h) Organizes meetings of Working Group under the
India's technical and effective compliance to beneficial
Chairmanship of Revenue Secretary at
ownership of Legal persons, to prepare a note
prescribed intervals and submits a report to the
distinguishing the definitions and meeting of "nominee
Chairman of the EIC after every meeting;
director" in the FATF context and Indian laws' context
i) Acts as a 'think tank' for the Department of and collect data & statistics to demonstrate effectiveness
Revenue, Ministry of Finance on all issues on Immediate Outcome.
relating to economic offences, and undertakes iii. Functioning of Regional Economic
analysis of economic activities at the macro level. Intelligence Councils (REICs)
4.7.1.6 The details of the activities of CEIB during 2022- This Bureau functions as the Secretariat to the
23 are as under: EIC (Economic Intelligence Council) and WGIA (Working
Group on Intelligence Apparatus). It supervises working
i. Studies in the Bureau and Reports of Inter- of 30 REICs across the country and organises training
Ministerial Groups: on various legal and enforcement aspects for REIC
member LEAs. Apart from above, the division handles
The Bureau conducts study on economic
ISP with CBDT, DGCoA, SFIO, SEBI, CCI, IRDAI & Public
offences which are of concern for Law Enforcement
Sector Insurance Companies.
agencies (LEAs). Study reports on Informal remittances
using Hawala, Tax havens across the world & diversion The Bureau monitors the performance of all
of income and corporate fraud have been finalized. REICs. It also convenes Zonal Conferences of the
Further, study reports on Trade based money laundering Conveners of the REICs wherein the performance of the
is being finalised and will be completed by December, REICs is reviewed. The Bureau circulates alerts/circulars/
2022. guidelines regularly to the REICs to facilitate their effective
functioning.
ii. Group on Economic Intelligence (GEI) and
other meetings: REICs were set up in March, 1996 for ensuring
regional operational coordination amongst the different
The Group on Economic Intelligence (GEI)
enforcement and investigation agencies in the field of
mechanism formed w.e.f. 01.12.2005 as per directions
economic intelligence. It comprises of designated officers
from Economic Intelligence Council (EIC) is focused on
from CBDT, CBIC, DRI, DGGI, NCB, ED, CBI, IB, RBI,
discussing matters critical to LEAs and suggesting a
local heads of RoC, EOW of State Police and State Tax
calibrated approach in devising solutions to problems
167
Authorities etc. The Bureau convenes zonal Conferences all correspondences vide email with nodal officers of
of the REIC Conveners to monitor and review the respective banks. This greatly reduces the transit time
performance. for both the request for the CEIB report and the
consequent reply on the entity in question, thus, facilitating
During the current F.Y 2022-23, a Zonal
the trade.
Conference of REICs of North Zone was held at
Chandigarh on 22.08.2022 to discuss and seek views / vi. Other Policy Suggestions by Bureau
feedback of the Convenors on improving coordination
amongst the LEAs, to discuss the measures through The Bureau undertook the issue of risk posed
which REICs and CEIB can support each other to by the illegal activities of Commercial Chinese entities. A
effectively combat economic crimes. meeting was held with concerned LEAs where it was
suggested to have a common platform for sharing of
The relevant statistics relating to REICs is as information amongst each other and the process followed
under: by LEAs during their investigations. Also, case report will
FY No. of No. of Additional Additional be prepared on the basis on interim report/inputs received
Meetings cases Revenue Revenue from all the agencies regarding action taken pre and post
held shared Detected Realized the information shared by CEIB involving Chinese entities.
(In lakhs.) (In lakhs.)
2021-22 132 2127 32210 5565

The Bureau has taken up the issue of money
laundering by digital lending loan apps and various
2022-23 (till meetings were conducted with LEAs. List of suggestions
30.11.2022) 52 684 39205 141 received from LEAs was shared with RBI for taking up
with their Working Group constituted on digital lending
iv. Information Sharing Protocol (ISP)
app. Subsequently, a detailed guideline on digital lending
On the basis of decision taken in WGIA (Working based on the recommendations of the working group was
Group on Intelligence Apparatus), an Information Sharing issued by the RBI.
Protocol (ISP) was finalized by CEIB in April 2018. As
Various review meetings were convened on
per the ISP, 15 agencies including DRI, DGGSTI, CBDT,
Misuse of Liberalised Remittance scheme with concerned
CBIC, SFIO, CBI, ED, NIA, NCB, EOW (State Police),
LEAs. The Bureau proposed to RBI for examining the
RBI, Banks, FIU, SEBI and DGFT have to appoint Nodal
possibility of initiating a process of mobile OTP linked
Officers responsible for ensuring that reporting is done
authentication for purchase of foreign currency from
regularly to CEIB and all cases involving detection of
FFMCs in future. Also, it was suggested that AD banks
contravention of any economic statute are to be shared
exercise due diligence in processing heavy remittances
within a specified time frame of such detection/
by the proprietary concerns with non-existence business.
adjudication with CEIB. The CEIB will further disseminate
The proposal is under consideration with RBI.
the information and share it with other LEAs (Law
Enforcement Agencies), as required. The ISP is being The issue of "Standardization of Bank Formats"
amended as and when required, in consultation with was raised in the EIC/ WGIA meetings held in 2014 to
LEAs, so as to optimize sharing of inputs. 2019. The Bureau convened regular meetings with
concerned LEAs for discussing requirement of a Standard
v. CEIB Report on Prospective Borrowers and
Bank Format to be shared with RBI for exploring the
NPAs to Banks
feasibility of mandating such requirement to banks. The
As per the DFS guidelines on detection, reporting, suggestions from LEAs were shared with RBI for their
investigation, etc. relating to large-value bank frauds of considerations. RBI submitted a Standard Operating
more than Rs.50 Crores, reports on prospective Procedure (SOP) with certain timelines for seeking
borrowers/NPAs are being sought from CEIB by Public information from banks by LEAs and the approved SOP
Sector Banks. Such reports are being furnished by CEIB along with list of compliance officers of banks was
as and when such references are received from banks. circulated to all LEAs, REICs, the DGPs of State Police,
all State Commissioner of SGST and Regional Directors
During the FY 2022-23, 2908 requests amounting
RBI.
to Rs.17,88,647.51 crores (NPA - 72, amounting to Rs.
23,819.88 crores, Fresh Credit/ Renewal - 2836, The Bureau being a nodal agency tasked with
amounting to Rs. 17,64,827.63 crores) were replied to providing feedback on credit/NPA request of the
as of 30.11.2022. borrowers seeking sanction of loan or reporting NPA.
Keeping in view of mutual interest of both CEIB and RBI,
An enhanced SoP with respect to the processing
it was proposed to have a memorandum of understanding
of bank requests on prospective borrowers and NPAs
has been formulated. Digitization of all correspondences (MoU) which will enhance the information sharing and
with all PSBs in this matter has been initiated by making enrich the Bureau's database. It is proposed to reach a
168
logical conclusion and finalization of MoU between RBI of NCB were directed to send details of all identified areas/
and CEIB. The Bureau also suggests that RBI shares all potential places of illicit cultivation in a prescribed format
bank fraud cases till the time and MoU is finalized. During to CEIB.
the last F.Y 2021-22, total of 872 cases were shared with
vii. Development/ generation of sharable inputs
various LEAs and CEIB has requested RBI to share all
by CEIB
bank frauds cases.
The Bureau shared intelligence with DRI
In line with the mandate of CEIB to carry out
pertaining to evasion of customs duty by way
analysis on emerging areas, a trend analysis report on
undervaluation of LED products imported from China on
'Smuggling of Gold and Smuggling of Red Sanders has
the basis of submission of fabricated BIS certificate and
been completed. The report inter-alia, includes modus
payments through hawala for necessary action in order
operandi, smuggling routes, statistical analysis of cases
to protect the interest of revenue. Further, intelligence
reported in the Bureau.
pertaining to evasion of customs duty by way
In the current F.Y 2022-23, meetings were misdeclaration of certain imported products viz Neck
conducted for action taken on cases shared with LEAs Massager Pillow, Massager belt, Footpad, Full Fit Screen
involving Chinese entities, Regulatory measures over and Stretcher was shared with DRI and CBIC for
'Payment Gateways' and 'Payment Aggregators and risk necessary action in order to protect the interest of
posed by them and effective sharing of Information under revenue.
Information Sharing Protocol (ISP) with LEAs. viii. National Economic Intelligence Network
Various review m eetings were held with (NEIN) DATABASE.
concerned Law Enforcement Agencies (LEAs) to discuss CEIB maintains NEIN database which consists
the issue viz. online transmission of CDF data from CBIC of Dossiers and offence cases of economic offenders/
to FIU-IND, Information Sharing from DGCoA and suspected tax evaders, based on inputs received from
quarterly review meeting on Trade Based Money the Law Enforcement Agencies across the country. CEIB
Laundering. has more than 8680 dossiers and details of 202526 (as
The Bureau issued Alert Circulars on various on 28.11.2022) offence cases, booked by various
issues such as illegal export of diamonds, illegal trafficking agencies. During current FY 2022-23 (as on 28.11.2022),
of Heroin in to India, misdeclaration and misclassification 49720 inputs were entered in the database and inputs
of Light Diesel Oil (LDO) and illegal import of luxury cars were disseminated as against intelligence inputs received.
by organizing imports in the names of diplomats in India ix. Secure Information Exchange Network
to sensitize their field formations. (SIEN):
The Bureau has been receiving the imagery As per the directions by the Government, the
report of illicit Poppy/ Cannabis cultivation in a CD/DVD operation of SIEN was brought under the domain of Multi
on suspected locations of various states generated by Agency Centre (MAC) of MHA on 27.07.2021. The
Aviation Research Centre (ARC) and the same is being incremental data of National Economic Intelligence
forwarded to Narcotics Control Bureau (NCB), Central Network (NEIN) database till 06.09.2021 was successfully
Bureau of Narcotics (CBN), and Advanced Data updated in the Secured Information Exchange Network
Processing and Research Institute (ADRIN) immediately (SIEN), (an application for secure exchange of
through official mail id for necessary action at their end. information amongst user agencies/LEAs). Further, the
In this calendar year, this Bureau has received 32 cases nodal officers of the designated user agencies were
of suspected locations of Illicit Poppy Cultivation which briefed about the features, capability and utility of SIEN
have been immediately forwarded to the official mails of application.
NCB, CBN & ADRIN. Feedback from the agencies is
awaited. x. National Economic Offence Records (NEOR):
The annual meeting on the captioned subject was The CEIB envisages 'National Economic
held on 14.10.2022 at NCB headquarters, New Delhi Offences Records' (NEOR) to be a secure web-based
through Video Conferencing which was attended by platform that will enable creation of rich data repository
officers from CEIB. CEIB has been asked to coordinate of economic records of economic offenders and its
in various matters such as Participate in the Training of dissemination amongst the intelligence agencies and law
State officials by NCB & ADRIN/ BISAG (N). (TOT), send enforcement agencies. It is envisaged to be an important
details received from states to ADRIN & BISAG (N) and tool at the disposal of both CEIB and LEAs in
transmission of Satellite images to concerned states and understanding the micro trends pertaining to economic
CBIC through secured official email. offences and coping with rapidly changing modus
operandi adopted to defraud the national economic
Further, all state nodal officers/ Zonal Directors apparatus.
169
The Bureau submitted a proposal to Department clearance to the GEP applicants.

of Revenue (DoR) to develop a web-based application
During the calendar year, the Bureau has
software NEOR. through NICSI and the approval has
received 5483 requests for GEP clearance, and 4473
been accorded for development and implementation of
reports have been processed by the Bureau.
the NEOR Subsequently, the Scope of Work (SoW) and
Request for Proposal (RFP) was shared with NICSI/NIC xii. Trainings on Intelligence and other relevant
for circulating among empanelled vendors of NICSI. Also, areas coordinated by Bureau
a Technical Evaluation Committee comprising members
The Bureau organizes training programmes in
from CEIB, NIC and NICSI was constituted to evaluate
premier training institutions for officers of the Department
the technical proposals of empanelled vendors of NICSI
of Revenue/ Member agencies of REICs. The Bureau
in respect of NEOR Project. Efforts are being made to
coordinates training programmes with various specialized
meet the timelines decided and it is expected to go live/
agencies on different subjects for upgradation of the
roll out by the end of May 2023.
capacity and skills of the Officers.
xi. Global Entry Program (GEP)
It was through earnest efforts of CEIB that a new
Global Entry Program (GEP) is a US Customs training on training on Department of Revenue
and Border Protection (CBP) program that allows speedy Intelligence Course was conducted by Military Intelligence
clearance for low-risk travelers upon their arrival in the Training School & Depot, Pune from 04th April 2022 to
US. On landing at the selected airport in the United States, 16th April 2022.
the approved applicants can make their way ahead
The training calendar for the FY 2022-23 was
through automatic kiosks instead of standing in the
prepared and shared with all the concerned training
immigration lines. The travellers are pre-approved for the
institutes. In this year, details of the training programmes
program after a serious background check. CEIB is the
conducted by the Bureau so far are as under:
Nodal Agency in the Ministry of Finance for giving
S.No. Name of the Institute Conducted Date/Duration of No. of

Course/Training Course/Training the Course/Training Participants
Nominated for
Training
1. Department of Military Intelligence 04th to 16th April 14

Revenue Intelligence Training School & 2022
Course Depot, Pune
(MINTSD)
2. Legal Aspects and National Law 25th to 27th May 36
Legal Matters University, Dwarka, 2022
Delhi
3. Intelligence Gathering Cabinet Secretariat 06th to 10th June 25
Intelligence Tradecraft Training Academy 2022
Gurgaon.
4. Intelligence Gathering National Intelligence 13th to 17 June 2022 50

Intelligence Tradecraft Academy, Intelligence
Bureau, Dwarka, New
Delhi.
5. Trade Based Money State Bank Institute of 20th & 21st June 15
Laundering Consumer Banking, 2022
Hyderabad
6. Techniques of National Academy of 2nd to 4th August 155
Investigation using Direct Taxes, Nagpur 2022
Digital Forensic
7. Investigating National Institute of 06th to 09th 32
Economic Crime in Securities Markets, September, 2022
Securities Market Navi Mumbai
170
xiii. Implementation of the conservation of foreign Goods and Services Tax Network (GSTN) incorporated
exchange and prevention of smuggling activities for providing IT platform for the GST, Union Territories
(COFEPOSA) Act, 1974. Goods and Services Tax (UTGST) Act, 2017 etc. Vide
Finance Act, 2021, section 8G has been inserted in the
Conservation of foreign exchange and prevention
Indian Stamp Act, 1899 regarding strategic sale,
of smuggling activities is of prime importance for the
disinvestment etc. of immovable property by Government
economic health and national security of a Nation.
company not liable to stamp duty.
Accordingly, the links which facilitate the violations of
foreign exchange regulations and smuggling activities are GSTN provides IT backbone to the entire GST
required to immobilize by detention of persons engaged system, which has been developed on open-source
in these operations as smuggling, foreign exchange platform, using the latest and scalable architecture design.
racketeering and related activities have a deleterious The Board of Directors of GSTN in their meeting held on
effect on the national economy and thereby causes a 30th June, 2022 has approved and registered the transfer
serious adverse effect on the security of the state. of shareholding in favour of Centre and States (including
UTs) from Non-Government Institutions. Therefore,
To deal with this menace, the Conservation of
Centre holds 50% and States hold 50% of total
Foreign Exchange and Prevention of Smuggling Activities
Act, 1974 (COFEPOSA Act, 1974) has been enacted to shareholding in GSTN w.e.f. 30th June, 2022.
provide for preventive detention law to detain smugglers Over a period of time, GSTN has taken various
and foreign exchange manipulators from indulging in steps to improve the taxpayer experience in tax
these prejudicial activities. compliances and has streamlined the operation of GST
The COFEPOSA W ing of Department of System. With these improvements, GST System in now
Revenue is entrusted with the task of effective able to scale up and cater more than 3 lakhs taxpayers
implementation of the COFEPOSA Act, 1974. This wing at any point without any hassle. Further, GSTN has
is functioning under the administrative control of Central implemented several initiatives for simplifying GST
Economic Intelligence Bureau (CEIB). compliance with a view to facilitate ease of doing business
and has provided e-Invoice facility, SMS based "Nil" return
During the current F.Y 2022-23, preventive filing facility, Quarterly return filing and Invoice furnishing
detention orders against 06 persons (from 01.04.2022 to facility for MSMEs; auto-drafting of return and tax
30.11.2022) were passed under the COFEPOSA Act, payment. End to end automation of refund and single
1974 whereas 06 detentions orders (including the orders authority disbursement, Invoice Registration Portal (IRP)
issued and executed before 01.04.2022) were confirmed for generating Invoice Reference Number (IRN) of e-
by the various Advisory Boards constituted under the said Invoice, 59 Minutes Loan Scheme for MSME, enhanced
Act. Further, 08 persons (including the absconders in knowledge repository to help quicker resolution of
respect of the detention orders issued in previous years) taxpayers' grievances; single window registration of
were detained during the period from 01.04.2022 to companies through SPICe-AGILE-Pro system of MCA;
30.11.2022.
Geo-coding to capture correct address of the taxpayers;
4.8 STATE TAXES Business Intelligence System for identifying non-
complaints and assisting data driven governance; Risk
There are two State Taxes Sections in the
based identification of non-complaint trade; integration
Department of Revenue:
of FASTag (RFID) System of NHAI with e-Way Bill System
a) State Taxes-I of GST for live tracking of the movement of vehicles etc.
have been the spin off advantages of GST System.
b) State Taxes-II
As a part of revenue augmentation, several
4.8.1 State Taxes - I Section measures have been taken, which include inter-alia
Nudging taxpayers through regular emails and SMS, the
State Taxes -I Section of the Department of
Red-flag reports, Comparison reports, return defaulters'
Revenue deals with legislative work relating to Central
notice, centralized suspension/ revocation, blocking/
Acts having significant interface with the States like the
unblocking of e-Way Bills/ GSTR-1 on non-filing of two
Indian Stamp Act, 1899 and the Constitution (One
GSTR-3B returns etc. have been implemented.
Hundred and First Amendment) Act, 2016 for
implementation of Goods and Services Tax (GST) as well The details of GST collection during the last 5
as administrative and budgetary matters in respect to years are furnished as given below:
171
(in Rs. Crore)
Financial Year
Head 2022-23
2017-18
2018-19 2019-20 2020-21 2021-22 (till November,
(Annualised)
2022)
CGST 1,78,314 2,02,444 2,27,442 2,09,916 2,69,137 2,10,954
SGST 2,57,705 2,78,817 3,09,231 2,72,828 3,44,216 2,67,818

IGST 5,81,034 5,98,739 5,86,699 5,65,719 7,62,270 6,27,816
Domestic 2,89,639 3,08,243 3,19,422 3,03,946 3,85,314 3,12,905
Imports 2,91,395 2,90,495 2,67,277 2,61,774 3,76,956 3,14,911
Compensation
Cess 93,922 97,369 98,745 88,342 1,07,667 84,333
Domestic 84,479 87,290 88,303 79,152 98,878 76,838
Imports 9,443 10,080 10,442 9,190 8,789 7,496
GST
Collection
(Total) 11,10,975 11,77,368 12,22,116 11,36,805 14,83,291 11,90,920
Average
Collection 92,581 98,114 1,01,843 94,734 1,23,608 1,48,865
YoY Growth
(%) 6% 4% -7% 30% 27%
4.8.2 State Taxes -II Section GST compensation for FY 2017-18, 2018-19 and 2019-
20 has been released to States. Due to impact of Covid
State Taxes-II Section of the Department of 19 on GST revenues the Compensation requirement for
Revenue handles legislative work relating to Central Acts 2020-21 increased and at the same time the
having significant interface with the States like the Central Compensation Cess collection fell down. This created a
Sales Tax Act, 1956, the Goods and Services Tax gap in the resources available for payment of
(Compensation to States) Act, 2017. Facilitation in respect Compensation to States.
of State level Value Added Tax (VAT) in regulation and
payment of GST compensation to States/ UTs on account The issue of shortfall of cess collection into
of revenue loss due to implementation of GST w.e.f. Compensation Fund and GST compensation to States/
01.07.2017 have been dealt by this division as per details UTs due to economic impact of the pandemic has been
given below: deliberated in 41st, 42nd & 43rd GST council meetings.
` 1.1 lakh crore for FY 2020-21 & ` 1.59 lakh crore for
GST Compensation to States/ UTs for revenue loss FY 2021-22 has been released to States/ UTs as back to
due to implementation of GST back loan to meet the resource of the States/UTs due to
Section 18 of the Constitution 101st Amendment, shortfall in GST compensation. This arrangement has
2016 provides for payment for Compensation to Stats for been finalized after detailed deliberations with the States
Revenue loss on account of implementation of GST for and all States have opted for this arrangement.
a period of Five years and accordingly, on As per provision of GST (Compensation to
recommendation of GST Council GST (Compensation States) Act, 2017 and taking into account ` 1.10 lakh crore
to States) Act, 2017 has been enacted by the Parliament. for FY 2020-21 and ` 1.59 lakh crore for FY 2021-22
For the purpose of payment of compensation to States, released to States/UTs as back to back loan in lieu of
a GST Compensation Cess is levied on select items under GST compensation as per discussion in GST Council
Section 8 of the GST (Compensation to States) Act, 2017. meetings, entire GST compensation dues of States/UTs
This is transferred into a non-lapsable Fund known as has been cleared by Central Government for period up
GST Compensation Fund which forms part of the Public to 31.05.2022. This decision was taken despite the fact
Account of India as provided in Section 10(1) of the Act. that only about ` 25,000 crore was available in the GST
The loss on account of introduction of GST is calculated Compensation Fund. The balance around `62,000 crore
as per Section 7 of the Act and is fully paid out of the was released by the Centre from its own resources
GST Compensation Fund as per section 10(2) of the Act. pending collection of Cess.
172
On the same line, Centre has also released acquired property of the persons convicted under the Sea
`17,000 crore to States on 24.11.2022 from Consolidated Customs Act, 1878, the Customs Act, 1962 and the
Fund of India against the pending GST compensation Foreign Exchange Regulation Act, 1947 and Foreign
for the period April-June'2022 despite the short Exchange Regulation Act, 1974 and the persons detained
compensation cess collection into compensation Fund under the Conservation of Foreign Exchange and
to assist the States in managing their resources. In Prevention of Smuggling Activities Act, 1974. The
addition, final reconciliation is done for every year, as Narcotics Drugs and Psychotropic Substances Act, 1985
and when States submit CAG certified accounts of GST (NDPSA) provides for tracing, freezing, seizure and
revenues of the State. Centre is committed to release forfeiture of illegally acquired property of the persons
full GST Compensation to the States/UTs as per GST convicted under that Act or any corresponding law of any
(Compensation to States) Act, 2017 as and when the foreign country, and those who are detained under the
audited figures are available for a State. Prevention or Illicit Traffic in Narcotic Drugs and
Psychotropic Substances Act, 1988 and Jammu and
4.9 Competent Authority Kashmir Prevention of Illicit Traffic in Narcotic Drugs and
Psychotropic Substances Act, 1988.
4.9.1 The Appellate Tribunal under SAFEMA
4.9.2.2 SAFEM(FOP) Act and NDPS Act provide for
4.9.1.1 The Appellate Tribunal has been constituted appointment of Competent Authorities for carrying out
under the Smugglers and Foreign Exchange Manipulators forfeiture of illegally acquired properties. At present, the
(Forfeiture of Property) Act, 1976 (SAFEMA). It started Offices of Competent Authorities are located at Kolkata,
functioning w.e.f. 03.01.1977. It hears the appeals files Chennai, Delhi, Mumbai and one unit is at Ahmedabad.
against the orders of Competent Authority under SAFEM/ SAFEM (FOP)A envisages establishment of an appellate
NDPS Acts, Adjudicating Authority under PMLA, FEMA forum, namely the Appellate Tribunal to hear the appeals
and Prohibition of Benami Property Transactions Act filed against the orders of Competent Authority under
1998. SAFEMA/NDPSA Act.
4.9.1.2 The Appellate Tribunal is located at New Delhi. 4.9.2.3 As per the latest amendments vide the Finance
It consists of a Chairman (who is, or has been a Judge of Act 2021 to the Prohibition of Benami Property
the Supreme Court or Chief Justice of a High Court) and Transaction Act, 1988, the Competent Authority appointed
four Members. The four Members are appointed from under sub section (1) of section 5 of the Smuggling and
among the officers of the Central Government who have Foreign Exchange Manipulators (Forfeiture of Property)
held the post of Additional Secretary to the Government Act, 1976 is the Adjudicating Authority to exercise
of India or any equivalent or higher post and have jurisdiction, powers and authority conferred by or under
performed judicial, quasi-judicial or adjudicating function PBPT Act, 1988. PBPT Act was enacted to prohibit
for three years. benami transactions where any person enters into a
benami transaction in order to defeat the provisions of
4.9.1.3 During the period 01.12.2021 to 24.11.2022 in any law or to avoid payment of statutory dues or to avoid
total 1709 Appeals (836 in PMLA, 108 in NDPSA, 04 in payment to creditors, the beneficial owners, benamidar
SAFEMA, 106 in FEMA and 665 in PBPT) were received and any other person who abets or induces any person
and in addition 2697 Miscellaneous petitions (1248 in to enter into such benami transaction, shall be punishable
PMLA, 158 in NDPSA, 08 in SAFEMA, 161 in FEMA and under the said Act.
1122 in PBPT) were filed during the said period. Total 43
appeals (01 in PMLA and 01 in NDPSA, 01 in SAFEMA, 4.9.2.4 The details regarding the number of reports
01 in FEMA and 39 in PBPT) were disposed during the received by the Competent Authorities from enforcement
said period. agencies, the number of show cause notices issued and
the value of the property involved therein, the number of
4.9.2 Competent Authority under SAFEMA/ NDPSA orders of forfeiture passed and the value of the property
involved therein, and the value of sale proceeds of the
4.9.2.1 The Smugglers and Foreign Exchange property disposed of, year-wise, from 2000-01 to 2022-
Manipulators (Forfeiture of Property Act, 1976 2023 are given in Appendix 'A'.
(SAFEM(FOP)A), provides for forfeiture of illegally
173
Appendix ‘A’
FORFEITURE OF ILLEGALLY ACQUIRED PROPERTY UNDER NDPSA AND SAFEM (FOP)A BY
COMPETENT AUTHORITIES
Financial Number of Number of Notices for Number of Forfeiture Value of sale
Year reports Forfeiture issued and Orders issued and proceeds of
received from value of Property value of Property Property
Enforcement involved. involved. disposed of (in
Agencies Rs. lakhs)
Number Value (in Number Value (in
Rs. Lakhs) Rs.
Lakhs)
1 2 3 4 5 6 7
2000-2001 491 159 2755 103 1662 201
2001-2002 228 89 7223.12 50 3202.39 107
2002-2003 995 72 1269.22 53 2498.60 18
2003-2004 1180 97 1547.75 25 977.01 51.6
2004-2005 1357 162 3251.64 25 650.93 73.67
2005-2006 607 214 10074.59 91 744.60 153.27
2006-2007 514 243 3017.27 112 868.57 2.63
2007-2008 507 210 12784.31 24 551.10 366.97
2008-2009 99 39 2065.88 28 1115.33 121.30
2009-2010 48 21 178.5 20 2153.20 Nil
2010-2011 128 19 1394.06 22 45.57 1123.49
2011-2012 112 17 690.85 22 391.58 191.27
2012-2013 40 13 3091.48 10 101.10 Rs.1294.28
lakhs +
US $3400
2013-2014 61 5 73.55 3 118.73 608.37
2014-2015 54 24 643.908 18 3253.55 166
2015-2016 92 22 1553.81 12 308.93 11.52
2016-2017 45 22 1232.95 19 2.35 778.44 and

$443783.19
2017-2018 40 7 77.92 3 39.47 1641.45
2018-2019 104 28 1243.69 4 94.26 918.93
2019-2020 105 36 7417.96 52 15,606.82 371.89
2020-2021 38 17 3549.17815 1 22500.00 3.70
2021-2022 50 2 25.66 4 42.58 536.7
2022-23 (Jan 49 12 1265.96 7 201.05 551.706
2022 to Nov.
2022)
174
4.10 Customs, Excise & Service Tax Appellate 4.10.1.3 Each Bench of the Tribunal consists of a
Tribunal (CESTAT) Judicial Member and a Technical Member. To expedite
the disposal of small cases with financial stake up to Rs.
4.10.1 Functions/ Working of the Organization 50,00,000/- (Fifty Lakhs Rupees), wherein no question
of rate of duty or valuation is involved, single member
4.10.1.1 The Customs, Excise and Service Tax
bench is constituted. The Tribunal is also the final
Appellate Tribunal formerly known as Customs Excise &
appellate authority hearing appeals from the orders of
Gold (Control) Appellate Tribunal was constituted in the
the Commissioner (Appeals). Appeals from the orders
year 1982 under the Customs Act, 1966. Appeals are
passed by the Tribunal lies to the Supreme Court on
filed before the Tribunal against the orders passed by Classification and Valuation issues as they have all India
the Commissioners of Customs and Central Excise under ramifications.
the Customs Act, 1962, Central Excise Act, 1944 and
Finance Act, 1994. Appeals on Anti-Dumping duty are 4.10.1.4 The Tribunal is headed by the President who
also filed before the Tribunal under the Customs Tariff is a retired Judge of a High Court. There are 16 posts of
Act from the order passed by the Designated Authority in Members (Judicial) and 16 posts of Members (Technical).
the Commerce Ministry and special bench headed by At present, 13 posts of Technical Members and 7 posts
the President of the Tribunal hears such cases. Whenever of Judicial Members are lying vacant. There is anticipated
divergent decisions are passed by co-ordinate benches vacancy of 2 Technical Members and 4 Judicial Members
of the Tribunal, the conflicting decisions are resolved by in the year 2023.
referring the issue to a Larger Bench constituted by the 4.10.2 Highlights of the performance and achievements
President. Decisions rendered by the larger bench is during the year
binding on all Division Benches and subordinate
adjudicating authorities. Whenever difference of opinion During the pandemic, the Tribunal resorted to virtual
hearing mode by engaging open-source platform Jitsi
arises between the members in a Division Bench a
Meet. This facility was implemented in all 9 benches and
reference is made to the Third Member nominated by
appeals have been disposed on regular basis. Time limit
the President.
within which appeals have to be disposed as per the
4.10.1.2 The Principal Bench of the Tribunal is direction of the higher courts have been compiled even
situated at Delhi and the regional benches are situated during pandemic time. Appeals filed without pre deposit
at Mumbai, Kolk ata, Chennai, Bangalore and of mandatory duty/tax were identified and listed on priority
Ahmadabad. For speedy disposal of appeals to the benefit basis directly before the Bench instead of taking longer
of litigants, the Ministry of Finance, vide notification no. route of issuing defects memo with a view to curb undue
7/2013 has notified creation of three new benches of the financial advantage by the parties. Despite various
Tribunal at Chandigarh, Allahabad and Hyderabad and constraints including several vacancies of Members and
three additional Benches one each at Delhi, Mumbai and subordinate staff, the appeals were disposed with a
Chennai. The regional benches at Allahabad, Chandigarh consistent pace. A sample statement showing institution
and Hyderabad started functioning w.e.f. 01.10.2015, and disposal of appeals of the current financial year is
01.12.2015 and 14.12.2015 respectively. With a view to given below:
rationalize disposal of appeals, additional benches have
Total
been shifted to Ahmedabad, Bangalore and Kolkata from Year Institutions Disposal
Pendency
the existing benches of Delhi and Mumbai. Now the bench
position at each place is as follows: April 2022 7372 3390 78015
S. No. Place No. of Benches to
November
1. New Delhi 2 2022
2. Mumbai 3
4.10.3 The process of online filing of appeals and
3. Kolkata 2
online payment of appeal fee is undertaken by NIC, which
4. Chennai 2 is nearing completion and expected to be implemented
from next year 2023. All orders including daily orders of
5. Bangalore 2
the Tribunal are also uploaded besides real time display
6. Ahmedabad 2 of item number taken by the Bench which is available
both on the website accessible to the litigants/advocates
7. Allahabad 1
from anywhere and on the display boards installed in the
8. Chandigarh 1 Tribunal premises. The Tribunal ensures transparency
on the judicial side by proactive disclosure of information
9. Hyderabad 1
related to the cases.
175
4.10.4 The whole of north eastern region is 4.11.1.1 Highlights of the Performance and
conveniently placed under the jurisdiction of Kolkata achievements of the Commission during the Year is
Bench as indirect tax litigation from N.E. region is relatively given below:
low in number. No. of No. of Duty Settled
4.10.5 All facilities as required by the Government applications applications (Rs. in crores)
in respect of weaker sections including differently abled received upto disposed upto
and SC/ST are strictly followed and extended to the November, upto November,
eligible candidates/Staff. 2022 November, 2022
2021
4.10.6 All facilities as required under O.M. 118 15** 2.49*
No.13018/4/2009-Estt.(L) dated 08/07/2009 are being
extended to female employees of this Tribunal to redress * Includes Penalty and Interest Amount Settled
** Includes 12 cases in FY 2022-23 which got
the grievances of women, a complaint committee under
abated as order could not be passed within
the chairperson Dr. Rachna Gupta, Member (Judicial),
prescribed time for want of bench in the
CESTAT, has been constituted. So far, no complaint has
Commission.
been received by the committee.
4.11.1.2 Function & Working of the Organization.
4.10.7 The dynamic website started in January 2017
though meets the requirements of the Tribunal, the basic The Central Government have constituted the
security features are not found in order. Hence data are Customs & Central Excise Settlement Commission under
section 32 of the Central Excise Act, 1944 vide Notification
now migrated to the cloud from the local server and a
No. 40/99-CX(NT) dated 09.06.1999 and 41/99-CX(NT).
new cloud based website is on the anvil. This will be
The Commission consists of the Principal Bench presided
operational, within the financial year after necessary over by the Chairman at New Delhi and 3 Additional
security audit clearance is done by the NIC. The Tribunal Benches at Chennai, Mumbai and Kolkata presided over
is poised to start online filling of appeals after more by Vice Chairman with 2 Members in each Bench. The
security features are added in the new programme. Commission functions under the Department of Revenue
4.10.8 The Tribunal is trying to strictly adhere to the in the Ministry of Finance.
provisions of Fiscal Responsibility & Budget Management The Settlement Commission has been set up to
(FRBM) Act. All expenditures are limited to the budget as expedite recovery of Customs, Central Excise & Service
allocated for the Tribunal. The Members of the Tribunal Tax revenue locked up in adjudication proceedings. It
are being sent on official tour to other benches where offers a one time opportunity to tax payers to make a
vacancies are existing. The Members are requested to true and full disclosure of their liabilities. Settlement
travel by economy class though the entitlement is Commission has also been empowered to grant
business class. In spite of escalation in prices of various immunities from penalty and from prosecution, thus
items/ services, the expenditure is restricted to within the offering an opportunity to tax payers to settle the disputes
granted funds. Financial propriety and reasonableness expeditiously.
are exercised while spending from all heads. At present, there are only 3 members (including
Chairman) who are looking after the Settlement
4.11 Authority for Advance Ruling Division
Proceedings of all the Benches.
4.11.1 Customs, Central Excise & Service Tax 4.11.1.3 Year-Wise Performance/achievements of the
Settlement Commission Settlement Commission:
Disposal
No. of Applications Duty settled
Year No. of Applications No. of Applications
Received (Rs. in
Rejected Settled
Crores)
1999-2000 3 1
2000-01 327 28 146 21.28
2001-02 559 63 153 26.64
2002-03 656 105 365 187.51
2003-04 753 141 431 114.04
2004-05 1273 205 1143 181.25
2005-06 1587 283 1207 129.09
2006-07 1960 219 1434 239.02
2007-08 1596 369 2274 507.92
176
2008-09 857 124 569 125.43

2009-10 723 68 599 67.36
2010-11 885 103 770 114.33
2011-12 959 247 702 462.48
2012-13 1610 74 934 198.06
2013-14 1623 156 1680 482.99
2014-15 1525 353 1469 743.32
2015-16 1262 208 1154 654.31
2016-17 844 174 814 1037.13
2017-18 563 116 488 428.95
2018-19 535 73 417 291.06
2019-20 257 39 249 243.49
2020-21 242 29 249 170.39
2021-22 194 16* 6 5.40*
2022-23 (upto
118 12** 3 2.49*
Nov. 22)
Total 20911 3206 17256 6433.94
* Includes Penalty and Interest Amount
** Includes 8 cases in FY 2021-22 and 12 cases in FY 2022-23 respectively which got abated as
order could not be passed within prescribed time for want of bench in the Commission.
4.11.2 National Institute of Public Finance and Policy by the authorities below the rank of the Collectors (now
(NIPFP) called Commissioners), were concerned, the same were
to be filed before the appellate Collectors of Customs &
4.11.2.1The NIPFP is a premier research organization Central Excise. Erstwhile Section 131 of the Customs
for conducting research, policy advocacy, and capacity Act, 1962 and Section 36 of the Central Excise & Salt
building activities in the field of public finance and policy. Act, 1944, empowered the Central Government to revise
Established in 1976 as an autonomous institution under the orders passed by the CBEC and appellate Collectors
the Societies Registration Act, 1860, the Institute has in exercise of their appellate jurisdiction. At the
made significant contributions to policy reforms at all
Government level, while Secretary (Revenue) or Special
levels of Government of India. The NIPFP provides
Secretary disposed of the Revision Applications against
research, engages in policy advocacy and capacity
orders passed by the CBEC, and the Addl. Secretary or
building on public finance and policy.
Joint Secretary disposed of the applications against the
4.11.2.2 The Governing Body is chaired by an Economist orders passed by the appellate Collectors of Customs &
of Eminence and at present Dr. Urjit Patel, former Central Excise and executive Collectors of Customs and
Governor of RBI, is the Chairman of the Governing Body. Central Excise. The Finance (No. 2) Act, 1980 sought to
Government is represented by the Secretary (Revenue), introduce a new system by establishing appellate Tribunal.
Secretary (Economic Affairs) and Chief Economic Adviser The appellate jurisdiction of CBEC and Revisionary
of the Ministry of Finance. There are three eminent jurisdiction of the Central Government were abolished
Economists and representatives of FICCI and with effect from 11.10.1982, except a few residual
ASSOCHAM on the Governing Body. There is an transitional provisions and the Customs, Excise and Gold
Academic Committee advising the Director. Appellate Tribunal (now CESTAT) was set up with effect
from 11.10.1982. The Finance Act, 1984, revived the
4.11.2.3 Initiatives relating to Gender Budgeting and Revisionary powers of the Central Government in
Empowerment of Women: specified type of cases. On the Customs side, Section
NIPFP has undertaken research in the topic and 129 DD read with proviso to Section 129(A) of the Act,
conducted policy dialogue at national and international empowered Central Government to revise the appellate
fora including UN organizations. orders passed by the Commissioner of Customs
(Appeals). On Central Excise side, Section 35EE read
4.12 Revision Application Unit with first proviso to sub-section (ii) of Section 35B of the
4.12.1 Formation, function and working of the Central Excise Act, 1944 gave review and revisionary
Revision Application Unit powers to Central Government to revise the orders
passed by the Commissioner of Central Excise (Appeals).
4.12.1.1 The mandate of the Revision Application Unit is
to dispense justice. Under the scheme operative till 4.12.1.2 On the Service Tax side the two provisos
10.10.1982, the appeal against the orders of the inserted in sub-section (1) of Section 86 of the Finance
Commissioners (then called Collectors), of Customs & Act 1994 vide Section 117 of the Finance Act 2015 (with
Central Excise lay with the Central Board of Excise & effect from 14.05.2015) stipulate that where an order,
Customs. As far as the appeals against the orders passed relating to a service which is exported, has been passed
177
under section 85 and the matter relating to grant of rebate (c) Goods exported outside India (except to Nepal
of service tax as input service, or rebate of duty paid on or Bhutan) without payment of duty.
inputs, used in providing such service, such order shall
be dealt with in accordance with the provisions of section 4.12.2.3 Service Tax jurisdiction - The provisions
35EE of the Central Excise Act 1944. All appeals in such of Section 35EE of the Central Excise Act 1944, which
matters pending before the Appellate Tribunal shall also dealt with revision by the Central Government, have been
be transferred and dealt with in accordance with the made applicable to Chapter-V of the Finance Act, 1944
provisions of Section 35 EE of the Central Excise Act dealing with Service Tax. In the Finance Act 2015, the
1944. Section 86 has been amended to prescribe that the
remedy against the order passed by Commissioner
4.12.1.3 The Revision Applications filed either by (Appeals) in a matter involving rebate of Service Tax,
parties or department against the orders of Commissioner shall lie in terms of Section 35EE of the Central Excise
(Appeals) are considered and decided by Additional Act 1944. In such cases against the order passed by the
Secretary (RA). The Central Government is the highest Commissioner (Appeals), revision application is required
authority in such revision and review matters and orders to be filed before AS (RA).
thus passed by the Additional Secretary (RA) are final.
Petitioners, aggrieved with the revision order passed by 4.12.3 Process
Additional Secretary (RA) may take re-course to writ The Revision Application Unit receives the
petitions under Article 226 of Constitution of India. revision application in prescribed form EA-8/CA-8 filed
4.12.1.4 The Revision Application Unit is directly by department as well as parties. The stipulated time for
responsible to Secretary (Revenue). filing such applications is 90 days from the date of
communication of order-in-appeal. Delay up to 90 days
4.12.2 Jurisdiction can be condoned by Central Government in deserving
cases. The Revision Application Unit on receipt of revision
4.12.2.1 Customs jurisdiction - Section 129 DD read
applications issues the acknowledgement to the applicant
with proviso to Section 129 A (1) of Customs Act, 1962
along with deficiency memo if any deficiency is found.
empowers the Central Government to revise or review
Simultaneously, a check-list in prescribed format is also
the appellate orders passed by Commissioner of Customs
prepared. Notice is issued to respondent party for filing
(Appeals) if such order related to:-
counter reply. Thereafter, personal hearing is fixed / held
(a) Any goods imported or exported as baggage; in cases, in the order of seniority. Out of turn hearings
are allowed only in deserving cases involving substantial
(b) Any goods loaded in a conveyance for revenue, recurring issues resulting into multiplicity of
importation into India, but which are not unloaded cases, interest liability, the issue is no longer res integra,
at their place of destination in India, or so much passenger is going abroad and in cases of financial
of the quantity of such goods as has not been hardship. After completion of hearing, final revision order
unloaded at any such destination if goods is issued by Additional Secretary (RA).
unloaded at such destination are short of the
quantity required to be unloaded at the 4.12.4 Latest Developments
destination; The Revision Application unit was earlier headed
by a Commissioner and ex-officio Joint Secretary. The
(c) Payment of drawback as provided in Chapter X working of this set-up was stayed by an order of Punjab
and the rules made there under. & Haryana High Court, upheld by the Apex Court also,
whereby it was directed that an officer of a higher rank
4.12.2.2 Central Excise jurisdiction - Section 35 EE than the Joint Secretary be posted as the orders of
read with proviso to Section 35 B (1) of Central Excise Commissioner (Appeals) are being revised and an officer
Act, 1944 empowered the Central Government to revise of the sam e rank cannot revise these orders.
or review the appellate orders passed by Commissioner Subsequently, an officer of the rank of Principal
of Central Excise (Appeals) if such order related to: Commissioner and ex-officio Additional Secretary was
(a) A case of loss of goods, where the loss occurs posted in Aug, 2017 and an additional office of Additional
in transit from a factory to a warehouse or to Secretary (R.A.) was created at Mumbai to reduce the
another factory, or from one warehouse to pending cases which got piled up during the period of
another or during the course of processing of the stay. The office at Delhi caters to Northern, Southern and
goods in a warehouse or in storage, whether in Eastern regions while the Mumbai Unit takes up the cases
a factory or in a warehouse; pertaining to Western regions.
4.12.5 Performance
(b) A rebate of duty of excise on goods exported to
any country or territory outside India or on Since the joining of Additional Secretary in November,
excisable materials used in the manufacture of 2020 the work in the unit has picked up very fast, from
goods which are exported to any country or November, 2020 to November, 2022, 1170 Revision
territory outside India; Applications have been disposed of by Delhi unit alone.
178
5. Integrated Financial Unit (IFU) (b) Procurement of goods and serv i ces
including procurement of anti-smuggling
Integrated Finance Division of the Department
equipment i.e. scanners and marine vessels.
of Revenue is under the direct supervision of Additional
Secretary & Financial Advisor (Finance). There are three (c) Proposals for deputation abroad of officers
units dealing with budget, finance and expenditure of the Department, CBDT, CBIC and their
management in respect of the grants pertaining to field offices.
Department of Revenue, Direct Taxes and Indirect
(d) Restructuring proposals, redeployment of
Taxes. Director (Finance), D/o Revenue/GST & Customs
personnel in field formations and constituent
and Director (Finance), Direct Taxes/ Expenditure assist
units.
the Additional Secretary & Financial Advisor (Finance).
(e) Com prehensiv e Comput erization of
5.1 Activities undertaken by the Integrated
Department of Revenue, its field formation
Finance Unit:
including Customs and GST formations and
All offices under the Department of Revenue, Income Tax field formations.
which inter-alia include Revenue headquarters, Central
(f) Proposals from Committee of Management
Board of Direct Taxes (CBDT), Central Board of Indirect
(COM), D/o Revenue which oversees the
Taxes & Customs (CBIC), Narcotics Control Division,
functioning of Government Opium & Alkaloid
Central Bureau of Narcotics, Chief Controller of Factories,
Works (GOAWs).
Central Economic Intelligence Bureau, Financial
Intelligence Unit (FIU-IND), Goods & Service Tax Council (g) Grants-in-aid to National Institute of Public
Secretariat, Enforcement Directorate, Customs, Excise Finance & Policy and Central Revenue
& Service Tax Appellate Tribunal (CESTAT), Settlement Sports & Cultural Board.
Commission (IT/WT), Authority for Advance Rulings,
(h) Proposals for Delegated Investment Board
Appellate Tribunal for Forfeited Property, Adjudicating
(DIB), Public Investment Board and Cabinet
Authority under PMLA, Income Tax Ombudsman,
Committee on Economic Affairs (CCEA)
National Committee for Promotion of Social & Economic
relating to comprehensive computerization
Welfare, all field offices of Income Tax Department which
plan of CBDT/CBIC, capital expenditure
include Directorate General of Income Tax (Systems),
involving construction of office/residential
Directorate General of Income Tax (Legal & Research),
complexes and readymade office/residential
Directorate of Income Tax (O&M Services), Directorate
buildings of all the three Departments.
of Income Tax (Infrastructure), National Academy of Direct
Taxes and other field offices under the Central Board of (i) Proposals received for sanction of financial
Direct Taxes all field offices under Central Board of assistance from the Customs & Central
Indirect Taxes & Customs which include Directorate Exci se W elf are F und and Special
General of Systems & Data Management, Directorate Equipment Fund. Revision of norms were
General of Human Resource Development, Directorate f inalized in respect of setting up of /
of Revenue Intelligence, Directorate General of Goods refurbishing of recreation/sports clubs,
and Service Tax Intelligence, Directorate General of gymnasiums, Departmental Canteens,
Goods and Service Tax, National Academy of Customs, crèches for children of Departmental
Indirect Taxes & Narcotics, etc., are serviced by the three officials, guest houses and cash award
units of Integrated Finance Division in terms of Budget scheme for meritorious children with
formulation, fund allocation, expenditure monitoring & special emphasis on girl children and
control, enforcing economy, scrutiny and sanction of children of group ‘D’ staff.
expenditure proposals beyond the delegated powers of
field offices. (j) Schemes proposed by CBDT/CBIC for
utilizing the budget provision under 1%
5.2 Details of expenditure and financial proposals Incremental Revenue Incentive Scheme for
scrutinized and approved: obtaining approvals of the competent
authority.
(a) Creation and conti nuat ion of posts,
construction/purchase/hiring of offices, as (k) Proposals involving relaxation/interpretation
well as residential accommodation for the of financial rules and all proposals requiring
field formations of Central Board of Indirect reference to the Department of Expenditure.
Taxes & Customs and Central Board of
Direct Taxes, Department of Revenue and 5.3 The expenditure budget/non-tax revenue receipts
its attached offices. of Department of Revenue, Direct Taxes and Indirect
179
Taxes for BE 2022-23 was prepared. RE 2022-23 and 5.6 The Integrated Finance Division has also been
BE 2023-24 ceiling has been finalized and communicated entrusted with the formulation of schemes of important
by the Budget Division, Department of Economic Affairs. expenditure proposals from their initial stage. It also
The Details of RE 2022-23 and BE 2023-24 in respect of follows up with the Department/Boards for the settlement
all the three grants are as below: of audit objections, inspection reports, draft audit paras
(` in crore) and reports of PAC/Standing Committee.
Grant
Grant
2022-23 2023-24
6. Implementation of Official Language Policy
No.
BE RE BE 6.1 The Department of Revenue has a full-fledged
D/o Revenue 35 227552.52 247295.02 189827.37 Official Language Division which is entrusted with the task
Direct Taxes 36 9308.80 9431.15 9892.87 of implementing the Official Language Policy of the
Indirect Taxes 37 41139.17 36687.94 38510.58 Government of India. This Division consists of one post
of Director (OL) and operates through four Official
Language Sections; each headed by an Assistant Director
5.4 Integrated Finance Division has taken the following (OL) and there are two posts of Deputy Director (OL) for
steps/initiatives in 2022-23: their supervision. Presently one post of Deputy Director
(i) Implementation of Cash Management Plan as (OL); two posts of Assistant Director (OL) and 5 posts of
per Monthly Expenditure Plan (MEP) and Senior Translation Officer are lying vacant. Still matters
relating to implementation of Official Language Policy of
Quarterly Expenditure Allocations (QEA) as
the Union were dealt with by this division and follow up
envisaged by Budget Division of Department of
action taken on the orders and instructions issued by the
Economic Affairs, Ministry of Finance.
Department of Official Language from time to time. Entire
(ii) Review of Monthly and Quarterly Expenditure vis- translation work of the Department from English to Hindi
à-vis budgetary allocations and MEP/QEA and and vice-versa is ensured by the Official Language
report to Revenue Secretary and Expenditure Division.
Secretary in compliance of the guidelines of the The Department of Revenue is notified under
Department of Expenditure, Ministry of Finance Rule 10(4) of the Official Language Rules, 1976. 30
for strict financial discipline. sections of the Department have been specified for doing
their entire work in Hindi.
(iii) Review of specific activities/developments of
Department of Revenue and report to Secretary 6.2 Performance of the OL Division during the
(Expenditure) on monthly basis. year under report:
(iv) Enforcement of instructions on economy in a. All the documents pertaining to CBIC, CBDT
expenditure by periodic review of expenditure and & Revenue Headquarters were invariably
advisories to spending authorities for expenditure issued bilingually as per the requirement
control in line with the economy instructions under Section 3(3) of the Official Languages
issued by the Department of Expenditure. Act, 1963;
(v) Preparation and budgetary allocation for b. All gazette notifications, replies to Parliament
Compensation to States/UTs for revenue loss on Questions and Assurances pertaining to
roll out of GST; Government Opium & Alkaloid CBIC, CBDT and Revenue HQs were
furnished bilingually;
Works; Acquisition of residential and office
accommodation; Strengthening of IT capability c. Notes and monthly summaries for the
f or e-gov ernance of CBIC, CBDT and Cabinet, Action Taken Reports (ATRs) on
Department of Revenue; Acquisition of ships and the Report of the Comptroller & Auditor
f leets to strengt hen Marine capabili ty & General of India, Annual Report and
Acquisition of Anti-Smuggling equipment. Outcome Budget of the Ministry of Finance
were translated and made av ail able
5.5 In addition, the allocation and monitoring of the bilingually;
budget relating to advances, viz. House Building Advance,
Computer Advance etc. were also done. Further, overall d. A number of Double Tax Av oidance
supervision of budgetary mechanism of various scrip- Agreements entered into with various
based schemes and liaisons with Department of countries were translated into Hindi;
Revenue, Department of Commerce and Department of e. Hindi translation of all the material relating
Textiles for operation/ provisioning of funds for these to “Faceless Scheme” for honoring the
schemes. honest tax payers was provided; and
180
f. Website material received from all the fortnight for the gazetted officers, Hindi speaking non-
sections of the Department of Revenue gazetted officers as well as the non-Hindi Speaking
Headquarters, CBDT and CBIC was non-gazetted officers separately. Those who secured
translated into Hindi and uploaded on the first, second and third positions in these competitions
Ministry’s website bilingually. have been given cash prizes of Rs. 5000/- (First prize),
Rs. 3000/- (Second prize) and Rs. 2000/- (Third prize)
6.3 Hindi Salahakar Samiti and OLIC meetings:
and also 3 consolation prizes of Rs. 1000/- each were
The Joint Hindi Salahakar Samiti of the Department of given.
Revenue, Department of Expenditure, Department of
6.7 Training:
Investment and Public Asset Management & Office of
the Comptroller and Auditor General of India has been During the year 2021-22, 01 MTS was nominated
constituted on 08 August, 2022 and the resolution was for training in Hindi typing in the course run by the Central
published in the Gazette of India dated 20-26 August, Hindi Training Institute, Ministry of Home Affairs.
2022.
7. Implementation of the Right to Information
6.4 Inspection by Parliamentary Committee on Act, 2005
Official Language:
7.1 Revenue Headquarters
Parliamentary Committee on Official Language
In order to achieve the objectives of Good
inspected 15 subordinate offices of Department of
Governance, it is necessary that the administration
Revenue. The Senior officers and Translation Officers of
should be transparent, responsive, accountable, citizen-
official language division facilitated successful inspections
friendly and able to disseminate the information to the
of these offices.
citizens. Under the provisions of the RTI Act-2005 a
6.5 Official Language Inspections: nodal RTI Cell was set up in the Department of Revenue
to coordinate RTI matters. The RTI Cell collects,
The officers of the Hindi Division of the Department also
dispenses and transf ers the application seeking
carried out inspections of 11 Subordinate Offices under
inf orm ation to the concerned CPI Os, f aci litate
the control of the Department of Revenue during the year
dissemination of information under the provisions of the
under report with the view to assess the progress in use
Right to Information Act, 2005.
of Hindi in the office and suggested ways to accelerate
the use of Hindi in the official work. (i) The Department continued efforts towards to
bring transparency and effective governance, we
6.6 Hindi Day/ Hindi Pakhwara:
have placed information in the public domain on
On the occasion of Hindi Day this year, the Hindi a proactive disclosure basis which is available
Divas Sammelan was organised at Pandit Deen Dayal on the Department’s web site (https://dor.gov.in/
Upadhyaay Stadium, Surat, Gujarat. Honourable Minister rti/revenue-headquters) as required under
of Home Affairs and Minister of Cooperation inaugurated section 4(1) of the RTI Act.
the Hindi Sammelan. The Official Language Officers and
(ii) In regards to the transparency audit which is
the people involved in the official Language work along
carried out each year, the self-appraisal form
with the Hindi Scholars from all over India participated in
submitted has been audited by the National
this Sammelan.
Institute of Public Finance & Policy.
A message was issued by the Hon’ble Finance
(iii) To facilitate contactless and paperless filing of
Minister and Honorable Home Minister exhorting all the
officers/employees of the Department to do their RTI Applications/Appeals, the RTI online portal
maximum official work in Hindi. (www.rtionline.gov.in) has been very convenient
in this regard. The replies to the RTI Application
Hindi Pakhwara was celebrated f rom 14 and Appeals are uploaded on the portal which
September, 2022 to 30 September, 2022. Various may be viewed exclusively by the Applicant/
competitions like Hindi noting & drafting, Essay writing, Appellant.
Extempore Speech competition, Quiz competition, Hindi
typing and Hindi dictation competitions were organized (iv) To make system of transfer of offline RTI
during the Hindi Pakhwara. Also, there was an award Application to other Public Authorities are lodged
scheme for doing maximum work in Hindi during the Hindi on the RTI Request and Appeal Management
181
Information System so that it can be transferred (v) The following table indicates the number of online
immediately to the concerned Public Authority. RTI Applications and Appeals received in the
financial year 2022-23 up to 31.12.2022:
Type No. of Applications No. of cases Request Request/

received during the year transferred to other rejected Appeals
2022-23 including cases PAs u/s 6(3) + accepted
transferred to other Public returned to the
Authorities Applicant
Offline RTI Applications 12 12 0 0
Online RTI Applications 4393 3763 156 364
Offline Appeals 28 28 0 0
Online Appeals 111 111 0 0
Total fee received offline u/s 7(1) is Rs. 290/-
Additional fee received offline u/s 7(3) is Rs. 340/-
7.2 Central Board of Indirect Taxes & Customs 7.3.2 Chief Controller of Factories
(CBIC):
A RTI cell in each unit of this organization, such
7.2.1 T he Directorate General of Taxpayer as the factories at Ghazipur and Neemuch, as also at
Services (DGTS) the Delhi office of the CCF have been set up. These
cells function directly under the officials designated as
This Directorate is the nodal agency under CBIC
to monitor the progress of filing of quarterly returns by CPIO/APIO. The applications received are regularly
public authorities under CBIC on the website of Central disposed of within the prescribed timeframe.
Information Commission (CIC) as required under 7.4 Financial Intelligence Unit – India (FIU-IND):
Section 25(2) of the RTI Act, 2005. It was ensured that
all the field formations under CBIC uploaded their RTI Number of RTI applications received, disposed
Quarterly Returns on the CIC website. During the period, off and denied during the Year 2022-2023 (Up to 5th
applications received under the RTI Act, 2005 were December 2022):
efficiently handled. This Directorate is also a nodal
formation for monitoring and disposal of CPGRAMS and Received Disposed Off Remarks
Transferred Denied
Appeals. During this period all received CPGRAMS and
Information
Appeals were processed/forwarded to the appropriate provided for all 27
formations for further necessary action. Total No of 27 0 0
RTI request
CPGRAMS Received -11881 and Total CPGRAMS received
disposed- 11180. Total CPGRAMS Appeals Received -
3705 and Total CPGRAMS Appeals disposed-3231. Note: FIU-IND has been included in the Second Schedule
of Right to Information Act, 2005 vide Department of
7.3 Narcotics Control (NC):
Personnel & Training notification dated 28.09.2005 and
7.3.1 Central Bureau of Narcotics therefore under Section 24(1) of the Right to Information
Various provisions of Right of Information Act, Act, 2005, is exempt from the operation of this Act, except
2005 have been implemented in the Central Bureau of for the information pertaining to the allegation of corruption
Narcotics in the year 2005. Unit -wise information of and human right violation.
CPIO’s and First Appellate Authorities appointed at
7.5 Customs, Excise & Service Tax Appellate
present is as follows:
Tribunal (CESTAT):
S. Headquarters MP Raj. UP The Public Information Officer and the Appellate
No. Gwalior Unit Unit Unit
1 CPIO 1 17 8 2 Authority as created under the RTI Act are functioning
2 FAA 1 1 1 1 well in all benches of the Tribunal. There is significant
decline in RTI applications filed before the information
Further, it is to apprise that the application
officer. All RTI applications and orders including orders
received under RTI section are dealt with the RTI Act
of the Appellate Authority are uploaded on the website.
and are disposed off in the time limit. Detailed functions
and various aspects of the work done by the Department Proactive disclosure of information to the true spirit of
are also available on CBN website http://www.cbn.nic.in. RTI Act is done in the interest of the public.
182
8. E-governance activities which was launched by the Hon’ble Finance

Minister on 28.05.2020. This facility is now
8.1 Central Board of Direct Taxes (CBDT): available for those PAN applicants who
8.1.1 Activities under E-governance: possess a valid Aadhaar number and have
a mobile number registered with Aadhaar.
(a) Permanent Account Number (PAN): As The allotment process is paperless and an
per section 139A of the Act, PAN (Permanent electronic PAN (e-PAN) is issued to the
Account Number) is a 10 digit alpha-numeric applicants free of cost. Number of PAN
number allotted by the ITD to taxpayers and allotted through this f unctionality till
to the persons who apply for it under the November, 2022 since the inception of the
Act. Permanent Account Number (PAN) project is 1,58,96,747.
enables the department to link all
transactions and correspondences of a b) Integration with Ministry of Corporate
person with the department. Affairs (MCA) for issue of PAN and TAN/
Instant e-PAN for corporate entities:
PAN database has shown steady growth in PAN and TAN allotment has been integrated
tune wi th econom ic progress. The with the process of registration of new
progressive number of PANs allotted up to companies using a Common Application
30 th Nov ember, 2022 (cumulativ e) is Form SPICe at MCA portal. Under this facility
65,35,12,518. During the period between PAN and TAN are being allotted on near to
1st December, 2021 to 30th November, 2022 real time basis. Number of PAN allotted
total 6,43,80,513 PANs have been allotted. through this facility till November, 2022 is
(b) Common Business I denti fication 8,33,603 and the number of TAN allotted
Number (CBIN or BIN): As per section 139A through this facility till November, 2022 is
of the Act, role of Permanent Account 8,34,697. During this year of 2022, similar
Number (PAN) was envisaged as that of a integration was made with MCA for allotment
tax-payer identity limited to ITD. However, of PAN and TAN to new LLPs. Number of
PAN is now required for various activities PAN allotted through this integration till
like opening of a bank account, opening of November, 2022 is 23,625 and number of
a de-mat account, f or other financial TAN allotted through this f acility till
transactions prescribed in Rule 114(B) of the November, 2022 is 23,578.
Income-tax Rules, 1962, registration for c) Integration with SEBI: Integration with
Goods and Services Tax (GST) etc. Thus SEBI, for grant of registration to the Foreign
PAN is leveraged to become Common Portfolio Investor (FPI) by the SEBI and
Business Identification Number (CBIN) or allotment & Issuance of PAN by the ITD has
simply Business Identification Number (BIN) been launched. Under this process PAN/e-
for providing registration to a number of PAN shall be allotted and issued to the FPIs
government departments and services. on the basis of common application form
(c) PAN Verification Facility: PAN verification submitted to the SEBI f or grant of
facility is provided through the website of the registration by SEBI to the entity. Number of
ITD through link “Verify Your PAN” facility PAN allotted to FPIs by the ITD t ill
on off icial websit e of ITD November, 2022 is 2,013.
www.incometax.gov.in, by providing the PAN d) Facility for downloading e-PAN: A facility
Full name and Date of Birth. to enable the existing PAN holder to
Service for PAN verification is also provided download e-PAN through MSP’s websites
by Income-tax PAN Service Providers after OTP authentication has been created.
(UTITSL and NSDL e-Gov) to agencies This enables a secure e-PAN which is
falling under any of the approved categories printable many a time. e-PAN can be
as per procedure laid down by the downloaded in pdf format. Further, facility
Directorate of Income-tax (Systems). to download in .xml format (machine
readable) has also been launched.
8.1.2 New Initiatives
e) Enhanced QR code on e-PAN & Physical
a) Instant PAN allotment through Aadhaar PAN Card: The e-PAN is embedded with
based e-KYC: For the purpose of an enhanced QR code which captures
simplification of Permanent Account Number demographic data as well as photograph
(PAN) allotment the PAN module of DIT and signature of applicant. This QR code
(System) developed the facility for instant can be read through an app which is freely
allotment of PAN (on near to real time basis), available on Google Play Store. The
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enhanced QR code enables offl ine master data management and data
verification of PAN data, thus eliminating analytics. Data has been enriched by
possibility of photo shopping etc. standardization of bank account
resulting in enhanced security of PAN card number/contact/address, address
and e-PAN. clustering, geo-coding, relationship
identification/clustering. Data Analytics
f) Integration of PAN with AADHAAR UIDAI
is being used for identification of high
(Aadhaar PAN linking): Integration of
risk non-filers, selection of cases for
database with UIDAI has already taken place
scrutiny under CASS, identification of
for seeding of Aadhaar with PAN for dual
high risk refund claims, identification
purpose. It prevents any of the duplicate
of high risk remi ttances, risk
PAN from being issued to any applicant
assessment of information received
as well as to identify the applicant having
under Automati c Exchange of
an already issued PAN. Seeding of
Inf ormation (AEOI), Country-by-
Aadhaar number is made mandatory by
Country Reporting (CbCR) and
provisions of section 139AA of the Income
Suspici ous Transaction Reports
Tax Act except for the categories of person
(STRs).
as provided by Gazette notification no. S.O.
1513(E) dated 11-05-2017. Till 30.11.2022 iv. Compliance Management Central
a total of 48,99,03,322 PANs of individuals Pro cessi ng Centre (CMCPC)
have been seeded with Aadhaar data base, leverages campaign management
which is approximately 76.57% of total PAN approach (consisting of emails, SMS,
allotted to individuals. Seeding of Aadhaar reminders, outbound calls, letters) to
in remaining PANs is presently going on. support voluntary compliance and
resolution of compliance issues. A
g) Project Insig ht: An integrated data
dedicated compliance portal (https://
warehousing and business intelligence
compliance.insight.gov.in) displays
platform has been operationalised to enable
information to the taxpayer and capture
ITD in meeting the three goals namely (i) to
response on compliance issues in a
promote voluntary compliance and deter
structured manner f or eff ect iv e
noncompliance; (ii) to impart confidence that
compliance monitoring and evaluation.
all eligible persons pay appropriate tax; and
(iii) to promote fair and judicious tax a. e-campaign for non-filers for AY
administration. The key components of 2020-21 was executed. As a
Insight System are: result, 4.32 Lakh identified non-
filers filed their return and self-
i. A State-of-the-Art Data warehouse
assessment tax of Rs. 3,850 crore
has been operationalized and regular
was paid by target segment after
reports/MIS are provided to CBDT and
campaign.
Government for pre-budget analysis,
impact assessment and pol icy b. e-campai gn f or signif icant
formulation. transactions (during FY 2020-21)
was implemented for 6,51,207
ii. A dedicated reporting portal (https://
taxpayers who had conducted
report .insight.gov.in) prov ides a
high value transactions in the
comprehensive interface between
current year and the quantum of
Reporting Entities (REs) and the ITD.
advance tax paid was lower than
The Reporting Portal enables
the expected amount. The
seamless data filing, data processing,
signif icant transactions were
data quality monitoring and report
shown to the taxpayer and a facility
rectification. Compliance Check for
was prov ided to prov ide
PAN u/s 206AB and 206CCA has also
confirmation and feedback (if the
been enabled at Reporting Portal for
information was incorrect). After
REs.
the campaign, 1,24,325 taxpayers
iii. Income Tax Transaction Analysis paid advance tax of Rs 13,874
Centre (I NTRAC) handles data Crore.
integration, data processing, data
c. E-campai gn f or hi gh v alue
quality monitoring, data warehousing,
transactions (including SFT, TDS/
184
TCS, GST, Exports, Imports, access control. The Profile View

foreign remittance, securities displays key insights, financial ratios
transactions etc.) vis-a-vis the and related information for effective
information filed in the ITR was analysis.
executed for 7,19,062 taxpayers
ix. I- Search has been enabled at insight
for A.Y. 2020-21. Underlying high
supporti ng the f uzzy search
value transactions were shown
functionalities wherein the ITD user can
to the taxpayer on the
search entity, address, bank account,
Compliance portal and online
Property, Non-PAN Transaction etc.
facility was provided to validate
when the Entity ID is not known to the
the information and provide
user. The user can search on the basis
feedback if the information was
of attributes such as name, address,
incorrect. After the campaign,
date of birth, father’s name, email,
more than 1,10,137 taxpayers
mobile number, passport number,
rev ised their ret urns and
Aadhaar number, vehicle no., bank
increased the income in revised
account number etc. Suspicious
return by 1,609 Crore.
Transaction Reports Inf ormation
v. Annual Information Statement was Search has also been enabled at
operationalised in October 2021. Insight.
Annual Information Statement (AIS)
x. Verification of Information in form of
is comprehensive view of information
Various Case Types hav e been
for a taxpayer displayed in Form
enabled at Insight for Taxpayers and
26AS. Taxpayer can provide feedback
Reporting Entities. The ITD Users are
on information displayed in AIS. Many
able to sought Inf ormation f rom
new inf ormat ion sources, not
Taxpayer through Issue of Various
available in the current Form 26AS,
Notices (e.g. 133 (6), 131(1A) and view
hav e been added in AIS. The
the Response submitted by Taxpayer
objective of AIS is to display complete
before Verifying Information.
and accurate information to the
taxpayer, enable taxpayer to provide xi. Bulk Data Uploading – Utilities like
feedback on information and to Case Related Information Upload
enable seamless pre-filling of return. Utility and Verification Report Upload
Utility have been provided for ITD
vi. Business Intelligence Dashboard
Users to upload Information in bulk
consisti ng of 200+ int eract iv e
w.r.t. a PAN and the corresponding view
Business Intelligence (BI) reports has
of the Information has been enabled
been implement ed to prov ide
under the Prof ile Views of the
actionable information to ITD users
Respective PANs and to the Person
with drill down. The BI reports have
uploading the Information packet.
been classified under various themes
such as Tax Collection, Tax Base, ITR xii. Insight Knowledge Hub, an
Information, Business Information, integrated platform consisting of i-Wiki,
Exemption, Taxpayer Compliance, i-Library, i-Forum and i-Query, has
TDS Information, TDS Compliance, been rol led out to assist ITD in
International Transactions, Third “Organizing creating, sharing, using
Party Information etc. and managing organisation knowledge
for getting the right knowledge to the
vii. GIS (Geographical Information
right person at the right time”.
System) Dashboard consisting of
more than 100 interactive GIS reports xiii. Insight Learning Hub, an integrated
have been implemented to provide platf orm consisting of learning
high-level geographical view to senior management system, online courses,
management for effective monitoring. competency tests and training material
repository has been rolled out to
viii. Profile View under Insight Portal
supports capacity building of ITD
provides comprehensive multi-year
employees by “delivery and tracking of
profile of taxpayer and other entities
customized learni ng content to
with secure role based information
185
employees using competency-based statements, Intelligence and Criminal

training approach”. 15 online courses Investigation (I&CI) data etc. to identify such
hav e also been rolled out f or persons/entities who have undertaken high
customised training and capacity value financial transactions but have not filed
building of assessing officer. their returns. During the year around 19 lakh
non-filers with potential tax liabilities were
In implementation of faceless schemes Insight identif ied. The i nf ormation about
System is being leveraged for automated allocation of transactions is made available on the online
cases, verification, risk assessment of draft orders, bulk portal and email and SMS is sent to the non-
signing etc. filer to provide online response and submit
return. Many non-filers file their return and
Proposal for Insight Enhancement (insight+) was pay appropriate taxes. The details of high
approved after considering the new requirements risk non-filers are pushed to the field
emerging from changes in legal framework and operating formation for further action. Further, in view
environment. The scope of Insight enhancement consists of the challenges posed by Covid-19,
of following components: transformational changes introduced in the
i. Comprehensive API based integration with department and recent am endments
introduced vis-a-vis reassessment in the Act,
internal (CPC 2.0, ITBA) and external (Reporting
Multiyear NMS cycle was executed to
entities, Exchange Partners) systems.
rationalise the work load on field formations
ii. Implementation of Intelligent Decision Support w.r.t. already existing NMS Cycle 3 to Cycle
System to meet the requirements of Centralised 9 cases.
e-Verification Scheme. j) Payment of Taxes: The Online Tax
iii. Implementation of Annual Information Statement Accounting System (OLTAS) facilitates near
(AIS). real tim e reporting, m onitoring and
reconciliation of tax payments made by
iv. Aadhaar based login on Compliance, Reporting taxpayers through banks. E-payment of
and Data Exchange Portal. taxes has been enabled through Net
Banking and ATMs and nearly 89% of tax is
v. Mobile app for basic Insight functionalities. collected through this mode facilitating
h) Computer Assisted Scrutiny Selection payment of taxes anytime from home/office
(CASS): ITD has been implementing without having to go to a bank branch.
Computer Assisted Scrutiny Selection Companies and auditable cases (taxpayers
where provisions of section 44AB of the Act
(CASS) for selecting cases for scrutiny
are applicable) are mandatorily required to
(audit). The suggestions received from field
electronically pay taxes. Financial year wise
formations and the outcome in cases
percentage of e-payments is as below:
selected in prior years are reviewed by a
cross f unctional committee (including Financial % in terms of % in terms of total
Year total number amount associated
representati v es f rom assessment, of e-challans with e-challans
investigation, intelligence, international
taxation, transfer pricing, risk assessment, 2019-20 84.36 90.95
systems) to refine the scenarios and 2020-21 86.39 91.27
parameters. New scenarios are also
introduced on the basis of analysis of 2021-22 88.16 91.20
information sources and environmental 2022-23 (Till
scanning. New approaches such as 90.23 92.47
19th Dec, 2022)
Themati c risk assessm ent etc were
introduced to further refine selection basket New Payment solution (TIN 2.0) has been rolled
under few scenarios. out under IEC 2.0 project. As on 15.12.2022, 12 public
i) Non- Filers Monitoring System (NMS): and private agency banks have been on boarded on TIN
The ITD has implemented the Non- Filers 2.0 portal to receive tax payments. Remaining authorised
Monitoring System (NMS) which assimilates banks are expected to be on-boarded by end of FY 2022-
and analysis in-house information as well as 23. The benefits of new payment solution are as under:
transactional data received from third- • Enable tax payment through NEFT/ RTGS
parties, including Statements of Financial mode
Transaction (SFT), Tax Deduction at Source
• Payment Gateway mode enabled for tax
(TDS) and Tax Collection at Source (TCS)
collection
186
• Real time credit of tax payment and MIS has been a steady increase in number and percentage
of refunds issued through the scheme. During current
• 100% reconciliation of challan data and
funds Financial Year, the percentage of refunds issued through
the scheme is 99.99 % of the total number of refunds
• Online mechanism for challan correction issued all over India as under:
k) Refund Banker: The Refund Banker project During FY 2022-23, in upcoming project TIN 2.0,
has enabled system driven process for real time integration (API based) between CPC 2.0 and
determination, generation, issue, dispatch refund banker has been envisaged to be implemented to
and credit of refunds. This project has made ensure direct credit of refund on the same day.
the process of delivery of refund completely
l) New e-fi ling Portal : As part of our
automated, speedy and transparent. Under commitment to provide improved taxpayer
the Refund Banker Scheme, paper and services, the new Income Tax Portal
electronic refunds determined by the Income www.incometax.gov.in was launched for
Tax Assessing Officers are sent in electronic better e- filing experience and faster
files by ITD to the State Bank of India (SBI), processing of ITRs. New facilities in the form
which has been designated as the Refund of wizard based questionnaires and prefilled
Banker agent of the Department. The Refund returns are being provided as help to the
Banker sends ECS or Direct Credits to the assessees. Constant monitoring f or
bank accounts, where the refunds have been improvement of the present digital platforms
processed for electronic payment. is being done. Department has identified the
issues being faced by different stakeholders
A web based status tracking f acility in and the Department has taken corrective
collaboration with India Post and Protean eGov measures through the service provider
Technologies Limited (NSDL) is available under the based on feedback from taxpayers and tax
Scheme. Call centre facility with toll free number 1800- professionals.
42-59-760 is also available for tracking status of refunds
issued through the scheme. a. Faster and accurate outcomes for taxpayer
The Assessing Officer’s role in issuing refunds b. First time right approach
is limited to processing the return of income on computer. c. Enhancing user experience at all stages
The status of refunds is updated on the departmental
d. Improv i ng taxpayer awareness and
application with reasons for non- payment in case of
education through continuous engagement
unpaid or returned refunds, to enable the assessing
officers to re-send the refund for payment after removing e. Promoting voluntary tax compliance
the deficiency. Audit trail and MIS on unpaid/unpicked
f. Managing outstanding demand
refunds (with ageing) are available on departmental
system for monitoring status of issue of refunds. There The new income tax e-f iling portal
www.incometax.gov.in was launched as part of the
Financial No. of No. of Total no of Percentage Integrated E-filing and Centralized Processing Centre 2.0
Year Refunds Other refunds of Refunds Project.
(Paid) Refunds paid Paid
through (Paid) through
m) Income Tax Business Application (ITBA):
Refund Refund
The Income Tax Business Application (ITBA)
Banker Banker
has been in action for over 4 years. ITBA is
used as a platform for delivery of taxpayer
2018-19 2,81,90,436 2,493 2,81,92,929 99.99 services such as Grievance Redressal
through E-Nivaran portal, passing of orders
2019-20 2,88,47,480 456 2,88,47,936 99.99 relating to issuance of refunds etc, which
are carried out by the officers of the
2020-21 2,53,42,641 205 2,53,42,846 99.99 Department. It has been designed and
implemented with the aim of being abreast
2021-22 2,74,45,790 167 2,74,45,857 99.99
with technological changes; re-engineering
2022-23
the busi ness process within the tax
(Reported
adm inistrati on and em powering the
th
till 19
employees to deli v er outcomes in a
Dec. 2022) 3,25,27,138 225 2,84,33,363 99.99
consistent, efficient and taxpayer friendly
manner. ITBA’s main objective is to bring all
187
internal business processes on a digital ii) Integrated Communication Management:

platform so that officers and staff can Based on the learnings of e-filing and CPC
increase their eff i ciency by bringing Projects, this integrated communication
information and work at a single place for management system and processes have
decision making. Apart f rom being been implemented in IEC 2.0. The taxpayer
accessible over ITD’s private network, ITBA interaction with the Department is better
is also accessible over the internet using handled when all the m odes of
VPN to cater to the challenging times like communication through the communication
COVID-19 and to remove hindrances in happens are integrated, as it is convenient
timely delivery of taxpayer service. for both taxpayer and the Department to
know the concerns raised across all tracks
One of the key achievements of ITBA has been
and provide a faster and comprehensive
the enablement of Faceless Assessments/Appeals/
resolution in totality. All the interactions no
Penalty. In August 2020, the Government of India
matter whether by call, grievance, email,
launched the ambitious Faceless regime under the
social media are tracked in a single place
taxpayer friendly goal of “Transparent Taxation -
and all communication to and from taxpayer
Honouring the Honest”. In Faceless, certain legal
are managed in this system.
proceedings under direct tax laws are conducted by
leveraging information technology. Hence, the faceless iii) Capacity Bui ldin g an d e-L earn ing
regime aims to impart greater efficiency, transparency, Module: A learning management system
and accountability in the income tax proceedings by and e-Learn programs covering Income Tax
eliminating in-person interaction between the taxpayer Act, Rules, Processes of E-filing and
and the tax officer. ITBA is the platform for use by the tax Centralised Processing Center as well as
officers, for implementing the Faceless regime. ITBA system are developed and used for
training of the resources of MSP, Assessing
Over 2.10 lakh assessment orders, 3.8 lakh
Officers and Officers working in IEC 2.0.
penalty orders, and 1.4 lakh appellate orders have been
New topics are created to cover the new
passed in a faceless manner on the ITBA portal since
initiatives of the Department like Crypto-
the launch of the respective faceless regimes.
currency taxation, etc., are added to courses
n) Integrated E-fili ng & Centrali zed and these programs are conducted via
Processing Centre (IEC 2.0) webinar and webex sessions. This is
systemic learning methodology for ITD
i) Integrated e-Filing and CPC (IEC 2.0) was officials and tax payers through electronic
launched to operations in two phases. First mode. The e-learns for tax payers shall be
phase by enabling processing and accounting enabled on the envisaged e-Filing 2.0, CPC
of ITRs from AY 2020-21 as CPC 2.0 from web portal and on YouTube channels. There
25th November 2020, wherein more than are thirty-seven Youtube videos are available
20.76 crore ITRs have been processed till for the taxpayers. There are two Awareness
November 2022. Second phase by launching Videos. There are five brochures. The Help
the e-filing Portal https://incometax.gov.in on Section of the portal under ‘Learn with us’
7th June 2021, wherein more than 14.29 Crore provides FAQ and other help documents for
ITRs have been filed and 2.60 crore Forms the benefit of the taxpayers. There is planned
are filed till November 2022. The integrated training calendar for delivering the trainings.
e-filing and CPC IEC 2.0 has started
delivering a world class experience to the iv) Taxpayer Outreach Program: Campaigns
taxpayers similar to that they are experiencing of the Department are now carried out in the
in the online world in sync with world -wide digital mode on social media and other
trends. A completely re-designed e-Filing online platform using the campaign content
portal has been launched with modern day created keeping the target audience in view.
technology, which has: The campaign brochures, news items,
educative material, release of new forms,
a) user friendly designs, release of ITR utility, etc. are run on digital
b) wizard based easy to use forms and ITR, platforms including social media on a
continuous basis. The campaign will focus
c) user journey mapping to enhance on thematic requirements of the department
experience, such as requirements for e-filing of return,
d) all forms in online mode to provide ease frequently asked questions, common errors,
to tax payers. outstanding tax demand, rectification etc.
188
This outreach has helped to improve the group and e-mails. The conducting of
accuracy of the return and assist taxpayers examination through online mode has
in the f iling, processi ng and create reduced the paper work and manpower
awareness about the initiatives taken by requirements substantially.
CPC 2.0. More than 100 Crore SMS and 200
Crore email campaigns have been carried b. ITD has adopted the File Management System
by IEC 2.0 using the creatives created by (e-File) on the e-Office application of NIC. It is
the Taxpayer Outreach facilitation team.350 operational from 27.04.2022. In its first phase,
different email campaigns were carried out. 5000 nodes on e-Office platform of NIC has
182 Campaigns were sent in FY 2022-23 till been procured in the Directorate of HRD. A
October 2022. 151 different SMS campaign total 3147 nodes have already been allocated
were carried out. 64 diff erent SMS during the first phase (i.e. till November 2022)
campaigns were sent in FY 2022-23 till covering the administrative hierarchy of the
October 2022. Samvad Sessions were ITD across India.
carried out to inform the public at large about c. 5000 additional nodes (for e-Office from
all the services provided by IEC 2.0, these NIC) are being procured so as to enable pan-
sessions on Youtube have received more India coverage of e-Office to all the Officers
than 10 lakh views. till the level of ITO. First, the expansion will
v) MIS Portal for internal users: MIS Reports cover officers in Delhi and Mumbai regions
are emailed to Officers of the Department and gradually be extended to other regions
associated with IEC 2.0 daily, covering the across India.
key parameters of services like number of
d. ITD has shifted to SPARROW portal for APAR
ITRs and Forms filed daily and cumulatively,
filing of Group A and Group B officers.
number of e-PAN allotted, Aadhar PAN
Continuous efforts are being made, like online
linked, Bank Account PAN linked,
sessions, communications through WhatsApp
Rectification f iled, Updated ITR f iled,
groups, e-mails, in-person training, so as to
Num ber of logins, number of DSC
help the officers w.r.t. navigation on the
registered, New Users Registered, etc.
SPARROW portal and to address their
Apart from the reports that are emailed, MIS grievances promptly. For the reporting year
portal has other reports which are updated 2021-22, 97% of APAR filing has been
as per the defined frequency for the internal accomplished on SPARROW portal.
users of the Project.
e. UDAAN: The IRS Mentoring Programme
vi) Accreditation of employers, deductors, Scheme had commenced on 1st October,
banks CAs etc.: Accreditation program with 2021. The Mentoring Programme, for 73rd
employers, deductors, banks, CAs, ERI and batch of IRS officer, showed positive
TRPs etc. will enable the department to response. Interim report, sought from all the
obtain information about taxpayers relating Pr. CCITS (CCA), showed satisfactory
to salary, interest, income from house progress in the respectiv e regions.
property, deductions etc. throughout the year Subsequently, the Mentoring Programme
in an accurate manner which will enable was initiated for the 74th batch of IRS officers.
CPC 2.0 to accurately pre-fill the return and Process of assigning mentors in every region
take up these returns for faster processing. was completed as per the SOP issued for
8.1.3 New Initiative in respect of Human Resources 74th batch of IRS officers. Through this
Development (HRD) programme, the young officers would be
exposed to the right values and ethics at the
a. For the very first time, the Departmental nascent stage of their careers. Development
Examinations, 2022 were conducted in of a mentoring culture through a pool of
Online Mode for ITOS and ITIS from 7th trained and committed mentors has been a
November, 2022 to 15th November, 2022 key priority area for the Directorate of HRD.
except for ITO, Paper-4 being a subjective
paper. Every possible precaution was taken 8.2 Central Board of Indirect Taxes & Customs
for fair & smooth conduct of Departmental (CBIC)
Examination 2022 f or ITOS & IT Is. The initiatives/projects of DG Systems are aimed
Instructions were issued, as and when at supporting e-Governance initiatives through the use
required, to all the In-charge of Examination, of technology and promoting trade implemented
from time to time via phone calls, WhatsApp
189
facilitation. The following modules/functionalities were etc.) The workflow and approval process for
implemented the fiscal year 2022--23: messages by an officer is similar to that of
stuffing report. Stuffing cancellation requests
i. Faceless Assessment with Anonymized
are available for approval under the “Exam
Escalation Mechanism (AEM):
Superintendent” role.
As required by Board Circular No. 14/2021
dat ed July 7th, 2021 on f acel ess iv. New CLK role options for temporary
assessment measures f or expediting refund scroll
customs clearance, an Anonymi zed To streamline & to reduce the time taken by
Escalation Mechanism (AEM) has been the system to generate temporary refund
implemented, through which an importer or scrolls, new options have been added under
customs broker (CB) can raise a grievance the CLK role in ICES for only those shipping
in the event of a delay in the assessment of bills that satisfy all conditions required for
a Bill of Entry, for escalation to the concerned scrolling in the final IGST scroll, DBK scroll,
Faceless Assessment Group (FAG) while and above IGST scroll for manual SBs,
maintaining the officer’s anonymity and the respectively. The existing options f or
location where the B/E is pending for generating temporary scroll types remain
assessment. For monitoring and follow-up, unchanged. Off icers can generate a
the tickets are routed to Customs officers in temporary scroll from an existing option to
supervising role (VDN role at FAG in and ascertain the reason for the non-scrolling of
ADN role at local ports) in ICES. This trade various SBs in the final scroll through the
facilitation measures are expected to indicated legends/symbols in the temp scroll.
enhance accountability & transparency in
faceless assessment. v. IGCR Implementation in SEZ Clearances
for DTA Supplies
ii. System changes pertaining to AD Code
Registration in Exports A mechanism has been implemented for
SEZ clearances for DTA supplies. The
To facilitate trade, as required by Board provision of IGCR bond debit by officer in
Circular No. Circular No.32/2020-Customs ICES has been enabled for SEZ bill of entry
dated July 6, 2020. ICES has made changes as such SEZ BEs were on another systems
to the AD code, (authorized dealer of foreign of Department of Commerce. In IGCR
exchange) whereby the AD code and module, BG% modification was done. This
associated bank account will now be is a step towards enhance of ease of doing
required to be registered in the System at business easier.
only one port, and the AD code will then be
available at all customs locations. Any new vi. Onl ine EODC (Expo rt Ob ligation
AD code registration (or update) at any port Discharge Certificate) viewing in ICES
must be registered via an online request at A new functionality under “EODC View”
ICEGATE. The option in ICES for local ports under the LIC role has been introduced in
to add/modify the AD code and account ICES for Customs officers to view online
against an IEC has been disabled. As is Export Obligation Discharge Certificate (i.e.
customary, the request would be approved EODC) for two export promotion schemes
by the officer assigned to the relevant role namely Advance Authorization (AA) and
(CLK) at that specific port. Once an AD code Export Promotion Capital Goods (EPCG).
has been registered against an IEC at one The same can be used for bond monitoring,
port, it can be used at all ports. This is bond closure, or bond recovery action, thus
intended to be a trade facilitation measure. enabling bett er monitoring of these
iii. Und er th e new SCMT R, Stuffing schemes.
Cancellation (SFCN) is enabled. vii. Incorporation of Notification No. 16/2011
A Stuffing Cancellation (SFCN) message - Customs (N.T.) into the IGCR System
was introduced to allow custodians to cancel The abov e not if ication has been
an incorrect stuffing report, such as one implemented in the system as per the
caused by an error in the integration of procedure decided by the Board. While filling
message stuffing files due to changes in out the bill of entry, a new scheme code is
attributes (such as pkg range, qty, seal no, to be used f or the af orementioned
190
notification. The IGCR bond (EI bond) will system. After processing BE data, RMS will
be debited in the system for the assessable generate an examination order for each
value at the item level instead of global level. selected BE based on potential risks,
according to the new procedure. An RMS
viii. Changes to the Customs Tariff enacted
generated examination order would include
by Finance Act 2022, effective May 1, 2022:
the following main points:
Changes has been incorporated in EDI
(i) the percentage of containers to be
Systems timely.
examined,
ix. Integration of India UAE CEPA into
(ii) the percentage of goods in the selected
System:
area/part (s) to be examined,
The India-UAE CEPA has been activated in
(iii) item level instructions, and (iv) any
the system timely. This included creating a additional examination instructions.
new document code for e-Sanchit for BE
filing, checks for mandatory defacement xiii. Incorporating condition 3(ii) of CBIC
prior to OOC, an Agreement Country code Notification No. 07/2020-Customs (N.T.)
for declaring the shipping bill for exports to dated 28.01.2022 for allowing check only
the UAE, etc apart from introduction of a new up to 2 digits for chapters 84,85,87 as per
license type namely tariff rate quota (TRQ). communication received from Drawback
wing.
x. Enabling the rail export of goods from
Bangladesh to India in closed containers: Necessary v al idati ons hav e been
incorporated in the System.
With reference to Board Circular No. 08/
2022 dated May 17th, 2022 systems xiv. Rounding off of Duties:
changes were implemented for return of The rounding off various duties collected in
containers from Bangladesh to India to now Customs at minor head level has been
be used to transport export goods from implemented in System in accordance with
Bangladesh to India, this will apply to closed Board instructions/clarification and the
containers transported by Indian Railways requirement of Electronic Cash Ledger.
on trains operated by Container Corporation
xv. Conversion from non-EDI to EDI:
of India (CONCOR). Changes have been
made to the ICES application to allow for Launch of New EDI Sites in ICES - In this
the submission of import reports for such fiscal year, seven (07) customs locations
containers at LCS as well as the submission have been migrated from the non-EDI
of bills of entry and clearance at ICDs. platform to the EDI platform.
xi. Faceless Enhancements Improvements: xvi. Creation of Data Links:
A number of changes have been made to A data base link (DB link) has been created
enhance trade facilitation and for better in ICES for the Bengaluru Zonal Unit’s FPO
monitoring. When BE was being amended, module to access ICES directories, which
a number of issues arose. Similarly, there will aid in the launch of the FPO module.
were issues with suspended BEs. These and xvii.Enabling MIS reports via the Dashboard:
other similar issues were resolved, thereby
improving the faceless system for officers. For senior officers with COM/CCOM/NMIS,
Problems in BEs where amendment was various reports related to FAG queries under
applied for or where BE was suspended Faceless Assessment, Document pendency
were identified and resolved. report in imports and exports, Drawback
age-wise pendency report, AAKLAN report,
xii. Turant Customs - Orders for and so on have been enabled in ICES for
Standardized Examination. better monitoring.
With reference to Board Circular No. 16/ xviii.Systemic streamlining of RoDTEP and
2022 dated August 29th, 2022, whereby the RoSCTL processing and scrolling:
Board had decided to implement system-
Various changes have been implemented on
generated standard examination orders to
the system over time to streamline the
harmonize examination orders across processing and scrolling out of benefits for
FAGs, changes were implemented on the RoDTEP and RoSCTL claims such as
191
increasing the limit of SBs in a scroll to be registered at any port and used
25,000, handling RMS facilitated cases, subsequently at any port when filing a
handling LCS shipping bills, etc. Transshipment Permit (TP) from Air to Air
xix. System customizati on of alerts/ and Air to ICD.
suspension module for exports: Changes
In addition to the foregoing, the following projections are
made in System
made for the remaining period until March:
In the erstwhile alert module, alerts could only
be set against an IEC and not a GSTIN. As a i. Conversion of non-EDI customs
result, IGST refunds for all GSTINs associated locations to EDI:
with that IEC were halted, as were all
Efforts to convert non-EDI customs
incentives such as Drawback, IGST, RoDTEP,
and RoSCTL associated with SBs pertaining locations to EDI are ongoing. This fiscal
to that IEC at that port. The alert module was year, additionally f iv e non-EDI
revamped. Now alert can be separately for locations, Nagarkata LCS, Kulkuli LCS,
IGST benefit and Customs benefits. Manu LCS, Guwhati Steamer Ghat and
Dubhri Steam er G haat will be
A new role for DGARM officers is created in
the modified alert module for imposing an converted to EDI.
all-India suspension for IGST refunds. In this ii. SEZ Integration:
role, DGARM officers have the option of
placing either an IEC or a GSTIN alert, which Following Board approval, testing for the
would result in the suspension of IGST first phase of SEZ (FTA to SEZ and vice
refunds at all Customs EDI ports. This v ersa) has begun at pilot sites.
eliminates the need for individual EDI sites Communication has been sent to the
to insert a suspension in respect of IEC for Board for approval for the second phase
such DGARM alerts. Furthermore, the
of the SEZ (SEZ to DTA and back).
DGARM officers have the option to revoke
the alert. 8.3 Directorate of Enforcement
There are three options available: ED has made a number of efforts to digitize its
(i) To suspend only IGST refunds (G), functions for ML risk profiling and streamlining the ML /
officers can place an alert against a TF investigations with the use of AI, computerization, etc,
GSTIN. It would stop IGST refunds for the same are summarized as below:
shipping bills submitted under that
GSTIN. i) Project of Computerization of the processes
of ED:This project has been initiated to
(ii) To suspend only Customs Benefits (I): computerize all the processes of the ED including
Officers can issue an alert suspending
identif ication of ML cases on risk based
Customs Calculated Benefits (i.e.
Drawback, RoSCTL and RoDTEP). mechanism, handling all matters of investigation
This type of alert can only be placed in the system, having interface with other external
against an IEC, and not a GSTIN. agencies for smooth and expeditious exchange
of information, etc. Important features of this
(iii) To suspend both the IGST refund and
project which will assist in digital transformation
the Customs Calculated benefit (B),
officers can issue an alert suspending of ED are as under:-
all benefits (i.e. IGST, Drawback, a) The ED will get a customized software
RoDTEP and RoSCTL). This type of [termed as Core ED Operations System
alert can only be placed against an IEC,
(CEDOS)] developed for use of its officers
not a GSTIN. Shipping bill level alert
can also be placed. and all the file work will be replaced by
system based functioning in all areas of work
xx. Air Transportation Bond (TA) Bond: incl uding intell igence collection and
The All India National Air Transshipment processing, investigation, management of
Bond has been implemented in ICES, properties, human resource management,
whereby a National Bond (bond type TA) can etc.
192
b) The system will be able to integrate with This project will enable smooth and fast co-
various external agencies through API which ordination between ED and various domestic predicate
are following as – agencies and FIU& NATGRID. ED will have access to
databases of various domestic agencies which will enable
• FIU: The STRs from FIN-NET could be
ED to verify facts in real time which would have otherwise
accessed through the i nterf ace
taken weeks to months. The AI used in the project will
between the two applications
save time taken in various processes and would fasten
• CBI: Interface with CRIMES system of the pace of the ML investigation. The Detailed Project
CBI to ensure timely exchange of Report (DPR) was submitted to DoR, Ministry of Finance.
information. The recommendations of Delegated Investment Board
(DIB) were received from DoR. Request for Proposal
• NATGRID: Inf ormation could be (RFP) of Digitization Project has been sent to DoR for
extracted by NATGRID through which
their consideration and approval is awaited.
ED can get inputs.
ii) Risk Assessment Monitoring Committee: In
• GSTN: This will lead to allowing access consonance with FATF standards, the Directorate
to the financial information filed by a
of Enforcement has formulated a risk based
person in the GST returns which will
system for selection of cases for money
assist in intelligence collection and
laundering investigation which provides that
investigation.
certain categories of cases should be mandatorily
• CBDT: Information about the PAN inv estigated and certain cases shall be
number, bank accounts, filing income, investigated on the basis of risk involved.
26 AS, etc could be made available in
The access to CCTNS/ICJS database (which is
the system.
a repository of the FIRs registered by the LEAs)
• Int egrat ion with other relev ant has been given to all the offices of the Directorate.
government bodies application like e- All the potential cases of ML are identified online
courts, CCTNS, ICJS, etc. through logging into CCTNS/ICJS portal and the
cases which do not fall under the mandatory
c) The system shall create and maintain a
criteria are examined by a Risk Assessment
database of all the intelligence/inputs
Monitoring Committee (RAMC), which holds
received from LEAs, etc. and ongoing cases
meetings ev ery quarter through Vi deo
of ED so that a consolidated database may
Conference. The digitization project will further
be created including details of individuals,
lead to refinement in selection of cases based
Bank Accounts, Corporate Entities, Mobile
on risk profile.
Numbers, PAN / Aadhar Number / CIN # /
IEC Code etc. This will help in ensuring that iii) Analysis of call data records:ED intercepts
ED has a ready-made database to refer back calls of various persons during the course of
or to provide linkages as and when they investigation. However the same are voluminous
come in contact with ED during any new and various difficulties are faced in analyzing
investigation. them. To overcome the same, Directorate of
Enf orcement contacted BARC which has
d) An easy to access and responsive search
developed 2 software (one each for Hindi and
functionality shall be available to ED officers
to help them conduct search on individuals, English languages) to convert speech to text and
transactions, cases, supporting documents analyse these call data records automatically.
and underlying data. Every time the above Also, this project is being further extended to
parameters are entered in the system, the assimilate the major Indian regional languages.
database can provide all details related to it. For this, data (both audio and transcript) has been
obtained f rom Central Institute of Indian
e) The CEDOS solution shall also have Languages (CIIL), Mysuru and provided to BARC
adv anced analytics and capability of for developing similar software in Regional
performing advanced analysis on high languages too.
volume data received from various case
proceedings as well as received from iv) Summons modu le: T he Di rect orate of
external agencies. Enforcement has implemented an intranet
application for generating summon(s) [issued
f) The existing records shall also be scanned under the provisions of Section 50(2) of the
with OCR capability so that the details are PMLA, 2002]. This module has helped ED in
captured in the database. digitalizing the process of issuance of summon(s)
193
and bring transparency in the process. Further, Further, the officials of ED Cadre have filled their
it has also brought awareness among public to APARs f or F. Y. 2021-22 online through
ensure the credibility of summon(s) issued by this SPARROW Portal.
Directorate and prevent them from being conned/
f ooled by unknown persons through f ake 8.4 Narcotics Control
summons. As a result of implementation of this 8.4.1 Central Bureau of Narcotics
module, a racket which was using fake summons
of this Directoratefor extortion was busted in co- As regards, E-Governance activities, it is stated
ordination with Delhi Police and several accused that various instructions of the Government, on issue of
persons were arrested by the Delhi Police. e-governance, are noted for compliance and necessary
action. Use of CCTV’s Camera’s at Settlement and
v) Handling of digital evidences:ED seizes huge
Weighment centres was also successfully carried out.
number of digital evidences(e.g. hard disks,
Payment to cultivators made through e-payment from the
mobile phones), during search and seizure
crop year 2012-2013 continuously.
operations. Analysis of these evidences is
ext remely essenti al f or the purpose of Computers have been provided, almost, in each
investigation. But, it often consumes a lot of time section and have been inter-connected through Network.
(2 to 6 months) to get data retrieved from All urgent reports or replies to the references received
certifiedNational Cyber Labs. To overcome this from the Ministry are being forwarded to the Ministry of
issue, the Directorate signed a MoU with National Finance, New Delhi and other offices through e-mail, as
Forensic Sciences Univ ersity (NFSU), far as possible.
Gandhinagar to help ED to create its own cyber
lab with trainedstaff. Now, ED has 6 cyber labs The Central Bureau of Narcotics website has
ofits own wherein forensic analysis of these digital been updated and all the application forms for issue of
evidences is done by using specialized forensic export/import authorization f or export/import of
tools. Now ED is able to analyze digital evidences Psychotropic substances, Narcotics Drugs and Precursor
in 4-5 days of seizure operations following due chemicals can be downloaded from the CBN website:
procedures. Further, ED has entered into a MoA www.cbn.nic.in. The opium cultivation data from 1998-
with the National Forensic Sciences University 99 has also been uploaded on the CBN website:
(NFSU), Gandhinagarfor management of www.cbn.nic.in.
existing six (06) Cyber Labs of ED and
establishment of a new Cyber lab (i.e. 7th Cyber A work has been awarded t o a f irm f or
Lab of ED) at NFSU, Gandhinagar. The 7th Cyber development of software for complete online solution to
Lab of ED situated at NFSU, Gandhinagar, issues related to issuance of Import Certificates, Export
Gujarat will become functional during Financial Authorisations and No Object Certificates required for
Year 2022-23 itself. import/export of narcotic drugs, psychotropic substances
and precursor chemicals.
vi) Revamping of ED’s website: The Directorate
of Enforcement has revamped the ED’s website 8.4.2 Chief Controller of Factories
(i.e. https://enforcementdirectorate.gov.in), to The Organization of Chief Controller of Factories
make it more informative and user friendly. In has re-launched its own website which contains complete
addition, ED has also implemented a unique
information about the organization, its activities, contact
f eature on of f icial website f or v erif ying
details, etc. All tenders for procurement of material and
summon(s) issued by ED by scanning the QR
services are timely uploaded on the website f or
code printed on summon(s). Using this facility,
information and participation of the manufacturers /
the receiv er of summon(s) can verify the
suppliers. The organization has also arranged to display
authenticity of summon(s).
various information pertaining to production of drugs, sale
vii) Implementation of SPARROW in ED cadre for of drugs, etc. through internet. Placing of various other
APARs: The Directorate of Enforcement (ED) information for information of the concerned authorities
has impl ement ed SPARRO W f or all the have also been taken up and likely to be provided soon
employees of ED cadre so that their APARs can through internet. Placing of various other information of
be filed online through system by logging into the concerned authorities have also been taken up. The
SPARROW Portal, using their name based organization purchase goods & services through
off icial email ids. ED has impl emented Government e-market (GeM) and tendering through e-
SPARROW within a very short span of time (i.e. procurement portal. Implementation of Opium container
around 03 months) successfully and also created tracking application (OCTA) for smooth sampling and
name based email IDs of approx. 800 officials. testing of Opium.
194
9. Swachh Bharat Campaign to maintain overall cleanliness & proper ambience of the
office premises. Emphasis was also given on curbing
9.1 Revenue Headquarters: single use plastic (SUP) and discourage use of plastic in
Department of Revenue under “Azadi Ka Amrut the Department. All the activities relating to Swachhta
Mahotsav” has taken several steps as a part of Swachh were undertaken during Swachhta Action Plan 2022-23
Bharat Campaign initiated by Government of India under covering Revenue Headquarters as well as field offices
Swachhta Action Plan 2022-23. Various activities were of CBDT & CBIC.
undertaken by the Department, viz. Swachhata Pakhwada
Department of Revenue also celebrated “Azadi
campaign from 16th January, 2022 to 31st January, 2022
Ka Amrit Mahotsav” by undertaking various activities like
and Swachhta Campaign and Special Campaign for
arrangement of decorative plants in corridors of North
Disposal of Pending Matters (SCDPM), 2022 from 2nd
Block. Banners/Posters were also displayed in the office
October 2022 to 31st October 2022. Many activities were
premises. During the Mahotsav, Department has
undertaken and images were uploaded on the web portal
of the Ministry of Drinking Water and Sanitation. The disposed of e-waste and broken/ old wooden furniture
Department has been monitoring the implementation of items etc., amounting to Rs. 3.28 lakh during year 2022.
Swachhta Action Plan of all field formations of Central The Department also organized “COVID Vaccination
Board of Direct Taxes (CBDT) and Central Board of Amrit Mahotsav Camp” f or off icers and staff on
Indirect Taxes and Customs (CBIC). Feedback via video 25.08.2022 and 23.09.2022.
conferencing with Nodal Officers of CBDT & CBIC was 9.2 Central Board of Indirect Taxes &
undertaken during Swachhta Pakhwada. During 2022- Customs (CBIC):
23, to encourage cleanliness in the office complexes,
awareness drives for maintaining cleanliness with the 9.2.1 Directorate General of Human Resource
participation of the officers and employees were Development
undertaken in this Department in addition to routine An Information, Education and Communication
cleaning, sweeping/mopping of floors/ corridors of all the (IEC) training program regarding behavioural changes
rooms including staircases, toilets, open area etc.
towards use of plastic and paper and their waste was
Sufficient steps were taken to sanitize the rooms/ open
organized. A Swachhta campaign for creating awareness
areas etc. As a measure of prevention of spread of
among people regarding ban on single use plastic and
COVID, masks, sanitizers, soap and other safety-related
management of plastic waste was also organized.
products were distributed to officers/staff of the
Department on routine basis, as per the protocol issued 9.3 Directorate of Enforcement
by the Ministry of Home Affairs and Ministry of Health &
Swachh Bharat Abhiyan launched by the
Family Welfare, from time to time. Staff cars allocated to
Hon’ble Prime Minister on 2nd October, 2014 is being
senior officers were also sanitized regularly to prevent
vigorously f ollowed by ED. During the month of
spread of COVID-19.
October, 2022, a pledge ceremony was organized
Special Drive, for weeding out of old records/ across all offices of the Directorate where all the
files, disposal of waste material, disposal of officers and staff members took pledge to keep our
newspaper waste/ old & written off books, disposal nation ‘Swachh’. Further, various drives have been
of e-waste etc., was carried out in the Department. organized including installation of banners for creating
Weeding/ recording/ digitization / scanning of old records awareness among citizens and government officials
was carried out for optimization of office space. Disposal towards the cause of this “Abhiyan”. Regular inspection
of obsolete goods/ e-waste was also carried out regularly of the office premises is also being done.
195
Annexure - I
196
Representation of SCs/STs/OBCs
Organization: Central Board of Indirect Taxes amd Customs (CBIC)

Annexure - I
Organization: Central Board of Direct Taxes (CBDT)
(Source: Ad. VI, CBDT)

* Offer of Appointments were issued by CBDT to the candidates selected through Civil Services Examination (CSE) 2020. However, at present 27 Officers
Trainees (OTs) of CSE-2020 are undergoing training at NADT, Nagpur and 33 OTs of CSE-2020 are on EOL. Further, 9 OTs of CSE-2020 have tendered
Technical Resignation and 5 candidates have not joined the service. These numbers are not included in column 2 to 5 above.
** No appointments have been made during previous calendar year 2021 due to pending decision before various courts in the matter of all India inter-se-
seniority in the grade of ITO, which is a feeder grade for promotion to ACIT grade. However, in the calendar year 2020, total 201 ITOs (SC-55; ST-29) were
appointed in the grade of ACIT vide CBDT’s Office Order No. 259 of 2020 dated 16.12.2020 subject to Order dated 29.08.2018 of the Hon’ble Supreme
Court in SLP (c) No. 30621/2011.
197
Annexure - I
198
Organization: Revenue Head Quarter
Annexure - I
Organization: Financial Intelligence Unit (FIU-IND)
* FIU-IND is having a sanctioned strength of 42 Group ‘A’ Officers out of these 42 Group ‘A’ posts, 10 Group ‘A’ posts are encadered with NIC, against which
posting of the incumbents are made by NIC cadre itself. Out of the remaining 32 Group ‘A’ posts, 25 posts are filled as on 30.11.2022.
Note: The mode of appointment is deputation except for the post of 06 MTS (Group ‘C’)
199
Annexure - I
200
Organization: The Appellate Tribunal under SAFEMA
Annexure - I
Organization: Competent Authority for Forfeiture of illegally Acquired Property
201
Annexure - I
202
Organization: Customs, Excise & Service Tax Appellate Tribunal (CESTAT)
Annexure - I
Organization: Customs, Central Excise & Service Tax Settlement Commission
203
Annexure - I
204
Organization: Central Bureau of Narcotics
Organization: Chief Controller of Factories

Annexure - I
Organization: Directorate of Enforcement
205
Annexure - I
206
Organization: National Institute of Public Finance and Policy
Annexure - II
REPRESENTATION OF THE PERSONS WITH DISABILITIES
Organization: Central Board of Indirect Taxes and Customs (CBIC)
Note:
(i) VH stands for Visually Handicapped (persons suffering from blindness or low vision)
(ii) HH stands for Hearing Handicapped (persons suffering from hearing impairment)
(iii) OH stands for Orthopedically Handicapped (persons suffering from locomotors disability or cerebral palsy)
207
Annexure -II
208
Organization: Central Board of Direct Taxes (CBDT)
(Source: Ad. VI, CBDT)
* Offer of Appointments have been issued by CBDT to the candidates selected through Civil Services Examination 2020 during the calendar year 2022.
These 3 numbers are not included in column 2 to 5 above as the Officers are undergoing training in the training Institution, NADT, Nagpur.
Annexure -II
Organization: Revenue Head Quarter
209
Annexure - II
210
Organization: Financial Intelligence Unit (FIU-IND)
* FIU-IND is having a sanctioned strength of 42 Group ‘A’ Officers out of these 42 Group ‘A’ posts, 10 Group ‘A’ posts are encadered with NIC, against which
posting of the incumbents are made by NIC cadre itself. Out of the remaining 32 Group ‘A’ posts, 25 posts are filled as on 30.11.2022.
Annexure - II
Organization: The Appellate Tribunal under SAFEMA
211
Annexure -II
212
Organization: Competent Authority for Forfeiture of Illegally Acquired Property
Annexure -II
Organization: Customs, Excise & Service Tax Appellate Tribunal (CESTAT)
213
Annexure - II
214
Organization: Customs & Central Excise Settlement Commission
Annexure - II
215
Annexure -II
216
Organization: Directorate of Enforcement
Annexure -II
Organization: National Institute of Public Finance and Policy
217
Annexure - III
Summary of important observations included in Audit
Reports presented to Parliament during 2022
1. Central Board of Direct Taxes (CBDT)
S. Lok No. of Para/PA Details of the Para/PA reports on which ATNs are
No. Sabha reports on pending
which ATR have
been submitted
to PAC after
vetting by Audit
No. of ATR No. of ATR sent No. of ATR
not sent by but returned with which have
the Ministry observation and been finally
even for the Audit is awaiting vetted by the
first time their Audit but have
resubmission by not been
the Ministry submitted by
the Ministry to
the PAC
1 14 0 0 0 0
2 15 0 0 0 0
3 16 33 0 0 0
4 17 7 27 3 0
Total 40 27 3 0
2. Integrated Finance Unit (IFU)
Sl. Year Details of the Paras/PA reports on which ATNs

No. are pending
No. of paras/PA No. of ATNs No. of ATNs sent but No. of ATNs which
reports on which not sent by returned with have been finally
ATNs have been the Ministry observations and Audit vetted by Audit but
submitted to PAC even for the is awaiting their have not been
after vetting by first time resubmission by the submitted by the
Audit Ministry Ministry to the PAC
Nil Nil Nil Nil
218
Annexure - IV Department of Revenue III
219
Department of Investment and Public Asset Management IV
Chapter - IV
Department of Investment and Public Asset Management

I. FUNCTIONS for accelerating economic development and augmenting
As per the present Allocation of Business rules, the Government's resources for higher expenditure.
mandate of the Department is as follows: III. MISSION
1 (a) All matters relating to management of Central (i) List CPSEs on stock exchanges to promote people's
Gov ernm ent i nv estments in equi ty including ownership through public participation and improving
disinv estment of equity in Central Public Sector efficiencies of CPSEs through accountability to its
Undertakings. shareholders.
(b) All matters relating to sale of Central Government equity (ii) To bring in operational efficiencies in CPSEs through
through offer for sale or private placement or any other mode strategic di sinv estment, ensuring t heir greater
in the erstwhile Central Public Sector Undertakings contribution to the economy.
Note: All other post disinvestment matters, including (iii) Adopt a prof essional approach f or f inancial
those relating to and arising out of the exercise of Call management of CPSEs in the national interest and
option by the Strategic Partner in the erstwhile Central disinvestment aimed at expanding public participation in
Public Sector Undertakings, shall continue to be handled ownership of CPSEs.
by the administrative Ministry or Department concerned,
IV. ORGANISATIONAL STRUCTURE
where necessary, in consultation with the Department of
Investment and Public Asset Management (DIPAM). The Department of Investment and Public Asset
Management (DIPAM) is currently headed by Shri Tuhin
2. Decisions on the recommendations of Administrative
Kanta Pandey, Secretary. He is assisted by one Additional
Ministries, NITI Aayog, etc. for disinvestment including
Secretary, four Joint Secretaries, one Economic Adviser
strategic disinvestment.
and one Advisor (Cost). The Department functions on
3. All matters related to Independent External Monitor the Desk Officer pattern and the assigned work is handled
(s) for disinvestment and public asset management. at the levels of Joint Secretary, Director/Deputy Secretary
4. (a) Decisions in matters relating to Central Public and Under Secretary.
Sector Undertakings for purposes of Government The Organizational Structure of the Department is placed
investment in equity like capital restructuring, bonus, at Appendix -I.
dividends, disinvestment of government equity and other
V. CURRENT POLICY ON DISINVESTMENT IN
related issues.
CPSEs
(b) Advise the Government in matters of financial
The Government follows a policy of disinvestment
restructuring of the Central Public Sector Enterprises and
through the m inori ty stake sale and strategic
for attracting investment in the said Enterprises through
disinvestment of CPSEs.
capital market.
Strategic Disinvestment
5. The Unit Trust of India Act, 1963 (52 of 1963) along
with subjects relating to Specified Undertaking of the Unit Strategic Disinvestment implies sale of entire or
Trust of India (SUUTI). substantial Government shareholding of a CPSE along
with transfer of management control. The policy on
II. VISION
strategic disinvestment is based on the economic
(i) Promote people's ownership of Central Public Sector principle that Government should discontinue in sectors,
Enterprises (CPSEs) to share in their prosperity through where competitive markets have come of age and
disinvestment. economic potential of such entities may be better
(ii) Efficient management of public investment in CPSEs discovered in the hands of strategic investor due to
221
various factors such as infusion of capital, technological broad Strategic Sectors have been delineated based on
upgradation and efficient management practices. the criteria of national security, energy security, critical
Government policy on Strategic disinvestment of CPSEs infrastructure, provision of financial services and
availability of important minerals:
was implemented till 2004. However, thereafter, till 2014-
15, disinvestment in CPSE was carried out only through  Atomic Energy, Space and Defense;
limited minority stake sale. Since 2016, the Government  Transport and Telecommunication;
has substantially overhauled the approach towards
disinvestment in CPSEs. The policy for strategic  Power, Petroleum, Coal and other minerals; and
disinvestment was reviv ed. The Department was  Banking, Insurance and Financial Services.
renamed as Department of Investment and Public Asset
In Strategic sectors, bare minimum presence of the
Management (DIPAM) with effect from 14th April, 2016.
existing public sector commercial enterprises at Holding
A comprehensive guideline on "Capital Restructuring of
Company level will be retained under Government control.
CPSEs" was laid down in May, 2016 for efficient
The remaining enterprises in a strategic sector, will be
management of Government's investment in CPSEs in
considered for privatisation or merger /subsidiarization
areas such as, payment of dividend, buyback of shares,
with another PSE or for closure. PSEs in non-strategic
issues of bonus shares and splitting of share.
sectors shall be considered for privatisation, where
NITI Aayog was mandated to identify the CPSEs for feasible, otherwise such enterprises shall be considered
strategic disinvestment. Till February, 2021 NITI Aayog for closure.
identified CPSEs for strategic disinvestment based on
Approval of the Government for strategic disinvestment
the criteria of (i) National Security; (ii) Sovereign function
of a specific PSE shall be taken from time to time, on a
at arm's length, and (iii) Market Imperfections and Public
case-to-case basis. The timing for specific transactions
Purpose.
wil l howev er, be cont ingent, i nter alia, on the
The strategic disinvestment process was modified in 2019 considerations of appropriate sequencing, sectoral
to make the process result-oriented and expeditious. The trends, administrative feasibility, investors' interest, etc.
new process provides for an Inter-Ministerial Group (IMG)
New policy initiative
chaired by Secretary, DIPAM & Secretary of Administrative
Ministry to drive entire process, while minimizing The procedure for Strategic Disinvestment is modified
redundancy and multiplicity of approvals to prevent from time to time to make it more result oriented, and to
dilution of bidder's interest and performance of the tackle new challenges. Keeping this in view, the Cabinet
CPSEs. The overall process is also overseen by the delegated certain additional powers to the Alternative
Independent External Monitor (IEM) comprising eminent Mechanism during the year 2022-23. Similarly, the
persons. Cabi net on 18.05.2022 had gi v en approv al f or
empowering the Board of Directors of the Public Sector
Thrust on privatization: New PSE policy
Enterprises (PSEs) to recommend and undertake the
In order to realize the mission of New, Self-reliant India, transact ions f or Disinv estment (both strategic
there was a need to redefine public sector participation disinvestment and minority stake sale) or closure of any
in business enterprises and to encourage private sector of their subsidiaries or units or sale of stake in JVs. It
participation in all sectors. Against this backdrop, the New was also approved that based on proposal of Board of
Public Sector Enterprise ("PSE") Policy for Atmanirbhar CPSE and Administrative Ministry, DIPAM will obtain an "
Bharat was approved by Cabinet, on 27th January 2021 in-priniciple" approval of Alternative Mechanism.
and was notified on 4th February, 2021. The policy intends Thereafter, the Board of CPSEs can undertake the
to minimise the presence of Government in the PSEs process of disinvestment or closure of subsidiaries/units/
across all sectors of economy. JVs based on DIPAM or DPE guidelines.
Under New Public Sector Enterprise ("PSE") Policy public Guiding principles for strategic disinvestment/ Minority
sector commercial enterprises have been classified as Stake sale of subsidiaries/units/sale of stakes in JVs by
Strategic and Non-Strategic sectors. The following four the holding/parent PSE was issued by DIPAM on
222
14.09.2022. Guiding principles for closure of subsidiaries/ Achievements: Since 2014-15, 17 CPSEs (including
LICI) have been listed which yielded Rs 50,385.74 crore.
units by their Holding/Parent Public Sector Enterprises
During this period, 70.80 lakh retail investors invested
was issued by DPE on 31.10.2022. an amount of Rs. 15,813 crore in IPOs of CPSEs. An
Minority stake sale additional market capitalization of Rs 7.31 lakh crore
(Market-capitalization calculated based on listing price)
For some CPSEs, the government carries out minority was achieved through the new listings. At present, 54
stake sale without transfer of management control Holding CPSEs are listed (excluding public sector banks
and insurance Companies) with a total market cap of Rs
through various SEBI-approved methods, in order to
15.97 lakh crore as on 21.02.2023. The total M-cap of 16
unlock the value, promote public ownership, meet the public sector banks and insurance companies are Rs.
minimum public shareholding norms of SEBI and for 13.82 lakh Crore as on 21.02.2023.
ensuring higher degree of accountability. The modes of Listing of LIC
disinvestment commonly used for minority stake sale The LIC was successfully listed in stock exchanges on
include Initial Public Offer (IPO), Offer for Sale (OFS), 17.05.2022 and Government received proceeds of Rs.
Buyback of shares etc. These methods play important 20,516.12 crore. The issue received enthusiastic
response from the investors and policy-holders. The IPO
role in strengthening the capital market through (i)
of LIC has been instrumental in galvanizing investor
increasing the float of well performing CPSEs (ii) providing interest even when markets worldwide remained on the
opportunity to retail investors to participate in an extended edge due to rising geo-political tensions. Listing of LIC
range of stocks and bonds and (iii) increasing liquidity added about Rs 5.5 lakh crore to the Indian market. The
IPO, which is the biggest ever issue launched in India so
and depth of the markets.
far, saw around 73 lakhs investors applications from all
categories other than the Anchor Investors. This is the
VI. DISINVESTMENT PERFORMANCE highest number of bids in the history of Indian capital
market. The Issue has been oversubscribed (2.95 times)
The various modes of disinvestment are: in all categories including 6.11 times in the policyholder's
 Initial/Further Public Offer (IPO/FPO) category and 1.99 times in the retail category.
 Exchange Traded Fund Apart from creating investment opportunities for the
people, the LIC IPO, in view of sheer volume of applicants
 Offer for sale (OFS) and investors, also brought about a great deal of structural
 Buyback of shares and systemic improvement in the Indian markets through:
 Strategic Disinvestment  Process and system changes to enable multiple
Sponsor Banks at Stock Exchanges
A. Performance: Minority Stake Sale
 System readiness and capacity to achieve higher
i. Initial Public/Further Offer IPO/FPO Transaction per second in stock exchanges
Public Offer: When an issue / offer of shares or convertible (TPS)
securities is made to new investors for becoming part of  Addition of CPU & memory and dedicated
shareholders' family of the issuer, it is called a 'public multiple servers
issue'. Public issue can be further classified into Initial
 Depositories and Bank Clearance Process
public offer (IPO) and Further public offer (FPO). The
Calibrated for Large Volumes
significant features of each type of public issue are
illustrated below:  UPI Mechanism for Policyholder and Employee
Category
a) Initial public offer (IPO): When an unlisted company
makes either a fresh issue of shares or convertible  API based integration of depositories with stock
securities or offers its existing shares or convertible exchanges
securities for sale or both for the first time to the public, it  30 lakh emails were sent within one hour of the
is called an IPO. This paves way for listing and trading of share allocation process
the issuer's shares or convertible securities on the Stock  Creation of policy-holders category in all bidding
Exchanges. terminals.
b) Further public offer (FPO): When an already listed The IPO of LIC made the organization to adopt the state
company makes either a fresh issue of shares or of the art techniques for calculation of embedded value
convertible securities to the public or an offer for sale to as well as interacting regularly with the minority
the public, it is called a FPO. stakeholders to protect their interests.
223
ii. Buyback of shares Achievements : After listing, further disinvestment

by OFS mechanism yielded Rs 1,10,293 crore through
Buyback is the repurchase by a company of its shares
60 transactions in last eight years (As on 03.03.2023).
from the existing shareholders that reduces the number
This included the largest OFS of over Rs. 22,000 crore
of its shares in the open market.
in case of Coal India Limited in January, 2015.
Objectives: Companies buy back their shares for a
During the current financial year (As on 03.03.2023), OFS
number of reasons:
of ONGC, IRCTC and PPL have been concluded yielding
a) To increase the value of shares held by Rs.3058.78 crore, Rs.2724 crore and Rs.497.27 crore
promoters. respectively. Sale of shares of Axis Bank through SUUTI
has yield Rs.3838.99 crore in current FY. The CCEA on
b) To eliminate any threats by minority shareholders
25.05.2022 has approved DIPAM's proposal for stake sale
who may be looking for a controlling stake.
of Governments residual (29.54%) in Hindusthan Zinc
c) For CPSEs, buyback is a tool for Govt. of India Limited (HZL) through SEBI approved methods in the
to disinvest the equity held by GoI in CPSEs and open market.
to make proper utilization of idle cash left with
iii. Exchange Traded Fund
CPSEs.
Through various offers of CPSE-ETF and Bharat-22 ETF,
d) As per DIPAM guidelines dated 27.05.2016 the
Govt. could realize disinvestment proceeds of Rs.98,949
criteria for identifying potential buyback cases are
crore since 2016-17. However, there is now limited scope
as under:
of disinvestment through existing ETF window as many
 CPSE with net worth of Rs. 2,000 crore and underlying Stocks in CPSE-ETF and Bharat-22 ETF have
cash and bank balance of Rs. 1,000 crore reached close to 51% level of GOI equity or some stocks
should mandatorily go for buyback. in the ETF basket are no longer av ail able f or
 Other CPSEs may also go for buyback, based disinvestment due to strategic disinvestment or other
on the merits of each case. reasons. Also, there has been concern that large and
repeated tranches of Equity ETF were acting as a
Achievements : In order to make the use of idle cash disincentive for investors in PSU stocks due to price
lying with CPSEs and for improving the Earning per share, overhang. Therefore, Government has now decided to
Govt. has used buyback method effectively. During the pause employing Equity ETFs as a tool for minority stake
last eight years, disinvestment proceeds of Rs 45,104 sale.
crore (as on 03.03.2023) were realized from buyback of
shares by 45 CPSEs. During the current FY, buyback of B. Performance in Strategic Disinvestment
GAIL was carried out and Government realised Rs. The Government, since 2016, has given 'in-principle'
497.27 crore from the transaction. approval for strategic disinvestment of 36 cases of CPSEs
iii. Offer for Sale (OFS) and/or Subsidiaries/ Units/ Joint Ventures of CPSEs/
Bank. Out of the 36 cases, 33 cases are being handled
Offer for sale (OFS) is a simpler method of sale of shares by DIPAM and 3 cases are being handled by the
through the exchange platform for listed companies. The respective Administrative Ministry/Department. Out of the
mechanism was first introduced by SEBI in 2012, to make 33 cases bei ng handled by DIPAM, st rategic
it easier for promoters of publicly-traded companies to disinvestment transactions have been completed in 10
cut their holdings and comply with the minimum public cases; 5 CPSEs are under consideration for closure; 1
shareholding norms by June 2013. The method was case held up due to litigation,1 case is under Corportate
largely adopted by listed companies, both state-run and Insolvency Resolution process (CIRP) in NCLT 2 cases
private, to adhere to the SEBI norms of minimum public
are not feasible. Remaining 14 transactions are at various
shareholding. Government often used this route to divest
stages. The details are given at Annexure-I.
its shareholding in CPSEs.
Privatization of Air India: Privatization of Air India was
Salient features of OFS:
completed on 27.01.2022. M/s Talace Pvt Ltd, a wholly
 simple to execute owned subsidiary of M/s Tata Sons Pvt Ltd was the
 market-driven successful bidder with a bid of Rs 18000 crore which
includes Rs 2700 crore as cash consideration and Rs
 Govt. continues to retain management control 15,300 crore as debt component. Air India had received
 Cost-effective more than Rs.1 lakh crore Government support since
2009-10 and yet continued to be in huge losses. At the
 Time efficient (completed in 2 trading days) time of disinvestment, Air India was suffering loss of Rs.20
 Transparent allocation based on price-parity crore per day and had to be supported by the Government
basis. using taxpayers' money. Privatization of Air India will
224
improve performance and productivity of the airline and VII. OTHER INITIATIVES
help to rejuvenate the aviation sector of the country
(i) Launch of Bharat Bond ETF
Privatization of NINL Privatization of NINL was completed
on 4.07.2022. M/s Tata Steel Long Products Limited was Bharat Bond ETF comprising of AAA rated CPSEs, was
the successful bidder for 93.71% of shares of Neelachal launched in December 2019 which was the first
Ispat Nigam Ltd (Joint Venture partners of 4 CPSEs and instrument of its kind based on high-quality public-sector
2 Odisha Govt State PSEs) at the Enterprise Value of bonds. Tranche -I of Bharat Bond ETF launched in
Rs. 12,100 crore. The transaction sets the stage for large December, 2019 raised over Rs. 12,400 crore. Tranche-
scale investment in the steel sector in Odisha. : Before II of BHARAT Bond ETF was launched in July, 2020
strategic disinvestment, the company was running in huge raising over Rs. 11,000 crore Tranche III was launched
losses and plant was closed since 30.3.2020. The in December, 2021 raising over Rs. 6,200 Cr.
employees were not getting salaries.The closed blast
furnace has now been restarted within three months of The three tranches received huge response from all
privatization, reflecting turnaround in operations. sections of investors especially retail investors. Asset
C. Disinvestment Targets & achievements Under Management (AUM) for the Bond ETF market has
grown to around Rs 65,903 crore (as on 31.01.2023) out
The B.E for disinvestment proceeds for the year 2022- of which about 85% is accounted for Bharat Bond ETF
23 was f ixed at Rs.65, 000 crore. The RE f or (around Rs. 55,901 crore as on 31.01.2023). Provided
disinvestment proceeds for the year 2022-23 has been
opportunity to retail investors to access bonds with
kept at Rs. 50,000 crore. So far, Government has received
Rs. 31107 crore (as on 03.03.2023) from disinvestment smaller amount (as low as Rs 1,000) while helping CPSEs
of CPSEs through IPO, Offer for Sale and buyback of mobilize debt at reduced cost. Based on this model, many
shares etc. Bond-ETFs based on G-Sec, State Development Loans
Target (BE) No. of (SDLs) and Corporate Bonds have come to the market.
Target (RE) Actual
Year (In Rs. Transactions After the successful launch of three tranches with an AUM
(In Rs. crore) (In Rs. crore)
crore) of Rs. 50,000+ Cr., the fourth tranche BBETF - 2033 of
2014-15 43,425 26,353 24,349 8 BHARAT Bond ETF with 10+ years maturing in April 2033
2015-16 69,500 25,313 23,997 9 launched on 2nd December 2022 and ended on 8th
2016-17 56,500 45,500 46,247 21 December 2022. The April 2033 issue of BHARAT Bond
2017-18 72,500 1,00,000 1,00,057 36 ETF has been oversubscribed 2.8 times against the base
2018-19 80,000 80,000 84,972 28
issue size of Rs. 1,000 cr. The total Rs 2800 crore was
raised against the base issue size of Rs.1000 crore. 8
2019-20 1,05,000 65,000 50,300 15
CPSE namely PFCL, IRFC, REC, NABARD, HUDCO,
2020-21 2,10,000 32,000 32885 18
NTPC Limited, HPCL, and NPCIL are expected to
2021-22 1,75,000 78,000 13534 10
participate and issue bonds.
2022-23 65,000 50,000 31107* 9
(ii) Guidelines on Investment of Surplus Funds by
*as on 03.03.2023
CPSEs.
Disinvestment Receipts FY 2022-2023 (as on 03.03.2023)
DIPAM brought out the revised Guidelines on Investment
Method of Receipts of Surplus Funds by CPSEs on 5.12.2022 with the
S. No Name of CPSEs
Disinvestment (in Rs. Crore) approval of the Finance Minister after inter-Ministerial
1 ONGC OFS 3059 consultations.
3 LIC IPO 20516
4 PPL OFS 472 (iii) Asset Monetization (Non -core land of CPSEs)
5 GAIL BB 497 Government approved setting up set up a Special
6 NINL# SD 0.00
Purpose Vehicle named National Land Monetization
Others (Sale of Axis
Corporation (NLMC) as a wholly owned Government of
7 Bank Shares held by OTHERS 3839
SUUTI) India company with an initial authorized share capital of
Rs 5000 crore and paid-up share capital of Rs 150 crore.
8 IRCTC OFS 2724
NLMC will undertake monetization of surplus land and
Total Sum 31107 building assets of Central Public Sector Enterprises
# NINL was a Joint Venture company, in which 4 CPSEs namely (CPSEs) and other Government agencies.Going forward,
MMTC, NMDC, BHEL and MECON and 2 State PSUs of Odisha Department of Public Enterprises (DPE) has been
Government; namely IPICOL and OMC were share-holders. GOI holds
mandated to oversee Non-core land monetization of
CPSEs.
no equity in NINL.The highest bid of M/s Tata Steel Long Products
Limited for 93.71% of shares of Joint Venture partners of 4 CPSEs (iv) Monetization of Enemy Shares
and 2 Odisha Govt State PSEs at the Bid Enterprise Value of Rs. Cabinet in its meeting on 8th November, 2018 approved
12,100 cr. was accepted by the Government. the procedure and mechanism for disposal of Enemy
225
Shares, which is also being handled by DIPAM. As per successf ul and as a result, CPSE indices hav e
the enemy shares provided by CEPI MHA, more than significantly improved over the last year, beating the
99.6% shares have been sold. As on 19.01.2023, total matching the benchmark Sensex. The significant rise in
shares of value of Rs. 2709.11 crore have been sold and dividend payouts by CPSEs has also encouraged
the proceeds have come back to GoI. investors to invest in CPSE stocks.
VIII. CHALLENGES TO DISINVESTMENT X INITIATIVES UNDERTAKEN FOR PERSONS WITH
The first and second wave of COVID 19 had a serious DISABILI T IES, SCHEDULED CAST ES,
impact on disinvestment transactions in 2020 and 2021. SCHEDULED TRIBES AND OTHER BACKWARD
Several officers of the Department, other concerned CLASSES:
Departments in the Inter-ministerial Committees and The staff strength in the Department along with
Transaction and Legal Advisers and their family members representation of Scheduled Castes, Scheduled Tribes,
got infected. Coupled with pandemic induced uncertainty Persons with disabilities and Other Backward Classes is
in financial markets, geo-political tensions resulting from given in Appendix -II.
Ukraine conflict (since February 2022) adversely
impacted global supply chain with a cascading impact XI INI T IAT I VES RELAT ING T O GENDER
on various sectors like oil and gas, metals, agriculture BUDGETING AND EMPOWERMENT OF WOMEN
etc in various countries including India. This posed The nature of allocated work of the Department does not
significant challenges before the disinvestment efforts have any scope for gender budgeting and empowerment
of the government, both for minority stake sale and of women.
strategic disinvestment, as financial capacity and risk-
reward options of potential bidders turned worse. XII OFFICIAL LANGUAGE POLICY
Apart from the global challenges, strategic disinvestment The Department has a full-fledged Official Language Unit
transactions have to deal with matters such as resolving to implement the Official Language Policy. The website
land title, lease and land use issues with State Govt of the Department is bilingual.
authorities, disposal of non-core assets, excess XIII E-GOVERNANCE
manpower and labour unions, protection of process and
functionaries etc. Multiple Court cases filed by the As a part of good governance through the use of
employees' unions and other interest groups against information technology, the following initiatives have been
disinvestment policy of the government and also specific taken:
transactions also act as a hindrance. Any of these issues  Website of the Department (www.dipam.gov.in) is
may impact the transaction time-line. updated on a regular basis, in both English and Hindi.
Challenges to disinvestment through Minority Stake Sale The website is compliant with the Guidelines for
include reduced availability of government stake over Indian Government Websites (GIGW).
51% for large listed CPSEs; relatively muted perception  Maintenance of the Payroll Package
of investors in CPSE stocks as compared to private sector
peers; price overhang in the market due to high  Implementation of e-Office
disinvestment target and frequent use of ETF route for  Following web based monitoring systems are in
stake sale till 2019-20. place: Rajya Sabha Question, Answer Monitoring
IX. DIVIDEND RECEIPTS System and Lok Sabha Question, Answer Monitoring
System
Dividends from CPSEs form an important component of
non-tax receipts. Total dividend receipts from CPSEs in  Centrali zed Public Gri ev ance Redress and
FY 2021-22 stood at Rs 59,168 crore, which exceeds Monitoring System (CPGRAMS)
the Revised Estimate (RE) of Rs 46,000 crore, and is  Centralized Tender/Procurement Monitoring System.
more than actual dividend receipts (Rs 39,750 crore)
Tenders are regularly put on the website and e-
during the previous financial year. Total dividend receipts
Publishing in e-procurement portal is being done
this FY stands at Rs 49,282 crore (as on 03.03.2023).
regularly.
Consistent Dividend Policy was framed by DIPAM (in
 Representations of Reserved Categories in Posts
November 2020) for ensuring predictability in dividend
payment by companies. A predictable dividend regime and Services in Government of India (RRCPS)
would help revive investor interest and improve market Monitoring System (SC/ST Commission Portal).
sentiments for CPSE stocks as predictability in regular  APAR Monitoring system for IAS Officers (JS level &
dividend payment would attract quality investors to CPSE above), CSS/ CSSS Officers (All levels).
stocks and retain them in the hope of a future dividend.
Government will also get predictable and periodic  Cadre Management System (for CSS Officers).
dividends as interim dividend. This policy has been  Pension Portal
226
 Use of GeM portal XVII INITIATIVES FOR GOOD GOVERNANCE

 Quarterly Rolling Plan As per the mandate provided by the Government of India
 Data Portal (Data.gov.in). (Allocation of Business) Rules, 1961, the Department is
not involved in the delivery of any public services and
XIV REDRESSAL OF PUBLIC GRIEVANCES
thus, does not have any direct interface with the citizens
The Department is using the Centralized Public Grievance or public at large. However, the Department has initiated
Redress and Monitoring System (CPGRAMS). The the following measures as a part of good governance:
website of the Department also has an in built mechanism
for receiving grievances from public. A Joint Secretary Timelines have been prescribed f or disposal of
has been designated as Nodal Grievance Officer and transaction related bills to avoid delay and any scope of
Additional Secretary has been nominated as Nodal corruption as also to promote good governance. The
Appellate Authority for the purpose. following measures have also been implemented in the
Department for promoting good governance:
Internal Complain ts Co mmittee o n Sexual
harassment of women employees (a) Special Campaign 2.0 : The Special campaign 2.0
was undertaken with full enthusiasm focusing on disposal
In compliance with Supreme Court's Judgement dated
of pending references in the identified categories,
13th August, 1997 in Visakha case relating to prevention
reviewing/ weeding out of files, disposing of old unusable
of sexual harassment of women at work place, an internal
articles and digitization of records. During the Campaign
complaints committee has been put in place f or
considering complaints of sexual harassment of women the progress was regularly uploaded on the 'SCDPM'
employees in Department of Investment and Public Asset portal and the pendency was brought down to the
Management (DIPAM). minimum level almost in all categories. DIPAM has no
attached/ sub-ordinate office under its administrative
XV VIGILANCE MACHINERY control.
An Additional Secretary has been designated as part- (b) Monitoring of Court Cases: Monitoring of Court
time Chief Vigilance Officer in the Department. cases in DIPAM are now being done in Legal information
XVI RIGHT TO INFORMATION ACT, 2005. briefing System 2.0 (limbs 2.0). Joint Secretary (Admn)
has been nominated as Nodal Officer of limbs portal of
In order to facilitate dissemination of information under
DIPAM and DD/US/DS level officers of every Division
the provisions of the Right to Information Act, 2005, the
have been designated as limbs user by Nodal officer of
following initiatives have been taken by the Department:
DIPAM for the purpose of entry, updation and transferring
(i) An RTI Cell has been set up to collect, transfer the of court cases in limbs portal. Therefore, the status of
applications under RTI Act, 2005 to the Central Public pending court cases are monitored regularly at the users
Information Officers/ Public Authorities concerned level in the divisions of the Department through limbs
and to submit the quarterly returns regarding receipt portal.
and disposal of the RTI applications/ appeals, to the
Central Information Commission. (c) Capacity Building of DIPAM Officials/staff: DIPAM
collaborated with the Capacity Building Commission and
(ii) Details of functions of the Department along with its
formulated a training module suitable for developing a
functionaries etc. have been placed on Department's
skillset amongst the staff coming to DIPAM from varied
website (www.dipam.gov.in) in compliance with
fields/experiences. In pursuance, as a first instance, ISB
Section 4(1)(b) of the RTI Act and is updated from
was engaged as per the suggestions of the Capacity
time to time.
Building Commission to upskill the existing staff posted
(iii) One Under Secretary has been designated as the in DIPAM in developing a three-module training course.
Nodal Central Public Information Officer and 1 Deputy First module was organized online giving basic accounting
Directors, 1 Assistant Director and 9 other Under and financial management training. Second module was
Secretaries as Central Public Information Officers organized as a four days residential training. In the third,
under Section 5(1) of the Act, in respect of subjects module, the staff worked on different projects related to
handled by them. disinvestment and public asset management. These
(iv) 1 Joint Secretary, 7 Directors, 1 Joint Director and 3 projects have been reviewed by the ISB team online and
Deputy Secretaries have been designated as First offline. The Capacity Building Unit (CBU) in DIPAM has
Appellate Authorities in terms of Section 19(1) of the been constituted on 28.11.2022. Training of 13 officers
Act for all matters relating to their Divisions. from DIPAM was conducted at NSE Academy, Mumbai
227
as a part of the Capacity Building Programme on 1-2 XVIII AUDIT PARAS/OBJECTIONS

December, 2022. Meeting of CBU was held on No CAG or PAC paras/Objections are pending in the
15.12.2022 under the chairmanship of Secretary, DIPAM Department.
the chairmanship of Secretary, DIPAM to discuss the
Annual Capacity Building Programme for DIPAM officers. XIX INTEGRATED FINANCE UNIT
A meeting was held by Secretary, DIPAM with Member The Integrated Finance Unit works under Additional
(Admn), Capacity Building Commission and Deolitte Secretary & Financial Adviser (Finance) and deals with
representatives on 16.12.2022 to discuss the Annual expenditure and Budget related proposals of Grant No.
Capacity Building Programme for DIPAM officers. DIPAM 34 - Department of Inv estment & Public Asset
specific training will be encapsulated to help officials to Management - which includes Secretariat General
learn easily through audio/visual modules, in line with the Services covering the establishment budget for the
Karmyogi mission, for future use. Department of Investment & Public Asset Management.
The budget allocation under Grant No. 34 is as under: -
Grant No. Budget Estimates 2022-23 Revised Estimates 2022-23

Plan Non-Plan Total Plan Non-Plan Total
32 -
Department of ---- 290.42 290.42 ---- 197.06 197.06
Investment &
Public Asset
Management
The Integrated Finance Unit monitors all financial and country to commemorate the Azadi ka Amrit Mahotsav.
expenditure related proposals of the Department like The Conference was addressed by the Finance Minister
appointment of consultants, foreign deputation/visits of as part of the celebrations. The objective of the
officers etc. The expenditure trend of the Department is Conference was to encourage and educate the general
consistently monitored by the IF Unit. All budget related public and the potential investors on ways to benefit from
matters including issues concerning Standing Committee the capital market.
on Finance come within the purview of this unit.
Post address of the Finance Minister, the function
continued in all local venues with local Speakers/ experts
giving speeches and taking part in the interactive session
XX PARTICIPATION IN 'AZADI KA AMRIT
with the attendees on various topics related to investment
MAHOTSAV' (AKAM)
in stock market, risk mitigation etc. A short movie in 11
A Conference on the theme "Creating Wealth through regional languages prepared to showcase DIPAM's
Market" was organized by DIPAM on 10.06.2022 as an activities and related theme was also shown in all the 75
iconic event in 75 cities (including New Delhi) across the venues in local languages.
228
Annexure-I
List of PSEs and/or Subsidiaries/ Units/ Joint Ventures of PSEs and Bank for which Government has
given 'in-principle' approval for strategic disinvestment since 2016.
1. Ongoing Transactions being processed by DIPAM
S. No. Name of PSE
1. BEML Limited
2. The Shipping Corporation of India Limited
3. HLL Lifecare Limited
4. Project & Development India Limited
5. Ferro Scrap Nigam Limited (subsidiary)
6. Indian Medicines Pharmaceuticals Corporation Limited
7. Container Corporation of India Limited
8. Rashtriya Ispat Nigam Limited
9. NMDC Steel Limited (NSL)
(a) Bharat Petroleum Corporation Ltd (except Numaligarh Refinery Limited) @
10.
(b) BPCL stake in Numaligarh Refinery Limited to a PSE strategic buyer $
11. Pawan Hans Limited
12. Central Electronics Limited (CEL)##
Alloy Steel Plant, Durgapur^; Salem Steel Plant; Bhadrawati Steel Plant@ - units of Steel Authority of
13.
India Limited
14. IDBI Bank
@ EoI process called off due to lack of sufficient Bidder's interest to proceed.
$ Transaction completed.
^ Transaction halted for the time being.
## Successful bidder disqualified and transaction has been terminated.
2. Transactions being processed by respective Administrative Ministries

S. No. Name of PSE
15. Various Units of India Tourism Development Corporation Limited
16. Hindustan Antibiotics Limited
17. Bengal Chemicals & Pharmaceuticals Limited
3. Transactions halted as the PSEs recommended / approved for closure; or any other reason
S. No. Name of PSE
18. Hindustan Fluorocarbons Limited (subsidiary)**
19. Scooters India Limited**
20. Bharat Pumps & Compressors Limited**
21. Hindustan Prefab Limited
22. Units of Cement Corporation of India Limited (Nayagaon Unit) #
** Government approved for closure of the Company.

# Transaction not feasible and the mines are being returned to the State Governments
229
4. Transactions held up due to litigation
S. Name of PSE
No.
23. Karnataka Antibiotics & Pharmaceuticals Limited
5. Under Corporate Insolvency Resolution Process (CIRP) in NCLT
S. Name of PSE
No.
24. Hindustan Newsprint Limited (subsidiary)***
***Resolution Plan of Kerala Industrial Infrastructure Development

Corporation (KINFRA) approved by the NCLT, Kochi vide order dated
29.01.2021 is under implementation at present.
6. Transactions not Feasible

S.
Name of PSE
No.
25. Engineering Projects India Limited
26. Bridge & Roof Company (India) Limited
7. Completed Transactions
S.
PSE
No.
27. Hindustan Petroleum Corporation Limited (HPCL)
28. Rural Electrification Corporation Limited (REC)
29. HSCC(India) Limited
30. National Projects construction corporation Limited (NPCC)
31. Dredging Corporation of India Limited (DCIL)
32. THDC India Limited (THDC)
33. North Eastern Electric Power Corporation Limited (NEEPCO)
34. Kamrajar Port Limited
35. Air India^^
36. Neelachal Ispat Nigam Limited (NINL)
^^Subsidiaries which are now with AIAHL are still to be divested
230
Organisation Chart
231
Appendix-II
232
Representation of SCs, STs, OBCs in respect of Department of Investment & Public Asset Management
Representation of the persons with disabilities in DIPAM

Chapter - V Department of Financial Services V

1. Work Allocation among Sections duplicat e drafts, misbehav iour/rude behav iour/
harassment on the part of staff of the Institution, non-
1.1 Banking Operation-I (BO-I) settlement/delay in settlement of deceased accounts,
Appointment of Governor/Deputy Governor of non-transfer/delay in transfer of accounts from one office
RBI, Chairman & MDs of SBI, CMDs and EDs of to another, non-opening/delay in opening of new
Nationalised Banks, salary allowances and other terms accounts, non-compliance with standing instructions of
and conditions of W hole Time Directors of PSBs. the customers, non-payment of term deposits before
Constitution of Boards of Directors of RBI and PSBs: maturity, delay in payment to pensioners, including those
appoint ment of W orkmen Employee Directors, related to credit cards, ATMs, etc. All kind of complaints
appointment of Part Time Non-Official Directors and received from DARPG/DPG relating to Public/ Private
Officer Employee Directors of PSBs. Nomination of Sector/Foreign Banks/FI/Ins.
Directors on the Board of PSBs. All kinds of complaints received from MPs/VIPs
1.2 Banking Operation-II (BO-II) /PMO against Private Sector & Foreign Banks. Banking
Customer Service. Banking Ombudsman. Coordination
Administration of all Acts/Regulations/Rules of PRAGATI meetings.
related to Financial Systems like the Negotiable
Instruments Act, 1881, the Chit Funds Act, 1982 and the 1.4 Banking Operation & Accounts-I (BOA-I)
Price Chits and Money Circulation Schemes (Banning) Preparation of annual consolidated review on the
Act, 1978, etc., Banning of Unregulated Deposit Scheme working of Public Sector Banks (PSBs) and laying it on
Act, 2019, Deposit Insurance and Credit Guarantee the Tables of both Houses of Parliament. Pattern of
Corporation (DICGC), Act, 1961. Coordination of work accounting and final accounts in Public Sector Banks.
on matters related to Disaster management and crisis Study and analysis of the working results of PSU Banks.
management, Payment and Settlement System Act, 2007 Taxation matters of PSBs/FIs. Dividend payable to Central
and matters relating to Digilocker, wherein the proposal Government by PSBs. Scrutiny of the annual financial
is to enable the updation of the address of the account- reviews of PSBs conducted by RBI under Section 35 of
holder in banks. Disposal of appeals received under the Banking Regulation Act, 1949 and follow up action.
section 9 of the Payment and Settlement Systems Act, Capital restructuring of PSBs (including restructuring of
2007. Factoring Regulation Act, 2011. State Legislations weak PSBs) and Government’s contribution to share
– Protection of Interest of Depositors Acts of State capital, public issue of banks. Release of externally aided
Governments. grants to ICICI Bank under USAID. Disputes and
Matters relating to Multi-Level Marketing and arbitration between PSBs and between PSBs and other
Ponzi Schemes. Setting up of IFSC – GIFT. International Govt. Departments/PSEs. Appointment of advocates in
Relations (Banking) / Bilateral issues. International PSBs. Residuary matters of Portuguese Banks in Goa.
Cooperation in. WTO, RCEP, JCCII and CEPAs/CECAs/ Opening and shifting of administrative offices of banks.
FTAs of India with bilateral and multilateral partners. All Policy matters related to Banking Operation
Matters relating to Financial Sector Development Council
such as Licensing, amalgamation, reconstruction,
and its Sub-committees. Matters relating to Central
moratorium funds, and acquisition of private sector banks.
Economic Intelligence Bureau (CEIB). Matters relating
Functioning of PSBs. Notification regarding exemption
to office of Court Liquidator, Kolkata. Work relating to
from various sections of the Banking Regulation Act, 1949
Government Agency Business. Financial Action Task
Force (FATF). Setting up of Currency Chest by banks in and appointment of appellate authority to hear appeals
border districts (within 80 KMs of International Border). under BR Act and Banking Companies (Acquisition and
Rationalization of Bank Holidays / declaration of bank Transfer of Undertakings) Act of 1970 and 1980.
holidays under section 25 of the Negotiable Instruments Administration of all Acts/ Regulations/ Rules related to
Act, 1881. Know Your Customer (KYC) all matters – AML Public Sector Banks, RBI and State Level Banks. Laying
and CFT matters. of annual reports and audit reports etc., of PSBs in
Parliament.
1.3 Banking Operation-III (BO-III)
1.5 Banking Operation & Accounts-II (BOA-II)
Customer Service in Banks/FI/Ins.All kinds of
complaints/representations received from individual/ Credit Information Companies (CICs). Works
associations for redressal of their grievances in these relating to monitoring of NPAs and Recovery including
institutions such as delay in clearance of cheques, non- compromises and OTS of all PSBs. Parliament matters,
payment/non-issue of drafts, non-issue/delay in issue of VIP/PMO references, complaints and other matters
233
relating to above works. All matters related to NPA/ 1.8 Financial Inclusion (FI)
Stressed Assets (other than Sectoral Stress), including
Work relating to financial inclusion, coordination
relief measures by banks in area affected by natural
with other sections, offices, institutions etc on Financial
calamities. Stressed Assets Stabilization Fund (SASF).
inclusion. Branch expansion of banks. Lead Bank
Audit of banks, appointment and fixation of remuneration
Scheme and Service Area Approach. District and State
of auditors of PSBs/FIs. Bank guarantees, Letters of Level Bankers’ Committee (SLBC). Regional imbalances
Credit and Letters of Undertaking / Comfort by PSBs and of banking network, matters related to Business
related complaints. Citizen’s Charter of PSBs/RBI. Correspondents/Business Facilitators, Mobile Banking
Acquisition/Leasing/Renting/Vacation of premises, Estate etc., matters relating to e-Governance in all FIs and e-
Officers under Public Premises Act, 1971. Operation of Payments in banking system and computerisation of
foreign banks in India (including IDC and FDI Policy PSBs. Matters relating to Payment Regulatory Board
matters). Banking Sector Reforms (including EASE Index (PRB) constitution and matters related to PRB. Matters
and PSB Reforms Agenda). NBFCs and Appellate relating to Minimum deposit balance, cash handling &
Authority on NBFCs. Operational risk management (other digital payment charges; On-boarding of merchants on
than cyber-security and digital payments security), digital payment platforms other than cards. Banking
including frauds and fugitive offenders. Administration of matters relating to digital payment platforms; Pradhan
all Acts/Regulations/Rules related to NBFCs and CICs. Mantri Jan Dhan Yojana (PMJDY), Mission Office. All
Statement of Intent / Key Performance Indicators / matters related to Stand Up India (SUI).
Performance evaluation of whole-time Directors.
1.9 Industrial Relations (IR)
Insolvency Bankruptcy Code (IBC). Overseas branches
of Indian banks. Service matters of PSBs including IDBI/ RBI,
Pension matters of NABARD. Industrial Disputes Act
1.6 Agriculture Credit (AC)
matters, HR matters relating to PSBs and RBI Unions
Credit flow to Agriculture and allied sectors. and Associations in the Banking Industry, Bipartite
Agricultural Debt Waiver and Debt Relief Scheme, 2008. settlements of policy of transfer, promotion, and HRD in
Matters relating to NABARD (except pension matters), banks. IB reports about political activities of bank
Agriculture Finance Corporation (except Service matters), employees. Pay and Allowances of bank employees in
State Legislations on the subject, Co-operative Banks overseas branches. HR Reforms.
(including Urban Co-operative Banks), external aided 1.10 Coordination (Coord.)
projects relating to rural/agriculture credit, appeals made
by co-operative banks, financial assistance to persons Organisation of FM’s meetings with CEOs of
affected by natural calamities, riots disturbances, etc. PSBs and regional consultative committee meetings. Staff
Bank credit to KVIC, handloom and handicraft sector. Meeting of Secretary (FS)/ Senior Officers Meeting
Citizen Charter of NABARD. Appointment of CMDs & (SOM). Monitoring & Rev iew of disposal of VIP
Directors of NABARD. Kisan Credit Card (KCC) Scheme. references, PMO references, coordination of RBI pending
Secretarial assistance to the designated appellate matters. Parliament Questions related to VIP references.
authority in regard to appeal by Urban Cooperative banks Monthly DO letter to Cabinet Secretary from Secretary
against cancellation of license by RBI. (FS). Appointment of CPIOs, ACPIOs, AA and Nodal
Section for RTI matters of DFS and to deal with CIC for
1.7 Regional Rural Banks (RRB) Annual Report etc. Updation of Induction Material for DFS;
Co-ordination of VIP, PMO, President-Sectt.etc.,
Legislative matters with regard to RRB Act, 1976 references involving more than two Divisions of DFS.
and framing of rules there under. Nomination of non-
official directors on the Board of RRB, appointment of 1.11 Establishment (Estt.)
Chairman, Recommendation of RRBs, review of Matters pertaining to the Officers and Staff of DFS
perf ormance of RRBs, wage revision, manpower including RRs, appointment, ACRs, deputation (including
planning. Laying of Annual Reports of all RRBs along abroad), training, IWSU, SIU, welfare, review of officers
with review thereof. Formation of Staff Service Regulation under FR 56(J), internal vigilance, staff grievances,
and Promotion Rules for employees and officers of RRBs, pension, etc. Grant of various advances to officers and
IR matters of RRBs. Citizen’s Charter of RRBs. Priority staff, payment of fees to advocates, settlement of medical
Sector Lending, Micro Finance and other related matters claims and CGHS matters, family welfare programme.
which includes lending to weaker sections including SC/
ST, PM’s New 15 Point Programme for the Welfare of 1.12 General Administration (GA)
Minorities, Credit to minorities, follow up action of Select Housekeeping/Security matters, cleanliness,
Parameters recommended by Sachar Committee, DRI stores, canteen, R&I, library. Staff Car Drivers, vehicles
Scheme. to the officers of DFS. Purchase of Computer Hardware
234
Department of Financial Services V
and maintenance of Computers, Printers and other Deposits and advances of banks. Rates of interest on
equipment’s. Maintenance of furniture and electricity bank deposits and advances. Dissemination of results
items. Logistic support for arranging farewell of staff of and important information relating to RBI, IBA, studies
DFS. Providing of Identity Cards to the Staff of DFS and on banking reforms. Analysis of other international reports
CMDs/EDs/PROs of Public Sector Banks/Financial relevant to banking sector in India. Analysis of Reports
Institutions/Insurance companies, etc. of committees on Financial Sector Reforms etc.
Management Information System - collection, collation
1.13 Parliament of data relating to Banking Industry. Result Framework
Collection, identif ication and marking of Document (RFD), Speeches of FM/MOS on different
Parliament Questions, Notices, admitted Questions, and occasions. Audit Paras. UN e-Government Index & Digital
getting the files approved from the Minister. Preparation Services. Work related to committee of Financial Sector
of facts and replies for pads of Ministers. Keeping track Statistics. Coordination of budget proposals of DFS.
and record of pending Assurances, Special Mentions and Matters related to Budget Announcements, Output-
References under 377 and other matters as mentioned out come Monit oring Fram ework. Sustainable
in the Induction Material. Presidential address to the Joint Development Goals – Indicators pertaining to DFS.
Session of Parliament. Compilation and submission of 1.18 Industrial Finance-I(IF-I)
material for Parliament Questions to other Ministries/
Departments. Parliamentary Committee Matters, etc. Administration of the Export-Import Bank Act-
1981 and Scheme for financing Viable Infrastructure
1.14 Hindi Projects (SIFTI) of IIFCL, Operational/Policy/Budgetary
Implementation of Official Language Policy of the matters relating to Exim Bank, IIFCL, IWRFC and IIBI
Government.Translation work relating to Parliament Ltd. Matters related to IFCI Ltd, IDFC Ltd, winding up
Questions. Standing Committees, Minutes of the matter related of IIBI Ltd, and other related matters. Board
Meetings. Hindi Teaching Scheme and ot her level Appointments-Whole Time Directors- IIFCL, EXIM,
miscellaneous work as mentioned in induction material IFCI Ltd and their personnel matters. Government
of DFS. Nominee Directors-EXIM Bank, IIFCL, IFCI Ltd. and IDFC
Ltd. Non-Official Directors/Independent Director in -EXIM
1.15 Welfare Section (SCT) Bank, IIFCL and IFCI Ltd. Sector-specific matters like
Matters relating to recruitment, promotion and infrastructure, power, textiles, exports; steel, telecom,
welfare measures of SC/ST/OBC/PH and Ex-servicemen road, shipping (added) etc. matters related to sectoral
in Public Sector Banks/Financial Institutions and Public issues. Laying of annual reports of IIFCL, EXIM Bank,
Sector Insurance Companies (PSBs/FIs/PSICs). Matter IFCI Ltd and Liquidator’s report of IIBI Ltd. Before the
of policy regarding reservation for these categories in Parliament.
PSBs/FIs/PSICs, reservation matters in RRBs etc. Matters related to Ratnagiri Gas and Power Pvt.
Inspection/examination of Reservation Roster for SCs/ Ltd (RGPPL). Citizen’s Charter of EXIM Bank and IIFCL.
STs/OBCs in PSBs/FIs/PSICs. All matters related to resolution and registration issues
1.16 Reservation Cell of Asset Reconstruction Company (ARC) and to track
the activities of the ARCs. All matters related National
Assistance to the Liaison Officer for smooth Investment and Infrastructure Fund. Appointment of
f unctioning and di scharging of his duties and Statutory Auditor in EXIM Bank. Media and Publicity
responsibilities as Liaison Officer for SC/ST/OBC/EWS/ related matters of DFS. Project Monitoring Group (PMG)
PwD, preparation / maintenance of reservation roster of Meeting. Partial Credit Guarantee Scheme (PCGS).
SC/ST/OBC/EWS/PwD for the proper secretariat of this Legislative work related to NaBFID act and EXIM Act.
Department, reply to Parliament Questions/National Matter related to establishment and operation of NaBFID.
Commission for SC/ST/OBC/PwD in respect of SC/ST/ Matters related to office of Custodian.
OBC/EWS/PwD staff of the Department, maintenance
of data of SC/ST/OBC/EWS/PwD staff of the Department, 1.19 Industrial Finance-II (IF-II)
submission of all reports/ information to other Ministries/ Administration of National Housing Bank Act,
Departments/Parliamentary Committees, etc. in the 1987. Administration of Small Industries Development
related matters. Bank of India Act. Administration of National Housing
1.17 Data Analysis (DA) Bank Act Administration of State Financial Corporation
Act. Operational, Policy and Budgetary matter relating to
Reserve Bank of India Credit Policy - Busy SIDBI and NHB. Matters relating to NHB and Housing
Season - Slack Season and selective credit control. Policy. Post winding up of BIFR & AAIFR matters. Matters
Financial sector assessment and sectoral credit analysis. related to Micro, Small and Medium Enterprises
Banking Statistics regarding bank deposits and advances. (MSMEs), TReDS. SIDBI, SFCs, Credit Guarantee Fund
235
for Micro and Small Enterprises, CGFMU, CGFSI, Filling up of the posts of Chairpersons, Presiding Officers,
CGTMSE, CGFF, MLIs, Credit Guarantee Scheme and Registrars, Assistant Registrars, Recovery officers, and
other related matters on the subject. Citizens Charter of other posts in DRTs/DRATs. Issuing clarifications/
NHB and SIDBI. guidelines etc. on administrative matters/review. Progress
and disposal of cases by DRT/DRATs. Budget provisions,
All matters related to Educational Loans including monitoring, etc relating to DRTs/DRATs.
Vidyalakshmi Portal, Govt. Sponsored Schemes-PMEGP,
Education, employment generation scheme of SJSRY, Administration of SARFAESI Act, appointment of
SGSY and other poverty alleviation programmes and Registrar/MD & CEO, CERSAI, ease of doing business
other related matters, VIP references, Audit Paras, agenda- flowing from recent amendments. CKYC matters
CPGRAM, RTI, Parliament Questions, Assurances, under Prevention of Money Laundering Act, 2002. Policy
Grievances, Budget Announcements, Coordination with matters relating to Central Registry of Securitisation Asset
RBI and State Govts. Appointment and all personnel Reconstruction and Security Interest (CERSAI), a PSU,
matters of Whole Time Director in SIDBI and NHB. including the Central Registry under the SARFAESI Act,
2002.
Appointment of Non-Off icial/Independent
Directors and Government Nominee Directors in SIDBI 1.22 Insurance-I (Ins.-I)
and NHB. Laying of annual reports of SIDBI and NHB
before the Parliament. Corporate governance, appointment and
service matters pertaining to public sector insurers and
All matters related to Pradhan Mantri Mudra AICIL, Insurance Regulatory and Development Authority
Yojana (PMMY). of India, Council of the Institute of Actuaries of India,
Insurance Ombudsmen, Council of I nsurance
Micro Finance - Matters related to Micro Finance Ombudsmen, recruitment and the terms and conditions
Institutions and Legislation thereon, Self Help Groups as of agents of the Life Insurance Corporation of India, and
well as NABARD’s Micro Finance, etc. Matter related to insurance appointment related matters pertaining to
psbloansin59minutes portal. Banks Board Bureau Administration of the Actuaries Act,
1.20 Vigilance 2006 and related matters. Matters of public entities
relating to the Public Premises (Eviction of Unauthorized
Consultation with CVC/CTE. Nomination of Occupants) Act, 1971. Parliamentary, audit, right to
CVOs for PSBs/FIs/PSICs. Correspondence with CBI. information, court, arbitration and VIP reference related
Annual Action Plan on Anti-Corruption measures. matters and dealing with matters referred through receipts
Investigation of cases of frauds by CBI & RBI. Matters or otherwise in respect of any of the items enumerated
under Prevention of Corruption Act. Preventive vigilance. above or connected thereto.
Vigilance systems and procedures in RBI/PSBs/FIs and
Insurance Companies PFRDA and IRADI/RBI. Inquiry into 1.23 Insurance-II (Ins.-II)
complaints against GMs/EDs and CMDs of PSBs/FIs/ Administration of the Insurance Act, 1938; Life
PSICs/PFRDA and IRADI/RBI and Vigilance Surveillance Insurance Corporation Act, 1956; General Insurance
over them. Major frauds in PSBs (in India and abroad). Business (Nationalisation) Act, 1972; Insurance
PMO references on anti-corruption measures. Bank Regulatory and Development Authority Act, 1999 and
security, robberies & loss prevention in banks. related matters, other than those related to corporate
Sanction of prosecution in case of ED/CMDs. War Book governance, appointment and service matters or those
Matters. Annual Reports of CVC. Conduct Regulation in relating to recruitment and the terms and conditions of
PSBs/FIs, employment after retirement regulations in agents of the Life Insurance Corporation of India. Policy
PSBs. CVC/CBI references relating to DRTs/DRATs. matters relating to insurance, and to this end, analysis of
Vigilance clearance, sanction of prosecution and any the trends and development in and the performance of
other matter of Board level appointees of PSBs, FIs, the insurance sector and various bodies established by
PSICs, PFRDA, IRDA and RBI. Vigilance matters of or under the said Acts. Administrative matters pertaining
Officials in DFS, Officers of Office of Custodian and to public sector insures and Agriculture Insurance
Government Officials in DRTs/DRATs. Corporation of India Limited (AICIL), other than
gov ernance, appointment and serv ice matt ers.
1.21 Debts Recovery Tribunals (DRT) Assessment of capital requirements, divided payouts and
Establishment of DRTs/DRATs under the performance of public sector insurance and AICIL.
Recovery of Debts due to Banks and Financial Institutions Social security schemes for insurance protection
Act, 1993. Administration of Recovery of Debts and and other insurance schemes sponsored/ supported by
Bankruptcy (RDB) Act, framing or amending rules for the Government. Insurance Ombudsmen Rules and
implementing of the provisions of the Act. administration thereof, other than corporate governance,
236
appointment and service related matters pertaining to court cases of surplus staff. RTI and personal matters of
Insurance Ombudsmen and the Council of Insurance surplus staff such as leave, retrial benefits, perks &
Ombudsmen. Foreign investment in insurance sector. allowances etc.
Reforms in the sector and public sector insurers, including
adoption of technology in insurance (except matters 1.28 Office of the Custodian and Special Court
allocated to the Cybersecurity and FinTech Section). Joint Parliamentary Committee (JPC) (which
Supporting the section in charge of international enquired into irregularities in securities transactions).
cooperation matters on insurance related aspects of Disciplinary action against bank employees/executives
international cooperation. Taxation matters relating to involved in irregularities in securities transactions.
insurance sector. Matters relating to the industry, including Establishment matters relating to Special Courts/Office
those raised by industry bodies/ associations. of the Custodian. All issues pertaining to continuation of
Implementation of Law Commission Reports. All residual
posts, budget matters of the O/o Custodian and Special
matters relating to insurance which are not enumerated
Court including extension of the O/o Custodian and
specifically as an item of work allocated to either
appointment of Custodian.
Insurance-I Secti on or Insurance-II Secti on.
Parliamentary, audit, right to information, court, arbitration, 2. Developments in Banking Sector
VIP reference related matters and dealing with matters
referred through receipts or otherwise in respect of any Overall condition of banking sector
of the items enumerated above or connected thereto. As a result of implementation of reforms in the
1.24 Pension Reforms (PR) financial system, and particularly in PSBs by the
Government, performance of banking sector has
Reforms in the Pension Sector. Policy matters significantly improved, as indicated below:
wit h respect to NPS, Atal Pension Yojana and
Swavalmban Scheme. Administration of PFRDA Act, (a) Asset quality has improved significantly with-
2013. Framing of rules under PFRDA Act, 2013.  Gross NPA ratio of SCBs declining from the
Appointments of Chairperson and Board member of Mar-18 peak of 11.18% (Rs. 10.36 lakh
PFRDA, CVO in PFRDA, Budget and Funds of PFRDA crore) to 5.82% (Rs. 7.42 lakh crore) in Mar-
and Legislative and policy prescriptions to PFRDA. 22, and to 5.61% (Rs 7.34 lakh crore) in
June-22.
1.25 Cybersecurity and FinTech (IT)
 Gross NPA ratio of PSBs declining from the
Matters relating to overall cybersecurity for the
Mar-18 peak of 14.58% (Rs. 8.96 lakh crore)
financial services sector and in the Department.
to 7.28% (Rs. 5.41 lakh crore) in Mar-22,
Coordination of FinTech and Deep Tech (artificial
and 6.09% (Rs. 4.87 lakh crore) in Sep-22.
intelligence, big data, block chain, etc.) matters related
to the financial services sector and the Department (other  Net NPAs ratio of SCBs declining from
than matters related to e-payments in the banking 5.94% in Mar-18 to 1.67% in Mar-22.
system). Management of the Department’s website and
web services. Coordination with NIC for the Department.  Net NPAs ratio of PSBs declining from
Parliamentary, audit, right to information, court, arbitration 7.97% in Mar-18 to 2.19% in Mar-22, and
and VIP reference related matters and dealing with 1.69% in Sep-22.
matters referred through receipts or otherwise in respect (b) Resilience has increased with-
of any of the items enumerated above or connected
thereto.  Provision coverage ratio of SCBs rising to
86.85% in Mar-22, from 49.31% in Mar-15.
1.26 GST Cell
 Provision coverage ratio of PSBs rising to
Overseas preparedness of all institutions under 86.65% in Mar-22 (88.91% in Sep-22), from
DFS to implement GST, to provide inputs to the “ Banking, 46.04% in Mar-15.
Financial and Insurance” Sectoral Group with reference
to GST.Other matters related to coordination, rollout and (c) Capital adequacy has improved significantly,
implementation of GST w.r.t insti tutions under with—
administrative control of DFS etc.  CRAR of SCBs improving by 386 bps to
1.27 Surplus Cell reach 16.80% (all time high level) in Mar-22
from 12.94% in Mar-15.
All service matters and day to day administrative
matters related to surplus staff of AAIFR & BIFR including  CRAR of PSBs improved by 317 bps to
their redeployment. Consultation with DoPT, handling of reach 14.62% in Mar-22 (14.53% in Sep-
22) from 11.45% in Mar-15.
237
(d) In FY 2021-22, SCBs earned record profit of while 1,807 hav e ended in orders f or
Rs. 1.82 lakh crore. All PSBs are in profit with liquidation. Further, the creditors, in cases
aggregate profit being Rs. 66,543 crore in FY wherein the resolution plans were approved,
2021-22 (Profit continued with Rs. 40,992 crore have realised Rs. 2.43 lakh crore against the
in first half of FY 23). aggregate claims of Rs. 7.91 lakh crore and
aggregate liquidation value of Rs. 1.37 lakh
(e) Banks, earlier placed under Prompt Corrective
crore. Though the creditors could realise only
Action (PCA) framework by RBI, have made
approx. 31% of their admitted claims in these
significant improvement resulting in removal of
cases, yet the realised amount was more than
each one of them from the PCA restrictions.
177% of the liquidation value of these CDs.
2.1 Steps Taken to Reduce Stressed Assets
 The SARFAESI Act, 2002 has been amended
Government and RBI regularly issue guidelines to make it more effective, with provision for
and have taken several initiatives aimed at resolution three months’ imprisonment in case the
of long-standing stressed assets on the books of banks borrower does not provide asset details, and
as well as timely identification and recognition of stress for the lender to get possession of mortgaged
immediately upon default and take corrective actions property within 30 days.
for mitigation of the same. These measures complement
 Jurisdiction of Debt Recovery Tribunal (DRTs)
the statutory provisions already available to lenders for
was increased from Rs. 10 lakh to Rs. 20 lakh
recovery and resolution, including, inter alia, Recovery
to enable the DRTs to focus on high value
of Debts and Bankruptcy Act, 1993, Securitisation and
cases resulting in higher recovery for the
Reconstruction of Financial Assets and Enforcement
banks and financial institutions. Six new DRTs
of Security Interest (SARFAESI) Act, 2002 and
have also been established to expedite
Insolvency & Bankruptcy Code, 2016 (IBC). As a result
recovery.
of these comprehensive steps SCBs recovered an
aggregate amount of Rs. 8,57,002 crore from NPAs over Enabled by the above, PSBs have also recovered
the last eight financial years. The steps taken include, an aggregate amount of Rs. 89,560 crore for FY21-22 from
inter alia, the following – NPAs, which includes Rs. 20,201 crore through IBC, Rs.
20,248 crore through SARFAESI, Rs. 9,417 crore through
 IBC has led to behavioural change in the
DRT and Rs 2,442 crore through Lok Adalat etc. for the
debtor-creditor relationship by shifting the
FY21-22.
focus from the ‘Debtor in Possession’ to a
‘Creditor in Control’ regime, wherein the 2.2 Position of Bank frauds
creditors of the Corporate Debtor (CD),
through their appointed Interim Resolution RBI has issued Master Directions on Frauds in
Professional/ Resolution Professional 2016, and Government has instituted wide-ranging
(IRP/RP), remain in control of the assets structural and procedural reforms to check frauds in banks.
of the CD from the time the application is Such systemic and comprehensive checking for frauds,
admitted by the AA. This fear of losing including of the legacy stock of NPAs, led to unearthing of
control of the firm on initiation of Corporate frauds perpetuated over the years. The improved detection
Insolvency Resolution Process (CIRP), is and reporting accompanied with the comprehensive steps
nudging debtors to settle their dues with taken to check frauds have resulted in sharp decline in the
the creditors as soon as possible. Till occurrence of such frauds, with fraud occurrence as a
30.9.2022, 23,417 applications for initiation percentage of gross advances, having declined sharply
of CIRPs, having underlying default of Rs. from a peak of 1.12% in FY2013-14 to 0.05% in FY2021-
7.31 lakh crore were resolved before their 22 in SCBs, and from a peak of 1.16% in FY2013-14 to
admission itself. This may be attributed to 0.06% in PSBs in FY2021-22.
the behavioural change effectuated by IBC. 2.3 National Asset Reconstruction company
 Since CI RP coming into f orce on Limited (NARCL)
1.12.2016, a total of 5,893 CIRPs have The Board composition has been completed for
commenced by the end of September, both National Asset Reconstruction Company Limited
2022, out of which, 3,946 have been (NARCL) and India Debt Resolution Company Limited
closed. Of the CIRPs closed, the CD was (IDRCL). Regular MD & CEOs and most of the key
rescued in 2,139 cases, of which 846 have executives of NARCL and IDRCL have joined their
been closed on appeal or review or settled; respective organisations. NARCL is intended to resolve
740 have been withdrawn; and 553 cases both fully and partially provided legacy stressed assets
have ended in approval of resolution plans; amounting to about Rs. 2 lakh crore in the Indian banking
238
system. Acquisition of assets would be under the extant total bank branches in the country, their share in
guidelines whereby through the 15:85 structure, 15 per total number of rural branches is about 29%. In
cent of the net value of assets will be paid upfront to the rural areas of aspirational districts, RRBs
lenders and security receipts will be issued to the lenders have about 40% of the rural branches. Moreover,
for the remaining 85 per cent. many RRBs have branches in remote areas and
they are providing financial services to vulnerable
A total of 66 accounts of Rs. 2.28 lakh crore have been sections.
identified for transfer to NARCL in a phased manner. Due
diligence (DD) in 41 accounts has been initiated by (v) In rural areas, the share of deposit accounts of
NARCL with DD completed in 16 accounts. Binding offers RRBs is about 26% and RRBs have the highest
in 12 accounts of about Rs. 67,090 crore have been given average balance in PMJDY accounts amongst
to lenders. Swiss challenge initiated by lenders has been all categories of banks. In North-eastern region,
completed in four accounts with binding offers worth Rs. RRBs cater to the banking needs of about 38%
3,931 crore. Letter of acceptance has been issued in of the rural people. As against the overall Rural
favour of NARCL in one account with consideration CD Ratio of 64% for all the banks, RRBs have
amount of Rs. 3,570 crore. Rural CD Ratio of 75%.
2.4 Regional Rural Banks (RRBs) 2.4.2 Unprecedented Capital Support for RRBs
The RRBs were established under the provisions FY 2021-22 was a watershed year in the context
of the ordinance promulgated on 26th September, 1975 of RRBs as Government of India decided to infuse Rs.
and RRBs Act, 1976. The first 5 Regional Rural Banks 10,890 crore (GoI share (50%)- Rs.5,445 crore) of capital
(RRBs) were established on 2 October 1975 to in RRBs during FY 2021-22 and FY 2022-23.
commemorate the birth anniversary of Mahatma Gandhi
with the objective to create an alternative channel to The total recapitalisation assistance budgeted for
cooperative credit structure with a view to ensure sufficient RRBs during FY 2021-22 and FY 2022-23 amounts to
institutional credit for rural and agriculture sector. The Rs.10,890 crore including the proportionate share capital
RRBs, with focus on serving the rural areas, are an contribution by State Governments (15%) and Sponsor
integral segment of the Indian banking system. Banks (35%). The total capital infusion from 1975 to FY
Sponsored by the Commercial Banks, the equity of RRBs 2020-21 was Rs.8,393 crore by all stakeholders.
are held by the Central Government, concerned State
Government and the Sponsor Bank in the proportion of Rs.8,168 crore (GoI Share: Rs. 4,084 crore) was
50:15:35. These banks are envisaged to be State- sanctioned as recapitalisation assistance to 22 RRBs for
sponsored, regionally based and rural-oriented. The FY 2021-22. DFS, GoI vide their sanction letter dated 28
purpose of establishment of the RRBs is to develop the March 2022 accorded approval for placing GoI’s share
rural economy by providing credit and other facilities to of Rs.4,084 crore towards recapitalization of 22 RRBs at
the small and marginal farmers, agricultural labourers, the disposal of NABARD, with the advice to release the
artisans and small entrepreneurs. As on 31 March 2022, GoI’s share to RRBs on pro-rata basis, depending upon
43 RRBs are operating through a network of 21,892 the proportionate prior release of the funds by the Sponsor
branches covering 702 districts of the country. All Banks and the State Governments.
branches of RRBs are on CBS Platform.
As on 20 December 2022, NABARD has
2.4.1 Role of RRBs released GoI’s share (in portion/ full) amounting to Rs.
RRBs hav e a m andat e to ensure rural 4,007.80 crore t o 22 RRBs after conf irm ing
development and foster financial inclusion. Over the proportionalprior release of the funds by the Sponsor
years, the RRBs have traversed a long journey. The Banks and the State Governments.
contributions being made by RRBs as a whole at present, 2.4.3 Objectives of the Recapitalisation scheme
are briefly as under:
RRBs have been regularly infused with capital in
(i) Of the total loans extended by the RRBs, about the past to help them meet the regulatory requirement of
46% goes to agriculture. About 90% of loans are 9% CRAR (Capital to Risk Weighted Assets Ratio).
extended to the priority sector. Of the total loans,
about 79% is extended to weaker sections. However, this latest scheme aims to rejuvenate
and revitalise the RRBs with sufficient growth capital to
(ii) RRBs play a significant role in extending micro
credit. They account for 30% of the SHG facilitate reinventing themselves as sustainably viable and
accounts and 26% of the loan amount. 19% of self-sufficient financial institutions and for leading the
total KCCs have been issued by the RRBs. growth process and the change in rural areas. The capital
infusion will help RRBs in technology adoption and to
(iii) Share of RRBs in total accounts/enrolments efficiently cater to the financial inclusion needs of the rural
under Government Sponsored Schemes like populace.
PMJDY, PMJJBY, PMSBY, APY, etc varies from
12% to 19%. Further, the recapitalisation scheme will be
accompanied by operational and governance reforms
(iv) 92% of the branches of RRBs are in rural and under the broad ambit of Sustainable Viability Plan with
semi urban areas. Though RRBs have 14% of a well-defined implementation mechanism aimed at credit
239
expansion, business diversification, NPA reduction, cost c) In order to facilitate comprehensive monitoring
rationalisation, technology adoption, improvement in of the perf ormance of RRBs i ncluding
corporate governance etc. performance under their Viability Plans, DFS, in
2.4.4 Important Developments in the context of association with NABARD, has developed a
RRBs in FY 2022-23 dashboard called RRB n{ÉÇhÉ (RRB Darpan). Data
in respect of more than 120 quantitative and
a) In order to ensure optimal ut ilisation of qualitative metrics are collected from RRBs on a
recapitalisation assistance sanctioned to RRBs, monthly basis. The Dashboard presents the data
Hon’ble Finance Minister addressed the submitted by the RRBs in the form of ingenious
Chairmen of all RRBs on 7 July 2022 during a charts and reports.
discussion meeting held on ‘Operational and
Governance Reforms in RRBs’ on 7 July 2022. d) Department of Financial Services, Government
b) A Workshop on ‘Operational and Governance of India vide notification dated 14 September
Reforms in RRBs’ was held on 3 September 2022 2022 has issued ‘Guidelines for Raising
at Reserve Bank of India’s College of Agricultural Resources from Capital Market’ for RRBs. RRBs
Banking (RBI CAB), Pune under the meeting certain indicative criteria have been
Chairmanship of Secretary, DFS, GoI with permitted to approach capital market for raising
participation of MD&CEOs & EDs of Sponsor resources after approval of all concerned
Banks, Chairmen of RRBs and officials of DFS regulators and GoI. Sponsor Banks of RRBs have
and NABARD. All RRBs were advised to prepare been advised to identify such RRBs and provide
a board approved Viability Plan with SMART handholding support.
(Specific, Measurable, Achievable, Relevant,
Time-bound) indicators. The metrics which were e) Keeping in view the need to promote the spread
to be adopted under the Viability Plan were of digital banking in rural areas, RBI, vide their
finalised during the workshop and all the RRBs notification dated 1 November 2022, has relaxed
rolled out their Board approved Viability Plans in the criteria for RRBs to be eligible to provide
the first week of October. internet banking.
2.4.5 Key Financial Parameters

(Amount in Rs. crore)
Particulars 2019-20 2020-21 2021-22
No. of RRBs (No.) 45 43 43
Branch Network (No.) 21,847 21,856 21,892
Share Capital 7,849 8,393 14,880
Reserves 26,814 30,348 34,359
Deposits 4,78,737 5,25,226 5,62,538
Borrowings 54,393 67,864 73,881
Investments 2,50,859 2,75,658 2,95,665
Gross Loans & Advances O/s 2,98,214 3,34,171 3,62,838
No. of RRBs earning Profit 26 30 34
Amount of Profit (A) 2,203 3,550 4,116
No. of RRBs incurring Losses 19 13 9
Amount of Losses (B) 4,411 1,867 897
Net Profit of RRBs (A – B) -2,208 1,682 3,219
GNPA (Amount) 31,106 31,381 33,190
GNPA (%) 10.4 9.4 9.1
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2.5 National Portal for Credit Linked Government Stand Up India, Weavers Credit Card; MUDRA Loans;
Schemes – Jan Samarth Portal: Agriculture Marketing Infrastructure Scheme (AMI);
Agriculture Infrastructure Fund (AIF); Agri clinics and
The Hon’ble Prime Minister launched the Agribusiness Centers Scheme (ACABC); Deendayal
National Portal for Credit-linked Government Schemes Antyodaya Yojana- National Rural Livelihood Mission
‘Jan Samarth’ on 06.06.2022. The purpose of ‘Jan (DAY-NRLM); Central Scheme for Interest Subsidy on
Samarth’ is to enable greater ease and convenience to Education Loans for Economically Weaker Sections
all beneficiaries of credit-linked Government sponsored (CSIS); PadhoPardesh Scheme; Dr. Ambedkar Central
schemes. Sector Scheme of Interest Subsidy on Education Loan
The Government runs various credit-linked for Overseas Studies for OBCs & EBCs; PM Employment
schemes to meet the needs of citizens, especially the Generation Programme (PMEGP); PM Street Vendor’s
underprivileged for livelihood, education and housing etc. AtmaNirbhar Nidhi (PM-SVANidhi); and Self-Employment
Such credit requirement of beneficiaries is met through Scheme for Rehabilitation of Manual Scavengers
multiple Ministries/Department and Banks etc. To improve (SRMS). The Portal has feature of on-boarding more
ease of living and convenience, a need was felt for a Central Gov ernment schemes and al so State
single platform, where a beneficiary can avail benefits Government Schemes in future.
under multiple Government programmes. ‘Jan Samarth’ The Portal’s benefits are that beneficiaries can
portal enables loan applicat ion under multi ple track loan application and sanction and disbursement
Government schemes to be processed at a single place. under multiple Government programmes on a single
An applicant desirous of obtaining credit under portal. Assessment of creditworthiness of borrowers by
Government schemes can visit ‘Jan Samarth’ portal. banks becomes more efficient as necessary information
Under different schemes he can check his eligibility for provided by ‘Jan Samarth’. As far as Government
loan, potential lending institution and loan conditions etc. Ministries/ Departments are concerned, faster loan
and apply. The application made by the beneficiary on disbursement leads to improved programme efficiency
the ‘Jan Samarth’ portal would be transmitted to lending and MIS reports are available on ‘Jan Samarth’ to improve
institution along with details necessary for assessing monitoring of schemes.
credit worthiness of the borrower. After assessment by
the lender, sanction of loan and disbursement will be 2.6 Account Aggregator
conveyed electronically and the beneficiary can track the
status of the application on the portal Union Budget 2020-21 announcement: - “An app-
based invoicing financing loans product will be launched.
The Portal brings together various stakeholders This will obviate the problem of delayed payments and
in the credit appraisal and disbursal process, including consequential cash flows mismatches for the MSME”.
Banks and ot her lending institutions and other
stakeholders on a common platform which is designed 2.6.1 Developments
to streamline the credit delivery process. The most A Committee constituted by Department of
important player in the process of credit appraisal and Economic Affairs (DEA) on 12.1.2022 with members from
disbursal – banks and other lending institutions – have DFS and Department of Revenue (DoR) to discuss next
been onboarded. ‘Jan Samarth’ facilitates data exchange steps to scale up Cash Flow based Lending to MSMEs
from other stakeholders for purposes of appraisal of loan through SAHAY app using the Account Aggregator (AA)
application and ease of disbursement also, including Framework, recommended DoR to facilitate GSTN
Unique Identification Authority of India (UIDAI) for integration with AAs and DFS to monitor and encourage
Aadhaar validation and fetching of customer details, adoption of AA by PSBs. SIDBI developed a product “GST
National E-Governance Services Ltd (NeSL) for digital Sahay”, which, is an application for invoice-based
documentation, Goods and Service Tax (GST) data for financing for small business that is real time, cash flow
digital access to access GST returns of applicant, based and end to end digital. RBI has approved on
Protean eGov Tech nologies Limited f or PAN 6.6.2022 SIDBI’s application for testing GST Sahay.
verification, Central Board of Direct Taxes (CBDT) for Pending integration of GSTN with AA, the GST Sahay
Income verification, Local Government Directory (LGD) App used GSPs (GST Suvidha Providers) to access GST
for geographical location mapping etc. for locating nearest data.
lending institution; and UDYAM integration for UDYAM
Aadhaar registration details. Data sharing by these 2.6.2 Account Aggregator Framework
entities with banks is done through ‘Jan Samarth’ Portal
 Account Aggregator is a Non-Bank Finance
which enables validation of data provided by the
Company (NBFC) engaged in the business of providing
beneficiary and facilitate faster processing by the lenders.
the service of retrieving or collecting financial information
13 Credit-Linked Government Schemes have pertaining to the customer. No financial information of
already been onboarded on ‘Jan Samarth’, including the customer is retrieved, shared or transferred by AA
241
without the explicit consent of the customer. AA transfers  More than 1.1 billion bank accounts are eligible
data from one financial institution to another based on to share data on AA
an individual’s instruction and consent. In this direction,
 2.74 million users have linked their Accounts on
RBI has issued the Master Direction viz Non-Banking
the AA framework.
Financial Company (NBFC) – Account Aggregator
(Reserve Bank) Directions, dated September 02, 2016.  2.62 million users successfully share data via AA.
 Entities may enrol themselves on AA framework Source: sahamati.org.in
as Financial Information Provider (FIP) viz. banking
2.7. International Trade Settlement in Indian
company, non-banking f inancial company, asset
Rupees (INR)
management company, depository, depository participant,
insurance company, insurance repository, pension fund The Reserve Bank of India (RBI) has allowed
etc. and as Financial Information User (FIU) which is an invoicing and payments for international trade in Indian
entity registered with and regulated by any financial sector Rupees vide A.P (DIR Series) Circular No. 10 RBI/2022-
regulator. At present, RBI has granted Certificate of 2023/90 dated 11.07.2022 on “International Trade
Registration to six companies as AA Settlement in Indian Rupees (INR)”.
 The RBI Circular broadly provides guidelines on The broad framework for cross-border trade
Process of Registration, Consent Architecture, Data transactions in INR under the Foreign Exchange
Security, Technical Specifications, Sharing of Financial Management Act, 1999 (FEMA) has been delineated by
Information by Financial information Providers and Use RBI in the said Circular dated 11.07.2022. The Circular
of information by Account Aggregator and Financial lays down that all exports and imports under the
Information User. arrangement may be denominated and invoiced in Rupee
2.6.3 Initiatives (INR), the exchange rate between the currencies of the
two trading partner countries may be market determined,
DFS has conducted series of meetings to review and the settlement of trade transactions under the
the progress of app for invoice-based lending and status arrangement shall take place in INR in accordance with
of Account Aggregator with all PSBs, all Public Sector the procedure laid down in the Circular. RBI has put in
Insurance Companies (PSICs), NABARD, DoR, DEA, place the arrangement for invoicing, payment, and
GSTN, SIDBI, IRDAI, RBI, PFRDA, major Private sector settlement of exports / imports in INR in order to promote
Life Insurance companies, CDSL, NSDL & Sahmati growth of global trade with emphasis on exports from
Foundation. Latest meeting was held on 12.12.2022, India and to support the increasing interest of global
wherein Reserv e Bank of India (RBI), Insurance trading community in INR.
Regulatory and Development Authority of India (IRDAI)
and Pension Fund Regulatory and Development Authority The framework put in place by RBI for allowing
(PFRDA) were requested to accelerate scale-up of the invoicing and payments for international trade in INR is
AA ecosystem. GST SAHAY app which is based on GST applicable for any partner country seeking to undertake
invoices will be made operational after GSTN integration. trade with India in INR in terms of RBI’s Circular dated
Regular reviews at DFS conducted with latest progress 11.07.2022. In terms of Para 10 of RBI’s Circular, the
on AA as below: approval process is that for opening of Special INR Vostro
accounts, banks of partner countries may approach
 RBI vide circular dated November 23, 2022 has Authorized Dealer (AD) banks in India which may seek
included Goods and Service Tax Network approval from RBI with details of the arrangement
(GSTN) as a FIP under AA framework.
3. Financial Inclusion
 26 Financial Institutions have gone live as FIPs,
including all 12 PSBs, 10 Private Sector Banks, 3.1 Pradhan Mantri Jan Dhan Yojana (PMJDY)
1 Small Finance Bank, 3 Lif e Insurance
With a view to increase banking penetration, promote
Companies
financial inclusion and to provide at least one bank
 96 Financial Institutions have gone live as FIUs, account per household across the country, a National
75 RBI Regulated, 10 SEBI Regulated, 9 IRDA Mission on Financial Inclusion (FI) known as Pradhan
regulated entities, 2 PFRDA regulated entities. Mantri Jan Dhan Yojana (PMJDY) was announced on
242
15thAugust, 2014. The Scheme was formally launched Guarantee Fund for coverage of defaults in overdraft
on 28th August, 2014 at National level by the Hon’ble Prime accounts and unorganised sector pension schemes like
Minister. Comprehensive financial inclusion of the Swavlamban.
excluded sections was proposed to be achieved by 14th
c) Extension of PMJDY
August, 2018 in 2 phases as under:
PMJDY has been extended beyond 14.8.2018
a) Phase I (15th August, 2014 - 14th August, 2015)
with the focus on opening of accounts shifting from “every
Universal access to banking facilities in all areas, household” to “every unbanked adult” and making the
except those with infrastructural and connectivity scheme more attractive with upward revision in: -
constraints and providing basic banking accounts and
 OD limit from Rs.5,000 to Rs.10,000;
RuPay Debit card with inbuilt accident insurance cover
of Rs. 1 lakh and organizing Financial Literacy  accident insurance cover on RuPay card holders
Programme. from Rs.1 lakh to Rs.2 lakh;
b) Phase II (15th August, 2015 - 14th August, 2018)  age limit for availing OD facility revised from 18-
60 years to 18-65 years and
Overdraft (OD) facility up to Rs. 5,000 after six
months of satisfactory operation/history. Creation of Credit  no conditions attached for OD up to Rs. 2000.
Performance of PMJDY
Major achievements of PMJDY are as under:
(Numbers in Crore)
Breakup by Gender Breakup by Geography Deposits in PMJDY

PMJDY Accounts
Accounts No of No of No of (in Rs. crores)
As on (in crore) PMJDY PMJDY No of PMJDY
PMJDY
Accounts Accounts Accounts
Accounts
(Male) (Female) (Urban/Metro)
(Rural/Semi
Urban)
March'15 14.72 7.15 7.39 8.68 5.86 14,641
March'16 21.43 10.37 11.05 13.17 8.26 35,672

March'17 28.17 13.67 14.49 16.87 11.3 62,972
March'18 31.44 14.85 16.60 18.52 12.92 78,494
March'19 35.27 16.53 18.74 20.90 14.37 96,107
March'20 38.33 17.85 20.48 22.63 15.70 1,18,434
March’21 42.20 18.82 23.38 27.85 14.35 1,45,551
March’22 45.06 19.98 25.08 30.07 14.99 1,66,459
As on
47.57 21.17 26.40 31.74 15.83 1,76,912
30.11.2022
 A total of 47.57 crore Jan-Dhan accounts have been opened till 30.11.2022 under PMJDY, with a deposit
balance of Rs.1,76,912 crores. The average deposit balance is approx. Rs.3719 per PMJDY account.
 There are 26.40 crore (55.5%) women Jan-Dhan account holders, with about 31.74 crore (66.7%) accounts
opened in rural and semi-urban areas.
 Approximately 32.43 crore RuPay cards with an inbuilt accidental insurance of Rs.2 lakh (Rs.1 lakh for
accounts opened before 28.08.2018) coverage has also been provided to PMJDY account holders.
 Out of total operative accounts opened under PMJDY, 85.1% have been seeded with Aadhaar number of
the account holder on user consent basis, which has enabled interoperable and immediate Aadhaar based
transactions, including for Direct Benefit transfer (DBT) through Aadhaar Payment Bridge.
243
3.2 Banking Touch Points:

3.2.1 The strength of bank branches and ATMs has been augmented over the years as indicated below:
Table 1: Number of bank branches of Scheduled Commercial Banks:
RURAL SEMI-URBAN URBAN METROPOLITAN TOTAL
31.03.2017 49,860 38,931 25,103 26,530 1,40,424
31.03.2018 50,860 39,616 25,458 26,536 1,42,470

31.03.2019 51,609 41,031 26,399 27,157 1,46,196
31.03.2020 52,382 42,213 27,318 28,133 1,50,046
31.03.2021 52,651 42,441 27,446 28,055 1,50,593

31.03.2022 53,204 42,443 27,433 28,181 1,51,261
30.06.2022 53,292 42,514 27,455 28,132 1,51,393
30.09.2022 53,372 42,685 27,565 28,275 1,51,897
Source: RBI
Table 2: Number of ATMs of Scheduled Commercial Banks (SCBs), Small finance Banks (SFBs), Payment Banks
(PBs) and White Label ATM Operators.
As on Off-site ATMs* On-site ATMs Total ATMs*

31.03.2016 110111 101950 212061
31.03.2017 112666 109809 222475
31.03.2018 115471 106776 222247
31.03.2019 115323 106380 221703
31.03.2020 121086 113271 234357
31.03.2021 122983 115605 238588
30.09.2021 125220 115762 240982
31.03.2022 129766 116794 246560
30.09.2022 131713 120236 251949
Source: RBI
* includes ATMs deployed by White Label ATM Operators

• The number of card acceptance devices of Point of Sale (POS) has increased from10.7 lakh in
March 2014 to 73.51 lakh in November 2022.
3.3 Jan DhanDarshak App data uploaded by the banks on JDD app, out of the 5.54
lakh (5,53,804) mapped villages on the app, 5.54 lakh
A mobile application, has been launched to (5,53,572) (99.96%) villages are having branch or BC
provide a citizen centric platform for locating banking
within a distance of 5 kilometres.
touch points such as bank branches, ATMs, Bank Mitras,
Post Offices, etc. in the country. The web version of this 3.4 Jan-Dhan Aadhaar Mobile (JAM)
application could be accessed at the link http://
findmybank.gov.in. Banks/ IPPB have been provided login A Jan Dhan Aadhar Mobile (JAM) pipeline has
credentials to upload the GIS location of their branches, been laid for linking of Jan-Dhan account with mobile
Business Correspondents and ATMs on the app. number and Aadhaar. This infrastructure pipeline is
providing the necessary backbone for DBT flows,
As per JDD app, as on Nov’22, there are 1.68 adoption of social security/ pension schemes, facilitating
lakh branches, 6.92 lakh BCs (including IPPB-BCs) and credit flows, promoting digital payments, etc. It has
2.17 lakhs ATMs mapped by the banks. Further, as per provided the much-needed support for accelerating the
244
pace towards achieving a digitalised, financially inclusive coverage under the Scheme is for Rs. 2 lakhs in case of
and an insured society. The instant transfer of Direct accidental death or total permanent disability and Rs. 1
Benefits under various Government Schemes has been lakh for partial permanent disability due to accident at a
made possible through the JAM pipeline. premium of Rs. 20/- per annum which is to be deducted
from the account holder’s bank / Post office account
3.5 Digital Banking Units
through ‘auto-debit’ facility.
The Hon’ble Prime Minister dedicated 75 Digital
Banking Units (DBUs) in 75 districts of the country to Key reforms in the implementation of schemes
commemorate the 75 years of independence of our PMJJBY and PMSBY:
country(Azadi ka Amrit Mahotsav) on 16.10.2022. These  Enrolment and claim forms for PMJJBY and
DBUs set-up by 24 banks including Public, Private Sector PMSBY have been modified with a view to
and Small Finance Bank, cover all the States and Union minimise pendency and ensure benefits to rightful
Territories of the country. The DBUs are to assist those claimants at the earliest
who are not tech savvy to adopt digitalbanking and
wherein the products and services will be offered to  Mobile number, email id and age of the nominee
customers in 2 modes: Self Service Mode and Digital (or the appointee of a minor nominee) are now
Assistance Mode. captured and in the event of an unfortunate
incident, nominees are proactively informed of
Services being offered through DBU include
the benefit available and the claim process in
banking facilities like opening of savings account,
balance-check, print passbook, transfer of funds, English and regional language.
investment in fixed deposits, loan applications, stop-  Waiting period under PMJJBY has been reduced
payment instructions for cheques issued, application for from 45 days to 30 days with effect from 1st June
credit/debit cards, view statement of account, paytaxes, 2021
paybills,make nominations,etc. The DBUs will also
facilitate on boarding to Government credit link Schemes  Banks have been requested to identify from their
through the Jan Samarth portal and end-to-end digital core banking solution (CBS), the existing
processing of a small ticket MSME/retail loans. Total subscribers who did not have sufficient balance
interv entions in 75 DBUs during the period 16 th in their accounts as on 31.5.2022 to enable auto
October’2022 to 15th November 2022 have been more debit of their premium and to inform them by SMS
than 2.18lakh and further increased to more than 7.77 / email about the revision in premium rates.
lakh, till December, 2022. As on December, 2022, 83
DBUs have now been operationalised.  The documents have been prescribed for claim
settlement procedure on an ongoing basis.In view
4 Key Schemes of the pandemic, in addition to Death Certificate
4.1 Pradhan Mantri Jeevan Jyoti Bima Yojana as proof of death or cause of death, several other
(PMJJBY) — The Scheme is available to people in the documents were made as valid proof (up to
age group of 18 to 50 years having a bank / Post office 30.11.2021 or till further revision, whichever was
account who give their consent to join / enable auto-debit. earlier). Banks forward the claim documents
Risk coverage under this Scheme is for Rs. 2 lakhs in electronically to their partner Insurer (s) through
case of death of the insured, due to any reason at an designated app to enable expeditious claim
annual premium of Rs. 436/- which is to be auto-debited settlement within 14 days
from the subscriber’s bank / Post office account.
 Banks/ post office to forward claim documents
4.2 Pradhan Mantri Suraksha Bima Yojana (PMSBY) — electronically to their partner insurer’s designated
The Scheme is available to people inthe age group of 18 app / email id within seven days of submission
to 70 years with a bank / Post office account who give of the claim and insurers to settle claims within
their consent to join / enable auto-debit facility. The risk 7days of receipt of claim documents.
Progress as on 30.11.2022 is as under:
Scheme Eligibility Premium Cumulative Claims Claims amount Settlement

(Yrs) (p.a) Enrollments (crore) Paid (crore) Ratio(%)
PMJJBY 18 to 50 Rs 436 14.43 6,27,817 Rs.12,556.34 98.32%
PMSBY 18 to 70 Rs 20 31.31 1,07,062 Rs.2125.56 99.93%
245
 In view of adverse claim experience of the PMJJBY and PMSBY, following changes have been made in
the rules:
o Premium rates have been revised as follows:
Schemes Premium per annum per subscriber

Existing Revised
PMJJBY Rs.330 Rs.436
PMSBY Rs.12 Rs.20
o A grace period of thirty days from the due date of renewal of PMJJBY and PMSBY i.e. up to 30th
June, 2022, has been allowed for debit of enhanced premium from the accounts of subscribers.
4.3 Pradhan Mantri Mudra Yojana (PMMY) Category-wise break-up is as under:
The Scheme was launched on 8th April 2015 for Category Percentage as per Percentage as
financing income-generating small business enterprises No .of Loans per Amount
in manufacturing, trading and service sectors, including Sanctioned
activities allied to agriculture such as poultry, dairy, Shishu 85% 41%
beekeeping, etc. Under PMMY, both Term loan and Kishore 13% 35%
Working Capital requirements can be met. Loans under Tarun 2% 24%
PMMY are extended through MLIs viz; Banks, Non-
Total 100% 100%
Banking Financial Companies (NBFCs) & Micro Finance
Institutions (MFls).
4.4 Stand Up India Scheme(SUPI)
a) Categories: Shishu — upto Rs. 50,000/-, Kishore
— above Rs. 50,000/- and up to Rs.5.00 lakh, The Stand Up India Scheme launched on 5thApril,
Tarun —above Rs.5.00 lakh and up to Rs.10.00 2016 aims to promote entrepreneurship among the
lakh; Scheduled Caste/ Scheduled Tribe and Women by
facilitating bank loans of value between Rs.10 lakh and
b) No insistence on collateral(s); Rs.1 crore to at least one SC/ ST borrower and one
woman borrower per bank branch of Scheduled
c) A Credit Guarantee Fund for Micro Units
Commercial Banks for setting up greenfield enterprises
(CGFMU) was set up for guaranteeing loans
in trading, manufacturing and services sector. In 2019-
extended to eligible micro units under Pradhan
20, the Stand Up India Scheme was extended for the
Mantri Mudra Yojana (PMMY) by Member
entire period coinciding with the 15th Finance Commission
Lending Institutions (MLls) and Overdraft loan
period of 2020-25. Pursuant to an announcement made
amount sanctioned under Pradhan Mantri Jan by the Union Finance Minister in the Budget speech of
Dhan Yojana (PMJDY) accounts. From FY 2020- FY 2021-22, the following changes have been made in
21 onwards, loans sanctioned to Self Help the Stand Up India Scheme: -
Groups (SHGs) between Rs.10 lakh to Rs. 20
lakh would also be eligible for coverage under a) The extent of margin money to be brought by
CGFMU. The National Credit Guarantee Trustee the borrower has been reduced from ‘upto 25%’ to ’upto
Company Ltd. (NCGTC), a wholly-owned 15%’ of the project cost. However, the borrower will
company of Government of India, constituted continue to contribute at least 10% of the project cost as
under the Companies Act, 1956 (2013) is the own contribution. The Scheme envisages ’upto 15%’
trustee of the Fund. margin money which can be provided in convergence
with eligible Central/State schemes;
d) As on 31.10.2022 the sanction amount covered
under live guarantee is Rs.1.80 lakh crore. b) Loans for enterprises in ‘Activities allied to
agriculture’ e.g. pisciculture, beekeeping, poultry,
As on 25.11.2022, more than 37.76 crore loan livestock, rearing, grading, sorting, aggregation agro
accounts amounting to Rs. 21.02 lakh crore have been industries, dairy, fishery, agriclinic and agribusiness
sanctioned since the launch of Scheme. Out of this, about centres, food & agro- processing, etc. (excluding crop
68% loans hav e been sanctioned to W omen loans, land improvement such as canals, irrigation, wells)
Entrepreneurs and 51% loans have been sanctioned to and services supporting these, shall be eligible for
SC/ST/OBC category of borrowers. coverage under the Scheme.
246
As on 28.11.2022, a total number of SCs/STs and Women borrowers benefited under the Stand-Up India
Scheme are as under.
(Amt. in Rs. crore)
SC ST Women (General) Total
No of Sanctioned No of Sanctioned No of Sanctioned No of Sanctioned
A/Cs Amt. A/Cs Amt. A/Cs Amt. A/Cs Amt.
23,554 4928.03 7718 1661.22 127165 29297.69 158437 35886.94
4.5 Regional imbalances: Focused attention beneficiaries on the Digital Payment Platforms and to
promote transactions by the beneficiaries, cash back up
Special focus is being given to 112 Aspirational
to Rs. 1,200 per annum is available under the Scheme.
Districts (ADs) wherein a Targeted Financial Inclusion
Interest subsidy @ 7% per annum is to be paid on quarterly
Intervention Program (TFIIP) program has been launched
to improvethe performance of these Districts under basis on timely or regular repayment of all loans (1st, 2nd
Financial Inclusion (FI) parameters. Departmentis also and 3rd tranche) disbursed till December, 2024.
working on ‘Mission Utkarsh’ to improve the performance As on 27.11.2022, a total of 42.92 lakh loan
of 10 selected Districts which are lagging behind on FI applications have been sanctioned in all tranches together,
parameters. out of which 37.47 lakh applications have been disbursed.
4.6 PM Street Vendor ’s Atmanirbhar Nidhi 5. Agriculture Credit
Scheme (PMSVANidhi)
In order to boost the agriculture sector with the
The scheme is a Central Sector Scheme
help of effective and hassle-free agriculture credit, the
implemented by Ministry of Housing and Urban Affairs
(MoHUA), with the objective of providing relief to street Government has been fixing annual targets for ground
vendors affected by Covid-19 lockdown. The Scheme, level agriculture credit by Scheduled Commercial Banks,
launched on 01 June, 2020 and valid till 31.03.2022, has Regional Rural Banks (RRBs) and Cooperative Banks.
now been extended till 31.12.2024. DFS is facilitating Year wise position of target and achievement
MoHUA in smooth implementation of the scheme which under agricultural credit flow for the last seven years and
envisages empowering street vendors by not only current year given below indicates the sustained trend of
extending loans to them but also for their holistic
actual disbursement, surpassing the incremental annual
economic development.
targets year after year. As against the annual target of
The Scheme has provision for collateral free Rs.16.50 lakh crore for 2021-22, agriculture credit to the
working capital loan up to Rs. 10,000 for 12 months under tune of Rs.18.63 lakh crore was disbursed, registering
1st tranche, up to Rs. 20,000 for 18 months under 2nd 113% achievement. Agriculture credit target for year 2022-
tranche and upto Rs.50,000 for 36 months under the 3rd 23 has been set at Rs. 18.50 lakh crore with a sub-target
tranche. On timely/early repayment, the vendors will be of Rs. 1.26 lakh crore for Animal Husbandry, Dairying
eligible for the next cycle of working capital loan with an and Fisheries farmer. As on 31st December 2022, Rs.
enhanced limit. No penalty is payable on early repayment 13.75 lakh crore was disbursed (Provisional) against
of the loan. The Scheme facilitates free on boarding of target of 18.50 lakh crore registering 74 % achievement.
The Agriculture targets and achievements
Source: ENSURE Portal of NABARD (Rs.crore)
247
5.1 Kisan Credit Card contributed by Commercial Banks, Foreign Banks,

Regional Rural Banks and Small Finance Banks in a
The Kisan Credit Card (KCC) scheme was proportion indicated by RBI, with respect to banks’
introduced in 1998-99, as an innovative credit delivery shortfall in priority sector lending. The fund which started
mechanism that aims at adequate and timely credit as a “last mile approach” to facilitate completion of
support from the banking system to the farmers for their ongoing irrigation, flood protection and watershed
cultivation needs including the purchase of inputs in a management projects during 1995-96, today covers as
flexible, convenient, and cost-effective manner. Banks many as 39 activities, broadly classified under three
have been advised to issue Kisan Credit Cards (KCC) to categories, viz., (i) Agriculture and related sector (ii) Social
all eligible farmers. The KCC Scheme has since been Sector and (iii) Rural Connectivity. The annual allocation
simplified with facilities like one-time documentation, built- of funds towards RIDF has gradually increased from Rs.
in cost escalation in the limit and facility of ATM enabled 2,000 crore in 1995-96 to Rs. 40,000 crore in 2022-23.
debit card etc. Under the present guidelines of KCC, the
limit is sanctioned for 05 years and the beneficiaries have The cumulative funding commitment, as on
ease and flexibility in withdrawl and repayment. 30.11.2022 to 31 States/UTs stood at Rs. 4.72 lakh crore
(including Bharat Nirman) against which Rs. 3.67 lakh
GoI has approved interest subvention @ 1.5% crore have been disbursed as of 30.11.2022. Over the
on short term loans for agriculture and allied activities years, RIDF has emerged as a dependable source of
which is available on an overall limit of Rs. 3 lakh per public funding of impactful rural projects. Of the total RIDF
annum and subject to a maximum sub-limit of Rs. 2 lakh loans sanctioned to State Governments under various
per farmer involved in allied activities related to Animal tranches since 1995-96, 27% accounted for rural roads,
Husbandry, Dairy, Fisheries, Bee Keeping etc. within the 31% for irrigation, 20% for social sector, 12% for
prescribed limit of Rs. 3.00 lakh availed through Kisan agriculture sector (other than irrigation) and 10% for rural
Credit Card (KCC) for the F.Y. 2022-23 and 2023-24. An bridges.
additional interest subvention of 3% is provided to farmers
on prompt repayment of loans, which effectively reduces 5.3 Sho rt Term Co operative Rural Credit
the rate of interest to 4%. (Refinance) Fund
As announced in PM Atmanirbhar Bharat The Short Term Cooperative Rural Credit-
package, over 3.86 crore farmers have been covered STCRC (Refinance) Fund was set up in NABARD in
under the ongoing KCC saturation drive effective from 2008-09 with an initial corpus of Rs.5,000 crores to
February, 2020 with sanctioned credit limit of about Rs. provide Short Term refinance to Cooperative Banks so
4.47 lakh crore as on 16.12.2022. At present, there are as to ensure increased and uninterrupted credit flow to
7.13 crore operativ e KCC accounts with a total farmers at concessional rate of interest. NABARD
outstanding loan of Rs.9.38 lakh crore. provides refinance to Cooperative bank at an interest rate
While ensuring convenient and cost-effective of 4.5 % per annum for crop loans up to Rs.3.00 lakh
credit delivery to farmers, the ongoing campaign will be disbursed by cooperative banks at an interest rate of 7%
instrumental in driving the rural economy and further per annum to ultimate borrowers. An allocation of
accelerating agricultural production and allied activities, Rs.50,000 crores (Rs.50,002.23 crores, including residual
besides enhancing the income level of farmers. allocation of earlier years) has been made for the STCRC
(Refinance) Fund during 2022-23. As on 30.11.2022, Rs.
The facility of KCC has been extended to animal 24,833.17 crores have been utilised out of STCRC
husbandry and fisheries farmers in year 2019 to help them (Refinance) Fund during 2022-23.
meet their working capital needs. Further, in order to cover
animal husbandry and fisheries farmers, under KCC, 5.4 Short Term Regional Rural Bank (Refinance)
special saturation drive in the form of weekly “District- Fund
level Camp” was launched w.e.f. 15th November, 2021
for ensuring convenient and cost-effective credit delivery The Short Term Regional Rural Bank (Refinance)
to the farmers and accelerating agriculture output. The (STRRB) Fund was set up with an allocation of Rs.10,000
campaign has been extended up to 15th March, 2023. crores in 2012-13, so as to enable NABARD to provide
Short Term refinance to RRBs to meet their crop loan
5.2 Rural Infrastructure Development Fund lending obligations. NABARD provides refinance to RRBs
(RIDF) at an interest rate of 4.5 % per annum for crop loans up to
In the backdrop of declining public investment in Rs.3.00 lakh disbursed by RRBs at an interest rate of 7%
agriculture and rural infrastructure, RIDF was instituted per annum to ultimate borrowers. The allocation under
in NABARD during 1995-96 with an initial corpus of STRRB Fund was at Rs.15,000 crores (Rs.15,000.49
Rs.2,000 crore with the main objective of providing loans crores, including residual allocation of earlier years) during
to State Governments for completing ongoing rural 2022-23. As on 30.11.2022, Rs.7,341.02 crores have been
infrastructure projects. Resources to the fund are utilised out of STRRB (Refinance) Fund during 2022-23.
248
5.5 Long Term Rural Credit Fund (LTRCF): 5.7.2 Pradhan Mantri Awaas Yojana- Gramin
(PMAY-G)
This fund has been set up for the purpose of
providing long term refinance support to Cooperative The Government of India through the Ministry of
Banks and Regional Rural Banks for their lending towards Rural Development launched ‘Pradhan Mantri Awaas
investment activities in agriculture with a view to provide Yojana- Gramin’ (PMAY-G) on 1st April, 2016, with an
a fillip to capital formation in the sector. Government has objective to ensure “Housing for All” by 2022. A total of
allocated Rs.15,000.75 crores to this fund (including 2.95 crore houses are to be constructed under PMAY-G.
residual allocation of earlier years) during 2022-23. As During 2017-18 to 2020-21, NABARD has extended loans
on 30.11.2022, Rs.7,496.69 crores has been utilised out to National Rural Infrastructure Development Agency
of LTRCF during 2022-23. (NRIDA), a SPV of GoI, towards part funding of Central
share under the Scheme. The cumulative sanction and
5.6 Strengthening the Capital Base of NABARD release under PMAY - G as on as on 30th November 2022
stood at Rs.61,975 crores and Rs.48,819.03 crores,
NABARD Amendment Act, 2018 has been respectively.
notified on 19th January, 2018 which empowers the
Government to increase the authorised capital of 5.7.3 Swachh Bharat Mission – Gramin (SBM-G)
NABARD from Rs.5,000 crores to Rs.30,000 crores and The Government of India through the Ministry of
to increase it beyond Rs.30,000 crores in consultation Jal Shakti (earlier Ministry of Drinking Water & Sanitation),
with RBI as deemed necessary from time to time. This launched SBM-G on 2nd October, 2014 with the goal to
will enable NABARD to potentially increase its borrowing achieve universal sanitation coverage in rural areas by
in future for funding the large investments being made in 2nd October, 2019. For the construction of around 3 crore
rural infrastructure in sectors like irrigation, housing, Individual House Hold Toilets, 1500 Community Sanitary
universal sanitation, dairy, fisheries, etc. Complexes and Solid & Liquid Resources Management
works during 2018-19, the total fund requirement towards
Government of India provides equity support to
Central Share was estimated at Rs.30,343 crores, out of
NABARD to enable it to fulfil its lending commitment under
which Rs.15,000 crores were to be raised through
various Government initiatives including the flagship borrowing from NABARD. During 2018-19 & 2019-20,
programmes i.e. PMAY-G, LTIF, MIF and Swacch Bharat NABARD has extended loans to National Centre for
Mission. Total paid up capital as on 30.11.2022 in respect Drinking Water, Sanitation & Quality (NCDWS&Q), a SPV
of NABARD is Rs.17,080 crores. of GoI, towards part funding of central share under the
5.7 Role of NABARD in Government of India scheme. As on 30th November, 2022, the cumulative
sanction and release by NABARD under SBM -G stood
Initiatives
at Rs.15,000 crores and Rs.12,298.20 crores
5.7.1 Long Term Irrigation Fund (LTIF) respectively.
The Government of India, through the Dept. of 5.7.4 Micro Irrigation Fund (MIF)
Water Resources, River Development and Ganga
Micro Irrigation Fund with a corpus of Rs.5,000
Rejuvenation, Ministry of Jal Shakti (earlier Ministry of
crore has been operationalized from 2019-20 in NABARD
Water Resources) has taken a major initiative to complete with an objective to facilitate State Govts. Efforts in
various stalled major/medium irrigation projects in the mobilizing additional resources for expanding coverage
country, for which a Long-Term Irrigation Fund (LTIF) was under micro irrigation and incentivizing its adoption
set up in NABARD. As on 30 November 2022, against beyond provisions of PMKSY-PDMC. The cumulative
the total estimated amount of Rs.77,595 crores for the sanction and release under MIF as on 30th November
99 identified projects, sanctions have been accorded by 2022 stood at Rs.4710.96 crores and Rs.2198.62 crores
NABARD under LTIF to the tune of Rs.71,219.54 crores. respectively. This will facilitate in expanding micro
Further, loan amount of Rs.11,217.71 crores has been irrigation to an area of 17.12 lakh ha. involving 13.06 lakh
sanctioned f or the Polav aram Irrigation project, farmers.
Rs.1,378.61 crores for North Koel Reservoir Project,
Rs.485.35 crores for Shahpurkandi Dam and Rs.826.17 6. Priority Sector Lending (PSL)
crores for Relining of Sirhind and Rajasthan Feeder under PSL guidelines are issued by the Reserve Bank
LTIF. The cumulative amount released against sanction of India for compliance by all Commercial Banks, RRBs,
of 99 identified projects stood at Rs.44,800.36 crores. SFBs, UCBs and LABs.The objective of priority sector
Similarly, for Polavaram Irrigation project, North Koel lending (PSL) has been, inter-alia, to ensure access to
Reservoir Project and Shahpurkandi Dam Project, credit to vulnerable sections of society and have adequate
cumulative releases stood at Rs.10,650.15 crores, flow of resources to those segments of the economy
Rs.721.22 crores and Rs.207.45 crores, respectively. which have higher employment generation potential and
249
help in making an impact on poverty alleviation. Thus, of lending to non-corporate farmers does not fall
the sectors that impact large sections of the population, below the system wide average of the last three
the weaker sections and the sectors which are years achievement which is separately notified
employment-intensive such as agriculture and micro and every year. The applicable target for lending to
small enterprises are part of the priority sector. the non-corporate farmers for FY 2022-23 is
6.1 With the objective of making the Priority Sector 13.78% of ANBC or CEOBE whichever is higher.
Lending norms more broad-based, the guidelines are 6.3 The outstanding priority sector advances of
reviewed from time to time to align them with the emerging Public Sector Banks was Rs. 25,38,507 crore as on March
national priorities. As a part of this process, the PSL 31, 2021 and Rs. 27,74,746 crore as on March 31, 2022.
guidelines have been revised in 2020. The revised Outstanding advances to agriculture by PSBs amounted
gui delines also aim to encourage and support
to Rs. 12,16,707 crore as on March 31, 2022 constituting
environment friendly lending policies/schemes and help
19.10 percent of ANBC of PSBs (Annex-I). For the
to achieve Sustainable Development Goals (SDGs).
quarter ended September 2022* total outstanding priority
6.2 Some of the salient features of the revised sector advances of public sector banks is Rs. 27,80,646
PSL guidelines are: crore and outstanding towards agriculture under priority
sector is Rs. 12,69,507 crore. (* Provisional figures as
a) To address regional disparities in the flow of
reported by banks to RBI.)
priority sector credit, higher weightage has been
assigned to incremental priority sector credit in 6.4 Education Loan
‘identified 184 credit deficit districts’ where priority
sector credit flow is comparatively low, and vice Every meritorious student should have access
versa. to bank credit to pursue higher education, if they so desire.
Indian Banks’ Association (IBA) had prepared the Model
b) The targets prescribed for “small and marginal Educational Loan Scheme and circulated to banks in the
farmers” and “weaker sections” are being year 2001. The Scheme is for all students including
increased from 8% to 10% & 10% to 12% students belonging to the economically weaker sections
respectively in a phased manner from 2021-22
and those below the poverty line. Indian Nationals who
to 2023-24.
have secured admission to a higher education course in
c) Credit to new sector like Compressed Bio Gas a recognised Institution in India or abroad through an
(CBG), Solar projects, credit for start-ups (up to entrance test/merit-based selection process are eligible
Rs.50 crore) engaged in Agriculture & allied for educational loans under the Scheme. The Scheme
activities and MSME have been made eligible has been modified from time to time keeping in view the
under PSL. changing needs of the students. The latest revision to
Model Educational Loan Scheme incorporating the
d) Higher credit limit has been specified for Farmers
Producers Organisations (FPOs)/Farmers changes suggested by the Department of Financial
Producers Companies (FPCs) undertaking services (DFS) was approved by the IBA Managing
farming with assured marketing of their produce Committee in its meeting held on January 15, 2021, for
at a pre-determined price. adoption and implementation by the member banks.
e) Credit limit has also been enhanced in case of 6.4.1 Service Area Norms for Education Loans- RBI
sector like renewable energy sector, Health guidelines
Infrastructure (including Ayushman Bharat) and
RBI has advised the Banks on 9th November,
education loan.
2012 that Service Area Norms are to be followed only in
f) In order to ensure greater flow of credit to the the case of Government Sponsored Schemes, circulated
f armers against pledge/hypothecation of vide their circular dated December 8, 2004 and are not
agricultural produce, and to encourage use of applicable to sanction of educational loans. Hence, banks
NWR/eNWR issued by warehouses registered do not reject any educational loan application for reasons
and regulated by Warehouse Development and that the residence of the borrower does not fall under the
Regulatory Authority, the PSL limit for loans bank’s service area.
against NWRs/eNWR has been increased from
Rs.50 lakh to Rs.75 lakh per borrower. 6.4.2 Performance of Education Loans
g) Target for lending to Non-Corporate Farmers for The details of total outstanding education loans
FY 2022-23 - All Domestic banks (other than of Public Sector Banks (PSBs) for FY 2020-21, FY 2021-
UCBs) and foreign banks with more than 20 22 and FY 2022-23 (ason 30.09.2022) stood at
branches are required to ensure that their share Rs.84,751.93 crores in 19,09,164 accounts.
250
Education Loan Outstanding Amount 7.2 Public Sector Insurers

Sr. No. Year Loan Outstanding The Public Sector Insurance Companies
(Rs. In crore) operating in the sector are as follows:
1 FY 2020-21 75,125/- (1) Life Insurance Corporation of India
2 FY 2021-22 78,544/- (2) General Insurance Corporation of India – GIC
3 FY 2022-23 84,752/- Re (Re-Insurer)
(01.04.22-30.09.22) (3) The New India Assurance Company Limited
Source: PSBs
(4) United India Insurance Company Limited
6.4.3 Vidya Lakshmi Portal
(5) National Insurance Company Limited
Vidya Lakshmi Portal is a first of its kind portal
(6) The Oriental insurance Company Limited
prov iding single window f or students to access
information and make application for Educational Loans (7) Agriculture Insurance Company of India Limited
provided by Banks. The Portal has the following features: – Specialised Insurer (Company floated by Public
Sector general insurance companies along with
a) Information about Educational Loan Schemes of NABARD)
Banks;
(8) ECG C Lim ited – Special ised Insurer
b) Common Educational Loan Application Form for (Government of India enterprise for export credit
Students; guarantee)
c) Facility to apply to multiple Banks for Education 7.3 Leg islative F ramew ork governing the
Loans; Insurance Sector
d) Facility for Banks to download Students’ Loan The Insurance Division is responsible for policy
Applications; formulation and administration of the following Acts:
e) Facility for Banks to upload loan processing (1) The Insurance Act, 1938
status;
(2) The Life Insurance Corporation Act, 1956
f) Facility for Students to email grievances/queries
(3) The General I nsurance Business
relating to Educational Loans to Banks; (Nationalisation) Act, 1972
g) Dashboard facility for Students to view status of (4) The IRDA Act, 1999
their loan application
(5) The Actuaries Act, 2006
h) Linkage to National Scholarship Portal for
information and application for Government The Government promulgated an Ordinance
Scholarships. namely - the Insurance Laws (Amendment) Ordinance,
2014 on December 26, 2014 to make amendments to
Banks have been requested to give wide publicity the Insurance Act, 1938, the General Insurance Business
to this Portal so that students needing education loans (Nationalization) Act, 1972 and the Insurance Regulatory
can apply for it and indicate their bank of choice. and Development Authority Act, 1999 in accordance with
the Insurance Laws (Amendment) Bill 2008 as reported
7. Insurance Sector by the Select Committee of the Rajya Sabha. The
7.1 Overview Ordinance was replaced by the Insurance Laws
(Amendment) Act, 2015. With the coming into force of
Insurance, being an integral part of the financial the Insurance Laws (Amendment) Act, 2015, the foreign
sector, plays a significant role in India’s economy. Apart investment cap in an Indian Insurance Company has gone
from protecting against mortality, property and casualty up from 26 per cent to 49 per cent with the safeguard of
risks and providing a safety net for individuals and Indian ownership and control.
enterprises in urban and rural areas, the insurance sector Recently, further amendment in the Insurance
encourages savings and provides long-term funds for Act 1938, was brought by promulgating the Insurance
infrastructure development and other long gestation (Amendment) Act, 2021 enacted on March 25, 2021 by
projects of the Nation. The development of the insurance which the Government has further enhanced the FDI cap
sector in India is necessary to support its continued from 49 per cent to 74 per cent with certain conditions in
economic transformation. the terms of Indian ownership and control.
251
New entrants in the insurance industry  Government of India bears the differential return,
i.e. the difference between return generated by
Since the opening up this sector for private and
LIC and the assured return committed under the
foreign investment in the year 2000, the number of
scheme as interest-gap subsidy on an annual
participants in the insurance industry has gone up from
basis.
sev en (7) insurers (including the Lif e Insurance
Corporation of India, four public sector general insurers,  Maximum Investment allowed is Rs 15,00,000.
one specialized insurer and General Insurance
Corporation as the national re-insurer) to sixty-seven (67)  Under the scheme, a loan of up to 75% of the
insurers as on March 31, 2022 operating in the life, purchase price is allowed after completion of
general, and reinsurance segments (including specialized three policy years.
insurers, namely Export Credit Guarantee Corporation  As per LIC a total number of 8,61,255 subscribers
Limited and Agricultural Insurance Company of India (No. of Policies 11,88,571) are being benefited
Limited). As on March 31, 2022, there are 24 Life insurers
under the scheme as on 30.11.2022.
including one in Public Sector, 32 general insurers
including four in public sector, two specialized insurers in  The Scheme is valid up to 31st March 2023
Public Sector, five Stand-Alone Health Insurers (SAHI)
and 12 reinsurers including one in Public Sector. 7.5 Insurance Industry Statistics
Reg istered In surers and Rein surers (As on Insurance Coverage

31.03.2022) Insurance coverage refers to the number of
Type of Public Private Total lives covered under insurance for life, health and other
Insurer Sector Sector insurance categories. The cumulative enrolments as
Life 1 23 24 on 28.12.2022 under PMJJBY is 14.82 crore and
PMSBY is 31.88 crore. In addition, as per IRDAI report
General 6 20 26 during 2021-22 the General & health insurance
Standalone Health - 5 5 companies have covered 52.04 crore lives under 2.26
crore health insurance policies. Personal Accident
Re-insurers 1 11 12 Insurance covered a total of 115.66 crore number of
Total 8 59 67 lives (including PMSBY, PMJDY and IRCTC e-ticket
passengers) and 19.09 lakh lives were covered under
7.4 Insurance related Social Security Schemes: Travel Insurance policies.
Apart from the two Social Security Schemes, Insurance Penetration and Insurance Density
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and
Pradhan Mantri Suraksha Bima Yojana (PMSBY) (for The measure of insurance penetration and
details please refer Key Schemes at para-4) the other density reflects the level of development of insurance
scheme related to insurance sector is as under: sector in a country. While insurance penetration is
measured as the percentage of insurance premium to
7.4.1 Pradhan Mantri Vaya Vandana Yojana:
GDP, insurance density is calculated as the ratio of
 Pradhan Mantri Vaya Vandana Yojana (PMVVY) premium to population (measured in US$ for convenience
is offered by the Life Insurance Corporation of of international comparison).
India (LIC) and supported by the Government of
India, to provide senior citizens of age 60 years Globally insurance penetration and density in
or more an assured minimum pension for a term 2021-22 were 3.0 per cent and USD 382 for the life
of 10 years, linked to the price at which they segment and 3.9 per cent and USD 492 for the non-life
purchase the pension policy. segment respectively.
India India Malaysia Thailand China

(2001-02) (2021-22) (2021-22) (2021-22) (2021-22)
Insurance 2.7 4.2 5.3 5.4 3.9
Penetration (%) (Life:3.20 % & Non-
Life: 1%)
Insurance 11.5 91 600 387 482
Density (US$)
252
Life insurance industry income of Rs.6.93 lakh crore during 2021-22 as against
Post liberalization period has witnessed sharp Rs.6.29 lakh crore in the previous financial year,
growth in the insurance industry, more particularly in the registering a growth of 10.16 per cent (9.74 per cent
life segment. Life insurance industry recorded a premium growth in previous year).
New business premium underwritten for Life Insurance Industry 2021-22
Market Share New Premium Total Premium Growth

Underwritten
LIC 63.18% 1.99 lakh crore 3.15 lakh crore 12.98%
Private Insurers 36.82% 1.16 lakh crore
(Data Source : IRDAI)
General insurance industry 22 as against Rs.1.99 lakh crore in 2020-21, registering

a growth rate of 11.06 per cent as against 5.19 per cent
The general insurance industry (including growth rate recorded in the previous year.
standalone health insurers) underwrote total direct
premium of Rs. 2.21 lakh crore in India for the year 2021-
Premium Growth Market Share

PSU 0.90 lakh crore 1.50 % 40.72 %
Private Insurers 1.31 lakh crore 8.12 % 59.28 %
One of the benefits of opening up of the insurance premium of the general insurance industry within India
sector has been the extension of health cover to a wider (including standalone health insurance companies) in
cross-section of the society. Health premium accounted 2021-22 (Rs. 63,752.97 crore constituting 32.08 per cent
for 36 per cent (Rs.80,502.27 crore) of the gross direct in 2020-21).
7.6 Investments of the Insurance sector
As on March 31, 2022 the accumulated total investments held by the insurance sector was:
Insurance Insurance Life Insurers Public sector Insurers
Sector Sector (2021-22) (2021-22)
(2021-22) (2020-21)
Total 54.37 49.13 91.09 % 72.19 %
investments lakh crore lakh crore of total investment of total investments
7.7 Rural and Social Sector Business
All the life insurers* including LIC have fulfilled their rural sector obligations for the year 2021-22.
Life Insurance Private Life Insurance LIC

Companies Companies
Rural Sector 64.97 lakh policies 26.98% of total policies 20.73 % of total policies
Obligations (22.32 %)
Total lives covered 4.03 crore (19.38%) 22.05 % of total policies 11.51 % of total policies
under Social sector.
(*M/s Sahara India Life Insurance Co. Ltd. is not considered for this obligation as it was directed by IRDAI not to
underwrite new business as per the IRDAI order dated June 23, 2017)
253
All the public and private sector general insurance dated 22.12.2003 to replace the defined benefit pension
companies including standalone health insurance system by defined contribution pension scheme in order
companies (SAHI) have fulfilled their obligations in the to provide old age income security in a fiscally sustainable
rural and social sector for the year 2021-22. The General manner and to channelize small savings into productive
insurers underwrote a premium of Rs. 28,282 crores in sectors of the economy through prudential investments.
the rural sector in the year 2021-22. Public Sector and It was made mandatory for all new recruits to the
private insurers underwrote 26.56 per cent and 73.44 per Government service (except armed forces) with effect
cent respectively of total gross premium procured in the from 01.01.2004, and has also been rolled out for all
rural sector. citizens with effect from 01.05.2009, on voluntary basis.
NPS has been adopted by most State Governments and
7.8 Micro insurance
most of the Central and State autonomous bodies.
Micro insurance being a low price-high volume Subsequently, with the passing of the PFRDA Act in 2013,
business, its success and sustainability depends mainly the contributory pension system notified by the said
on keepi ng t he transaction costs down. IRDAI notification dated 22.12.2003 has been deemed to be
(Obligations of insurers to Rural and Social sectors) 2015 National Pension System (NPS) w.e.f. 01.01.2004, in
promulgated under Section 32B and 32C of the Insurance accordance with Section 20(1) of the PFRDA Act, 2013.
Act, 1938 stipulate obligations of insurers in respect of The Scheme offers two types of accounts, namely Tier-I
rural and social sector, which has also contributed and Tier-II. The Tier-I account is the Pension account,
substantially to the development and promotion of micro while the Tier-II account is a voluntary withdrawable
insurance products in India. account which is allowed only when there is an active
Tier-I account in the name of the subscriber. Presently, a
IRDAI reviewed the Micro Insurance Regulations, Government employee under NPS has to mandatorily
2005 and notified IRDAI (Micro Insurance) Regulations, contribute 10% of pay and Dearness Allowance (DA) and
2015 permitting several more entities like RBI regulated 14% of pay and DA is contributed by the Government to
NBFC-MFIs, District Cooperative Banks, Regional Rural the employee’s Tier-I account. At exit on superannuation,
Banks, Urban Co-operativ e Banks, Business subscriber would be mandatorily required to invest at least
Correspondents (BCs), Primary Agricultural Cooperative 40% of the pension wealth in Tier-I to purchase an annuity
Societies (PACs) and other cooperative societies to be from an Insurance Regulatory and Development Authority
appointed as Micro Insurance agents facilitating better of India (IRDAI) regulated Insurance Company and a
penetration of Micro Insurance business. The Regulations maximum of 60% of the accumulated corpus in the Tier
also included additional policy holder protection measures. –I account is given to the individual in lump-sum. If the
In micro-insurance-life, the individual new subscriber exits before superannuation or 60 years of
business premium for the year 2021-22 was Rs. 297.14 age, he/ she has to invest at least 80% of the accumulated
crore through 8.77 lakh new policies and the Group new balance to purchase an annuity and the remaining 20%
business premium amounted to Rs. 6,048.88 crore can be withdrawn as lump sum. There are a number of
covering 1,320.73 lakh lives. There were 99,961 micro benefits available to the employees under NPS. Some of
insurance agents attached to life insurers at the end of the features are listed below:
FY 2021-22. Total number of general insurance policies a. Unbundled NPS Architecture:
issued by Micro Insurance Agents (excluding of
Standalone health insurers) were 1,40,696 in the year NPS architecture consists of Point of Presence
2021-22. (PoP) and aggregators as collection and distribution arms,
a Central Record keeping Agency (CRA) which maintains
IRDAI has permitted Pradhan Mantri Fasal Bima the data and records, Trustee Bank to manage the
Yojana (PMFBY) covering non-loanee farmers, to be banking operations, Pension Fund Managers (PFMs) for
solicited and marketed by Micro Insurance Agents under generating and maximizing returns on investments of
IRDAI (Micro Insurance) Regulations, 2015. Further, subscribers, Custodian to take care of the assets
general insurance policies issued to Micro, Small and purchased by the Fund managers and NPS Trust which
Medium Enterprises as classified in MSMED Act, 2006 holds the assets of subscribers for their benefit and
under various lines of general insurance business will oversees the investment operations.
also qualify as general Micro Insurance business upto
Rs.10,000 premium per annum per MSM enterprise. NPS has an unbundled architecture where each
intermediary has its own expertise and domain
8. Pension Sector knowledge. The Points of Presence (PoP), which are
8.1 National Pension System (NPS) authorized to open NPS accounts, receive contributions
from the subscribers and remit them to the Trustee Bank
The National Pension System (NPS) was (for government subscribers this function is carried out
introduced by the Government of India vide notification by the nodal offices) to the credit of the NPS Trust account
254
which holds the assets/ securities for the benefit of the v. Minimum 40% of the amount is to be
subscribers. mandatorily utilized for purchasing an
annuity from the Annuity Service Provider
The Pension Funds registered with PFRDA registered and regulated by the Insurance
manage pension corpus through various schemes under Regulatory and Development Authority and
National Pension System in accordance with the empanelled by PFRDA. Amount utilized for
provisions of the PFRDA Act, Rules and Regulations purchase of annuity is not taxable. Further,
made thereunder, agreements executed with the National amount utilised for purchase of annuity is
Pension System Trust and other intermediaries under exempted from GST.
NPS architecture.
(B) Tier II:
b. Provision for Partial withdrawal under NPS
i. Contribution by the Central Government
Subscribers can withdraw up to 25% of their own employees under Tier-II of NPS is now
contributions at any time before exit from NPS Tier-I for covered under Section 80 C of the Income
a maximum of three times during the entire tenure of Tax Act, 1961, for deduction up to Rs. 1.50
subscription under NPS for certain specified purposes lakh for the purpose of income tax at par
such as marriage of children, purchase of house, medical with the other schemes such as GPF, CPF,
treatment etc, after minimum of 3 years from the date of EPF, and PPF provided that there is a lock-
joining. in period of 3 years.
Tax Benefits presently available under NPS: (I) Freedom of choice for selection of Pension Funds
(A) Tier I: and pattern of investmentto Government employees
i. Subscriber is allowed an additional tax (a) Choice of Pension Fund: Vide Government
deduction of Rs. 50,000/- under section Notif ication dated 31.01.2019, the Gov ernment
80CCD 1(B) of the Income Tax Act, 1961, in subscribers are also allowed to choose any one of the
addition to the deduction of Rs. 1.50 lakhs pension funds including Private sector pension funds, as
allowed under section 80 CCD (1). in the case of subscribers in the private sector. They can
change their option once in a year. However, the current
ii. The mandatory contribution by the Central provision of combination of the Public-Sector Pension
Government for its employees covered Funds will be available as the default option for both
under NPS Tier-I has been enhanced from existing as well as new Government subscribers.
the existing 10% to 14% w.e.f 01.04.2019.
Some State Gov ernments hav e also (b) Choice of Investment pattern: The following
enhanced its contribution to 14% for its options for investment choices are offered to Government
employees. The additional 4% employer employees: -
contribution from the Central Government  Government employees who prefer a fixed return
and State Government will also be tax with minimum amount of risk have an option to
exempt under 80 CCD (2) invest 100% of the f unds in Gov ernment
iii. To ensure parity of tax treatment between securities (Scheme G).
NPS and various retirement products such  Government employees who prefer higher
as General Prov i dent Fund (GPF), returns have the options of the following two Life
Contributory Prov ident Fund (CPF), Cycle based schemes.
Employees Provident Fund (EPF) and Public
Provident Fund (PPF), the limit of tax (A) Conservative Life Cycle Fund with maximum
exemption under section 10(12A) of the exposure to equity capped at 25% at the age of
Income Tax Act, 1961, in respect of the 35 years and tapering off thereafter (LC-25).
amount withdrawn as lump sum to the extent (B) Moderate Lif e Cycle Fund with maximum
of 40% of the total accumulated balance has exposure to equity capped at 50% at the age of
been enhanced to up to 60% of the total 35 years and tapering off thereafter (LC-50).
accumulated balance at the closure of
account. With this, the entire withdrawal is The existing scheme in which funds are allocated
now exempt from income tax. by the PFRDA among the three Public Sector Undertaking
fund managers based on their past performance in
iv. Interim/ Partial Withdrawal from NPS Tier I accordance with the guidelines of PFRDA for Government
up to 25% of the contributions made by NPS employees will continue as the default scheme for both
subscriber is tax free. existing and new subscribers.
255
th
The status of NPS as on 30 November, 2022, is as under:
Sector No. of subscribers (in lakhs) Assets Under Management(in Rs Crores)

Central Government 23.43 2,45,259
State Government 59.29 4,21,996
Corporate 16.10 1,08,473
All Citizen Model 25.80 38,233
NPS Lite * 41.81 4,851
Total 166.43 8,18,812
*(No fresh registration permitted w.e.f 01.04.2015)
(II) Recent devel opments u nder NPS in APY is being administered by PFRDA under the
Government Sector overall administrative and institutional architecture of the
NPS. Currently, the Scheme is being distributed through
a) Notification of Central Ci vil Servi ces more than 269 active APY service providers including all
(Implementation of NPS) Rules, 2021: The banks and post offices.
CCS (Implementation of NPS) Rules, 2021, have
been notified by the Department of Pension and 8.2.1 The key features of APY are as under
Pensioners’ Welfare (DoPPW) on 30.03.2021 for
Central Government employees. The said Rules, a) APY is primarily focused on workers in the
inter alia, stipulate the timelines for PRAN unorganised sector, however, all citizens of
generation, contribution upload, deduction and the country in the eligible category may join
remittance, including exits and withdrawals and the scheme
also the provision for payment of interest on b) Any Indian citizen between 18-40 years of
delayed deposits of NPS contributions and age can join through their savings bank
fixation of the responsibility in case of delays in account or post office savings bank account.
subscriber registration and remitting of NPS
contributions. c) Minimum pension of Rs. 1000 or Rs. 2000
or Rs. 3000 or Rs. 4000 or Rs. 5000 is
b) Applicability of provisions of Gazette guaranteed by the Government of India to
Notification of Department of Financial the subscriber at the age of 60 years, with a
Services dated 31-01-2019 on employees of minimum monthly contribution (for those
Central Autonomous Bodies (CABs)- The joining at age 18) of Rs. 42 or Rs. 84 or Rs.
provisions of the notification dated 31.01.2019, 126 or Rs. 168 and Rs. 210, respectively.
regarding enhancement of employer contribution
to 14%, choice of the pension fund and d) After the subscriber’s demise, the spouse
investment pattern in the Tier I and payment of of the subscriber shall be entitled to receive
compensation in case of delayed or non-deposit the same pension amount as that of the
of NPS contributions for any period during 2004- subscriber until the death of the spouse.
2012, have been extended to the employees of
e) After the demise of both the subscriber and
CABs (covered under NPS) vide OMs dated the spouse, the nominee of the subscriber
26. 08.2021 and 21. 10.2021 i ssued by
shall be entitled to receive the pension
wealth, as accumulated till age 60 of the
8.2 Atal Pension Yojana (APY) subscriber.
Atal Pension Yojana (APY) was launched by the f) If the actual returns during the accumulation
Hon’ble Prime Minister on 9th May, 2015, and is being phase are higher than the assumed returns
implemented with effect from 1st June, 2015. The for minimum guaranteed pension, such
Scheme aims to provide monthly pension to eligible excess will be passed on to the subscriber.
subscribers not covered under any organized pension
g) The contributions can be made at monthly /
scheme. APY is open to all bank and post office account
quarterly / half yearly intervals through auto
holders in the age group of 18 to 40 years. Under this
debit facility from savings bank account/ post
Scheme any subscriber can opt for a guaranteed pension
off ice sav ings bank account of the
of Rs 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000 and Rs 5,000 subscriber. The monthly / quarterly / half
receivable at the age of 60 years. The contributions to be
yearly contribution depends upon the
made vary based on pension amount chosen and the
intended / desired monthly pension and the
age at time of enrolment.
age of subscriber at entry.
256
8.2.2. Category wise number of enrolments under Banks, State Level Bankers’ Committees
APY as on 30th November, 2022: (SLBCs) & LDMs for National, State and
District level focused promotion of APY
Category of Banks Number of Enrolments across the country.
Public Sector Banks 3,35,92,201 ii. APY Felicitation and Outreach programs at
Private Banks 32,28,182 20 locations have been held in which stake-
Small Finance Bank 1,29,803 holders from Banks at state/district-level
have participates.
Payments Bank 14,51,069
Regional Rural Banks 92,19,257 iii. Training programs are being organized, town
hall meetings, regular Strategy & Review
District Co-op Banks 70,116
Meetings are being conducted to increase
State Co-op Banks 6,439 pension literacy.
Urban Co-op Banks 25,356
iv. Several Central Ministries and State
Department of Posts 3,75,845 Governments have been approached to get
Total 4,80,98,268 their unorganized workforce like MNREGA
workers, Self Help Groups, Asha workers,
As on 30th November, 2022, the number of
subscribers under APY is more than 4.80 crore with Aanganwadi workers covered under APY.
contribution of Rs. 22,437 crore and AUM of Rs. 24,829 v. Periodical advertisements in the print and
crores. electronic media being issued and updates
8.3 Major measures/steps undertaken to increase posted in social media like YouTube, Twitter,
coverage under the Schemes: Facebook to create awareness about the
scheme.
(i) National Pension System
vi. Inf ormat ion about APY is being
(a) Expansion of NPS distribution channel: To disseminated through APY KI PATHSHALA
expand the NPS distribution channels the
YouTube channel.
following steps are being taken.
i. Individual agents are being engaged for NPS vii. Subscriber Awareness Program through VC
distribution through Points of Presence have been conducted for subscribers, field
(PoPs). staff, business correspondents of APY-SPs,
in coordination with an empanelled training
ii. Fintech companies like Paytm Money, ET agency.
Money, Funds India & Fisdom are being
engaged for NPS distribution. b) Engaging Fintechs and Banking Correspondents
(BCs) for widening the outreach
(b) Steps for pension literacy
i. PFRDA is engaging Payment banks like
i. Webinars/conference have been organized
Airtel Payment Bank and Small Finance
in association with various trade bodies, The
Federat ion of Indian Cham bers of banks to achieve larger enrolment
Com merce & I ndustry (FICCI), The ii. Engagement of BCs with suitable
Confederation of Indian Industry (CII) PHD incentivization is also helping in increasing
Chamber of Commerce and Industry outreach of the Scheme.
(PHDCCI), Merchants’ Chamber of
Commerce & Industry (MCCI). c) Updating of APY mobile App
ii. Financial literacy website has been hosted i. To enhance ease of availing v arious
(www.pensionsanchay.org.in) services, features such as account details,
(c) Publicity and media campaign viewing contribution made, the APY mobile
App have been updated.
i. Media campaign is being run by PFRDA by
engaging electronic media, print media and 8.4 Mechani sm pu t in place to measure
social media. development outcomes of major schemes/
programmes implemented through the
(ii). Atal Pension Yojana Department/ Division
a) Promotion and pension literacy
Under NPS, continuous engagements/ guidance/
i. Pension Fund Regulatory and Development training to PoPs and periodic review meetings of PoPs
Authority (PFRDA) is actively engaged with are undertaken by the Authority.
257
Under APY, daily MIS Data highlighting total implementing the scheme and other operational issues
number of enrolments of each APY SP and each state are taken up rigorously and reviewed at regular intervals.
and daily Average tracker highlighting performance with PFRDA monitors and supervises compliance
respect to allocated targets in terms of Average Account related parameters in respect of functioning of PoP-NPS,
Per Branch (AAPB) is obtained from CRA-NSDL for NPS-Lite and PoP-APY to ensure that subscribers’ interest
analysis of performance and review of the progress of is served. Further, PFRDA periodically conducts quarterly
the scheme. Similarly, the grievances faced by the review meetings with the Pension Funds to analyze their
subscribers, difficulties faced by the intermediaries in performance under NPS on various parameters.
8.5 Budget provisions earmarked under various schemes are as under:
Head BE 2022-23 RE 2022-23

(Proposed)
Atal Pension Yojana Payment of incentive Rs. 200.00 cr Rs. 180.00 cr
Atal Pension Yojana Promotional Campaign Rs. 0.01 cr Rs. 3.00 cr
Atal Pension Yojana Gap Funding 0.00 Rs. 542.00 cr
Swavalamban Scheme- Govt.co-contribution 0.00 Rs. 1.31 cr
8.6 Ini tiative taken wi th reference to the UbharteSitaare Programme (USP) aimed at offering
development of North- Eastern Region and future export champions, a combination of equity, debt
Sikkim including projects/ schemes in and technical assistance, to qualitatively and quantitatively
operation and actual expenditure thereon grow their exports under the programme.
Under NPS, the PoPs are advised to enroll As on November 30, 2022, the Bank has
subscribers in NPS across the country including the north sanctioned an aggregate amount of USD 2.99 billion for
east region. Several NPS webinars conducted for North 34 projects under Buyer’s Credit under National Export
East region in association with trade bodies and PoPs. Insurance Account (BC-NEIA). Two facilities aggregating
to USD 385.83 million sanctioned by the Bank are awaiting
Under APY, Zone wise review meetings are approval of Committee of Direction. As on November 30,
conducted PAN India for review of performance of APY 2022, under BC-NEIA, Bank has already disbursed USD
SPs, SLBCs/ UTLBCs with special emphasis on North- 102.28 million during current FY. The current outstanding
Eastern region by organizing regular meetings to popularize amount under BC-NEIA stands at USD 1.52 billion, which
the scheme, handholding sessions etc. Further, trainings will be utilised over the years. As regards Overseas
are imparted through webinars and offline mode to explain Investment Finance (OIF), during FY 2021-22, the Bank
the features and benefits of APY scheme. sanctioned funded and non-funded assistance aggregating
9. Financial Institutions Rs.1,719 crore to 12 Indian corporates for part financing
their overseas investments in 7 countries. From April to
9.1 Export -Import Bank of India (Exim Bank) November 30, 2022, funded and non-funded assistance
aggregated Rs.2,416 crore to 10 Indian corporates for part
Exim Bank has been established as a statutory,
financing their overseas investments in 6 countries. As
apex financial institution in 1982 under an Act of the on November 30, 2022, the Bank’s net loans and advances
Parliament of India, for financing, facilitating and stood at Rs.1,27,671 crore, while the non-fund portfolio of
promoting India’s international trade, for functioning as the Bank was at Rs. 15,971.27 crore. The total business
the principal financial institution for coordinating the portfolio of the Bank, which stood at Rs. 2,81,345 crore as
working of institutions engaged in financing export and on November 30, 2022, is estimated at Rs. 2,90,000 crore
import of goods and services with a view to promoting as on March 31, 2023.
the country’s international trade, and to function as a key
policy-input provider to the Government of India (GOI). 9.2 India Infrastructure Finance Company
Limited (IIFCL)
Exim Bank offers a comprehensive range of
lending and service / advisory programmes, aimed at IIFCL is a wholly-owned Government of India
aiding the globalisation efforts of Indian companies. This company set up in 2006 to provide long-term financial
enables the Bank to promote inclusion of a large cross- assistance to viable infrastructure projects. IIFCL has
section of Indian exporters, in the opportunities being been registered with the Reserve Bank of India as Non-
thrown up by globalisation. Exim Bank especially Banking Finance Company – Infrastructure Finance
distinguishes itself in the areas of Project Exports, Lines Company (NBFC-IFC) since September 2013. IIFCL has
of Credit (LOCs) and Overseas Investment Finance (OIF), set up three wholly-owned subsidiaries as under.
which benefit a gamut of externally oriented Indian
companies, including SMEs. The Bank has launched a) IIFC(UK)
258
b) IIFCL Asset Management Company Limited stakeholders. This co-ordination will be done to
(IAMCL) facilitate building and improving the relevant
c) IIFCL Projects Limited (IPL) institutions to support the development of long-
term non-recourse infrastructure financing in
The organization gives overriding priority to India i ncluding t he domest ic bonds and
Public-Private-Partnership (PPP) projects. IIFCL provides derivatives markets.
long term financing to viable infrastructure projects
through a product mix of Direct Lending (SIFTI), Takeout The Board of the Institution is functioning with
Finance, Refinance and Credit Enhancement. Taking its Chairperson (Shri K V Kamath), Managing Director (Shri
developmental role further, IIFCL has, in FY2021-22, Rajkiran Rai G), Deputy Managing Director (Shri B S
ventured into investment in Infrastructure Project Bonds Ventakesha & Ms. Monika Kalia), two Govt. Nominee
and lending to Infrastructure Investment Trusts (InvITs). Directors (Shri Pankaj Jain, Secretary, M/o PNG & Ms.
Sumita Dawra, Additional Secretary, DPIIT) and three
On a standalone basis, till 30th November, 2022,
IIFCL has made Cumulative Gross Sanctions of Independent Directors.
Rs.2,02,138 crore under Direct lending, Takeout Finance The NaBFID was set up with an authorised share
and Refinance scheme, InVITs and Investment in Bonds. capital of Rs. 1 lakh crore as per Budget Announcement
This includes Cumulative Gross Sanctions of Rs.1,08,939 of FY 2021-22. Capital support of Rs. 20,000 crore has
crore to 544 projects under Direct Lending. The Company been released to the Institution to enable it to start its
has made Cumulative Disbursements of Rs. 95,928 crore business operations. A grant of Rs. 5,000 crore has also
till November 2022, which includes Rs.28,915 crore under been released on 31.03.2022. NaBFID has disbursed its
Refinance and Rs.16,683 crore under Takeout Finance. first loan on 29.12.2022 amounting to 520 crore. The
9.3 National Bank for Financing Infrastructure expected credit pipeline for FY 2022-23 is Rs. 63,000 crore.
and Development (NaBFID) 9.4 National Housing Bank (NHB)
National Bank for Financing Infrastructure and The National Housing Bank (NHB) is a
Development is infrastructure focused development development financial institution, established in 1988,
financial institution (DFI) established in pursuance of under the National Housing Bank Act, 1987 (Central Act
announcement made in Union Budget 2021-22. The no. 53 of 1987). NHB operates as the principal agency to
Institution was established to support the development promote housing finance institutions and to provide
of long-term infrastructure financing in India. Reserve financial and other support to such institutions. NHB’s three
Bank of India (RBI) has advised that NaBFID shall be broad functions are Supervision of Housing Finance
regulated and supervised by RBI as an All India Financial Companies (HFCs), Financing and Promotion &
Institution (AIFI). Development. NHB provides finance to the housing sector
NaBFID has both financial and developmental through two windows namely Refinance and Project
objectives: Finance. NHB’s business includes refinancing individual
housing loans of HFCs, SCBs, Regional Rural Banks and
a) The financial objective of the Institution shall be Small Finance Banks (SFBs) and financing public agencies
to lend or invest, directly or indirectly and seek and public private partnerships for their housing projects.
to attract investment from private sector investors
and institutional investors, in infrastructure 9.4.1 Refinancing
projects with a view to foster sustainable Till 30.11.2022, National Housing Bank has
economic development in India.
disbursed cumulative refinance of Rs. 3,27,491 crore,
b) The developmental objective of the Institution out of which Rs. 33,254.13 crore has been disbursed
shall be to co-ordinate with the Central and State under Affordable Housing Fund. The details of refinance
Governments, regulators, financial institutions, activities undertaken by NHB during FY 2021-22 and
institutional investors and such other relevant FY2022-23 (till 30.11.2022) are as below:
(Rs. in crore)
FY2021-22 (01.07.2021 – 30.06.2022) FY2022-23 (01.07.2022 – till 30.11.2022)

Business
Groups Outstanding
Outstanding as on
Sanction Disbursement as on 30-06- Sanction Disbursement
30-11-2022
2022
Institutional
Finance
2,088.00 1,685.60 10,187.94 6,450.00 472.00 9,463.80
(Refinance) -
Banks
Institutional
Finance
20,242.00 17,627.27 63,744.72 21,885.00 5,514.56 62,530.78
(Refinance) -
NBFC (HFCs)
Total 22,330.00 19,312.87 73,932.65 28,335.00 5,986.56 71,994.58
259
9.4.2 Supervision  Bank projects further tentative sanctions

amounting to Rs.4,000 crores and tentative
 A stronger supervisory framework was put in
place with a dedicated Supervision Team. disbursements amounting to Rs.30,000 crores
during the period December, 2022 to March, 2023.
 Off-site supervision was strengthened with
introduction of Early Warning Signals (EWS) & 9.5 Small Industries Development Bank of India
Automated Data Flow (ADF) successf ully (SIDBI)
implemented at Top 20 HFCs covering 94%
business of HFCs. Small Industries Development Bank of India has
been established under an Act of the Parliament in April
 NHB actively engaged with RBI for a smooth and 02, 1990. SIDBI is mandated to serve as the Principal
seamless transition of regulation of HFCs to RBI. Financial Institution for executing the triple agenda of
9.4.3 Promotion & Development Promotion, Financing and Development of the Micro,
Small and Medium Enterprises and coordination of the
 During April 2022 to November 2022, NHB, as a functions of the various Institutions engaged in similar
Central Nodal Agency under PMAY-CLSS (U), activities.
disbursed subsidy amounting to Rs.2,290 crore
to 0.91 lakh households under PMAY-CLSS for 9.5.1 Operational Highlights during FY 2021-22
EWS/LIG.
Despite the challenges posed by the pandemic,
 To track the movement in prices of residential the Bank has continued its growth trajectory during the
properties in 50 select cities, NHB published NHB
RESIDEX, on a quarterly basis till September, 2022. fiscal. Key financial highlights are as below:
 Bank has taken a step forward for creating a  Asset Base of the Bank stood at Rs.2,47,379 crore
centralized repository of data on Housing finance at the end of FY 2022, a Y-o-Y growth of 29%.
which provides a seamless way to Primary
Lending Institutions to share data on Housing  Loans and Advances stood at Rs.2,02,252 crore
finance with NHB, known as the Housing Finance at the end of FY 2022, a Y-o-Y growth of 29%.
Repository (HFR) portal.  Net Interest Income for FY 2022 stood at
 Under the aegis of “Azadi ka Amrit Mahotsav” Rs.3,012 crore, with Net Interest Margin at 1.5%.
(AKAM), NHB organized several Outreach
Programmes.  Bank registered Net Profit of Rs.1,958 crore
during FY 2022.
9.4.4. Financial Highlights
9.5.2 Financing during FY 2021-22
 Bank posted a Net Profit of Rs.1920 crore for
the year (July 2021-June 2022) with ROA of SIDBI extends assistance to MSMEs directly and
2.33%, ROE of 19.35% and Capital Adequacy indirectly. Under indirect route, SIDBI extends Refinance
Ratio (CRAR) of 16.02%. Banks Gross NPA ratio assistance to banks, NBFCs, MFIs, etc. (Institutional
stood at 2.07%. Finance) against their lending to MSEs. This helps in
9.4.5. Projections/estimates for the period from creating multiplier effect and results increase in flow of
01.12.2022 to 31.03.2023 credit to MSMEs. Under Direct Finance, SIDBI extends
financial assistance by way of term loan, working capital,
 Bank has disbursed a cumulative amount of etc. directly to MSMEs. Brief of Financial assistance
Rs.6,016.56 crore during the FY 2022-23 (July-
extended by SIDBI is given below:
June) as on 15-12-2022.
(Rs in crore)
Business FY2021 FY2022 Outst.

Groups Growth %
Sanction Disb. Outstanding Sanction Disb. Outstanding
Direct Credit 4746 4007 11581 6760 5673 14187 23%
Institutional
Finance
81637 81637 131664 122781 122335 166832 27%
(Refinance)
-Banks
NBFC 7562 7802 11292 13178 12677 17935 59%
MFI 2717 2583 1672 4178 2893 3118 86%
Cluster Dev. - - - 1038 180 180 -
Total 96662 96029 156209 147935 143758 202252 29%
260
Institutional Finance accounts for approximately 9.6 Industrial Finance Corporation of India (IFCI)
93% of loans & advances of the Bank. Outstanding under
IFCI Limited (IFCI) was set up as a Statutory
Institutional Finance was at Rs.1,87,885 crore at the end
Corporation (“The Industrial Finance Corporation of
of FY 2022 which includes refinance to Banks & Small
India”) in 1948, as independent India’s first Development
Finance Banks (SFBs), Assistance to Non-Banking
Financial Institution, for providing medium and long term
Financial Companies (NBFCs) and Assistance to
finance to industry. In 1993, after repeal of the IFCI Act,
Microfinance Institutions (MFIs).
IFCI became a Public Limited Company, registered under
During FY 2022, in-principle commitment of the Companies Act, 1956. IFCI is also registered with
Rs.5968.50 crore was made by SIDBI to 11 States and 1 the Reserve Bank of India (RBI) as a Systemically
UT, from RBI’s allocation of Rs 7,000 crore under Cluster Important Non-Deposit taking Non-Banking Finance
Dev elopm ent Fund (CDF) Scheme t o ext end Company (NBFC-ND-SI) and is also a notified Public
concessional assistance to State Governments/ UTs to Financial Institution under Section 2(72) of the
create infrastructure for development/growth of MSME/ Companies Act, 2013. IFCI became a Government
clusters. As on March 31, 2022, financial assistance was Company in April 2015 and as on date, the shareholding
sanctioned to 5 States against 37 projects (34 Greenfield of GoI stands at 66.35% of paid-up capital of IFCI.
and 3 Brownfield Projects) for an aggregate amount of 10. Measures taken during COVID-19 pandemic
Rs.1038 crore. Total disbursement of Rs.180.82 crore
was made under SIDBI CDF, against 22 projects. 10.1 Emergency Credit Line Guarantee Scheme
(ECLGS)
During the current FY, though the entire fund
remains committed in-principally, formal sanctions to the  Emergency Credit Line Guarantee Scheme
tune of Rs.1,054 crore were accorded to 28 additional (ECLGS) was launched in May, 2020 as part of
projects. As on 30th December, 2022, commutatively, 8 Aatmanirbhar Bharat Abhiyaan to support eligible
State Governments and 1 UT have been sanctioned Micro, Small and Medium Enterprises (MSMEs)
Rs.2092 crore against 65 projects and total disbursement and business enterprises in meeting their
made is Rs.757 crore. operational liabilities and restarting their
businesses in context of the disruption caused
9.5.3 Promotion & Development by the COVID-19 pandemic.
A slew of initiatives has been undertaken under  This scheme covers all the sectors of the
promotion & development operations for kindling economy. Under ECLGS, 100% guarantee is
entrepreneurship in youth, and towards inclusive and provided to Member lending Institutions (MLIs)
innovative engagements for reaching out to micro- in respect to the credit facility extended by them
entrepreneurs and budding entrepreneurs in the to eligible borrowers. In view of the evolving
underserved segment. Some of the key initiatives include situations in the light of Covid waves and its effect
Swavalamban Challenge Fund (SCF) & Swavalamban on the various sectors of the economy, scope of
Connect Kendras (SCKs). Project Management Units the scheme has been extended many times in
(PMUs) have been set-up in total 16 states (including 11 the form of additional credit and expanded scope
which were set up in FY 2021), for closer engagement of eligible borrowers, by the introduction of
with states to strengthen MSME ecosystem along with ECLGS 2.0, 3.0 and 4.0 as well as changes from
transferring the good practices among the states, in line time to time.
with the UK Sinha Committee recommendations.
 Post the Budget announcement of Union Budget
9.5.4 Digital Enablers 2022-23, validity of the scheme has been
extended upto 31.3.2023 and limit of admissible
The maturing, highly successful and user-friendly guarantees has been increased from Rs. 4.5 lakh
digital ecosystem like Aadhar, UPI payment system, GST, crore to Rs. 5 lakh crore, with the additional
open API system, Regulatory Sandbox framework, Open amount is specifically earmarked for enterprises
Credit Enablement Network (OCEN), Account Aggregator in hospitality and related sectors.
(AA) framework, etc. have helped increasing the pace of
digitization of financial services including credit delivery.  Recognising that an efficient and strong civil
SIDBI used digital solutions to power several MSME aviation sector is vital f or the economic
ecosystem solutions underlining its digital prowess. development of the country, ECLGS was
Various digital initiatives undertaken by the bank include modified in October, 2022 to enhance the
Stand Up Mitra & Udyamimitra Portals (Twin Portals), maximum loan amount eligibility for airlines
“PSB Loans in 59 Minutes” Platform, Open Network for under ECLGS 3.0 to 100% of their fund based
Digital Commerce, GST Sahay Proj ect. MSME or non-fund-based loan outstanding as on the
Formalisation project, Blockchain based wholesale reference dates or Rs. 1,500 crore per borrower,
lending security sharing and MSME FIT Rank. whichever is lower; and of the above, Rs. 500
261
crore shall be considered, based on proportionate Scheduled Commercial Banks (SCBs). Important
equity contribution by the owners. features of the Scheme are as under:
 The validity of ECLGS has been extended upto  The Scheme is applicable to all loans sanctioned
31.03.2023. As informed by National Credit up to 31.03.2023, or till an amount of Rs. 50,000
Guarantee Trustee Company Limited (NCGTC), crores is sanctioned, whichever is earlier.
as on 16.12.2022, loans amounting to Rs 3.71
lakh crore have been sanctioned under the  Credit facilities will be sanctioned up to Rs. 100
crores per project in the form of fund based and
scheme, benefitting about 1.19 crore borrowers.
non-fund-based facilities.
10.2 Loan Guarantee Scheme for Covid affected
 The scheme shall provide credit guarantee of 50
Sectors (LGSCAS)
per cent to all brownfield projects and of 75 per
The Government of India has introduced Loan cent to all greenfield projects to be set up at the
Guarantee Scheme for Covid Affected Sectors (LGSCAS) centres other than Metropolitan cities (8 in
with a corpus of Rs. 2,000 crores for providing credit number). For aspirational districts, the guarantee
guarantee coverage to projects under healthcare sector. cov er f or both brownf ield expansion and
The brief of provisions under the Scheme are as under: greenfield projects shall be 75%.
 Loan Guarantee Scheme for Covid Affected  Interest rate under the Scheme is capped at
Sectors (LGSCAS) has been launched with a 7.95% p.a.
corpus of Rs.2,000 crores to provide financial  No Guarantee Fee shall be charged by NCGTC
(credit) guarantee cover for brownfield expansion from SCBs under the Scheme.
and greenfield projects related to health/ medical
infrastructure. The aforesaid credit guarantee As informed by National Credit Guarantee Trustee
would be provided by National Credit Guarantee Company Limited (NCGTC), as on 16.12.2022, the status
Trustee Company Limited (NCGTC) to of loan sanctioned/disbursed is as under:
Sanctioned Amount Disbursement Amount

Project Type Number of Units
(Rs. in Cr) (Rs. in Cr)
Brownfield Project 507 1723.51 481.46
Greenfield Project 1182 6284.66 1091.92
Total 1689 8008.17 1573.38
10.3 Credit Guarantee Scheme for Micro Finance  The Scheme is expected to benefit around 25
Institutions (CGSMFI) lakh small borrowers.
The Credi t Guarantee Scheme f or MFIs  The Interest rate on loans from SCBs to NBFC-
(CGSMFI) was launched in June, 2021 as part of the MFIs and MFIs for this purpose would be capped
Economic Relief Package announced to support Indian at 1-year Marginal Cost Based Lending Rate
(MCLR) + 2% p.a.
economy in fight against COVID-19 pandemic. The brief
of provisions under the Scheme are as under.  On lending is being provided by NBFC-MFIs and
MFIs to small borrowers at an Interest rate which
 It is guarantee Scheme for loans by Scheduled is at least 2% below the maximum rate prescribed
Co m m er ci al b an ks ( SC Bs) or o t h er by RBI on such loans.
Institutions (as decided from time to time) to
NBFC-MFIs and Micro Financial Institutions  80% of the assistance provided by NBFC-MFIs
(MFIs) in the country for onward lending to and MFIs under the Scheme would be for
small borrowers. creation of f resh loan assets and not f or
repayment of earlier loans.
 Guarantee upto 75% for a maximum period of 3
 All existing or new small borrowers (not in default
years.
for more than 90 days) within the regulatory
 The Scheme operationalised w.e.f. 15.07.2021. definition of micro finance as prescribed by RBI
are eligible to avail the Scheme.
It was valid till March 31, 2022 or till guarantees
for an amount of Rs.7,500 crore are issued,  No guarantee fee would be charged by NCGTC
whichever is earlier. for this Scheme.
262
 As informed by National Credit Guarantee have been sanctioned under the scheme as per
Trustee Company Limited (NCGTC), as on details as under:
31.03.2022, loans amounting to Rs 10,000 crores
(Amount in Rs. crore)
Sanction by MLIs Disbursement No of Sanctioned by MFI Disbursement by MFIs to
to MFI reported by MLIs to MFI Beneficiaries to Small Borrowers Small Borrowers as
by NCGTC as on reported by under CGPAN as as reported by reported by NCGTC
31.03.2022 NCGTC as on reported by NCGTC
31.03.2022 NCGTC as on
30.09.2022
Amount Amount
10,000 9,765.04 24,28,127 9,478.89 9,464.44
11. Representations from SCs, STs, OBCs and officer, Director, Under Secretary and Section Officer in
PWDs in financial sector institutions. the discharge of his functions. The Vigilance Section in
Department of Personnel & Training (DoP&T) in the DFS deals with, inter alia, the following matters
the Ministry of Personnel, Public Grievances and Pension, pertaining to PSBs, PSICs and FIs: -
is the Nodal Department for implementation of the a. Consultation with CVC/CTE/CBI on matters relating
reservation policy for Scheduled Castes (SCs) &
to complaints, vigilance clearance, sanction of
Scheduled Tribes (STs) in the Government of India.
Instructions regarding reservation in recruitment and prosecution and any other matter of -;
promotion are issued by DoP&T from time to time. (i) Board level appointees of PSBs, FIs, PSICs,
Department of Financial Services (DFS), circulates these PFRDA, IRDA and RBI.
instructions to the Public Sector Banks (PSBs), Public
Sector Financial Institutions (PSFIs), Public Sector (ii) All officials in the Department of Financial
Insurance Companies (PSICs), Reserve Bank of India Services, officers of office of Custodian and
(RBI), Insurance Regulatory and Development Authority Government officials in DRTs/ DRATs.
of India (IRDAI) and Pension Fund Regulatory and
Development Authority (PFRDA) for implementation. b. Appointment of CVOs in PSBs, FIs and PSICs.
These organizations implement the reservation 12.1.1 Performance
policies issued by DOP&T from time to time, after
adoption by their respective Board of Directors. Similarly, a) The Vigilance Division of the Department
the instructions issued by DOP&T from time to time, on monitors the progress on disposal of complaints
the welfare of SCs/STs category employees, are also received from various sources and pendency of
circulated to all PSBs, PSFls, PSICs, RBI etc for disciplinary / vigilance cases regularly and holds
implementati on.The dat e of implementation of meeting with CVOs in this Department at
Reservation policy for SCs/STs in Direct Recruitment is appropriate intervals.
the date on which the Banks were nationalized or
constituted. In Promotion, the date of effect is 01.01.1978 b) Instructions have been issued from time to time
or from the date on which the Bank came into existence, as and when any gap in the system is observed
whichever is later to strengthen the preventive vigilance in these
Details of representations from SCs/STs/OBCs organisations.
and Persons with Disabilities (PWDs) in Public Sector c) Vigilance Awareness Week was observed from
Banks / Financial Institutions and Insurance Companies 31.10.2022 to 04.11.2022.
is at Annexure I & II respectively.
13. Special Court
12 Vigilance
Department of Financial Services (DFS) is the The Special Court (Trial of offences relating to
Administrative Department for Public Sector Banks Transactions in Securities) Act, 1992 came into force on
(PSBs), Public Sector Insurance Companies (PSICs) and 06.06.1992. The Act was necessitated by reasons of the
Financial Institutions (FIs). An Additional Secretary level unprecedented situation wherein very large amount of
officer has been designated as Chief Vigilance Officer of public monies had been siphoned off into private pockets.
the Department. He is assisted by Joint Secretary level The legislature sought to set up a Special Court through
263
this Act for (a) speedy trial of offences (b) immediate the Custodian and 13341 cases have been disposed of
attachment and freezing of all assets of parties suspected by the Special Court, leaving a balance of 76 cases for
to be involved in the scam and (c) a reasonable and their disposal as on 30th November, 2022. The total
equitable distribution of the property. outstanding liabilities of notified parties were for Rs.41,976
crore as against the assets to the tune of Rs.5,424 crore,
The Special Court, at present, has one sitting out of which Rs.1118 crore are non-recoverable assets.
Judge on its strength. To support their day to day Till 30th November 2022, Rs.11,532 crores (approx.) has
functioning, the office of the Special Court functions with been recovered by the Custodian and out of these assets,
a staff of 26 officials at various levels. These are renewed Rs.7,138 crore has been distributed to Income Tax
on a year-to-year basis by DFS, Ministry of Finance with Department, Banks and others.
the approval of IFU. As on 05.12.2022 a total number of
pending matters in the Special Court are 86 which 15 Debt Recovery Appellate Tribunal/Debt
includes, Suits and Special Cases (Criminal). Recovery Tribunal
14. Office of the Custodian a. Mandatory e filing of cases amounting to Rs 100

crore and above
To assist the Custodian in discharging the duties
under the Special Court (TORTS) Act, 1992, at present Notification dated 22.07.2021 issued by the
there are two offices functioning at New Delhi and at Department whereby e-filing of cases amounting to Rs
Mumbai. The Delhi office handles the Administration and 100 Crore or above has been made mandatory before
Establishment matters of both the offices of Custodian DRTs.
and also deals with Supreme Court cases. The Mumbai The e-filing of cases would enable the banks and
Office mainly deals with the Court matters of Special financial institutions to file the cases online. The filing of
Court, which is presided over by a sitting Judge of Hon’ble cases would be easier through e-filing as the documents
Bombay High Court. Apart from that Mumbai Office also can be uploaded on the website and would be easily
manages attached properties of notified persons involved accessible while virtual hearing of the cases. The online
in security scam. The sanctioned strength of the Office submission of fee would be an easier option for the
of the Custodian has been reduced from 29 to 18 litigants. Even if the last date of limitation is approaching,
(excluding the post of Custodian) with effect from with the facility of e-filing the cases can be filed within the
01.03.2022. The charge of Custodian has also been given limitation period and there will be no delay in filing the
to a Joint Secretary level Officer of Department of cases.
Financial Services with effect from 11.04.2022.
b. The details of application filed and disposed in
Since inception, a total of 13417 cases were filed DRTs during the period from 01.04.2022 to 20.12.2022
in the Special Court, which were defended/contested by are as under: -
Applications Filed during the period from 01.04.2022 Disposed of 01.04.2022 to

to 20.12.2022 20.12.2022
OA 32753 20787
SA 15827 9700
Total 48580 30487
c. Recovery effected by Debts Recovery Tribunals increased their efficiency. It has enabled the Tribunals to
(DRTs) in the Financial Year 2022-23 (up to 30.11.2022) ensure online availability of case related information.
Further, e-filing of cases by the litigants has also been
As per the provisional data made available by all
enabled in e-DRT software from 24.01.2020, with the
DRTs, a recovery of Rs. 4,953.89 crore has been made
prov ision of online court f ee payment using the
by DRTs in the Financial Year 2022-23 (upto 30.11.2022).
BharatKosh Payment Gateway.
d. e-DRT Project
During the financial year 2022-23, following new
The e-DRT project to digitize the functioning of features have been introduced which are as under: -
all 39 Debts Recovery Tribunals (DRTs) and 5 Debts
Recov ery Appellate Tribunals (DRATs) has been  Helpdesk support for e-DRT system has been
implemented by Department of Financial Services (DFS) enabled for the convenience of the users/litigants.
through National Informatics Centre (NIC). The e-DRT This allows the users to register their complaints/
project has automated the full cycle of workflow of DRATs problems/suggestions relating to the use of e-
and DRTs, which has brought transparency and has also DRT system. It helps in getting f eedback
264
regarding the services for making suitable Websites (GIGW) requirement was undertaken by
modifications in the system for smooth operation Standardisation Testing and Quality Certification (STQC)
of the e-DRT portal. and the certificate on the same was issued to this
Department.
 Chatbot has been enabled whi ch act as
automated virtual assistant to reply to the queries (c) Cyber Crisis Management Plan
raised by the users through text messages.
The purpose of Cyber Crisis Management Plan
 MIS reports are being generated for effective (CCMP) is to establish the strategic framework and
monitoring and functioning of DRTs/DRATs. actions to prepare for, respond to and begin to coordinate
Search option has been enabled in e-DRT recovery from a cyber incident. CCMP has been put in
system to extract information relating to case place in this Department in October, 2020 and had been
details of applicants/respondents. duly updated for the year.
16 Information Technology and Cyber Security 17 Disposal of Public Grievances
Key initiatives of the Department of Financial (a) Timely redressal of public grievances relating to
Services in the year 2022-23 are as below: banking and insurance sectors is an important tool
(a) Identificati on of Cri tical Info rmation towards upgrading the quality of customer service in this
Infrastructure in financial sector. very crucial segment of financial sector. This is achieved
through the CPGRAMS. Department of Administrative
Critical Information Infrastructure (CII) has been Ref orms and Public Griev ances (DARPG) has
defined in the Information Technology Act, 2000 as the established CPGRAMS (Centralised Public Grievance
computer resource, the incapacitation or destruction of Redressal and Monitoring System), (an online web-based
which shall have debilitating impact on national security, system), to resolve public grievances.
economy, public health or safety. With a view to identifying
CII in the financial services sector, this Department plays (b) The maximum permissible time for resolution of
a pivotal role in coordinating with Regulators (Reserve grievances permitted earlier was 45 days which is now
Bank of India, Insurance Regulatory and Development reduced to 30 days by Department of Administrative
Authority of India & Pension Fund Regulatory and Reforms and Public Grievances (DARPG) vide its Office
Development Authority) and NCIIPC for identifying and Mem orandum dated 27.07.2022. Same was
notification of critical infrastructure of regulators as also communicated to RBI/IRDAI/ All PSBs/PSICs/FIs vide
its regulated entities. To streamline the process of this Department letter dated 05.08.2022 for taking
identification of CII within financial services sector and to necessary action. Regular monitoring of adherence to
build a clear roadmap and pipeline for identification of time lines is done by Department of Financial Services.
CIIs in banking, insurance and pension sector, a Standard
Operating Procedure (SOP)has been put in place, in (c) In Department of Financial Services, a large
consultation with NCIIPC. As of now, Real Time Gross number of grievances/complaints concerning Banking
Settlement (RTGS) System, National Electronic Fund and Insurance Sectors are received directly from citizens,
Transfer (NEFT) System and e-Kuber System of RBI, both online and by post. The postal grievances are also
Core systems of NPCI, State Bank of India, Life Insurance digitized and processed through CPGRAMS for its
Corporation of India, ICICI Bank, HDFC Bank, Punjab onward transmission to the designated Nodal Officers
National Bank, Bank of Baroda, Union Bank of India, i.e. Deputy General Manager/General Manager (DGM/
Kotak Mahindra Bank, Canara Bank and Axis Bank were GM) of concerned Public Sector Banks/Public Sector
notified as protected systems. Insurance Companies (PSBs/PSICs) for its redressal
within a maximum time limit of 30 days. These directions
(b) Website security & quality audit are followed by all organisations under the Department
W eb Applicat ion Security Audit of t his of Financial Services. Action taken reports are uploaded
Department’s Website, which is conducted annually has on the system and a scanned copy of the reply is provided
been completed by Indian Computer Emergency to the complainant that can be viewed by the complainant
Response Team (CERT-In) empanelled auditor and the online. Replies through post are also sent to those
certificate of the same has been issued to this complainants who have lodged their grievances
Department. W ebsite quality Certification of this physically. In addition, a dedicated Grievance Handling
Department’s websi te [ under E-Gov ernm ent Cell has been set up in the Department, which is
Development Index (EGDI) exercise], conducted every accessible at the Telephone No. 23346785 and email
three years as per Guidelines for Indian Government address [email protected].
265
(d) The Banks and Insurance Companies have grievance (e) IRDAI has set up IRDAI Grievance Call Centre
redressal mechanism in place and are also hosted on their (IGCC) which receives complaints through a toll-free
respective websites. The first level of grievance redressal telephone number and by email and registers complaints
is Branch Manager in Banks and Insurance Companies apart from furnishing the status of the resolution. IRDAI
followed by Zonal Managers and then General Manager has put in place the Integrated Grievance Management
(Customer Care) in Head Office. The grievances
System (IGMS) as an online system for grievance
concerning private banks and private insurance companies
management that is not only a gateway for registering
are resolved through Reserve Bank of India (RBI) and
Insurance Regulatory and Development Authority of India and tracking grievances online but also act as an
(IRDAI), respectively. The PSBs have also established industry-wide grievance repository for IRDAI to monitor
Ombudsman for settlement of grievances. disposal of grievances by insurance companies.
Life Private Life LIC General Private Public General Insurance

Insurance Insurance Insurance General Companies
Companies Companies Companies Insurance
Companies
Grievances 99.92 % 99.72 % 99.98% 97.44% 97.22% 97.78%
Resolved
(f) The Reserve Bank of India (RBI) has launched ‘The the administrative control of nine-member body i.e.
Reserve Bank Integrated Ombudsman Scheme, 2021’ Council for Insurance Ombudsmen (CIO), which has
on 12.11.2021. The Scheme integrates the existing three been constituted under the Insurance Ombudsman Rules,
Ombudsman Scheme of RBI namely – (i) the Banking 2017. The object of these Rules is to resolve complaints
Ombudsman Scheme, 2006 (ii) the Ombudsman Scheme of all personal lines of insurance, group insurance
for Non-Banking Financial Companies, 2018 and (iii) the policies, policies issued to sole proprietorship and micro
Ombudsman Scheme for Digital Transaction, 2019. In enterprises on the part of Insurance companies and their
addition to integrating the three existing schemes also agents and intermediaries in a cost effective and impartial
includes under its ambit Non-Scheduled Primary Co- manner.
operative Banks with a deposit size of Rs.50.00 crore
(h) In case the petitioners are not satisfied with the
and above. The scheme adopts “One Nation One
kind of disposal by the concerned Banks/Insurance
Ombudsman mechanism”.
Companies, they can file their complaints with the
(g) There are 17 Insurance Ombudsman set up by Ombudsmen concerned for the settlement of their
IRDAI. The Offices of Insurance Ombudsman are under grievance through mediation and passing of awards.
The status of complains in Insurance Ombudsman as of March 2022 is as below:
Source: Annual report of CIO 2021-22
266
(i) As per CPGRAMS database the details of receipt, disposal and pending grievances during the period
01.04.2022 to 30.11.2022 in respect of banking and insurance sectors are as follows:
Sector Brought Received Disposed Pending as on % of Disposal Less More

Forward 30.11.2022 as on
than 30 than 30 days
30.11.2022
days old old
Banking 8028 173088 172794 8322 95.40% 7593 729
(Pg)
Insurance 1025 22485 22693 817 96.52% 774 43
(Pg.)
Total 9053 195573 195487 9139 95.53% 8367 772
(j) As per CPGRAMS database the details of receipt, disposal and pending grievances during the period
01.04.2022 to 30.11.2022 in respect of banking and insurance sectors for COVID-19 grievances are as follows:
Sector Brought Received Disposed Pending as on % of Disposal More than 3

Forward 30.11.2022 as on days old
30.11.2022
Banking 132 6698 6700 130 98.10% 119

Insurance 20 958 972 6 99.39% 4
Total 152 7656 7672 136 - 123
(k) In January 2021, DARPG has started Appeal Joint Director in DFS have been nominated as Appellate
Mechanism in CPGRAMS wherein the customers who Authorities assigning specific organizations (PSBs/
are not satisfied with the resolution of their grievance PSICs/FIs/IRDAI/RBI) under control of DFS for
canappeal for review by higher Authorities. Since there monitoring and disposing of the appeals.
was provision of creation to Sub-appellate authority, a (l) As per CPGRAMS database (Appeal Portal) the
Sub-appellate authority was created in all PSBs/PSICs/ details of receipt, disposal and pending appeal during
FIs/ IRDAI/RBI and at each Section level in DFS. In view the period 01.04.2022 to 30.11.2022 in respect of banking
of large number of appeals, Directors/Deputy Secretary/ and insurance sectors for Appeal are as follows:
Sector Brought Received Disposed Pending as on % of Disposal Less More
Forward 30.11.2022 as on than 30 than 30
30.11.2022 days old days old
Banking 2142 32111 33401 852 97.51% 807 45
Insurance 141 3690 3677 154 95.98% 149 5
Total 2283 35801 37078 1006 97.36% 953 50
18 Right to Information (RTI) Act, 2005 During FY 2021-22, 7457 RTI Applications and
261 First Appeals were received on various matters
Coordination section in Department of Financial related to Banking, Insurance and pension. All the
Services is the nodal section for implementation of the applications and appeals were replied/disposed of within
RTI Act, 2005. The applications received under the RTI the stipulated time as prescribed under the RTI act, 2005.
Act, 2005 are disposed by the Central Public Information
Officers (CPIOs) and the Appellate Authorities (AAs) Section 4 of the RTI Act casts an obligation on
designated for each of the sections of this Department. ev ery public authority to make certain suo-moto
disclosures on its website. DFS has also made such suo-
As per RTI Act, any citizen can seek information moto disclosures on its website, regarding information
under RTI by making an appropriate application in writing on various functions, powers and duties etc. with respect
along with the prescribed fees to the Central Public to DFS.
Inf ormat ion Off icer, Depart ment of F inancial
19 Audit Paras
Services,3rd Floor, Jeevan Deep Building, Parliament
Street, New Delhi-110091 and/or can also file an RTI A summary of Audi t observ at ions made
under RTI Act, 2005, on Online Portal available at available by the Office of C&AG pertaining to DFS is at
www.rtionline.gov.in Annexure-III.
267
268
269
270
271
Chapter - VI
Department of Public Enterprises (DPE)

1 Public Enterprises Survey 2.1.1 Chairperson cum Managing Director:
The Department of Public Enterprises brings out the Appointment of CMD on the Board of CPSE is made by
Public Enterprises Survey on the performance of Central the concerned administrative Ministry on the basis of
Public Sector Enterprises (CPSEs), which is laid in the recommendations of Public Enterprises Selection Board
Parliament every year. (PESB) after obtaining approval of competent authority
and after completing due formalities in this regard.
As per PE Survey 2021-22 there were 389 Central Public
Sector Enterprises under the administrative control of 2.1.2 Government Directors:
various Ministries/ Departments as on 31.3.2022. Out of
The Government Directors are generally senior officers
389 CPSEs, 248 are in Operation of which 188 CPSEs
of the Government of India, State Government(s) or other
showed profit during 2021-22, 59 CPSEs incurred losses
Government agencies who are nominated to the Boards
during the year, and 1 CPSE has no profit no loss. The
of CPSEs by the concerned administrative Ministries in
‘Net Profit’ of 188 profit making CPSEs was ` 2.64 Lakh
ex-officio capacity. The dual role of a Government Director
crore in 2021-2022 and the ‘Net Loss’ of 59 loss making
is clearly demarcated i.e. as a Director of the company
CPSEs stood at ` (-) 0.15 Lakh crore during the year.
and representative of the Government. As Director of the
The profit of profit making CPSEs increased by 39.85%
company, they are bound to exercise due diligence and
and the total loss of loss making CPSEs declined by
act in the best interest of the company keeping in view
37.82% during Financial Year 2021-22. The overall Net
the provisions of the Companies Act 2013. Government
Profit of the 248 operating CPSEs increase by 50.87%
being the major shareholder in CPSEs, they are also
to ` 2.49 lakh crore in 2021-22 from `1.65 lakh crore in
required to protect its interest. In doing so, they can take
2020-21. The contribution of CPSEs to the Central
formal instructions from the Government on critical issues
Exchequer increased from ` 4.97 lakh crore in 2020-21
and voice them in the meetings of the Board of the
to ` 5.07 lakh crore in 2021-22.
company. They are required to provide timely feedback
A comparison of performances of CPSEs during 2021- on decisions taken by the company to their administrative
22 vis-a-vis the previous year i.e. 2020-21, is at Ministry/Department/organization.
Annexure-2.
In respect of the matters having substantial financial and
2. Organisation and Autonomy of CPSEs other consequences to the Government (a) as a
shareholder and (b) on the policies of Government arising
The endeavour of the Government is to make Central in the Board meetings, the Government Director is
Public Sector Enterprises (CPSEs) autonomous Board required to escalate them to the concerned Ministry and
managed companies. Under Articles of Association, the take their advice to formally prepare a view point of the
Board of Directors of CPSEs enjoys autonomy in respect Ministry and present the same in the Board of Directors
of recruitment, promotion and other service conditions meeting. The Government Director should also regularly
of below board level employees. The Board of Directors sensitize the Board about the relevant Government
of a CPSE exercises delegated powers subject to broad Guidelines (including DPE Guidelines) and compliance
policy guidelines issued by Government from time to time. of the same.
2.1 Structure of Boards of CPSEs: If the Board of a CPSE decides contrary to the
The Board of Directors of CPSEs essentially consist of Government policy, the Government Director should voice
three types of Directors namely Government Directors, the concern of the Government and get his/her dissent
Functional Directors and Independent (Non-Official) or disagreement recorded in the Minutes of the Board
Directors. The Boards are headed by a Chairperson cum meeting and report the same to the Ministry/Department.
Managing Director. As per the extant guidelines the The Government Director is required to submit a quarterly
number of functional Directors should not exceed 50% report on the issues deliberated by the Board, which in
of the actual strength of the Board and the number of his/her view merit attention of the Government and raise
Government nominee Directors shall be restricted to a alerts when things are not happening as expected in the
maximum of two. In case of listed CPSEs with executive company.
chairman, the number of non-official Directors shall be 2.1.3 Functional Directors
at least 50% of the Board strength. In case of unlisted
and listed CPSEs with non-executive chairman, at least The functional directors are executive heads of the
one-third of the Board Members shall be non-official concerned functional areas of a CPSE and perform their
Directors. executive role in the respective fields allotted to them.
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viz Operations, Finance, Marketing, Human Resources 2.2 Maharatna Scheme

etc. The functional Directors are appointed on the Boards
The main objective of the Maharatna scheme which was
of CPSEs by the concerned administrative Ministry on
introduced in 2010 is to empower mega CPSEs to expand
the basis of recommendations of Public Enterprises
their operations and emerge as global giants. The Boards
Selection Board (PESB) after obtaining approval of
of such CPSEs have been delegated enhanced powers
competent authority and after completing due formalities in the areas of (i) capital expenditure, (ii) investment in
in this regard. PESB is under the administrative joint ventures/subsidiaries, (iii) mergers & acquisitions,
jurisdiction of Department of Personnel & Training. PESB (iv) human resources management, etc. During the year
issues the advertisement, shortlists candidates and holds 2022-23, one CPSE, namely, REC Limited was granted
selection interviews for selection to the posts of functional Maharatna status.
Directors. The functional Directors are appointed for a
tenure of 5 years or till their superannuation whichever 2.3 Navratna Scheme
is earlier.
The Government introduced the Navratna scheme, in
2.1.4 Non-Official (Independent) Directors: - 1997, to identify Central Public Sector Enterprises
(CPSEs) that had comparative advantages and to support
The presence of Non-Official Directors (NoDs) on the them in their drive to become global giants. Under this
Boards of CPSEs is important for sound Corporate scheme, the Boards of Navratna CPSEs have also been
Governance as their constructive role is essential for delegated autonomy enhanced powers in the areas of (i)
smooth and transparent functioning of the company. The capital expenditure, (ii) investment in joint ventures/
subsidiaries, (iii) mergers & acquisitions, (iv) human
NoDs play an important role in various committees of resources management, etc.
Boards v iz. Audit Commi ttee, Nomi nation &
Remuneration Committee, CSR Committee etc. 2.4 Miniratna Scheme
The proposals for appointment of Non-Official Directors In October 1997, the Government decided to grant
enhanced autonomy and delegation of financial powers
(NoDs) on the Boards of CPSEs are initiated by the to some other profit-making companies subject to certain
concerned administrative Ministry which submits a panel eligibility conditions and guidelines to make them efficient
of names to DPE with the approval of their competent and competitive. These companies, called Miniratnas, are
authority. DPE places such proposals before the Search in two categories, namely, Category- I and Category-II.
Committee, which presently consists of Secretary 2.5 The salient features of Maharatna, Navratna &
(DoPT) as Chairperson, Secretary (DPE), Secretary of Miniratna scheme and list of these CPSEs are provided
the Administ rativ e Ministry/ Department of the at Annexure-4 and Annexure-5 respectively.
concerned CPSE and 2 non-official Members. The
2.6 Performance Appraisal of Board Level
concerned Administrative Ministry/ Department appoints Executives of CPSEs:
t he Non-O ff ici al Di rector on t he basi s of
recom m endat ions of Search Com m it t ee af ter 2.6.1 DPE has laid down the guidelines for annual
completing due formalities in this regard and after performance appraisal of functional Directors of CPSEs
which, inter-alia, prescribe the format, time schedule,
obtaining the approval of competent authority. The non- components of Annual Performance Appraisal Reports
official Directors are appointed for tenure of 3 years. (APARs) and their relative weight, channel of submission,
Details of the qualifying standards for being eligible to etc. The performance assessment of functional Directors
be appointed as NoD is at Annexure-3 of CPSEs is determined in the following manner:
Designation Weightage
MOU score/ Targets flowing from Personal attributes and Total

rating MOU assigned to functional competencies
Directors of the officer
Chairman cum 75 - 25 100

Managing Director
(CMD)
Functional 40 35 25 100
Director
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Department of Public Enterprises VI
2.6.2 Channel of Submission:

Channel of submission of APAR of Board Level Incumbents of CPSE is generally as under:
Sl Officer whose Reporting Authority Reviewing Authority Accepting Authority

No. PAR is to be
written
1 Executive Secretary Admin. Minister In-charge Minister In-charge

Chairman/CMD/MD Ministry/Departments
2 Functional Directors Executive Secretary Admin. Minister In-charge

Chairman/CMD/MD Ministry/Departments
3. Wage Policy and Manpower Rationalization package for Board and Below Board level
Executives and Non-Unionized Supervisors
The Department of Public Enterprises (DPE) functions should not be more than 20% of the Average
as the nodal Department for policy relating to pay revision Profit Before Tax (PBT) of the last three financial
of CPSE executives at Board as well as below Board years preceding the year of implementation. All
level and non-unionized supervisors. DPE also issues the expenditure on this account will be met by
guidelines for wage settlement negotiations in case of the CPSE implementing the revised pay scales
workmen in CPSEs. The Department renders advice to & allowances and no budgetary support shall be
the Administrative Ministries/ Departments and CPSEs provided by the government.
in matters relating to revision in pay scales of executives
and also for the wage policy negotiations of workmen. 3.1.2 Pay Revision for employees of CDA pattern
The CPSEs are largely following the Industrial Dearness in CPSEs:
Allowance (IDA) pattern of scales of pay. However, in
For the employees of CPSEs following the CDA pattern,
some CPSEs, Central Dearness Allowance (CDA) pattern
DPE vide OM dated 17.08.2017 issued guidelines for
of scales of pay is also followed. DPE issues quarterly
revision of pay scales and allowances w.e.f. 01.01.2016.
DA orders in respect of IDA employees. The DA orders The benefit of pay revision is allowed to the employees
for CDA employees of CPSEs are issued for six monthly of those CPSEs that are not loss making and are in a
period. position to absorb the expenditure on account of pay
3.1 Pay Revision for employees of CPSEs: revision from their own resources without any budgetary
support from the Government. Further, DPE vide OMs
3.1.1 Pay Revision for Executives and Non- dated 21.05.2018 and 04.07.2019 conveyed the
Unionised Supervisors of IDA pattern in Government decision on allowances applicable to CDA
CPSEs: employees of CPSEs.
(i) The third Pay Revision Committee (PRC) was 3.1.3 Wage Revision for Workmen under IDA
constituted under the Chairmanship of Justice pattern in CPSEs:
(Rtd.) Shri Satish Chandra to consider and
recommend pay scales for Board and Below DPE has issued policy guidelines for the 8th Round of
Board level executives and non-unionized Wage Negotiations with unionized workmen of CPSEs
supervisors of CPSEs under IDA pattern of pay (effective from 01.01.2017) vide its OM dated 24.11.2017.
scale. Based on the recommendations of the The validity of the wage negotiation as per para 2(xi) of
third PRC and Government’s decisions thereon, DPE OM dated 24.11.2017 would be minimum period of
five years for those who opted for a five-year periodicity
the revised pay scale guidelines effective from
and for a maximum period of ten years for those who
1st January, 2017 were issued vide DPE OMs
have opted for a ten-year periodicity of wage negotiation
dated 03.08.2017, 04.08.2017 and 07.09.2017.
w.e.f. 01.01.2017.
(ii) The rev ised pay scales and all owances
3.2 Guidelines recently issued:
recommended by third PRC were based on the
basic premise of affordability. These pay scales 3.2.1 DPE has issued DA orders in respect of CDA
and allowances would be implemented subject pattern pay scales in cases of 5th, 6th & 7th CPC for the
to the condition that the additional financial impact CPSEs employees. Similarly, industrial DA rates on
in the year of implementing the revised pay- quarterly basis (January, April, July & October) were also
275
revised for employees of the 2017/2007/1997/1992 & 5. Monitoring & Evaluation

1987 pay scales of CPSEs.
5.1 Memorandum of Understanding:
3.2.2 DPE issued guideli nes v ide OM dated
21.02.2022 regarding additional Transport allowances A Memorandum of Understanding (MoU) is a negotiated
payable to Person with Disability (PWD) employees kept agreement between the administrative Ministry/
outside the overall ceiling of cafeteria approach as Department and the management of respective Central
mentioned in DPE OM dated 03.08.2017 extending the Public Sector Enterprises (CPSEs). Under this, CPSEs
benefit to under privileged class of society. undertake to achieve targets set in the MoU. In MoU
evaluation, the performance of CPSEs on selected
3.2.3 DPE vide OM dated 02.12.2022 has issued parameters is compared with the determined targets. The
guidelines regarding reimbursement of rent/Payment of inclusion of a MoU helps make ‘management’ of the
HRA to Board level and below Board level executives, enterprise accountable to the government.
Non-Unionized Supervisors and CVO of CPSEs during
their temporary stay (up to a maximum period of six 5.1.1 Scope:
months) in Guest Houses run by CPSE/Central All CPSEs (Holding as well as Subsidiaries) are required
Gov ernment /State Gov ernment / Autonom ous to sign a MoU. The holding CPSEs sign the MoU with
Organizations etc. their Administrative Ministries/ Departments, while the
4. Categorization of CPSEs subsidiaries sign the MoU with their respective holding
companies.
4.1 The Public Sector Enterprises are categorized
into four Schedules namely ‘A’, ‘B’, ‘C’ & ‘D’. The 5.1.2 Institutional arrangements for
categorization of CPSEs has implications mainly for Implementation of MoU Policy:
organizational structure and salary of Board level a) High Powered Committee (HPC): The High-
incumbents of the concerned CPSE. It also plays a role Powered Committee is the Apex body under MoU
in grant of autonomy to the Boards of CPSEs under system for laying policy guidelines. HPC is
‘Ratna’ scheme. headed by the Cabinet Secretary and comprises
4.2 The initial categorization of CPSEs in the mid- following members: CEO (NITI Aayog), Finance
Secretary, Secretary (Expenditure), Secretary
sixties was made on the basis of their importance to the
(Statistics & Programme Implementation),
economy and complexities of their problems. Over the
Chairman (Public Enterprises Selection Board),
years the Department of Public Enterprises has evolved
Chief Economic Advisor (Economic Affairs) and
norms for the purpose of categorization/re-categorization
Secretary (DPE).
of CPSEs. Categorization is based on both quantitative
factors like investment, capital employed, net sales, profit (b) Inter-Ministerial Committee (IMC): The IMC
before tax, number of employees and units, capacity finalise the sectoral template/ CPSE wise MoU
addition, revenue per employee, sales/capital employed, parameters. The purpose of sectoral templates
capacity utilization, value added per employee and is to select and identify the parameters and
qualitativ e f actors such as national importance, weightages relevant to the core business
complexities of problems being faced by the company, activities in that sector and or CPSE. IMC will
level of technology, prospects for expansion and also set the requisite levels of performance
diversification of activities and competition from other against each of the parameters, so decided, as
sectors etc. The other factors, wherever available, relate benchmarked targets. The IMC comprises
to share price, MoU ratings, Maharatna/Navratna/ Secretary (DPE) as Chairman, Representative
Miniratna status and ISO certification. In addition, the of Chief Economic Advisor (Department of
factor relating to the critical/Strategic importance of the Economic Affairs), Department of Expenditure,
CPSE is also taken into account. At present there are 70 MoSPI, NITI Aayog and Secretary/ representative
of Administrative Ministry as special invitee and
Schedule ‘A’, 69 Schedule ‘B’, 44 Schedule ‘C’ and 5
any other expert co-opted on need basis.
Schedule ‘D’ CPSEs. The Schedule-wise list of CPSEs
is given in Annexure-6. 5.1.3 MoU Framework (FY 2021-22 & onwards)
4.3 Procedure for Categorization: Proposal for Based on the recommendations of the HPC, the
categorization of a CPSE is initiated by the concerned framework for MoU System using an online dashboard
Administrative Ministry/Department and submitted to for the target setting and performance evaluation of
DPE. The latter examines such proposals in consultation CPSEs has been put in place and made applicable from
with the Public Enterprises Selection Board (PESB) and FY 2021-22 & onwards. The parameters included in the
then the approval of Minister In-charge is obtained through revised MoU process are market oriented, reflecting the
Cabinet Secretary. shareholders’ interest in terms of growth in revenue,
276
EBITDA margin, return on net worth, return on capital on growth and emerging trends of the sector, vision that
employed, asset turnover ratio, and market capitalization. has been worked by the Ministry about the sector, and
Adequate weightage has also been given to production peer performance.
linked parameters pertaining to CPSE’s core operations.
All the parameters are quantifiable and verifiable from 5.1.4 MoU Score and Rating
the documents in public domain. Besides, certain
gov ernment’s priorities/ programmes such as The CPSEs will be allotted marks proportionately for
procurement from MSEs, CSR, etc. have also been achievement of target figure for each parameter. Score
included for compliance by CPSEs, the noncompliance on all parameters would be added to arrive at MoU score.
of which would result in deduction of marks. The revised The rating system of CPSEs based on the MoU score is
MoU framework also provides for benchmarking based as follows:
Aggregated Score Rating

90≤Score≤100 Excellent
70≤Score<90 Very Good
50≤Score<70 Good
33≤Score<50 Fair
0≤Score<33 Poor
6. Corporate Social Responsibility (CSR) Organizations on one platform for experience sharing and
developing appropriate models of interventions which
6.1 As per Section-135 of the Companies Act, 2013,
would be sustainable and complement existing
all profit-making corporates, including Central Public
Government interventions in area of health & nutrition,
Sector Enterprises (CPSEs) exceeding threshold limits
etc. Hon’ble Minister of State (Finance) inaugurated the
prescribed in the Act, i.e., net worth of Rs. 500 crore; or
workshop virtually which was attended by more than 200
turnover of Rs. 1000 crore or net profit of Rs. 5 crore are
participants from various CPSEs, senior officers of district
mandated to spend at least 2% of the average net profits
adm inist ration f rom Aspirati onal Districts and
(Profit Before Tax) of the company made during the three
representatives of civil society organizations.
immediately preceding years.
7. Schemes for ‘Counselling, Retraining and
6.2 The CPSEs are required to follow the provisions Red eployment (CRR)’ an d ‘Research,
contained in Section-135 of the Companies Act, 2013 Development and Consultancies (RDC)’
and the Companies (CSR Policy) Rules, 2014 notified
thereunder by Ministry of Corporate Affairs and the 7.1 Counselling, Retraining and Redeployment
Schedule-VII of the Act, which lists the activities that can (CRR):
be undertaken under CSR.
The Scheme f or Counselling, Retraining and
6.3 Based on the recommendations of CPSEs Redeployment (CRR) of Rationalized Employees of
Conclave held in April, 2018 and with the approval of Central Public Sector Enterprises (CPSEs) is being
competent authority, Department of Public Enterprises implemented by Department of Public Enterprises (DPE)
has issued guidelines on 10.12.2018 to all administrative as a Central Sector Scheme since 2001-02. CRR Scheme
Ministries & CPSEs for adopting a theme based focused was modified in November, 2007 in order to widen its
approach every year on CSR expenditure by CPSEs. scope and coverage. One dependent of Voluntary
These guidelines inter-alia provide that CSR expenditure Retirement Scheme (VRS)/Voluntary Separation Scheme
for such thematic programmes should be around 60% of (VSS) optee is also eligible in case the VRS/VSS optee
annual CSR expenditure of CPSEs and the aspirational is not interested for self. The scheme has been
districts identified by NITI Aayog may be given preference. subsequently modified in February, 2016 in order to
The common theme identified for the FY 2022-23 is broaden the network of training providers and also to
‘Health & Nutrition’. follow standardized methodology of training, design and
delivery. Under this scheme, a tripartite agreement is
6.4 DPE organized a workshop on the Corporate signed between DPE, National Skill Development Fund
Social Responsibility with special focus on Aspirational under the Ministry of Skill Dev el opment &
Districts on 10 th June, 2022 at Mahatma Mandir, Entrepreneurship and National Skill Development
Gandhinagar. The daylong workshop brought together Corporation to provide skill training as per National Skills
CSR stakeholders, i.e., CPSEs, representatives from Qualification Framework to employees of CPSEs who
Aspirational Districts, NITI Aayog and Civil Society left service under VRS/VSS or their dependents.
277
7.1.1 Objective of the CRR Scheme be short duration programmes according to the trade
decided during counselling.
(i) Bringing separated employees of CPSEs into the
mainstream economy and thereby contribute to Redeployment: It will be the endeavour to redeploy such
national income rationalized employees in the production process through
the counselling and retraining efforts. At the end of the
(ii) Reorientation of VRS/VSS optees or dependents programme, VRS/VSS optee or dependent should be able
to enable them to adjust to new environment and to engage themselves in alternate vocations of self/wage
adopt new vocations employment. Although there cannot be any guarantee
(iii) Skill dev elopment of VRS/VSS optees or that the separated employee will be assured of alternate
dependents for redeployment employment, yet possible help from the identified nodal
training agencies as well as from the CPSEs concerned
(iv) Provide opportunities of self/wage employment would be extended to them for starting new vocations.
to the VRS/VSS optees or their dependents who
7.1.3 The CPSEs are the key to the success of the
successfully complete skill training
scheme. They are expected to extend all possible support
7.1.2 Elements of the CRR scheme for the welfare of the separated employees by clearing
their compensation/dues bef ore release. Long
Counselling: Counselling is the basic pre-requisite of association with employees puts CPSEs in a better
the rehabilitation programme of the separated employees. position to identify their retraining needs. In order to
The separated employees need psychological counselling reinforce this linkage, DPE jointly with National Skill
to absorb the distress of loss of assured livelihood and Development Corporation (NSDC) organized a half-day
to face the new challenges and also needs support to workshop on CRR scheme at New Delhi on 18th October,
plan his compensation amount prudently. He/she also 2022 to familiarise the executives of CPSEs with the
needs to be made aware of the new environment of features and benefits of CRR scheme which was attended
market opportunities so that he/she may, depending upon by 53 participants f rom v arious CPSEs. The
his/her aptitude and expertise, take up economic activities representatives of various Sector Skill Council presented
and continue to be in the production process. the details of job roles available for VRS optees and their
dependents. DPE now plans to organize similar
Retraining: The objective of such training is to help the workshops with CPSEs having significant number of VRS
separated employees for rehabilitation. The trainees will optees.
be helped to acquire necessary skill/expertise/orientation
to start new vocations and re-entre the productive process 7.1.4 Year wise number of persons trained under the
after loss of their jobs. These training programmes will scheme is shown as under:
Year Number of VRS optees trained

2001-02 8,064
2002-03 12,066
2003-04 12,134
2004-05 28,003
2005-06 32,158
2006-07 34,398
2007-08 9,728
2008-09 9,772
2009-10 7,400
2010-11 9,265
2011-12 9,400
2012-13 7,506
2013-14 3,230
2014-15 2,525
2015-16 3,150
2016-17 1,576
2017-18 1,792
2018-19 1528
2019-20, 2020-21 & 2021-22 1,141
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7.1.5 The following sectors and job roles have been selected for the skill training during the year 2022-23 under
ongoing CRR-V project.
S. No. Sector Job Role

1 IT-ITES Data Entry Operator
2 Telecom CCE – Call Centre
3 IT Data Entry Operator
4 Management Retail Team Leader
7.2 Scheme of Research, Development and scheme, Management Development Programmes on

Consultancies (RDC): various topics for increasing the knowledge & skillsets of
7.2.1 DPE is implementing Central Sector Scheme of executives of CPSEs and SLPEs are organized at various
Research Development and Consultancies (RDC) for the centres of excellence such as IIMs, IITs, IIPA New Delhi
executives of Central Public Sector Enterprises (CPSEs) etc. The details of implementation of the scheme during
and State Level Public Enterprises (SLPEs). Under this last three years are as under:
Year Budget Revised Actual Programmes Persons

Estimates Estimates Expenditure Organized covered (Nos.)
(Rs. crore) (Rs. crore) (Rs. crore) (Nos.)
2019-20 6.00 6.00 5.15 31 886

2020-21 6.00 3.27 2.95* 5 355
2021-22 5.15 4.54 4.54 46 2152
* Due to situation arising from outbreak of COVID-19 pandemic, trainings could not be organized.
7.2.2 DPE is to organise 22 training programmes and 8.2 The Department of Public Enterprises (DPE) has
9 workshops during the year 2022-23 under the RDC been brought under the Ministry of Finance vide
Scheme in residential/non-residential/synchronous mode notification dated 6th July, 2021 of Cabinet Secretariat.
through institutes such as IITs/IIMs/ IICA etc. Vide order dated 17th August, 2021 of Finance Secretary,
demarcation of certain responsibilities between DIPAM
7.2.3 In addition, 5 orientation programmes for non-
and DPE has been done. DPE has been entrusted with
official Directors and one orientation programme for
the responsibility to identify CPSEs for closure or
Government Directors of CPSEs are also being organized
under RDC scheme during the year 2022-23. privatization in Non-Strategic Sector in consultation with
administrative Ministries/Departments. DPE is also
7.2.4 Statement of Scheme wise Expenditure for the year required to drive the closure process for CPSEs approved
2021-22 is enclosed at Annexure-7. for closure. For implementation of the abov e, a
Disinvestment Division has been created in DPE.
8. Imp lemen tatio n of New Publi c Sector
Enterprises (PSE) Policy 8.3 In order to operationalize the New Public Sector
Enterprise (PSE) Policy for CPSEs in Non-Strategic
8.1 The Government notified the new Public Sector
Enterprise (PSE) Policy on 4th February, 2021. The new Sector and to drive the closure process of CPSEs
PSE policy envisages classification of CPSEs into identified for closure, DPE has prepared guidelines in
Strategic and Non-Strategic Sectors and exempts certain consultation with D/o Expenditure, D/o Economic Affairs,
CPSEs such as that setup as not for profit companies D/o Revenue, DIPAM and NITI Aayog. These guidelines
under the Companies Act, 2013 or those providing support have been issued on 13.12.2021and are provided at
to v ulnerable groups or hav ing dev elopmental/ Annexure-8.
promotional roles, etc, from the scope of the policy. The 8.4 The salient features of the guidelines are given
policy proposes that in Strategic Sector, bare minimum below:
presence of the existing public sector enterprises at
holding company level will be retained under the i) identification of the CPSEs either for closure or
Government control. The remaining enterprises in privatization in Non-Strategic Sector will be done
Strategic Sector will be considered for privatization or in consultation with the concerned Administrative
merger or subsidiarization with another CPSE or for Ministries/Departments, NITI Aayog, Department
closure. CPSEs in Non-Strategic Sector shall be of Expenditure and DIPAM. In this regard,
considered for privatization, where feasible, otherwise Committee of Group of Officers (CGO) has been
such enterprises shall be considered for closure. constituted;
279
ii) seeking ‘in-principle’ approval of the CCEA Department of Heavy Industry (DHI) model, under
regarding the CPSEs identified for closure and/ which ex-gratia payment made is equivalent to 45 days
or for disinvestment in Non -Strategic Sectors; emoluments (Pay + DA) for each completed year of
service or the total emoluments for the balance period of
iii) the details of CPSEs approved for disinvestment
service, whichever is less. The employees who have
by CCEA will be communicated to DIPAM for completed not less than 30 years of service will be eligible
taking necessary action as per its extant for a maximum of 60 (sixty) months’ salary/wage as
procedure. Whereas, DPE will drive the process compensation and this will be subject to the amount not
for CPSEs approved for closure and exceeding the salary/wage for the balance period of
iv) transfer of leasehold land of CPSEs under service left.
closure to the respective state governments. The 10. Executive Development Programmes
freehold land will be transferred to National Land
Monetization Corporation (NLMC), a Special 10.1 The Central Public Sector Enterprises (CPSEs)
Purpose Vehicle (SPV) set up for their disposal. design their own human resource dev elopment
The alienation of land from the CPSEs under programmes to upgrade skills and knowledge of middle
closure will help in expediting the closure and senior level executives by giving them training in
process. various fields of management development through their
own management institutes or outsourcing the services
8.5 Incorporation of National Land Monetization of premier management training institutions in India.
Corporation: In pursuance of the Budget announcement
2021 and based on the approval of the Cabinet on 10.2 Secretary, DPE is an ex-officio member of the
09.03.2022 “National Land Monetization Corporation” Executive Board and Governing Council of the Standing
(NLMC), as a 100% Gol owned company, has been Conference of Public Enterprises (SCOPE), New Delhi.
incorporated on 03.06.2022 under the administrative
10.3 Secretary, DPE is member on the Board of
control of Department of Public Enterprises to carry out
Gov ernors of the Institute of Public Enterprise,
the monetization of non-core assets of CPSEs as well as
Hyderabad.
other Government agencies.
10.4 India is a founder Member of International Centre
9. Voluntary Retirement Scheme (VRS)
for Promotion of Enterprises (ICPE) headquartered in
9.1 As a result of the restructuring in some Central Slovenia. It was established as an inter-Governmental
Public Sector Enterprises (CPSEs), Government organisation of developing countries for improving the
announced the Voluntary Retirement Scheme (VRS) in performance of their public enterprises as Strategic
October, 1988. A comprehensive scheme was later instrument of economic and social development. ICPE
notified by the Department of Public Enterprises (DPE) pursues its goals by carrying out research, education,
in May, 2000. training, consultancy work and disseminating information
through documentation and publishing activities directed
9.2 VRS in CPSEs that can support the scheme on
towards bridging the gap between theory and practice
their own
on a wide range of issues pertaining to corporate
Enterprises, which are financially sound and can sustain governance, management and other related fields.
VRS on their own, can frame their own schemes of VRS
11. Reservation in Services for Scheduled Castes
and make it attractive enough for employees to opt for it.
(SCs), Sch eduled Trib es (STs), Oth er
They may offer as compensation upto 60 days salary
Backward Classes (OBCs) and Others, in the
(only Basic Pay +DA) for every completed year of service.
CPSEs
Such compensation will, however, not exceed the salary
for the balance period of the service left. 11.1 The Personnel and Recruitment Policies in
respect of appointments against below Board level posts
9.3 VRS in marginally profit or loss Making / sick / are formulated by the management of respective CPSEs.
unviable CPSEs However, on matters of general importance, policy
Marginally profit /loss making CPSEs as well as sick and guidelines are issued by the Government of India to the
unviable units may adopt either of the following models: enterprises so as to enable them to frame their individual
corporate policies. Furthermore, formal Presidential
Gujarat Model, under which the compensation is Directives are issued to CPSEs by the concerned
computed by allowing 35 days salary for every completed administrative Ministries to ensure reservation in regard
year of service and 25 days for each year of the balance to employment for Scheduled Castes, Scheduled Tribes
service left until superannuation subject to the condition and Other Backward Classes (OBCs), on similar lines
that compensation shall not exceed the sum of salary for as applicable in the Central Government Ministries/
the balance period left for superannuation. Departments. DPE through its OM dated 25.02.2015 has
280
sti pulated t hat t hose inst ruct ions as issued by concerned with the CPSEs in f ollow-up of DoPT
Government in respect of reservations to SC/ ST/ OBC/ instructions for employment of physically challenged
Disability & Ex-servicemen are to be taken as mutatis persons in CPSEs. With the enactment of the Persons
mutandis extended to all the CPSEs concerned unless with Disabilities (Equal Opportunities, Protection of Rights
specified otherwise by DPE. and Full Participation) Act, 1995, the reservation to
physically challenged persons have been extended to
11.2 A comprehensiv e Presi denti al Di rect iv e identified Group ‘A’ and ‘B’ posts to be filled through Direct
incorporating all important instructions on reservation for Recruitment. As per the ‘The Rights of Persons with
SCs and STs was issued by DPE to all the administrative Disabilities Act, 2016, not less than 4% posts shall be
Ministries/Departments concerned on 25th April, 1991 for reserved for persons with disabilities.
formal issuance of the same to CPSEs. Necessary
changes and modifications are also circulated to CPSEs 11.6 DPE has also extended instructions vis-à-vis the
through their administrative Ministries/ Departments for scheme for reservation for Ex-servicemen in CPSEs
information and compliance. through the administrative Ministries/ Departments.
Instructions for streamlining the procedure for recruitment
11.3 Subsequently, based on the recommendation of of Ex-servicemen have also been issued with a view to
the Second Backward Classes Commission (Mandal augment their in-take in CPSEs. Such CPSEs, which are
Commission) and in accordance with the Hon’ble Supreme in a position to offer agencies/dealerships, have been
Court Judgment in the Indira Sawhney case, instructions advised to reserve quota of such agencies/dealership for
were issued for providing reservation of 27% of vacancies allotment to Ex-servicemen.
in favour of Other Backward Classes (OBCs). Reservation
for OBCs was made effective w.e.f. 8.9.1993. The 11.7 The instructions issued by DoPT vide its OM
Department of Personnel & Training (DoPT) which dated 19.01.2019 & 31.01.2019 and DO letter dated
formulates the policy in respect of reservation in services 21.01.2019 in respect of 10% reservation to Economically
has been issuing instructions from time to time on various Weaker Sections (EWSs) are also mutatis mutandis
aspects of reservation in respect of OBCs. Department of extended to all the CPSEs in terms of DPE OM dated
Public Enterprises (DPE) has been extending these 25.01.2019 and 01.02.2019.
instructions to CPSEs through their administrative
Ministries for compliance. A comprehensive Presidential 11.8 The need to ensure timely filling up of reserved
Directive incorporating these instructions was forwarded posts and the backlog has been stressed through various
by the Department of Public Enterprises to all administrative instructions issued from time to time. All administrative
Ministries vide DPE’s OM dated 27th July, 1995 for formal Ministries/Departments have been requested to advise
issuance to the CPSEs under their control. the CPSEs under their administrative control to take
effective steps to fill up the unfilled reserved posts in Direct
11.4 Further in terms of DPE OM dated 25-10-2017, Recruitment as well as in Promotion in accordance with
all executives i.e. Board & below board level will be the existing instructions. Further, the DoPT has issued
considered as creamy layer subject to the proviso that instructions from time to time to launch a Special
those executives whose annual income as per criterion Recruitment Drive (s) to fill up backlog of reserved
given in DoPT OM dated 08-09-1993 is less than Rs. 8 vacancies for SCs, STs & OBCs in CPSEs. DPE has
lakhs (as amended vide DoPT OM dated 13-09-2017) also extended these instructions to all administrative
will not fall under creamy layer criteria. It is for the Ministries/Departments dealing with CPSEs to fill up these
concerned CPSE to issue the necessary orders for the vacancies in a time bound manner.
posts covered under creamy layer criteria on the above-
mentioned principle. 11.9 The present quota for providing reservation for
candidates belonging to Scheduled Castes, Scheduled
11.5 DPE has issued Presidential Directiv e on Tribes and OBCs as well as other categories of persons
11.3.1997 to all the administrative Ministries /Departments entitled to reservation of vacancies is shown below:
Category Quota for Reservation
Scheduled Castes 15%
Scheduled Tribes 7.50%
Other Backward Classes 27%
Physically Handicapped Persons 4%
Economically Weaker Sections (EWSs) 10%
As per policy of reservation for Ex-servicemen un-skilled posts are reserved for Ex-servicemen in
& Dependents of those killed in action, 14.5% posts in CPSEs.
respect of skilled workers and 24.5% post in respect of
281
12. Official Language Policy 13.2 Government e-Marketplace (GeM) which is

hosted by Directorate General of Supplies & Disposals
12.1 DPE’s Hindi Section is primarily responsible for (DGS&D), is a paperless, cashless, & system-driven e-
implementation of the various provisions of the Official market place that enables procurement of common-use
Language Act 1963 and the Rules framed there under. goods & services with minimal human interface. It is a
Hindi Section is also responsible for translation of dynamic, self-sustaining, & user-friendly portal for
documents required to be issued under Section 3(3) of procurement by offices of various Government Ministries
the Official Language Act, 1963. As more than 80% of & Departments, CPSEs, & autonomous bodies of the
the staff of this Department knows Hindi, the Department Central Government. DGS&D has developed GeM with
has been notified under rule 10(4) of the Official Language technical support of National e-Governance Division,
Rules, 1976. Ministry of Electronics & Information Technology.
12.2 Resolutions, notifications, notices, circulars, 13.3 DPE has been engaging with the CPSEs to
papers etc. to be laid on the Table of the both houses of ensure that the CPSEs comply with the provisions relating
Parliament have been issued bilingually during the year to procurement f rom MSEs and enhance their
2021-22. Efforts were also made to promote original procurement through GeM portal. In line with support
correspondence in Hindi. The Official Language measures announced by the Government for MSEs,
Implementation Committee of DPE continues to function procurement by CPSEs from MSEs during the year 2021-
under the Chairmanship of the Joint Secretary. 22 was around 32% as against the mandated 25%. During
the year 2022-23 (till December, 2022), procurement by
12.3 To create awareness and expanding the use of
the CPSEs from MSEs has further increased to 35.59%.
Hindi as Official Language, Hindi Pakhwada was
organized by the Department from 14th September, 2022 13.4 Continuous engagement with stakeholders has
to 29th September, 2022. During the Hindi Pakhwada five ensured manifold increase in procurement by CPSEs
competitions namely, Hindi Shrutlekh, bhasha Gyan, Hindi from GeM. Cumulative procurement from MSEs has risen
nibandh and Chitra varnan and Kavita path were from Rs. 7,035 crores in the financial year 2020-21 to
organized for the officers and staff including officials on Rs. 45,970 crores in financial year 2021-22. It stands at
contract basis. Certificates and Rewards have been Rs.55,618 crore in the financial year 2022-23 as on
felicitated to successful employees on 15.12.2022. December, 2022.
12.4 Annual Public Enterprises Survey on the working 13.5 Trade Receivables Discounting System (TReDS)
of Central Public Sector Enterprises is presented in the - TReDS is an electronic platform for facilitating the
Parliament every year by this Department. This is very financing / discounting of trade receivables of Micro, Small
voluminous and comprehensive document brought out and Medium Enterprises (MSMEs) through multiple
by the Department simultaneously in English and Hindi. financiers. These receivables can be due from corporates
and other buyers, including Government Departments
13. Procurement by CPSEs from MSEs and and Public Sector Undertakings. DPE has been
through GeM continuously engaging with the CPSEs and their
13.1 The Government of India notified the Public administrative Ministries/Departments to register CPSEs
Procurement Policy for Micro & Small Enterprises (MSEs) on TReDS portal and to increase usage of TReDS portal.
in 2012 to be administered by Ministry of Micro, Small & 177 CPSEs are now registered on the TReDS portal
which account for 98% of total procurement by CPSEs.
Medium Enterprises. The objective of this policy is to
In order to facilitate more effective use of the TReDS
promote and develop MSEs by supporting them in
portal by the CPSEs and ensure timely payments to MSE
marketing of products & services. As per provisions of
vendors as provided in the MSMED Act, 2006, a
this policy, w.e.f., 2012-13, every CPSE should achieve
parameter with a weight of 5 marks on ‘timely acceptance/
an overall procurement goal of minimum 20% of total
rejection of goods and services by the CPSEs through
annual purchase from MSEs in a period of three years.
TReDS portal within stipulated time (15 days)’ has been
Of the 20% target of annual procurement from MSEs, a
introduced in the MoU framework for the year 2022-23.
sub-target of 4% must be earmarked for procurement
DPE has directed all CPSEs to include a clause/provision
from MSEs owned by SC/ST entrepreneurs. At the end
with reference to payment terms through TReDS platform
of three years (i.e., from FY 2015-16), the overall in their standard tender document/notice inviting tenders
procurement goal of minimum 20% would be mandatory. for procurement. Financial Advisers of all administrative
This policy was amended on November 9, 2018 to Ministries/Departments have also been requested to
increase the minimum annual procurement from MSEs monitor usage of TReDS portal by the CPSEs under their
from 20% to 25% and to mandate procuring minimum administrative control.
3% out of the 25% from MSEs owned by women, in
addition to 4% to be procured from MSEs owned by SC/ 13.6 Workshops on Procurement by CPSEs with
ST entrepreneurs. special focus on vendor interface with Micro & Small
282
Enterprises (MSEs) and vendor interface with GeM on i. an Outreach program on the new MoU
11th June, 2022 at Mahatma Mandir, Gandhinagar- These dashboard at Kasauli on 09.05.2022 for CPSEs
interactive workshops aimed at encouraging and of Power Generation, Power Transmission &
promoting public procurement by MSEs (vendors or Finance sectors; followed by programs regarding
potential vendors) from CPSEs. The workshops offered MoU dashboard guidelines at Gandhinagar on
insights on Government initiatives to support MSEs, 10.06.2022 for CPSEs Oil Exploration, Oil
existing best practices, opportunity for networking, Marketing, Gas Transmission, Fertilizers,
discussions, between CPSEs and MSEs to discuss Manufacturing, Consultancy & Construction,
business opportunities and resolve any issues or Mining, Steel, Coal, Trading & Services Sectors,
concerns. During the workshop, an overview of GeM was and at Delhi on 28.06.2022 for CPSEs of
also presented along with its new initiatives, sharing of Multiproduct, Consultancy & Construction,
success stories on GeM and immersive presentation by Manufacturing, and Trading & Services Sectors.
MSEs and Start-ups. Buyers & Sellers perspectives were
also presented in the workshop through a panel ii. an exhibition on ‘Nation Building and CPSEs’
discussion. These workshops were attended by more from 9th to 12th June, 2022 at Mahatma Mandir
than 300 participants (169 from MSEs and 146 from (Gandhinagar) - 75 CPSEs had set up stalls
CPSEs). showcasing their products and services.
13.7 DPE organized a workshop on procurement by iii. a roundtable conference of CEOs of CPSEs on
CPSEs from MSEs on 21st December, 2022 at New Delhi ‘Role of CPSEs for a self-reliant India’ on 9th June,
with the support of Ministry of Micro, Small & Medium 2022 at Mahatma Mandir (Gandhinagar).
Enterprises and in collaboration with SCOPE. The
workshop drew unprecedented response as it was iv. a plantation drive across the country by CPSEs
attended by more than 200 senior officials from 77 CPSEs to plant 75,000 saplings in their off ices,
and more than 50 invitees from various Industry townships, production units, etc.
associations, besides senior officers from DPE, Ministry
v. a workshop on the Corporat e Social
of MSME and SCOPE. The technical sessions of the
workshop were addressed by senior officials of Ministry Responsibility (CSR) with special focus on
of MSME, NIC, National SC/ST Hub, RBI and TReDS aspirational districts on 10 th June, 2022 at
platforms with interactive presentations. Representatives Mahatma Mandir (Gandhinagar).
of Industry Associations were also given the platform to vi. an interactive workshop on procurement by
present their views and raise their concerns. A specific CPSEs with special focus on vendor interface
interactive session with senior GeM officials was also with micro & small enterprises (MSEs) and
conducted to address the problems being faced by vendor interface with GeM on 11th June, 2022 at
CPSEs in operation of GeM portal.
Mahatma Mandir (Gandhinagar) which was
14. Events organized by DPE under the aegis of attended by more than 300 participants (169 from
Azadi ka Amrit Mahotsav MSEs and 146 from CPSEs).
DPE organized a series of events under the aegis of Azadi vii. 15 CPSEs are dev eloping some of their
ka Amrit Mahotsav during the iconic week of 6th to 12th townships as Mini Smart Cities as per parameters
June, 2022 as per following details: identified by Ministry of Housing & Urban Affairs.
283
Annexure-1
Organogram
Hon’ble Finance Minister
Hon’ble Minister of State (Finance)
Secretary
`
Joint Joint Principal Economic DDG Addl.
Secretary Secretary Advisor (Cost) Advisor (Survey) Secretary &
FA
Dy Director Jt Director Director Jt Director Dy Secretary Jt Director

Secretary (Policy-I) (Disinvestment) (MoU) (Policy-II) (Wage) (Survey) CCA
(Admn)
284
Annexure-2
Table 1: Performance of CPSEs during 2021-22
SI Item/Indicator 2020-21 2021-22 % Change

No. (Rs. Crore) (Rs. crore)
1. Gross Revenue of (operation) CPSEs 24,08,243 31,94,592 32.65
2. Total paid up capital of all CPSEs 2,84,432 3,69,261 29.82
3. Investment (equity plus long-term loans) of 21,57,917 22,81,090 5.71

all CPSEs
4. Capital employed (Paid up capital + long 32,92,882 35,21,047 6.93
term loans and reserves & surplus) of all
CPSEs
5. Profit of (profit making) CPSEs 1,88,703 2,63,895 39.85
6. Loss of (loss making) CPSEs -23,458 -14,586 37.82*
7. Overall Net Profit 1,65,245 2,49,309 50.87
8. Reserves and Surplus of all CPSEs 11,34,966 12,39,957 9.25
9. Net Worth of all CPSEs 13,81,007 15,57,882 12.81
10. Contribution of all CPSEs to Central 4,96,551 5,07,193 2.14
Exchequer
* The total loss of loss making CPSEs has declined showing improvement of 37.82%.
285
Annexure-3
Details of Eligibility Criteria for appointment as Non-Official (Independent) Directors:
Details of Eligibility Criteria for appointment as Non- (v) Former CEOs of private companies if the
Official (Independent) Directors: company is (a) listed on the Stock Exchanges or
Criteria of Experience: (b) unlisted but profit making and having an
annual turnover of at least Rs.250 crore.
(i) Retired Government officials with a minimum of
10 years’ experience at Joint Secretary Level or (vi) Persons of eminence with proven track record
above. f rom Industry, Business or Agriculture or
(ii) Persons who have retired as CMD/CEOs of Management.
CPSEs and Functional Directors of the Schedule
(vii) Serv ing CEOs and Directors of priv ate
‘A’ CPSEs. The ex-Chief Executives and ex-
companies listed on the Stock Exchanges may
Functional Directors of the CPSEs will not be
considered for appointment as non-official also be considered for appointment as part-time
Director on the Board of the CPSE from which non-official Directors on the Boards of CPSEs in
they retire. Serving Chief Executives/Directors exceptional circumstances.
of CPSEs will not be eligible to be considered for
appointment as non-official Directors on the Criteria of Educational Qualification
Boards of any CPSEs.
Minimum graduate degree from a recognized university.
(iii) Academicians/Directors of Institutes/Heads of
Criteria of Age
Department and Professors having more than
10 years teaching or research experience in the The age band should be between 45-65 years (minimum/
relevant domain e.g. management, finance,
maximum limit)
marketing, technology, human resources, or law.
Thi s could, howev er, be relaxed f or eminent
(iv) Professionals of repute having more than 15
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.
286
Annexure-4
Salient Features of Ratna Scheme (Maharatna/Navratna/Miniratna)
1. Maharatna Scheme 1.3.2 The delegated powers to establish financial joint

ventures and subsidiary entities would be exercised by
1.1 Eligibility Criteria:
the Board of Maharatna CPSEs in the following manner:
The CPSEs meeting the following eligibility criteria are
(i) The proposal for establishing financial joint
considered for Maharatna status:
ventures and subsidiary entities will be presented
a) Having Navratna status to the Board of the concerned CPSE.
b) Listed on Indian stock exchange with minimum (ii) The concerned adm inistrati v e Mi nist ry/
prescribed public shareholding under SEBI Department will obtain the concurrence of NITI
regulations
Aayog for such proposals on a case to case basis
c) An average annual turnover of more than and firm up its view on the proposals as the
Rs.25,000 crore during the last 3 years stakeholder for the Board’s deliberations through
d) An average annual net worth of more than its representative on the Board for appropriate
Rs.15,000 crore during the last 3 years decision.
e) An average annual net profit after tax of more (iii) The Government Directors will ensure that the
than Rs.5,000 crore during the last 3 years views of the Government, being the majority
f) Should have signif icant global presence/ shareholder, on such proposals are properly
international operations. presented before the Board while a decision on
such proposal is being taken. The decision for
1.2 Procedure for grant/divestment of Maharatna
investment to set up financial joint ventures and
status: - The procedure for grant of Maharatna status as
subsidiary entities should only be taken by the
well as their review is similar to that in vogue for the grant
Board when Government Directors are present
of Navratna status.
in the board meeting.
1.3 Powers delegated to Maharatna CPSEs: -
2. Navratna scheme:
1.3.1 The Boards of Maharatna CPSEs in addition to
exercising all powers to Navratna CPSEs, exercise 2.1 Eligibility criteria: The CPSEs which are
enhanced powers in the area of investment in joint Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or
ventures/subsidiaries and creation of below Board level ‘very good’ MOU rating in three of the last five years and
posts. The Boards of Maharatna CPSEs have powers to have a ‘Composite Score’ of performance to be 60 or
(a) make equity investment to establish financial joint above in six identified performance parameters are
ventures and wholly owned subsidiaries in India or abroad eligible to be considered for grant of Navratna status.
and (b) undertake mergers & acquisitions, in India or The composite score is calculated on the basis of
abroad, subject to a ceiling of 15% of the net worth of the performance of the concerned CPSEs during the last
concerned CPSE in one project, limited to an absolute three years. For calculation of composite score, 6
ceiling of Rs.5,000 crore (Rs. 1,000 crore for Navratna performance indicators have been identified based on
CPSEs). The overall ceiling on such equity investments their general applicability to the CPSEs. The performance
and mergers and acquisitions in all projects put together indicators have been chosen so as to capture the
will not exceed 30% of the net worth of the concerned performance of CPSEs irrespective of their belonging to
CPSE. In addition, the Boards of Maharatna CPSEs have manufacturing sector or services sector. The 6 identified
powers to create below Board level posts upto E-9 level. performance indicators are: -
S.N. Performance Indicator (Maximum Weight)

1 Net Profit to Net worth 25
2 Manpower Cost to total Cost of Production or Cost of Services 15
3 PBDIT to Capital employed 15
4 PBIT to Turnover 15
5 Earnings per Share 10
6 Inter Sectoral Performance 20
Total 100
287
2.2 Procedure for grant/divestment of Navratna (b) The delegated powers to establish financial joint
status: ventures and subsidiary entities would be
exercised by the Board of Navratna CPSEs in
The proposals for grant/divestment are initially considered the following manner:
by the Inter-Ministerial Committee and then by the Apex
Committee. The recommendations of Apex Committee (i) The proposal for establishing financial joint
for grant/divestment of Navratna status are to be placed ventures and subsidiary entities will be
before Minister (In charge of DPE) for a decision. presented to the Board of the concerned
CPSE.
2.3 The Powers Delegated to Navratna CPSEs:
(ii) The concerned administrative Ministry/
2.3.1 Capital Expenditure: - The Navratna CPSEs Department will obtain the concurrence of
have the powers to incur capital expenditure on purchase NITI Aayog for such proposals on a case-
of new items or for replacement, without any monetary to-case basis and firm up its view on the
ceiling. proposals as the stakeholder for the Board’s
2.3.2 Technology Joint Ventures and Strategic deliberations through its representative on
Alliances: - The Navratna CPSEs have the powers to the Board for appropriate decision.
enter into technology joint ventures or Strategic alliances (iii) The Government Directors will ensure that
and obtain by purchase or other arrangements, the views of the Government, being the
technology and know-how. majority shareholder, on such proposals are
2.3.3 Organization Restructuring: - The Navratna properly presented before the Board while
CPSEs have the powers to effect organizational a decision on such proposal is being taken.
restructuring including establishment of profit centres, The decision for investment to set up
opening of offices in India and abroad, creating new financial joint ventures and subsidiary
activity centres, etc. entities should only be taken by the Board
when Government Directors are present in
2.3.4 Human Resources Management: - The the board meeting.
Navratna CPSEs have been empowered to create posts
upto E-6 level and wind up all posts up to non-Board level 2.3.7 Mergers and acquisitions: - The Navratna
Directors and make all appointments up to this level. The CPSEs have been delegated powers for mergers and
Boards of these CPSEs have further been empowered acquisitions subject to the conditions that (i) it should be
to effect internal transfers and re-designation of posts. as per the growth plan and in the core area of functioning
The Board of Directors of Navratna CPSEs have the of the CPSE, (ii) conditions/limits would be as in the case
power to further delegate the powers relating to Human of establishing joint ventures/subsidiaries, and (iii) the
Resource Management (appointments, transfer, posting, Cabinet Committee on Economic Affairs would be kept
etc.) of below Board level executives to sub-committees informed in case of investments abroad. Further, the
of the Board or to executives of the CPSE, as may be powers relating to Mergers and Acquisitions are to be
decided by the Board of the CPSE. exercised in such a manner that it should not lead to any
change in the public sector character of the concerned
2.3.5 Resource Mobilization: - These CPSEs have CPSEs.
been empowered to raise debt from the domestic capital
markets and for borrowings from international market, 2.3.8 Creation/Disinvestment in subsidiaries:- The
subject to condition that approval of RBI/Department of Navratna CPSEs have powers to transfer assets, float
Economic Affairs, as may be required, should be obtained fresh equity and divest shareholding in subsidiaries
through the administrative Ministry. subject to the condition that the delegation will be in
respect of subsidiaries set up by the holding company
2.3.6 Joint ventures and Subsidiaries: - under the powers delegated to the Navratna CPSEs and
further to the proviso that the public sector character of
(a) The Navratna CPSEs have been delegated
the concerned CPSE (including subsidiary) would not be
powers to establish financial joint ventures and
changed without prior approval of the Government and
wholly owned subsidiaries in India or abroad with
such Nav ratna CPSEs will be required to seek
the stipulation that the equity investment of the
Gov ernment approv al bef ore exiting f rom their
CPSE should be limited to the following: -
subsidiaries.
(i) Rs. 1000 crore in any one project,
2.3.9 Tours abroad of functional Directors: - The
(ii) 15% of the net worth of the CPSE in one Chief Executive of Navratna CPSEs have been delegated
project, powers to approve business tours abroad of functional
directors up to 5 days’ duration (other than study tours,
(iii) 30% of the net worth of the CPSE in all joint seminars, etc.) in emergency under intimation to the
ventures/ subsidiaries put together. Secretary of the administrative Ministry.
288
2.3.10 Exercise of delegated Navratna powers is project should be limited to 15% of the networth
contingent on certain conditionalities. of the CPSE or Rs. 500 crore, whichever is less.
The overall ceiling on such investment in all
3. Miniratna schemE: projects put together is 30% of the networth of
3.1 Eligibility criteria the CPSE.
(i) Category-I CPSEs should have made profit in b) Category II CPSEs: To establish joint ventures
the last three years continuously, the pre-tax profit and subsidiaries in India with the stipulation that
should have been Rs.30 crores or more in at least the equity investment of the CPSE in any one
one of the three years and should have a positive project should be 15% of the net worth of the
net worth. CPSE or Rs. 250 crores, whichever is less. The
overall ceiling on such investment in all projects
(ii) Category-II CPSEs should have made profit for put together is 30% of the net worth of the CPSE.
the last three years continuously and should have
a positive net worth. c) The delegated powers to establish financial joint
ventures and subsidiary entities would be
(iii) These CPSEs shall be eligible for the enhanced exercised by the Board of Miniratna CPSEs in
delegated powers provided they have not the following manner:
defaulted in the repayment of loans/interest
payment on any loans due to the Government. (i) The proposal for establishing financial joint
ventures and subsidiary entities will be
(iv) These public sector enterprises shall not depend presented to the Board of the concerned
upon budgetary support or Gov ernm ent CPSE.
guarantees.
(ii) The concerned administrative Ministry/
(v) The Boards of these CPSEs should be Department will obtain the concurrence of
restructured by inducting at least three non- NITI Aayog for such proposals on a case-
official Directors as the first step before the to-case basis and firm up its view on the
exercise of enhanced delegation of authority. proposals as the stakeholder for the Board’s
(vi) The administrative Ministry concerned shall deliberations through its representative on
decide whether a Public Sector Enterprise fulfilled the Board for appropriate decision.
the requirements of a Category-I/Category-II (iii) The Government Directors will ensure that
company before the exercise of enhanced the views of the Government, being the
powers. majority shareholder, on such proposals are
3.2 Procedure for grant of Miniratna status: Grant properly presented before the Board while
of Miniratna status to a particular CPSE is done by a decision on such proposal is being taken.
concerned Administrative Ministry/Department. The decision for investment to set up
financial joint ventures and subsidiary
3.3 Powers Delegated entities should only be taken by the Board
when Government Directors are present in
3.3.1 Capital Expenditure meeting.
a) For CPSEs in category I: The power to incur 3.3.3 Mergers and acquisitions: - The Board of
capital expenditure on new projects, Directors of these CPSEs have the powers for mergers
modernization, purchase of equipment, etc., and acquisitions, subject to the conditions that (a) it should
without Government approval upto Rs. 500 crore be as per the growth plan and in the core area of
or equal to net worth, whichever is less. functioning of the CPSE, (b) conditions/limits would be
b) For CPSEs in category II: The power to incur as in the case of establishing joint ventures/subsidiaries,
capital expenditure on new projects, and (c) the Cabinet Committee on Economic Affairs would
modernization, purchase of equipment, etc., be kept informed in case of investments abroad. Further,
without Government approval upto Rs. 250 crore the powers relating to Mergers and Acquisitions are to
or equal to 50% of the Net worth, whichever is be exercised in such a manner that it should not lead to
less. any change in the public sector character of the
concerned CPSEs.
3.3.2 Joint ventures and subsidiaries:
3.3.4 Scheme for HRD: - To structure and implement
a) Category I CPSEs: To establish joint ventures schemes relating to personnel and human resource
and subsidiaries in India with the stipulation that management, training, voluntary or compulsory retirement
the equity investment of the CPSE in any one schemes, etc. The Board of Directors of these CPSEs
289
have the power to further delegate the powers relating to 3.3.7 Creation/Disinvestment in subsidiaries :- To
Human Resource Management (appointments, transfer,
transfer assets, float fresh equity and divest shareholding
posting, etc.) of below Board level executives to sub-
committees of the Board or to executives of the CPSE, in subsidiaries subject to the condition that the delegation
as may be decided by the Board of the CPSE. will be in respect of subsidiaries set up by the holding
3.3.5 Tour abroad of functional Directors: - The company under the powers delegated to the Miniratna
Chief Executive of these CPSEs have the power to CPSEs and further to the proviso that the public sector
approve business tours abroad of functional directors up character of the concerned CPSE (including subsidiary)
to 5 days’ duration (other than study tours, seminars, etc.)
would not be changed without prior approval of the
in emergency, under intimation to the Secretary of the
administrative Ministry. Government and such Miniratna CPSEs will be required
to seek Government approval before exiting from their
3.3.6 Technology Joint Ventures and Strategic
Alliances: - To enter into technology joint ventures, subsidiaries.
strategic alliances and to obtain technology and know-
3.3.8 Exercise of delegated Miniratna powers is
how by purchase or other arrangements, subject to
Government guidelines as may be issued from time to contingent on certain conditionalities.
time.
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Annexure-5
(List of Maharatna, Navratna & Miniratna CPSEs as on December, 2022)

Maharatna CPSEs 6. BEML Limited
1. Bharat Heavy Electricals Limited 7. Bharat Sanchar Nigam Limited
2. Bharat Petroleum Corporation Limited 8. Braithwaite & Company Limited
3. Coal India Limited 9. Bridge & Roof Company (India) Limited
4. GAIL India Limited 10. Central Warehousing Corporation
5. Hindustan Petroleum Corporation Limited 11. Central Coalfields Limited
6. Indian Oil Corporation Limited 12. Central Mine Planning & Design Institute Limited
7. NTPC Limited, 13. Chennai Petroleum Corporation Limited
8. Oil & Natural Gas Corporation Limited, 14. Cochin Shipyard Limited
9. Power Finance Corporation 15. Cotton Corporation of India Ltd.
10. Power Grid Corporation of India Limited 16. EdCIL (India) Limited
11. REC Limited. 17. Garden Reach Shipbuilders & Engineers Limited
12. Steel Authority of India Limited. 18. Goa Shipyard Limited
Navratna CPSEs 19. Hindustan Copper Limited
1. Bharat Electronics Limited 20. HLL Lifecare Limited
2. Container Corporation of India Limited 21. HSCL Limited
3. Engineers India Limited 22. Hindustan Paper Corporation Limited
4. Hindustan Aeronautics Limited 23. Housing & Urban Development Corporation
Limited
5. Mahanagar Telephone Nigam Limited
24. HSCC (India) Limited
6. National Aluminium Company Limited
25. India Tourism Development Corporation Limited
7. National Buildings Construction Corporation
Limited 26. Indian Rare Earths Limited
8. Neyveli Lignite Corporation Limited 27. Indian Railway Catering & Tourism Corporation
Limited
9. NMDC Limited
28. Indian Railway Finance Corporation Limited
10. Oil India Limited
29. Indian Renewable Energy Development Agency
11. Rashtriya Ispat Nigam Limited Limited
12. Shipping Corporation of India Limited 30. India Trade Promotion Organization
Miniratna CPSEs 31. IRCON International Limited
Category - I CPSEs 32. KIOCL Limited
1. Airports Authority of India 33. Mazagaon Dock Shipbuilders Limited
2. Antrix Corporation Limited 34. Mahanadi Coalfields Limited
3. Balmer Lawrie & Co. Limited 35. MOIL Limited
4. Bharat Coking Coal Limited 36. Mangalore Refinery & Petrochemical Limited
5. Bharat Dynamics Limited 37. Mineral Exploration Corporation Limited
291
38. Mishra Dhatu Nigam Limited 57. Security Printing and Minting Corporation of India
Limited
39. MMTC Limited
58. South Eastern Coalfields Limited
40. MSTC Limited
59. Telecommunications Consultants India Limited
41. National Fertilizers Limited
60. THDC India Limited
42. National Projects Construction Corporation
Limited 61. Western Coalfields Limited
43. National Small Industries Corporation Limited 62. WAPCOS Limited
44. National Seeds Corporation Category-II CPSEs
45. NHPC Limited 63. Artificial Limbs Manufacturing Corporation of
India
46. Northern Coalfields Limited
64. Bharat Pumps & Compressors Limited
47. North Eastern Electric Power Corporation
Limited 65. Broadcast Engineering Consultants India Limited
48. Numaligarh Refinery Limited 66. Central Railside Warehouse Company Limited
49. ONGC Videsh Limited 67. Engineering Projects (India) Limited
50. Pawan Hans Helicopters Limited 68. FCI Aravali Gypsum & Minerals India Limited
51. Projects & Development India Limited 69. Ferro Scrap Nigam Limited
52. Railtel Corporation of India Limited 70. HMT (International) Limited
53. Rail Vikas Nigam Limited 71. Indian Medicines & Pharmaceuticals Corporation
Limited
54. Rashtriya Chemicals & Fertilizers Limited
72. MECON Limited
55. RITES Limited
73. National Film Development Corporation Limited
56. SJVN Limited
74. Rajasthan Electronics & Instruments Limited
292
Annexure-6
(Schedule-Wise List of Central Public Sector Enterprises as on December, 2022)
Schedule- A 32. Mahanagar Telephone Nigam Limited

1. Airports Authority of India 33. Mangalore Refinery & Petrochemicals Limited
2. Advanced W eapons and Equipment India 34. Mazagon Dock Shipbuilders Limited
Limited
35. MECON Limited
3. Armoured Vehicles Nigam Limited
36. MMTC Limited
4. BEML Limited
37. MOIL Limited
5. Bharat Electronics Limited
38. Mumbai Railway Vikas Corporation Limited
6. Bharat Heavy Electricals Limited
39. Munitions India Limited
7. Bharat Petroleum Corporation Limited
40. National Aluminum Company Limited
8. Bharat Sanchar Nigam Limited
41. NBCC (India) Limited
9. Central Warehousing Corporation
42. National Fertilizers Limited
10. Coal India Limited
43. New Space India Limited
11. Container Corporation of India Limited
44. NHPC Limited
12. Dedicated Freight Corridor Corporation of India
Limited 45. NMDC Limited
13. Electronics Corporation of India Limited 46. National Textiles Corporation Limited
14. Engineers India Limited 47. NTPC Limited
15. Fertilizers & Chemicals (Travancore) Limited 48. NLC India Limited
16. Food Corporation of India 49. North Eastern Electric Power Corporation
Limited
17. GAIL (India) Limited
18. Heavy Engineering Corporation Limited 50. Oil & Natural Gas Corporation Limited
19. Hindustan Aeronautics Limited 51. Oil India Limited
20. Hindustan Copper Limited 52. ONGC Videsh Limited
21. Hindustan Paper Corporation Limited 53. Power Finance Corporation Limited
22. Hindustan Petroleum Corporation Limited 54. Power Grid Corporation of India Limited
23. HMT Limited 55. Power System Operation Corporation Limited
24. Housing & Urban Development Corporation 56. RITES Limited

Limited 57. RailTel Corporation of India Limited
25. I T I Limited 58. Rail Vikas Nigam Limited
26. Indian Oil Corporation Limited 59. Rashtriya Chemicals and Fertilizers Limited
27. IRCON International Limited
60. Rashtriya Ispat Nigam Limited
28. Indian Railway Finance Corporation Limited
61. Rural Electrification Corporation Limited
29. Karmyogi Bharat
62. SJVN Limited
30. Konkan Railway Corporation Limited
63. Security Printing & Minting Corporation of India
31. KIOCL Limited Limited
293
64. Shipping Corporation of India Limited 28. Goa Shipyard Limited

65. Solar Energy Corporation of India Limited 29. Handicrafts & Handlooms Export Corporation
Limited
66. State Trading Corporation of India Limited
30. Hindustan Cables Limited
67. Steel Authority of India Limited
31. Hindustan Fertilizer Corporation Limited
68. Telecommunications Consultants (India) Limited
32. HLL Lifecare Limited
69. THDC India Limited
33. Hindustan Newsprints Limited
70. Yantra India Limited
34. Hindustan Organic Chemicals Limited
Schedule- B
35. Hindustan Shipyard Limited
1. Air India Asset Holding Company Ltd.
36. Hindustan Steelworks Construction Company
2. Andrew Yule & Company Limited
Limited
3. Balmer Lawrie & Company Limited
37. HMT (International) Limited
4. Bharat Coking Coal Limited
38. HMT Machine Tools Limited
5. Bharat Dynamics Limited
39. HMT Watches Limited
6. Bharat Gas Resources Limited
40. India Optel Limited
7. Bharat Petro Resources Limited
41. India Tourism Development Corporation Limited
8. Bharat Pumps & Compressors Limited
42. India Trade Promotion Organization
9. Brahmaputra Crackers & Polymers Limited
43. Indian Drugs & Pharmaceuticals Limited
10. Brahmaputra Valley Fertilizer Corporation Limited
44. Indian Railway Catering & Tourism Corporation
11. Biotechnology Industry Research Assistance Limited
Council
45. Indian Rare Earths Limited
12. Braithwaite & Company Limited
46. Indian Renewable Energy Development Agency
13. Bridge & Roof Company (India) Limited Limited
14. British India Corporation Limited 47. Instrumentation Limited
15. Burn Standard Company Limited 48. M S T C Limited.
16. Cement Corporation of India Limited 49. Madras Fertilizers Limited
17. Central Coalfields Limited 50. Mahanadi Coalfields Limited
18. Central Electronics Limited 51. Mineral Exploration Corporation Limited
19. Central Mine Planning & Design Institute Limited 52. Mishra Dhatu Nigam Limited
20. Chennai Petroleum Corporation Limited 53. National Handloom Development Corporation
Limited
21. Cochin Shipyard Limited
54. National Jute Manufacturers Corporation Limited
22. Cotton Corporation of India Limited
55. National Projects Construction Corporation
23. Eastern Coalfields Limited Limited
24. Engineering Projects (India) Limited 56. National Seeds Corporation Limited
25. Fertilizer Corporation of India Limited 57. National Small Industries Corporation Limited
26. Garden Reach Shipbuilders & Engineers Limited 58. Northern Coalfields Limited
27. Gliders India Limited 59. Numaligarh Refinery Limited
294
60. Orissa Mineral Development Company Limited 22. HMT Bearings Limited
61. PEC Limited 23. HMT Chinar Watches Limited
62. Pawan Hans Limited 24. Hooghly Dock and Port Engineers Limited
63. Projects & Development India Limited 25. HSCC (India) Limited
64. Scooters India Limited 26. Hotel Corporation of India Limited
65. South Eastern Coalfields Limited 27. The Jute Corporation of India Limited
66. Troop Comforts Limited 28. Karnataka Antibiotics & Pharmaceuticals Ltd
67. Uranium Corporation of India Limited 29. Nagaland Pulp & Paper Company Limited
68. W A P C O S Limited 30. Nat ional Backward Classes F inance &
Development Corporation.
69. Western Coalfields Limited
31. National Film Development Corporation Limited
Schedule- C
32. National Handicapped Finance & Development
1. Andaman & Nicobar Islands Forest & Plantation Corporation.
Development Corporation Limited
33. National Minorities Development & Finance
2. Artificial Limbs Mfg. Corporation of India Corporation
3. Brathwaite Burn & Jessop Construction Company 34. National Research Development Corporation of
Limited India.
4. Bengal Chemicals & Pharmaceuticals Limited 35. Nat ional Saf ai Karamcharis F inance &
5. BHEL Electric Machines Limited Development Corporation.
6. Bharat Wagon & Engineering Company Limited 36. Nat ional Scheduled Castes F inance &
Development Corporation
7. The Bisra Stone Lime Company Limited
37. Nat ional Scheduled Tri bes F inance &
8. Broadcast Engineering Consultants India Limited Development Corporation
9. Central Cottage Industries Corporation of India 38. NEPA Limited
Limited
39. North Eastern Handicraf ts & Handl oom
10. Central Inland Water Transport Corporation Development Corporation Limited
Limited
40. North Eastern Regional Agricultural Marketing
11. Central Railside Warehouse Company Limited Corporation Limited
12. Certification Engineers International Limited 41. Rajasthan Electronics & Instruments Limited
13. Delhi Police Housing Corporation 42. Richardson & Cruddas (1972) Limited
14. EdCIL (India) Limited 43. STCL Limited
15. FCI Aravali Gypsum & Minerals (India) Limited 44. Tungabhadra Steel Products Limited
16. Ferro Scrap Nigam Limited Schedule- D
17. Hindustan Antibiotics Limited 1. Birds Jute & Exports Limited
18. HIL (India) Limited 2. Hindustan Fluorocarbons Limited
19. Hindustan Photo Films Manufacturing Company 3. Indian Medicines Pharmaceutical Corporation
Limited Limited
20. Hindustan Prefab Limited 4. Orissa Drugs & Chemicals Limited
21. Hindustan Salts Limited 5. Rajasthan Drugs & Pharmaceuticals Limited
295
Annexure-7
Statement of Scheme Wise Expenditure
Department of Public Enterprises Demand No. 47 2021-22

Scheme Rs. In Thousand
BE RE Total Expenditure
2021-22 2021-22 2021-22
(As on 31.03.2022)
CRR Scheme
Publications 0 0 0
Other Administrative Expenses 500 0 0
Professional & Special Services 29,600 25,200 20,848
Grants-in-Aid 500 100 0
CRR Scheme NER (Grant-in Aid) 3,400 1,700 1,700
CRR Total 34,000 27,000 22,548
RDC Scheme
Domestic Travel Expenses 1,200 700 654
Foreign Travel Expenses 500 0 0
Publications 1,000 4,700 2,116
Other Administrative Expenses 3,000 0 0
Professional & Special Services 29,200 19,400 26,381
Grants-in-Aid 500 100 100
Contribution ICPE 11,000 11,000 11,000
RDC Scheme NER (Grant-in-Aid) 5,100 5,100 5,100
RDC Total 51,500 41,000 45,351
Grand-Total 85,500 68,000 67,899
296
Annexure-8
Guidelines For Implementation of New Public Sector Enterprises (PSE) Policy
for CPSEs In Non-Strategic Sector
2.2 Preparation of CCEA Note seeking in-

principle: After identification of CPSEs for closure or
1.1 The Government notified the new Public Sector privatisation under the Non-Strategic sectors, DPE will
Enterprise (PSE) Policy on 4 th February, 2021 for prepare a Note for in-principle approval of the CCEA
Atmanirbhar Bharat. The new PSE Policy envisages regarding the CPSEs identified for closure and/ or for
classification of CPSEs into Strategic and Non-Strategic disinvestment in Non-Strategic sectors. Such note(s) for
Sectors and exempts certain CPSEs such as that setup in principle approval of CCEA will preferably be prepared
as not for profit companies under the Companies Act, separately for individual sectors falling under the category
2013 or those supporting vulnerable and weaker sections of “Non-Strategic Sector” of new PSE policy. The CPSEs
of society, from the scope of the Policy. The Strategic whi ch are approv ed in principle by CCEA f or
Sectors as per the policy are as under: disinvestment will be communicated to DIPAM for taking
i) Atomic Energy, Space, and Defence necessary action as per its extant procedure. Closure of
CPSEs will be done as per the process outlined below at
ii) Transport and Telecommunication Para 3.
iii) Power, Petroleum, Coal, and Other Minerals 3. Revised closure process of CPSEs:
iv) Banking, Insurance, and Financial Services 3.1 Once, the in-principle decision for closure of a
1.2 CPSEs in the Strategic Sector/ Non- Strategic CPSE is obtained from CCEA, an IMC will be constituted
Sector are to be taken up for privatisation, merger, by DPE to drive the process of the closure of CPSEs.
subsidiarisation with another CPSE or for closure. Only 3.1.1 The Ministry/Department concerned will proceed
a bare minimum presence of CPSEs in the aforesaid to work out the details of the closure. This would inter-
Strategic Sector is to be maintained. alia include estimation of budgetary support required for
financing the closure of the CPSE, the time-lines and
1.3 The Department of Public Enterprises (DPE) has
phasing of release of funds from the Central Government
been brought under the Ministry of Finance vide
notification dated 6th July, 2021 of Cabinet Secretariat and updating of records of the movable and immovable
and thereafter, Finance Secretary vide order dated 17th assets of the CPSE etc. The brief details of preparatory
activities are enumerated below:
August, 2021 demarked certain responsibilities between
DIPAM and DPE. DPE has been entrusted with the a. Statutory dues: The statutory dues/ liabilities
responsibility to identify CPSEs for closure or privatisation towards revenues, taxes, cesses and rates due
in Non-Strategic sector in consultation with administrative to Central Government or State Government or
ministries/departments and to take in principle approval to local authorities will be worked out by CPSE
from CCEA in respect of such identified CPSEs. Besides, under the supervision of its Administrative
DPE has also been entrusted with the task of setting up Ministry/ Department.
a Special Purpose Vehicle (SPV) for asset monetisation
once the SPV is approved by the Cabinet. DPE is also b. Serving Closure Notice: CPSE to give a general
required to drive the closure process for CPSEs approved notice to employees and other stakeholders
for closure, on the lines of disinvestment process being intimating about the intention of closure and also
run by DIPAM. write to the Ministry of Labour and Employment
regarding the same, as applicable under
1.4 Accordingly, the f ollowing guidelines are Industrial Relations Code, 2020. The CPSE with
prescribed. The closure guidelines as enumerated below the approval of the Administrative Ministry should
will supersede all the closure guidelines issued earlier. also notify the VRS Scheme
2. Implementation of new PSE policy by DPE: c. Dues of employees: Funds required for
2.1 Identification of CPSEs of Non-Strategic implementing VRS/VSS/ payment of wages/
Sectors for Closure and Disinvestment: Under the salaries and statutory dues in respect of the
employees till the time of their release by way of
New Public Sector Policy, DPE will identify the CPSEs
VRS/ VSS/ retrenchment will be worked out.
either for closure or privatization in the Non-Strategic
sectors in consultation with the concerned Administrative d. Liab ilities towards Secured Creditors
Ministries/Departments, NITI Aayog, Department of Estimation of the amount to be paid back to the
Expenditure and DIPAM. Secured Creditors based on the offers from them
297
for settlement at minimum value. Administrative period of lease, current land use, FAR and other rights
Ministry/Department may critically examine the relating to use of land, whether land compensation (partly/
best possible settlement including schedule of fully) paid by the CPSEs/ Central Government at the time
payment, waiver of interest and penalties with of acquisition, amount of compensation paid, status of
secured creditors. possession of land, encroachments, if any, geo-mapping
etc. will be done.
e. Dues payable to the Central Government: The
dues payable to the Central Government availed 3.1.4 Once the preparatory activities are completed by
in the form of loans from time to time, segregated the administrative Ministry/Department, a Draft Note for
into the principal outstanding amount and the Closure of the CPSE will be prepared by DPE based on
interest thereon shall be worked out. the inputs of preparatory activities and in consultation with
the concerned Administrative Ministry/Department for
f. MAT liability: In case the proposal involves closure of the CPSE on case-to-case basis. The same
waiver of outstanding GOI loans (and accrued will be placed before the IMC which after scrutiny will vet
interest thereon), the MAT liability on the same the Note. Thereafter, the approval of the Hon’ble Finance
should also be worked out. Minister (FM) will be taken.
g. Other liabilities: All other liabilities including any 3.1.5 If the Director(s) of the CPSE(s) fails to co-
to the unsecured creditors should be worked out. operate, the Administrative Ministry/ Department can take
a view on removing the Functional Directors including
h. Estimation of movable assets: Updating details the CMD and give additional charge of the CMD to the
of mov able assets including plant(s) & Joint Secretary concerned and charge of Functional
machineries and verification of inventory from an Directors to other senior officers in the administrative
independent third party e.g., a firm of Chartered Ministry/ Department as per extant guidelines in this
Accountants/Cost Accountants. Besides, Book regard. This information regarding removal of the
Value of the movable assets, the current Functional Directors including the CMD will be
estimated market value and realisable value from communicated to the PESB.
their sale will be worked out. Wherever movable
assets are on lease, negotiation with the lessor 3.2 Disposal of immovable assets
will be done by CPSE to ascertain whether lessor The process of closure of a CPSE and disposal of its
would take it back at market price or would like it immovable assets will be completely delinked. On
to be auctioned. Ascertaining whether movable approval of Closure Note, the Administrative Ministry/
assets are to be utilised by its holding company Department/CPSE shall proceed simultaneously but
(in case of subsidiary), if any or by the separately for alienation of immovable properties from
administrative Ministry/ Department. Market its books.
value of brand name, goodwill, trademarks, etc.
of the CPSE under closure may also be worked 3.2.1 The immovable assets will be alienated from the
out. In case, market value cannot be determined, CPSE in the manner as prescribed below:
the same shall be transferred to the concerned a) Return of leasehold land to the States: All
administrative Ministry/Department of the CPSE. kinds of leasehold land of the CPSE will be
returned back to the State Government without
i. Estimation of receivables: Ascertaining of trade
insisting on any compensation (if due as per
receivables, securities, loans and advances, etc.
lease agreement).
3.1.2 Estimation of budgetary support required for
b) Transfer of freehold land to Special Purpose
closure: Based on the exercise done as per para 3.1.1,
Vehicle (SPV) will be as per the procedure laid
an estimate will be made of requirement of funds for down for the operation of the SPV (to be set up
financing the closure of the CPSE. The CPSE’s own in DPE).
resources, including amount to be realised from sale of
movable assets, which may be available for settlement 3.2.2 Interim arrangement throu gh L and
of liabilities during the course of closure shall be worked Management Agency (LMA): Pending setting up of SPV,
out too. Thereafter, the requirement of budgetary support the closure cases wherein a Land Management Agency
from the Central Government shall be worked out. It is (LMA) such as NBCC has earlier been engaged for
however, clarified that the Central Government reserves disposal of land as per the DPE closure guidelines dated
the right to decide which of the requirements of funds it 14.06.2018, LMA will continue to manage the land and
will permit out of budgetary support. can dispose off the same to any appropriate agency at
best discovered price. The Forward Auction Platform of
3.1.3 Updating of land records of immovable GeM or MSTC can also be av ail ed by LMA or
assets: Updating of land records such as title deed, lease Administrative Ministry directly for disposal of immovable
hold land, freehold land, conditions of lease, remaining assets.
298
3.2.3 The Secretary of the Administrative Ministry/ (f) If the CPSE is not able to dispose of movable
Department will monitor the progress of alienation of assets within the stipulated time-frame, it should
immovable assets from the CPSE. be brought to notice of the Administrative Ministry/
Department by the CPSE. Thereafter, the
3.3 Implementation of VRS/VSS:
Administrative Ministry/ Department shall redress
(a) The Administrative Ministry/ Department through the matter within 15 days and shall take a
Board of CPSE will settle wages/salaries of decision on settlement of the disposal of movable
employees and statutory dues and complete the assets.
VRS/VSS process and payment of compensation
to non-VRS optees as per law. 3.6 Budgetary support from D/o Expenditure:
Based on the detailed liabilities to be settled as per the
(b) The CPSE staff shall be assigned specific tasks Closure Note, DPE will make a request for budgetary
during implementation of VRS/VSS so that all support to DoE in respect of the liabilities to be settled.
the groundwork is completed within the above- However, the right to decide as to which of the
mentioned period and there is no requirement of requirements of funds is to be permitted out of budgetary
retaining the staff during subsequent process of support would vest with the Central Government.
closure.
4. Filing of application before Registrar of
3.4 Settlement of liabilities Companies (RoC): Once the requisite formalities related
(a) The payment of statutory dues/ liabilities towards to settlement of all liabilities and assets are completed,
revenues, taxes, cesses and rates due to Central the Board of Directors of the CPSE shall take necessary
Government or State Government or to the local steps for filing the application for removal of name from
authorities to be completed first. the Register of Companies as given below:
(b) Administrative Ministry/Department will negotiate a) Apply under Section 248 of the Companies Act,
with the Secured Creditors to settle their dues at 2013 to the RoC for removal of the name of the
the minimum value as One Time Settlement CPSE from the Register of Companies with the
(OTS). new revised form STK-3A issued by Ministry of
Corporate Affairs (MCA) vide notification dated
(c) The order of priority of settlement of other
29th June, 2020 along with other forms (STK-2&4)
liabilities will be in the priority of distribution as
prescribed under the Companies (Removal of
mentioned in Section 53 of Insolvency &
Names of Companies from the Register of
Bankruptcy Code 2016.
Com panies) Rules, 2016 by MCA. T his
3.5 Disposal of movable assets: amendment enables the aut hori zed
representative (Under Secretary or its equivalent)
(a) The CPSE shall carry out the processes of of the concerned administrative Ministry/
disposal of movable assets including plant &
Department to furnish indemnity bond on behalf
machinery in a transparent manner through an
of the administrative Ministry/Government of
Auctioning Agency (such as MSTC) appointed /
India (Owner of CPSE) for any future liability
‘Forward Auction’ Platform available on GeM by
instead of by individual Directors of the CPSE.
the CPSE, under the supervision of administrative
Ministry/ Department. b) The Administrative Ministries/Departments and
(b) Intangible assets like brand name, goodwill, their CPSEs filing closure application before the
trademarks, intellectual property, etc. of the Registrar of Companies will also take a note of
CPSE under closure shall be transferred to the the MCA Circular No. 1/2020 dated 1st July, 2020
concerned administrative Ministry/Department of issued to all the Registrars of Companies to
the CPSE for disposing of separately. enable processing of applications of CPSEs
having pending litigations relating to service
(c) The leasehold movable assets may be returned matters, VRS/VSS of employees, so that the
to the lessor at latter’s option. same is not the ground for rejection of such
(d) In case, any of the movable assets are required closure applications.
by its holding company or by the administrative 5. Policy support: For any policy support or
Ministry/ Department, t he same m ay be clarification on any issue for completing the closure
transferred to them. process, as required by the administrative Ministry/
(e) The CPSE in consultation with the administrative Department, the same will be provided by the IMC. While
Ministry/ Department, if necessarily required, may taking the “in-principle” approval of CCEA, the approval
dispose of factory building structure along with will also be sought for empowering the Hon’ble Finance
disposal of movable assets. Minister to approve the cases of any deviation with respect
299
to the closure process of Non-Strategic sector CPSEs 7. Closure of subsidiaries/units of CPSEs: The
from the decision of CCEA. The concerned administrative process of closure of subsidiaries/JVs/units of CPSEs
Ministry/Department shall ref er the proposal for shall be carried out by the Board of Directors of the
clarification/policy support to DPE for placing before the Holding CPSE(s) in accordance with above guidelines.
IMC. The recommendations of IMC shall be thereafter
8. Process for on-going Cases: Cases in which
referred by DPE to Finance Minister for seeking approval.
the Administrative Ministry/ Department has obtained the
DPE will function as the secretariat for processing the
CCEA/ Cabinet approval for closure, the concerned
policy matters to be referred to Finance Minister.
administrative Ministry/Department will review and seek
6. Special cases: Closure u/s 248 of CA 2013 is the budgetary support from D/o Expenditure through
recommended as primary mode under the revised Financial Adviser (FA) within 15 days of the issue of these
guidelines. In complex cases especially involving guidelines to complete the closure process as per revised
exorbitantly high liabilities, IBC 2016 route may be mechanism. However, the right to decide as to which of
followed while providing adequate justification in the note the requirements of funds is to be permitted out of
for CCEA approval by DPE. The process of filing budgetary support would v est wit h the Cent ral
application under IBC 2016 shall be done within 3 months Government.
of receipt of Minutes of CCEA approval by concerned
9. Time-lines: The entire process of closure of CPSE
CPSE Board & its Administrative Ministry. In addition, in
shall be completed within the Timeframe mentioned in
respect of the listed CPSEs, the SEBI Delisting
Annex-I.
Regulations, 2009 and regulatory requirement(s) will be
complied with under the supervision of IMC before filing 10. The Finance Minister will be the competent
for removal of company’s name from the Register of authority for granting approval to make any changes in
Companies. these guidelines.
300
Annexure-I to Annexure-8
Timelines of activities for closure of CPSEs
Sl.No. Milestones/ Activities Time-Lines

1 In principle approval of closure / disinvestment of CPSEs in a Preparatory date (T0)
Non-Strategic Sector by the Cabinet/ CCEA.
Setting up of IMC for the Sector comprising Secretary, DPE as
Chairman, representatives of concerned Administrative
Ministry(ies), DIPAM, NITI Aayog and co-opted members, if any
2 Preparation of Draft Closure Note for each CPSE by IMC after T0 + 3 months
ascertaining statutory dues, liabilities such as taxes, cess, MAT,
dues to secured and unsecured creditors, funds required for VRS
/ VSS, wages due to employees till the time they are released
through VRS / VSS, receivables, value of movable and
immovable assets, etc
3 Vetting of Draft Closure Note by IMC and forwarding the same for T0 + 5 months
approval of FM on case-to-case basis.
4 Return of leasehold land to the State government T0 + 7 months
5 Transfer of freehold land to Special Purpose Vehicle (SPV)
6 Intimation to the Ministry of Labour and Employment in respect of
closure
7 Request for budgetary support from Department of Expenditure.
8 Release of budgetary grants by Department of Expenditure
9 Transfer of assets to Holding company/ administrative Ministry/
Department
10 VRS / VSS to employees and settlement of wages/salaries of
employees and statutory dues (In case employees not opting for
VSR / VSS, retrenchment of employees)
11 Settlement of statutory dues/ liabilities towards revenues, taxes
etc. payable to State Government / Central Government /
Municipal Bodies
12 Payment of secured creditors as one-time settlement
13 Disposal of movable assets
14 Application to Registrar of Companies for removal of name of T0 + 7 months and 45 days.
CPSE
301
Annexure-II to Annexure-8
Definitions
i) Preparatory Date (T0) shall be the date on which Engineering Projects (India) Ltd.(EPIL) or a public
‘in principle’ approval of closure of CPSE has agency under Ministry of Housing and Urban
been taken by the CCEA. Affairs (MoHUA) which has been appointed and
hav e the experience of management,
ii) CPSE: Certain statutory corporations and all development and disposal/monetisation of
Government Companies in which more than 50% immovable assets.
equity or controlling stake is held by the Central
Government are classified as CPSEs. The vi) Forward Auction Platform: It is a facility
Subsidiaries of these Companies in which any available on GeM for auction of movable and
CPSE has more than 50% equity are also immovable items in a transparent method.
categorised as CPSEs, if registered in India.
vii) Auctioning Agency (AA) A CPSE such as Metal
iii) Inter-Ministerial Committee (IMC): Constituted Scrap Trading Corporation (MSTC), which can
by DPE and comprising Secretary, DPE as be nominated by the administrative Ministry/
Chairman and representatives of concerned Department/ Board of the CPSE under closure
Administrative Ministry (ies), DIPAM and NITI to dispose of movable and immovable assets
Aayog as its members, to drive the closure through e-auction in a transparent manner.
process. The IMC can also co-opt any other
member(s). Secretarial assistance to IMC will be viii) Book Value: For the purpose of these guidelines,
provided by DPE. it is the carrying value of the assets in the balance
sheet of the CPSE.
iv) Special Purpo se Vehicle (SPV): 100%
gov ernment owned company under the ix) Immovable Asset: Immovable Asset is a piece
administrative control of DPE to facilitate of land/property tied to the land, such as estate,
monetization of non-core assets of the Ministries/ building, premises, etc.
Departments and Public Sector Enterprises.
x) Movable Assets: Any asset ot her t han
v) Land Management Agency (LMA): It can be a Immov able asset like Plant & Machinery,
CPSE such as NBCC (India) Ltd.(NBCC)/ Furniture, vehicles etc.
302
For Public Contact Purposes:
Ministry of Finance
North Block, New Delhi – 110001
Phone : 011-23095120, 23092453
Website: http://www.finmin.nic.in/the _ministry/dept_eco_affairs/index.asp
Phone : 011-23095661, 23095613
Website: http://www.finmin.nic.in/the _ministry/dept_expenditure/index.asp
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

Jeevan Deep Building, Parliament Street, New Delhi – 110001
Phone : 011-23748721, 23748734
Website: http://www.finmin.nic.in/the-_ministry/dept_fin_services/fin_services.asp

Block No.14, C.G.O. Complex, Lodi Road, New Delhi – 110003
Phone : 011-24362673
Website: http://www.finmin.nic.in/the-_ministry/dept_dpe.gov.in
i
Government of India
MINISTRY OF FINANCE
ANNUAL REPORT 2022-2023

MINISTRY OF FINANCE
ANNUAL REPORT
PRINTED AT BUDGET PRESS, MINISTRY OF FINANCE, NEW DELHI 2022-2023

Annual Report 2022-23 (Eng.)

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ºÉiªÉàÉä´É VÉªÉiÉä

ANNUAL REPORT 2022-2023

3. Financial Markets Division 9

4. Financial Stability and Cyber Security Division 23

5. Financial Sector Reforms and Legislation Division 25

6. Infrastructure Policy and Planning Division 28

7. Investment and Digital Economy Division 31

8. FB & ADB Division 38

9. International Economic Relations Division 46

10. Aid Accounts & Audit Division 53

11. Administration Division 54

12. Bilateral Cooperation and Sustainable Finance Division 57

13. Integrated Finance Division 64

14. Coin & Currency Division 68

15. Other Multilateral Institutions Division 74

16. Infrastructure Support and Development Division 77

II. Vision 221

III. Mission 221

IV. Organisational Structure 221

V. Current Policy on Disinvestment in CPSEs 221

VI. Disinvestment Performance 223

VII. Other Initiatives 225

VIII. Challenges to Disinvestment 226

IX. Dividend Receipts 226

X. Initiatives Undertaken for Persons with Disabilities,

XI. Initiatives Relating to Gender Budgeting and

XII. Official Language Policy 226

XIII. E-Governance 226

XIV. Redressal of Public Grievances 227

XV. Vigilance Machinery 227

XVI. Right to Information Act, 2005 227

XVII. Initiatives for Good Governance 227

XVIII. Audit Paras/Objections 228

XIX. Integrated Finance Unit 228

XX. Participation in ‘Azadi Ka Amrit Mahotsav’ (AKAM) 228

Appendix I - Organisation Chart 231

2. Developments in Banking Sector 237

3. Financial Inclusion 242

4. Key Schemes 245

5. Agriculture Credit 247

6. Priority Sector Lending (PSL) 249

7. Insurance Sector 251

8. Pension Sector 254

9. Financial Institutions 258

10. Measures taken during COVID-19 pandemic 261

11. Representations from SCs, STs, OBCs and

12. Vigilance 263

13. Special Court 263

14. Office of the Custodian 264

15. Debt Recovery Appellate Tribunal/Debt Recovery Tribunal 264

16. Information Technology and Cyber Security 265

17. Disposal of Public Grievances 265

18. Right to Information (RTI) Act, 2005 267

19. Audit Paras 267

Organisation Chart 271

Department of Public Enterprises

2. Organisation and Autonomy of CPSEs 273

3. Wage Policy and Manpower Rationalization 275

4. Categorisation of CPSEs 276