ECONOMY by VIVEK SINGH

2021-04-06 07:12:21 The above is article from Express. Though a bit technical, but let us try to understand.

Last year Govt. suspended the IBC 2016 for one year from 25th March 2020 to 24th March 2021 due to Covid-19 pandemic. And it also raised the threshold limit of default from Rs. 1 lakh to Rs. 1 crore for insolvency proceedings under IBC 2016.

Now the IBC 2016 has been amended through ordinance to introduce a "Pre Pack" scheme for MSMEs. The details are given below:

1) If an MSME has defaulted and the default is of less than Rs. 1 crore then "Pre-Pack" scheme can be used. Under this scheme the previous promoters and the creditors will take up a resolution plan to NCLT for approval rather than resolution plan suggested by outsiders through open bidding process in which case the company may go to new owners. And during this resolution process, the management of the firm (MSME) will remain with the original promoters. [Under normal IBC proceedings, the management control of the firm passes on to Resolution Professionals]

2) If the resolution plan does not offer full recovery for operational creditors then an open bidding process for submission of resolution plan can be conducted in which there will be chances that the company (MSME) may go to some other new owners and THIS will force the original promoters to compensate the operational creditors. This is called "Swiss Challenge". It can be applied elsewhere in other projects also.

3) The time for resolution under pre pack scheme has been fixed for 120 days. Open / Comment

2021-04-06 06:46:41 Open / Comment

2021-04-05 07:13:26 Rather than reading the article on todays editorial page on "The Kerala model at the crossroads", please read the following:

Kerala Model of Development
At independence, Kerala had a literacy rate of 51%, while the national average was 18%. In the post-independence period also, Kerala improved its health and educational parameters because of:
a) Ruled for many years by democratically elected communist government which broke backbone of feudal system by introducing land reforms. It spent heavily on public healthcare and education. Focus was more on redistribution rather than income growth.
b) Role of christian missionary, Shree Narayan Guru, Kingdom of Travancore in spreading education
With reference to human development indices, Kerala seemed to show a standard of living which was comparable with life in developed nations, on a fraction of the income. The development standard in Kerala is comparable to that of many first world nations, and is widely considered to be the highest in India at that time (In 1970s a study was conducted on the development of Kerala which is termed as Kerala Model of development). The Kerala model is markedly different from the conventional development thinking which focusses on achieving high GDP growth rates.
Despite having high standards of human development, the Kerala Model ranks low in terms of industrial and economic development. The high rate of education in the region has resulted in a brain drain, with many citizens migrating to other parts of the world for employment. The job market in Kerala is forcing many to relocate to other places.
https://www.thehindu.com/opinion/op-ed/redirecting-money-from-the-gulf/article29674257.ece

Of late there has been a focus on improving infrastructure such as roads, bridges, industrial parks, public sector Internet project Kerala Fibre Optic Network, power transmission network through establishment of Kerala Infrastructure Investment Fund Board (KIIFB) which has the potential to generate employment and growth for the state in future.

Gujarat model of Development:
https://www.livemint.com/Politics/RllLejcmnaOxT5IvfNoeUN/India-jobs-crisis--flaws-in-Gujarat-model-of-development.html Open / Comment

2021-04-04 18:19:53


Must watch Open / Comment

2021-04-04 07:37:50 No relevant news for economy today. The ECO MCQ 500 PDF will be released on 20th April. Open / Comment

2021-04-03 06:43:39 Source: Hindu
Just read the highlighted part.

Millets are coarse grains and a repository of protein, fibre, vitamins and minerals. They include jowar (sorghum), ragi (finger millet), korra (foxtail millet), arke (kodo millet), sama (little millet), bajra (pearl millet), chena/barr (proso millet) and sanwa (barnyard millet).

You can also read the following article on Millets, its background and usage/benefits.
https://www.livemint.com/Leisure/o4kfYaS3XMDDJhqgmObd3L/Why-should-we-eat-millets.html Open / Comment

2021-04-02 07:01:57 Nothing relevant today for Economy. Open / Comment

2021-04-01 09:21:26 Just for Information:
The Foreign Trade Policy 2015-2020 which was for 5 years period from 1st April 2015 to 31st March 2020 was earlier extended till 31st March 2021 due to Covid-19, has now been further extended by 6 months till 30th Sept. 2021. This policy determines various export/import incentives and restrictions. Open / Comment

2021-04-01 09:16:22 Source: PIB
A general article to read and just for information. Non need to memorize anything. Open / Comment

2021-04-01 08:49:04 Source: Indian Express
A good article on India Pakistan Trade and political relation.
At least read the highlighted part. Open / Comment