Mukesh D. Ambani

Mukesh D. Ambani

Born: April 19, 1957

is a Chemical Engineer from University Institute of Chemical Technology (earlier University Department of Chemical Technology), University of Mumbai (earlier University of Bombay). He has pursued MBA from Stanford University, USA.

Mukesh D. Ambani, son of Dhirubhai H. Ambani, Founder Chairman of the Company joined Reliance in 1981. He initiated Reliance's backward integration journey from textiles into polyester fibres and further into petrochemicals, petroleum refining and going up-stream into oil and gas exploration and production. He created several new world class manufacturing facilities involving diverse technologies that have raised Reliance's petrochemicals manufacturing capacities from less than a million tonnes to about twenty million tonnes per year.

Working hands-on, Mukesh D. Ambani led the creation of the world's largest grassroots petroleum refinery at Jamnagar, India, with a current capacity of 660,000 barrels per day (33 million tonnes per year) integrated with petrochemicals, power generation, port and related infrastructure. Further, he steered the setting up of another 27 million tonnes refinery next to the existing one in Jamnagar. An aggregate refining capacity of 1.24 million barrels of oil per day has transformed "Jamnagar" as the 'Refining Hub of the World'.

In September 2008, when the first drop of crude oil flowed from the Krishna-Godavari basin, Mukesh D. Ambani's vision of energy security for India was being realized. Under his leadership, RIL is set to transform India's energy landscape from the oil & gas flowing from Dhirubhai 1 & 3 Natural gas - a low carbon, low polluting green fuel that will flow from these will create value and be beneficial to a large section of India's society.

Mukesh D. Ambani had set up one of the largest and most complex information and communications technology initiative in the world in the form of Reliance Infocomm Limited (now Reliance Communications Limited).

Mukesh D. Ambani is also steering Reliance's development of infrastructure facilities and implementation of a pan-India organized retail network spanning multiple formats and supply chain infrastructure.

Mukesh D. Ambani's achievements have been acknowledged at national and international levels. Over the years, some of the awards and recognition bestowed on him are :

• Conferred the 'Indian Corporate Citizen of the Year' by the India Leadership conclave 2009.
• Bestowed the US-India Business Council (USIBC) 'Global Vision' 2007 Award for Leadership in 2007.
• Conferred 'ET Business Leader of the Year' Award by The Economic Times (India) in the year 2006.
• Conferred the Degree Honoris Causa, Honorary Doctorate by the Maharaja Sayajirao University in 2007.
• Conferred the India Business Leadership Award by CNBC-TV18 in 2007.
• Received the first NDTV-Profit 'Global Indian Leader Award' from Hon'ble Prime Minister of India, Manmohan Singh in New Delhi in the year 2006.
• Had the distinction and honour of being the Co-chair at the World Economic Forum in Davos, Switzerland in 2006.
• Ranked 42nd among the 'World's Most Respected Business Leaders' and second among the four Indian CEOs featured in a survey conducted by Pricewaterhouse Coopers and published in Financial Times, London, in 2004.
• Conferred the World Communication Award for the 'Most Influential Person' in Telecommunications by Total Telecom, in 2004.
• Conferred the 'Asia Society Leadership Award' by the Asia Society, Washington D.C., USA, in 2004.

Mukesh D. Ambani is a member of the Prime Minister's Council on Trade and Industry, Government of India and the Board of Governors of the National Council of Applied Economic Research, New Delhi.

On invitation to Mukesh D. Ambani,Reliance Industries Limited, became a Council Member of World Business Council for Sustainable Development (WBCSD) in 2007. Ambani has been elected as Vice Chairman of WBCSD Executive Committee in 2008.

Further, he is a member of the Indo-US CEOs Forum, the International Advisory Board of Citigroup, International Advisory Board of the National Board of Kuwait, Advisory Council for the Graduate School of Business, Stanford University, International Advisory Board of Brookings, International Advisory Board of Council on Foreign Relations, Member of The Business Council, and McKinsey Knowledge Advisory Council.

He is the Chairman, Board of Governors of the Indian Institute of Management, Bangalore, Chairman of Pandit Deendayal Petroleum University, Gandhinagar, Co-Chair of India-Russia CEO Council, Co-Chair of Japan-India Business Leader's Forum and a member of the Advisory Council of the Indian Institute of Technology, Mumbai.

Mukesh D. Ambani is the Chairman of Reliance Retail Limited and a Director of Reliance Europe Limited and a Private Limited Company.

At RIL, Mukesh D. Ambani is the Chairman of the Finance Committee and the Employees Stock Compensation Committee.

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Sunita L. Williams

Sunita L. Williams

Name: Sunita L. Williams (Commander, USN)
NASA Astronaut

Personal Data: Born September 19, 1965 in Euclid, Ohio, but considers Needham, Massachusetts to be her hometown. Married to Michael J. Williams.

Although they have no children, Labrador retrievers and a crazy Jack Russell Terrier named Gorby have added their share of excitement to their lives. Recreational interests include running, swimming, biking, triathlons, windsurfing, snowboarding and bow hunting. Her parents, Dr. Deepak and Mrs. Bonnie Pandya, reside in Falmouth, Massachusetts.

Education: Needham High School, Needham, Massachusetts, 1983. B.S., Physical Science, U.S. Naval Academy, 1987.
M.S., Engineering Management, Florida Institute of Technology, 1995.

Organisation: Society of Experimental Test Pilots, Society of Flight Test Engineers, American Helicopter Association.

Special Honors: Awarded Navy Commendation Medal (2), Navy and Marine Corps Achievement Medal, Humanitarian Service Medal and various other service awards.

Experience: Williams received her commission as an Ensign in the United States Navy from the United States Naval Academy in May 1987.

After a six-month temporary assignment at the Naval Coastal System Command, she received her designation as a Basic Diving Officer and then reported to Naval Aviation Training Command. She was designated a Naval Aviator in July 1989. She then reported to Helicopter Combat Support Squadron 3 for initial H46, Seaknight, training.

Upon completion of this training, she was assigned to Helicopter Combat Support Squadron 8 in Norfolk, Virginia, and made overseas deployments to the Mediterranean, Red Sea and the Persian Gulf in support of Desert Shield and Operation Provide Comfort.

In September 1992 she was the Officer-in-Charge of an H-46 detachment sent to Miami, Florida for Hurricane Andrew Relief Operations onboard USS Sylvania. Williams was selected for United States Naval Test Pilot School and began the course in January 1993.

After graduation in December 1993, she was assigned to the Rotary Wing Aircraft Test Directorate as an H-46 Project Officer, and V-22 Chase Pilot in the T-2. While there she was also assigned as the squadron Safety Officer and flew test flights in the SH-60B/F, UH-1, AH-1W, SH-2, VH-3, H-46, CH-53 and the H-57.

In December 1995, she went back to the Naval Test Pilot School as an Instructor in the Rotary Wing Department and the school's Safety Officer. There she flew the UH-60, OH-6 and the OH-58. From there she was assigned to the USS Saipan (LHA-2), Norfolk, Virginia, as the Aircraft Handler and the Assistant Air Boss. Williams was deployed onboard USS Saipan when she was selected for the astronaut program.

She has logged over 2770 flight hours in more than 30 different aircraft.

NASA Experience: Selected by NASA in June 1998, she reported for training in August 1998.

Astronaut Candidate Training included orientation briefings and tours, numerous scientific and technical briefings, intensive instruction in Shuttle and International Space Station systems, physiological training and ground school to prepare for T-38 flight training, as well as learning water and wilderness survival techniques.

Following a period of training and evaluation, Williams worked in Moscow with the Russian Federal Space Agency on the Russian contribution to the International Space Station and with the first Expedition crew to the ISS.

Following the return of Expedition 1, Williams has worked within the Robotics branch on the ISS Robotic Arm and the follow on Special Purpose Dexterous Manipulator. As a NEEMO 2 crewmember she lived underwater in the Aquarius habitat for 9 days. She is currently assigned to the Expedition-14 crew. She will join Expedition 14 in progress, to serve as a flight engineer, after traveling to the International Space Station with the crew aboard STS-116.

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N. R. Narayana Murthy

N. R. Narayana Murthy

Mr. N. R. Narayana Murthy is the Chairman of the Board and Chief Mentor of Infosys Technologies Limited. He founded Infosys in 1981 along with six other software professionals and served as the CEO for 21 years before handing over the reins of the company to co-founder Nandan M. Nilekani in March 2002. Under his leadership, Infosys was listed on NASDAQ in 1999. He served as the Executive Chairman of the Board and Chief Mentor from 2002 to 2006.

Mr. Murthy articulated, designed and implemented the Global Delivery Model, which has become the foundation for the success of IT services outsourcing from India. He has also led key corporate governance initiatives in India.

Mr. Murthy is an IT advisor to several Asian countries. He serves as an independent director on the boards of several global companies including Unilever, London and DBS Bank, Singapore. He is also a member of the advisory boards and councils of several educational institutions including Wharton, Cornell, INSEAD, Stanford, Tokyo University, SMU - Singapore, Indian Institute of Information Technology-Bangalore (IIIT-B) and ESSEC, Paris.

Mr. Murthy is the recipient of numerous awards and honors. The Economist ranked him 8th on its list of 15 most admired global leaders in 2005. He was ranked 28th among the world's most respected business leaders by The Financial Times in 2005. In 2004, TIME magazine identified him as one of ten global leaders who are helping shape the future of technology. He was featured in BusinessWeek’s “The Stars of Asia” consecutively from 1998 to 2000. He was voted the “World Entrepreneur of the Year” by Ernst & Young in 2003 and as India's most powerful CEO for three consecutive years (2004 to 2006) by The Economic Times. He received the Ernst Weber Engineering Leadership medal from The Institute of Electrical and Electronics Engineers in 2007 for his pioneering role in the globalization of IT services.

Mr. Murthy holds a B. E. (Electrical) from the University of Mysore (1967) and M. Tech. (Electrical) from the Indian Institute of Technology, Kanpur (1969). He has been conferred honorary doctorate degrees by leading universities across the world.

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Bill Gates

Bill Gates

William (Bill) H. Gates is chairman of Microsoft Corporation, the worldwide leader in software, services and solutions that help people and businesses realize their full potential. Microsoft had revenues of US$51.12 billion for the fiscal year ending June 2007, and employs more than 78,000 people in 105 countries and regions.

On June 15, 2006, Microsoft announced that effective July 2008 Gates will transition out of a day-to-day role in the company to spend more time on his global health and education work at the Bill & Melinda Gates Foundation. After July 2008 Gates will continue to serve as Microsoft’s chairman and an advisor on key development projects.

In his junior year, Gates left Harvard University to devote his energies to Microsoft, a company he had begun in 1975 with his childhood friend Paul Allen. Guided by a belief that the computer would be a valuable tool on every office desktop and in every home, they began developing software for personal computers. Gates' foresight and his vision for personal computing have been central to the success of Microsoft and the software industry.

Under Gates' leadership, Microsoft's mission has been to continually advance and improve software technology, and to make it easier, more cost-effective and more enjoyable for people to use computers. The company is committed to a long-term view, reflected in its investment of approximately $7.1 billion on research and development in the 2007 fiscal year.

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Ban Ki-Moon

Ban Ki-Moon

Ban Ki-moon of the Republic of Korea, the eighth Secretary-General of the United Nations, brings to his post 37 years of service both in government and on the global stage. 

Career highlights

At the time of his election as Secretary-General, Mr. Ban was his country’s Minister of Foreign Affairs and Trade. His long tenure with the ministry included postings in New Delhi, Washington D.C. and Vienna, and responsibility for a variety of portfolios, including Foreign Policy Advisor to the President, Chief National Security Advisor to the President, Deputy Minister for Policy Planning and Director-General of American Affairs. Throughout this service, his guiding vision was that of a peaceful Korean peninsula, playing an expanding role for peace and prosperity in the region and the wider world. 

Mr. Ban has longstanding ties with the United Nations, dating back to 1975, when he worked for the Foreign Ministry’s United Nations division. That work expanded over the years, with assignments as First Secretary at the ROK’s Permanent Mission to the UN in New York, Director of the UN Division at the ministry’s headquarters in Seoul, and Ambassador to Vienna, during which time, in 1999, he served as Chairman of the Preparatory Commission for the Comprehensive Nuclear Test Ban Treaty Organization. In 2001-2002, as Chef-de-Cabinet during the ROK’s Presidency of the General Assembly, he facilitated the prompt adoption of the first resolution of the session, condemning the terrorist attacks of 11 September, and undertook a number of initiatives aimed at strengthening the Assembly’s functioning, thereby helping to turn a session that started out in crisis and confusion into one in which a number of important reforms were adopted.

Mr. Ban has also been actively involved in issues relating to inter-Korean relations. In 1992, as Special Advisor to the Foreign Minister, he served as Vice Chair of the South-North Joint Nuclear Control Commission following the adoption of the historic Joint Declaration on the Denuclearization of the Korean Peninsula. In September 2005, as Foreign Minister, he played a leading role in bringing about another landmark agreement aimed at promoting peace and stability on the Korean peninsula with the adoption at the Six Party Talks of the Joint Statement on resolving the North Korean nuclear issue. 

Education

Mr. Ban received a bachelor's degree in international relations from Seoul National University in 1970. In1985, he earned a master's degree in public administration from the Kennedy School of Government at Harvard University. 

Prizes and awards

Mr. Ban has received numerous national and international prizes, medals and honours. In 1975, 1986 and again in 2006, he was awarded the ROK’s Highest Order of Service Merit for service to his country. 

Personal

Mr. Ban was born on 13 June 1944. He and his wife, Madam Yoo (Ban) Soon-taek, whom he met in high school in 1962, have one son and two daughters. In addition to Korean, Mr. Ban speaks English and French.

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Barack Obama

Barack Obama

Barack Hussein Obama, Jr. (born August 4, 1961) is the junior United States Senator from Illinois and a candidate for the Democratic nomination in the 2008 U.S. presidential election.

Born to a Kenyan father and an American mother, he spent most of his early life in Honolulu, Hawaii. From ages six to ten, he lived in Jakarta, Indonesia with his mother and Indonesian stepfather. A graduate of Columbia University and Harvard Law School, Obama worked as a community organizer, university lecturer, and civil rights lawyer before running for public office and serving in the Illinois Senate from 1997 to 2004. After an unsuccessful bid for a seat in the U.S. House of Representatives in 2000, he announced his campaign for U.S. Senate in 2003.

The following year, while still an Illinois state legislator, Obama delivered the keynote address at the 2004 Democratic National Convention. He was elected to the U.S. Senate in November 2004 with 70% of the vote. As a member of the Democratic minority in the 109th Congress, he co-sponsored bipartisan legislation for controlling conventional weapons and for promoting greater public accountability in the use of federal funds. He also made official trips to Eastern Europe, the Middle East, and Africa. In the current 110th Congress, he has sponsored legislation on lobbying and electoral fraud, climate change, nuclear terrorism, and care for returned U.S. military personnel.

Since announcing his presidential campaign in February 2007, Obama has emphasized ending the Iraq War, increasing energy independence, and providing universal health care as his top three priorities. He married in 1992 and has two daughters. He has written two bestselling books: a memoir of his youth titled Dreams from My Father, and The Audacity of Hope, a personal commentary on U.S. politics.

Obama's Books

• Dreams from My Father: A Story of Race and Inheritance 

• The Audacity of Hope: Thoughts on Reclaiming the American Dream 

• Change We Can Believe In: Barack Obama's Plan to Renew America's Promise 

• Three Wishes by Barack Obama by Barack Obama 

Children/Illustration

• Yes, We Can! A Salute To Children From President Obama's Victory Speech 

• Our Enduring Spirit: President Barack Obama's First Words to America (Illustrator: Greg Ruth)

• Of Thee I Sing: A Letter to My Daughters by Barack Obama 

AudioBook

• The Essential Barack Obama: The Grammy Award-Winning Recordings

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First in India

First in India

1.	British Governor General of Bengal	Warren Hastings
2.	Governor General of Independent India	Lord Mountbatten
3.	Commander-in-chief of Free India	General Roy Bucher
4.	Cosmonaut	Sqn. Ldr. Rakesh Sharma
5.	Emperor of Moghul Dynasty in India	Babar
6.	Field Marshal	S. H. F. J. Manekshaw
7.	Indian Governor General of Indian Union	C. Rajagopalachari
8.	Indian I.C.S. Officer	Satyendra Nath Tagore
9.	Indian Member of Viceroy's Executive Council	Sri S.P. Sinha
10.	Indian to swim across English Channel	Mihir Sen
11.	Indian woman to swim across-English Channel	Miss Arati Saha
12.	Man to climb Mount Everest	Tenzing Norgay
13.	Man to climb Mount Everest without Oxygen	Phu Dorjee
14.	Man to climb Mount Everest twice	Nwang Gombu
15.	Nobel Prize winner	Rabindra Nath Tagore
16.	President of Indian National Congress	W. C. Banerjee
17.	President of Indian Republic	Dr. Rajendra Prasad
18.	Talkie Film	Alam Ara (1931)
19.	Test Tube Baby (Documented)	Indira
20.	Viceroy of India	Lord Canning
21.	Woman Minister of Indian Union	Rajkumari Amrit Kaur
22.	Woman Chief Minister of State	Mrs. Sucheta Kriplani
23.	Woman Governor	Mrs. Sarojini Naidu
24.	Woman President of Indian National Congress	Dr. Annie Besant
25.	Woman Prime Minister	Mrs. Indira Gandhi
26.	Woman Speaker of a State Assembly	Mrs. Shanno Devi
27.	Prime Minister of India	Pt. Jawahar Lal Nehru
28.	Muslim President of Indian Union	Dr. Zakir Hussain
29.	Speaker of Lok Sabha	G. V. Mavlankar
30.	Woman to climb mount Everest	Bachhendri Pal
31.	Woman Judge in Supreme Court	Mrs. Meera Sahib Fatima Biwi
32.	Woman Chief Justice of a High Court	Smt. Leela Seth
33.	Indian Woman to go in space (Now U.S. Citizen)	Kalpana Chawla
34.	The first Indian weightlifter to win bronze medal in Olympics	Karnam Malleshwari (Sydney, in 2000)
35.	The First Indian World Chess Champion	Vishwanathan Anand
36.	India's first paperless Newspaper	The News Today (Launched on Jan. 3, 2001)
37.	India's First woman Merchant Navy Officer	Sonali Banerjee
38.	The first Dalit Speaker of the Lok Sabha	G. M. C. Balyogi
39.	The first Vice-President of India to die in harness	Krishna Kant
40.	The first Indian woman cricketer to score double century	Mithali Raj (August 2002 playing  against England)
41.	The first woman Air Vice-Marshal	P. Bandopadhyaya
42.	The first Indian to be appointed as United Nations Civilian Police Advisor	Ms. Kiran Bedi
43.	The first astronaut of Indian origin to perish aboard U.S. space shuttle in a tragic accident	Dr. Kalpana Chawla (Columbia space shuttle, Feb. I, 2003)
44.	The first woman to be appointed Deputy Governor of Reserve Bank of India	K. J. Udeshi (appointed on June 10, 2003)
45.	The first Indian girl to register a win in a Wimbledon tournament	Sania Mirza (2003)
46.	The first Indian lady to win a medal in World Athletic Championship	Anju Bobby George (Aug. 2003)
47.	The first woman Chairman and Managing Director of NABARD	Mrs. Ranjana Kumar
48.	The highest individual test scorer of India	Virendra Sehwag ( 309 runs in the  first test in Multan against Pakistan)
49.	The first Indian cricketer to make double centuries five times	Rahul Drgvid (playing test against Pakistan in Pakistan in. April 2004)
50.	The first Orissa woman to top I.A.S.	Smt. Roopa Misra (Indian Civil Services Exam., 2003)
51.	The first Sikh Prime Minister of India	Dr. Manmohan Singh
52.	The first woman Director General of Police of a State	Kanchan C. Bhattacharya (DGP Uttaranchal)
53.	The first woman to be appointed as the crime branch chief	MeeriJ Borwankar (took over as crime branch chief of Mumbai police)
54.	The first woman to reach the rank of Lt. General in the Indian army	Puneeta Arora (Commandant, Armed Forces Medical College, Pune)
55.	The first Indian to cross seven important seas by swimming	Bula Chaudhury
56.	The first woman to become Indian Air Force's first woman Air Marshal	Air Marshal Padma Bandhopadhyay
57.	The first youngest MP, at the age of 25 years	Dharmendra Yadav (Mainpuri : Samajwadi Party MP)
58.	India's first woman athlete to win WTA open Tennis title	Sania Mirza (Feb. 2005, Hyderabad)
59.	The first Indian to set a world record of ever having reached the highest of heights yet in a hot balloon	Vijaypath Singhania (Nov. 26, 2005. 69852 ft.)
60.	The first wonder child of Orissa only about 4 years and a half of age completes a race of 65 km.	Budhia (May 2006)
61.	The first woman Commissioner of Police of an Indian metro (Chennai Metro Police)	Letika Saran
62.	The first Indian to Ski to the North Pole	Ajeet Bajaj (April 26, 2006)
63.	The first sportsman ever to win Gold Medal in Shooting in the World Shooting Championship	Abhinav Bindra (July 24, 2006)
64.	The first person of Indian origin to win the Miss Great Britain title	Preeti Desai (2006)
65.	The first woman President of the Republic of India	Pratibha Patil

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Recommendations of the Twelfth Finance Commission

Recommendations of the Twelfth Finance Commission

Restructuring Public Finances

• Centre and States to improve the combined tax-GDP ratio to 17.6 per cent by 2009-10.
• Combined debt-GDP ratio, with external debt measured at historical exchange rates, to be brought down to 75 per cent by 2009-10.
• Fiscal deficit to GDP targets for the Centre and States to be fixed at 3 per cent.
• Revenue deficit of the Centre and States to be brought down to zero by 2008-09.
• Interest payments relative to revenue receipts to be brought down to 28 per cent and 15 per cent in the case of the Centre and States, respectively.
• States to follow a recruitment policy in a manner so that the total salary bill, relative to revenue expenditure, net of interest payments, does not exceed 35 per cent.
• Each State to enact a fiscal responsibility legislation providing for elimination of revenue deficit by 2008-09 and reducing fiscal deficit to 3 per cent of State Domestic Product.
• The system of on-lending to be brought to an end over time. The long term goal should be to bring down debt-GDP ratio to 28 per cent each for the Centre and the States.

Sharing of Union Tax Revenues

• The share of States in the net proceeds of shareable Central taxes fixed at 30.5 per cent, treating additional excise duties in lieu of sales tax as part of the general pool of Central taxes. Share of States to come down to 29.5 per cent, when States are allowed to levy sales tax on sugar, textiles and tobacco.
• In case of any legislation enacted in respect of service tax, after the notification of the eighty eighth amendment to the Constitution, revenue accruing to a State should not be less than the share that would accrue to it, had the entire service tax proceeds been part of the shareable pool.
• The indicative amount of overall transfers to States to be fixed at 38 per cent of the Centre’s gross revenue receipts.

Local Bodies

• A grant of Rs.20,000 crore for the Panchayati Raj institutions and Rs.5,000 crore for urban local bodies to be given to States for the period 2005-10.
• Priority to be given to expenditure on operation and maintenance (O&M) costs of water supply and sanitation, while utilizing the grants for the Panchayats. At least 50 per cent of the grants recommended for urban local bodies to be earmarked for the scheme of solid waste management through public-private partnership.

Calamity Relief

• The scheme of Calamity Relief Fund (CRF) to continue in its present form with contributions from the Centre and States in the ratio of 75:25. The size of the Fund worked out at Rs.21,333 crore for the period 2005-10.
• The outgo from the Fund to be replenished by way of collection of National Calamity Contingent Duty and levy of special surcharges.
• The definition of natural calamity to include landslides, avalanches, cloud burst and pest attacks.
• Provision for disaster preparedness and mitigation to be part of State Plans and not calamity relief.

Grants-in-aid to States

•  The present system of Central assistance for State Plans, comprising grant and loan components, to be done away with, and the Centre should confine itself to extending plan grants and leaving it to States to decide their borrowings.
• Non-plan revenue deficit grant of Rs.56,856 crore recommended to 15 States for the period 2005-10. Grants amounting to Rs.10,172 crore recommended for the education sector to eight States. Grants amounting to Rs.5,887 crore recommended for the health sector for seven States. Grants to education and health sectors are additionalities over and above the normal expenditure to be incurred by States.
• A grant of Rs.15,000 crore recommended for roads and bridges, which is in addition to the normal expenditure of States.
• Grants recommended for maintenance of public buildings, forests, heritage conservation and specific needs of States are Rs. 500 crore, Rs.1,000 crore, Rs.625 crore, and Rs.7,100 crore, respectively.

Fiscal Reform Facility

•  With the recommended scheme of debt relief in place, fiscal reform facility not to continue over the period 2005-10.

Debt Relief and Corrective Measures

• Central loans to States contracted till March,2004 and outstanding on March 31, 2005 amounting to Rs.1,28,795 crore to be consolidated and rescheduled for a fresh term of 20 years, and an interest rate of 7.5 per cent to be charged on them. This is subject to enactment of fiscal responsibility legislation by a State.
• A debt write-off scheme linked to reduction of revenue deficit of States to be introduced. Under this scheme, repayments due from 2005-06 to 2009-10 on Central loans contracted up to March 31,2004 will be eligible for writeoff.
• Central Government not to act as an intermediary for future lending to States, except in the case of weak States, which are unable to raise funds from the market.
• External assistance to be transferred to States on the same terms and conditions as attached to such assistance by external funding agencies.
• All the States to set up sinking funds for amortization of all loans.
• States to set up guarantee redemption funds through earmarked guarantee fees.

Others

•  The Centre should share ‘profit petroleum’ from New Exploration and Licensing Policy (NELP) areas in the ratio of 50:50 with States where mineral oil and natural gas are produced. No sharing of profits in respect of nomination fields and non-NELP blocks.
• Every State to set up a high level committee to monitor the utilization of grants recommended by the TFC.
• Centre to gradually move towards accrual basis of accounting.

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Posted in: Indian Economy

Twelfth Finance Commission (2005-10)

Twelfth Finance Commission (2005-10)

The Twelfth Finance Commission (TFC) was appointed on November 1, 2002
to make recommendations regarding the distribution between the Union and the States
of net proceeds of shareable taxes, the principles which should govern the grants-in-aid of the revenues of States from the Consolidated Fund of India and the measures needed to augment the Consolidated Fund of a State to supplement the resources of local bodies in the State on the basis of the recommendations made by the Finance Commission of the State. The terms of reference mandated the Commission to review the state of the finances of the Union and the States and suggest a Plan by which the Governments, collectively and severally, restore budgetary balance, achieve macroeconomic stability and debt reduction
along with equitable growth. Furthermore, the Commission was also asked to suggest
corrective measures for debt sustainability and to review the Fiscal Reform Facility introduced by the Central Government.

The Commission submitted its report on November 30, 2004 covering the period 2005-10. On Feb. 2, 2005 Union Government accepted all recommendations of 12th Finance Commission.
The Commission recommended debt relief to States linked to fiscal reforms, doing away
with the present system of Central assistance to State plans in the form of grants and loans
and transfer of external assistance to States on the same terms and conditions as
attached to such assistance by external funding agencies. The TFC raised the share
of States in shareable Central taxes from 29.5 per cent to 30.5 per cent. Total transfers
to States recommended by the TFC amount to Rs.7,55,752 crore over the five year period
2005-10. Of this, transfers by way of share in Central taxes and grants-in-aid amount to
Rs.6,13,112 crore and Rs.1,42,640 crore, respectively. The total transfers recommended by the TFC are higher by 73.8 per cent over those recommended by the Eleventh Finance Commission (EFC). Within the total transfers, while the share in Central taxes is higher by 62.9 per cent, grants-inaid recommended by the TFC are higher by 143.5 per cent over those recommended by the EFC.

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Posted in: Indian Economy

Reserve Bank of India

Reserve Bank of India

It is the Central Bank of the country. The Reserve Bank of India was established in 1935 with a capital of Rs. 5 crore. This capital of Rs. 5 crore was divided into 5 lakh equity shares of Rs.100 each. In the beginning the ownership of almost all the share capital was with the non-government shareholders. In order to prevent the centralisation of the equity shares in the hands of a few people, the Reserve Bank of India was nationalised on January 1, 1949. The general administration and direction of RBI is managed by a Central Board of Directors consisting of 20 members which includes 1 Governor, 4 Deputy Governors, 1 Government official appointed by the Union Government of India to give representation to important stratas in economic life of the country. Besides, 4 directors are nominated by the Union Government to represent local boards. New Departments Constituted in RBI    On July 6, 2005 Reserve Bank of India has constituted a new department, named Financial Market Department for surveillance on financial markets. The Deputy Governor of RBI Mr. Rakesh Mohan will look after this newly created department. Besides this new department Mr. Rakesh Mohan has been given responsibility of Monetary Policy Department.    The Constituted new Financial Market department will seperate the activities of debt management and monetary operations in future. This department will also perform the duties of developing & monitoring the instruments of money market and also monitoring the government securities and foreign money markets.

Apart from the central board there are 4 local boards also and their head offices are situated in Mumbai, Chennai, Kolkata and New Delhi. 5 members of local boards are appointed by the Union Government for a period of 4 years. The local boards work according to the instructions and orders given by the Central Board of Directors, and from time to time they also tender useful advice on important matter. The head office of Reserve Bank of India is in Mumbai. At present Dr D Subbarao is the Governor of Reserve Bank of India. Functions of Reserve Bank 1. Issue of Notes –The Reserve Bank has the monopoly of note issue in the country. It has the sole right to issue currency notes of various denominations except one rupee note. The Reserve Bank acts as the only source of legal tender money because the one rupee note issued by Ministry of Finance are also circulated through it. The Reserve Bank has adopted the Minimum Reserve System for the note issue. Since 1957, it maintains gold and foreign exchange reserves of Rs. 200 crore, of which at least Rs. 115 crore should be in gold. 2. Banker to the Government–The second important function of the Reserve Bank is to act as the Banker, Agent and Adviser to the Government. It performs all the banking functions of the State and Central Government and it also tenders useful advice to the Government on matters related to economic and monetary policy. It also manages the public debt for the Government. 3. Banker's Bank–The Reserve Bank performs the same function for the other banks as the other banks ordinarily perform for their customers. It is not only a banker to the commercial banks, but it is the tender of the last resort. 4. Controller of Credit–The Reserve Bank undertakes the responsibility of controlling credit created by the commercial banks. To achieve this objective it makes extensive use of quantitative and qualitative techniques to control and regulate the credit effectively in the country. 5. Custodian of Foreign Reserves–For the purpose of keeping the foreign exchange rates stable the Reserve Bank buys and sells the foreign currencies and also protects the country's foreign exchange funds. 6. Other Functions–The bank performs a number of other developmental works. These works include the function of clearing house arranging credit for agriculture, (which has been transferred to NABARD) collecting and publishing the economic data, buying and selling of Government securities and trade bills, giving loans to the Government buying and selling of valuable commodities etc. It also acts as the representative of Government in I.M.F. and represents the membership of India.

Printing of Securities and Minting in India 1. India Security Press (Nasik Road)–Postal Material, Postal Stamps, Non-postal Stamps, Judicial and Non-judicial Stamps, Cheques, Bonds, NSC, Kisan Vikas Patra, Securities of State Governments, Public Sector Enterprise and Financial Corporations. 2. Security Printing Press (Hyderabad)–Established in 1982 for meeting the demand for postal material by Southern States. It also fulfils the demand for Union Excise Duty Stamps of the Country. 3. Currency Notes Press (Nasik Road)–Since 1991, this press prints currency notes of Rs. 1, Rs. 2, Rs. 5, Rs. 10, Rs. 50, and Rs. 100. (Earlier printing of Rs. 50 and Rs. 100 currency notes was not done here). 4. Bank Notes Press (Dewas)–Currency notes of Rs. 20, Rs. 50, Rs. 100 and Rs. 500 are printed here. 5. Modernised Currency Notes Press–Two new modernised currency notes press are under establishment at Mysore (Karnataka) and Salboni (West Bengal). 6. Security Paper Hoshangabad (Established in 1967-68) makes production of Bank and Currency notes paper. 7. Coins are minted at four places–Mumbai, Kolkata, Hyderabad and Noida.

Website : www.rbi.org

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Posted in: Indian Economy