Daily Quiz #16 UPSC Prelims Marathon – November 19, 2019

Explanation: The Industrial Policy Statement of 1977 was chalked out by a different political set up from the past with a different political fervour—the dominant voice in the government was having an anti-Indira stance with an inclination towards the Gandhian-socialistic views towards the economy. We see such elements in this policy statement:
(i) Foreign investment in the unnecessary areas was prohibited (opposite to the IPS of 1973 which promoted foreign investment via technology transfer in the areas of lack of capital or technology). In practice, there was a complete ‘no’ to foreign investment.18
(ii) Emphasis on village industries with a redefinition of the small and cottage industries.
(iii) Decentralized industrialization was given attention with the objective of linking the masses to the process of industrialization. The District Industries Centers (DICs) were set to promote the expansion of small and cottage industries at a mass scale.
(iv) Democratic decentralization got emphasized and the khadi and village industries were restructured.
(v) Serious attention was given on the level of production and the prices of essential commodities of everyday use.

Explanation: India Aspiration Fund set up SIDBI with the support of RBI pursuant to a budget announcement is an INR2000 crore fund introduced by SIDBI with a vision to promote and accelerate equity and equity linked investments in Start-ups and MSMEs.

Explanation: Under the skill development initiatives of the MNRE, NISE is mandated as the nodal agency for implementation of “Suryamitra Skill Development Programme (SSDP)”. SSDP aims to develop the skills of youth, considering the opportunities for employment in the growing Solar Energy Power Project’s installation, operation & maintenance in India and abroad. The SSDP is also designed to prepare the candidates to become new entrepreneurs in Solar Energy sector. This is a 600 hours residential skill development program following the Qualification Pack of SCG/Q0101. The qualification of participants shall be- ITI / Diploma (Electrical, Electronics, Civil, Mechanical, Fitter, Instrumentation, Welder). Special emphasis to be given to the persons coming from rural background, unemployed youth, women, SC/ST candidates. The candidates would be provided boarding and lodging facilities at the training center by the TP. At the end of the course, proper assessment shall be made and certificates shall be issued by Skill Council of Green Jobs. Persons with higher qualifications like degree in any discipline or higher are strictly not eligible.”

Explanation: The call money market is an important segment of the money market where borrowing and lending of funds take place on overnight basis. Participants in the call money market in India currently include scheduled commercial banks (SCBs)—excluding regional rural banks), cooperative banks (other than land development banks), insurance. Prudential limits, in respect of both outstanding borrowing and lending transactions in the call money market for each of these entities, are specified by the RBI.

Explanation: From the financial year 2016-17 (i.e., from 1st April, 2016), banks in the country have shifted to a new methodology to compute their lending rate. The new methodology—MCLR (Marginal Cost of funds based Lending Rate)-which was articulated by the RBI in December 2015. The main features of the MCLR are—
• It will be a tenor linked internal benchmark, to be reset on annual basis.
• Actual lending rates will be fixed by adding a spread to the MCLR.
• To be reviewed every month on a pre-announced date.
• Existing borrowers will have the option to move to it.
• Banks will continue to review and publish ‘Base Rate’ as hitherto.