PRS Capsule – January 2023 | 17 Feb 2023

Key Highlights of PRS

Governance

Key Achievements of the Government

What are the Major Achievements?

  • Economy:
  • Health:
  • Environment:
    • The target of non-fossil fuels accounting for 40% of the electricity generation capacity was achieved nine years ahead of its scheduled year-2023.
  • External Affairs:
    • India has assumed presidency of the G-20, and will work towards finding collective solutions to global problems.
      • G-20 meetings will be held across the country throughout the year.

Draft Amendments to IT Rules for Regulating Fake News and Online Gaming

What are the Amendments Proposed?

  • Regulating False Information and Online Games:
    • The IT Rules, 2021 specify restrictions on the types of content that users are allowed to create, upload, or share.
      • The draft Amendments add that all intermediaries (including online gaming intermediaries) must take reasonable efforts to ensure that users do not:
        • Publish any information that is identified as false or fake by the fact-check unit of the Press Information Bureau or any agency authorised by the central government, or
        • Host an online game not in conformity with any law.
  • Online Games:
    • The draft Amendments define an online game as a game that is offered on the internet and is accessible if the user makes a deposit with the expectation of earning financial winnings.
      • The central government may notify any other game as an online game.
    • An online gaming intermediary is defined as an intermediary that offers at least one online game. Obligations for online gaming intermediaries include:
      • Registering their games with a self-regulatory body,
      • Obtaining and displaying a random number generation certificate and a no-bot certificate,
      • Informing users of the Know-Your-Customer (KYC) procedure for user registration, the risk of financial loss and addiction associated with the game, and the measures taken to protect the user’s money, and
      • Verifying identity of users as per Reserve Bank of India (RBI) procedures for account-based relationships.
        • Such intermediaries must have a physical address in India.

Biodiversity and Environment

National Green Hydrogen Mission

What are the Salient Features of the Mission?

  • About:
    • It seeks to facilitate the production, demand creation, usage and export of green hydrogen and its derived products such as green ammonia and green methanol.
    • It is expected that by 2030, the initiatives under NGHM would result in production capacity of at least 5 MMT/year.
      • The associated renewable energy capacity addition will be around 125 Gigawatts.
  • Nodal Ministry:
    • The Ministry of New and Renewable Energy (MNRE) will be responsible for formulating regulations and implementing the Mission.
  • Phases:
    • Phase 1 (2023-24 to 2025-26):
      • It will focus on creating demand (through utilisation in refineries, fertilisers and city gas sectors) and increasing the manufacturing capacity of domestic electrolysers.
      • Pilot projects will be undertaken to initiate the use of green hydrogen in steel production, long-distance transport and shipping.
      • Regulatory frameworks and standards will also be established for proper engagement with international norms.
    • Phase 2 (2026-27 to 2029-30):
      • Depending on the cost structure and market demand, the feasibility of green hydrogen-based projects in steel production, transport and shipping sectors on a commercial scale will be explored.
      • New pilot projects will be undertaken in other potential sectors such as railways and aviation.
      • Other projects will focus on scaling up research and development activities to develop products.

Economy

Economic Survey 2022-23

What are the Key Highlights of Survey?

  • Gross Domestic Product (GDP):
    • The Survey has estimated real GDP growth in 2023-24 at 6.5%, however, the actual growth rate would lie in the range of 6-6.8%, (depending on the global economic and political development trajectories).
  • Inflation:
    • In 2022-23, retail inflation is estimated at 6.8%, higher than 2021-22 (5.5%) that has been driven by international crude oil prices and food inflation.
  • Debt:
    • Total liabilities of the central government are estimated to decline from 59.2% of GDP in 2020-21 to 56.7% of GDP in 2021-22.
      • Outstanding liabilities of the general government are estimated to be 86.5% in 2022-23.
    • The Survey noted that India’s public debt profile is relatively stable.
      • 95% of it is held by residents and is denominated in rupees.
  • Sectoral growth:
    • India’s agriculture sector has grown at an average annual rate of 4.6% during the last six years. In 2022-23, the industrial sector and the services sector are estimated to grow by 6.7% and 9.1% respectively.
  • Infrastructure:

Scheme to Promote RuPay debit cards and BHIM UPI Transactions

  • Recently, the Union Cabinet approved a scheme to incentivize RuPay Debit Cards and low value BHIM-UPI transactions.
    • The scheme will be applicable to banks having operations in India and transactions done in India, and for the financial year 2022-23.

What are the Key Features of Scheme?

  • Acquiring banks will be provided financial incentive for promoting:
    • Point of sale and e-commerce transactions using RuPay Debit Cards, and
    • Person to merchant transactions of value up to Rs 2,000 on BHIM UPI platform.
  • MeitY and National Payments Corporation of India (NPCI) may add or omit merchant categories included in industry programmes.
  • The total outlay under the scheme is expected to be Rs 2,600 crore.

Draft Amendments to IBC 2016

  • The Ministry of Corporate Affairs has invited comments on the draft amendments to the Insolvency and Bankruptcy Code (IBC), 2016.
    • IBC provides a framework for time-bound resolution of insolvency among companies as well as individuals.

What are the Key Amendments to IBC?

  • Pre-packaged Insolvency Resolution Process (PIRP):
    • MSMEs can apply for insolvency resolution under a faster framework called PIRP, which resolves within 120 days, subject to approval by 66% of financial creditors.
      • The proposed amendments seek to widen the scope of PIRP to cover other types of corporate debtors, to be specified.
      • Additionally, the approval threshold is proposed to be lowered to 51% to speed up decision-making.
  • Real Estate Insolvency Cases:
    • In real estate insolvency cases, people who have paid for a property in a project will be treated as creditors. They want to own the property, not just the repayment of their money. Sometimes, the whole company is declared insolvent because of one project's failure.
      • The proposed amendment would allow for the resolution process to only apply to the specific project in default, instead of the entire company.
  • Multiple Resolution Plans for Corporate Debtors:
    • Currently, the committee of creditors can only approve one resolution plan during corporate insolvency resolution process.
      • Proposed amendments would allow them to approve multiple plans for individual or collective assets, as finding one applicant to take over the entire corporate debtor can be difficult.
        • However, at least one approved plan must provide for the resolution of the corporate debtor as a going concern.
  • Distribution of Proceeds:
    • The Ministry observed that many disputes are raised related to distribution of proceeds between creditors.
      • Proposed amendments suggest that creditors will receive proceeds up to the liquidation value for their claims, and any surplus above that value will be distributed among all creditors based on the ratio of their unsatisfied claims.