Govt staff earn 14.82% on NPS

Central government employees who joined as a part of the contributory New Pension Scheme (NPS) have earned a weighted average return of 14.82 per cent during 2008-09, the first year when three fund managers managed a corpus of around Rs 2,000 crore.

This is in contrast to the annual 8 per cent returns between January 2004 and March 2008 when the government had not transferred the money to the three fund managers – SBI Pension Fund, UTI Retirement Solutions and LIC Pension Fund.

The Centre moved all employees joining from January 1, 2004 to NPS, where they have to chip in with a contribution of 10 per cent of their basic salary with a matching contribution made by the government. While the money was being deducted, it was parked in a government account and earned a fixed rate of return.

Last year, based on the financial bids, the government allocated 55 per cent to SBI, which earned 16 per cent on the corpus managed by it, followed by UTI, which earned a return of around 13 per cent on 40 per cent of the corpus and LIC, which generated returns of around 12 per cent on the remaining corpus. Last week, the allocation was changed based on last year’s performance (see table).

While the corpus will increase this year, partly due to higher contribution and also due to the release of some of the arrears following the implementation of the Sixth Pay Commission’s recommendations, the equity investment is also expected to go up.

At present, around 5 per cent of the corpus is invested in equities against the permissible limit of 15 per cent.

“Initially, fund managers were slow on investment in equities and invested significant amounts in bank deposits. But now, they will step up equity investment, also because the overall environment has improved,” said a source associated with the asset allocation.

This year onwards, the fund management fee is also going to decrease to 0.0009 per cent (or 0.09 basis points), in line with the pension scheme for non-government employees, as against up to 5 basis points last year.

In addition, state governments are expected to join the scheme. While 21 states have shown their willingness to join NPS, none of them have started releasing the funds as some of them, unlike the Centre, are reluctant to bear the costs, such as those related to the record-keeping agency.

courtesy: Business Standard

Revised telephone/ broadband/ mobile reimbursment of CSIR Scientist/ Technical Officers/ CCO

Things investors need to know about New Pension Schemes

New Pension Schemes (NPS) are in news for quite some time now. With India finally gearing up to have its own government-regulated pension plan, on the lines of the ‘401K-retirement plan’ in the US, the excitement hovering around NPS is obvious.

While the scheme is already operational for central govt employees, its opening for general public on May 1, 2009. Unlike the traditional retirement solutions, such as PPF and EPF; NPS is not a defined benefit, but rather a defined contribution plan. Thus, while investment in PPF and EPF attract a fixed rate of interest, returns from NPS will be market determined.

The market here, however, is not confined to equity alone, but includes corporate bonds and government securities. Investment in these papers is to be actively managed by fund managers. Pension Fund Regulatory and Development Authority (PFRDA) have designated six asset management companies (AMCs) for the purpose.

So, does it imply that NPS is just another mutual fund scheme?

Though the NPS will be managed by fund houses, the autonomy lies with the PFRDA. While AMCs take investment decisions for NPS, their operational freedom shall be confined to the guidelines issued by PFRDA from time to time. Again, while an MF investor can enter and exit an scheme at free will, NPS will bind them till the retirement age of 58 years. The current guidelines do not permit a pre-mature withdrawal or any loan against the investment in NPS.

The onus of deciding the structure of investments and selecting the fund house has, however, been left to the investor. The investor is free to choose the right mix of equity (E), corporate bonds (C) and government securities (G) in his/her portfolio. Alternatively, investor can choose auto option, wherein his investment in NPS will divided in pre-determined proportion of 15% (E), 45% (C) and 40% (G). In the case of automatic allocation, the entire investment will be equally distributed among all six fund managers in the first year. From second year onwards, however, the allocation will be pro-rated on the basis of the first year’s performance.

NPS can also be distinguished from an MF scheme in terms of its cost structure. While an MF scheme charges an entry-load of about 2.25% and an average management charge of 1.5%, NPS carries a bare minimum fee of 0.0009%. Virtually free; as one might put it! But hold on. For, while NPS may prima facie appear an art of charity, investors would do well to note that there is never a free lunch.

NPS requires maintenance of all records and the same will be done by NSDL, which will act as the central record keeping agency (CAR). Each investor will thus be required to pay NSDL an account opening charge of Rs 50. Besides, there will be a maintenance charge of Rs 350 per year and an additional charge of Rs 10 per transaction.

PFRDA has also appointed selected banks as point of presence (POPs) to facilitate quick and hassle-free transactions. However, these services are not free either. According to an industry source, POPs will also charge an investor an account opening fee of Rs 20 and an additional charge of Rs 20 per transaction. This implies that an investor seeking to invest Rs 500 per month will actually end up paying around Rs 560 per month. That’s nearly 11% transaction cost, considerably higher than 8% return offered by PPF.

So does this render NPS more costly visà-vis an MF scheme?

The current cost structure of NPS is as good as fixed in nature, while that of an MF is a percentage of investment. Thus, the higher the investment, the higher would be the charges in case of an MF scheme (See Table). Given the current cost structure, NPS appears to be more beneficial to those with a higher amount of periodic investment.

Another factor that needs major consideration is the tax treatment. NPS does not enjoy any tax benefits, either at the investment stage or at the time of maturity. This makes it less attractive vis-à-vis other retirement plans available in the market. While PFRDA is understood to have approached the government to grant NPS the tax status of (exempt-exempt-exempt) EEE, the fact that PFRDA bill is yet to be approved by Parliament may procrastinate the process. Thus, while the step in the right direction has been taken, a lot needs to be done to make NPS as competitive as 401K.
Courtesy : TOI

Tree Tracking goes Hi-tech in India

A team of botanists in Mumbai are planning to map trees with the help of GPS based etchnology. Environmentalist, Ramesh Madav and his team, who have founded Terracon Ecotech Pvt. Ltd, will be out with equipment that can determine the exact location of a tree using global positioning system, or GPS, a satellite-based technology typically used in vehicle navigation and location-based information search.

Each unit, costing around INR 85,000, records the latitude and longitude of a tree, achieving an accuracy of within 5m. In addition, the botanists will record other details such as the height, canopy and condition of each tree in digital format, all of which will be transferred to a master information system that will plot the data on maps. This will make it easier to audit data and regulate illegal or irregular tree felling. The company has signed a contract with Thane's municipal corporation to conduct a tree census for the district over the next few months.

The company is currently building a proprietary software platform called Vruksha Sharad to map and analyse the tree data more effectively. It also wants to increase its current team of 60 field officers, each a qualified botanist, to around 200.

'Go green': New IT Mantra

On the occasion of the Earth Day that was served April 22, 2009 most of IT companies pledge to conserve the environment's resources and save energy costs in the bargain. According to the study conducted by IDC in the Asia-Pacific region, 18 percent of the organisation consider the greenness of the IT suppliers before making a selection, and another 30 per cent are expected to do so in the near future.

Maharashtra-based Chitale Diary, for instance, consolidated its IT environment into three physical servers (from 10) in one data centre. These servers host 20 virtual servers running multiple applications and operating systems. With a virtualised environment, the firm reduced hardware acquisition costs by 50 per cent, server deployment time came down from three weeks to a few hours. And it brought in 50 per cent reduction in power, cooling, and real estate. IBM has committed over $1 billion to the Big Green Innovation initiative launched in 2007. The project focuses on intelligent energy (smart grids and alternative energy), carbon management, water management, and computational modelling. Intel, on its part, integrated 'Design for Environment' principles into its production.

The Climate Savers Computing Initiative (CSCI), co-founded by Intel and being led in India by Nasscom, CII, TERI and WWF works globally with manufacturers and consumers to increase the energy efficiency of personal computers (PCs) and servers by 50 per cent with the help of power-management tools. Cisco has also launched Energy Wise, a technology that makes it possible for businesses to reduce carbon emissions, by managing energy consumption of devices on the network when they are not in use. While Wipro has signed a Memorandum of Understanding (MoU) with WWF to collaborate in several areas of sustainability like the application of IT solutions to ecological sustainability. IT companies are aiming to reduce CO2 emission by 54 million tonnes a year and cut energy costs by $5.5 billion by 2010.

Courtesy: e Gov

National policy on safety, health and environment at workplace

The Union Cabinet has approved the National Policy on Safety, Health and Environment at Workplace to address the issue of securing health and safety of workers in the country as envisaged in the Constitution.
It provides general guidelines for all stakeholders such as Governments, inspection authorities employers, research and development institutions, educational institutions, etc. for developing a safety culture and environment at all work places.
The policy envisages actions for improving safety, health and environment at workplace by providing for a statutory framework, administrative and technical support, system of incentives, prevention strategies and their monitoring and inclusion of safety health and environment aspects in other related national policies.
It also spells an action programme comprising development of standards and codes of practices, encouraging compliance by stakeholders, increasing awareness, promoting and proving for research and development, knowledge and skill development, practical guidance and providing financial and non-financial incentives.
The provisions of the policy would be reviewed every five years, if necessary.

Payment of Interest on Savings Bank Account on a Daily Product Basis

RBI/2008-09/452

DBOD. No. Dir. BC.128/13.03.00/2008-09

April 24, 2009

All Scheduled Commercial Banks (Excluding RRBs)

Dear Sir

Payment of Interest on Savings Bank Account on a Daily Product Basis

Please refer to paragraph 88 of the Annual Policy Statement announced by Governor on April 21, 2009 (extract enclosed), in terms of which it has been proposed that payment of interest on savings bank accounts by scheduled commercial banks would be calculated on a daily product basis with effect from April 1, 2010. In terms of extant guidelines, as per paragraph 2.2B of the Master Circular dated July 1, 2008 on Interest Rates on Rupee Deposits held in Domestic, Ordinary Non-Resident (NRO) and Non-Resident (External) (NRE) Accounts, banks have been advised that in the case of savings deposits, interest should be calculated on the minimum balance to the credit of the deposit account during the period from the 10th to the last day of each calendar month and credited to the account only when it is Re.1/- or more. Several banks had suggested that interest on savings bank accounts may be calculated either on the minimum balances in the deposit accounts during the period from the first to the last day of each calendar month or on a daily product basis. The matter was referred to the Indian Banks' Association, which was of the view that payment of interest on a daily product basis would be feasible only when computerisation in banks is completed. 2. We advise that on a review, and in view of the present satisfactory level of computerisation in commercial bank branches, it is proposed that payment of interest on savings bank accounts by scheduled commercial banks would be calculated on a daily product basis with effect from April 1, 2010. In order to ensure a smooth transition, banks may work out the modalities in this regard.

Yours faithfully

(P. Vijaya Bhaskar) Chief General Manager

Encl: as above

Reserve Bank of India Annual Policy Statement 2009-10

Part B. Developmental and Regulatory Policies 2009-10

II. Interest Rate Policy

(b) Payment of Interest on Savings Bank Account on a Daily Product Basis

88. At present, interest on savings bank accounts is calculated on the minimum balances held in the accounts during the period from the 10th day to the last day of each calendar month. Several banks have suggested that interest on savings bank accounts may be calculated either on the minimum balances in the deposit accounts during the period from the first to the last day of each calendar month or on a daily product basis. The matter was referred to the IBA, which was of the view that payment of interest on a daily product basis would be feasible only when computerisation in banks is completed. In view of the present satisfactory level of computerisation in commercial bank branches, it is proposed that: • payment of interest on savings bank accounts by scheduled commercial banks (SCBs) would be calculated on a daily product basis with effect from April 1, 2010. Modalities in this regard will be worked out in consultation with banks.

US seek access to India's traditional knowledge database

New Delhi, Apr 24 (PTI) The US is in talks with India seeking to gain access to the country's rich database on unani, ayurveda and yoga, country's traditional health and medical practices.
"We are in talks with the Council of Scientific and Industrial Research (CSIR) for giving access to its Traditional Knowledge Digital Library (TKDL) to the US authorities,"Dominic Keating, First Secretary for Intellectual Property at the US Embassy in India, told PTI.

According to Keating, who is involved in talks, American officials and CSIR would hold a meeting in May to resolve the issues in the draft agreement on accessing TKDL data by the United States Patent and Trademark Office (USPTO).

TKDL is a joint project between the apex scientific research organisation of the country CSIR and Department of Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homeopathy (AYUSH) to preserve the old knowledge of India.

When asked about the delay in agreement, Keating said "We had some issues with the agreement document of CSIR and we are trying to resolve it, so that patent examiner can access the database in order to avoid any duplication of innovation." PTI

Publish reasons for all decisions that affect the public, CIC tells UT Admn

The Central Information Commission (CIC) has directed the Chandigarh Administration to publish reasons for all its decisions that affect the public and ensure proper implementation of the Right to Information (RTI) Act.

The CIC also asked the Administration to convert all records in electronic format, catalogue, index and computerise them and then put them online for easy accessibility. The UT has been given three months to comply with the directions.

The commission referred to the instructions of the Ministry of Personnel, Public Grievances and Pensions, dated September 21, 2007, on the matter, which says: “The clause (Section 4) also requires the public authority to have its records computerised and connected through a network all over the country. ” The directions were issued in response to 52 separate complaints — later clubbed by the CIC — filed against various UT departments .

Information Commissioner M L Sharma ordered: “The public authorities are required to publish all relevant facts about such policies and decisions for the information of the public at large, as mandated under Section 4(1)(c) of the Act.” The order said such information should be provided free of cost. It read: “The information disclosed by the public authorities is proactive disclosure and they are required to provide immediate access to this material as and when requested, without the requirement of filing any written request and charging any fee.”

The CIC said all public authorities should also take immediate steps to publish detailed, complete and unambiguous information under the 16 categories of Section 4(1)(b) and thereafter update the information as and when necessary, but definitely every year. It added: “The names, room numbers, telephone numbers, e-mail address of the CPIOs/ACPIOs may be prominently displaced in each office. If the complete disclosures are also available with any other officer(s) other than the CPIO, ACPIO, their names, designations, room numbers and telephone numbers must be prominently displayed.”

Addressing the contentions of the complainant, regarding difficulty in submitting the fee for RTI , the commission said: “The CPIO should accept the requisite fee without delay. Such fee should be acceptable in any form as prescribed under the rules by way of cash against proper receipt or by demand draft or banker’s cheque or Indian postal order. The ‘payee’ or the name of the officer in whose favour payment is to be made should be displayed on the notice board of the public authority.” The commission held that no particular format was necessary to seek information under the RTI Act.

Courtesy: Indian Express

सुबहे बनारस ( Sunrise at Varanasi)

You all must have noted that I have not updated my Blog in previous week i.e from 12/4/2009 to 18/4/2009. During this week I was on vacation to attend my Brother-in-Laws marriage ceremony at Varanasi, my hometown. There I was able to witness one of the most beautiful moments of Varanasi i.e Sunrise after long time. Here are some of the photographs taken from my cellphone camera. Although picture quality might not be good but the moment was amazing.
But I was sad to see a Government motorboat polluting the ambiance in the early hour of morning. As an student of ecology I know that the current level of pollution in River Ganga is a holistic problem and it needs a holistic treatment . One or two retrogressive steps wipes out all the positive measures.

Appointment of New Joint Secretary at CSIR

The Appointments Committee of the Cabinet has approved the proposal to appoint Shri K. Jayakumar, IAS(SK:87) as Joint Secretary, in the Department of Scientific & Industrial Reaserch/Council of Scientific & Industrial Research, in the pay band of Rs.37400-67000 /- (PB-4) plus grade pay of Rs. 10000/-, for a period of five years from the date of assumption of charge of the post or until further orders.

seniority list of CCO (FA) as on 1/1/2009 (released on 20/4/2009)

Revokation of referral of CGHS beneficiaries to Narender Mohan Hospital Gazaibad

Option for zonal wise posting of Common cadre Officers

Promotion to the post of S.O(G)/(FA)/(SP)

Implementation of Government’s decision on the recommendation of the VIth CPC – revision of CCS (Extraordinary Pension) Rules

No.45/6/2008-P&PW (F)

Ministry of Personnel Public Grievances and Pensions

Department of Pension and Pensioners Welfare

*******

3^rd Floor, Lok Nayak Bhawan,

Khan Market, New Delhi-110 003

Dated 16th April, 2009

OFFICE MEMORANDUM

Subject: Implementation of Government’s decision on the recommendation of the VIth CPC – revision of CCS (Extraordinary Pension) Rules,

1939 – Constant Attendant Allowance.

……………..

The undersigned is directed to say that on the Recommendations of Sixth Central Pay Commission in para 5.1.44 of its Report, orders were issued vide Department of Pension & Pensioner's Welfare O.M. No.38/37/2008-P&PW (A) dated 2.9.2008 that:

“In the case of pensioners who retired on disability pension under the CCS (Extraordinary Pension) Rules, 1939, for 100% disability (where the individual is completely dependent on somebody else for day to day function), a Constant Attendant Allowance of Rs.3,000/- p.m. shall be allowed in addition to the disability pension, on the lines existing in Defence Forces.”

2. Accordingly, the payment of the Constant Attendant Allowance (C.A.A.) shall be governed by the provisions as under:-

(i) Constant Attendant Allowance (C.A.A) will be Applicable to cases where the disability for which Constant Attendance Allowance is payable is attributable to or aggravated by service.

(ii) Constant Attendant Allowance (C.A.A) may be granted to a Government servant who is awarded a disability pension for 100 percent disablement, if in the opinion of the medical board, he needs the services of a constant attendant for at least a period of three months, and the necessity arises solely from the condition of the accepted disability or disabilities.

(iii) Constant Attendant Allowance (C.A.A) shall not be payable for any period during which the pensioner is an inmate or an in-patient of a Government institution or hospital.

(iv) Payment of Constant Attendant Allowance (C.A.A) shall be made along with disability pension. Payment shall be made on the basis of declaration as in Annexure which shall be submitted to the Pension Disbursing Authority in May & November each year.

3. Formal amendments to the Central Civil Services (Extraordinary Pension) Rules, 1939, are being issued separately.

4. These orders are issued with the approval of the Ministry of Finance, Department of Expenditure vide their U.O.No.7.32/10/2009-IC dated 23^rd February, 2009.

5. In their applicability to the personnel of the Indian Audit and Accounts Department, these orders issue in consultation with the Comptroller & Auditor General of India.

6. Ministry of Agriculture, etc. are requested to bring the contents of these orders to the notice of the Heads of Departments, their Attached an Subordinate Offices, Controller of Accounts, Pay & Accounts Officers, etc. under their administrative control.

Indian scientists sequence fish genome

The genome which, because of its similarity to the human genome, holds several clues to identifying genes that cause diseases in human beings

New Delhi: Scientists at the Institute of Genomics and Integrative Biology (IGIB), a Council of Scientific and Industrial Research (CSIR) laboratory, have sequenced the genome of a fish, which, because of its similarity to the human genome, holds several clues to identifying genes that cause diseases in human beings.
Vinod Scaria, IGIB scientist, said that the wild zebrafish strain analysed, was a first of it’s kind genome analysis in India.
“To my knowledge, it’s the first time that a vertebrate’s whole genome has been analysed in an Indian lab,” said Scaria. Globally, scientists have studied zebrafish genomes before, but Scaria said these were mostly hybrids cloned in labs.
“Studying a wild type strain is vital to understand the complete genetic variation within a species. Without that it’s not possible to determine which genes are responsible for certain diseases,” he added.

Comment received

"Dear Arvind Khanna,

Thanks a lot for covering the zebrafish genome on your Blog. I have also gone through your blog and find it very interesting and informative.

Best regards

Dr Vinod Scaria
Scientist
G N Ramachandran Knowledge Centre for Genome Informatics,
Institute of Genomics and Integrative Biology (CSIR),
Mall Road, Delhi 110 007, India"

Complaint against NBRI director for fudging CV

15 Apr 2009, 0155 hrs IST, Neha Shukla, TNN

LUCKNOW: The director of NBRI might sustain his tenure on the claim that he passed MSc in three subjects. He might have also convinced the search committee with his curriculum vitae. But his alma mater, Gobind Ballabh Pant University of Agriculture and Technology, does not approve of the same with Gujarat University denying to the extent that it awarded a PhD in first division to the director.

GBPUAT, Pantnagar, said that Dr Rakesh Tuli, director, NBRI did not pass MSc in three subjects -- genetics, biochemistry and plant breeding, as mentioned by him in his CV. The director's CV talks of several facts which RTI responses provided by the universities contradict.

Could it be a case of a botched CV? It is now up to the prime minister to find out. A complaint containing several such revelations has been forwarded to the PM after being endorsed by the chairman, public accounts committee. The complaint has been filed by a local, Naveen Gupta who gathered the `quoted' information by way of RTI.

GBPUAT states that Tuli was awarded the MSc degree with major in genetics and minor in bio-chemistry. The fact that Tuli has a PhD degree in botany in first division from Gujarat University has also run into trouble after Gujarat University informed that he was not awarded PhD degree in 1982 by it. The university further clarified that there is no system to award class/grade while awarding PhD degree.

Tuli had been the applicant for the same post twice in the past. But he was rejected in 1997-98 and 1998-99 by the prime minister on the ground that he had used `political pull against conduct rules'. Little success came his way in 2,000 when he got selected as director, Central Institute of Medicinal and Aromatic Plants (CIMAP).

But before he could take over, the then minister of science and technology, Murli Manohar Joshi recommended SPS Khanuja for the post. "To his indiscretion he pleaded for his case and also spoke lightly about other scientists," wrote Joshi in his letter, while turning down Tuli's appointment.

The complaint says that `misrepresentations' do not end here. The director had allegedly fudged information under heads like national competitive research grants awarded to him by governmental agencies, inter-institutional team work and skills in industrial networking.

Appointing a director for CSIR (Council for scientific and industrial research) laboratory calls for responsible selection. The search committee is constituted for the purpose by the vice-president (minister of science and technology) of CSIR which comprises a chairman, six experts and DG, CSIR.

But in case of Tuli the committee reportedly bypassed the norms to appoint him as the director. However, sources added, "things have started moving at the level of CSIR though proceedings might not come out in the open".
Courtesy: Times of india

CIC asks CSIR to make NET exam papers public

New Delhi (PTI): The Central Information Commission has directed the CSIR to bring NET examination papers of previous years, kept under wraps till now, in public domain to improve the overall "processes" of administering and undertaking of exams in the country.

Central Information Commissioner Shailesh Gandhi in his hard hitting order had asked CSIR to provide the information free of cost to the appellant before April 25.

Refuting the CSIR's contention that "if question papers are in public domain the scientific interest of the State will be affected", the CIC said, "transparency will only improve all institution and processes".

Disallowing the Council of Scientific and Industrial Research's (CSIR) contention that disclosing the examination papers would "expose the CSIR examinations system", the CIC in its order said, "if a student can really master all fundamentals of the Science and Technology portion, no exam system can really want to test anything else".

The CIC also dismissed CSIR's stand that "there is a limited scope of framing questions as the basic concept and their interpretation are established facts".

New ITR 1 form notified for AY 2009-10

click here for download