Regulations
Cabinet gives approval to pension, insurance schemes
The union cabinet on Wednesday gave its approval to operationalising three social sector schemes - Atal Pension Yojna (APY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri Suraksha Bima Yojana (PMSBY).
 
The decisions, aimed at "creating a universal social security system for all Indians", were taken at meeting of the cabinet presided over by Prime Minister Narendra Modi.
 
"Approval of the cabinet was given to extend funding support for implementing the APY and apprise the cabinet on operationalisation of the PMJJBY and the PMSBY. Approval was also given to provide Rs.50 crore per annum for the next 5 years as the government contribution for publicity related expenditure for PMJJBY and PMSBY," an official release said.
 
Under the APY, subscribers would receive a fixed minimum pension of Rs.1,000-5,000 per month at the age of 60 years, depending on their contributions, which itself would vary on their age of joining.
 
The central government would also co-contribute 50 percent of the total contribution or Rs.1,000 per annum, whichever is lower, to each eligible subscriber account, for a period of five years - from 2015-16 to 2019-20 - to those who join the national pension scheme before December 31, 2015 and who are not members of any statutory social security scheme and are not income tax payers.
 
The pension would also be available to the spouse on the death of the subscriber and thereafter, the pension corpus would be returned to the nominee.
 
The minimum age of joining APY is 18 years and maximum age is 40 years.
 
The benefit of fixed minimum pension would be guaranteed by the government.
 
Under PMJJBY, annual life insurance of Rs.2 lakh would be available on the payment of a premium of Rs.330 per annum by the subscribers.
 
The PMJJBY will be made available to people in the age group of 18 to 50 years having a bank account from where the premium would be collected through the facility of "auto-debit".
 
Under PMSBY, risk coverage will be Rs.2 lakh for accidental death and full disability and Rs.1 lakh for partial disability.
 
The scheme will be available to people in the age group 18 to 70 years with a bank account, from where the premium would be collected through the facility of "auto-debit".
 
The release said government expenditure was expected to range between Rs.2,520 crore and Rs.10,000 crore on account of its co-contribution to subscribers of APY over a period of five years.
 
An expenditure of Rs.2,000 crore for promotional activities for enrolment and contribution collection under APY and Rs.250 crore for publicity and awareness building for PMJJBY and PMSBY was envisaged by the government over five years.
 
It is expected that around two crore subscribers would be enrolled during the current financial year under APY.
 
The release said a large proportion of India's population was without insurance of any kind.
 
"Therefore, the government has decided to work towards creating a universal social security system for all Indians, specially the poor and the under-privileged, to address longevity risks among workers in the unorganised sector and to encourage workers in the unorganised sector to voluntarily save for their retirement," it said.
 
It said unorganised sector workers constitute 88 percent of the total labour force of 47.29 crore, according to the 66th Round of National Sample Survey Office (NSSO) Survey of 2011-12.

User

COMMENTS

vishal

2 years ago

It is difficult to say much about pension schemes in the present state of country's economy. But the Insurance schemes can definitely help, provided the Banks and Insurance companies bring it to the notice of their customers. A lot of people have Bank accounts with out basic Insurance cover. The cost is not much but having a big Insurance Policy is some times difficult.

REPLY

MG Warrier

In Reply to vishal 2 years ago

Sooner or later, India has to debate the rationale for back-door introduction of NPS, denying an existing benefit to future employees of select organisations. None of the reasons put forth is convincing. The defined benefit pension scheme is retained for legislators, defence employees and all those who were in service prior to January 2004. The theory of increasing financial burden does not stand reason in such a situation.

MG Warrier

2 years ago

Atal Pension Yojana will provide some work and funds to the administrators of NPS. If authorities are genuinely interested in providing social security, efforts to harmonise the working of Employees Provident Fund Organisation and PFRDA is essential. For workers in the organised sector, the responsibility of ensuring adequate post-retirement care should fall on the employer. Defined-benefit pension scheme should be restored in organisations which should be guided to create pension funds based on actuarial studies. The thoughtless introduction of NPS has made pension system lose its credibility. GOI should at this late hour revisit the whole issue instead of making ‘popular’ announcements about social security. Finally, the bill for providing social security will be back at the doors of the tax-payer. There will be some relief, if the employees demand and get wages with built-in retirement benefit component and employers and employees together accept the responsibility of providing a post-retirement life to the employees commensurate with the life they lived while in service.

Vikram Bhatt files police complaint against former partners Ajay Bishnoi and Amul Gabrani of Tecpro
Bishnoi and Gabrani, after taking full payment from T-Series and Reliance Entertainment for making films have neither paid the production team nor deposited tax deducted at source, alleges film director Vikram Bhatt
 
A police complaint filed by well-known film director Vikram Bhatt against the promoters of ASA Production seems set to expose a whole can of worms that could leads to Tecpro Systems Ltd, the listed company whose stock has seen a precipitous fall ever since it got listed October 2010.
 
Mr Bhatt has filed a complaint before the Mumbai Police Commissioner alleging financial fraud by Ajay Bishnoi and Amul Gabrani of Tecpro Systems, in a company called ASA Productions and Enterprises Pvt Ltd, on which he was a board member and creative director.  He resigned from the company on 30 October 2013.
 
According to Mr Bhatt, ASA set up by Bishnoi and Gabrani, was contracted by T-Series and Reliance Entertainment to produce three films and one film respectively by the two companies. It appears that neither of them were formally the owners of ASA but were represented by family members. When ASA fell into bad times, Mr Bhatt says he got film industry majors, T-Series and Reliance Entertainment to finance four specific film projects to be produced by ASA.  The money was paid to ASA, whose finances were handled by Ajay Bishnoi and his brother Anju Bishnoi.
 
Bhatt alleges that, "Anju and Ajay Bishnoi, who were handling the finance, took all the money from the partners, i.e. T-Series and Reliance Entertainment but did not make a sizeable payment to the technicians, vendors and talent of the said project and embezzled those funds. Having found out about this fraud I resigned from the company on 30th October 2013."
  
"Having goodwill and certain relationships with the said partners, T-Series and Reliance (Entertainment), I finished two of the four projects with my own personal funds, both these were with T-Series. As I write this letter, I am on the verge of finishing the last and final one with T-series," the Bollywood director, known for his horror films said.
 

He further says, "...there are scores of unpaid people including myself who are suffering due to this fraud. Mr Ajay and Anju Bishnoi have perpetrated and now the both of them are unavailable to these creditors. Not only are there unpaid parties but there are statutory liabilities that have not cleared by this company. They have deducted the TDS from the parties but in turn not paid the TDS amount to the government that then means that the parties do not have a TDS certificate. The same can be said for various Income Tax and Sales Tax issues”.
 
Bhatt further says he has also been deprived of share certificates for his holding in the company, as well as his provident fund.
 

What makes this interesting is that Bishnoi and Gabrani are the promoters of Tecpro Systems Limited, a materials handling company, which got listed in October 2010. The stock hit a high of Rs454.25 that month and has been on a continuous decline ever since. It was trading at Rs9.31 on the BSE at time of writing this piece, a fall of 98% from its high. 

 
Techpro has been a big borrower from the banking system with an outstanding debt of a massive Rs6,000 crore plus. It began a Corporate Debt Restructuring (CDR) exercise in 2014. 
 
Last month, State Bank of India (SBI) assigned all rights, title and interests in financial assistances granted by them to Tecpro Systems in favour of Edelweiss Assets Reconstruction Ltd. At one time the company had high profile investors such as London-based Indian businessman Raj Bagri, private equity firm Avigo Capital. Both exited at a loss in early 2014.  
  
In February 2015, the BSE moved Tecpro Systems’ scrip to the restricted trading segment as part of its surveillance measures.
 
Our emails sent to top executives of Tecpro Systems on 29 April 2015 remained unanswered until writing this report. We will publish their view as and when we receive it.

User

COMMENTS

vinay

2 years ago

huge money of suppliers remains unpaid for past couple of years. they have not paid salary to their employees as well

Nifty, Sensex, Bank Nifty on a downtrend – Wednesday closing report
Nifty may get support near 8,000 while Bank Nifty may fall to 17,000, if it goes below today’s low
 
We had mentioned in Tuesday’s closing report that Nifty is headed higher if it manages staying above 8,300. In line with negative closing of US indices on Tuesday and the most of the Asian indices closing in the red on Wednesday the indices back home opened in the negative and suddenly started hurtling lower. After barely half and hour, they had fallen by more than 1%. 
 
Sensex opened at 27,473, while Nifty opened at 8,317. Immediately after hitting a high at 27,501 and 8,332 the indices moved lower. At the end of the session the index hit a low at 26,678 and 8,083. Sensex closed at 26717 (down 723 points or 2.63%) while Nifty closed at 8,097 (down 228 points or 2.74%). NSE recorded a higher volume of 89.37 crore shares. Bank Nifty too lost heavily today. The index opened at 18,437 and after hitting a high at 18,580 the index moved lower to the level of 17,758 and closed at 17,800 (down 672 points or 3.64%). India VIX rose 13.27% to close at 19.6700.
 
The seasonally adjusted HSBC India Services Business Activity Index declined to a three-month low of 52.4 in April from 53 in March. On the positive side, panellists' confidence regarding the one-year outlook for activity improved, indicating that firms are optimistic the current deceleration in growth is a temporary soft patch.
 
The Real Estate (Amendment) Bill was listed for consideration and passing in Rajya Sabha yesterday, 5 May 2015, but opposition members objected to this, saying Housing and Poverty Alleviation Minister Venkaiah Naidu had assured the House that it will be brought only after consultations with various parties. The opposition parties insisted on sending the bill to a Select Committee. Sensing the mood, the government said it was not insisting on taking up the bill although it had been listed for consideration. The Lok Sabha on Wednesday passed the much-delayed and -debated Goods and Services Tax (GST) bill despite a walkout by the Congress party. The bill is likely to get support from most opposition parties in Rajya Sabha.
 
NMDC today said Life Insurance Corporation of India (LIC) has acquired almost 8 crore of its shares shares worth over Rs 1,116 crore in a market purchase. Post the share purchase, LIC's stake in NMDC has risen to 10.124% from 8.111%.
 
Ajanta Pharma rose 5.33% to close at 1411.60. It was the top gainer in ‘A’ group on the BSE. HDIL (10.13%) was the top loser in ‘A’ group on the BSE. Bharti Airtel (0.80%) was the only gainer in the Sensex 30 pack while BHEL (6.21%) was the top loser in the pack.
 
All the sectoral indices on the BSE fell, in the range of 1.65% to 4.24%. BSE Capital Goods (4.24%) was the top loser.
 
On Tuesday US indices closed in the red. Trade-deficit report indicated that the nation's trade gap hit its highest level in seven years. The widening trade deficit suggests that the US gross domestic product reading will go from a meagre 0.2% to negative territory when figures are revised later this month.
 
Asian indices which were trading today closed mostly in the red. Jakarta Composite (0.48%) was the only gainer while the top loser was Shanghai Composite (1.62%) was the top loser.
 
The HSBC China Services Purchasing Managers' Index rose to a four-month high of 52.9 from 52.3 in March, HSBC Holdings PLC said today suggesting activity outside the nation's factories improved modestly.
 
European indices were trading in the green. US Futures too were trading higher. Greece has reportedly made a loan repayment to the International Monetary Fund of 200 million euros ($224.9 million). The Greece government now faces a €750 million ($832 million) debt repayment to the IMF which is due on 12 May 2015. In the UK, Parliamentary Election is scheduled tomorrow, 7 May 2015.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)