Consumer Issues
Maneka Gandhi launches new guaranteed Minimum Pension Scheme

The Union Minister of Women and Child Development, Maneka Sanjay Gandhi gave away certificates of increased pension to the first ten pensioners


The Union Minister of Women and Child Development, Maneka Sanjay Gandhi presided over a function to launch the New Guaranteed Minimum Pension Scheme of Government of India in Dehradun. The Minister gave away certificates of increased pension to first ten pensioners. The government announced the launch of a guaranteed minimum pension of Rs1,000 per month under the Employees Pension Scheme, 1995.


Under the new scheme, the pension has been increased from Rs650 to Rs1,000. Also, the maximum wage limit for eligibility has been increased from Rs6,500 per month to Rs15,000 per month.


Speaking on the occasion, Maneka Gandhi said that this measure has been taken by the government to provide increased social security to workers through the Pension Scheme.


The Minister said that the pension is a small token of gratitude which the nation pays to workers who spend a life time in building the nation through their hard work. Maneka Gandhi also explained the benefits of integrating Jan Dhan Yojana and Employees Scheme which will now enable the Pension to go directly into the accounts of the workers.


The Minister also gave a preview of Swachch Bharat Yojana of the government and its critical applicability to an environmentally fragile state like Uttarakhand.



MG Warrier

3 years ago

If the government is serious about ensuring a reasonably secure post-employment/retirement life for workers who earn 'starvation wages', the organisations like PFRDA (implementing National Pension System), LIC and EPFO should put their heads together and implement schemes that will get resources from employers when employees serve and by managing the funds prudently, these organisations should be in a position to pay a decent regular pension for retirees and their survivors. Rs1000 wll be inadequate, even if the Parliament House canteen facilities are thrown open to pensioners.


3 years ago

I checked this increase in my Pension scheme with Provident Fund Office at Mangalore. This increase is only for those pensioners who had opted for family pension at the age of 58. Please check your increase in pension at your respective EPFO Offices.

Will regional connectivity be mandatory for new airlines?

Civil Aviation Ministry plans to make ‘regional connectivity’ obligatory for new airlines, so that these do not become, ‘non-performing-assets!’


Vistara, Tata-SIA joint venture, was originally scheduled to start its operations during the festive season. It may not be able to do so, as it still has to secure several technical approvals. If the experience is any criterion, it generally takes about eight months to obtain an Air Operating Permit (AOP). Pending approvals include flight operation manuals and other related procedures. Now, why these procedures should take as many as eight months (or about 240 days) to accomplish is a tough question to answer, and it is best left to the Civil Aviation Ministry to clarify as to whether this time frame can be brought down, at least for future applicants.


In fact, Vistara had proposed to start its operations with two aircrafts and complete its fleet of 20 by the end of 2015.


In the meantime, the Civil Aviation Ministry finds that only 75 of the 125 airports are being actually used. It plans to make “regional connectivity" obligatory for new airlines, so that these do not become, "non-performing-assets!” This was stated by the Civil Aviation Minister Ashok Gajapathi Raju, while speaking to journalists, on the sidelines of the 65th AGM of the Aeronautical Society of India (AeSI), Hyderabad Chapter recently.


Perhaps, the minister hopes that by making this mandatory, these under (or practically unused) utilised airports bring about some activity!


While the idea is laudable to support these airports, it may be worthwhile to suggest that the new domestic airlines may be encouraged to schedule, at least one flight a week, so that the benefits start accruing to all concerned? We must bear in mind that if almost all the domestic airlines are at a "loss" and make a "stop-over" at such airports, it may add to their woes! Why not suggest to these airlines to "adopt" at least one airport so that, in course of time, it develops more fully?


Vistara, which has not yet started to operate, because it is still in the "process of completing the formalities and trying to get the required clearances", has appealed to the Civil Aviation Ministry that new airlines be given at least one year grace period before the "regional connectivity" rule is applied to them! In fact, they have gone one step ahead, and boldly suggested that this rule may be made applicable if and when the airline is permitted to fly to international destinations! This is the first time that they have shown interest in "foreign" travel!


The second issue that Vistara has raised is its interest to fly abroad. But it pointed out that the 5/20 rule - meaning five years of domestic air service and fleet of 20 aircraft -is a hurdle. However, other domestic operators, who have gone through this exercise, and who are members of the Federation of Indian Airlines, have protested that the government should not relax this rule, as it will give unfair advantage to new comers!


In the meantime, Air Asia, attempted to become a member of Federation of Indian Airlines (FIA). It has met with a stony silence. FIA has neither invited them nor acknowledged their letters! FIA is a joint forum of Indian carriers like Air India, Jet Airways, IndiGo, SpiceJet and GoAir! It should follow, that Vistara will also get similar treatment when it applies for membership!


If the Civil Aviation Ministry decides to withdraw this 5/20 rule, it is just possible that passenger traffic will increase and the load factor will increase to a respectable 50%.


Already, the Aviation Minister, Ashok Gajapathi Raju has shown his seriousness in following up with various states to tackle the issue of tax on Airport Turbine Fuel (ATF) and reduction in airport charges. Some like Andhra Pradesh have responded to lower tax on ATF, while others like Madhya Pradesh, Chhattisgarh and Punjab have shown interest to do follow suite. So, one of the many ways by which the smaller regional airports could attract domestic carriers to make their airport as the hub or even as a secondary support airport, would be to offer attractive lower airport charges, besides making drastic concessions on ATF!


Some airlines may be persuaded to "adopt" these small regional airports, so that business can be brisk and rewarding to both!


(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)


Study Says ‘Drink Responsibly’ Messages Fall Terribly Short

Responsibility messages promote products instead of conveying relevant public health information, study finds


Why do alcohol companies advertise messages to drink responsibly when they’re not required to provide such warning under federal law or even their own industry standards?

It’s simple, according to a recent study from the Johns Hopkins Bloomberg School of Public Health: To reinforce their brands and further boost their products.

While the study found responsibility messages in nearly 9 out of 10 alcohol ads appearing in U.S. national newsstand magazines from 2008 to 2010, not one “provided any information about what it means to drink responsibly,” said study leader Katherine Clegg Smith, an associate professor in the Department of Health, Behavior and Society at John Hopkins.

“Instead,” Smith said, “we found that the vast majority of responsibility messages were used to convey promotional information, such as appealing product qualities or how the product should be consumed.”

Smith co-authored a report on the study that gave examples of how responsibility messages were used to pump up the qualities of a product, appeal to the qualities of the drinker, and convey what the product can provide — all in lieu of a defined message about the potential dangers of drinking. Here are some of the messages conveyed in the ads:

“Handcrafted to be savored responsibly.” (Tito’s handmade vodka)

“Sophistication is moderation. Please drink responsibly.” (Chambord flavored vodka)

“Amarula is a rare find. Appreciate it accordingly.” (Amarula Cream)

“Be a champion. Drink responsibly.” (Crown Royal)

“Drink with style. Drink responsibly.” (Perroni Mastro Azzurri)

“Explore your curious life responsibly.” (Kahlua)

“Relax Responsibly.” (Corona)

The report stated that the findings were not surprising given “the goal of advertising is to promote product purchase and consumption.” It also noted that neither federal regulation nor voluntary industry standards require responsibility messages in alcohol ads. “While prevalent and influential, alcohol advertising is subject to minimal federal regulation.”

Industry says messages “just one aspect”

The Distilled Spirits Council of the United States, the self-regulating arm of the liquor industry, acknowledged that responsibility messages have a role in advertising.

“Responsibility messages serve as a reminder to consumers to drink in moderation, and represent just one aspect of the industry’s commitment to social responsibility,” the group said in response to a query asking if it had a specific stance on “drink responsibly” messages.

The group said its commitment to responsibility programs has led to declines in both underage drinking and drunk driving.

The association also questioned the merits of one of the study’s authors.

“Study author David Jernigan is an industry critic who has squandered millions of dollars in federal funding on advocacy research, and spends zero on actual responsibility programs to combat the problem,” the group said.

Jernigan responded that his research works toward presenting methods to reduce excessive alcohol consumption, particularly among young people who are more impressionable than adults when it comes to alcohol advertising.

“Alcohol is the most frequently used drug among youth, and responsible for over 4,000 lives lost every year in the U.S. among persons under 21,” Jernigan said. “This is why U.S. public health dollars support research which will contribute to evidence-based public policy decisions.”

The Centers for Disease Control and Prevention funded the study.

Report calls for warning messages similar to tobacco

Calling an outright ban on alcohol ads infeasible, the report recommended that the alcohol industry modify its responsibility messages to mirror the public health warnings used in tobacco advertising.

“We know from experience with tobacco that warning messages on product containers and in advertising can affect consumption of potentially dangerous products,” Smith said. “We should apply that knowledge to alcohol ads and provide real warnings about the negative effects of excessive alcohol use.”

The Distilled Spirits Council’s code does not specifically address how to handle responsibility messages, but it does state that advertising shouldn’t suggest that consumers “can attain social, professional, educational, or athletic success or status” from drinking alcohol.

While this is a guidance that the aforementioned Crown Royal ad (“Be a champion. Drink responsibly.”) appears to ignore, adherence to the code is optional. The Beer Institute, which represents the beer industry, has a similar voluntary code on how alcohol advertising should be conducted.

The alcohol industry has worked with the FTC on such topics as underage drinking but how far the industry is willing to go to push a message of responsible drinking depends largely on the extent it is willing to police itself.

More information can be found here on alcohol advertising.




We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Online 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)