 Hello friends, welcome to Cilspedia current affairs digital library so today we are going to see four topics so three on problems and on mains so agree export zones GST revenue collections treat lightning national program so these are under problems topics and NBFC sectors and its present scenario in mains perspective it is the editorial perspective view okay now let's move on to the first topic it is agree export zone so why it is in news okay after 2004 there was no agree export zone created by Indian government okay so this agree export zone was initially started in the year 2000 by Exim policy of 2001 by Apeeda that is agriculture products processing and product export export development authority that is Apeeda it is under ministry of commerce okay so this was started in the year 2001 to strengthen the food processing industries and produce food export zones in most of the countries it was nearly implemented in 20 states okay 20 states on 40 different products okay in 60 different zones okay so it in 20 states 40 different products and in 60 areas okay so these are the basic information regarding agree export zone but after 2004 this agree export zone was not implemented anywhere and Apeeda had stopped its implementation because the expected research from this export agree export zone was not health okay so there was no expected result so they had said that there is no scope for developing another agree export zone if there is no compelling reasons okay that is why they didn't start okay now let's see what is the objective for promoting this agree export zones first they'll boost agriculture exports from India okay they'll have a specific food products that will be processed in an agree export zone that to helpful in exporting our agriculture products just like other industrial goods okay then they can converse state and center efforts already there are so many schemes between center and state for exporting all these food products now all the schemes and efforts will be converged into a single point called agree export zone so that all the efforts will be streamlined to a single area okay then what they're doing is utilizing and coordinating the ongoing schemes so this will help in streamlining the schemes and focusing on a single area that is agree export zone okay then now let's see what are the major components of this agree export zone the first one is it is a cluster approach okay so cluster approach in the sense the geographical area the particular goods which must be there in the same place so that will help in promoting this agree export zone in a particular area so it is based on the products as well as the geographical area then the next one is adopting end-to-end approach that means it is from farm-to-market system so all the areas are interconnected so that the export will be held in a lesser cost okay the next one integration of the activities so the same thing so from the production till the goods trading so everything are integrators so these are the basic components of agree export zones okay now let's see what are the benefits for this agree export zones first one is it can strengthen the backward linkages like it can help to connect the farmers with the market and also the product accessibility and its competitiveness since it is processed and the value addition is done so this components will be accepted globally the next one is value additions and bringing down the cost of production hence everything is streamlined all the efforts are streamlined the cost of production will also get down so this is also another useful thing then better price for agriculture produce and improvement in product quality and we can see the trade related research and development will also increase due to this agricultural export zones and increase in employment opportunity so these are some of the basic benefits of agricultural export zones but the problem here is there's no agriculture export zones developed after 2004 that is the news recent time okay now let's move on to our next topic GST revenue collections for the month December actually the collection is done for the month November which is calculated in the month December so why doesn't news okay what they said that the expected revenue collection is not done in the recent times okay it was like the collection was 94,726 crores compared to 97 637 crore the last previous month okay so they had said this this is the lowest for the previous eight months average okay eight months average only the two months in this year had seen an increase in revenue collection more than 1.01 lakh crore so that is on March and October so it is actually a seasonal development so most of the times October month will see an increase in revenue collection due to the festival seasons so this November there is very less amount of revenue collection compared to the previous month so what they had said is the finance ministry had told that this trend will reduce the expectancy the target of achieving 1.1 trillion of GST collection with this fiscal year okay so what are all the implication which is going to do here it will believe the expectation that means the states share of this GST will reduce due to the lesser amount of color revenue collection by both center and state the devolution of money from center to state will get reduced so that the states will hit harder then GST revenue deficit so due to lesser amount of collection and the lesser amount of collection to all the expected level this will create a fiscal deficit by based on this GST revenue deficit okay the next one so what are all the trends and analysis first one so GST collections most of the time it is below 13 percent about the what we have expected so every time we expect at least 1.1 trillion but it is 13 percent lesser than the budget amount okay then the revenue collection GST is 1.01 trillion in October that is actually the second highest after March month okay then the early targets for this GST is too ambitious that all the time we are getting short of the target okay the next one other choices for the government what are the government can do the first and foremost thing is they can increase the dividend from the central banks but due to this non-performing assets and this promptive corrective actions so this choice is not a viable one the other choices beyond seeing direct tax revenues so this direct tax revenue has also seen only 38 percent of increase so this is also not a viable option the next one is non-tax revenue collections so non-tax revenue collection is a correct option we can choose for it another one is disinvestment of public sector stocks so we have expected to have an 80 000 crore of disinvestment but till September it was only 15 000 crores of disinvestment which is not up to the expected level and other one is the best thing is to reduce the expenditure to increase the fiscal deficit sorry to decrease the fiscal deficit we have targeted for 3.5 percent of fiscal deficit so that can be achieved only if the expenditures are cut down so these are the basic information regarding GST revenue collection for this December month okay now let's move on to our next topic street light national program so street light national program so why it is in news so this program was launched in the year 2015 they have an ambition of creating 1.34 crore LED energy lights within the year March 2019 but we are running short of the target we couldn't achieve this target so this is the basic information the news okay now see what is this street lighting program okay so this program is to increase the energy efficiency in the country by replacing the conventional energy to the LED energy so that is the basic in objective of the scheme and it is conducted by energy efficiency service limiter which is the joint sector under ministry of power it is administered by ministry of power and this one to convert the conventional street lights into domestic lights and to LED lights okay the main objective is there is no subsidy given by the government okay so all the initial cost and everything maintenance costs will be done by this energy efficiency service limiter and this is conducted to the urban local bodies okay so this urban local bodies will sign MOU with these EESL and they start the street lighting program okay for the seven years the maintenance cost and everything will be done by EESL then the urban local bodies is not required to pay the amount okay then what is there that as far as now only thousand four twenty ninety two urban local bodies have signed MOU even then only seven twelve urban local bodies have implemented this street lighting program so that is making this scheme not up to the mark now let's see what are all the provisions given under this the overall target is 3.5 crore of LED lights and the overall energy savings is 9000 million kilowatt hours so this is the basic criteria which was given in this program and the expected reduction of installed street light is 1500 megawatt and cost of reduction 5000 crore and carbon footprint to reduce 6.2 million tons so these are basic objectives of this program okay now what are all these objectives first one it want to mitigate the climate change by converting the conventional energies to this LED energies and reduce the energy consumption in lightning then providing sustainable service model so these LEDs will have a longer lifetime and they don't want to give initial capital amount by the urban local bodies hence it will be a sustainable service model and then they enhance municipal services and upfront of capital cost they don't want to pay the initial capital amount so these are the basic objectives of this street light national program okay now let's move on to our main topic nbfc sectors and the present trends it is based on the editorial perspective so first what are all the nbfcs so nbfcs are non-banking financial corporations which are established as the company under companies act 1956 okay so they are their principal motive is lending giving loans advances acquisitions to other governments or other local bodies so they are the basic objectives of this non-banking financial companies so what they had said is the 2019 year is going to be a reckoning year for non-banking financial sectors till now the sectors had seen a booming okay a booming error but now due to this prompt corrective actions and non-performing assets the non-banking financial companies are also going to see some backlash so how they are going to achieve the backlash and they are going to overcome all these things so this is the basic regarding this editorial now let's see what are all the challenges face first they have to put up with the higher funding cost now they are not giving much loan to the retail investors which are of short-term tenures so that increases the higher cost of funding so that makes the nbfcs more risky and also the sector is becoming more fragile even this il and fs defaulting so we have seen in the recent news il and fs defaulting that shows how this nbfcs are more fragile in their nature compared to the outer view the next one is mismatch between long-term borrowings and lendings here they have reduced the lending to the retail who are short terms but most of them they have the long-term borrowings so in order to miss match these mismatches okay they have to go for external commercial borrowings so that is also seem to be a risky one then next one lower reliance on market borrowings so lower reliance on market borrowings means they have to spend much money in the initial times to get the benefits in the later time and they have borrowing from mutual funds so mutual funds are more riskier because nearly 30% of all the nbfcs funds are from mutual funds which are of short-term tenures and they have so much of liquidity crisis so this order the issues faced by nbfc sectors okay now what can be done for this nbfc sector so first one is asset liability management asset by rba so the nbfcs have to manage the perfect asset and liability criteria due to the defaulting of il and fs which is based on this asset liability management crisis and next one is the managing growth because all now nbfcs had grown now they are going to see the first downturn so they have to have a strong and stringent policies to maintain their growth and the changing the business model so changing the business model to change their issues towards the retail investors and short-term borrowings that will help them to increase their business models and watch out for asset quality due to the reforms made in nbfcs those who are affected are small and medium enterprises so this asset quality must be maintained in order to protect this small and medium enterprises who are the most important persons and this nbfcs also must look upon the priority sector lending in order to make this SMEs protective the next one is diversifying borrowing profiles that means apart from getting the mutual funds they can go for masala bonds external commercial borrowings so and diversifying the loan amounts and borrowing amounts so that will help them to manage this crisis the next one is following on and series lender base okay changing the lender base and borrowing list so add more banks into their borrowing list because most of the banks are getting recapitalization and they are going to get money again from this nbfcs so they have to expand the borrowing list of bank so that the nbfcs can withstand the crisis okay so this is the basic information regarding nbfc sector due to this editorial perspective so with this we conclude our today's topic please like share and subscribe to our youtube channel thank you