7th Pay Commission

The Central Pay Commission: A Long Standing Government Scheme

Central Pay Commissions are generally introduced at a periodic interval of 10 years. The 6th pay commission was referenced on 1st January 2006. Thus the Terms Of Reference for the 7th pay commission was approved on 2014 for its commencement by 2016. All details of the Central Pay Commission has been discussed below.

7th Pay Commission

What are The “Terms of Reference”?

Terms of Reference defines a set of guidelines that govern all the central pay commissions. These terms are cross verified and revised in order to support the demands of all central government employees.

What Are The Factors on Which Central Pay Commissions are Based?

The Pay Commissions basically takes the following factors into account:

  • The basic pay scale of a central government employee.
  • The miscellaneous facilities and allowances that are provided in terms of cash or benefits.
  • Assessment of the existing pay structure along with incentives in order understands its impact on employee productivity and satisfaction.
  • The retirement schemes including the pension benefits are taken into account.

Who Are The Government Employees Benefiting from Pay Commissions?

Given below are the list of government officials who benefit from the pay commissions:

  • Members of Indian Defence.
  • Official members of Supreme Court.
  • All the regulating government bodies except the RBI (Reserve Bank of India).
  • Employees of central government who work in industrial as well as non-industrial sectors.

What Are The Factors Taken Into Account For The 7th Pay Commission?

The 7th Pay Commission, which is the latest Central Pay Commission, has various Terms of Reference that were considered before its commencement. It includes statistics like the nation’s financial scenario, economic standing as per other countries and review of benefits in the existing pay commission. The State Government follows the Central Pay Commission hence a complete economic picture of India is required. Also, before upgrading to the 7th Pay Commission, the Government calculated if there were ample funds left for the infrastructural development of the nation.

What Are The Important Factors And Latest Developments In 7th Central Pay Commission?

The Government had decided on a fitment factor of 2.57 by which the salary of a government employee will increase in the 7th Pay Commission. Also, the House Rent Allowance or HRA will be reduced from 10%, 20% and 30% to 8%, 16%, and 24%. There is a total of 196 allowances under Central Pay Commissions. Out of them, 52 has been discarded completely and 36 are under assessment. The government employees have demanded the fitment factor to be increased to 3.16.

What Are The Controversies That Surround Central Pay Commissions?

There is one particular controversy regarding the Central Pay Commission that has yet not been resolved. Mostly IAS officers have been the members of the panel that is formed to authorize the pay commissions. As a result, it is seen that IAS officers reap more benefits than the other government employees when each pay commission commences. Thus there have been demands to include members from other government organizations and civil services officers to be included among the Pay Commission members.


Sukanya Samriddhi Account

Sukanya Samriddhi Yojana: All You Need To Know

Betterment of the girl child in our nation is a matter of utmost independence. The changing face of India under Narendra Modi was marked by yet another scheme launched by him to empower the girl child. Sukanya Samriddhi Yojana is a financial savings scheme offered to all families to bear the basic expenses of the girl child, especially her education.

Sukanya Samriddhi Account

Why Should You Invest In Sukanya Samriddhi Yojana

Gender equality and protection of women in the still orthodox parts of India is a pressing issue. Thus the financial independence of women is becoming much more important. Sukanya Samriddhi Yojana promises a bright future to every Indian girl child. For the unfortunate ones, this is a scheme that guarantees education and other basic expenses. Also, the scheme offers major benefits in terms of investment options, tax savings, and return policies. But, investing in Sukanya Samriddhi Yojana is not only to avail those extra benefit, but also to empower the female population of the country.

How To Open A Sukanya Samriddhi Account

The idea of Sukanya Samriddhi Yojana is to open an account for the girl child of your family. This has to be done at the corresponding bank or post office of your local area. Given below are the details of opening an account at the Bank or Post Office:

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Opening an Account At Bank or Post Office

Since Post Offices are the most widespread network of accounts in our country, a Sukanya Samriddhi Account can be opened at any Post Office. Also, there are branches of few banks that are government authorized for allowing citizens to open a Sukanya Samriddhi Account. A form is available at the Post Offices and authorized bank branches that pertain to Sukanya Samriddhi Account initiation. After filling this form it has to be submitted along with the required documents to your corresponding bank or post office. The documents will them be verified and the form will be approved. Thus, the Sukanya Samriddhi Account can be opened in the name of the girl child. The account can be opened by the parents or legal guardians of the girl child, who are responsible for making the deposits towards the account.

Eligibility Criteria For Sukanya Samriddhi Account

There are certain eligibility criterions governing the opening of an account under the Sukanya Samriddhi Yojana. They are as follows:

  • A Sukanya Samriddhi Account can be opened in the name of a maximum of two girl children of the family. In the case of twins, the Yojana can be extended to a third child.
  • The scheme has to be availed any time before the girl child reaches an age of 10 years.
  • Withdrawal can be made from the account only after it has been valid for a minimum of 14 years.

Documents Required To Open An Account Under Sukanya Samriddhi Yojana

The list of documents stated below is the mandatory documentation required by the banks or post office to commence a Sukanya Samriddhi Account.

  • The filled application form for opening the account.
  • Birth Certificate of the girl child in whose name the account is being opened.
  • ID Proof and Address proof of the parents or legal guardian who are opening the account to make the required deposits.

Rate Of Interest For Sukanya Samriddhi Yojana

The deposits made in Sukanya Samriddhi Scheme are subject to producing good interest rates. As of the current financial year 2016-2017 the interest rate offered if 8.6% per annum. When the scheme first started in the financial year 2015-2016, the rate of interest was 9.1%.

Tax Benefits On Investing In Sukanya Samriddhi Yojana

The parents or legal guardians who are the depositors of the Sukanya Samriddhi Account opened in the name of their girl child can avail tax benefits. The benefit is a tax deduction of up to INR 1.5 Lakhs under the Section 80C of the Income Tax Act. But any amount deposited over 1.5 lakhs is not liable to any deductions.

Withdrawal Policy For Sukanya Samriddhi Account

There are certain rules pertaining to withdrawal of funds from the Sukanya Samriddhi Account or permanent closure of the account. Given below are the details:

  • When the girl child attains an age of 21 years, complete withdrawal can be made from the Sukanya Samriddhi Account. No complete withdrawal is allowed before that.
  • There is a provision for partial withdrawal of funds (50%) when the girl child has reached 18 years of age. But this partial withdrawal is subject to providing a reason that is urgent in nature.
  • Complete account closure is possible when the girl child is 21 years.

All the withdrawals that are made from the account must be solely in the name of the girl child.






all government schemes 2014-17

Complete List of All Government Schemes (2014- 2017)

The reign of Narendra Modi has been earmarked by government schemes that aimed to change the face of India over a span of 5 years.  Health and other socio-economic reform schemes were introduced keeping in mind all the social strata existing in the country. Here is the list of all government schemes that were launched since 2014:

all government schemes 2014-17

Government Schemes 2016-17

To get a detailed information about all the schemes started by the Modi Government in the year 2016-17 you can refer to the following post:

Read More: List Of Government Schemes Started By Modi Government In 2016-17

Government Schemes 2015

  1. OROP: 5th September 2015

The One Rank One Pension scheme stated that individuals who retired with the same rank and service duration can avail the same amount of pension money irrespective of the year in which they retired. This scheme was started basically to cater to the army personnel as in such cases the rank matters a lot. Thus a general who retired 20 years ago will get the same pension as a general who recently retired.

Read More: One Rank One Pension Scheme: OROP Review

  1. Pradhan Mantri Jan Aushadhi Yojana: 21st July 2015

Narendra Modi launched this scheme for health reforms in the nation. This scheme stated that Jan Aushadhi stores spread all over the country would sell medicines at an affordable cost as compared to the market price. A financial assistance will be provided to NGO groups and other private hospitals by extending a fund of 2.5 Lakhs INR each to them. With these funds, the organizations were encouraged to open these Jan Aushadhi stores. The scheme ensured that everyone can afford medicines at the time of need.


  1. Skill India: 15th July 2015

Skill India was a scheme introduced by Modi in order to create a larger platform for developing the talents of an individual with good technical skills. This scheme basically caters to the youth of India by encouraging them to enhance their talents and come forward in order to build a skillful nation.


  1. Pradhan Mantri Krishi Sinchai Yojana: 1st July 2015

The PMKSY aimed at improving the agricultural sector of India. Under this scheme, proper irrigation facilities were to be provided to all the areas that involved agricultural activities. Thus water provision and water recycling facilities will be provided in those areas enabling the implementation of the concept of “More Crop Per Drop”. There has been a major growth in the quantity and quality of cultivable land after the introduction of this scheme.

Read More: Pradhan Mantri Krishi Sinchai Yojana


  1. Digital India: 1st July 2015

Narendra Modi introduced this scheme in order to promote the development of the country by digitizing it. Digitization included providing technical education to all citizens and improving the Internet speed and connectivity. Also, the scheme involved encouraging the use of online facilities by promoting them and making their interface user-friendly.


  1. Pradhan Mantri Awas Yojana:  25th June 2015

This Scheme launched by Narendra Modi aims at providing housing to all Indian citizens. It basically caters to the individuals and families falling under the Economically Weaker Sections (EWS) and Low Income Groups (LIG). The implementation will be through funding the poor families so that they can afford housing, home loans and subsidy linked housing facilities. Thus an approximate number of 5 crores homes will be provided for the financially deprived families and individuals to reside in. This scheme is to continue over a span of 4 years.

Read More: PMAY Scheme for the Year 2017: Pradhan Mantri Awas Yojana

  1. AMRUT Scheme: 24th June 2015

Atal Mission For Rejuvenation And Urban Transformation or AMRUT Scheme aimed at improving the infrastructural conditions of Urban India. This included building proper roads, improving transport facilities, providing clean drinking water and developing the sewerage systems. Another dimension of this scheme was to eradicate the pollution in urban areas by introducing pollution control methods and increasing the greenery in cities.

Read More: AMRUT Scheme

  1. Pradhan Mantri Jeevan Jyoti Beema Yojana: 9th May 2015

This scheme was launched keeping in mind the fact that a meager population of India was covered by a proper Life Insurance scheme. Thus every individual was encouraged to contribute in this scheme for increasing the insurance coverage of citizens. Under this scheme, a minimum contribution of 330 INR yearly premium was required for a citizen to avail an insurance cover of 2 Lakhs (minimum). Thus there was an increased participation of citizens in this scheme.

Read More: Pradhan Mantri Jeevan Jyoti Bima Yojana

  1. Pradhan Mantri Suraksha Beema Yojana: 9th May 2015

This government scheme aimed to increase the coverage of a citizen of India in the case of an untoward accident. An individual can avail an insurance cover of 2 Lakhs INR by investing a premium of 12 INR only. Thus the scheme spread awareness among everyone to avail for an accident cover.


  1. Atal Pension Yojana: 9th May 2015

Another protection scheme was launched by Modi in form of the Atal Pension Scheme. This scheme ensured that every individual had a pension facility to their name. Thus the number of pension account beneficiaries were increased by promoting the requirement of a pension scheme for an individual. According to this scheme, a subsidiary can avail a pension of 1000 INR to 5000 INR per month according to the investment done.


  1. Smart Cities Scheme: 29th April 2015

Smart City Scheme was launched under the reign of Modi to take a further step in the development of the country. Under this scheme, a smart and digitized approach will be undertaken to improve the facilities in Indian cities. This includes proper water and electricity supply along with facilities like better transportation, good Internet speed, and few safety measures.

Read More: Smart Cities Yojana: Benefits, Motives, and News

  1. Pradhan Mantri Garib Kalyan Yojana: 19th April 2015

This scheme was introduced as a welfare scheme by Narendra Modi in order to provide financial support to the poverty struck citizens. The concept was to organize workshops all over the country which citizens can pay and attend. Funds raised through these workshops will go directly to the account of PMGKY. Post demonetisation, all black money holders were encouraged to get rid of their unaccounted cash via contributing a part of it to PMGKY.

Read More: Pradhan Mantri Garib Kalyan Yojana

  1. MUDRA Yojana: 8th April 2015

Micro-finance Units Development And Refinery Agency or MUDRA was a scheme launched in order to provide proper financial support to all small businesses in the country. Start-ups and other microfinance sectors can avail a loan ranging from 50,000 INR to 10 Lakhs INR under this scheme. The loan provided to these small business units will enable them to expand and develop which in turn will be profitable for the country.


  1. PRASAD Scheme: 9th March 2015

Pilgrimage Rejuvenation and Spiritual Augmentation Drive or PRASAD Scheme aimed at providing an excellent tourism framework to the famous spiritual cities of India. This included cultural promotion of these cities via different media. Also, it involved the development of facilities to attract more tourists and make these cities a hub for financial income through tourism.


  1. Sukanya Samriddhi Yojana: 22nd January 2015

Narendra Modi launched this scheme to empower the girl child. The scheme stated that the parents of a girl child could start a Sukanya Samriddhi Account under her name for a duration of 14 years. This sum deposited in the account matures at a rate of interest as decided by the government. When the girl child is 18 years of age, then withdrawal can be made from this account for her education purposes. Also investing in this scheme would qualify for tax exemption under the Section 80C.


  1. HRIDAY Scheme: 21st January 2015

The Heritage City Development and Augmentation Yojana was launched in order to revitalize the Indian roots by the development of the heritage sites of India. 12 heritage cities were funded under this scheme to undergo development in terms of road connectivity, sewerage facilities, living conditions and a tourism friendly environment. The HRIDAY also aimed at financially supporting these cities by increasing the development on the tourism front. Also, the scheme ensured that the historical pride of India remains intact and protected.

Read More: HRIDAY Scheme: All You Need To Know

Government Schemes 2014

  1. Indradhanush Scheme: 25th December 2014

Indradhanush Scheme is a health and welfare scheme launched by the Modi government with the objective of protecting every Indian child from threatening diseases. The implementation of this Scheme involves vaccination of all children against diseases like polio, tuberculosis, tetanus, measles, pox, hepatitis, etc.


  1. Relaunch of PAHAL: 15th November 2014 (LPG Subsidy Scheme)

The PAHAL Scheme or LPG subsidy scheme employs the direct benefit transfer of LPG subsidy. This means that the LPG subsidy will be directly linked to the bank account of an individual from a particular domestic household. The bank account will be linked to the Aadhar card in this case. Thus the extra charge that is taken for transportation and other purposes is not actually government approved procedure. Basically, to eradicate those purposes, PAHAL was launched.

Read More: LPG Subsidy Scheme: PROS, CONS, Success Rate and Recent News

  1. Pradhan Mantri Bal Swacchta Mission: 14 November 2014

Another health and sanitation mission was undertaken by the government with this scheme. The main objective of Bal Swacchta Mission was to spread awareness regarding cleanliness habits among the children of India. This was done by implementing practices that ensured a clean environment, drinking water and sanitation facilities for children in schools and other surrounding areas.


  1. UDAAN Scheme: 14th November 2014

UDAAN Scheme was introduced by the Modi Government in order to promote the concept of women empowerment. Under this scheme, a meritorious female child can avail education, mentoring and scholarship services from the government in order to gain knowledge in the technical field. The scheme also wants to implement better education practices by enhancing teaching methods that will help these meritorious students.


  1. Pradhan Mantri Sansad Adarsh Gram Yojana: 11th October 2014

A huge step was taken towards rural development with the launch of this scheme. The aim of Sansad Adarsh Gram Yojana was to revolutionize the framework of rural India. To enable this all kinds of cultural, economic and structural reforms were undertook in villages. The concept was that each Member of Parliament is to take the responsibility of developing the conditions of three villages by 2019.

Read More: Sansad Adarsh Gram Yojana Objectives, Plan, Strategy

  1. Pradhan Mantri Fasal Bima Yojana: 11th October 2014

One of the largest cropping zones in India is where the Rabi and Kharif crops grow. These crops are sensitive and liable to damage in case of untoward natural conditions. Thus farmers responsible for growing these crops will be provided an insurance cover under this scheme. The insurance can be availed by paying a small premium. In the case of damage to these crops, farmers will be given the insurance amount thus ensuring that they can avail the minimum means to sustain.


  1. Swacchh Bharat: 2nd October 2014

Launched on Gandhi Jayanti, this scheme aims at fulfilling Gandhi’s mission to achieve a clean nation. Thus Swacchh Bharat aimed at providing public awareness for maintaining a clean environment by inculcating sanitary habits. It also aimed at improving the drinking water facilities and the cleanliness amenities in deprived and rural areas.


  1. Make In India: 25th September 2014

The Make In India Scheme was launched to inculcate within the citizens a tendency to depend on Indian manufactured products rather than foreign goods. Thus may small and multinational companies were engaged in building Indian products of the best quality to attract people. Also, an awareness was spread among the nation stating that if the scheme was successful, India will develop economically to a large extent.


  1. Deen Dayal Upadhyay Grameen Kaushlaya Yojana: 25th September 2014

This scheme was launched in rural India to increase the productivity of rural India by increasing the number of employed individuals. Thus there will be overall skill development among rural workers if they are engaged in different means of earning regular wages. The entire scheme will thus lead to the growth or “kaushlaya” of a village.


  1. Pradhan Mantri Jan Dhan Yojana: 28th August 2014

Previously India was underdeveloped in the financial sector due to many citizens not having a bank account. The Pradhan Mantri Jan Dhan Yojana aims at spreading an awareness and educating every citizen regarding the banking facilities that exist. Thus the idea of banking, savings, investment and insurance policies were promoted enabling everyone to implement them. Also, many bank branches were started in remote areas for the convenience of people residing there.









Pradhan Mantri Krishi Sinchai Yojana

Pradhan Mantri Krishi Sinchai Yojana or PMKSY is a government scheme introduced on 1st July 2015 in order to improvise the farming market of nature. The scheme aimed at better productivity from rural farming by utilizing necessary resources in a proper manner. Cabinet Committee on Economic Affairs took up this scheme under the leadership of our honorable Prime Minister, Narendra Modi. A budget of 500 billion INR was drawn to cater towards PMKSY.


Objectives of PMKSY

The PMKSY mission aimed to fulfill the following objectives:

  • A channelized irrigation system in farms to provide required water in fields.
  • Development of existing land and to utilize cultivable land for better productivity.
  • Introduce technologies which make the best of water as a natural resource and ensures conservation too.
  • Involvement of the administration in order to draw a financial plan in order to commence the use of those technologies.
  • Proper research in recycling the waste water to promote “More Crop Per Drop“.

Implementation Of PMKSY

The Indian nation is largely dependent on its agricultural sector for profits and development. Thus improper cultivation of crops leads to the suffering of many individuals and the society as a whole. Since agriculture largely depends on the availability of water, the implementation of PMKSY largely depends on the irrigation systems. Thus the government has taken the following steps:

  • Keeping in mind that 55% of the cultivable land in India does not have proper irrigation facilities, approximately 6 Lakh hectares of land has been brought under irrigation.
  • There are parts of cultivable land that suffer under poor irrigation techniques. Thus a part of the funds went to approximately 1300 watershed projects to improve those conditions.
  • The irrigation facilities are to be administered on district and state level by a supervising board called National Steering Committee (NSC). Narendra Modi is the chairman of this committee which consists of ministers as state (where PMKSY is implemented) representatives.
  • “More Crop Per Drop” is being implemented by optimal use and reuse of water resources. This is having a two-way benefit: clean water for crops and water conservation. The success of PMKSY largely banks on water preservation so a large part of the funds in being utilized to recycle water using modern technologies.
  • Apart from improving the efficiency of farming techniques, the government has also made a provision for the promotion of the National Agricultural Market. From the original budget, 200 crore INR has been extended to promotion policies to increase the sale of crop produced.

Benefits For Farmers Under PMKSY

Farmers are the key members involved in PMKSY. Thus their well-being is a matter of utmost importance for the Central Government. Thus apart from providing cultivable land and promoting their produce, other benefits have also been introduced for rural farmers:

  • Launching Pension Schemes aimed at supporting farmers financially.
  • The introduction of Insurance Schemes that protects farmers on a monetary basis in case of an untoward emergency.
  • Introducing techniques of organic farming keeping the health benefits in mind. Also, educating the farmers about organic farming techniques for promoting better cultivation of crops.




Heritage City Development And Augmentation Yojana (HRIDAY Scheme)

The Heritage City Development And Augmentation Yojana or HRIDAY is a government scheme that was launched on 21st January 2015. The main objective of this scheme was to preserve the rich Indian Heritage that was taking steady steps towards deterioration. The concept was to develop Ancient India alongside Urban and Rural planning and management. This Scheme would cover under it the cities which are Indian Heritage sites.


Birth Of HRIDAY Scheme

India is a land of diverse cultural traditions. People of all religious strata reside in India from time immemorial. Thus India houses a classic and rich collection of music, art, literature, handicrafts and architectural wonders. Conservation of these resources has often been a neglected process. The efforts were mainly from local communities residing in Heritage sites. But they did not have the full means to implement their ideas. The Central Government focused basically on financial issues, urban development, provision of facilities like sewerage connection and water supply. This resulted in the Heritage being derelict. Proper direction, sanitary facilities, lighting and other decorative aspects were found missing from Heritage sites. Thus the pride of India suffered.

This is when HRIDAY came to play. The Scheme took up the objective to develop Heritage cities on an overall basis. Conservation of the main monuments was the key objective, but not the only objective. HRIDAY covered an entire Heritage City and aimed to improve its sanitary systems, economic status, and quality of basic services provided. This, in turn, would lead to financial development via tourism, thus exposing the Indian culture maximally.


Objectives Of HRIDAY Scheme

HRIDAY aims to develop the basic heritage framework of India by conserving and renewing ancient infrastructure like:

  • Ancient Monuments
  • Temples and their architecture
  • Prayer Ghats

Apart from the infrastructural development of the heritages stated above, the cities around them would also undergo a revitalization. This includes improved sanitary facilities, sewerage system, connectivity through main roads and transportation facilities. Thus the main objective revolves around the following ideas:

  • The HRIDAY scheme is to be implemented over a period of approximately 4 years ( January 2015 to November 2018).
  • Development and Improving the framework of Heritage sites.
  • Improving public service delivered to cities with heritage sites.
  • Keep a documentation of all heritage sites ready to refer to the architectural and cultural aspects while development.
  • Improve the connectivity to heritage sites through roads so as to make tourism easier.


Growth And Implementation Of HRIDAY Scheme

The 4 years allotted to implementing the HRIDAY scheme with cover 12 major cities identified as the heritage sites of India. They are:

Amaravati, Amritsar, Ajmer, Badami, Gaya, Dwarka, Mathura, Kanchipuram, Velankanni, Varanasi, Puri, and Warangal.

These are the targeted cities in which the objectives are being currently implemented. Thus from the development and tourism point of view, a large progress has been made.


Funding Towards HRIDAY

The government of India has allocated a total asset of 500 crores INR to fund the HRIDAY Scheme. The funds are divided as follows:

  • 85% of the funds will go towards specific heritage site improvement.
  • 3% of the funds will go towards the development of heritage city.
  • The cost of operation and administration is covered by 1% of the funds.
  • Improving communication and networking is covered by 4% of the funds
  • To increase the capacity of local communities aiming to develop these sites, 3% of the total funds are being allocated.
  • 4% of the funding will go towards the preparation of reports and other documentation regarding the heritage sites.

The above division stands for the funds allocated to each of the 12 cities for heritage development.


Atal Mission for Rejuvenation and Urban Transformation (AMRUT Scheme)

Atal Mission for Rejuvenation and Transformation or AMRUT Scheme was introduced by the honorable Prime Minister Narendra Modi on June 2015. The key focus of the scheme is to re-launch urban projects to promote the development of proper infrastructure in Urban India. This scheme aims at overall Urban transformation with an improved framework, sewage disposal and proper water supply in all areas.  AMRUT follows a Public Private Partnership model. This means that on the demand other related schemes like Swachh Bharat Abhiyan and Housing For All can be linked to AMRUT as they all aim at urban development.


Budget For AMRUT

AMRUT collectively covers many government schemes at once. It is a part of Swachh Bharat and Housing For All. Also, AMRUT covers under it the “Smart City” objective designed by Modi for revolutionizing urban areas. Thus the budget drew collectively for AMRUT and “Smart City Plan” is approximately 1 Lakh Crore INR. Since its launch, AMRUT has seen a commencement of implementation in over 500 cities.

Application For AMRUT Scheme

Application towards AMRUT is made from the state towards the central government. A State Annual Action Plan (SAAP) needs to be submitted to the Central Government. The SAAP includes all Service Level Improvement Plans (SLIPs) required in an urban area. This proposed SAAP is then approved by the government, after which necessary steps are taken towards development. The SLIPs are drawn in accordance with the development required on a city-wise basis. The SLIPs might propose the following development ideas under it:

  • Improvement in quality and quantity of water supplied for domestic and other uses.
  • Improvement of sewer networks for proper disposal of urban waste.
  • Better connectivity via road and improving transportation facilities.
  • Improving the state of existing infrastructure and development of a better framework.
  • Digitized facilities like Wi-Fi and proper internet bandwidth.
  • Improvement in the industrial sector.

Rajasthan was the first among all states to submit SAAP to the Central Government in order to implement AMRUT

Target of AMRUT

States can submit SAAP to the government proposing several improvements to be made under the AMRUT scheme. The target the government aims at after the SAAP proposal are as follows:

  • Sanitized water is available for domestic and other purposes in all parts of a city.
  • Increasing the green space around the city by planting more trees and encouraging an environment-friendly framework.
  • Improving the public transport in a city and ensuring proper safety.
  • Controlling industrial pollution.
  • Implementing Wi-Fi and other digitized facilities to promote the “Smart City” plan.

Success of AMRUT

In its first phase of implementation, AMRUT has been approved and funded for Rajasthan, Gujarat and Andhra Pradesh. There have been further proposals made via SAAP. AMRUT has been implemented in more cities in the following manner:

  • Murshidabad district of West Bengal has been approved for AMRUT.
  • The sewer network systems of Amaravati district in Andhra Pradesh is being improved. Also, city wide provision of water is being implemented.
  • In Haryana, AMRUT has been linked with Swachh Bharat Abhiyan to promote better development in terms of waste management, water supply, and sewage systems.
  • Maharashtra has proposed for AMRUT implementation in 43 cities.
  • Madhya Pradesh has submitted SAAP for 34 cities to improve the water supply and waste management systems.
  • In Telangana, AMRUT is being implemented in 11 cities to improve the supply of water.
PMAY 2017

PMAY Scheme 2017: Pradhan Mantri Awas Yojana

Housing is a basic necessity for every human being. It provides a sense of security and ensures an environment of nourishment. It has over the years become a pivotal survival need. Keeping this in mind, Narendra Modi launched the Pradhan Mantri Awas Yojana in June 2015. This scheme has one simple objective: providing housing to all. The primary target of this scheme are the low-income groups or economically weaker sections of the society, female citizens and scheduled caste and scheduled tribe candidates.

PMAY 2017

Divisions In PMAY

There are two types of division under the Pradhan Mantri Awas Yojana. The schemes that  are completely sponsored by the central government are:

  • Land Allocation to slum dwellers in order to implement in-situ development.
  • Affordable housing facilities.
  • Subsidy for the construction of house or renovation of a house.

The scheme which acts as the Central Sector Scheme of PMAY is Credit Linked Subsidy Scheme.

Features of Government Sponsored Schemes Under PMAY

We will first discuss the features of all the government sponsored schemes. Following are some key points under this:

  • The lower income groups and economically weaker citizens of urban India will get a housing subsidy from the government. The amount of subsidy attained from the government is approximately INR 1 Lakh. Thus the weaker earning sections will be able to afford housing facilities easily. It falls under the government sponsored schemes.
  • Women and differently abled individuals will be given preference under this Scheme. The preference is given in sense that their application will be processed and taken into consideration earlier. This falls under the government sponsored scheme.
  • For the development of rural India, housing facilities are being to all slum dwellers and the homeless citizens. Under the Union Budget 2017-18, 23,000 crore INR is being extended towards this project.

To sum up the features, the government is crediting INR 100,000 to citizens who belong to the weaker earning sections. Also in the case where citizen under this category wants to buy a house or renovate their house a loan of INR 1.5 Lakhs will be extended from the government.

Credit Linked Subsidy Scheme Under PMAY: Features

There will be a subsidized rate of interest linked to house loans. According to Union Budget 2017-18, there has been an increase in the time period from 15 years to 20 years,  for the rate of interest will be to be 6.5%. The market rate for housing loans is 10.5%. This means that if someone applies for a home loan under PMAY, then they can enjoy a benefit of 4% where the interest rate is concerned. This scheme is also known as the Credit Linked Subsidy Scheme.

The subsidized interest rate ensures that the EMI that the beneficiary of loan has to pay will be much lesser than normal market rates. For example, if a person avails a loan of INR 6 Lakhs, the EMI payable as per market rates (10.5%) for 20 years is INR 8842. For the same principle, the EMI payable at subsidized rate of 6.5% for 20 years is INR 5400. Thus a benefit of INR 3442 is gained.

Some important characteristics of the Credit-Linked Subsidy Scheme are as follows:

  • Only urban sections of the society belonging to lower income groups (LIG) and Economically Weaker Sections (EWS) can avail this loan.
  • To get subsidized rates of 6.5%, the maximum loan value is 600,000 INR. Above this limit, the interest has to be paid at market rates.
  • If the loan period is exceeding 20 years, then the beneficiary has to pay at subsidized rates for first 20 years. The remaining balance has to be paid at market rates.
  • In the case of house extension or renovation, the loan will only be provided if the carpet area of the house is 30 meters for EWS category citizens and 60 meters for LIG category citizens.

Pradhan Mantri Garib Kalyan Yojana

Pradhan Mantri Garib Kalyan Yojana or PMGKY is a government scheme introduced by Narendra Modi in 2015 and was amended post demonetisation on 16th December 2016 to abolish poverty. The idea is to direct all the black money to improvise the conditions of the impoverished.


Objective Of PMGKY

When PMGKY was first introduced they had the following goals:

  • A series of workshops will be conducted for all citizens of the country. Each participant has to pay a small amount of money to register for the workshops.
  • All workshops will be conducted under the supervision of different Members of Parliament to analyse the proceedings and improvements.
  • Several ministers were encouraged to take part in these workshops in order to contribute to the funding for the weaker sections.

Why Re-Introduce PMGKY?

The Pradhan Mantri Garib Kalyan Yojana is the opportunity for all black money holders to convert their illegal financial assets to legal ones by investing in PMGKY as a penalty. The denominations, INR 500 was changed and INR 1000 was eliminated on 8th November, creating history in the nation and ruckus for all black money holders. A time frame was given to all citizens to exchange the old currency notes with new ones setting a limit for the money to be exchanged. Those with a huge amount of black money dealt with this blow by burning stacks of 500 and 1000 currency notes. Having observed this, the PMGKY introduced in 2015 was revised according to new tax laws in 2016. Thus while the original objectives were maintained this new amendment came into play to enable all black money holders to rectify the nature of their monetary assets.

Implementation Of PMGKY Post Demonetisation

When PMGKY was launched, Modi stated that a part of the government funds will be indulged in conducting paid workshops and raising money for the weaker sections of society. After demonetisation, the laws were modified to raise a greater amount of money to abolish poverty under PMGK.

  • The unaccounted black money held by citizens operating unlawfully will be declared confidentially via contributing it to PMGKY
  • The earlier Income Tax Act was modified by honourable Finance Minister Arun Jaitley to make these amendments.
  • The black money will be charged in two ways: 50% taxation for the illegal wealth attained with some of the amounts to PMGKY.
  • Apart from the above divisions for black money penalty, 25% of the black money will be invested in the account of PMGKY for a period of 4 years. This investment will not be liable for returns through interest rates for that duration.
  • Initially, all the national and co-operative banks were to operate in accordance with this scheme. But later co-operative banks were disallowed from continuing as they were suspected of converting the black money to legal currency for personal profits.
  • The PMGKY tax reform can be availed till 31st March and all black money holders are being encouraged to participate in it as the proceedings will remain anonymous.

How To Deposit Money Under PMGKY

All black money holders aiming to convert their illegal wealth confidentially, must make the deposits in a Bonds Ledger Account maintained by the Reserve Bank of India. A certificate will be drawn in the name of the beneficiary who has declared the illegal money. The deposits can be made in all denominations that are a multiple of 100. All deposits have to be made by the black money holders at one time for complete transparency and avoiding pilferage. A Bonds Ledger Account will commence only after a deposit is made via cash, cheque or online banking to the authorised banks under this scheme. 25% of these deposits made will be invested without interest for 4 years under PMGKY.

Nomination can be done in the case of a Bonds Ledger Account. The primary account holder can nominate more than one person for the account. In the case of death of the primary account holder, the amount payable will go to the nominees or the heir.

Success Of Amended PMGKY

The concept of organising workshops and raising money for funding the impoverished was not very successful. But with the new angle of raising money via the unaccounted wealth post demonetisation is by far a successful idea. A lot of lawful cash will be generated to benefit the poor and the black money holders will get a window to rectify themselves.


Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima is an Insurance Scheme introduced by Narendra Modi to increase the number of citizens insured in India. From a survey, it was deduced that only 20% of the demography is insured with a Life Insurance policy. With a country that has a huge population, 80% individuals being uninsured is a big lag in development.

What are the particulars Pradhan Mantri Jeevan Jyoti Bima Yojana?

Under PMJJBY, it is stated that the Indian citizens between the age 18-50 years must pay a premium of INR 330 per year which will be auto debited from the bank account of the beneficiary. This premium will be mature to an amount of INR 2,00,000 and will be paid to the heir or nominee in case of the death of the account holder. Thus PMJJY aims at every citizen having a life insurance. The scheme will be provided by all Life Insurance companies. PMJJBY can be availed by all saving account holders. Thus it will be mandatory for all earning citizens to open a bank account.

What is the eligibility criterion for PMJJBY?

  • An Indian citizen who is a savings bank account holder. (Age bracket: 18-50 years).
  • Must submit a written consent to the government that a premium of INR 330 will be auto debited from their account annually.

How To Apply For PMJJBY: Filling Online Application

The following are the steps to apply for PMJJBY:

  • Open the internet banking account of the bank you hold a savings account.
  • Go to the “Social Security Schemes” section. This section is available under account details.
  • Click on “Apply” and select scheme as “Pradhan Mantri Jeevan Jyoti Bima Yojana”.
  • Enter your account number and CIF number.
  • This application form is also available offline. Collect it from your bank or download it. Then you can fill the form online and submit with an authorized signature.

How is the premium divided?

The INR 330 premium auto debited monthly is divided as follows:

  • INR 289 is the annual amount for crediting the insurance.
  • INR 11 is payable to the bank by all account holders as Administrative Reimbursement.
  • INR 30 is the amount payable to various government and private corporate sectors for incurring the payments that enable the provision of these services.

What is the termination scheme for PMJJBY?

The termination policy is as follows:

  • The account will be terminated in the case of closure of the savings bank account of the beneficiary for reasons like bankruptcy or being unable to pay the premium due to insufficient balance remaining.
  • When the citizen reaches 55 years of age, the account is automatically terminated.( Note: Enrolment can’t be done in PMJJBY after 50 years of age).
  • In case the government comes to find out that an individual has multiple insurance schemes in the same account or under separate accounts, the PMJJBY for that individual will be terminated.

Aam Aadmi Bima Yojana (AABY) – Benefits and How to apply

Aam Aadmi Bima Yojana was launched on Gandhi Jayanti, 2007 by P.Chidambaram who was the Finance Minister back then. This was Social Security providing welfare scheme that targeted at benefiting the households of the lower sections of the society. The scheme covered the primary member of the family or the head of the family. The age of the family member should be between 15 years to 59 years, to be eligible for this scheme.

Who Is Administering The AABY Scheme?

The central head for the administration of the AABY Scheme is appointed by the Central Government. Thus according to feasibility, the administering body is either the Central Government, State Government or a local NGO who has taken up the charge for the welfare of any particular rural location.

What is Aam Aadmi Bima Yojana Premium Fund?

When individuals register for AABY, an account will be started under their name. For all the citizens who have applied for this scheme, a funding account will be set up. This account is known as the “Aam Aadmi Bima Yojana Premium Fund”. The account of every beneficiary will be credited with a premium of INR 200 annually. The payment of this amount will be incurred by the Central Government and the State Government equally.

What is the insurance coverage under AABY?

If an individual is registered for AABY Premium Fund account, the government will provide the insurance coverage as follows:

  • On death of the insured individual: INR 30,000
  • On untimely death due to an accident or complete disability: INR 75,000
  • On partial disability due to an accident: INR 37,500

What is the eligibility criteria for AABY?

The eligibility for Aam Aadmi Bima Yojana is as follows:

  • The individual applying for AABY should be a member of a household below the poverty line or marginal with the poverty line as identified by the government.
  • The individual must be from a family where no other member has an existing AABY account under their name. This scheme stands only for one earning member of the family or the head of the family.
  • The individual must be in the age bracket of 15-59 years.

How to apply for AABY?

The application form for AABY is available both online and offline. Thus interested citizens must apply for it by filling in the required information. This application form has to be submitted to the respective banks and municipality with supporting documents for further processing.

What the documents required to apply for this scheme?

Application for this scheme would mean submitted proof of age to the government. Thus the following documents:

  • Ration Card (Proof of Below The Poverty Line)
  • Aadhaar Card (account linked to Aadhar)
  • Voter Card (Proof for 18 years of age and above)
  • Birth Certificate (Age proof)

What are the other benefits of AABY?

Under the AABY Scheme, an additional benefit has been provided by the government to all premium fund account holders. This benefit states that an educational scholarship can be opted for by children of the individual registered for AABY. The scholarship is available for a maximum of 2 children who are studying in grades between 9 to 12. As scholarship, an amount of INR 300 is given to them on a quarterly basis.