India Current Affairs [Gov. & Politics]

Latest India Current Affairs and Current Affairs related to Government policy, polity and administration in India. India’s National Current Affairs updates for 2019.

Union Cabinet approves change of definition of MSMEs

On June 1, 2020, the Union Cabinet approved the changes made to the definition of MSMEs. The Finance Minister Nirmala Sitaraman had announced about the changes being made to MSMEs while she announced the economic package allocated to Atma Nirbhar Bharat Abhiyan.

Definition

According to the new definition, MSMEs with investment of Rs 1 crore and Rs 5 crores have been classified as Micro units. The MSMEs with annual turn over between Rs 10 crore and Rs 50 crores are classified as small units. The MSMEs with annual turn over of Rs 50 crore and above are classified as medium units.

Significance

The change in definition will help attract investment, improve ease of doing business, create jobs. There are more than 60 million MSMEs in the country. They contribute to 29% of India’s GDP and are offering 110 million jobs. The MSMEs also contribute 48% of total exports of India. Therefore, it is highly important to keep the MSME sector alive. The COVID-19 and the lock down imposed have affected the MSME badly. Thus, the change in definition will help boost the MSME sector in a big way.

Other Measures

The Cabinet has also approved provision of loans up to Rs 10,000 to the street vendors. Also, cabinet approved the decision of increasing MSPs of 14 Kharif crops.

The GoI is to infuse Rs 50,000 crores into the MSMEs that are involved in exports. The GoI also allocated Rs 4,000 crores towards distressed asset funds. These funds are to be used to provide loans up to Rs 75 lakhs to the MSMEs.

Real Time Electricity Market launched by Indian Energy Exchange

On June 1, 2020, Indian Energy Exchange launched Real Time Electricity Market (RTM). The main aim of the launch is to help discoms plan their power requirements.

Working of the market

The market will conduct 48 auction sessions during the day and the power will be delivered within one hour of closure of the bid session. The market, thus, will help distribution companies manage their power demand-supply variation. It will also help meet power supply needs in a better way.

About Real Time Electricity Market

The market aims to allow power utilities manage their demand dynamically. It will help to save huge deviation-related penalties. Also, it integrates renewables in an effective way. The market will facilitate utilities reduce their dependency on deviation framework. This will help save huge penalties.

Green Energy

The RTM will also help grid operators enhance renewables by facilitating the discoms manage their challenges of intermittency that are associated with renewables. The RTM will help the discoms forecast and schedule green energy. This will help India achieve its target of 175 GW of renewable energy by 2022.

India Energy Exchange

India Energy Exchange is an electronic system that is regulated by the Central Electricity Regulatory Commission (CERC). It was started in 2008. The exchange has participants from various platforms that includes power producers, State Electricity Boards, power traders and open access consumers.

Central Electricity Regulatory Commission

It is a statutory body that was set up under the Electricity Act 2003. It is Quasi-Judicial Body. Quasi-Judicial body is a non-judicial body that can interpret law.

The Commission was constituted mainly to regulate the tariff on power generating companies that are controlled or owned by GoI.