January 28, 2020

4 new companies included in CPSE ETF (new companies included in CPSE ETF)

Why in the discussion?

Recently, the Ministry of Finance has reconstituted the CPSE Exchange Traded Fund (ETF) and it has included shares of public sector companies – NTPC, SJVN, NLC and NBCC.

key points

  • The Ministry has removed GAIL, Engineers India Limited (EIL) and Container Corporation from the ETF basket and has replaced four new companies in their place.
  • According to official sources, CPSE ETF now has 11 companies in place of state-owned 10 companies.
  • By the end of this month, the Ministry is planning to launch a follow-on public offering by the CPSE Exchange Traded Fund (ETF) and the Ministry is expected to get around 8,000 crore rupees from this.
  • The other seven government companies involved in the CPSE ETF are ONGC, Coal India, Indian Oil Corporation, Oil India, PFC, REC and India Electronics.
  • The Ministry has already raised Rs 11,500 crore from three consignments of CPSE and by the end of this month, the fourth installment scheme is being planned.

What is ETF?

  • Exchange Traded Funds (ETFs), in contrast to regular mutual funds, do ordinary commodities like stocks in the stock exchange.
  • The purchase and sale of ETF is done through the registered broker of the recognized stock exchange.
  • The ETF units are listed on the Stock Exchange due to the speed and trend of the markets, changes in their gross asset value (NAV) are reflected.

Indian economy

Six private airports through public-private partnership (PPP) 

Recently under the chairmanship of Prime Minister Narendra Modi, the Union Cabinet has given its approval for the following  :
  1. Public Private Partnership Appraisal Committee ( Public Private Partnership Appraisal Committee-PPPAC of public-private partnerships through) ( Public Private Partnership-PPP ) under the operational, management and AAI for development (AAI) six airports – Ahmedabad ,  Jaipur ,  Theoretically approved for leasing Lucknow ,  Guwahati ,  Thiruvananthapuram and Mangaluru.

  3. Under the leadership of the Chief Executive Officer (CEO) of the Commission, the Secretary of the Ministry of Civil Aviation, Secretary of the Department of Economic Affairs, and the Secretary of Expenditure Department, to take a decision on any issue outside the scope of PPPAC, the right-wing group of secretaries Formation

Benefits    :

  1. Apart from raising the necessary investment in public sector, PPP in infrastructure projects has expertise in service supply, expertise, entrepreneurship and business skills.

  3. To develop greenfield airports in Hyderabad and Bangalore, infrastructure development from the PPP model to provide world-class infrastructure at the airports, supplying efficient and timely services to the passengers coming to the airport and Indian Airlines without any investment The authorization has helped increase the revenue receipt. Currently the airports being operated under PPP model include Delhi, Mumbai, Bengaluru, Hyderabad and Kochi.

  5. In India, PPP airports have ranked as the Airport Services Quality (ASQ) in the top five airports in the respective categories by the Airports International Council (ACI).

  7. These PPP experiences have helped create world-class airports. It has also helped the Airports Authority of India to increase revenue by focusing on air development and air navigation infrastructure in other parts of the country. 

Background   : 

  • Along with the increase in domestic and international air travel, a huge crowd on most airports and strong traffic growth over five decades ago privatized has attracted the attention of many international operators and investors. As the international interest, the airport area is one of the top competitive areas in infrastructure sectors. International Council and Investors are deeply interested in expanding Brown Field airports with capacity exceeding three-four million passengers. The airport area can provide an opportunity to attract foreign direct investment (FDI) by adopting PPP model.
  • Therefore it has been decided to lease six airports of the Airports Authority of India –  Ahmedabad ,  Jaipur ,  Lucknow ,  Guwahati ,  Thiruvananthapuram and Mangaluru to the lease in the first phase. This will increase the revenue of the Airports Authority of India and increase the economic development of these areas in the form of employment generation and related infrastructure.

preliminary examination

Prelims Facts: November 12, 2018

Ganga Village

Ganga Gram is an idea, which is related to transforming a village on the Gangetic river into an ideal village.
  • Under this, freedom from defecation, solid and liquid waste management, water conservation, improving ground water level, modern cremation ground, plantation, biological and medicinal plantation etc. have been included in the open.
  • After declaring 4465 villages settled on the Ganges coast open from open defecation, the Ministry of Drinking Water and Sanitation is working towards maintaining the Odf position of this region.
  • The Ministry of Drinking Water and Sanitation is organizing a series of Ganga Village Sanitation Conference this month.

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