The Second Brics Health Ministers’ meet began in New Delhi Today

The second BRICS Health Ministers’ Meet began in New Delhi today. The first day’s programme started with the inaugural address by Shri P. K. Pradhan, Secretary, Department of Health & Family Welfare, Government of India where Health Secretaries and Senior Advisors of BRICS countries participated.  In his inaugural address, Shri Pradhan said BRICS Health Ministers’ Meeting was held at Beijing on 11th July 2011 following the decision taken by Heads of BRICS countries in the Sanya Declaration of 14th April 2011. The Beijing Declaration of the first BRICS Health Ministers’ Meeting emphasized the importance and the need of technology transfer as a means to empower developing countries; the importance of generic medicines in the realization of the right to health; and to establish priorities in research and development as well as cooperation among BRICS countries including support to transfer of technologies and innovation in a sustainable way to foster cooperation among BRICS countries to make available and improve technology. In the Delhi Declaration issued during the 4th BRICS Heads of States Meeting, consisting of Brazil, Russia, India, China and South Africa, held at New Delhi on 29th March, 2012, it was urged that meetings of BRICS Health Ministers be held in an institutionalized manner so that the countries of BRICS could jointly address common goals such as promoting innovation and universal access to health technologies including medicines, especially in the context of increasing costs and the growing burden of both communicable diseases and non-communicable diseases (NCDs) and to encourage flow of knowledge amongst research institutions through joint projects, workshops and exchange of visits, particularly by young scientists in areas relating to pharmaceuticals and health. Thereafter, during the sidelines of World Health Assembly held at Geneva, Health Ministers of BRICS countries met on 22.5.2012 and decided that some thematic areas of work under BRICS Health Platform be identified for each country to be carried forward by the Technical Group. Accordingly, as per agreed plan of action, each country had to identify a nodal officer for each area of work, to work with the lead officer of the country piloting the particular area of work and to come out with a programme of work to advance the health related cooperation among BRICS countries, in particular the establishment of the network of technological cooperation. It was also decided in Geneva that India would host the next BRICS Health Ministers Meeting.  Shri Pradhan said BRICS countries represent 43% of the world’s population. This is both a strength and challenge for us. If we stand united, we can achieve a lot of positive development not only within our own countries but also on various international platforms. Considering this, we have included the topics such as CEWG Recommendations and WHO Reforms in the agenda since they are quite relevant today, to a collaborative health R&D as well as to resource allocation and priority setting, budgeting and financing etc. India supports open-source drug development for encouraging the global health agenda for universal access to affordable medicines and health commodities of assured quality. We also support the view that involvement and priority setting for this purpose should be driven by public health needs of the developing countries. Although we have been able to make significant progress in providing better health facilities to our peoples, we must recognize that much more still needs to be done. We are aware that the BRICS countries have several unique strengths such as the capacity for manufacturing affordable health products and research in some cutting edge areas. At the same time, we know that a large number of health challenges of the BRICS countries are common. As such, we must together rise to the occasion with specific and agreed plans of collaboration to harness our strengths and overcome our weaknesses. BRICS gives us a very important platform to be able to do that in an environment of trust and co-operation. I am sure that this can be achieved if we agree to discuss issues on a positive note, in a constructive manner, and in the utmost spirit of trust and co-operation.  The first day’s programme included presentation of thematic areas by each BRICS country followed by discussion and finalization of action plan.

Enactment of a Central Legislation to declare Lakhipur-Bhanga stretch of Barak River as a National Waterway

The Union Cabinet today approved the introduction of a Bill in the Parliament for declaring Lakhipur-Bhanga stretch (121 kms.) of the Barak River as a National Waterway.  It also gave its approval for preparation of projects/schemes for development of infrastructure facilities on this stretch of the river at an estimated cost of Rs.123 crore with implementation in two phases. Inland Waterways Authority of India (IWAI) set up under IWAI Act, 1985 will be the implementing agency for this project. The first phase of the project would be completed by 2016-17 followed by the second phase which is likely to be completed by 2018-19.  The enactment to declare Lakhipur-Bhanga stretch of the Barak River as National Waterway will result in unified development of the waterways for shipping and navigation and transportation of cargo to the North Eastern Region particularly in the states of Assam, Nagaland, Mizoram, Manipur, Tripura and Arunachal Pradesh.  The Government of India has so far declared five waterways as National Waterways. These are:- (i) Allahabad-Haldia stretch of the Ganga-Bhagirathi-Hooghly river system (1620 km); (ii) Dhubri-Sadiya stretch of Brahmaputra River (891 km); (iii) Kottapuram-Kollam stretch of West Coast Canal along with Udyogmandal and Champakara Canals (205 km); (iv) Kakinada-Puducherry stretch of the canal along with designated stretches of Godavari and Krishna Rivers (1078 km); and (v) designated stretches of East Coast Canal, Brahmani River and Mahanadi Delta (588 km). The Lakhipur-Bhanga stretch of the Barak River would be the sixth National Waterway.

Recapitalization of Public Sector Banks

 

The Union Cabinet today approved the following: 

(i) To provide capital funds to Public Sector Banks (PSBs) during the year 2012-13 to the tune of Rs.12,517 crore to maintain their Tier-l CRAR at comfortable level, so that they remain compliant with the stricter capital adequacy norms under BASEL-III as well as to support internationally active PSBs for their national and international banking operations undertaken through their subsidiaries and associates. 

(ii) `In principle` approval of the Cabinet is accorded for need based additional capital infusion in PSBs from the year 2013-14 to 2018-19 for ensuring compliance to Capital Adequacy norms under Basel- III. 

This will ensure compliance to the regulatory norms on capital adequacy and will cater to the credit needs of productive sectors of the economy as well as to withstand the impact of stress in the economy. This will also support national and international banking operations of PSBs and will boost the confidence of investors and market sentiments. 

The infusion of Rs. 12,517 crore in the equity capital of PSBs would enable them to expand their credit growth. This additional availability of credit will cater to the credit needs of our economy and will also benefit employment oriented sectors, especially agriculture, micro & small enterprises, export, entrepreneurs etc. in promotion of their economic activities which would, in turn, contribute substantially to the growth of the economy. 

The exact amount, mode of recapitalization and other terms and conditions in each PSB would be decided in consultation with them at the time of infusion. 

Background 

The Government is committed to keep all the PSBs financially sound and healthy so as to ensure that the growing credit needs of our economy are adequately met. To meet the credit requirement of the economy, banks would require capital funds commensurate to the increase in their Risk Weighted Assets (RWAs). 

Implementation of Basel III Capital Regulations enhances requirement of core equity capital by banks due to higher capital ratios. The Basel III capital ratios will be fully phased in as on March 31 2018. The requirement of core equity will also increase due to increase in RWAs of banks under Basel III, as risk weights in the areas of credit risk including counterparty credit risk, external credit assessments and market risk are higher than those in present regime of Basel II. 

In view of this, the Government has decided to infuse capital in PSBs during the year 2012-13.

Enhancement of unit assistance under the Indira Awaas Yojana

The Union Cabinet has approved the proposal of the Ministry of Rural Development to provide a quality and affordable house and also taking into account numerous requests from the stakeholders for increasing the unit cost, keeping in view the steep increase in cost of materials. The approval is as follows: 

(i) Enhancement of unit assistance under the Indira Awaas Yojana (IAY) from Rs. 45,000/- to Rs. 70,000/- in plain areas and from Rs. 48,500/- to Rs. 75,000/- in hilly/difficult/LAP district; 

(ii) Enhancement of unit assistance provided for homestead site to rural Below Poverty Line (BPL) households who have neither agricultural land nor a house site for purchase/acquisition of a homestead site from Rs.10,000/- to Rs.20,000/-. This was a major point in the Agreement between Govt. of India and Jan Satyagraha on 11th October 2012 at Agra. 

The IAY is a flagship scheme of the Ministry of Rural Development and aims at addressing rural housing issues by providing grant for construction / upgradation of dwelling units of BPL families especially giving priority to Scheduled Castes/Scheduled Tribes, freed bonded labourers and physically challenged persons with financial assistance of Rs. 45,000/- in plain areas and Rs. 48,500/- in hilly /difficult areas.