1.

PPP: An economic theory that estimates the amount of adjustment needed on the
exchange rate between countries in order for the exchange to be equivalent to each
currency's purchasing power.

2. Red Tape: Red tape" is a term for excessive regulation or rigid conformity to
formal rules that is considered redundant or bureaucratic and hinders or prevents
action or decision-making. It is usually applied to governments, corporations and
other large organizations.
3. Capital account convertibility boost: Capital Account convertibility in its entirety
would mean that any individual, be it Indian or Foreigner will be allowed to bring in
any amount of foreign currency into the country. Full convertibility also known
as Floating rupee means the removal of all controls on the cross-border movement
of capital, out of India to anywhere else or vice versa.
Capital account convertibility or CAC refers to the freedom to convert local financial
assets into foreign financial assets or vice versa at market-determined rates of
interest . If CAC is introduced along with current account convertibility it would mean
full convertibility.
Objectives of Full Capital Account Convertibility: Economic
Improvement in Financial Sector/ Diversification of Investment

Growth/

4. Cost Disability factor : CDF captures the differences in the cost of local service
delivery across districts relative to the average of all districts. Not to be confused with
economies of scale.

5. Zero taxation FDI channel : The inordinately high investment from Mauritius is
due to routing of international funds through the country given significant capital
gains tax advantages; double taxation is avoided due to a tax treaty between India
and Mauritius, and Mauriitus is a capital gains tax haven, effectively creating a zerotaxation FDI channel.

6. Labour force participation rate: The labor force participation rate is the
percentage of working-age persons in an economy who:
Are employed/Are unemployed but looking for a job
Typically "working-age persons" is defined as people between the ages of 16-64.
People in those age groups who are not counted as participating in the labor force

are typically students, homemakers, and persons under the age of 64 who are
retired
7. Work force participation rate: The workforce participation rate, which is used to
calculate the unemployment rate, includes those who are employed and anyone who
is looking for work.

8.National Vocational Qualification Framework:

National Vocational
Qualification Framework to provide a common reference framework for linking
various vocational qualifications and setting common principles and guidelines for a
nationally
recognized
qualification
system
and
standards

9. Model Concession Agreement: The highways sector in India is witnessing a

significant interest from both domestic as well as foreign investors following the
policy initiatives taken by the Government of India to promote Public Private
Partnership (PPP) on Build, Operate and Transfer (BOT) basis.
For sustaining private investment in up gradation and maintenance of the highways
on BOT basis, a precise policy and regulatory framework is being spelt out in a
Model Concession Agreement (MCA). This framework addresses the issues which
are typically important for limited recourse financing of infrastructure projects, such
as mitigation and unbundling of risks; allocation of risks and rewards; symmetry of
obligations between the principal parties; precision and predictability of costs and
obligations; reduction of transaction costs; force majeure; and termination.

10. Viability Gap funding: The Viability Gap Funding Scheme provides financial
support in the form of grants, one time or deferred, to infrastructure projects
undertaken through public private partnerships with a view to make them
commercially viable. GoI has established a Viability Gap Fund to aid the PPP
infrastructure projects which face the viability gap due to inherent nature of the
project. The Scheme is administered by the Ministry of Finance.
11. Special Purpose Vehicle:
Also referred to as a "bankruptcy-remote entity" whose operations are limited to the
acquisition and financing of specific assets. The SPV is usually a subsidiary
company with an asset/liability structure and legal status that makes its obligations
secure
even
if
the
parent
company
goes
bankrupt.
A subsidiary corporation designed to serve as a counterparty for swaps and other
credit sensitive derivative instruments. Also called a "derivatives product company