ECONOMY AND POLICY AND OTHER GA BRIEFLY
Economy & Policy
AP
Shah Committee to look into ONGC, RIL dispute on KG gas fields:
The
Union Ministry of Petroleum and Natural
Gas on 15 December 2015 appointed a single member committee to look into the
dispute between Oil and Natural Gas
Corporation Limited (ONGC) and Reliance Industries Limited (RIL) on Krishna
Godavari (KG) gas fields. The committee
will be headed by the Chairman of the 20th Law Commission of India
justice (retd) AjitPrakash Shah. The
committee will look into acts of omission and commission and recommend
compensation to ONGC from the RIL on account of undue advantage the latter has
received due to enrichment of its gas fields from the adjacent blocks belonging
to ONGC.
· In
the Krishna-Godavari Basin, ONGC owns Krishna Godavari basin KG-DWN-98/2
(KG-D5) and the Godavari-PML gas fields.
These two fields are connected with Dhirubhai-1 and 3 (D1 & D3)
fields located in the KG-DWN-98/3 (KG-D6) Block of RIL.
· In
2014, the ONGC contended that RIL’s fields were being enriched due to migration
of gas from its idle fields. Against
this backdrop, the Union Government appointed the US-based consultant DeGolyer
and MacNaughton (D & M) to look into the matter.
· D
& M which submitted its report on 30 November 2015, concluded that out of
the 58.68 billion cubic meters (bcm) of gas produced from KG-D6 block between 1
April 2009 and 31 March 2015, 49.69 bcm belongs to RIL and the rest 8.981 bcm
could have come from ONGC’s fields.
Quick Estimates of IIP and Use-Based Index for
October 2015 released:
The
Central Statistics and Programme Implementation, on11 December 2015, released
the Quick Estimates of Index of Industrial Production (IIP) and Use Based Index
with the base year 2004-05 for the month of October 2015.
Main highlights of Index of Industrial Production (IIP)
· IIP
for October 2015 stood at 181.3, which is 9.8% higher as compared to the level
in October 2014 , in September 2015 (month-on-month), IIP growth rate stood at
3.6 percent.
· The
cumulative growth for the period April-October 2015-16 over the corresponding
period of the 2014-15 stood at 4.8%.
· The
IIP for the Mining, Manufacturing and Electricity sectors for October 2015
stood at 130.0, 188.1 and 201.6 respectively, with the corresponding growth
rates of 4.7%, 10.6% and 9.0% as compared to October 2014.
· The
cumulative growth in the three sectors during April-October 2015-16 over the
corresponding period of 2014-15 was 2.0%, 5.1% and 5.2% respectively.
· In
terms of industries, seventeen (17) out of the twenty two (22) industry groups
(as per 2-digit NIC-2004) in the manufacturing sector have shown positive
growth during the month of October 2015 as compared to the October 2014.
· The
industry group Furniture; manufacturing, recorded the highest positive growth
of 138.9%, followed by 48.4% in office, accounting & computing machinery
and 47.5% in Radio, TV and communication equipment & apparatus.
· The
industry group Publishing printing & reproduction of recorded media
recorded the highest negative growth of (-) 10.2% followed by (-) 6.8% in
`Medical, precision & optical instruments, watches and clocks’ and (-) 2.9%
in `Coke, refined petroleum products & nuclear fuel.
ONGC joins World Bank’s Zero Routine Flaring by 2030
Initiative:
The
Oil and Natural Gas Corporation Limited on 7 December 2015 joined Zero Routine
Flaring by 2030 Initiative of the World Bank on the sidelines of Conference of
Parties-21 (COP-21) of UNFCCC in Paris.
With this joining, ONGC has become the first oil company from India to
join the global initiative that is aimed at curbing routine gas flaring at oil
production sites around the world by 2030.
Along with ONGC, 19 other entities endorsed the initiative taking the
number of total countries or companies or development institutions to 45 since
its inception in April 2015.
Features of Zero Routine Flaring by 2030
· It
encourages oil companies to seek economically viable solutions to eliminate
ongoing “legacy” flaring as soon as possible and no later than 2030.
· It
will ensure that when oil fields are developed, plans include gas utilization
soulutions that do not involve gas flaring or venting.
· It
will end routine gas flaring that stops millions of tons of CO2 going into the
atmosphere every year.
· The
institute, once successful, will
contribute to improving the life of the people who live around gas flare sites.
Singapore replaces Mauritius as top source of FDI
into India:
Singapore
replaced Mauritius as top source of Foreign Direct Investment (FDI) into India
during April-September of 2015-16 financial years. An announcement in this regard was made by
the Department of Industrial Policy and Promotion of Ministry of Commerce and
industry in December 2015. As per the
data, between 15 April and 15 September 2015.
· India
received 430% crore rupees as FDI from
Singapore. In the same period FDI
from Mauritius was 23490 crore rupees.
In the same period, While Netherlands was at number three with 7017
crore rupees of investment, the USA stood at the stood fourth with 5435 crore
rupees.
· However
in terms of cumulative inflows between April 2000 and September 2015 Mauritius
still leads the investment list. While
Mauritius contributed to 34 percent of total FDI investments, it was only 15
percent in the same period.
NTC signs Integrity Pact with Transparency
International India: National Textile Corporation
(NTC) Limited, on 3 December 2015, signed a MoU with Transparency International
India (TII) for adopting Integrity Pact (IP) With this, NTC became the 51st
Public Sector Undertaking (PSU) and 49th Central PSU to sign a MoU
with TII.
· What is Integrity Pact?
Integrity Pact is a tool which ensures
that all activities and transactions between a Company or Government Department
and their Suppliers are handled in a fair, transparent and corruption-free
manner.
· It
also prohibits any kind of bribing, favour or any other unethical practice,
which is closely monitored by honorary Independent External Monitors
(IEMs). The IEMs.
AnantGeete flags off 3 Cities Fame India Eco Drive
in New Delhi: Union Cabinet Minister of Heavy
Industries and Public Enterprises AnantGeete, on 26 November 2015, flagged off
the 3-Cities Fame India Eco Drive from Red Fort, New Delhi.
GAIL launches Bhuvan-GAIL Portal for satellite
monitoring of Pipelines: GAIL (India) Limited,
in November 2015, launched an innovative surveillance geo-portal called Bhuvan-GAIL portal for monitoring the
pipeline Right of Use (RoU) through space technology. The portal was launched in collaboration with
National Remote Sensing Centre (NRSC) a unit of Indian Space Research
Organization (ISRO).
· Gail
has over 13000 km of Pipeline network wherein monthly monitoring of pipeline
ROU was carried out through Helicopter surveys.
But, with the use of space technology, GAIL will start live satellite
monitoring of the pipeline RoU by January 2016.
· The
company is also looking for alternative methods like advance Unmanned Ariel
Vehicle (UAV) which can also be integrated with this system.
Turkmenistan starts work on gas pipeline to
Afghanistan, Pakistan and India (TAPI) gas pipeline: Vice President
Hamid Ansari, Pakistan Prime Minister Nawaz Sharif and Afghanistan, on 13
December 2015, broke the ground for the ambitious USD 7.6 billion TAPI pipeline project which will provide
energy-hungry India gas to run its power plants. Ansari flew to the ancient city of Mary, 311
km from the capital Ashgabat, which was part of the old Silk Route, to attend
the ground-breaking ceremony of the 1800-kilometre-long TAPI gas pipeline in
the presence of Afghan President Ashraf Ghani and Turkmenistan President
GurbangulyBerdimuhamedow.
Tapi Gas Pipeline
· The
TAPI pipeline will have a capacity to carry 90 million standard cubic metres a
day (mmscmd) gas for a 30-year period. India and Pakistan would get 38 mmscmd
each, while the remaining 14 mmscmd will be supplied to Afghanistan.
· Besides
the gas pipeline, the four countries will be connected by fibre optic
cable. A power transmission line will
also connect Turkmenistan, Afghanistan and Pakistan.
· India’s
state gas utility GAIL has signed a Gas Sales and Purchase Agreement (GSPA)
with Turkmengaz for import of 38 mmscmd of natural gas for 30 years. However, with Afghanistan agreeing to take
approx 1.5-4 mmscmd against the original agreed volume of 14 mmscmd, the Indian
volumes may increase to 43-44.25 mmscmd.
Union Cabinet approves revised Model Text for Indian
Bilateral Investment Treaty:
The
Union Cabinet, presided by the Prime Minister NarendraModi, on 16 December 2015
gave its approval for the revised Model Text for he Indian Bilateral Investment
Treaty (BIT). The revised Indin model
text for BIT will replace the existing Indian Model BIT. It will be used for re-negotiation of
existing BITs and negotiation of future BITs and investment chapters in
Comprehensive Economic Co-operation Agreements (CECAs)/ Comprehensive Economic
Partnership Agreements (CEPAs)/ Free Trade Agreements (FTAs).
Rupee skids to 2 year low of #67.10:
The
rupee breached the 67mark to close at a new two-year low on 14 December 2015 on
expectation that the US Fed will up its policy rate for the first time in
nearly a decade.
Industrial output climbs to 5-year high:
As
per data released by the Ministry of Statistics and Programme Implementation in
Decem 2015, with 17 of the 22 industry groups in the manufacturing sector
showing a positive growth, the industrial output in October 2015 recorded a
five-year high of 9.8 er cent year-on-year.
India rejects `artificial deadlines’ for WTO deal:
India,
on 11 December 2015, said it will neither agree to `artificial deadlines’ to
conclude the World Trade Organization’s (WTO) Doha Round negotiations aimed at
liberalizing global trade, nor concur with rich nations’ attempts to expand the
ambit of the talks by introducing ”new” issued without completely fulfilling
the Round’s `development’ dimension. The
Doha Round talks had begun in 2001 and has since missed several deadlines for
concluding it, due to persisting differences between the developed and
developing world on a host of issues related to trade liberalization and
granting market opening commitments.
· Some
of the issues include the reduction of `huge and trade distorting’ agribusiness
subsides in developed countries, an effective Special Safeguard Mechanism (a
trade remedy allowing developing countries to temporarily hike duties on farm
products to counter sudden import surges and price falls, thereby protecting
the interests of poor farmers), and a permanent solution to the issue of public
food stockholding in developing countries for the purpose of food security.
· The
`new issues pertain to labour
practices, environmental standards, global value chains and promotion of supply
chains, e-commerce, competition and clean and green energy, transparency in
government procurement as well as on state-owned enterprises and designated
monopolies.
Facebook says Free Basics initiative
`non-discriminatory’:
A
day after telecom regulator sought views on differential pricing for data
services with an emphasis on ensuring non-discrimination, transparency,
affordable Interest access. Facebook, on
11 December 2015, said that its “Free Basic’ initiative, originally known as
Internet.Org, is “non-discriminatory”.
Indirect tax collections grow 34% in April-November:
Reflecting
improvement in industrial activity, indirect tax collection jumped 34.3 per
cent to Rs.4,38,291 the Finance Ministry in December 2015, the government had
collected Rs.3,26,273 crore from indirect taxes during April-November period of
last fiscal. So far, the collection is
67.8 per cent of budget estimated (BE) for 2015-16.
Solar capacity crosses 5,000 MW:
According
to a report by according to Bridge to India’s solar consulting firm in December
2015, India’s total installed capacity of solar power has crossed the 5 GW
mark. The total commissioned utility
solar capacity in the country stands at about 4.7 GW, while rooftop capacity is
525 MW. During last fiscal, a total
capacity of 1,112 MW of grid connected solar power projects and 44.5 MW of
rooftop projects were installed. For the
current fiscal, 827 MW of solar capacity has been added so far. As per the report.
· Rajasthan, Gujarat and
MP have historically been the front runners in
solar power capacity addition, but the four southern India states are expected
to dominate the marked over next two years.
· As
of today, the country has a solar project pipeline of 15.7 GW.
· The
fiscal year 2016-2017 will be Indian solar market’s transition year, annual
capacity addition could top 6 GW with India becoming one of the leading solar
nations globally.
Government completes 26 per cent of National
Highways target:
According
to a statement by the Roads Ministry on 2 December 2015, the government has
completed only 26 per cent of the National Highways construction target, with
four moths left in this financial year.
It targeted to complete 10,950 km of National Highways during 2015-16.
Government’s call intercept system to be ready by
end of fiscal year:
Telecome
Minister Ravi Shankar Prasad, in December 2015, said in a written reply to
LokSabha that the Government’s electronic intelligence monitoring system the
Central Monitoring System (CMS), will become operational by March 2016. The Cabinet Committee on Security has also
approved the CMS project with government funding of Rs.400 crore.
GE, Alstom bag Rs.40,000crore order:
GE
Global Sourcing India Pvt.Ltd. and Alstom Manufacturing India Ltd., recently
got contracts worth Rs.40,000 crore for two locomotive projects in Bihar, the
largest foreign investment in the railways sector and the biggest Make-in-India
initiative so far.
India needs to grow at 8% for creating more jobs:
Sinha:
Minister
of State for Finance, JayantSinha, on 28 November 2015, said that India needs
to grow at 8 per cent for decades so as to create the required amount of
employment for the country’s working-age population. The Minister also outlined six
‘game-changers’ that were already in place.
Six Game Changers
· The
first, an initiative Mr Sinha called revolutionary, was putting in place
universal social security through the JAM trinity (Jan Dhan Yojana, Aadhaar and
Mobile).
· The
second was the various schemes and initiatives such as the Krishi Sinchayee
Yojana and providing agri-credit and crop insurance, the government has
undertaken for the upliftment of farmers.
· The
third was in its endeavour to create employment through its Skill India
mission. He also said that the
government would soon be launching a major initiative around start-ups, a
Startups Yojana of sorts.
· The
fourth game changer is that Public investment is pouring into transportation,
including railways during this government’s term.
· The
Indradhanush revamp plan, the fifth game changer, is doing more for banks than
anything since nationalization.
· Finally,
the government has to do with overhauling the fiscal architecture of the
country. The involves empowering the
States in terms of the devolution of taxes.
The government has taken the devolution share from 32 per cent to 42 per
cent a change of 10 per cent.
Transport of coal by inland waterways can save
Rs.10,000 crore:
Union
Shipping Minister Nitin Gadkari, in November 2015, said that Inland waterways
can not only boost the movement of goods and passengers across the country but
will also help in saving about Rs.10,000 crore annually in transporting coal.
The waterways is a cheaper and environment friendly medium for transporting of goods,
he said.
One
HP moves 150 kg on road, 500 kg on rail and 105 tonne/km on water.
India among 4 nations to sign trade pact: Sri
Lanks, India, Malta and Mauritius, in November 2015, came together to establish
a Commonwealth Trade Finance Facility to boost trade and investment flows,
particularly for developing nations of the Commonwealth. The four countries inked the document,
Declaration of Intent, as anchor investors at the Commonwealth Summit in Malta.
Government slashes Minimum Export Price of onions: The Union
Government, on 10 December 2015, slashed the Minimum Export Price (MEP) of
onions to 400 US dollars per tonne from 700 dollars a tonne. MEP is the rate below which no traders are
allowed to export their goods. The rise
in MEP restricts exports and improves domestic supply.
Government launches portal for small traders
e-laka: Urban
Development Minister Venkaiah Naidu, on 23 November 2015, inaugurated e-lala,
an e-commerce portal of Confederation of All India Traders (CAIT) in New
Delhi. The e0lala initiative is aimed at
promoting the interests of 5.77 crore small businesses in the context of rapid
expansion of e-commerce in the country.
E-lala
· E-lala
will enable physical stores to have their own online stores enabling them to
retain their customer base besides additional source of growth in business.
· E-lala
a city and location based portal, seeks to promote business and
trader-to-customer transactions in a city.
· It
seeks to eliminate middlemen and resulting in reduced cost of goods and services.
· With
the emerging global threat from e-commerce to small traders e-lala initiative
will address the problem with proper outreach and marketing strategies.
· E-lala’s
distinctive features include a specially corner promoting unique products
associated with each city.
Operation Smile-II to start from 1st
January, 2016 throughout the country:
The
Government of India recently requested the States/ UTs to start “Operation
Smile II” from 1st January, 2016 to 31st January 2016 to
be rolled out throughout the country as a follow up of the earlier campaign to
rescue/ rehabilitate the missing children.
The States have so far reported that 9146 children under Operation
“Smile” and 19742 children under Operation Muskaan were rescued/ rehabilitated.
Activities under Operation Smile:
· During
this operation, all children residing in shelter homes, platforms, bus stands,
roads, religious places, etc., are to be screened by trained police personnel.
· Before
1st January, 2016, the Police Personnel from each state are to be
properly trained in methodology to extract information from such children
tactfully without their getting intimidated, as well as in various provisions
of Protection of Children from Sexual Offences (POCSO) Act, Juvenile Justice
(Care and Protection of Children) JJ Act, Protection of Child Right Act,
relevant sections of Cr.PC & IPC and Advisories issued by MHA etc.,
Gujarat Becomes 10th State to Join Ujwal
Discom Assurance Yojana:
Gujarat,
in December 2015, became the 10th State to Join the UDAY Scheme (Ujwal
Discom Assurance Yojana) Andhra Pradesh, Himachal Pradesh, Madhya Pradesh,
Uttarakhand, Chhattisgarh, Jammu & Kashmir, Jharkhand, Punjab and Rajasthan
have already joined UDAY Scheme.
Uday Scheme
· The
Scheme – UDAY (Ujwal Discom Assurance Yojana) has been launched to improve
financial and operational efficiencies of power distribution companies
(DISCOMs).
· It
envisages to reduce interest burden, cost of power and AT & C losses,
Consequently, DISCOM would become sustainable to supply adequate and reliable
power enabling 24 x 7 power supply.
· The
schedule provides that States would take over 75% debt of Discoms, as on 30th
September, 2015 in two years.
· UDAY
has inbuilt incentives encouraging State Governments to voluntarily restructure
their debts. These incentives include
taking over of DISCOM debt the States outside the fiscal deficit limits;
reduction in the cost of power through various measures such as coal linkage
rationalization, liberal coal swaps, coal price rationalization, correction in
coal grade slippage, allocation of coal linkages at notified prices; priority /
additional funding through schemes of MoP & MNRE; and reduction in interest
burden.
2016: UK-India year of Education Research and
Innovation” Launched:
India
and United Kingdom, on 9 December 2015, launched a joint initiative “2016:
UK-INDIA year of Education, Research and Innovation” in New Delhi. Under this scheme, areas of mutual interest
in research could be picked up out of the ten research priority areas under
IMPRINT (IMPacting Research Innovation and Technology).
· UKIERI-III
will provide a basic framework for the bilateral cooperation between India and
UK over the next 5 years. It will focus
on leadership and faculty development, integration of skills in the education
system, e-partnership & research incubation, and enhancing mobility.
Union Government approves setting up of 6 new IITs:
The
Union Cabinet, on 2 December 2015, approved setting up and operationlization of
six new Indian Institutes of Technology (IITs) in Andhra Pradesh, Chhattisgarh,
Goa Jammu, Kerala and Karnataka. The
cabinet also gave its approval for operationalization of these IITs initially
by forming of Socieities under the Socieites Registration Act, 1860 togive a legal
status to them till the amendment for their incorporation in The Institutes of Technology Act, 1961 is
enacted.
World Bank approval $1.5 billion loan to support
Clean India Campaign:
The
World Bank, on 15 December 2015, approved a 1.5 billion US dollar loan for the
ambitious Clean India Campaign (Swachh Bharat Mission). The loan was granted to support the
government in its efforts to ensure all citizens in rural areas have access to
improved sanitation end the practice of open defecation by 2019. The loan will be used for Swachh Bharat Mission
(SBM) Support Operation Project.
Government of India signs MoU to establish three
IIITs on PPP mode:
The
Union Government, on 12 December 2015, signed MoU and documentation for
establishing three Indian Institute of Information Technology (IIITs) at Ranchi,
Nagpur and Pune.
Union Cabinet approves Real Estate (Regulation and
Development) Bill, 2015:
The
Union Cabinet, on 9 December 2015, approved the Real Estate (Regulation and
Development) Bill, 2015. The bill is
based on the recommendations of the select committee of Rajya Sabha that had
examined the bill pending in the upper house of the parliament.
Salient Features of the Bill
· Applicable
both for commercial and residential real estate projects.
· Establishment
of `Real Estate Regulatory Authority’ in States / UTs to regulate real estate
transactions.
· Registration
of real estate projects and real estate agents with the Authority
· Mandatory
disclosure of all registered projects, including details of the promoter,
project, layout plan, land status, approvals, agreements along with details of
real estate agents, contractors, architect, structural engineer etc.,
· Deposit
of specified amount in a separate bank account to cover the construction cost
of the project for timely completion of the project.
· Establishment
of fast tract dispute resolution mechanisms for settlement of disputes through
adjudicating officers and Appellate Tribunal.
· Civil
courts jurisdiction prohibited from taking up matters defined in Bill, however,
consumer court allowed to hear real estate matters.
Union Government and NTC sign MoU for establishing a
Technology Centre at Kanpur:
The
Union Ministry of Textiles, Union Ministry of Micro, Small & Medium
Enterprises (MSME) and National Textile Corporation (NTC), on 8 December 2015,
signed MoU to set up a Technology Centre (Tool Room) at Kanpur.
Ministry of Railways flags off first double decker
Goa Mumbai Train:
Railways
Minister Suresh Prabhu on 6 December 2015 flagged off the first Goa to Mumbai
double-decker Shatabdi train through video conference from Panaji, Goa. The fully air-conditioned double-decker train
is the first-of-its-kind in India.
· The
train will run thrice a week between Margao and the Lokmanya Tilak Terminus
(LTT) in Mumbai.
· The
double decker train will cover the distance in around 12 hours.
· It
has eight compartments with a seating capacity of 120 in each compartment.
Lok Sabha passes bill to establish BIS as National
Standards Body:
The
Lok Sabha, on 3 December 2015, passed the Bureau of Indian Standards Bill, 2015
to establish the Bureau of India
Standards (BIS) as a National Standards Body.
The bill seeks to establish harmonious development of standardization
and assessment and quality assurance of goods, processes and services.
· The
bill broadens BIS ambit, and allow the Union Government to make it mandatory
for certain notified goods, articles and processes to carry the standard mark.
· It
allows multiple types of conformity assessment schemes in tune with best global
practices.
· It
contains provision to make misuse of Standard mark as a cognizable offence.
· Contravention
of provisions of the law will attract imprisonment for a term which may extend
to one year or with fine of at least one lakh rupees.
Ministry of Railways, TERI University sign MoU to
set up Railway Chair on Sustainable Mobility:
The
Ministry of Railways and TERI University, on 23 November 2015, signed MoU to
set up Railway Chair on Sustainable Mobility at the premises of TERI
University. The Chair would focus and
promote research on issues of sustainable mobility, use of energy efficient
technology and green energy initiatives.
Ministry of Railways sign AOT agreements with
SAIL-RITES Bengal Wagon Industry Pvt.Ltd.
The
Ministry of Railways, on 24 November 2015, signed the Assured Off Take
Agreements (AOT) with SAIL-RITES Bengal Wagon Industry Pvt.Ltd. (SRBWIPL) for
manufacturing and rehabilitation of wagons at Kulti, West Bengal. The project was announced in 2010-2011 and
subsequently a Joint Venture SRBWIPL (50% : 50%) was set up between two major PSUs
SAIL and RITES. SRBWIPL has already been
awarded ISO: 9001-2008 certification for its Quality Management System and its
ISO 14001 for Environment Management System is expected by January 2016.
· With
the signing of the agreement, two major PSUs namely RITES of Ministry of
Railways and SAIL of Union Ministry of Steel will form a joint venture SRBWIPL.
· The
Joint ventures is a 2500 Crore rupees Make in India Initiative.
Lok Sabha passes Indian Trusts (Amendment) Bill,
2015:
The
Lok Sabha on 9 December 2015 passed the Indian Trusts (Amendment) Bill, 2015 by
voice vote. The Bill seeks to amend the
Indian Trust Act, 1882 to remove the archaic provisions from the 133 year old
legislation that have no relevance anymore.
It seeks to do away with the seven categories of securities in which
trust money can be invested as stated in the Act. It enables the Union Government to notify
securities or class of securities for investment by trusts.
· Indian Trusts Act, 1882
regulates the functioning of private
trusts and trustees in India. It also
outlines the procedure for investment of surplus funds of the trust for future
use.
BSE to introduce auto-cancellation of reversal
trades:
To
ensure safety of the securities markets, top bourse BSE, on 19 December 2015,
announced to introduce soon a mechanism that will automatically cancel reversal
trades executed on its by a broker for a particular client for a specific
quantity, there is a corresponding sale transaction, which takes place during
the day for the same quantity between the same set of broker/ clients and
vice-versa. Earlier, BSE had implemented
self-trade prevention check functionality and periodic price bands to curb
manipulation in the capital markets.
Transactions above Rs.2 lakhs need PAN from January 1 to curb black money:
The
government in December 2015, made it mandatory to quote PAN (permanent account
number) for all transactions in excess of Rs.2 lakh, regardless of the mode of
payment, to curb black money.
New Rules on PAN-related transactions
· The
new rule, effective from January 1, will cover purchases of all goods or
services. This includes all payments
made through cash, cheques or debit or credit cards.
· In
the case of immovable property, where quoting PAN is currently required for
transactions of Rs.5 lakh, the government has decided to raise the monetary
limits to Rs.10 lakh.
· It
raised the monetary limit to Rs.50,000 from Rs.25,000 in the case of hotel or
restaurant bills paid at any one time, and for bills on account of overseas
travel.
· The
limit is being raised to Rs.1 lakh from Rs.50,000 for purchase or sale of
shares of an unlisted company.
· Opening
of a no-frills bank account, such as a Jan Dhan account, will not require PAN.
Other than that, the requirement of PAN applies to opening of all bank accounts including the
co-operative banks. Those who do not
hold PAN would have to fill a form and furnish any one of a specified list of
documents to establish their identity.
Centre to set up 12 petrochemical complexes:
Union
Fertiliser Minister Ananth Kumar, on 4 December 2015, said that the Government
is working on a policy to establish 12 more petrochemical complexes in order to
have one complex in each 16 refineries, a move which could entail few lakh
crore of investment. At present, there
are four Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) or
petrochemical complexes in the country.
Centre to set up 12 petrochemical complexes:
Union
Fertiliser Minister Ananth Kumar, on 4 December 2015, said that the Government
is working on a policy to establish 12 more petrochemical complexes in order to
have one complex in each 16 refineries, a move which could entail few lakh
crore of investment. At present, there
are four Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) or
petrochemical complexes in the country.
Centre approves pacts with Germany for solar energy,
CG sector:
The
government, on 2 December 2015, approved a post facto agreement with Germany to
expand bilateral cooperation in the field of solar energy. Under the agreement, Germany would provide
concessional loans in the range of one billion Euros over the next five years
through Kreditanstalt fur Wiederaufbau (KfW).
The funds of KfW will also be utilized for providing soft loans to the
end-users through partner banks.
Airtel to invest Rs.60,000 crore `Project Leap’:
India’s
largest telecom services, provider, Bharti Airtel, on 30 November 2015,
announced that it will invest Rs.60,000 crore over the next three years under
the Project Leap Program to upgrade its networks to provide quality services
amid increasing competition. Large parts
of this investment will improve voice and data services.
Aircraft import norms eased:
According
to a government statement issued on 28 November 2015, carriers requiring to import
aircraft will now only have to get the initial approval of the regulator, the
Directorate General of Civil Aviation (DGCA), instead of the ministry. The Ministry of Civil Aviation has delegated
the power to grant initial No Objection Certificate or in-principle approval
for import or acquisition of aircraft to the DGCA, after the RBI relaxed norms
of aircraft, helicopters and other aviation related purchases by airlines.
· As
per the existing procedure, Scheduled Operators (airlines) and Regional Operators
(airlines) and Regional Scheduled Operators have to seek approval from the
ministry for import of aircraft.
Government Infra projects to boost construction
equipment business:
Union
Minister for road transport, highways and shipping Nitin Gadkari recently
announced plans to increase the length of national highways to 1,50,000 km from
the present 96,000 km including expressways.
The Government has also set a target of constructing 30 km of National
Highways a day.
· The
Government has also announced four major corridor development projects such as
the Delhi-Mumbai industrial corridor, Amritsar-Kolkata, Vizag-Chennai and
Bangalore – Mumbai.
Government advances roll out of BS-V and BS-VI norms
for 4-wheelers:
The
government, on 28 November 2015, advanced the date for implementation of the
roll out of Bharat Stage (BS) stage V and VI norms for four-wheelers by three
years. According to the roadmap earlier
laid down by the Auto Fuel Policy, BS-V norms were to be implemented from April
1, 2022 and BS-VI from April 1, 2024.
Accordingly, the ministry has decided to implement BS-V norms from April
1, 2019. BS-VI norms, which aim at
substantial reduction in NOx/4C levels will be implemented from April 1, 2021.
Government panel to evaluate candidates for RBI Deputy
Governor Post:
As
per an announcement made in November 2015, a government appointed panel will
interview candidates next month for the post of Deputy Governor of the Reserve
Bank of India as the term of Urjit Patel, the central bank’s incumbent in charge
of monetary policy, expires in January 2016.
Two of the RBI’s Executive Directors, Michael D Patra and Deepak
Mohanty, have been called for the interview, apart from Mr. Patel, who is
eligible for re-appointement, according to banking industry sources who did not
wish to be named as the information is confidential.
· A
Central Bank Deputy Governor can be appointed for a term with a maximum of five
years or till the age of 62, whichever is earlier.
· The
RBI has provision for 12 Executive Directors, which was increased from nine
following the appointment of three new officials in 2014.
Government.extends RuPay insurance cover period:
The
government, on 26 November 2015, extended the usage criterion of the RuPay
debit cards in order to avail of the in-built insurance cover. Earlier, cardholders had to use the card
within 45 days prior to claim the insurance claim. This has now been extended to 90 days. Under the Pradhan Mantri Jan Dhan Yojana
16.54 crore accounts have been provided a RuPay debit card.
EPFO to invest in AA+rated private bank bonds:
The
Employees’ Provident Fund Organization (EPFO),
the country’s largest retirement fund
with over Rs.8 lakh crore under its watch, on November 2015, decided to
begin investments in bonds rated AA+
or higher issued by private sector banks.
· Under
a new investment pattern adopted in April 215, it is required to park 35 per
cent to 45 per cent of its fresh accruals into corporate bonds, higher than the
previous threshold of 10 per cent.
· With
the EPFO board, ratifying investments in bonds rated AA+ or higher, PF savings
can now be invested in bonds issued by
private banks with a tenure of 10 years, with an upper limit of 20 per cent of
each bank’s net worth.
Reliance Defence gets conditional approval for 12
industrial licenses:
Anil Ambani-owned Reliance Defence,
in November 2015, received conditional approval for 12 industrial licenses for
eight of its subsidiaries for making defence equipment including aircraft,
helicopters, missiles, night vision gear and naval and land systems.
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