Author Archives: Naresh Kumar

Finance Ministry Denies Links With Tainted UK Note Printing Company

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Following reports in sections of media stating that the Union Government has compromised the national interest by collaborating with a tainted UK based Note Printing Company, a statement from the Ministry of Finance denied that the company is in any way involved in printing new currency notes.

A report in November by Sabrangindia.com alleged that the blacklisted company, De La Rue (now renamed KBA Giori) for its reported involvement in the Panama papers scam, was still supplying paper for new notes. It was blacklisted following an investigation by the CBI in 2011 for its alleged role in dealings of counterfeit currency.

Clarifying on such reports, the ministry said, the UK firm had been supplying bank note paper till 2010 and as per the decision taken in 2013, the company was permitted to supply a security feature for bank notes till December 2015.

No fresh contract has been given to this company by the Government during the last three years, it said. The Security Clearance for this company has been withheld by the Ministry of Finance, Government of India and hence no fresh orders have been placed with the said company since 2014.

However, the company has applied for setting-up a factory in India and no action has been taken on their application, it added.

Despite Demonetisation, December Foreign Tourists Growth Stands at 13.6%

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Indian tourism sector has seen 13.6% growth in Foreign Tourist Arrivals (FTAs) in December 2016 over the same period in 2015 and US accounts for highest share of tourist arrivals followed by Bangladesh and UK in December 2016, said the Ministry of Tourism in a statement.

The tourism sector earned Rs.16,805 crore in Foreign Exchange in December 2016, which shows that the sector recorded growth despite the claims that demonetisation had affected the overall foreign tourist arrivals.

Ministry of Tourism compiles monthly estimates of Foreign Tourist Arrivals (FTAs) on the basis of Nationality-wise, Port-wise data received from Bureau of Immigration (BOI) and Foreign Exchange Earnings (FEEs) from tourism on the basis of data available from Reserve Bank of India. The following are the important highlights regarding FTAs and FEEs from tourism during the month of December, 2016.

Foreign Tourist Arrivals (FTAs) in December, 2016 were 10.37 lakh as compared to 9.13 lakh during the month of December, 2015 and 8.85 lakh in December, 2014. There has been a growth of 13.6% in December, 2016 over December, 2015.

Overall, foreign tourist arrivals for the calendar year 2016 were 88.90 lakh with a growth of 10.7% as compared to 80.27 lakh with a growth of 4.5% in January- December, 2015 over January- December, 2014.

The Percentage share of Foreign Tourist Arrivals (FTAs) in India during December, 2016 among the top 15 source countries was highest from USA (18.33%) followed by , Bangladesh (13.02%), UK (11.71%), Australia (5.43%), Russian Fed (4.18%),Canada (4.13%), Malaysia (3.38%), Germany (2.80%), China (2.53%), Sri Lanka (2.25%), Singapore (2.12%), France (2.01%), Japan (1.79%), Afghanistan (1.38%) and Nepal (1.34%).

The Percentage share of Foreign Tourist Arrivals (FTAs) in India during December 2016 among the top 15 ports was highest at Delhi Airport (27.77%) followed by Mumbai Airport (19.80%), Haridaspur Land check post (7.16%), Chennai Airport (7.13%), Goa Airport (5.64%), Bengaluru Airport (5.43%), Kolkata Airport (4.31%), Cochin Airport (4.17%), Hyderabad Airport (3.42%), Ahmadabad Airport (3.11%), Trivandrum Airport (1.81%), Gede Rail (1.59%), Trichy Airport (1.59%), Amritsar Airport (1.06%), and Gaya Airport (0.84%).

Foreign Exchange Earnings (FEEs) from Tourism during the month of December, 2016 were Rs.16,805 crore as compared to Rs. 14,152 crore in December, 2015 and Rs.12,988 crore in December, 2014. The growth rate in FEEs in rupee terms during December, 2016 over December, 2015 was 18.7% as compared to the growth of 9.0% in December, 2015 over December, 2014.

In the entire year 2016, foreign exchange earnings from tourism in rupee terms were Rs. 1,55,650 crore with a growth of 15.1% as compared to Rs. 1,35,193 crore with a growth of 9.6% during January- December, 2015 over January- December, 2014.

The figures in US$ terms during the month of December, 2016 were US$ 2.475 billion as compared to FEEs of US$ 2.126 billion during the month of December, 2015 and US$ 2.069 billion in December, 2014. and the growth rate in December, 2016 over December, 2015 was 16.4% compared to the growth of 2.8% in December, 2015 over December, 2014.

The earnings from tourism in US$ terms during January- December, 2016 were US$ 23.146 billion with a growth of 9.8% as compared to the US$ 21.071 billion with a growth 4.1% during January- December, 2015 over January- December, 2014, said the ministry in a statement.

After World Bank, IMF Too Downgrades India Growth Story Post-Demonetization

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after the traumatic brakes on India growth story due to demonetisation, India will see a GDP loss of 1% in the current fiscal year and 0.4% next year, said IMF within days after the World Bank downgraded India growth estimate.

The International Monetary Fund (IMF) estimates India’s growth rate for the current fiscal year to 6.6% from its previous estimate of 7.6% due to what it termed a “temporary negative consumption shock” from demonetization.

“In India, the growth forecast for the current (2016-17) and next fiscal year were trimmed by one percentage point and 0.4 percentage point, respectively, primarily due to the temporary negative consumption shock induced by cash shortages and payment disruptions associated with the recent currency note withdrawal and exchange initiative,” the IMF said in its latest World Economic Outlook (WEO).

But China with 6.7% will be the fastest growing economy surpassing India now with 0.1 percentage point more. The revised estimate for China to 6.5%, 0.3 percentage point above the October forecast was attributed to continued policy support.

In 2018, China’s growth rate is projected to be 6% against India’s 7.7%. The global growth for 2016 is now estimated at 3.1% as per the October 2016 forecast.

Economic activity in both advanced economies and emerging market and developing economies (EMDEs) will accelerate in 2017-18, with global growth projected to be 3.4% and 3.6%, respectively, said IMF keeping its October forecast in tact.

Earlier, even the World Bank decelerated India’s GDP growth for 2016-17 fiscal to 7% from its previous estimate of 7.6% citing the impact of demonetization. But it said India would regain momentum in the following years with a growth of 7.6% and 7.8% due to a reform initiatives.

Maurice Obstfeld, Economic Counsellor and IMF Research Department Director, at a news conference was upbeat on China growth story.

“Our China growth upgrade for 2017 is a key factor underpinning the coming year’s expected faster global recovery. This change reflects an expectation of continuing policy support; but a sharp or disruptive slowdown in the future remains a risk given continuing rapid credit expansion, impaired corporate debts, and persistent government support for inefficient state-owned firms,” he said.

In light of the US economy’s expected momentum coming from new President-elect Donald Trump’s policies may likely shift the next two-year projections for US growth, IMF said.

World Bank Provides $48 Million for Nagaland Health Project

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A financing agreement for IDA credit of US$48 million for the ‘Nagaland Health Project’ was signed with the World Bank in New Delhi on Monday.

The Financing Agreement was signed by Mr. Raj Kumar, Joint Secretary, Department of Economic Affairs on behalf of Government of India and Mrs. Genevieve Connors, Acting Country Director, World Bank (India) on behalf of the World Bank.

A Project Agreement was also signed by Dr. L. Watikala, Principal Director, Directorate of Health and Family Welfare, Government of Nagaland and Ms. Genevieve Connors, Acting Country Director, World Bank.

The project envisages to improve health services and increase their utilization by communities in targeted locations in the state of Nagaland. Communities in targeted locations will benefit from project activities at the community and health facility levels while the state as a whole will benefit from improvements in higher-level of system-wide investments, said a statement.

The project will directly benefit about 600,000 people and support and complement existing systems and mechanisms involving communities under the National Health Mission. The project will be completed by 31st March, 2023.

The project has two components — community action for health and nutrition, where it is designed to empower communities to oversee, manage, and improve HNP services and their utilization. An incentive strategy will be used whereby funding will be nutrition-related services and practices.

In turn, communities will use the incentives for activities and investments that are important to them and have potential impacts on health and nutrition. The component will have a major focus on knowledge and skill building of Village Health Committees and other stakeholders at the community level, including women’s groups and Village Councils, said World Bank in a statement.

The second component is the health system development. This component will support improvements in the management and delivery of health services, including both facility-specific and system-wide investments.

In November, World Bank provided the Government of India, $470 million for the six north eastern states of Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura to augment their power transmission and distribution (T&D) networks.

Oxfam Asks India to Introduce Inheritance Tax

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The top 62 billionaries of the world own 50% of world wealth while in India, the top 57 billionaires own what 70% of the population owns, said an Oxfam study that was released on Monday, showcasing rising income inequality, which portends more conflicts and rise in crime worldwide. The London-based non-profit asked India to introduce inheritance tax to end the alarming inequality.

The report titled ‘An economy for the 99 per cent’ said the total global wealth has been calculated at $255.7 trillion, of which about $6.5 trillion was held by billionaires such as Bill Gates ($75 billion), Amancio Ortega ($67 billion) and Warren Buffett ($60.8 billion) among others. In India, it said 84 billionaires own wealth of $248 billion out of the total wealth of $3.1 trillion, led by Mukesh Ambani ($9.3 billion), Dilip Shanghvi ($16.7 billion) and Azim Premji ($15 billion). The total Indian wealth in the country stood at $3.1 trillion.

“Over the next 20 years, 500 people will hand over $2.1 trillion to their heirs, a sum larger than the GDP of India, a country of 1.3 billion people,” Oxfam said, magnifying the fact that the poorest half of the world has less wealth than had been previously thought.

It was critical that the richest 10% of the population in China, Indonesia, Laos, India, Bangladesh and Sri Lanka have seen their share of income increase by more than 15% in the last two decades, while the poor have lost 15% of their income during the same period.

A top IT firm CEO in India earns 416 times higher the salary of a typical employee in his company and in terms of dividend too, the distribution of profits is hovering around 50% in India compared to more than 70% elsewhere, Oxfam said. It advised the Indian government to end wealth inequality, end poverty and introduce inheritance tax, increase the rate of wealth tax among others.

“Indian government must eliminate tax exemptions and not further reduce corporate tax rates. Governments must support companies that benefit their workers and society rather than just their shareholders,” Oxfam said in its report.

Demonetization a Gamechanger, Says Law Minister

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Demonetization has resulted in sharp decline in terror funding, hawala trade, supari killings and human trafficking of young girls as sex slaves, mainly from Nepal and the North East, said Union Law and IT Minister Ravi Shankar Prasad on Thursday speaking at a seminar.

Addressing the seminar, jointly organized by the Press Club of India, Indian Women Press Corps and the Supreme Court Lawyers’ Conference, he said that a new India, much stronger will emerge, transcending the barriers of caste, creed and religion with the November 8 decision of scrapping old Rs.500 and Rs.1000 notes.

Indicating that the government would not hesitate to take steps to widen the tax base, he said that development was not possible without enlarging the tax kitty as there was “only about Rs.5 lakh crore in the kitty of Finance Minister for development” before the demonetisation move, which he said would grow rapidly now.

“Every government comes and goes. Our government is transformative government and tools of technology are actively aiding the good governance. There are 110 crore Aadhar cards and 104 crore mobile connections today. Digital governance means faster delivery and even poor and illiterate people in rural areas are showing a new confidence in embracing the digital technology which has given a new vision of hope,” the Law and IT Minister said.

The Union Minister for Electronics & Information Technology and Law & Justice Ravi Shankar Prasad addressing the seminar jointly, organised by the PCI, IWPC and the Supreme Court Lawyers Conference, in New Delhi on January 12, 2017. (PIB Photo)

He also cited examples of Imran Khan, a mathematics teacher from a school in Alwar, Rajasthan whose mobile apps had benefitted 40 lakh children and a woman Satama Devi, a beedi worker from Telangana who had learnt how to use Skype to talk to her grandson in Dubai. “People like these are change agents. They believe in this new fast emerging India,” he noted.

The minister said that Aadhar enabled bank payments through smart phone would prove to be a “game changer” and a tool of empowerment. He said that out of 125 crore people only 3.7 crore pay taxes and 99 lakh file Income Tax returns but have no taxable income, two crore people show annual income of Rs. 6 lakh and only 24 lakh have an annual income of Rs. 10 lakh and above. The Law and IT Minister said that a panel, led by Justice Sri Krishna, had been set up to give a report within three months on making India a hub of arbitration.

Former Chief Justice of India M. N. Venkatachaliah who presided over the seminar on “Fundamental Duties and Economic and Judicial Reforms” stressed upon social evolution and education of young minds who can build a better India.

Indian Rupee to Touch 70 Per US$ in 2017: Reuters Poll

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After demonetisation, all calculations and projections have been turning red and even on forex front, the Indian rupee is seen dwindling further in value to about 70 per US dollar in 2017, said a poll-based survey by Reuters.

“The rupee is expected to fall further against the US dollar this year to a record low, hit by rising global bond yields and an economic blow from New Delhi’s dramatic currency crackdown launched two months ago,” said the Reuters poll.

“It is expected to fall further to 69.50 by year-end. That 12-month consensus is the weakest for several years and would mark a record low,” it said. Quoting a poll conducted three months ago, Reuters Polling team said three months back the view in a Reuters poll was for the rupee to trade at 67.73 in 2017.

In the year 2016, the rupee remained stronger with variance at below 2 percent, which was better than most of the regional peers making the India’s economy the fastest-growing in Asia. But the election of Donald Trump in the US presidential election and the effect of demonetisation by Indian Prime Minister Narendra Modi have reversed the expections, said the report.

“We see a less rosy scenario in the capital account and current account front in the coming two years, with global bond yields and money flowing back to the US,” said Bhupesh Bameta, head of FX research at Edelweiss Financial Services in Mumbai, participating in the poll.

Since demonetization has roughed up many savings avenues, the attraction for gold may come back again, he added.

Japan Seeks India to Resolve Transfer Pricing Issue First

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Commerce and Industry Minister Nirmala Sitharaman held talks with the visiting Japanese delegation led by Hiroshige Seko, Minister, Ministry of Economy Trade and Industry (METI) where the Japanese side raised the Transfer Pricing issue that has remained contentious between the two sides for long.

Japanese side said India should address the complaints raised by the Japanese chamber from time time to enhance the investments by Japanese companies in India. He also requested that the issue of Transfer Pricing assessment raised by Japan Chambers of Commerce and Industry in India (JCCII) needs to be resolved.

Sitharaman said the pace of implementation of India-Japan Comprehensive Economic Partnership Agreement (CEPA) requires greater momentum to tap the potential of India-Japan bilateral trade and Seko in his reply said 25 Japanese companies are participating in Vibrant Gujarat Summit.

The Japanese business delegates briefed about their business presence in India and expressed their willingness to diversify their business in sectors such as Agriculture, Power, Electronics, Railways, Logistics Sectors, manufacturing of ATMs, which has become urgent and imminent in view of demonetisation and the consequent cash crunch in the country.

The Japanese side also expressed interest in enhancing co-operation in the area of Intellectual Property Rights (IPR) between India and Japan and offered to train Indian IPR examiners in Japan to underline the need for a high level meeting between India and Japan on IPR cooperation. Seko offered an invitation to 100 IPR Examiners for training in Japan.

Sitharaman requested the Japanese side to take steps to increase Indian Exports to Japan in sesame seeds, Surimi fish and Indian generic drugs. She said that the Japanese Industrial Townships (JITs) in India would be transformational and will bring in significant Japanese investments and further strengthen India-Japan Economic Cooperation.

On the Logistics front she mentioned that India plans to build Logistics University wherein the cooperation from Japan would be needed.

India, Kazakhstan Sign Protocol on Double Taxation

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India and Kazakhstan signed in New Delhi today a Protocol to amend the existing Double Taxation Avoidance Convention (DTAC) between the two countries, renewing the earlier pact signed on 9th December, 1996 for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income.

The new protocol provides for internationally accepted standards for effective exchange of information on tax matters. Further, the information received from Kazakhstan for tax purposes can be shared with other law enforcement agencies with authorisation of the competent authority of Kazakhstan and vice versa.

The Protocol this time included a Limitation of Benefits clause, to provide a main purpose test to prevent misuse of the DTAC and to allow application of domestic law and measures against tax avoidance or evasion.

It provides for specific provisions to facilitate relieving of economic double taxation in transfer pricing cases, which is considered a taxpayer-friendly measure and in line with the Base Erosion and Profit Shifting (BEPS) Action Plan to meet the minimum standard of providing Mutual Agreement Procedure (MAP) access in transfer pricing cases.

The bilateral Protocol inserts service PE provisions with a threshold and also provides that the profits to be attributed to PE will be determined on the basis of apportionment of total profits of the enterprise.

The new Protocol replaces existing Article on Assistance in Collection of Taxes with a new Article to align it with international standards, said a statement from the Finance Ministry.

Indian Coast Guard Holds Talks With Visitng Sri Lanka Counterparts

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A three member delegation led by Director General Sri Lanka Coast Guard (SLCG) Rear Admiral Samantha Wimalathunge, which is on a three day visit to India from 03 January 2017 for a High Level Meeting, held talks with the Indian Coast Guard delegation was led by Director General of Indian Coast Guard Mr Rajendra Singh.

The visit was part of the bilateral efforts by the governments of the two countries to cooperate with the coast guards of two countries on maritime issues of mutual concerns to formulate a cooperative approach.

The meeting indicates the pro-active efforts of the Sri Lankan Coast Guard in meeting the challenges in the new global safety and security regime in the region. The visit also provides impetus to the existing ties between the two organisations at the operational level interaction for search and rescue, preservation and protection of marine environment, revalidating operational and communication procedures between the two maritime forces.

During the visit, the Sri Lanka delegation also called on the Defence Secretary G. Mohan Kumar and discussed on issues of common maritime interests. It was also agreed to strengthen the cooperation on evolving collaborative approach, in addressing the procedure for release and repatriation of fishermen, which tops the agenda.

Indian Cabinet Approves International Solar Alliance

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The Indian Cabinet, chaired by Prime Minister Narendra Modi has given its ex-post facto approval to the proposal of Ministry of New & Renewable Energy (MNRE) for ratification of ISA’s Framework Agreement by India.

ISA was launched jointly by the Prime Minister of India and the President of France on 30th November, 2015 at Paris on the side-lines of the 21st CoP meeting of the United Nations Framework Convention on Climate Change.

The ISA will strive to bring together more than 121 solar resource rich nations for coordinated research, low cost financing and rapid deployment.

The foundation stone of the ISA Headquarters was laid at Gwal Pahari, Guragaon in Haryana. India has already committed the required support of operationalization of ISA. ISA will put India globally in a leadership role in climate and renewable energy issues. It will also give a platform to showcase its solar programmes.

The Agreement was opened for signature on the sidelines of 22nd CoP meeting at Marrakesh, Morocco. The Agreement invokes the Paris Declaration on ISA and encapsulates the vision of the prospective member nations. UNDP and World Bank have already announced their partnership with the ISA. Till now, 25 nations have signed the Framework Agreement.

IT Raids Unearth Rs.2,600 Cr Since Nov. 8

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The Income Tax Department has carried out investigations since the de-monetisation of Old High Denomination (OHD) currency announced by the Government on 8th November, 2016 and unearthed  Rs.2,600 crore in 291 cases across the country. In addition, open enquiries have been effected in more than 3,000 cases.
Approximately Rs. 393 Crore including Rs. 316 Crore cash and Rs. 77 Crore worth of jewellery has been seized. Of the cash seizure, about Rs. 80 Crore is in new currency. As a result of these investigations, approximately Rs. 2600 Crore of undisclosed income has been admitted by the taxpayers.

The success of the Department in unearthing undisclosed incomes and detecting large scale malpractices is due to its focused enforcement actions based upon high quality data analytics under various categories thereby identifying and prioritizing high risk persons/groups.

This, coupled with the professional manner of conducting the investigations in a swift and confidential manner, has helped the Department make an impact in a short time.

204 Patents Issued So Far in Ayurvedic Formulations; AYUSH Ministry Pushes for Global Tie Ups

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Ayush ministry is collaborating with International Agencies in its quest for promotion of cooperation in the field of medicinal plants, the National Medicinal Plants Board (NMPB) signing a Memorandum of Understanding (MoU) with University of West Indies, Trinidad & Tobago in 2014.

To give further impetus to the promotion of international cooperation in the field of Medicinal plants, the NMPB has since revised its “Central Sector Scheme on Conservation, Development and Sustainable Management of Medicinal Plants, 2015”, by including a component on “Bilateral / International cooperation and collaboration with International Agencies”.

The salient features of Delhi Declaration on Traditional Medicines for South East Asian countries are follows:-

I.To promote National policies, strategies and interventions for equitable development and appropriate use of traditional medicine in the health care delivery system.
II. To develop institutionalized mechanism for exchange of information, expertise and knowledge with active cooperation with WHO on traditional medicine through workshops, symposia, visit of experts, exchange of literature etc.
III. To establish regional centers as required for capacity building and networking in the areas of traditional medicine and medicinal plants.

The Ministry of AYUSH has already set up Ayurveda Chair in University of Debrecen, Hungary and Rangsit University, Thailand.

Accordng to the Department of Industrial Policy & Promotion (DIPP), 204 Patents have since been granted on formulations/ processes/ products of herbs / plants, on inventions that satisfy the patentability criteria as laid out in the Patents Act, 1970.

As per the Patents Act 1970 (as amended), patents can be imparted only to new formulations based on products related to herbs/ plants or processes related thereto, which are not in public domain and fulfill the criteria of patentability.

Though Drugs and Cosmetics Act 1940 and Rules 1945, does not have any provision for registration of Ayurvedic formulations, to protect Traditional Medicinal Knowledge of India, the Ministry of AYUSH has created Traditional Knowledge Digital Library (TKDL) in collaboration with Council for Scientific & Industrial Research (CSIR) for digitalization of traditional medicinal knowledge.

More than 3 lakh formulations from the texts of Ayurveda, Unani and Siddha Systems have been digitalized till date under TKDL to protect Traditional Knowledge from misappropriation by providing defensive protection.

This information was given by the Minister of State (Independent Charge) for AYUSH, ShripadYesso Naik in written reply to a question in Lok Sabha.

Ministry Asks Banks to Show New Currency Deposit Receipts

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The Ministry of Finance, Government of India through its Department of Financial Services(DFS) has asked all the Public Sector Banks(PSBs) and the Indian Bankers Association (IBA) to ensure hundred percent(100%) that deposits of new currency is properly reflected in the customers’ counterfoils.

In a letter addressed to all the Managing Directors (MDs) & Chief Executive Officers (CEOs)/Chairman cum Managing Directors (CMDs) of PSBs and Chairman, IBA, the DFS has stated that maintenance of records regarding deposit of SBN and Non-SBN, as the case may be, is essential both in the bank record as well as the customer’s record.

The letter further states though most banks providing correct information to the customers yet to ensure that it is done in 100% of cases without fail, all the bank branches in the country be alerted to reflect correctly the cash deposit in old and new currency and inform the customers about the same.

The Ministry has asked the MDs &CEOs/CMDs of PSBs and Chairman, IBA that this must be followed scrupulously and any deviation in this regard has to be prevented and if noticed, dealt with firmly and immediately.

The letter further states that to educate the public, banks may clearly display a prominent sign (including in the local language) in their respective branches requesting their customers to fill-up deposit slips clearly indicating old and new currency and the denomination of the notes..

The DFS has asked all the MDs &CEOs/CMDs of PSBs and Chairman, IBA to consider this urgently and action taken in this regard be reported by 16.12.2016.

The Ministry also appreciated the role played by the banks post-demonetisation especially when the old currency was accepted and till 24th November, 2016, when exchange of old currency to specified limit was also permitted.

14 Coastal Economic Zones to Come up Under Sagarmala Program

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The Indian Ministry of Shipping has identified 14 Coastal Economic Zones (CEZ) along the coastline under National Perspective Plan (NPP) of Sagarmala Program, said Minister of State for Shipping Mansukh Lal Mandaviya in reply to a question in Lok Sabha on Thursday (08 Dec 2016).

The CEZ are  spatial economic regions spread over multiple coastal districts with strong port linkage. Within each CEZ, there could be multiple industrial clusters that could contain industrial units with requisite support infrastructure.  The details of  identified CEZs are as under:-

 

CEZ State Linkage Port Potential Industries
CEZ-1 Gujarat Kandla, Mundra Petrochemicals, Cement, Furniture
CEZ-2 Pipavav, Sikka Apparel, Automotive
CEZ-3 Dahej, Hazira Marine clusters
CEZ-4 Maharashtra

Goa

 JNPT, Mumbai Power, Electronics, Apparel
CEZ-5 Dighi, Jaigarh, Mormugao Refining, Steel, Food processing
CEZ-6 Karnataka New Mangalore Petrochemicals
CEZ-7 Kerala Cochin Furniture
CEZ-8  

Tamil Nadu

 VOCPT(Tuticorin) Apparel, Refining
CEZ-9 Karaikal Leather processing, Power
CEZ-10 Chennai, Kamarajar(Ennore) and Katupalli Steel, Petrochemicals, Electronics, Shipbuilding
CEZ-11 Andhra Pradesh Krishnapatnam Electronics
CEZ-12 Vizag, Kakinada Food processing, Petrochemicals, Cement, Apparel
CEZ-13 Odisha Paradip, Dhamara Petrochemicals, Marine processing
CEZ-14 West Bengal Kolkata, Haldia Leather processing

 

Based on the land parcels available in close proximity to a deep draught port and with strong potential for manufacturing, four CEZs have been identified to be taken up in the first phase of development.  These are in Gujarat, Andhra Pradesh, Maharashtra and Tamil Nadu. No special provision regarding tax holiday, employment and extent of investment has been made so far.

 

 

India Pushes for Digital Economy, Offers Incentives Galore

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To further accelerate the cashless economy, after the cancellation of old Rs.500 and Rs.1,000 notes, the Central Government has decided on a package of incentives and measures for promotion of digital and cashless economy in the country.
These incentives include:

1. The Central Government Petroleum PSUs will offer a discount at the rate of 0.75% of the sale price to consumers on purchase of petrol/diesel if payment is made through digital means. Nearly 4.5 crore customers buy petrol or diesel at such petrol pumps per day who can benefit from this. It is estimated that petrol/diesel worth Rs.1800 crore is sold per day to the customers out of which nearly 20% was being paid through digital means.

In the month of November 2016 it has increased to 40% and the cash transaction of Rs.360 crore per day have got shifted to cashless transaction methods. The incentive scheme has the potential of shifting at least 30% more customer to digital means which will further reduce the cash requirement of nearly Rs. 2 lakh crore per year at the petrol pumps.
2. To expand digital payment infrastructure in rural areas, the Central Government through NABARD will extend financial support to eligible banks for deployment of 2 POS devices each in 1 Lakh villages with population of less than 10,000.
These POS machines are intended to be deployed at primary cooperative societies/milk societies/agricultural input dealers to facilitate agri-related transactions through digital means. This will benefit farmers of one lakh village covering a total population of nearly 75 crore who will have facility to transact cashlessly in their villages for their agri needs.
The Central Government through NABARD will also support Rural Regional Banks and Cooperative Banks to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders to enable them to make digital transactions at POS machines/Micro ATMs/ATMs.
3. Railway through its sub urban railway network shall provide incentive by way of discount upto 0.5% to customers for monthly or seasonal tickets from January 1, 2017, if payment is made through digital means.

Nearly 80 lakh passengers use seasonal or monthly ticket on suburban railways, largely in cash, spending worth nearly Rs.2,000 crore per year.  As more and more passengers will shift to digital means the cash requirement may get reduced by Rs.1,000 crore per year in near future. All railway passengers buying online ticket shall be given free accidental insurance cover of upto Rs. 10 lakh.

Nearly 14 lakh railway passengers are buying tickets everyday out of which 58% tickets are bought online through digital means.  It is expected that another 20% passengers may shift to digital payment methods of buying railway tickets.  Hence nearly 11 lakh passengers per day will be covered under the accidental insurance scheme.

For paid services e.g. catering, accommodation, retiring rooms etc. being offered by railways through its affiliated entities/corporations to the passengers, it will provide a discount of 5% for payment of these services through digital means. All the passengers travelling on railways availing these services may avail the benefit.
4. Public sector insurance companies will provide incentive, by way of discount or credit, upto 10% of the premium in general insurance policies and 8% in new life policies of Life Insurance Corporation sold through the customer portals, in case payment is made through digital means.
5. The Central Government Departments and Central Public Sector Undertakings will ensure that transactions fee/MDR charges associated with payment through digital means shall not be passed on to the consumers and all such expenses shall be borne by them.  State Governments are being advised that the State Governments and its organizations should also consider to absorb the transaction fee/MDR charges related to digital payment to them and consumer should not be asked to bear it.
6. Public sector banks are advised that merchant should not be required to pay more than Rs. 100 per month as monthly rental for PoS terminals/Micro ATMs/mobile POS from the merchants to bring small merchant on board the digital payment eco system. Nearly 6.5 lakh machines by Public Sector Banks have been issued to merchants who will be benefitted by the lower rentals and promote digital transactions.  With lower rentals, more merchants will install such machines and promote digital transactions.
7. No service tax will be charged on digital transaction charges/MDR for transactions upto Rs.2000 per transaction.
8. For the payment of toll at Toll Plazas on National Highways using RFID card/Fast Tags, a discount of 10% will be available to users in the year 2016-17.

India Pitches for Cashless, Digital Payments Campaign

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As the demonetisation laid bare the difficulties of rural India not matching the urban centres in banking and payment technology, the Indian government has decided to pitch for a campaign provide information, education and communication, holding camps for transiting to the digital mode of payment.

Among the series of measures undertaken include incentives to the district administration which will give a boost to cashless digital payment systems across the districts, talukas and panchayats.

NITI Aayog has prepared a blueprint of incentives for the campaign for the district authorities and administration which include include incentives for digital payments for day-to-day financial transactions like buying or selling of goods and services, transferring money etc.

NITI Aayog will provide logistic support for outreach activities at these three levels in the form of the seed money of Rs.5 lakh per district administration to enhance the seeding of Mobile and Aadhar numbers to the bank account, issue of Rupay cards wherever necessary, issue of PIN, downloading of app and finally achieving two successful transactions.

The top ten best performing districts will be awarded the Digital Payment Champions of India award.

The first 50 Panchayats which go cashless will be awarded Digital Payment Award of Honour

The five digital payment systems are –

1.Unified Payment Interface, UPI

2.USSD (*99#banking)

3.Adhar Enabled Systems

4.Wallets &

5.Rupay/Debit/Credit/Prepaid Cards

The Hindi/English version of the brochure is made available on the website- www.niti.gov.in/conetent/digital-payments and NITI Aayog has put up the entire sets of creative material – presentations/posters and FM radio spots/ films on its website – www.niti.gov.in/conetent/digital-payments.

In addition, Common Service Networks are being mobilized in going cashless and the Ministry of Electronics and Information Technology has announced cash incentive of Rs.100 for every merchant enabled to transact digitally. Two resource persons have been provided in each district collectorate to co-ordinate the CSE in each district.

NITI Aayog has also solicited the feedback on the challenges being faced by them, the solutions thereof and the manner in which they can be supported.

‘Bahubali 2’ Telugu Rights Sold for Rs. 26 Cr to Zee Network

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The satellite rights of “Baahubali: The Conclusion” (Telugu version) starring Prabhas and Rana Daggubati has been sold to Zee Network for a whopping Rs.26 crore, said publicists for the film.

“satellite rights have been acquired by Zee Network for a whopping price of Rs 26C, which would surpass the record of “Baahubali,” said #Mahesh, publicist for the film.

Ever since the shocking leak of 8-minute climax war scene leak of director S S Rajamouli’s “Baahubali: The Conclusion” (Bahubali 2), the post-production has gone into utmost secrecy in Hyderabad and 60 other digital studios all over the country.

The curiosity value is so high that if any leak over the country-wide question of “Why Kattappa killed Baahubali?” is still keeping the momentum on the public pulse. “The producers and director SS Rajamouli are huddled together about the next move. All post-production has been halted until a method to prevent further damage is found,” said a source to Deccan Chronicle.

Bahubali publicist Mahesh S Koneru has denied that there is any delay in post-production work over the leak but conceded that security has become more strict over the post-production process. He said, “Access has become more strict and more security measures are in place.”

It is unlikely that the storyline will be leaked as it was written by SS Rajamouli’s father KV Vijayendra Prasad and kept secret throughout the shooting period of the film.

Otherwise, S.S. Rajamouli is content that the film has come off well. In a latest twitter message he said it was 25 years after that the VR technology is being used. “After 25 years in film industry venturing into VR for the first time. First shooting day of SWORD OF BAAHUBALI,” he said.

Demonetisation: Supreme Court Warns Govt to End Cash Crisis

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The Supreme Court on Friday warned the government to find ways to end the cash crisis as people standing in long queues for hours every day may turn violent anytime leading to anarchy.

Brushing aside the government contention, the court made it clear that “It is a serious issue.” Since it affects the entire population, it said, “You cannot deny there is a serious problem. There could be riots.”

The bench consisting of Chief Justice TS Thakur and Justice AR Dave retorted to attorney general Mukul Rohatgi’s plea seeking directive to lower courts to stop hearing cases related to demonetisation. Once the high courts take up legal suits, millions of suits will move the courts seeking intervention to redeem their money.

The bench took exception to limit the daily cash exchange limit to Rs 2,000, after promising to increase it to Rs.4500 creating suspicions in the minds of people about the government’s ability to exchange their money in time.

“The government just did not have the capacity to print new currency notes. They should have taken this into account and taken steps to avoid putting people into untold harassment,” said petitioners.

“Daily labourers are not getting paid, tea garden workers are not getting their salaries, people in rural areas have to walk long distances to reach banks and ATMs only to be told that these have run out of cash. It is a serious situation. Transporters are suffering. Trucks are standing idle without cash. India is a cash-based economy and the government has hurt it badly by freezing cash circulation,” senior advocate Kapil Sibal said in the Supreme Court on Friday on behalf of the petitioners who have questioned the legality of demonetisation.

The next hearing will be on November 25.

Promote Indian Entrepreneurs Abroad in Global Industries: Minister

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Piyush Goyal, Union Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines, said that Indian entrepreneurship needs to be promoted in global electrical industry.

While speaking at Light India Exhibition 2016, Goyal said, “We welcome technology from all around the world but at the end of the day, we would like to strengthen our Indian hands. I am happy to have imports come in, if we are at level playing field. But if we find that other countries are dumping goods into India, certainly that is not welcome in the country.”

Appreciating new and innovative concepts like solar street lights at the exhibition, Goyal stated, “I can actually imagine putting up not less than 10 or 15 million solar street lights, particularly in rural areas.”

Goyal also emphasized on the fact that modalities like cost, battery life, newer technology, process monitoring etc are yet to be work out. Referring to the disruptive economy, the Minister asked Industry to reorient their price structure. He urged the industry to participate in LED street programme aggressively.

Talking about Bureau of Indian Standards, the minister said that the standards need to be better monitored in the imported electrical products.