Today's News in Mrdia - 24-08-2016
Ftapcci Hyd
Dear all,
CBDT
India has 7.4 crore taxpayers: CBDT chief
India’s income taxpayer base has touched 7.4 crore, CBDT
Chairperson Rani Singh Nair said here on Tuesday. This is a significant
increase from the 5 crore number bandied about in official circles in the
recent past.Prime Minister Narendra Modi had in June this year urged the income
tax department to aspire for a taxpayer base of 10 crore.Nair counted both
income-tax return filers and those covered under tax deduction at source (TDS)
to put the figure at 7.4 crore.Replying to a question at the 13th International
Tax Conference organised by industry body Assocham, the CBDT chief said there
was a need to both widen and deepen the taxpayer base. She noted that at 17 per
cent, India’s tax-to-GDP ratio figured much lower than the 23-24 per cent
seen in many countries, including among its neighbours.
http://www.thehindubusinessline.com/todays-paper/india-has-74-crore-taxpayers-cbdt-chief/article9023136.ece
INFORMATION TECHNOLOGY
Mobile handset manufacturing is now a Rs. 54,000 crore industry
The Centre’s efforts at making India a hub for electronics
manufacturing seem to be paying off in the mobile handset segment.According to
data compiled by the Indian Cellular Association (ICA), the industry body
representing mobile phone brands, handset manufacturing in 2015-16 rose a
robust 185 per cent in value terms to Rs. 54,000
crore from Rs.19,000
crore in 2014-15. ICA estimates that manufacturing activity will touch Rs. 94,000 crore this fiscal year.As many
as 25 entities are setting up phone assemblies employing over 37,000 people.
These factories are coming up across 35 locations in 10 States, and are capable
of producing 20 million handsets a month, according to ICA data.
http://www.thehindubusinessline.com/todays-paper/mobile-handset-manufacturing-is-now-a-rs-54000-crore-industry/article9023135.ece
Electronics industry body to open Taipei, Tokyo centres
With a view to facilitating investments in the electronics
manufacturing industry, the India Electronics and Semiconductor Association
(IESA) is gearing up to open offices in Japan and Taiwan this year. The centres
will help investors in those countries by providing information they might need
while investing in India.“We will open those centres this financial year.
While the Taipei centre will come up next month, the Tokyo one will be started
by March next. These international desks will help Taiwanese and Japanese companies
set up engineering and manufacturing facility in India,” MN Vidyashankar,
President of IESA, toldBusinessLine .
http://www.thehindubusinessline.com/todays-paper/tp-info-tech/electronics-industry-body-to-open-taipei-tokyo-centres/article9023139.ece
NSE
NSE names bankers for IPO
Taking a step towards listing its shares, the National Stock
Exchange (NSE) has appointed Citigroup Global Markets, JM Financial
Institutional Securities, Kotak Mahindra Capital Company and Morgan Stanley
India as global coordinators (merchant bankers or book running lead managers)
for its IPO.The decision was taken by the NSE board on August 22, said a
statement from India’s largest bourse.
http://www.thehindubusinessline.com/todays-paper/nse-names-bankers-for-ipo/article9023138.ece
IPR POLICY
Centre holds awareness campaigns on IPR policy
In a bid to spread awareness about intellectual property rights
(IPR), the Centre is holding campaigns on the National IPR Policy across States
and may ask them to come up with their own policies.The need to spread
information on commercialisation of patents was also highlighted at an
interaction between industry associations and lawyers with the Department of
Industrial Policy & Promotion (DIPP) on the awareness campaign. DIPP Secretary
Ramesh Abhishek, in his address to industry representatives, said that a
nation-wide awareness campaign on IPR will be launched by the department in
collaboration with the Office of the Controller General of Patents, Designs and
Trademarks (CGPDTM) and industry associations.
http://www.thehindubusinessline.com/todays-paper/tp-news/centre-holds-awareness-campaigns-on-ipr-policy/article9023152.ece
TAX
Talks on for Mauritius-like tax treaty with Singapore
India is likely to pursue amendments to its existing tax treaty
with Singapore substantially on the lines of those achieved with Mauritius
recently, a top income tax department official said.There may be small
variations and some fine tuning, but substantially similar to the amendments
effected in the India-Mauritius treaty, said Akhilesh Ranjan, Chief
Commissioner of Income Tax (International Taxation), at the 13th international
tax conference, organised by industry body Assocham here on Tuesday.
“Talks are going on. There are some procedures to be followed. Modalities
are on,” Ranjan said.This remark is significant as it indicates that
India would strive for attaining the taxing right on sale of shares of an
Indian company, by a Singapore-based tax resident.
http://www.thehindubusinessline.com/todays-paper/tp-news/talks-on-for-mauritiuslike-tax-treaty-with-singapore/article9023153.ece
Cash transactions above Rs.3 lakh may face ban
The government is considering a recommendation by the Special
Investigation Team to ban all cash transactions of more than Rs.3 lakh,
chairperson of the Central Board of Direct Taxes Rani Singh Nair
said.“The SIT recommendation is under consideration,” Ms. Nair said
while speaking at an Assocham conference. “As far as the Income Tax
Department is concerned, we have put a 1 per cent Tax Collected at Source on
cash transactions, we have made PAN quoting mandatory…, all these aspects
are also part of the SIT recommendation to stop the use of cash in the economy.
Rs.3 lakh and above is under consideration.”
http://www.thehindu.com/todays-paper/tp-business/cash-transactions-above-rs3-lakh-may-face-ban/article9023349.ece
GST
GST rate at 18% will be revenue neutral: CII chief
The ideal Goods and Services Tax (GST) rate should be around 18
per cent, Naushad Forbes, President, Confederation of Indian Industry (CII),
said here on Tuesday.Calling it a “revenue neutral rate”, Forbes
pointed out that an 18 per cent rate will lead to “neither an increase
nor a decrease” in taxes; immediate inflationary pressures on the economy
are also not forseen (at that rate).The rate is not “so high to damage
the market” (for demand of goods).Considered to be the country’s
biggest ever indirect tax reform, the GST framework has already been passed by
Parliament. “A max rate of around 18 per cent would be fine. Beyond that,
the first thing it will hit is demand. Supposing you had 22-23 per cent, it
will directly hit demand. If you suddenly end up paying 5-8 (percentage point)
more, then the immediate effect is you consume less,” Forbes reasoned.In
the long-run, a revenue neutral rate of GST will help bring in buoyancy and
lead to widening of the tax net and increased collections.
http://www.thehindubusinessline.com/todays-paper/tp-news/gst-rate-at-18-will-be-revenue-neutral-cii-chief/article9023168.ece
ECONOMY
Good monsoon to boost GDP growth to 7.8% this fiscal, says India
Ratings
Good monsoon rains could push up economic growth to 7.8 per cent
this fiscal, India Ratings said on Tuesday but warned that a slow recovery in
investments is hindering faster growth. “The upward revision has been
prompted by the progress of monsoon and the sowing of kharif crops so
far,” it said in its Economic Outlook for 2016-17.It had earlier pegged
GDP growth at 7.7 per cent this fiscal.Finance Minister Arun Jaitley had
expressed hope that the economy could grow at eight per cent this fiscal on the
back of good monsoon rains.
http://www.thehindubusinessline.com/todays-paper/tp-news/good-monsoon-to-boost-gdp-growth-to-78-this-fiscal-says-india-ratings/article9023154.ece
BANKING
Uploading of KYC data with Central Registry may miss September
deadline
The government’s move to mandate CERSAI (Central Registry of
Securitisation Asset Reconstruction and Security Interest of India) to be the
sole repository of KYC (Know Your Customer) information related to financial
sector regulators is likely to overshoot its September deadline.Those in the
know say uploading of existing KYC records (those prior to July 15, 2016) would
take a longer time.A senior banker well-versed with developments on the CERSAI
front, said: “Some banks are ready with their systems to upload the KYC
data with CERSAI while others are not. Data structures have to be compliant
with the CERSAI format and software vendors have to create interface with the
banks’ systems.
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/uploading-of-kyc-data-with-central-registry-may-miss-september-deadline/article9023114.ece
Bankruptcy code: Jaitley calls for speedy implementation
Finance Minister Arun Jaitley on Tuesday called for time bound
implementation of the Insolvency and Bankruptcy Code. “Immediate action
is required on the key requirements for implementation of the Code including
setting-up of Insolvency and Bankruptcy Board of India (IBBI) and notifying
rules for insolvency professionals, insolvency professional agencies and
corporate insolvency,” he said at a meeting to review its progress.To
promote ease of doing business by faster resolution of insolvency, the
government is hoping to implement the Code at the earliest.The Code, which was
approved by Parliament in May, provides for time bound resolution of financial
distress and bankruptcy of companies and individuals.The Finance Minister also
asked the officials of the Ministry of Corporate Affairs to notify the National
Company Law Tribunal Benches to deal with Corporate Insolvency and take action
for registration of insolvency professionals and insolvency professional
agencies.
http://www.thehindubusinessline.com/todays-paper/tp-news/bankruptcy-code-jaitley-calls-for-speedy-implementation/article9023155.ece
Human resource is a large contributor to the economy, says Finance
Minister
Human resource as a part of services sector is the largest
contributor to the Indian economy, said Finance Minister Arun Jaitley on
Tuesday.“India with such huge population has the human resource to manage
and contribute towards Indian economy which differentiates it from other
developed countries,” he said at an event at the Vivekananda Institute of
Professional Studies.Exhorting students to take part in the expanding economy,
Jaitley said that while the developed countries are grappling with a fast
ageing population, India is unique in its demographic situation that reflects a
highly aspirational middle class.
http://www.thehindubusinessline.com/todays-paper/tp-news/human-resource-is-a-large-contributor-to-the-economy-says-finance-minister/article9023156.ece
Pace of formation of new bad loans has slowed: RBI
Reserve Bank of India Deputy Governor S. S. Mundra said the pace
of formation of new non-performing assets (NPAs) or bad loans has decelerated
although some banks have posted losses for the first quarter of the current
financial year due to higher provisioning.He also said most of the banks are
adequately capitalised and the government has promised additional capital if
they require.In a bid to shore up cash-strapped public sector banks, the
government last month announced infusion of Rs.22,915 crore capital in 13
lenders including the State Bank of India and Indian Overseas Bank to revive
loan growth that has hit a two-decade low.
http://www.thehindu.com/todays-paper/tp-business/pace-of-formation-of-new-bad-loans-has-slowed-rbi/article9023355.ece
AGRICULTURE
FSSAI to allow import of food for special medical purposes
The Food Safety and Standards Authority of India (FSSAI) is
working on a mechanism to allow imports of products for consumers, especially
children, who suffer from IEM (inborn errors of metabolism) disorders. This
will be done through a special import notification in a bid to meet the
nutritional needs of children who suffer from metabolism disorders.As part of
its “Diet4Life initiative”, the regulator will facilitate the import
of Food for Special Medical Purposes (FSMP) products soon. These products are
made by companies such as Nestle, Danone and Abbott.These disorders, which
impact a small section of consumers, especially babies, occur due to single
gene defect leading to abnormalities in the synthesis of proteins,
carbohydrates and fats. The regulator has identified 15 IEM conditions under
this project.Pawan Agarwal, CEO, FSSAI, said that the regulator is taking
speedy action to create a platform and allow imports of such products in collaborations
with companies and health professionals. Under this project, four leading
hospitals have been identified and the regulator is collaborating with doctors
and dieticians to train them to be able to prescribe these products
since diagnosis of these disorders is difficult.
http://www.thehindubusinessline.com/todays-paper/tp-news/fssai-to-allow-import-of-food-for-special-medical-purposes/article9023172.ece
TRADE
‘Trade protections are acceptable for a short term’
Trade protections (to local industry) are acceptable if they are
for a short term or are temporary in nature, Naushad Forbes, President,
Confederation of Indian Industry, said here on Tuesday.However, he pointed out
that protection leads to temporary “cost to consumers”.“If
protection (is) temporary, we can accept. In the long term it (country) has to
do away the protections. The long-term objective has to be free trade with the
world,” Forbes said while responding to questions on protection sought by
the Indian steel industry against Chinese dumping. “Protection is also a
cost and tax on the end user,” he added.India has imposed protections
like safeguard duty and minimum import price on steel.
http://www.thehindubusinessline.com/todays-paper/tp-news/trade-protections-are-acceptable-for-a-short-term/article9023169.ece
MARKET
RBL Bank public issue gets 70 times subscription
The initial public offering of RBL Bank has received tremendous
response from all category investors. In all, the issue was subscribed by 69.6
times, with the number of applications crossing 10-lakh mark on the last day of
the IPO on Tuesday.The IPO is a combination of fresh issue of shares worth Rs. 832 crore and an offer-for-sale for
1.69 crore equity shares worth Rs. 380.46
crore. Existing investors including Beacon India Private Equity and GPE will
sell shares through the IPO.
http://www.thehindubusinessline.com/todays-paper/tp-markets/rbl-bank-public-issue-gets-70-times-subscription/article9023142.ece
REAL
ESTATE
Tackling the real estate logjam
Real estate in India has been severely impacted by the global
economic meltdown, leading to stressed assets that have affected buyers as well
as developers. Incomplete or delayed projects, depleted financial resources and
unutilised land parcels point towards the urgent need for innovative solutions
to break the logjam. The solution lies in tackling the ‘stressed
assets’ and reviving the real estate sector.India’s real estate
sector witnessed a boom in 2004-08 leading to a proliferation of commercial
office space and retail mall space when companies and investors were lapping up
every announcement/launch.
http://www.thehindubusinessline.com/todays-paper/tp-opinion/tackling-the-real-estate-logjam/article9023204.ece
POWER
Centre keen to tone up power distribution, network infra: CEA
The Centre is on a missionary mode to address the twin challenges
of financial revival of distribution companies and reduction of transmission
and commercial loss, said SD Dubey, Chairman of the Central Electricity
Authority.Delivering his keynote address at the inaugural session of
CII’s Energizing South 2016 conference on “Smart – Reliable
– Sustainable Power”, Dubey said, “the Centre is keen to
increase the efficiency of power distribution system in the country by
addressing issues like network infrastructure, and IT enablement. It is also
revising and amending technological standards for grid connectivity.”The
government’s priority is the efficient and systematic development of
generation, transmission, and distribution systems, the three limbs of the
power sector.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/centre-keen-to-tone-up-power-distribution-network-infra-cea/article9023179.ece
STATE
Maharashtra, Telangana sign water pacts
Maharashtra and Telangana today signed three agreements related to
irrigation projects, paving the way to solving a long-drawn row over sharing of
waters. Chief Ministers Devendra Fadnavis and K Chandrasekha Rao signed the agreements
facilitating construction of three barrages with a total storage capacity of 19
tmc (thousand million cubic ft) of water.When completed, the projects will
provide water to 40 lakh acres in Adilabad, Karimnagar, Medak, Nalgonda,
Nizamabad and Warangal districts. While the Medigadda barrage on the river
Godavari would have a capacity of 16 tmc, the Tummidihatti (on Pranahita) and
Chanakha-Korata barrage (on Penganga) would have storage capacities of 1.85 tmc
and 0.85 tmc respectively. Being taken up as part of Kaleswaram project, the
Medigadda barrage will help Telangana tap the Godavari water, providing water
to 18 lakh acres, according to a press release.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/maharashtra-telangana-sign-water-pacts/article9023177.ece
My Home to diversify into pharma, start-ups
My Home Industries, one of the largest conglomerates from
Telangana with interests in cement, real estate and power, has set its eyes on
pharmaceuticals and start-up funding as major diversification in the near term,
its founder Chairman J Rameswar Rao said.The Hyderabad-based company with
turnover of close to Rs. 5,000
crore, has made its first investment of Rs. 90
crore picking up equity in Celon Labs, an Oncology (cancer) focussed pharma
company with good export market. “This is our first entry and we are
exploring acquisitions to grow the pharma business in a big way”, Rao
told BusinessLine in an interview.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/my-home-to-diversify-into-pharma-startups/article9023205.ece
LV Prasad Eye Institute sets up innovation centre
Ideas which are innovative and have potential to translate into
tools for eyecare are set to get a boost at the Srujana Centre launched at the
Hyderabad-based LV Prasad Eye Institute (LVPEI).Innovators will have facilities
and access to work and interact with clinicians and researchers at the Centre,
which is perhaps one of the first such in the hospital sector in the country.It
is the result of an ongoing programme between the Eye Institute and the
emerging world’s special interest group at the MIT Media Lab in the US,
which began in 2013.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/lv-prasad-eye-institute-sets-up-innovation-centre/article9023209.ece
To improve connectivity, Govt to set up 50 regional airports in 3
years
The Centre will set up 50 regional airports over the next three
years, according to Civil Aviation Minister Ashok Gajapathi Raju.“We
estimate about 50 new regional airports to come up in the next three years. Ten
of them would be ready by the end of this year,” Gajapathi Raju told BusinessLine . Development of regional airports was
a key component of the draft civil aviation policy, which suggested levies on
airlines to fund creation of new airports in areas not well-connected by rail
and road such as the North-East as well as popular tourist destinations across
the country.“We are talking to all state governments to provide
concessions for these new airports which include low tax on ATF at 1 per cent
and elimination of service tax at these airports. Maharashtra could lead the
effort with six such airports to be ready in the next one year,” the
Minister said.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/to-improve-connectivity-govt-to-set-up-50-regional-airports-in-3-years/article9023180.ece
Transco to opt for PPP mode for developing projects
The Transmission Corporation of Andhra Pradesh (APTransco) has
decided to opt for public private partnership (PPP) mode for taking up at least
some of its future projects. The corporation is actively engaged in evolving
appropriate guidelines for the PPP mode projects and it would soon seek the
permission of the State government to shift to the PPP mode.The PPP mode is
hitherto confined to infrastructure development projects like roads and other
amenities, but the APTransco is actively contemplating adopting the mode to
ensure timely completion of its projects.
http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/transco-to-opt-for-ppp-mode-for-developing-projects/article9023515.ece
Panels formed for BRICS meet
Collector Pravin Kumar has formed working committees to make
arrangements for the smooth conduct of BRICS Urbanisation meeting scheduled to
be held in the city from September 14 to 16. Protocol, reception, transport,
beatification, media-publicity, cultural, exhibition and accommodation
committees have been formed with a senior in charge of each of them.Mr. Pravin
Kumar asked all the working committees to ready their plans for presentation
during Chief Minister N. Chandrababu Naidu’s visit on September 30.
http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/panels-formed-for-brics-meet/article9024599.ece
Centre joins issue with CAG over LPG
The Petroleum Ministry has issued a rebuttal claiming its calculations
were correct on the savings on account of direct benefit transfer in LPG
cylinders tabled in Parliament.A report by the Comptroller and Auditor General
had questioned the method arrived at on the savings, more than 10 days ago.
http://www.thehindu.com/todays-paper/tp-business/centre-joins-issue-with-cag-over-lpg/article9023351.ece
Reliance Cement becomes subsidiary of Birla Corp
Reliance Cement Company Private Ltd. (RCCPL) has become a
subsidiary of the city-based Birla Corporation Ltd., the company said in a
stock exchange filing. “The company has acquired 100 per cent of the
equity shares of RCCPL from Reliance Infrastructure Ltd.” In February,
BCL had agreed to buy Reliance Infrastructure’s cement business for
Rs.4,800 crore. The acquisition takes BCL’s annual capacity from 10
million tons (MT) to 15.5 million tons with a bonus of mineral concessions in
M.P., Rajasthan, Karnataka, A.P. and H.P. The mining lease at Mukutban,
Maharashtra, allows BCL to set up a 3 MT clinker unit, it said in a statement.
http://www.thehindu.com/todays-paper/tp-business/reliance-cement-becomes-subsidiary-of-birla-corp/article9023358.ece
India figures in 10 wealthiest countries at No. 7
India has figured among the top 10 wealthiest countries in
the world with a total individual wealth of $5,600 billion while the U.S.
topped the chart. According to a report by New World Wealth, India was ranked
7{+t}{+h}ahead of Canada ($4,700 billion), Australia ($4,500 billion) and Italy
($4,400 billion), which came in at 8{+t}{+h}, 9{+t}{+h}and 10{+t}{+h}slots,
respectively. The U.S. is the wealthiest in the world in terms of total
individual wealth held ($48,900 billion) while China stood second and Japan
third, with total individual wealth of $17,400 billion and $15,100 billion,
respectively. Others in the top 10 club include the United Kingdom (4{+t}{+h})
with a total individual wealth of $9,200 billion, followed by Germany
(5{+t}{+h}, $9,100 billion) and France (6{+t}{+h}, $6,600 billion).
http://www.thehindu.com/todays-paper/tp-business/india-figures-in-10-wealthiest-countries-at-no-7/article9023365.ece
Urjit Patel was PM Narendra Modi’s first
choice for RBI governor
The choice of Urjit Patel as RBI governor was
made by PM Narendra Modi himself. Patel was one of the four names on the table during
last week's meeting between the PM and Finance Minister Arun Jaitley. And Raghuram Rajan would not have got
a second term even if he hadn't opted out of it. The other three contenders for
the top job at RBI were Chief Economic Adviser Arvind Subramanian, former CEA
and currently World Bank's Chief Economist Kaushik Basu, and former RBI deputy
governor and now India's representative at IMF Subir Gokarn.
http://economictimes.indiatimes.com/articleshow/53834612.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
India a ray of hope: PM Modi on Linkedin
Prime Minister Narendra Modi said in a post on
Linkedin on Tuesday that his government's efforts could usher in an era of
historic growth and said India is a "ray of hope" when the world
economy is weakening and slowing down.
http://economictimes.indiatimes.com/articleshow/53836147.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Indians hold the highest numbers of H-1B visas
The number of H-1B visas issued to Indians
remains high and it constitutes 70 per cent of the total H-1B visas issued
worldwide by Washington, said visiting US Assistant Secretary of State for
Consular Affairs Michele Bond in what would indicate Obama administration's
willingness to continue with the existing policy.
http://economictimes.indiatimes.com/articleshow/53834771.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
My Gov: Modi government offers jobs on contract
Do you want to work for the Narendra Modi
government? Here is your chance, with the Centre now asking for resumes from
citizens who could be brought on board on contract to work as 'experts' in
various positions across central ministries.The government is looking for
editorial writers, senior management professionals, software developers,
researchers, data scientists, graphic designers, digital content script
writers, advertising professionals, academic experts, social media
exper ..
http://economictimes.indiatimes.com/articleshow/53835659.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Urjit Patel was PM Narendra Modi’s first
choice for RBI governor
The choice of Urjit Patel as RBI governor was made
by PM Narendra Modi himself. Patel was one of the four names on the table
during last week's meeting between the PM and Finance Minister Arun Jaitley.
http://economictimes.indiatimes.com/articleshow/53834612.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Urjit Patel will ensure continuity at RBI: SS
Mundra
RBI Deputy Governer SS Mundra said the
appointment of Urjit Patel as new governor of the Reserve Bank of India will
ensure continuity as he has been with the central bank for a while and that the
pace of formation of new non-performing assets (NPAs) has already decelerated.
http://economictimes.indiatimes.com/articleshow/53835669.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
This is for the information of the members.
R. KULKARNI
Joint Director