Today's News in Media - 06-08-2016
Ftapcci Hyd
Dear all,
START-UPS
FTAPCCI suggests incubation centres for start-ups
The Federation of Telangana and Andhra Pradesh Chambers of
Commerce and Industry has requested NITI Aayog (National Institution for Transforming
India) to be allowed to set up incubation centres for start-ups, one each in
Andhra Pradesh and Telangana, with the latter’s assistance and matching
grant of the State governments.The FTAPCCI proposed
the centres in the area of engineering and manufacturing in Telangana and
agriculture and allied subjects in AP.The effort was to provide all support for
free to start-ups at the incubation centres, the chamber president Ravindra Modi and
vice-presidents Gowra Srinivas and Arun Luharuka told a
media conference on Friday.Mr. Modi said President Pranab Mukherjee had
agreed to address the centenary celebrations of FTAPPCI in December.
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/ftapcci-suggests-incubation-centres-for-startups/article8951467.ece
GST
GST will boost growth: Kaushik Basu
GST will be the biggest benefit for Indian growth and it will help
cut down transaction costs, said Kaushik Basu, Chief Economist and Senior
Vice-President, World Bank, here on Friday. He urged the government to seize
this opportunity to make truck movement faster.According to him, GST
implementation can lead to faster movement of goods within the country without
trucks being stopped at check-posts for various tax collections. However, a
risk remains of some “some toll and charges” collection being done
mid-way.It is for the government to ensure unobstructed and free inter-State
movement of trucks.“I would suggest that the government, taking advantage
of this legislation (GST), make it a rule that no truck can be stopped....
except at the starting point or at the end. This will speed up the movement of
goods,” Basu said.“We have to make a fetish of efficiency and
bureaucratic cost being cut down. And this (GST) is a step towards that,”
he added.The long-term of benefits of GST will far outweigh the short-term
impacts like price hikes, if at all there is one, he pointed out.
http://www.thehindubusinessline.com/todays-paper/tp-news/gst-will-boost-growth-kaushik-basu/article8950285.ece
Centre keen to press ahead, set up GST Council by September-end
The NDA government wants to establish the proposed GST Council in
six to eight weeks so as not to lose the momentum built around the Goods and
Services Tax regime, which propelled the enabling Constitution Amendment Bill
through the Rajya Sabha.The sense of urgency is amplified by the
government’s keenness to roll out GST from April 1, 2017.“Our aim
is to set up the GST Council by September-end or early October so that it can
begin working on the fine details of the tax system, including rates,
compensation as well as the Model GST legislation,” said sources familiar
with the development.The Council will be set up once the Constitution Amendment
Bill is ratified by at least 50 per cent of the States and receives the
President’s assent. Indications are that the Empowered Committee of State
Finance Ministers, which is charting the GST roadmap, will be converted into
the GST Council. It will play a pivotal role in determining other aspects of
the tax such as exemptions, threshold, compounding and control.
http://www.thehindubusinessline.com/todays-paper/centre-keen-to-press-ahead-set-up-gst-council-by-septemberend/article8950257.ece
Centre, States must be flexible on rates, since GST Council will be
driven by consensus: Adhia
Revenue Secretary Hasmukh Adhia said that all decisions of the GST
Council will be based on consensus, and that some give and take was necessary
between the Centre and the States on the rates.“The position of the GST
Council is such that unless the majority of the States as well as the Centre
agree, no resolution can be passed. For a resolution to be passed, 75 per cent
of the votes are required out of those present and voting… virtually all
the decisions have to be based on consensus,” he told BusinessLine .A final decision on the GST rates
will be taken by the Council. “A quorum of 50 per cent is required. The Centre
has a one-third weightage in the vote while the State Governments collectively
have two-thirds weightage,” said Adhia.The Revenue Secretary acknowledged
that the Council will have to work overtime to meet the April 1, 2017 deadline.
“The time taken in sorting out key issues will depend on the keenness and
availability of time of the States to hold multiple meetings during September,
October and November,” he said.
http://www.thehindubusinessline.com/todays-paper/centre-states-must-be-flexible-on-rates-since-gst-council-will-be-driven-by-consensus-adhia/article8950255.ece
GST: The right prescription
The passage of the Constitution Amendment Bill to enable a Goods
and Services Tax (GST) regime sets the economy on the path of significantly
reduced layers and complexity in the indirect tax system; this will improve the
growth prospects and productivity of the economy.Globally, India’s
pharmaceutical industry is the third largest by volume and 14th largest by
value. To realise its full potential and protect the crucial investments made,
the GST — perhaps the most crucial part of what economists call the
fiscal policy framework — must get pro-active, and provide an environment
of certainty and predictability. To achieve that implementation holds the
key.The panel headed by Chief Economic Advisor Arvind Subramanian envisaged a
three-tier rate structure: a lower rate for essential goods at 12 per cent, a
40 per cent rate on luxury cars and other demerit goods such as pan masala and
tobacco products, and 17-18 per cent on all other goods.Life-saving drugs are
exempt from excise and customs duties. It is critical that this be continued in
the new regime; any increase will impact patients, particularly people in the
economically weaker sections who will have to bear an additional burden they
can ill-afford to. Everyone will be watching to see how the GST Council aligns
the rate structure, including for products which will be exempt from the GST
levy.
http://www.thehindubusinessline.com/todays-paper/tp-news/gst-the-right-prescription/article8950264.ece
BUSINESS
Centre asks industry for feedback for improving ‘ease of doing
business’
The Department of Industrial Policy & Promotion (DIPP) has
sought feedback from all stakeholders, including industry, to further improve
‘ease of doing business’ in the country.“We need constant
engagement and feedback from the industry. I urge you to participate with the
government in this massive exercise,” DIPP Secretary Ramesh Abhishek said
while addressing FICCI members on ‘Ease of Doing Business: Distance and
Destination’ on Friday.Abhishek suggested that industry chamber FICCI
should undertake a study that clearly states the areas where government
intervention could facilitate business. The study should highlight the best
practices of other countries in those areas and how India could adapt those
practices to suit its requirements, he added.In the past two years, the Centre
and States have worked on all 10 parameters on which the World Bank ranks
countries in the ‘doing business index’. The parameters assess
areas such as starting a business, construction permits, getting electricity
and conducting trade across borders. India ranked a poor 130th in a total of
189 countries ranked by World Bank in its Doing Business Report 2016, but its
position had moved up four notches from the previous year.
http://www.thehindubusinessline.com/todays-paper/tp-news/centre-asks-industry-for-feedback-for-improving-ease-of-doing-business/article8950284.ece
INFLATION
Govt sets inflation target at 4%
Just days ahead of the Reserve Bank of India’s bi-monthly monetary
policy review, which will be Raghuram Rajan’s last as Governor, the
Finance Ministry has notified an inflation target of 4 per cent with a range of
2 per cent for the next five years.Rajan has all along been a strident advocate
of inflation targeting. With this notification, the Centre has also moved ahead
with its plans for the new Monetary Policy Framework.“In view of the
powers conferred by Section 45ZA of the RBI Act 1934, the Central government,
in consultation with the bank, hereby notifies the inflation target beginning
from the date of publication of this notification and ending on the March 31,
2021,” said the government notification tabled in the Lok Sabha.
http://www.thehindubusinessline.com/todays-paper/govt-sets-inflation-target-at-4/article8950256.ece
MARKET
SEBI moots speed check for algo trade
Capital market regulator Securities and Exchange Board of India on
Friday released a discussion paper on tightening regulations relating to
algorithmic (algo) trading and high-frequency trading (HFT).Market
participants, both clients brokers undertaking proprietary trading, have
increasingly taken to algorithmic trading as it provides speed, control and
anonymity to the end-user. Further, delegation of decision-making to the
algorithms has enabled traders to generate large number of orders in a short
period of time, even while reacting to opportunities that may exist for a
fraction of a second.Among aspects SEBI will examine are random speed bumps and
randomisation of orders, according to SEBI’s consultative paper
.“SEBI is examining various options to allay the fear and concern of
unfair and inequitable access to the trading systems of the exchanges,”
the regulator said in the statement.
http://www.thehindubusinessline.com/todays-paper/tp-markets/sebi-moots-speed-check-for-algo-trade/article8950262.ece
Sensex surges 364 points on positive global cues
Driven by positive global cues, the Nifty and the Sensex spurted
up to close significantly higher on Friday.The Nifty closed 1.54 per cent (or
132.05 points) up at 8,653, while the Sensex ended 1.31 per cent (or 363.98
points) higher at 28,078.Among the Sensex stocks that sparkled were HeroMoto
Corp, Bajaj Auto, Tata Motors, Mahindra & Mahindra, Axis Bank and State
Bank of India.Dipen Shah, Senior V-P & Head Private Client Group Research,
Kotak Securities, said: “Markets ended the week on a strong note, buoyed
by supportive global cues. European stocks had finished in positive territory
yesterday as investors celebrated the Bank of England's latest decision to cut
UK’s key interest rate to a record low and to create a new Term Funding
Scheme .”
http://www.thehindubusinessline.com/todays-paper/sensex-surges-364-points-on-positive-global-cues/article8950250.ece
INFORMATION TECHNOLOGY
TRAI floats consultation paper to review quality of services
To calculate call drop rates, the Telecom Regulatory Authority of
India (TRAI) on Friday released a consultation paper tilted on ‘Review of
Network Related Quality of Service Standards for Cellular Mobile Telephone
Service’.The regulator has asked stakeholders to peruse the paper and
submit their comments by August 26 and counter comments by September 2.The
paper describes various parameters and respective benchmarks for assessment of
Quality of Service of 2G and 3G networks. It has also envisaged adding relevant
parameters for 4G/ BWA services, in view of their development in the network.
http://www.thehindubusinessline.com/todays-paper/tp-info-tech/trai-floats-consultation-paper-to-review-quality-of-services/article8950259.ece
BANKING
RBI intervening to keep the rupee stable: DBS Bank
Authorities have been net buyers in US dollars in three of the
first five months this calendar year, absorbing short-term inflows and keeping
the rupee in sync with regional movements, DBS Bank said in a report.Net
intervention purchases (by Reserve Bank of India) likely continued into July,
as the rupee shrugged post-Brexit jitters and strengthened past 67 to a dollar,
said Radhika Rao, Economist, DBS Bank.In the third quarter of calendar year
2016 so far, the rupee is amongst the best performer in the region, outdone by
the Taiwan dollar and the South Korean won. Renewed slump in oil prices and
risk-off mood on Thursday however, saw the rupee trim gains, she added. The
report observed that since hitting a record high of near $364 billion in
mid-June, India’s total foreign reserves have stabilised at $360-363
billion. The central bank has actively built reserves in recent years to shield
the economy from external volatility.
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/rbi-intervening-to-keep-the-rupee-stable-dbs-bank/article8950234.ece
HRD
HRD Ministry turns down plan to allow foreign universities in SEZs
The Human Resources & Development (HRD) Ministry has turned
down Commerce Ministry’s proposal to allow foreign universities to set up
campuses in the Special Economic Zones (SEZs) which will not have to follow
domestic regulations such as non-repatriation of profits.It has rejected the
Commerce Ministry’s argument that since SEZs were deemed foreign
territories, Indian regulations shouldn’t apply on them.“The HRD
has counter-argued that legislations such as labour regulations and criminal
laws were the same in the zones as in rest of the country, and for education,
too, it must be same,” an official told BusinessLine .
http://www.thehindubusinessline.com/todays-paper/tp-news/hrd-ministry-turns-down-plan-to-allow-foreign-universities-in-sezs/article8950286.ece
INTERNATIONAL
Chinese Foreign Minister coming on August 13
More than a month after India lost its bid to become a member of
the Nuclear Suppliers Group (NSG), Chinese Foreign Minister Wang Yi will be
visiting India on August 13.This will be the first high-level visit by China
since it scuttled India's application at the NSG citing procedural issues in
June 28.Both sides will be discussing all issues of bilateral importance,
including the recent NSG fiasco. Besides, both sides will also be discussing
matters related to the G20 Summit which is being hosted by China this year for
which Prime Minister Narendra Modi will be visiting China.Wang had last visited
India in June 2014. During his visit, he will be meeting External Affairs
Minister Sushma Swaraj. Both minsters last met in April in Moscow.
http://www.thehindubusinessline.com/todays-paper/tp-news/chinese-foreign-minister-coming-on-august-13/article8950287.ece
NITI AAYOG
NITI Aayog ready with draft of national energy policy
Country’s new energy policy being prepared by the NITI Aayog
will put greater focus on solar energy and natural gas for the country’s
energy mix.“The draft of the energy policy has already been prepared and
we are in talks with the various energy ministries now. This should be issued
as a policy in 10-12 weeks,” a senior official of the NITI Aayog said on
Friday.The official added that there are several changes in the new energy
policy as compared to the earlier energy policy formed by the erstwhile Planning
Commission in UPA-II regime.“In this policy we are going to give a lot
more emphasis on solar energy as the cost of electricity from solar has come
down drastically. Natural gas will also get its due importance,” said the
official.
http://www.thehindubusinessline.com/todays-paper/tp-news/niti-aayog-ready-with-draft-of-national-energy-policy/article8950296.ece
TEXTILE POLICY
Textile Policy will add a new hue to the handloom sector: Smriti
Irani
Taking forward the Make in India initiative and
the inclusive growth agenda, Textiles Minister Smriti Irani is all set to
announce a Textile Policy on Sunday that will add a new hue to the handloom
sector including ways of bolstering sales through e-commerce. Speaking to BTVI , Irani says the new Textiles Policy
will encompass all verticals of the handloom sector. To keep pace with time, Irani
confided that an announcement on e-commerce to boost marketing of handloom
products will also be made in the Textile Policy, which will coincide with the
second observation of the Handloom Day. In the run up to the event, Irani says
her experiment in social media with a hashtag of #IWearHandloom has been a
major success. It has already got 20 million impressions and sales are growing.
Irani now wants people to move from #IWearHandloom to #IJustBoughtHandloom.
http://www.thehindubusinessline.com/todays-paper/tp-news/textile-policy-will-add-a-new-hue-to-the-handloom-sector-smriti-irani/article8950302.ece
STATE
Arrangements in place for PM’s visit: Harish
Irrigation Minister T. Harish Rao said that arrangements for the
launch of Mission Bhagiratha by Prime Minister Narendra Modi on August 7 were
complete, and a warm welcome would be extended to him on his maiden visit
here.Mr. Rao, along with Collector D. Ronald Rose and other senior officials,
visited Komatibanda on Friday and supervised the arrangements.Speaking to
reporters later, the Minister said that Mr. Modi would formally inaugurate
pylon of Mission Bhagiratha and commence supply of water through tap
connections from Komatibanda where he would address a public meeting. The Prime
Minister would also lay foundation for the 1,600-MW power plant by the National
Thermal Power Corporation, renovation of Ramagundam fertiliser factory, Kaloji
Narayanarao Medical University at Warangal, and Kothapalli- Manoharabad railway
line.
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/arrangements-in-place-for-pms-visit-harish/article8951446.ece
Modi keen on addressing State’s problems: Naidu
Sounding positive on the outcome of his meeting with Prime
Minister Narendra Modi in New Delhi on Friday, Chief Minister N. Chandrababu
Naidu said a solution was expected soon.“The Prime Minister is reportedly
keen on evaluating options to help the bifurcated A.P.,” Mr. Naidu
said.He, however, said that his main purpose of the Delhi visit was to invite
all the dignitaries for the Krishna Pushkarams, which were scheduled from
August 12.
http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/modi-keen-on-addressing-states-problems-naidu/article8950610.ece
New energy policy also aims at air quality issues
The new national energy policy, likely to be finalised over the
next ten weeks, also factors in concerns about the air quality in the country
that has triggered judicial interventions such as the ban on diesel vehicles of
certain engine capacities in the capital.The NDA government had promised a new
national energy policy to replace the integrated energy policy introduced by
the UPA government, in the President’s address to Parliament in June
2014.
http://www.thehindu.com/todays-paper/tp-business/new-energy-policy-also-aims-at-air-quality-issues/article8950371.ece
Gas prices will remain subdued even longer than crude: Mahanagar Gas
MD
Natural gas will gain greater prominence in the future for
India as the fuel basket changes to include cleaner sources of energy and as
the price of natural gas falls internationally, Rajeev Mathur, MD of city gas
distributor Mahanagar Gas Ltd (MGL), told BusinessLine .
http://www.thehindubusinessline.com/todays-paper/tp-news/gas-prices-will-remain-subdued-even-longer-than-crude-mahanagar-gas-md/article8950289.ece
Centre to benefit from hike in subsidised LPG prices, says ICRA
The major benefit of the increase in the price of subsidised LPG
cylinders will accrue to the Central government while public sector oil
marketing companies will benefit marginally, the rating agency ICRA said in a
note.With effect from August 1, prices of subsidised LPG cylinders were raised
by Rs. 1.93 a cylinder, the second such since
early July 2016.“According to ICRA, if subsidised LPG prices are
increased by Rs. 1.95 a
cylinder a month for the current financial year, it would lead to an over all
reduction in gross under-recoveries on domestic LPG by Rs.910
crore in the 2016-17 fiscal and Rs. 2,090
crore for the fiscal 2017-18,” the ratings agency said in a statement.
http://www.thehindubusinessline.com/todays-paper/tp-news/centre-to-benefit-from-hike-in-subsidised-lpg-prices-says-icra/article8950293.ece
Centre seeks industry inputs on ease of doing business
The Department of Industrial Policy and Promotion (DIPP) has told
stakeholders, including industry bodies, to submit their inputs on further
improving ease of doing business in India.“We need constant engagement
and feedback from the industry. I urge you to participate with the government
in this massive exercise,” DIPP Secretary Ramesh Abhishek said at a FICCI
event here.
http://www.thehindu.com/todays-paper/tp-business/centre-seeks-industry-inputs-on-ease-of-doing-business/article8950364.ece
Anand Sinha to replace Vinod Rai on IDFC Bank board
Private sector lender IDFC Bank has appointed former Reserve Bank
of India deputy governor Anand Sinha on its board as an independent
director.Mr. Sinha, who will replace former Comptroller and Auditor General
(CAG) Vinod Rai, was appointed with effect from August 1.
http://www.thehindu.com/todays-paper/tp-business/anand-sinha-to-replace-vinod-rai-on-idfc-bank-board/article8950373.ece
TRAI for strict quality norms
The Telecom Regulatory Authority of India on Friday issued a
consultation paper seeking to tighten the benchmarks for measuring the quality
of service offered by telecos.While the regulator has sought
stakeholders’ view on an appropriate way to calculate call drop rates, it
has suggested that instead of measuring it for an entire service, the call drop
rate be measured for smaller locations to identify problem areas. TRAI also
elicited a debate for imposing financial disincentives in case of below par
performance.
http://www.thehindu.com/todays-paper/tp-business/trai-for-strict-quality-norms/article8950368.ece
GLOBAL
On social media, can PM Narendra Modi displace his
good friend, US President Barack Obama?
When Narendra Modi expressed concern for Sonia's
Gandhi's health after she cut short a road trip to his constituency of Varanasi
last week, the Prime Minister took to Twitter. Last December, he surprised
everyone with a tweet about an unscheduled stopover in Lahore to meet Pakistan
Prime Minister Nawaz Sharif. His post on winning the 2014 elections: 'India has
won...' is still the most-forwarded from India, with over 84,000 re-tweets.
http://economictimes.indiatimes.com/articleshow/53565939.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
China blocked India's NSG bid, but now wants help
on South China Sea
Chinese Foreign Minister Wang Yi is visiting
India on a three-day tour from August 12. Wang would try to make efforts aimed
at ensuring that Prime Minister Narendra Modi do not join other countries in
raising the controversial issue of South China Sea during the upcoming G20
meeting in early September.
http://economictimes.indiatimes.com/articleshow/53568816.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Stock markets of host countries surge during
Olympics
Olympics is more than an international sporting jamboree.
It has a strong investment appeal as well. A quick look at the returns
generated by the stock markets of host countries reveals a recurring investment
opportunity. Data show that stock markets of host countries have historically
generated positive returns during the Olympics as well as in the year following
the event.
http://economictimes.indiatimes.com/articleshow/53565277.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
'Undiplomatic' treatment by Pakistan made Rajnath
Singh leave Pakistan earlier than scheduled
Home Minister Rajnath Singh left Pakistan, where
he had gone to attend a Saarc meeting, earlier than scheduled because the host
country's establishment was being 'hostile' and because the Indian government
wasn't going to accept 'undiplomatic' treatment, senior officials familiar with
the matter told ET. These officials requested anonymity.
http://economictimes.indiatimes.com/articleshow/53565061.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Why it has been a long and bumpy ride for American
carmakers in India
Last week, ET reported that the big three US
carmakers— General Motors, Ford Motor and Fiat Chrysler Automobiles (a
US-Europe combine) — will push back on investments or review strategy in
India. Long-time watchers of the Indian automobile industry were hardly
surprised by the turn of events. Ford and GM have faced fluctuating fortunes
while Chrysler after delaying entry into India twice in the past, is finally
entering.
http://economictimes.indiatimes.com/articleshow/53566142.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
This is for the information of the members.
R. KULKARNI
Joint Director