Today's News in Media - 11-08-2016
Ftapcci Hyd
Dear all,
FDI
NBFCs: Cabinet opens FDI tap on ‘financial services’
Foreign direct investment (FDI) can now take the automatic route
into any regulated financial service activity.The Centre on Wednesday
operationalised a Budget announcement allowing FDI via the automatic route in
respect of ‘other financial services’, beyond the 18 specified NBFC
activities. This dispensation will, however, only be provided to those services
that are regulated by any of the financial sector regulators such as the
Reserve Bank of India, SEBI, the Pension Fund Regulatory and Development
Authority or a government agency.
http://www.thehindubusinessline.com/todays-paper/nbfcs-cabinet-opens-fdi-tap-on-financial-services/article8970597.ece
TAX
Centre clears tax hurdles to recast of public sector units
To ensure that the process of reconstruction of public sector
units does not lead to capital gains tax, the government has proposed changes
to the existing income-tax law by broadening the definition of
‘demerger’.A Bill to ensure the smooth splitting-up or
reconstruction of such entities without leading to any incidence of capital
gains tax was passed by the Lok Sabha on Wednesday. Any reconstruction or
splitting of a public sector company will be “deemed” to be a
‘demerger’ under the income-tax law if this has been done to give
effect to any condition attached to the transfer of its shares by the Centre,
according to the Taxation Laws (amendment) Bill 2016.This is expected to
fast-track the unlocking of value by the Centre in various public sector
companies, say economy watchers.
http://www.thehindubusinessline.com/todays-paper/centre-clears-tax-hurdles-to-recast-of-public-sector-units/article8970596.ece
GST
GST: Centre may give more space to States on tax modalities
With just a little more than six months left for the targeted roll
out of the goods and services tax (GST), the Centre has decided to adopt a
multi-pronged strategy that includes giving more leeway to the States on
working out tax modalities and in turn getting their support on acceptable tax
rates.“A rejig in GST rates later in 2017 and 2018 may be difficult with
State elections and the run-up to the general election (2019). It would be
ideal if a reasonable rate can be finalised now for next April,” said a
source, noting that this would ensure that the inflationary impact would get
absorbed in the initial year of GST roll out. “A reasonable rate of even
20 per cent would ensure that there is no need for any price control or
anti-profiteering regulation that has been introduced in some countries to
mitigate the impact of GST,” said a person familiar with the issue.
http://www.thehindubusinessline.com/todays-paper/tp-news/gst-centre-may-give-more-space-to-states-on-tax-modalities/article8970608.ece
GST: property rates may shoot up
Property prices in the city and rest of Telangana are all set to
increase because of the introduction of GST (Goods and Service Tax), Real
Estate Sector leaders have predicted. The cost of every property might increase
by 20 per cent though the prices of construction material like cement is likely
to go up marginally, said S. Ram Reddy, president, CREDAI (Confederation of
Real Estate Developers Association of India), Hyderabad. He said that with
service tax not reaching the service providers or developers but only the
government, the prices might have to be increased by them. He also added that
the GST rates would be high when compared to just VAT or Service Tax, which may
lead to higher pricing of properties.However, other members of the association
felt that it was too early to know the impact of GST and differed on the exact
increase of prices.
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/gst-property-rates-may-shoot-up/article8971581.ece
INFORMATION TECHNOLOGY
TRAI to come out with final paper on free data by month-end
The Telecom Regulatory Authority of India (TRAI) will come out
with final consultation paper on ‘free data’ by month-end. It will
also bring out a pre-consultation paper on Met neutrality by the end of this month.“We
will bring out the final consultation paper on free data by end of this month
since the pre-consultation is done, and also the pre-consultation paper on Net
neutrality will be out by end of this month,” Rs. Sharma, Chairman, TRAI, told reporters
here. Speaking on the sidelines of launch of a new portal —
‘Quality of Services (QoS)’, he said TRAI is trying its best to
find solutions for consumer satisfaction and protection through various
consultation papers and such portals.
http://www.thehindubusinessline.com/todays-paper/tp-info-tech/trai-to-come-out-with-final-paper-on-free-data-by-monthend/article8970568.ece
Modi to turn Twitter Shehansha surpassing BigB in followers
A politician is set to rearrange Twitter landscape in India by
overtaking a Bollywood icon for the top slot.Yes, the Prime Minister Narendra
Modi (@narendramodi) has surpassed Bollywood ‘Shehansha’ Amitabh
Bachhan (@SrBachchan) as the most followed person on Twitter in India.Modi was
one among the few politicians to enter Twitter in 2009. While launching the
Gujarat edition of BusinessLine on May 24, 2013, he had said that social
media has given voice to common people. As a political leader, he knew its
power and was using it to maximise his reach.
http://www.thehindubusinessline.com/todays-paper/tp-info-tech/modi-to-turn-twitter-shehansha-surpassing-bigb-in-followers/article8970569.ece
Hitting back at telcos, RJio says dominant operators blocking launch
of its services
Reliance Jio on Wednesday said existing telecom operators were
blocking its efforts to launch its services commercially. RJio said that a
large part of telephone calls made by its test users were not being completed
because the incumbent operators were not releasing adequate points of
interconnection (POI).“Due to insufficient interconnection, even the
existing 15 lakh test users are experiencing 65 per cent call failures owing to
POI congestion. It would clearly not be prudent (or compliant with the licence)
for Reliance Jio to contemplate launching of commercial services with this
level of call failures,” RJio said in a letter to the Department of
Telecom.
http://www.thehindubusinessline.com/todays-paper/hitting-back-at-telcos-rjio-says-dominant-operators-blocking-launch-of-its-services/article8970595.ece
GAS
By 2022, biofuel ‘will become a Rs. 50,000-crore
business’
The biofuel business in India is expected to touch Rs. 50,000 crore by 2022, based on the
demand of petrol and diesel in the country, said Dharmendra Pradhan, Minister
of State (Independent Charge) for Petroleum and Natural Gas, on Wednesday.
Currently, the bio-diesel and ethanol industry in India is worth Rs. 6,000 crore. However, this is mainly
driven by ethanol procurement.In the current sugar year (October 2015-September
2016), public sector oil marketing companies will be able to supply four per
cent of ethanol blended fuel by procuring 120 crore litres of
biofuel.Bio-diesel procurement started only in 2014 and a pilot programme
started in August 2015. It has now been extended to six States.
http://www.thehindubusinessline.com/todays-paper/tp-news/by-2022-biofuel-will-become-a-rs-50000crore-business/article8970604.ece
SOLAR POWER
First Solar Power commissions plants in AP, Telangana
First Solar Power India, the local subsidiary of the Nasdaq-listed
First Solar, announced the successful commercial operation of 80 MW and 50 MW
solar power plants in Andhra Pradesh and Telangana on Wednesday.The projects
are part of the 260-MW project portfolio owned by First Solar in
India.“After achieving a milestone of 1GW in solar photovoltaic capacity
footprint in India, we are delighted to add 130 MW of utility scale solar power
to the grid, growing our portfolio of operational solar assets to a cumulative
capacity of 150 MW,” said Sujoy Ghosh, First Solar’s Country head
for India. The two plants will collectively produce enough energy to power
approximately 227,500 average homes in India, the company said in a statement.
http://www.thehindubusinessline.com/todays-paper/tp-news/first-solar-power-commissions-plants-in-ap-telangana/article8970618.ece
BANKING
For SBI, big is bountiful
When it comes to describing the State Bank of India, one tends to
run out of size descriptors pretty quickly. It is India’s largest lender
by assets, the country’s biggest bank by branch network, operates the
world’s largest centralised core banking system and offers the widest
choice of languages to its customers of any bank in the world. At two hundred
years of age, SBI is not only alive, but kicking the competition.The roadmap of
SBI’s journey, from a colonial enterprise reflecting the might and power
of the greatest empire of modern age to what it is today — the
flag-bearer of Indian banking — mirrors the economic and political
journey of the nation itself, from feudal times to the British Raj, through the
ups and downs of the freedom struggle and the battle to forge a new republic in
the years that followed. Its history is India’s history.
http://www.thehindubusinessline.com/todays-paper/tp-news/for-sbi-big-is-bountiful/article8970622.ece
CHILD LABOUR ACT
Child labour derails the youth advantage
Lately, there’s been much hot air over the Child Labour
(Prohibition & Regulation) Act 1986, with a pointless controversy erupting
over a recently amended version of the Act passed by both houses of
Parliament.The Child Labour Act is one of the least effective pieces of
legislation in India, one that has hardly been useful in containing, let alone
eliminating, child labour. The prosecution and conviction rate is laughably low
and most of its key provisions have for long remained unenforceable.The Act
deserves to be scrapped and, along with it, the ill-equipped labour ministry
must be divested of the responsibility to eliminate child labour in India.
http://www.thehindubusinessline.com/todays-paper/tp-opinion/child-labour-derails-the-youth-advantage/article8970672.ece
WTO
How we cooked our goose at WTO
India lost two high-profile trade disputes at the World Trade
Organisation recently — both to the US. These could be good case studies
on how not to handle such matters.In both the poultry dispute and the fight
over domestic sourcing clause in the country’s solar power programme, it
was a case of too many cooks spoiling the broth.The bigger of the two botch-ups
is, without doubt, the handling of the solar dispute. Two years ago in
September, India gave up the opportunity of imposing anti-dumping duties on
cheap solar panels imported from the US and China, despite the Directorate
General of Anti-Dumping (DGAD) recommending such duties.The finance ministry
refused to notify the duties as the ministries of new and renewable energy
(MNRE) and road transport and highways rallied against the move, arguing there
wasn’t enough domestic manufacturing capability.
http://www.thehindubusinessline.com/todays-paper/tp-opinion/how-we-cooked-our-goose-at-wto/article8970674.ece
AGRICULTURE
‘Cover all crops under insurance’
Crop insurance coverage needs to be enlarged and made universal by
including all crops and insuring major risks that may lead to crop failure, a
report by the Standing Committee on Finance has suggested.It has also
recommended an integrated and comprehensive credit-crop-livestock health
insurance package for all farmers to promote integrated farming.Farmers who
have not availed institutional credit including tenant farmers and share
croppers, too, need to be brought under the ambit of crop insurance by popularising
the schemes in various ways, the report on ‘state of rural/agricultural
banking and crop insurance’ added.The report described the Pradhan Mantri
Fasal Bima Yojana, launched in the on-going kharif cropping season, as a
“path-breaking” scheme which aims to provide insurance coverage
against losses due to natural calamities, pests and diseases and stabilise the
income of farmers.
http://www.thehindubusinessline.com/todays-paper/tp-agri-biz-and-commodity/cover-all-crops-under-insurance/article8970571.ece
STEEL
Steel Ministry should have pushed for coking coal import duty
waiver: House panel
A parliamentary committee has said that the Ministry of Steel
should have taken up the matter of waiving import duty and clean energy cess on
coking coal at the highest level to protect domestic steel firms. The Standing
Committee on Coal and Steel noted that domestic steel makers are suffering from
higher cost of power, finance, logistics and government levies as compared to
their international peers.In a report titled ‘Research and Development in
Iron and Steel Sector’ tabled in the Lok Sabha on Wednesday, the Committee
said, “The Ministry of Steel has desired that import duty and clean
energy cess on coking coal be removed as 90 per cent of coking coal is procured
through imported sources…the Ministry should take up the matter at the
highest level.”
http://www.thehindubusinessline.com/todays-paper/tp-news/steel-ministry-should-have-pushed-for-coking-coal-import-duty-waiver-house-panel/article8970605.ece
EXPORTS
Tweak in rules now permits export of small arms
from India with due permission
Top small arms manufacturers from across the
globe are looking to set up shop in India with a critical tweak in rules by the
government that has enabled the private sector to set up manufacturing units
and even cater to export orders after due permissions. The revised Arms Rules 2016, which
have been notified by the government last month, have brought clarity to the
sector, giving clear rules on how private players can set up shop, bring in
foreign investment and sell small arms.
http://economictimes.indiatimes.com/articleshow/53642985.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
STATE
Telangana to soon release draft notification on new districts
The State will have 14 new districts, taking the total to 24. After
taking suggestions from people, the government will notify the names before the
Dasara festival on October 11.Creation of new districts such as Jagityal,
Mahaboobabad, Badradri and Yadadri is expected to make governance smoother and
reduce the hassle for people.With the government indicating names of some new
districts, political parties and stakeholders in different parts of the State
have started agitations with demands for some inclusions in the list. Chief
Minister K Chandrasekhara Rao, who reviewed the process on Tuesday, had asked
the government to take into consideration administrative and economic
backwardness as the parameters, and not political demands, while deciding on
the boundaries of new districts.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/telangana-to-soon-release-draft-notification-on-new-districts/article8970646.ece
Credai property show
The Confederation of Real Estate Developers’ Associations of
India (Credai) Hyderabad, will hold its 5th edition of Property Show 2016 at
the Hitex Exhibition Centre, Madhapur.The three-day show on August 13-15 will
bring together over 115 realtors, manufacturers of building materials,
consultants and financial institutions from various parts of the country to
showcase over 15, 000 properties, products and services.S Ram Reddy, president
of the association, told newspersons today that Hyderabad was on the threshold
of an interesting phase of development with multinationals like Google, Amazon,
IKEA, Microsoft, Infosys, Synchrony Financial etc either starting or expanding
their operations. The Telangana government has also simplified the building
rules.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/credai-property-show/article8970647.ece
Cochin Chamber in tie-up for e-certificates
The Cochin Chamber of Commerce & Industry has joined hands
with myeasydocs, an IIT-Madras incubated company, to launch Aadhaar-based
‘e-certificate of origin’ services.A certificate of origin is issued
to exporters by the Chamber of Commerce to get duty benefits under Free Trade
Agreements or to attest from where the goods originated. It is a critical
document in the course of export and to align the goals of the Cochin Chamber
of Commerce & Industry in digital technology, the Chamber is launching
Aadhaar-based e-certificate of origin service.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/cochin-chamber-in-tieup-for-ecertificates/article8970687.ece
‘Worst is not over for the shipping industry’
The shipping industry is still under recession and the worst-hit
appears to be the dry bulk rates with Baltic Index hovering over the 600+
level. Are there any chances of an early recovery? Sunil Thapar, CEO of
Allcargo Shipping Co, a leading Indian logistics company, says growth in the
sector will depends on the revival of Chinese and European markets. Thapar, who
has been in the shipping industry for more than four decades, headed the bulk
and tanker division of the public sector Shipping Corporation of India before
joining Allcargo a year ago.In a conversation with BusinessLine , Thapar spoke about the potential of
coastal shipping in India, impact of GST on the logistics sector and the
Allcargo’s plans to expand the shipping business.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/worst-is-not-over-for-the-shipping-industry/article8970641.ece
Kudankulam unit dedicated to nation
A President, a Prime Minister and a Chief Minister sitting in
three different cities met virtually to dedicate the first unit of the
Kudankulam Nuclear Power Project (KKNPP) to the nation.Nearly 28 years after
Russia and India signed the agreement to set up the plant, Prime Minister Narendra
Modi, Russian President Vladimir Putin and Tamil Nadu Chief Minister
Jayalalithaa on Wednesday did the honours through a video conference organised
from Moscow, Delhi, Chennai, and Kudankulam.The 1,000-MWe KNPP-1 is the largest
single unit of electrical power in India. “At Kudankulam alone, five more
units of 1,000 MWe each are planned,” Mr. Modi said.
http://www.thehindu.com/todays-paper/kudankulam-unit-dedicated-to-nation/article8970913.ece
‘State will target 15 p.c. growth this fiscal’
Finance Minister Yanamala Ramakrishnudu has said that the
government would target 15 per cent growth this fiscal and is trying to mop up
revenue from all sources to partially compensate for the deficit.Inaugurating
the head office of Finance Department at the Interim Secretariat Complex (ISC)
at Velagapudi in Guntur district on Wednesday, Mr. Ramakrishnudu said that his
department would become fully functional from August 29 and that the focus was
on increasing the growth rate from 10.99 per cent last year to 15 per cent.
http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/state-will-target-15-pc-growth-this-fiscal/article8971093.ece
Bill to increase work hours, overtime tabled in Lok Sabha
The government on Wednesday introduced a Bill in the Lok Sabha
with provisions to increase working hours as well as overtime by amending the
Factories Act 1948.The Bill was introduced by Labour Minister Bandaru
Dattatreya after Speaker Sumitra Mahajan over-ruled objections by some
Opposition members.While former Labour Minister Mallikarjun Kharge (Congress)
wanted the ‘important legislation’ to be sent to the Standing
Committee, NK Premachandran (RSP) said it ‘infringed’ upon State
powers, and Shankar Dutta (CPI-M) objected to it being introduced as it was
similar to the one introduced in 2014, which was before the Standing Committee.
http://www.thehindubusinessline.com/todays-paper/tp-news/bill-to-increase-work-hours-overtime-tabled-in-lok-sabha/article8970603.ece
Cabinet approves amendment to Lokpal and Lokayukta Bill
The Union Cabinet on Wednesday approved amendments to Section 44
and consequential amendments of the Lokpal and Lokayuktas Act, 2013 by
introducing the Lokpal and Lokayuktas (Amendment) Bill, 2016 in
Parliament.“The approved amendments will address concerns and
apprehensions expressed by different categories of public servants and
addresses the difficulties being faced in implementing the provision of section
44 of the Lokpal and Lokayuktas Act, 2013. The amendments are in line with one
of the recommendations of the Standing Committee,” stated an official
release issued post the Cabinet briefing.
http://www.thehindubusinessline.com/todays-paper/tp-news/cabinet-approves-amendment-to-lokpal-and-lokayukta-bill/article8970606.ece
FinMin issues new norms for expenditure efficiency
With the decision to do away with the distinction of Plan and
Non-Plan expenditure from the next fiscal, the Department of Expenditure in the
Finance Ministry has introduced new guidelines for approval of spending for
projects.Now, implementing Ministries have been empowered to appraise schemes
and projects costing betweenRs. 100 crore and Rs. 500 crore through their Standing
Finance Committee and Delegated Investment Boards, respectively. The earlier limit
was Rs. 150 crore.Projects and schemes costing
between Rs. 500 crore and Rs. 1,000 crore will be cleared by the
Minister in charge and the Finance Minister. Similarly, projects over Rs. 1,000 crore will be cleared by the
Union Cabinet.Meanwhile, schemes of up to Rs. 100
crore can be approved by the nodal Secretary. “A specific time frame for
appraisal has been laid down for speedier decision-making,” said the
Finance Ministry in a release on Wednesday, adding that the guidelines come
into effect immediately.
http://www.thehindubusinessline.com/todays-paper/tp-news/finmin-issues-new-norms-for-expenditure-efficiency/article8970607.ece
Tata Chem to sell urea plant to Norway’s Yara
Tata Chemicals has entered into an agreement with Norwegian
company Yara International ASA to sell its Babrala urea plant and distribution
business in Uttar Pradesh for $400 million (Rs.2,670 crore).The company was
trying to exit this business for nearly two years due to delayed payment of
subsidies. The proceeds will be invested in other growing businesses of the
company its Managing Director R. Mukundan said.
http://www.thehindu.com/todays-paper/tp-business/tata-chem-to-sell-urea-plant-to-norways-yara/article8970873.ece
Trade group accuses e-tailers of flouting FDI norms on discounts
The Confederation of All India Traders (CAIT), the apex body of
traders in the country, said it has filed a complaint with the Department of
Industrial Policy and Promotion (DIPP) against some leading e-commerce players
alleging that they are flouting the Foreign Direct Investment (FDI)
norms.E-commerce companies, including Amazon, Flipkart and Snapdeal, have been,
in the last three days, placing huge advertisements announcing discounts on
their e-platforms in violation of the FDI norms, according to CAIT.
http://www.thehindu.com/todays-paper/tp-business/trade-group-accuses-etailers-of-flouting-fdi-norms-on-discounts/article8970881.ece
Centre issues new norms for clearing public-funded schemes
The Finance Ministry has issued new norms for the appraisal and
approval of public-funded schemes as well as to improve the delivery of goods
and services to citizens.“With the announcement in the Union Budget
2016-17 of doing away with Plan Non-Plan distinction at the end of Twelfth Five
Year Plan, it is imperative that a plan non-plan neutral appraisal and approval
system is put into place,” the Finance Ministry said in a notification.
http://www.thehindu.com/todays-paper/tp-business/centre-issues-new-norms-for-clearing-publicfunded-schemes/article8970870.ece
Gadkari to lay the foundation for multi-modal terminal at Varanasi
Union Shipping Minister Nitin Gadkari will lay the foundation
stone for a multi-modal terminal at Varanasi and flag off the trial run of two
vessels carrying Maruti Suzuki cars and construction material, as a part of
National Waterway-1 development on Friday.The phase-I of the multi-modal
terminal will be built by AFCONS Infrastructure at an estimated cost of Rs.170
crore and is slated to completed by August 2018.
http://www.thehindu.com/todays-paper/tp-business/gadkari-to-lay-the-foundation-for-multimodal-terminal-at-varanasi/article8970874.ece
Rajan terms personal attacks ‘abominable’
Terming political attacks on him abominable, outgoing Reserve Bank
of India (RBI) Governor Raghuram Rajan said he was open to staying a bit longer
to complete the unfinished work of bank clean up, but was perfectly happy to
go.Mr. Rajan, who had in June decided against seeking a second term after the
3-year tenure which ends next month, said the process of dialogue with the government
did not reach a stage where he could have agreed to stay on.
http://www.thehindu.com/todays-paper/tp-business/rajan-terms-personal-attacks-abominable/article8970875.ece
RBL Bank eyes first private bank IPO in a decade
In the first IPO by a private sector lender in a decade,
Kolhapur-headquartered RBL Bank on Wednesday announced Rs.1,230 crore initial
public offer (IPO).The plan includes raising up to Rs.832.50 crore through the
issue of fresh shares and up to Rs.380 crore in an offer-for-sale by existing
shareholders. The share sale, accounting for 10-11 per cent stake, will give
the bank a valuation of over Rs.12,000 crore.
http://www.thehindu.com/todays-paper/tp-business/rbl-bank-eyes-first-private-bank-ipo-in-a-decade/article8970887.ece
This is for the information of the members.
R. KULKARNI
Joint Director