Today's New's in Media - 04-08-2016
Ftapcci Hyd
Dear all,
INVESTMENT
Huge investment coming Telangana’s way
The Central government would invest over Rs. 17,000 crore in
Telangana for revival of fertiliser plant in Karimnagar, coal-based NTPC power
plant at Ramagundam, rail link between Manoharabad and Kothapalli and the
textile park in Warangal.Prime Minister Narendra Modi would be laying the
foundation stone for these works when he arrives in the State later this week
and these projects would help Telangana in employment generation as well as
industrial development. “It’s a joyous occasion. Both the State and Central
government departments are working together to make the visit a success,” said
Union Minister for Labour Bandaru Dattatreya.At a press conference here on
Wednesday at ESIC regional office attended by State party chief K. Laxman, MLAs
Chintala Ramachandra Reddy, N.V.V.S. Prabhakar and others, the Minister said he
had already apprised the Prime Minister of the programme at Gajwel and briefed
him about the details on the occasion of his maiden visit. Mr. Dattatreya ,
said environmental clearance has been obtained for Ramagundam Fertilisers and
Chemicals Plant with a capacity of 12.7 metric tonnes.
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/huge-investment-coming-telanganas-way/article8940591.ece
IPR
Centre’s flagship initiatives likely to get additional funds
National industrial corridors, ‘Make In India,’ ‘Start-up India’
and the national Intellectual Property Rights (IPR) policy may get a major
fillip later this year in terms of additional Budgetary allocation.The
Department of Industrial Policy and Promotion (DIPP) — the nodal agency for
industrial corridors and the above-mentioned flagship initiatives — has begun
work on revamping its schemes.It aims to complete this exercise before the
Winter Session of Parliament and is likely to propose additional Budgetary
support this fiscal for industrial corridors, ‘Make In India, Start-up India
and IPR policy implementation, official sources said.
http://www.thehindu.com/todays-paper/tp-business/centres-flagship-initiatives-likely-to-get-additional-funds/article8939851.ece
BANKING
‘Cyber crime keeps bankers awake at night’
The threat of cyber crimes is keeping bankers awake at night, said
Arundhati Bhattacharya, Chairman, State Bank of India.“Technology is a great
enabler but it has its downsides too...(the threat of) cyber crime keeps me
awake at night,” she said recalling the $81 million digital theft involving the
Bangladesh Central Bank earlier this year.Speaking at a FICCI Banking Conclave
on Changing Landscape of Indian Banking, she said that it was important to be
aware of the fact that while technology had helped change the landscape of
banking it had its downsides and it was important to protect the banking
system.
http://www.thehindu.com/todays-paper/tp-business/cyber-crime-keeps-bankers-awake-at-night/article8939860.ece
AGRICULTURE
Centre extends cut-off for PM crop insurance scheme to Aug 10
The Agriculture Ministry has extended the cut-off date for
enrolment under the Prime Minister’s crop insurance scheme for kharif crops to
August 10. This is for all crops where the original cut-off was July 31
(subsequently extended to August 2) and will give more time to States to sell
it to farmers and improve coverage.Expressing concern on the slow roll-out of
the scheme in the on-going kharif crop season, the Centre has asked the States
to start the tendering process for insuring the rabi crop, to be sown starting
October, in August itself, an Agriculture Ministry official told BusinessLine .
http://www.thehindubusinessline.com/todays-paper/tp-news/centre-extends-cutoff-for-pm-crop-insurance-scheme-to-aug-10/article8939650.ece
Govt. extends sugar subsidy to mills
The Cabinet Committee on Economic Affairs has approved the
extension of production subsidy to sugar mills that achieve a minimum
performance standard with regard to export of sugar and supply of ethanol. This
has been done to offset the rising cost of cane and facilitate timely payment
of cane price dues of farmers.“Due to drought situation, there has been
significant decline in sugarcane/sugar production in the country by about 1.8
million MT (mMT) and 0.8 mMT respectively,” according to a government
statement. “Drought-affected States requested to reduce the target of sugar
export and ethanol supply due to non-availability of sufficient sugarcane and
molasses.”
http://www.thehindu.com/todays-paper/tp-business/govt-extends-sugar-subsidy-to-mills/article8939853.ece
An e-marketplace for farm equipment, inputs
A host of e-commerce sites in electronics, food and books have
made life easier for city folks. But why should only urbanites have all the
fun?Farmers in the southern States will soon have an e-commerce platform where
they can buy farm equipment, fertilisers, pest management products and seeds.As
it removes inefficiencies in the supply chain and make distributors redundant,
farmers can hope for a reduction in price.Origo Commodities, the
Hyderabad-based firm that offers post-harvest management solutions, is setting
up a digital platform that promises to make it easier for farmers to place an
order and remove uncertainties on availability of inputs.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/an-emarketplace-for-farm-equipment-inputs/article8939701.ece
GST
Green light for ‘one nation, one tax’
The Rajya Sabha passed the Bill to amend the Constitution paving
the way for the roll-out of the Goods and Services Tax (GST) on Wednesday
evening by two-thirds majority, as all political parties with the exception of
the AIADMK pledged support.The amendments moved by Union Finance Minister Arun
Jaitley were also put to vote. The Bill will now be returned to the Lok Sabha
for its approval.The Constitutional amendment will enable both the Centre and
the States to simultaneously levy the GST, which will subsume all indirect
taxes currently levied, including excise duties and service tax. It will be
levied on consumption rather than production.
http://www.thehindu.com/todays-paper/green-light-for-one-nation-one-tax/article8939891.ece
Miles to go before GST becomes a reality
The passage of the Constitution Amendment Bill by the Rajya Sabha
on Wednesday to enable the Goods and Services Tax regime may be a big
breakthrough for the NDA government’s reforms agenda, but it cannot afford to
rest easy as several hurdles remain to be crossed on a war-footing to roll out
the new indirect tax regime from April 1, 2017.Pushing the implementation date
further could dampen the BJP’s prospects in the 2019 general election, as
global experience of the transition to a GST regime suggests that the first one
or two years see a negative impact of higher inflation and a temporary dip in
growth before the economic fruits of a common national market kick in.
http://www.thehindu.com/todays-paper/miles-to-go-before-gst-becomes-a-reality/article8939885.ece
GST to have short term inflationary impact: Nomura
The implementation of the Goods and Services Tax would have an
inflationary effect on the economy in the near-term.“We estimate that the GST
would drive up headline CPI inflation by 20-70 bps in the first year due to i)
higher prices of electricity, clothing & footwear, health/medicine, and
education after accounting for input taxes; and ii) potential asymmetric
pricing behaviour by firms where tax increases may be quickly passed on to
output prices, while firms refrain from fully passing-on tax savings to
consumers,” according to a report by Nomura.
http://www.thehindu.com/todays-paper/tp-business/gst-to-have-short-term-inflationary-impact-nomura/article8939854.ece
The age of GST dawns
The introduction of a unified goods and services tax (GST) across
the nation is the most important indirect tax reform since Independence. It has
taken almost 16 years from the date of inception of the idea, formation of a
task force, to passage in Parliament. It represents a Herculean, nationwide,
multi-party consensus-building exercise which is finally bearing fruit.It has
huge implications. First, it addresses a serious impediment to our
competitiveness. Without the GST, there are multiple points of taxation, and
multiple jurisdictions. We also have an imperfect system of offsetting credits
on taxes paid on inputs, leading to higher costs. Further there is cascading of
taxes — that is, tax on tax. Interstate commerce has been hampered due to the dead-weight
burden on Central sales tax and entry taxes, which have no offsets. All this
will go once the GST is in place. It will enhance the ease of doing business,
and make our producers more competitive against imports.
http://www.thehindu.com/todays-paper/tp-opinion/the-age-of-gst-dawns/article8939871.ece
Now, iron out the wrinkles
Finally, the first step towards implementation of the Goods and
Services Tax (GST) has been taken. From a state where the entire discourse was
on the benefits of GST and the failure of India to implement such a landmark
tax, there will now be a shift to discussing the structure of the tax and the
forms and hurdles in implementation of GST.This is a major achievement for the
government given the considerable effort put in towards consensus-building. It
is also a major step for the economy since the introduction of the GST is
expected to knit the economy into a single common market which, in turn, will
allow investment to benefit from economies of scale and facilitate more
streamlined supply chain management. In other words, efficiency in the economy
can be improved.
http://www.thehindu.com/todays-paper/tp-opinion/now-iron-out-the-wrinkles/article8939872.ece
Good sense triumphs on the GST
Eleven years after it was first mooted in Parliament, the
Rajya Sabha has finally adopted a goods and services tax. After the mere
formality of its passage in the Lok Sabha for an approval of the amendments
made, it will have to be considered and approved by a majority of State
Assemblies before it can be sent to the President for assent. For now,
Parliament’s stamp is historic as the proposed tax will alter the powers of
taxation that States enjoyed under the Constitution and usher in a uniform
consumption-based tax structure across the land for almost all goods and
services. Only potable alcohol is proposed to be excluded from the GST’s ambit,
according to Finance Minister Arun Jaitley, with petroleum products set to be
pegged at a zero per cent rate till such time as the proposed GST Council reaches
an agreement with the States and the Centre on an acceptable framework for
taxation.
http://www.thehindu.com/todays-paper/tp-opinion/good-sense-triumphs-on-the-gst/article8939868.ece
Nasscom hopeful of GST concerns getting addressed
The National Association of Software & Service Companies is
confident of the Centre addressing the concerns raised by the IT industry with
regard to Goods and Services Tax (GST).Clarifying that no reduction in the tax
rates are being sought, Nasscom president R. Chandrashekhar said the industry
wants certain changes, before the Model GST Law comes into force, to ensure
that the new tax regime does not prove a nightmare procedurally for it. “GST
should not become a negative from a point of view of ease of doing business,”
he added.
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/nasscom-hopeful-of-gst-concerns-getting-addressed/article8940567.ece
ICSI backing for GST
An estimated 45,000-strong managerial workforce, in which women
comprise about 40 per cent, the Institute of Company Secretaries of India
(ICSI), has expressed its total support to the Goods and Services Tax Bill and
is bringing out a special magazine on it next month.Not stopping with that,
ICSI will take out a National GST Awareness Walk early in the morning on
Sunday, August 21, at the People’s Plaza here in a bid to effectively depict
the Institute’s stand on GST, said Mamta Binani, the second woman to head the
large body.In an interaction with presspersons ahead of a panel discussion on
‘Women empowerment-Gender diversity in the corporate board room’ here on
Wednesday, Ms. Mamta said, “We are only walking together, hand-in-hand for
progress.”
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/icsi-backing-for-gst/article8940573.ece
INFORMATION TECHNOLOGY
Cabinet approves 3% spectrum usage charge, paves way for Sept
auction
Paving the way for the spectrum auction process to begin, the
Union Cabinet on Wednesday approved a spectrum usage charge (SUC) of 3 per cent
of adjusted gross revenue (AGR), excluding revenues from wire-line
services.“This will facilitate moving to a simple, transparent and flat ad-valorem SUC regime, in accordance with the
law, and avoid creative accounting to bypass revenues,” said a government
statement.
http://www.thehindubusinessline.com/todays-paper/cabinet-approves-3-spectrum-usage-charge-paves-way-for-sept-auction/article8939628.ece
SERVICES SECTOR
Services sector July output hits 3-month high
Led by faster growth in new business and supported by lower
prices, the services sector grew to a three-month high of 51.9 in July,
according to the India Services Business Activity Index.This is the 13th
straight month of expansion in service sector activity. The index was
marginally lower at 50.3 in June. “Indian service providers enjoyed a welcome
upturn in demand during July, with a faster increase in new business
underpinning stronger growth of output and boosting confidence,” said Nikkei in
a release on Wednesday.
http://www.thehindubusinessline.com/todays-paper/services-sector-july-output-hits-3month-high/article8939632.ece
MARKET
Sensex sheds 284 points
While pundits predict equity benchmark indices hitting all-time
highs once the constitutional amendment to usher in the Goods and Services Tax
regime is passed, the indices on Wednesday appeared to be unimpressed, falling
about a percentage point each.The BSE Sensex lost 284 points to close at
27,697.51 while the NSE Nifty fell 78 points to close at 8,544.85.“Even as the
markets had largely discounted the passage of the GST Constitutional Amendment
Bill, and sold off in sympathy with the global markets, we will see some spurt
before the final results come out,” said Kamlesh Rao, CEO, Kotak Securities.
http://www.thehindubusinessline.com/todays-paper/sensex-sheds-284-points/article8939634.ece
STATE
Hyderabad firm launches laptop for Rs. 9,990
Telangana IT Minister K.T.Rama Rao on Wednesday said that the
State government was keen on encouraging young entrepreneurs and as part of the
hand-holding process extend tailor-made packages.Speaking after launching a
laptop, priced at Rs.9,999, of a Hyderabad-headquartered RDP Workstations Pvt
Ltd, the Minister said such packages would help harness the potential of young
entrepreneurs. He also highlighted the need to deploy technology to bring about
a social change.
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/hyderabad-firm-launches-laptop-for-rs-9990/article8940523.ece
Mphasis sets up facility in Hyderabad
IT services and solutions provider Mphasis has established a
Cognitive Hub for Risk and Compliance (CHRC) in Hyderabad for financial
services sector. Describing the facility, which IT Minister K.T. Rama Rao
opened on Wednesday, as an industry first, the company said the focus is on
creation and delivery of next-generation GRC (Governance, Risk and Compliance)
framework and domain-specific solutions for enterprises in the financial
services industry.It would develop next-generation GRC solutions based on
Artificial Intelligence, Cognitive Computing, Machine Learning, Natural
Language Processing, Big data, Semantic Modelling and Knowledge Systems
technology domains.
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/mphasis-sets-up-facility-in-hyderabad/article8940589.ece
Two-day pharma exhibition opens in Hyderabad tomorrow
The third edition of Pharmalytica 2016 will be held in Hyderabad
on August 5 and 6. About 150 exhibitors from major pharma companies and
industry leaders will participate in the expo.Organised by UBM India, the expo
is a platform for experts from analytical and biotech, lab equipments and
chemicals, machinery and outsourcing solutions background.
http://www.thehindubusinessline.com/todays-paper/tp-news/twoday-pharma-exhibition-opens-in-hyderabad-tomorrow/article8939657.ece
Road to safety: Hefty fines for traffic violations
The Union Cabinet on Wednesday approved a draft law to
substantially increase penalty for traffic violations such as juvenile driving,
over-speeding and drunken driving so as to improve road safety.Under the
proposed Motor Vehicle (Amendment) Bill of 2016, driving without licence will
attract a minimum fine of Rs. 5,000, up from Rs. 500 at present. For
over-speeding, a penalty of Rs.1,000-Rs. 2,000 is proposed, up from Rs. 400.
http://www.thehindu.com/todays-paper/road-to-safety-hefty-fines-for-traffic-violations/article8939888.ece
High Court quashes Telangana GO 123
Justice Suresh Kumar Kait of Hyderabad High Court on Wednesday
quashed the GO 123 issued by Telangana Government which provides for quick
acquisition of lands from land owners for public purpose.The court found that
the GO bypasses The Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013 ( Act 30 of 2013) and reminded
that the government is not a private property dealer.
http://www.thehindu.com/todays-paper/high-court-quashes-telangana-go-123/article8940520.ece
EPFO garners double-digit returns on equity investments
The Employees’ Provident Fund Organisation’s investments in equity
instruments have earned double-digit returns from August 2015 till July this
year, Labour Secretary Shankar Aggarwal said.“Last year, we took a bold
decision to invest provident fund (PF) money in equities. As of July 2016, we
have got a return of more than 12 per cent on equity investments of over
Rs.7,500 crore,” Mr. Aggarwal said at an event organised by Assocham here. He
said the return was higher compared to 7.5-8 per cent income earned from
investing in government securities.
http://www.thehindu.com/todays-paper/tp-business/epfo-garners-doubledigit-returns-on-equity-investments/article8939855.ece
Amazon opens facility for faster deliveries in Chennai
Amazon India has opened an ‘urban Fulfilment Centre’ in Chennai to
support its recently introduced Prime program of one and two-day deliveries and
serve a wider set of customers during the upcoming festive season till January
2017.With this centre, Amazon India has 23 operational Fulfilment Centres in 10
states across the country with a combined storage space of more than six
million cubic feet. This is the second of the six such centres planned ahead of
the festive season.
http://www.thehindu.com/todays-paper/tp-business/amazon-opens-facility-for-faster-deliveries-in-chennai/article8939864.ece
Cabinet approves 3 per cent SUC for auctions
The Union Cabinet approved spectrum usage charge (SUC) at
three per cent of service providers’ adjusted gross revenue for the upcoming
mega spectrum auctions. This clears the way for issuance of Notice Inviting
Application (NIA) by the Telecom Ministry for auctions in which highest ever
amount of over 2000 MHz of spectrum will be put on sale. The auctions, which
are likely to start within 45 days of issuing the NIA, can fetch the exchequer
at least Rs.5.5 lakh crore if all the mobile airwaves are sold at the reserve
price. The Cabinet also approved the weighted average formula, as proposed by
the Telecom Commission (TC), to calculate SUC – an annual charge paid by
operators for using airwaves -- with minimum rate pegged at 3 per cent.
http://www.thehindu.com/todays-paper/tp-business/cabinet-approves-3-per-cent-suc-for-auctions/article8940181.ece
GLOBAL
Vietnam assures India support for UN Security Council seat
Vietnam has assured that it will support India’s candidature for a
permanent seat at the UN Security Council (UNSC).The assurance was given by Vũ
Hồng Nam,Vice-Foreign Minister of Vietnam during his meeting with
Preeti Saran, Secretary, East. Both sides had the 8th Foreign Office
Consultations (FOC) and 5th Strategic Dialogue here on Tuesday. “Vietnamese
side reaffirmed its support for India’s candidature for a Permanent seat in an
expanded UNSC,” said a release issued by the Ministry of External Affairs. Both
sides discussed all issues of bilateral, including political and security
related matters, trade and investment, cooperation in health, energy and
agriculture sector, connectivity, lines of credit and other capacity building
projects in Vietnam and increasing people-to-people ties. Both parties also
discussed the progress in energy space.
http://www.thehindubusinessline.com/todays-paper/tp-news/vietnam-assures-india-support-for-un-security-council-seat/article8939658.ece
This is for the information of the members.
R. KULKARNI
Joint Director