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National Committee on Direct Cash Transfers in its meet with the Prime Minister of India Dr.
Manmohan Singh decided to roll-out, the Direct Cash Benefits from 1 January 2013 in 43
identified districts of the country. The decision was taken to ensure that the benefits could be
transferred electronically into the bank accounts of the individuals, without making delays
and diversions of any type.
A high level meet was conducted on 13 December 2012 with the District Collectors of thee
identified areas and fine tuned information related to steps that need to be taken in case of
Direct Benefits Transfer.
Direct Benefits Transfer and it covers:
Transfer of cash benefits like pensions, scholarships, NREGA wages and others directly
through the Government in the Bank or Post Office Accounts of identified beneficiaries under
the Direct Benefits Transfer (DBT) programme. The program would also device necessary
system so that the transfers can be done in a phased, time-bound manner for Direct Benefits
Transfer.
Direct Benefits Transfer would not act as a substitute for delivery of public services and it
would continue to be in place via normal delivery channels.
The Direct Benefits Transfer would not allow replacement of food through cash managed
under Public Distribution System. The Government will be committed towards legislation of
the National Food Security Act.
Rollout on 1.1.2013 mean in practice
The Rollout that would began on 1.1.2013 in 43 districts of 16 different states under 26
different schemes, which have been identified for first round of Direct Benefits Transfer. All
these districts were selected on the basis of its coverage of bank accounts and Aadhaar.
Domestic Automobile Sales Decreased in December 2012 despite Heavy Discounts
The domestic automobile sales finished at the lower end in December 2012, just like the
remaining year, despite all the discounts.
The homegrown auto manufacturer Tata Motors recorded a surprising drop of 51 percent in
its sales in the month of December 2012. Apart from this, other car manufacturers such as
General Motors, Toyota and Korean Hyundai Motor also witnessed decline in the sales in
December 2012. However, Honda Motor Co, Mahindra & Mahindra (M&M) and Ford India
registered a fair rise in their sale.
The scenario of dropping-sales has continued throughout the year 2012 despite heavy
discounts and offers. The automobile market however remained depressed throughout 2012
on the grounds of negative factors such as worsening economic conditions as well as higher
rates of interest.
The automobile market remained low even in terms of sales of two-wheelers. While the
market leader Hero MotoCorp recorded flat sales, TVS on the other hand witnessed a 10
percent decrease.
Manufacturing Sector Displayed Six-Month Highest Growth in December 2012: Survey
The Purchasing Managers' Index (PMI) from HSBC survey revealed on 2 January 2013
that the manufacturing activity of India increased in December 2012 to maximum in six
months. This happened because of an increase in the new orders as well as strengthened
factory output.
The survey provides a peep into the sector of manufacturing ranging from jobs to output. The
survey showed that the manufacturing activity increased from 53.7 in November 2012 to 54.7
in December 2012.
The parameter for measuring is a figure of 50 points. The sector showing figure more than 50
points displays growth while that below 50 points indicates contraction. The chief economist
of HSBC described that the manufacturing sector gained pace because of upstick in the new
orders as well as faster growth of output.
An increase in the manufacturing activity of India indicated a positive sign for the economy
as well.
RBI set up Working Group to review Banking Ombudsman Scheme
The Reserve Bank of India in the month of January 2013 had set up a working group to
evaluate and make improvements in the grievance redressal mechanism for bank customers.
The working group constituted in the Reserve Bank of India is going to review, update, and
revise the Banking Ombudsman Scheme, 2006.
As per the RBI annual report of the Banking Ombudsman Scheme 2011-12, In Financial Year
2011-12, the banking ombudsmans office of the RBI received around 72889 complaints. It
disposed off 94 per cent of the customer complaints, About one-fourth of the total customer
complaints were about banks failure to meet commitments and non-observance of fair
practices code.
Also, it was seen that the Banking Ombudsman received 14492 card-related complaints in the
reporting year. Unsolicited cards and charging of annual fee in spite of being offered free
card formed the basis of some of the complaints against the banks.
The Union Government on 10 January 2013 approved 10 per cent stake sale in Engineers
India Ltd (EIL), which is supposed to bring back a sum of around 800 crore Rupees to the
government.
The stake is going to take place this fiscal, April 2012 to March 2013 and is approved by
Cabinet Committee on Economic Affairs (CCEA).
At present 80.40 Percent of Stake in EIL is held by the Government. Earlier in 2010
Government divested 10 per cent stake through an FPO in EIL, a leader in engineering
consultancy.
For the July-September quarter of the current fiscal, April 2012 to March 2013, EIL reported
net profit of 161.24 crore of rupees up 10 per cent over the same period in 2011-12.
The government has proposed to raise 3000 crore rupees. by way of disinvestment in 201213.
So far this fiscal, the government has been able to realise just over 6900 crore rupees through
stake sale in PSUs. Further stake sale in Oil India and NTPC is lined up for January and
February 2013.
RBI: Private Sector of India registered a Net Profit of 4.3 percent in First Half of 2012-13
The data released from the Reserve Bank of India on 9 January 2013 reported that the Private
Corporate Sector of India registered a net profit of 91800 crore rupees in the first half of
2012-13 (April to September), which is 4.3 percent higher than the one reported in the first
half of the 2011-2012.
In terms of growth in Sales on the basis of the financial results of 2832 listed non-financial
and non-government companies in the first half of the current fiscal the companies grew by
12.3 percent, which is equivalent to 14.34 lakh crore. The details of the report states that the
operating profit (EBITDA) of these companies has gone up by 4.9 percent to 1.88 lakh crore
rupees.
The report states that with a net profit margin of 17 percent, the performance of the
Information Technology (IT) sector was better, when compared with the manufacturing and
non-IT service sectors. The net profit margin of the non-IT service sector and manufacturing
sector were 4.9 percent and 5.7 percent respectively. The manufacturing companies show a
rise in its net profit by 2.4 percent, which is equivalent to 61200 crore rupees and the non-IT
companies dropped down by 3.9 percent, from the one recorded previous year.
The companies involved in computer and activities related to it show a rise in net profit of
18.6 percent that is equivalent to 18200 crore rupees. The financial companies registered a
net profit of 27.3 percent that was equivalent to 8500 crore rupees, when compared to
previous year profit.
Union Cabinet approved 12517 crore Rupees of Capital Infusion in 10 PSU Banks
The Union Cabinet on10 January 2013 approved a proposal of infusing 12517 crores rupees
in public sector banks so that bank could enhance the lending activity and meet the capital
adequacy norms.
As per the Finance Minister P Chidambaram about 9-10 public sector banks are going to be
benefitted from the capital infusion programme. Also, the name of the banks, the amount for
each bank and terms of the conditions will be decided in consultation with them at the time of
infusion.
The government is supposed to Provide capital funds to PSBs during the year 2012-13 to the
tune of 12517 crore to maintain their Tier-l CRAR (capital to risk-weighted assets ratio) at
comfortable level.
The need for that is to make the PSU remain obedient with the stricter capital adequacy
norms under BASEL-III as well as to support internationally active PSBs for their national
and international banking operations undertaken through their subsidiaries and associates.
In principle approval of the Cabinet is accorded for need based additional capital infusion in
PSBs from the year 2013-14 to 2018-19 for ensuring compliance to Capital Adequacy norms
under Basel- III.
Benefits of the Capital Infusion in Banks
The capital investment will ensure fulfillment to the regulatory norms on capital adequacy
and will cater to the credit needs of productive sectors of the economy as well as to withstand
the impact of stress in the economy.
It will support national and international banking operations of PSBs and will boost the
confidence of investors and market sentiments.
The infusion of. 12517 crore rupees in the equity capital of PSBs would enable them to
expand their credit growth.
This additional availability of credit will cater to the credit needs of our economy and will
also benefit employment oriented sectors, especially agriculture, micro and small enterprises,
export, entrepreneurs etc. in promotion of their economic activities which would, in turn,
contribute substantially to the growth of the economy.
The Government is committed in making all the PSBs financially sound and healthy so as to
ensure that the growing credit needs of our economy are adequately met. To meet the credit
requirement of the economy, banks would require capital funds commensurate to the increase
in their Risk Weighted Assets (RWAs).
The government earlier had infused about 20117 crore rupees in public sector banks during
2010-11, and 12000 crore rupees in 2011-12.
Sensex Crossed Crucial 20000 Mark after Two Years
The Bombay Stock Exchange Sensex for second time in a row on 15 January 2013 touched 2years high. The shares remained supported inspite of governments delayed implementation
of the controversial rules related to tax avoidance.
However, till the time the RBI reviews the policy on 29 January 2013, analysts are expecting
that the earnings would remain crucial catalysts for the Indian shares, as the investors would
look for the signs of profit improvement in 2013. Analysts predicted that in the fiscal year
2013-14, the Sensex EPS would grow by 13-14 percent.
The BSE Sensex closed at 0.4 percent or 80.41 points at 19986.82 on 15 January 2013, which
is the highest since 6 January 2011. Earlier it had touched the crucial 20000 level as well.
The Nifty, on the other hand, increased to 0.54 percent or 32.55 points, ending at 6056.60,
closing more than 6000 for the second consecutive day.
Shares of the important companies such as ITC, Axis Bank, TCS and Bharti Airtel also
increased.
Krishi Karman Awards for the year 2011-2012 presented by the President of India
The President of India, Pranab Mukherjee on 15 January 2013 presented the Krishi Karman
Awards for the year 2011-2012 at an award ceremony at the Rashtrapati Bhavan. The awards
were presented to the State Governments for their excellent performance in increasing the
production of food grains in their respective states.
Awards in different segments
Awards
Sates
Ten states namely Punjab, Uttarakhand, Assam, West Bengal, Tripura, Rajasthan, Gujarat,
Arunachal Pradesh, Mizoram and Himachal Pradesh were presented commendation awards.
From the eight awards winning states, for the first time one male and one female farmer were
also awarded for their outstanding performance.
In last
years
Five
years
2.
Punjab
In last
years
Five
years
1. Tamil
82.63
Nadu
41
(2006-07)
2. Gujarat 83.42
90. 8.68
66
(2010-11)
3. Uttarakh 18.16
18. 2.06
and
53
(2010-11)
(2006- 7
07)
1841 194
2
(201011)
In last
years
Five
years
1.
Manipur
2.
Nagalan
4.22
5.14
(2008-09)
(2008- 2
09)
3.
Arunach
3.09 3.34
al
Pradesh (2009-10)
6.95
4.
Tripura
6.479 7.12
4
(2009-10)
0.94
5.
Mizora
m
0.624 0.66
8
(2009-10)
Rice
Previous 2011-12
Highest
Previo 2011
us -12
increa
se Highes
t
in last
Five
In last
years
Five
%
increa
se
years
1 Bih
. ar
55.9
72.01
(200809)
(200809)
Wheat
Previou 2011-12
s
Previo 201
us 1-12
increa
se Highe
st
Highest
%
increa
se
in last
In last
Five
Five
years
years
1 Haryan 116.30
. a
(201011)
2 Himac
. hal
Prades
h
5.473
(200809)
126.84
Pulses
Previou 2011-12
s
Highest
Previo 201 %
us
112
increa
increa
se Highe
se
st
in last
In last
Five
Five
years
years
1 Jharkha 3.296
. nd
(201011)
2 Assam
.
0.701
4.923
1.08 54.06
(201011)
3 West
. Bengal
1.761
1.878 6.63
(201011)
Coarse Cereals
Previous 2011-12
Highest
in last
Previo 201
us 1-12
increa
se Highes
t
%
increa
se
Five
In last
years
Five
years
1 Uttar 32.18
. Prade
sh
(201011)
35.49
The implementation of General Anti Avoidance Rules (GAAR) was deferred by two years by
the government of India. It will now come into force from 1 April 2016. Earlier, the
provisions of GAAR were to be implemented from 1 April 2014. GAAR will not apply to
those Foreign Institutions Investors, FIIs who are not taking any benefit under an agreement
under the Income Tax Act. Besides, it will also not apply to non-resident investors in FIIs.
The Parthasarathi Shome Committee in its final report submitted to Finance ministry on 30
September 2012 had suggested that GAAR should be deferred by three years. The report was
made public on 14 January 2013. Union Government accepted major recommendations of the
Shome Committee with some modifications. Shome Committee was set up by Prime Minister
Manmohan Singh in July 2012 to address the issue of GAAR.
The World Bank on 15 January 2013 projected that the world economy would expand 2.4
percent in 2013, little higher than the 2.3 percent achieved in 2012. In June 2012, the Bank
forecasted the growth up to 3 percent, but due to the slow growth rate, high unemployment
rate and less confidence in businesses across the developing nations it managed to revise the
forecast earlier made.
The World Bank has reduced the projected growth rate of different countries. It has slashed
the growth rate of Japan to its half from the one projected earlier and in case of US the
growth rate has been slashed by 0.5 percent points. The bank also projected narrowing in the
growth rate of the Euro Region. For emerging markets of Mexico, Brazil and India also the
projection was lowered.
The report from the lead author of the Banks Global Economic Prospects Andrew Burns
describes that the predicted recoveries of the bank in 2012 would be carried forward towards
the end of the first quarter and second quarter of 2013.
The bank report also has claimed that the ongoing political battle in United States for raising
the borrowing limit and spending cuts by the Government would bring loss of confidence in
the rate of dollar creating an alarming situation for the world financial market and effect the
growth rate. It also pointed out the diplomatic tensions between China and Japan would also
have an impact on the growth rate.
Union Government Imposed 2.5 Percent Import Duty on Crude Edible Oil
Union government on 17 January 2013 imposed a 2.5 per cent import duty on crude edible oil
with keeping the duties unchanged on refined cooking oil fearing a hike in retail prices.
The decision was taken at the meeting of Cabinet Committee on Economic Affairs (CCEA) in
New Delhi with a view to protect domestic farmers. The Agriculture Ministry had proposed
an increase in the duty on crude edible oil to protect the interest of palm growers, particularly
from Andhra Pradesh.
Presently there is no import duty for crude edible oil but refined edible oil attracts an import
duty of 7.5 per cent India imports about half of the total domestic requirement of cooking oil.
In 2011-12 oil years (November-October), the total import of vegetable oils (edible and nonedible oil) was at an all-time high of 10.19 million tonnes. In the first two months of the
current oil year, imports were up 5 per cent.
The Agriculture Ministry sought for 7.5 per cent import duty on crude edible oil and 15 per
cent on refined oil. But during the inter-ministerial meeting, the finance ministry felt such a
sharp rise would lead to rise in inflation.
There is zero duty on crude edible oil and 7.5 per cent on refined edible oils. India imports
over 50 per cent of its domestic demand. In 2011-12 oil years, the country imported a record
10.19 million tonnes of vegetable oils.
Supreme Court of India ended the Tax Exemption of Cookie Man under SSI Notification
The Supreme Court of India on 14 January 2013 ended the tax benefit from the Australian
Foods India Private Limited, makers of Cookie Man cookies with a claim that branded goods
cannot claim excise exemption that is designed for small-scale industry, even in case those
are sold loose and without packaging.
The Australian cookie making company claimed the benefits of excise duty on the cookies
sold by its retail stores across the nation without any brand name or packaging.
The two judge bench of the Supreme Court comprising Justices DK Jain and JS Khehar heard
the appeal from the revenue department against the decision of the tax-tribunal for granting
the Australian company the excise exemption. The two judge bench in its decision of review
stated that Physical Branding of any product is not necessary to prove that it was a branded
product, as the product in itself shows its association with the brand name and thus it cant
take the benefits of the SSI (small scale industry) notification.
The Revenue Department went to the Supreme Court to challenge the orders of the CEGAT
(Customs, Excise and Service Tax Appellate Tribunal) against the excise exemption offered
to the Australian Cookie making company.
Union Government raised LPG Cap to Nine Subsidised Cylinders per Year
The Union government on 17 January 2013 hiked the cap on subsidised LPG cylinders from
6 to 9. The move will be effective from April 2013. The Government had also allowed oil
companies to hike diesel prices by a small quantum periodically.
With the implication of raised cap the Consumers will be getting a quota of five subsidised
cylinders between September 2012 and March 2013 and from 1 April 2013, they will be
entitled to get nine cylinders per annum.
It was also decided in the meeting on Cabinet Committee on Political Affairs (CCPA) that
there will be no change in LPG and kerosene rates. With this, the Election Commission has
granted no objection to government's proposal for raising cap on LPG gas quota.
Subsidised LPG costs 410.50 rupees per 14.2-kg cylinder and any household requirement
beyond current cap of 6 cylinders is to be bought at a price of 895.50 rupees per cylinder.
The finance ministry is keen to reduce the subsidy burden. Oil companies have estimated that
if they had sold fuel at international rates they would have gained additional revenue of 1.63
Union Government on 17 January 2013 lifted ban on exports of processed foods and value
added agricultural products in order to facilitate uninterrupted supply.
The uninterrupted export of such processed food products is projected to be regulated by
duty. The list of exportable goods includes processed foods from agricultural commodities,
such as wheat, rice, onion and milk.
Benefits of Lifting of Ban
The lifting of Ban is supposed to give a push to Indias weak merchandise exports and is
estimated to add 5 billion dollar to exports over the next two year with West Asia identified as
a key market for processed food from India.
It will help Indian exporters to move up the value chain as well as create additional
employment in the country.
An always open policy of this sector will not only help reduce wastage of perishable
products but also encourage value addition.
Exports of processed or value-added products constitute a very small portion of overall
exports and hence, their continuation would not affect the availability in the domestic market
owing to very marginal processing capacity in the country.
It was seen that Exports of agricultural and processed foods have almost doubled to around
86018 crore rupees in 2012-13 from 43727 crore rupees in 2011-12.
Presently the major agricultural exports of India are that of raw or primary produce and
unprocessed or semi processed agriculture commodities, which are vulnerable to restrictions
attributing to various reasons such as bad weather conditions, deficient or delayed rainfall and
food security issue.
The Government opened up export of rice and wheat since September 2011 and has emerged
a large exporter of these commodities since then.
MTNL launched its Video Telephony Service in Delhi and Mumbai
Government Telecom Service Provider MTNL on 17 January 2013 launched its video
telephony service in Delhi and Mumbai, the first by any service provider in these two cities.
This service will change the way people communicate with each other without travelling and
will improve their quality of life in many ways.
The service is ideal for communication and applications like tele-medicine, tele-education
and e-governance adding that the service would save time, and cost and improve productivity.
Our correspondent reports that using this service, calls can be made within India on
MTNL/BSNL HD-Voice and video telephony network and the video call charges would be
2.50 rupees per minute.
CCEA approved Defreeze in the Tariff Value of Edible Oils as per International Market
The Cabinet Committee of Economic Affairs on 17 January 2013 approved the de-freezing of
the tariff values of the all types of edible oils and notified that the tariffs of these oils would
be decided on the basis of the existing international prices in the market.
Oils that would suffer the effect of this decision are Soyabean Oil Crude Palm Oil - RBD
(Refined Bleached Deoderized), Palm Oil Crude, Palmolein Crude, Palm Oil others and
Palmolein others.
The decision would bring an advantage to the domestic refining industry because of the
impact that the imports of the edible oils will do on the collected duty.
Background
Under Section 14 (2) of the Customs Act 1962 the tariff value is fixed on the edible oils
mentioned would be notified fortnightly. The tariff value of the edible oils remained
unchanged since 31 July 2006 as a result of fiscal measures to control inflation. This halt in
increase in the tariff value have created a great difference between the notified tariff and the
computed landed prices following the price of edible oils in the international market. This
halt had an adverse impact on the domestic refining industry as well as the revenue
collection.
Union Cabinet Approved 50 Percent Reduction in the Reserve Prices for CDMA Spectrum
The Union Government on 17 January 2013 approved a 50 per cent reduction in the reserve
price of spectrum used by CDMA mobile operators.
Spectrum auction, for both GSM and CDMA, is supposed to be completed by 31 March 2013
and thereafter the markets will decide how much revenue the government will get.
With the reduction of reserve price to 50 percent pan-India 5MHz of 800 MHz spectrum
(CDMA radio waves) will now cost 9100 crore rupees.
It was witnessed that auction of CDMA spectrum that took place in November 2012 did not
attract bidders due to high reserve price. The reserve price set was 11 times higher than what
operators paid in 2008.
Earlier CDMA spectrum price fixed by government was priced at 1.3 times more than the
GSM spectrum in 1800 Mhz band.
The Cabinet has already approved a 30 per cent cut in the reserve price of 1,800 MHz band
spectrum used for offering GSM services.
The Supreme Court has recently allowed the companies whose licences were cancelled to
continue operations till 4 February 2013 when the government is supposed to inform it of the
final reserve or minimum price for the spectrum sale.
Union Government of India increased Import Duty on Gold and Platinum by 2 Percent
The Union Government of India on 21 January 2013 hiked the import duty on Gold and
Platinum from 4 percent to 6 percent. The step of the Government came in effect to control
the import of the precious metals leading a widening gap in the Current Account Deficit of
the country as the import of gold has shown tumbling effects on different economic fronts
and has also played a major role in distortion of the balance of trade.
The Government has also linked the Gold ETFs (Exchange Traded Funds) along with the
Gold Deposit Schemes, so that the supply of the physical gold in the market can be increased.
These regulations and increased in the import duty would also show changes on the customs
duty as well as the excise duty of gold ores, refined gold, gold dore bars and more.
Within a year, the import duty on gold has been hiked for third time. Before this, the
government increased the duty on import of gold from 1 percent to 2 percent in January 2012
and it doubled the import duty on standard gold from 2 percent to 4 percent in March 2012.
Railways decided to undertake a Cleanliness Drive across the Country
The Railways on 22 January 2013 decided to undertake a cleanliness drive at about 100
important stations across the country and equip maximum number of coaches with bio-toilets.
Such stations will be having more than 10 lakh population and of religious and tourists
importance. The decision was taken during the Consultative Committee meeting in New
Delhi. The stations have been identified for taking up cleanliness drive in the first phase.
The agenda of the meeting was Railways ongoing projects.
IMF forecasted Indian Economic Growth Rate to be 5.9 percent in 2013
The International Monetary Fund (IMF) on 23 January 2013 projected that the
economic growth rate of India in 2013 would be 5.9 percent. The IMF also
projected an increased growth rate of 6.4 percent for 2014 looking forward
towards the gradual strengthening of the global expansion in Indias context.
In its update at the World Economic Forum (WEO), the IMF also forecasted that
the global economic growth rate would be 3.5 percent, little higher than the 3.2
percent estimated earlier. As per the report of IMF, uncertainty in policy making
and supply bottlenecks were one of the most visible causes that hampered the
growth aspects of the economies like India and Brazil. It also stated that the
scopes of easing the policy to any further extent have also gone down in these
countries.
About International Monetary Fund (IMF)
The International Monetary Fund (IMF) is an organization of 188 countries that
works for fostering the global monetary cooperation, promote high employment
and sustainable economic growth, facilitate international trade, secure financial
stability and reduce poverty around the world. Since the end of World War II, the
IMF had been playing a major role in shaping the global economy. The IMF has
played a part in shaping the global economy.
FDI Inflow Decreased to Two-Year Low in November 2012
The inflow of foreign direct investment (FDI) in India decreased to around 2-year low at 1.05
billion US dollar in November 2012 because of uncertainties of the global economies. Back
in November 2011, the FDI was worth 2.53 billion US dollar.
The Department of Industrial Policy and Promotion (DIPP) announced that from AprilNovember period 2012-13, inflows of FDI decreased by around 31 percent to 15.84 billion
US dollar from 22.83 billion US dollar in 2011-12.
The reason why inflow of FDI decreased was because of the issues arising in the global
economic scenario. Economic slowdown as well as absence of political consensus on FDIassociated issues are the main causes of decline in FDI inflow.
During 2012-2013, the sectors which remained on the positive side of the FDI inflows
included services, hotel and tourism, metallurgical, construction and automobile.
In India, maximum FDI inflow came from Mauritius (USD 7.2 billion), Japan (USD 1.56
billion), Singapore (USD 1.5 billion) the Netherlands (USD 1.09 billion) and the UK (USD
615 million).
The FDI declined to a low level earlier in January 2011 when the inflow was recorded to be
1.04 billion dollar.
Foreign direct investments play a very crucial role in Indias economy. India has a
requirement of FDI inflow of around 1 trillion US dollar in next 5 years time so that it can
refurbish infrastructure sectors like highways, airports and ports. Decrease in the FDI inflow
will pressurise the balance of payment of the country, while also impacting the Rupee.
Union Commerce Ministry claimed that India has crossed One Billion Mark in Tea Production
The Union Commerce Ministry of India in the third week of January 2013 released figures
and it mentioned that tea-industry in India had passed the one billion kilogram mark
production. This target has been crossed by the participation of the small tea-growers.
To bring into net and check out the production of tea in the nation the industry regulator, Tea
Board of India launched a major exercise in which it tried to rope producers from both
organised and unorganized sectors of India, these producers also included those who never
reported the crop statistics at their end.
The exercise was taken up in 2012 and it helped in bringing up the fact that India was able to
produce 75 million kilogram more tea than the 988 million kilogram, estimated earlier in a
year from January 2011 to December 2011. By November 2012, it was reported that 1023.9
million kilogram of tea crop was crossed following the figures of the field level data.
Securities and Exchange Board of India revised the Mechanism of Offer for Sale
The Securities and Exchange Board of India (SEBI) on 25 January 2013 revised the
mechanism of the Offer for Sale (OFS). The board took the decision of revising the norms
because the deadline for the promoters of the listed companies to offload their stake for
meeting the minimum public shareholding norm of 25 percent by June 2013 is approaching.
These revisions would make the norms much more efficient, transparent and economical. The
quantity for cumulative bidding would be made available online for the market across the
trading session at different intervals to take care of the orders that carries 100 percent upfront
margin and also of the orders which have been placed without the upfront margin. The
indicative price of the market would be disclosed for the market across the trading session
and is calculated on the basis of bids and orders.
Mode of Payments
For institutional investors their exists an option of paying the upfront margin in cash or
without margin is available
The non-institutional investors it is mandatory to pay in cash the 100 percent of upfront
margin
Facilities available
The upfront margin paid by both the institutional and non-institutional investors can be
cancelled or modified up to 100 percent even during the trading hours
Institutional investors would not be able to modify or cancel their orders until they pay their
upfront margin but they can make upward revision of the price or quantity
said the number is expected to widen in third quarter,beyond the 5.4 percent in the preceding
quarter.
RBI praised government's recent reform measures including liberalisation of FDI in retail,
deferment of GAAR and progressive deregulation of fuel prices saying these actions will help
engender stable macroeconomic conditions and return the economy to its high growth
trajectory.
The RBI will come out with mid-quarter review on 19 March 2013 and the annual policy on
3 May 2013.
Union Ministry for Commerce launched eBiz Portal to Provide one Stop
Shop for all Investment
The Union Minister for Commerce on 28 January 2013 launched an eBiz
portal at the CII Partnership Summit in Agra . The portal is Indias
Government-to-Business (G2B) portal developed by Infosys in a Public Private
Partnership (PPP) Model. This Mission Mode Project will mark a paradigm shift in
the Governments approach to providing Government-to-Business (G2B) services
for Indias investor and business communities.
In order to enable businesses and investors to save time and costs and in order
to improve the business environment in the country, an online single window was
conceptualised in the form of the eBiz Mission Mode Project under the National eGovernance Plan. The project aims to create a business and investor friendly
ecosystem in India by making all business and investment related regulatory
services across Central, State and local governments available on a single portal,
thereby obviating the need for an investor or a business to visit multiple offices
or a plethora of websites.
The core value of the transformational project lies in a shift in the Governments
service delivery approach from being department-centric to customer-centric. EBiz will create a 24x7 facility for information and services and will also offer
joined-up services where a single application submitted by a customer, for a
number of permissions, clearances, approvals and registrations, will be routed
automatically across multiple governmental agencies in a logical manner. An
inbuilt payment gateway will also add value by allowing all payments to be
collected at one point and then apportioned, split and routed to the respective
heads of account of Central and State agencies along with generation of challans
and MIS reports. This payment gateway is the first of its kind designed in India
and can become a universal payment gateway for all e-Governance applications.
The Department of Industrial Promotion & Policy, Ministry of Commerce &
Industry, Government of India, is the Nodal Government Agency responsible for
the implementation of the eBiz Project. Infosys Technologies Ltd. has been
selected as the Concessionaire/ Project Implementation Partner and is
responsible for the design, development, implementation and maintenance of
years.
The net profit should be over 5000 crore Rupees during past three years.
At present, there are seven Maharatna companies, after inclusion of BHEL and
GAIL and these companies are - ONGC, Indian Oil, SAIL, NTPC and CIL. Also, there
are 14 Navratna companies, including Rashtriya Ispat Nigam Limited and NMDC.
ED Slapped 98.5 Crore Rupees Penalty Notice on Rajasthan Royals
The Enforcement Directorate (ED) slapped the IPL team Rajasthan Royals with a
penalty notice of around 100 crore Rupees for violating the Forex laws. ED issued
this penalty notice after investigating the matter for 2 years under the Foreign
Exchange Management Act (FEMA). Three notices in all were sent across to the
IPL franchise which totaled to 98.5 crore Rupees.
The Jaipur IPL Cricket Private Limited (JIPL) as well as its directors was sent a
penalty notice of 50 crore Rupees. Apart from this, 34 crore Rupees penalty
notice was issued against EM Sporting Holding, Mauritius and its directors for
evading the Forex duties. A notice of 14.5 crore Rupees was also issued
additionally against the Ms ND Investments, United Kingdom and its directors.
All these three parties are free to appeal against the penalty order in appellate
authority of FEMA. According to the order, IPL team needs to make the payment
in 45 days.
This is said to be the first biggest order against any team issued by the ED.
According to the penalty order, it was found that the foreign investment in JIPL
was conducted in flagrant contravention of FEMA.
The first penalty order was issued by ED against the Rajasthan Royals in mid2011. Now, it issued the final orders after it moved to FEMA Adjudicating
Authority in Delhi in order to examine investigations in the case.
CCEA gave its nod to Price Pooling Mechanism on Coal to Control Prices
of Coal
The Cabinet Committee on Economic Affairs (CCEA) on 5 February 2013 gave its
principle approval for the price pooling mechanism of coal. The mechanism
includes cost blending of the domestic coal with the imported one to
counterbalance price hike. Basic principles and parameters of the price pooling
mechanism have been identified and a specific data on the same would be
created by the Power and Coal Ministries.
The mechanism has been created before government decided to put on sale the
9.5 percent stake of the National Thermal Power Corporation (NTPC) from its
present holding of 84.50 percent. The sale of the stake was approved by the
Empowered Group of Ministers on disinvestment chaired by Finance Minister P
Chidambaram on 5 February 2013. This disinvestment of NTPC would fetch about
12000 crore rupees for the exchequer.
The total goods earnings have gone up from 56163.30 crore rupees during
1 April 2011 31st January 2012 to 70067.36 crore rupees during 1 April
2012 31 January 2013, registering an increase of 24.76 per cent.
Comfort Letter issued by Finance Ministry for sanction of 25000 crore Subsidy
The Union Finance Ministry in second week of February 2013 decided to
pay an additional cash subsidy of 25000 crore rupees for the state owned fuel
retailers. The subsidy package is being given to help the retailers in making up of
the revenue that they lost while selling cooking and auto fuel below cost in the
current fiscal year of April to December 2012. A comfort letter was issued on 7
February 2013 by the Union Finance Ministry to the Indian Oil Corp. Ltd (IOC),
Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL)
that sanctioned sanctioning 25,000 crore rupees as the part of the revenue lost
by them on selling diesel, domestic LPG and kerosene below cost or at subsidized
cost. The sanctioned subsidy meets about 44 percent of the revenue lost by the
three firms of 124854 crore rupees together on the Sale of cooking and auto
fuels in a period of April to December in 2012.
As per the latest sanctions reveled IOC, BPCL and HPCL would get 13474.56
crore rupees, 5987.25 crore rupees and 5538.19 crore rupees respectively.
India's Trade Deficit for April - January, 2012-13 was estimated at
167168.12 Million US Dollars
As per the data released by Union Ministry of Commerce and Industry on 13 February 2013,
Indias performance in export and import are as following:
EXPORTS
Exports during January, 2013 were valued at 25587.24 million US dollars. (138981.70 crore
rupees) which was 0.82 per cent higher in Dollar terms (6.67 per cent higher in Rupee terms)
than the level of 25379.05 million US dollars (130294.02 crore rupees) during January 2012.
Cumulative value of exports for the period April-January 2012 -13 was 239687.01 million US
dollars (1305420.39 rupees) as against 251930.14 million US dollars (1196962.33 crore
rupees) registering a negative growth of 4.86 per cent in Dollar terms and growth of 9.06 per
cent in Rupee terms over the same period 2011-12.
IMPORTS
Imports during January, 2013 were valued at 45583.25 million US dollars (247593.63 crore
rupees) representing a growth of 6.12 per cent in Dollar terms and 12.28 per cent in Rupee
terms over the level of imports valued at 42952.47 million US Dollars ( 220514.54 crore
rupees) in January 2012. Cumulative value of imports for the period April-January 2012-13
was 406855.13 million US dollars (2215115.46 crore rupees) as against 406820.28 million
US dollars (1934946.96 crore rupees) registering a positive growth of 0.01 per cent in Dollar
terms and growth of 14.48 per cent in Rupee terms over the same period 2011-12.
CRUDE OIL AND NON-OIL IMPORTS:
Oil imports during January, 2013 were valued at 15899.3 million US dollars which was 6.91
per cent higher than oil imports valued at 14871.2 million US Dollars in the corresponding
period last year. Oil imports during April-January, 2012-13 were valued at 140420.1 million
US dollars which was 11.56 per cent higher than the oil imports of 125874.2 million US
dollars in the corresponding period last year.Non-oil imports during January 2013 were
estimated at 29684.0 million US dollars which was 5.71 per cent higher than non-oil imports
of US 28081.3 million in January 2012. Non-oil imports during April January 2012-13 were
valued at 266435.0 million US dollars which was 5.17 per cent lower than the level of such
imports valued at 280946.1 million US dollars in April - January 201112.
TRADE BALANCE
The trade deficit for April - January 2012-13 was estimated at 167168.12 million US dollars
which was higher than the deficit of 154890.14 million US dollars during April -January
2011-12.
Exports of India Increased By 0.8 Per Cent in January 2013
The exports of India increased by 0.8 percent in the month of January 2013 to 25.58 billion
US dollars. Comparatively, exports in January 2012 were 25.37 billion US dollars.
Imports on the other hand, increased by 6.12 percent to 45.5 billion US dollars. During April
to January 2012-2013, the overseas shipments of India dropped by 4.86 percent to 239.6
billion US dollars. The main concern for the country is however to widen the trade deficit.
As a cumulative result, the exports depicted an arrest in decreasing exports. Now, the result is
-4.9 percent. Import of crude oil was growing at a faster pace. Oil imports in January 2013
increased by 6.91 percent to 15.89 billion US dollars in comparison to 14.87 billion US
dollars in January 2012.
SEBI ordered freezing of accounts and attachment of properties of two companies of
Sahara
Securities Exchange Board of India (SEBI) the stock market regulator of India on 13
February 2013 ordered freezing of bank accounts and attachment of properties of two Sahara
group firms Sahara India Real Estate Corporation Ltd., and Sahara Housing Investment
Corporation Ltd. and its Chairman Subrata Roy as well as top executives Vandana Bhargava,
Ravi Shanker Dubey and Ashok Roy Choudhary after it failed to refund more than 24,000
crore rupees to investors.
The decision from the market regulator came after the Supreme Court of India granted it the
freedom to freeze the accounts of the two companies and attach the properties of the
defaulting groups.
The market regulator gave 21 days time to Sahara Firms to submit the details of the
investments done and not listed in an order. SEBIs orders restricts the Sahara India Estate
Corporation from operating its demat accounts and redeeming the mutual fund units held by
it as well as from transferring the shares controlled by it to any other body or company.
Sahara Housing was asked to furnish details related to the development rights along with the
special puprpose vehicles as well as stakes. The orders to submit the details of movable and
immovable properties to Subrata Roy and the three executives have restrained them from
alienating, disposing or encumbering the properties on their names.
Inflation goes Down to Three Years Low to 6.62 percent in January 2013
The inflation rate of India dropped down to the three year low in the chart to 6.62 percent in
January 2013 from the 7.18 percent, measured in December 2012. The inflation was
measured based upon monthly Wholesale Price Index.
The official Wholesale Price Index for All Commodities (Base: 2004-05 = 100) in January,
2013 rose by 0.4 percent to 169.2 (Provisional) from 168.6 (Provisional) for the previous
month.
Slowing exports and decline in investments and low demand in the domestic market have
been a major factor in slipping down the growth rate of India. The two factors have affected
the manufatruing as well as service sectors of India.
The growth forecast for the running fiscal year that would end on 31 March 2013 was
lowered by the Indias Statistical Office to 5 percent. The Reserve Bank of India also changed
its forecast from 5.8 percent to 5.5 percent. To revive a fresh air in the slowing down
economic conditions of India, the Reserve Bank took a major step of lowering the key
interest rate from 8 percent to 7.75 percent; this was the first step in nine months. The Policy
makers have also taken afresh steps to revive the slowing economic conditions of the nation.
The Union Government Cancelled Bond Auction Worth 12000 Crore Rupees
The Union Government of India on 18 February 2013 cancelled the bond auctions worth
12000 crore Rupees, thereby bringing down the market borrowing programme for 2012-2013
fiscal year in order to contain fiscal deficit at 5.3 percent.
With this decision, the overall market borrowing of government in 2012-2013 fiscal year
came down to 5.58 lakh crore Rupees from 5.70 lakh crore Rupees as imagined in 2012-2013
budget. The Finance Ministry announced that after reviewing the cash position as well as the
funding requirement of the government, it was decided that market borrowing of the
Government through dated securities by 12000 crore Rupees would be reduced.
Also, the auction for these dated securities which was scheduled to be held on 22 February
2013 was cancelled. As of now, the government borrowed 3.7 lakh crore Rupees in first half
of the fiscal year which ended on 30 September 2012. This is 65 percent of the overall
planned borrowing.
The Government also gave directions to the ministries to control the non-plan expenditure
from January to March quarter.
The Reserve Bank of India on 22 February 2013 released the Guidelines
for Licensing of New Banks in the Private Sector.
The guidelines issued by the Apex Bank have opened gates for private players as
well as the finance firms to enter into the strictly regulated banking sector of
India.
The number of passenger trains has increased from 8000 in 2001 to over
12000 in 2012 - yet losses continue to mount. It is estimated to be Rs. 24000
crore in 2012-13
Proposal for setting up of Railway Tariff Regulatory Authority formulated and at
inter-ministerial consultation stage.
Supplementary charges for super fast trains, reservation fee, clerkage charge,
cancellation charge and tatkal charge marginally increased.
Complimentary card passes to Olympic medalist and Dronacharya Awardees
for Rajdhani Shatabdi Trains.
Announcement Facility and Electronic display boards in train.
Railway Minister Pawan Kumar Bansal on 27 February 2013 proposed the introduction of 67
new express trains and 26 new passenger trains. He also asserted the introduction of 22 new
lines in 2013-14.
Highlights of the new Trains announced
67 new Express trains to be introduced.
26 new passenger services, 8 DEMU (Diesel Electric Multiple Unit) services and 5 MEMU
services to be introduced.
Run of 57 trains to be extended.
Frequency of 24 trains to be increased.
Metropolitan Projects/Sub-urban Services
Introduction of first AC EMU rake on Mumbai suburban network in2013-14.
Introduction of 72 additional services in Mumbai and 18 in Kolkata.
Rake length increased from 9 cars to 12 cars for 80 services in Kolkata and 30 services in
Chennai.
State wise break up of new Trains announced
Karnataka gets 3 new lines, 8 express trains
Goa gets 3 New Express trains
Andhra Pradesh got 8 New Trains
13 New Trains for UP, 7 out of which went to Lucknow Only
Region Wise Break up of New Train Announced
Eight new express trains, 11 originating trains and eight pass-through trains, six extension
trains apart from 20 new lines and doubling projects fell in South Central Rail-ways kitty in
the Railway Budget announced.
As per the budget, Central Railway (CR) and Western Railway (WR) will get a total of 17
new mail/express trains, of which 14 trains will serve either the city or state passengers.
Further, 72 additional services of local trains, augmentation of AC local trains at WR, have
also been announced.
Union Railway Minister Pawan Kumar Bansal presented the Union Railway Budget for
2013-14 in Lok Sabha on 26 February 2013. Some of the major Initiative proposed in
Railway Budget 2013-14 are as under:
Anubhuti
Indian Railways will introduce one coach in select trains which will provide an excellent
ambience and latest modern facilities and services responding to the Increased Popularity of
Shatabdi and Rajdhani Trains. Such coaches will be named Anubhuti with commensurate fare
structures.
Amenities for Differently-abled Passengers
To facilitate the boarding of trains and exit from the stations for the differently-abled and
the elderly, there is a proposed provision of 179 escalators and 400 lifts at A- 1 and other
major stations, affixing Braille stickers indicating the layout of coaches including toilets,
provision of wheel chairs and battery operated vehicles at more stations and making coaches
wheel-chair friendly.
In order to provide an employment avenue to the disabled people, there is proposal to
reserve a specified number of Jan Sadharan Ticket Booking Sewak (JTBS) for them, keeping
in view the fact that the PCOs at stations have become largely redundant after the mobile
revolution in India.
IT Initiatives for passenger benefits
There will be now Use of Aadhar scheme by Indian Railways. The database generated, can
be extensively and efficiently used by railways not only to render more user friendly services
such as booking of tickets, validation of genuine passengers with GPS enabled handheld
gadgets in trains, but also to provide a better interface with its employees in regard to their
salaries, pension, allowances etc.
Some of the other measures proposed under IT Initiative of Railways are:
Extending availability of the facility of internet ticketing from 0030 hours to 2330 hours
Making e-ticketing possible through mobile phones as a follow up to overwhelming
response to IR website and Integrated Train Enquiry Service under 139, a project of SMS
Alerts to passengers providing updates on reservation status is being rolled out shortly.
Covering larger number of trains under Real Time Information System (RTIS), whereby
rail-users will be able to access information through nominated websites and mobile phones.
Some measures taken to curb malpractices in reserved tickets including Tatkal are:
Mandatory carrying of ID cards by passengers with reserved tickets
Rigorous drive leading to prosecution of more than 1800 touts in the current year
In case of tatkal, reduction of advance reservation period to one day, issue of tickets only
on production of ID proof at PRS counters, issue of only one tatkal ticket per train per day to
web service agents;
Denial of access to agents to internet booking between 0800 to 1000 hrs.
Other Major Initiatives
A Centralised Catering Services Monitoring Cell with a Toll free number 1800 111 321
has started functioning w.e.f. 18th January, 2013 to facilitate redressal of
complaints/suggestions on real-time basis.
For effective quality control, arrangements are being tied up with food testing laboratories
in addition to third party audit. State-of the- art base kitchens are proposed to be set up in
railway premises for better monitoring of quality of meals.
ISO certification will now be insisted upon for all base-kitchens.
Green Energy Initiatives
Some of the new steps that have been taken or are proposed to be taken include: Setting up of Railway Energy Management Company (REMC) to harness potential of solar
and wind energy
Setting up of 75 MW windmill plants and energizing 1000 level crossings with solar power
Deployment of new generation energy efficient electric locomotives and electrical multiple
units (EMUs) saving about 60 crore units in 2011-12. Railways have also won the National
Energy Conservation Award
Encourage more usage of agro-based and recycled paper and ban use of plastic in catering.
Union Railway Minister Pawan Kumar Bansal presented the Union Railway Budget
for 2013-14 in Lok Sabha on 26 February 2013. Some of the New Plans and
Schemes proposed in Railway Budget 2013-14 are as under:
Proposal for setting up of Railway Tariff Regulatory Authority formulated and at
inter-ministerial consultation stage.
To provide a memorable experience to the visitors especially the children, a
revamp plan will be rolled out for National Railway Museum in 2013-14.
To create a corpus for meeting IRs committed liabilities for debt servicing of
JICA and World Bank loans taken for the DFC Project, it is proposed to set up a
new Debt Service Fund.
In order to meet the growing demand, 72 additional services in Mumbai and 18
in Kolkata are being introduced. Besides, rake length is being increased from 9
cars to 12 cars for 80 services in Kolkata and 30 services in Chennai.
A target to complete 500 km of new lines has been set for 2013-14.
There is target to convert 450 km of MG/NG lines to broad gauge during 201314.
Announcement of resumption of work on new line projects of Chickmagalur Sakleshpur and Bengaluru - Satyamangalam, which were pending for want of
resources and other mandatory clearances, after State Government of Karnataka
agreed to give land free of cost and bear 50% of the cost.
Agricultural Credit
Agricultural credit for 2012-13, which was 575000 crore Rupees was increased. A
target of 700000 crore farm credit was fixed for 2013-14 fiscal year.
Interest Subvention Scheme
The Interest Subvention Scheme for short-term crop loans would be continued for
loans by the Cooperative Banks, RRBs, public sector banks and will also be
expanded to private scheduled commercial banks. Under this scheme, any
farmer who pays back the loan on time would get credit at 4 percent annually.
National Livestock Mission
Apart from this, 307 crore Rupees was set aside for National Livestock Mission in
order to attract investment and enhance livestock productivity. A sub-mission of
this National Livestock Mission was also started for increasing the availability of
feed and fodder.
The Union Finance Minister announced the possibility of National Food Security
Bill to be passed by the Parliament and 10000 crore Rupees was set aside for
incremental cost which would occur under the Act.
In the Union Budget 2013-14, the Union Finance minister P. Chidambaram
assigned new proposals and plans. The plans and proposals as announced by the
Finance Minister are as follows:
Plans for seven new cities
Plans for seven new cities were finalized for industrial corridors and work on two
new smart industrial cities at Dholera (Gujarat) and Shendra Bidkin
(Maharashtra) will begin during 2013-14 financial year. Also, an all-inclusive plan
was under preparation for Chennai Bengaluru industrial corridor. Preparatory
work for next corridor - Bengaluru Mumbai industrial corridor was started.
Two new ports to be established in West Bengal and Andhra Pradesh
The plan for establishing two new ports in Sagar (West Bengal) and in Andhra
Pradesh was under way. Apart from this, a new outer harbour will be developed
in the VOC port at Thoothukkudi (Tamil Nadu) through PPP at an estimated cost
of 7500 crore Rupees.
Power transmission system
A power transmission system was also planned to be constructed from Srinagar
to Leh. An amount of 226 crore Rupees was provided in 2013-14 financial year
for this.
The oil and gas exploration policy
It was decided in the Union Budget 2013-14 that the oil and gas exploration
policy shall be reviewed to move from profit sharing to revenue sharing
contracts. The Finance Minister announced that the policy for encouraging the
exploration as well as production of shale gas will be announced. The natural gas
pricing policy will be reviewed and uncertainties regarding pricing will be
removed.
Support to Micro, Small and Medium Enterprises (MSMEs)
In order to facilitate assistance to the Micro, Small and Medium Enterprises
(MSMEs), the refinancing capability of SIDBI was proposed to be enhanced from
5000 crore Rupees to 10000 crore Rupees. Additionally, it was proposed that
SIDBI would be provided an amount of 500 crore Rupees for setting up the Credit
Guarantee Fund for factoring.
Apparel Parks to be set up
It was also proposed that apparel parks shall be set up within the Integrated
Textile Parks. These apparel parks will house the apparel manufacturing units. A
scheme called Integrated Processing Developing Scheme was initiated to address
to environmental concerns of the textile industry. Term loans as well as the
working capital to handloom sector will be made available at the concessional
interest of 6 percent. This in turn will forward the benefit to 1.5 lakh weavers as
well as 1800 primary co-operative societies.
n the Union Budget 2013-14, which was tabled in the Lok Sabha on 28 February
2013 by the Union Finance Minister P. Chidambaram, announcements were made
for the social sector, with focus primarily on women, poor and youth. The Finance
Minister laid emphasis on the safety and security of the women and declared
that various initiatives were underway as well as many more were taken by the
government along with the non-governmental organisations.
Various Schemes and Proposals Announced for the Social Sector are as
follows:
Eligibility conditions of life insurance policies for persons suffering from
disabilities and certain ailments relaxed
The Union Budget 2013-14 proposed relaxation in the eligibility conditions of Life
Insurance Policies for persons suffering from disability or certain ailment. The
Finance Minister proposed an increase in the permissible premium rate
from 10 percent to 15 percent. The relaxation will be made available on or
after 1 April 2013.
INCOME In
RUPEES
WORKING MEN
Old Tax
New Tax
Old Tax
New Tax
2 Lakh
5 Lakh
30900
28840
30900
28840
25750
23690
8 Lakh
92700
92700
92700
92700
87550
87550
10 Lakh
133900
133900
133900 133900
128750
128750
25 Lakh
597400
597400
597400 597400
592250
592250
50 Lakh
1369900 1369900
1369900 1369900
1364750
1364750
100 Lakh
2914900 2914900
2914900 2914900
2909750
2909750
110 Lakh
3223900 3546290
3223900 3546290
3218750
3540625
In the Union Budget 2013-14, which was tabled in the Lok Sabha on 28 February 2013 by the
Union Finance Minister P. Chidambaram, there is a hike of 14% on Defence Budget over the
last year 2012-13, thus promising more funds required for national security.
Some of the prominent features of the defence budget 2013-14 are as under:
The Revenue expenditure budget increase for defence is relatively less than the overall NonPlan Revenue expenditure budget growth between RE 2012-13 and BE 2013-14;
Gross Revenue budget for Navy declined from 12748 crore rupees in BE 2012-13 to 12394
crore rupees in BE 2013-14 (there are reductions under salaries, transportation and
miscellaneous heads while there are negligible increases for repairs & re-fitment works and
in respect of Coast Guard);
Capital budget support for the Indian Coast Guard will be less in 2013-14 740 crore rupees
in BE 2013-14 vis--vis. 899 crore rupees in BE 2012-13;
The value of supplies of stores (not classified as Capital assets) from Ordnance factories to
the Services will only marginally increase from 11213 crore rupees as per BE 2012-13 to
12141crore rupees provided in BE 2013-14;
Ex-Servicemen Contributory Health Scheme (ECHS) a welfare oriented organisation for
ex-Servicemen and their dependants in the defence set-up has been allocated less budget
(Capital and Revenue taken together) for the next year as compared to the actual expenditure
of 2011-12 and RE of 2012-13; and
Virtually no funds have been earmarked for development of prototype stores in association
with indigenous trade sources (a token provision of Rs. one crore has been made for the next
year as against 29 crore rupees actually spent in 2011-12 and a BE 2012-13 of 89 crore
rupees)
Consider the below given table for a Comparative study of last year and present year
Budget
Source: IDSA
2012-13
2013-14
193407.29
203672.12
17.63
5.31
113828.66
116931.41
19.55
2.73
57.41
79578.63
86740.71
15.00
9.00
41.15
42.59
1.90
1.79
12.97
12.23
The Union Finance Minister announced different proposals for Infrastructure and Energy
Sector in India while tabling the Union Budget 2013-14 in the Lok Sabha on 28 February
2013. The proposals as announced by the Union Finance Minister are as follows:
Power
Investment allowance of 15% for investment in plant & machinery
30% increase in plan expense
CCI to take up decisions on more Power projects
Power transmission system from Srinagar to Leh at an expense of INR 228 Crore in 201314
Power Plants, and Open Access Consumers) are entitled to purchase in the area of a
distribution licensee.
Union Finance Minister P. Chidambaram on 27 February presented the Economic
Survey 2012-13 in the Lok Sabha of the Parliament. Economic Survey is
presented every year, just before the Union Budget. It is a flagship annual
document of the Ministry of Finance, Government of India.
In the economic survey 2012-13, the government's targeted policies for the poor,
with the prospect of fewer leakages, can help better translate outlays into
outcomes.
Fifteenth Quarterly Survey Report on Effect of Economic Slowdown on
Employment in India April to June 2012
Overall employment in June 2012 over June 2011 increased by 6.94 lakh, with
the highest increase recorded in IT/BPO (4.44 lakh) sector followed by 1.70 lakh
in Textiles including Apparels, 0.45 lakh in Transport, 0.26 lakh in Metals, 0.19
lakh in Gems and Jewellery and 0.11 lakh in Automobiles sectors during the
period. On the other hand, employment in handloom/powerloom and leather
sectors marginally declined during this period.
In export oriented units, employment at the overall level increased by 5.81 lakh
whereas in the non-exporting units, it increased by 1.10 lakh during the period
June 2012 over June 2011.
The results of the15th quarterly survey revealed that there was a sustained and
consecutive increase in employment in the sectors covered at overall level
during the last eleven quarters with a total addition of 30.73 lakh employment
during this recovery period.
Socio-Economic Profile of States and Inter-State Comparisons
Bihar has the highest decadal (2001-11) growth rate of population (25.07
percent), while Kerala has the lowest rate (4.86 percent).
In 2011, Kerala has the highest sex ratio with 1084 females per 1000 males,
followed by Tamil Nadu (995), while Haryana is at the bottom (877).
The best performers in terms of growth during 2011-12 are Bihar (16.71 per
cent) followed by Madhya Pradesh and Maharashtra.
In terms of growth in per capita income, the best performer is Bihar (15.44 per
cent) followed by Madhya Pradesh and Maharashtra due to high growth in gross
state domestic product (GSDP) in 2011 12.
The poverty estimates indicate that the highest poverty headcount ratio (HCR)
exists in Bihar at 53.5 per cent as against the national average of 29.8 per cent.
Bihar has the lowest MPCE both in rural and urban areas at 780 Rupees (with
65 percent food share) and 1238 Rupees (with 53 percent food share)
respectively. In comparison, Kerala has the highest in both rural and urban areas
at 1835 Rupees (with 46 percent food share) and 2413 Rupees (with 40 percent
food share) respectively.
The unemployment rate (per 1000) among the major states is the lowest in
Gujarat (18) and highest in Kerala (73) and Bihar (73) in urban areas and the
lowest in Rajasthan (4) and again highest in Kerala (75) in rural areas.
Infant mortality rate (IMR) in 2011 is the lowest in Kerala (12) and highest in
Madhya Pradesh (59) against the national average of 44.
Birth rate is lowest in Kerala (15.2) and highest in Uttar Pradesh (27.8) against
the national average of 21.8.
Death rate is lowest in West Bengal (6.2) and highest in Odisha (8.5) against
the national average of 7.1.
In terms of decadal growth rate in bank branches, Haryana (59.5 percent) has
the highest growth and Bihar the lowest (14.4 percent). Even a north-eastern
state like Assam (16.5 percent) is better placed than Bihar.
Some important poverty alleviation and employment generation
programmes
Mahatma Gandhi NREGA: This flagship programme of the government aims at
enhancing livelihood security of households in rural areas by providing at least
one hundred days of guaranteed wage employment in a financial year to every
household whose adult members volunteer to do unskilled manual work with the
stipulation of one-third participation of women.
Swarna Jayanti Shahari Rozgar Yojana (SJSRY): The annual budgetary
provision for the SJSRY for the year 2012- 13 was 838 crore Rupees and of this
516.77 crore Rupees had been released up to 7 February 2013. A total of 406947
people benefited from this scheme during 2012-13.
Rashtriya Swasthya Bima Yojana (RSBY): The scheme provides smart cardbased cashless health insurance cover of ` 30,000 per family per annum on a
family floater basis to BPL families in the unorganized sector with the premium
shared on 75:25 basis by central and state governments.
The Unorganized Workers Social Security Act 2008 and National Social
Security Fund: A National Social Security Fund with initial allocation of 1000
crore Rupees to support schemes for weavers, toddy tappers, rickshaw pullers,
beedi workers, etc. has been established.
Aam Admi Bima Yojana (AABY): The Janashree Bima Yojana (JBY) has now
been merged with the AABY to provide better administration of life insurance
cover to the economically backward sections of society.
Status of certain Health Indicators is as follows:
Welfare and Development of SCs, STs, OBCs, and Other Weaker Sections
The amount of subsidy admissible is 50 per cent of the project cost, subject to
a maximum of 10000 Rupees per beneficiary. During 2012-13, the physical target
is to cover over 12 lakh beneficiaries.
For the welfare and development of STs, an outlay of 4090 crore Rupees has
been made in the Annual Plan for 2012-13.
Services Sector
The Centre for Monitoring Indian Economys (CMIE) analysis of the sector-wise
performance of services activities based on firm-level data show that the
performance of sectors such as transport logistics, aviation and construction in
the year 2012-13 is subdued in comparison to with the previous year.
High negative PAT (profit after tax) in hotel sector continued. The health services
and telecom sectors were projected to have rebounded in the year 2012-13.
Overall the year 2013-14 is projected to be better for most of the sectors, except
retail trading, which is projected to have negative growth in profitability.
FDI in multibrand retail trading has been permitted subject to specified
conditions.
The IT and ITeS sector has started facing competition from many developing
countries. While the EU has the highest share in computer and information
services exports, followed by India and the USA, many new competitors like
China, Israel and the Philippines have emerged in recent years.
Between 2005 and 2011, the annual average growth of computer services was
69 percent in the Philippines, 28 percent in Sri Lanka, 59 percent in Ukraine, 27
percent in the Russian Federation, 37 percent in Argentina and 35 percent in
Costa Rica.
One major issue in services is the domestic barriers and regulations. Domestic
regulations in strict WTO terms include licensing requirements, licensing
procedures, qualification requirements, qualification procedures, and technical
standards but here other restrictions and barriers are also considered.
An indicative list of some important domestic regulations in India which need to
be examined for suitable policy reforms in the services sector include Trade and
Transport services, Construction, Accountancy services, Legal services and
Education Services. Union Finance Minister P. Chidambaram on 27 February
presented the Economic Survey 2012-13 in the Lok Sabha of the Parliament.
World trade in both goods and services reached and surpassed pre-crisis levels in
2011. However, the deceleration in world growth and trade in 2012 and forecast
of only a gradual upturn in global growth by international institutions reflected a
weak and slow recovery for world trade.
India's exports, which had surpassed pre-crisis levels within a year in 2010-11
with a record 40.5 percent growth, continued growing even in 2011-12, but were
finally affected by the global slowdown in 2012-13 with exports declining even
more at - 4.9 percent in the first ten months than the -3.5 per cent recorded
during 2009-10.
Based on GDP data from the expenditure side, the year-to-year growth for real
exports of goods and services decreased from a peak of 36 percent in the first
quarter of 2011 to 4 percent in the third quarter of 2012. Merchandise exports
have slowed down more; from 34 percent year to year in the first quarter of 2011
to -6 percent year to year in the third quarter of 2012.
Two reasons for the decline in export growth were found out: (i) external factors
or partner country incomes, (ii) changes in exchange rate. GDP growth of partner
countries slowed down significantly (from more than 6 percent year to year in
the first quarter of 2010 to less than 1 percent in the third quarter of 2012).
Gold Imports and Policy Measures: India is one of the largest consumers of gold
in the world with consumption increasing from 721.9 tonnes in 2006 to 933.4
tonnes in 2011 and 612 tonnes in the first three quarters of 2012, accounting for
around 27 per cent of world gold consumption in 2011, and 26.4 per cent in 2012
(total of first three quarters). In the case of export of gold jewellery, the major
export destinations include the UAE (57.9 percent), Hong Kong (14.1 percent),
and the USA (12.0 percent).
Imports of equipment for initial setting up or substantial expansion of fertilizer
projects fully exempted from basic customs duty of 5 percent for a period of
three years up to 31 March 2015; and basic customs duty on some watersoluble
fertilizers and liquid fertilizers other than urea reduced from 7.5 percent to 5 per
cent and from 5 per cent to 2.5 percent.
Concessional import duty available for installation of mechanized Handling
Systems and Pallet Racking Systems in mandis or warehouses extended for
horticultural produce.
Basic customs duty on plant and machinery imported for setting up or
substantial expansion of iron ore pellet plants or iron ore beneficiation plants
reduced from 7.5 percent to 2.5 percent.
Basic customs duty increased on standard gold bars; gold coins of purity
exceeding 99.5 percent and platinum from 2 percent to 4 percent and on nonstandard gold from 5 percent to 10 percent.
New e-BRC Initiative: A major EDI initiative the e-BRC launched which would
herald electronic transmission of foreign exchange realization from the
respective banks to the Directorate General of Foreign Trade (DGFT) server on a
daily basis. The exporter will not be required to make any request to the bank for
issuance of a bank export and realization certificate (BRC).
As per the schedule of Tariff Liberalisation Programme (TLP) under SAFTA (South
Asia Free Trade Area), India has brought down its peak tariff rates to 5 percent
w.e.f. 1 January 2013.
India - EU Broad Based Trade and Investment Agreement (BTIA): The 15th round
was held during 4-7 December 2012 in New Delhi. Chief negotiator level meeting
was held on 29-30 January, 2013 in New Delhi.
Union Finance Minister P. Chidambaram on 27 February presented the Economic
Survey 2012-13 in the Lok Sabha of the Parliament.
The Twelfth Five Year Plan laid special emphasis on development of the
infrastructure sector including energy. The total investment in the infrastructure
sector during the Twelfth Five Year Plan, estimated at 56.3 lakh crore Rupees
which is nearly double that made during the Eleventh Five Year Plan. Unbundling
of infrastructure projects, public private partnerships (PPP), and more
transparent regulatory mechanisms have induced private investors to increase
their participation in infrastructure sectors.
Their share in infrastructure investment increased from 22 per cent in the Tenth
Five Year Plan to 38 per cent in the Eleventh Plan and is expected to be about 48
per cent during the Twelfth Five Year Plan.
Production of coal, cement, petroleum refinery was marginally higher during the
2012-2013 fiscal year as compared to the corresponding period of the 2011-2012
fiscal year while steel and power-sector production was comparatively lower.
Fertilizer, crude oil, and natural gas production also declined during the first nine
months of 2012-2013 financial year. Among the infrastructure services, growth in
freight traffic by railways has been comparatively higher so far, while the civil
aviation sector and cargo handled at major ports have witnessed negative
growth.
In the road sector the National Highways Authority of India (NHAI) achieved 17.3
percent growth during the 2012-2013 financial year upto November 2012.
Major sector-wise performance of core industries and infrastructure services
displayed a mixed yet there continued to be an overall energy deficit of 8.7
percent and peak shortage of 9.0 percent.
The government took several initiatives for rationalizing the energy prices in
different sectors. The Integrated Energy Policy has outlined the broad contours of
the pricing system for coal. The pricing of coal is done now on gross calorific
value (GCV) basis with effect from 31 January 2012, replacing the earlier system
of pricing on the basis of useful heat value (UHV) which takes into account the
heat trapped in ash content also, besides the heat value of carbon content.
In context with the petroleum products pricing, in January 2013, the government
announced the new roadmap providing for a gradual price increase for reducing
diesel under-recoveries.
Dedicated Freight Corridor Project: The Eastern and Western Dedicated Freight
Corridors (DFC) are a mega rail transport project being undertaken to increase
transportation capacity, reduce unit costs of transportation, and improve service
quality. A special purpose vehicle, the Dedicated Freight Corridor Corporation of
India Limited has been set up to implement the project.
The NHAI Board gave approval for formation of a High Level Expert Settlement
Advisory Committee for one-time settlement of old cases pending in courts.
As a new initiative for promoting highway development, the mode of engineering
procurement and construction (EPC) contracts were brought in.
In order to remove the bottlenecks and ensure seamless movement of traffic and
collection of toll as per the notified rates, the government decided to introduce
passive radio frequency identification (RFID) based on electronic toll collection.
The Government approved National Telecom Policy (NTP) 2012, which addresses
the vision, strategic direction, and the various medium- and long-term issues
related to the telecom sector, on 31 May 2012. NTP-2012 is aimed at maximizing
public good by making affordable, reliable, and secure telecommunication and
broadband services available across the country.
By end December 2012 there were over 900 PPP projects (Pubic-Private
Partnership projects) in the infrastructure sector with total project cost (TPC) of
543045 crore Rupees as compared to over 600 projects with TPC of 333083 crore
Rupees on 31 March 2010.
The government in September 2012 approved the scheme for Financial
Restructuring of State Distribution Companies (Discoms).
MOU signed for Setting up of Memu Coaches Manufacturing Facility at
Bhilwara
Memorandum of Understanding (MoU) was signed on 25 February 2013 between
Indian Railways and Bharat Heavy Electricals Ltd (BHEL) for setting up of
Greenfield MEMU coaches manufacturing facility by BHEL at Bhilwara in
Rajasthan.
Main Line Electric Multiple Unit Trains, popularly known as MEMU trains were first
introduced in Indian Railways in the Year 1994-95, as a mode of rapid transit
system, to cater to non-suburban passengers, residing in small towns and
villages surrounding urban and industrial centres. MEMU trains have higher
passenger carrying capacity and higher average speed as compared to
conventional loco hauled passenger trains due to faster acceleration and braking
characteristics. These rakes are now being manufactured with toilet facilities to
take care of passenger needs. MEMU trains increase the line capacity utilisation,
and therefore are more suitable for running on high traffic density routes.
These MEMU trains have gained rapid popularity over the years. Currently, there
are about 160 MEMU services running. There are demands coming from all over
the country for running more and more MEMU trains. The demand for these
coaches will further increase as Indian Railways have plans to Electrify
approximately 15000 route kilometre during the next 10 years, in addition to the
existing 22000 route kilometre of electrified track. There was a shortfall in
acquisition of 800 MEMU coaches during XIth Plan Period due to capacity
constraints at Rail Coach Factory, Kapurthala, where these MEMU coaches are
produced. Overall it is expected that the requirement of MEMU coaches will grow
to nearly 9000 coaches during the next 10 year period. Setting up of factory for
conventional MEMU coaches will go a long way in meeting this demand.
Bharat Heavy Electricals Limited (BHEL) is a Maharatna Central Public Sector Unit
(CPSU) company, which is a partner of Indian Railways for a period spanning
more than 40 years. It has been manufacturing and supplying electric rolling
stock including EMUs and MEMUs; as well as sub-assembly and equipment for
rolling stock being manufactured at IRs own production units.
The proposed facility for production of MEMU coaches will be set up by Bharat
Heavy Electricals Limited (BHEL) at Bhilwara in the State of Rajasthan. The entire
cost will be borne by BHEL. Government of Rajasthan will provide land to
Railways, for setting up the project. In order to make the project viable, Ministry
of Railways will give Assured Off- Take orders to BHEL.
Indian Financial Regulators signed pact to Monitor Conglomerates
The country's top four financial regulators on 8 March 2013 signed an agreement
among each other for co-operation on consolidated supervision and monitoring
of financial groups identified as financial conglomerates- large banks and other
key players.
The decisivenesses were taken at a sub-committee meeting of the Financial
Stability and Development Council (FSDC) held in the Reserve Bank.
The regulators who signed the pact were the Reserve Bank of India (RBI),
Securities and Exchange Board of India (SEBI), Insurance Regulatory and
Development Authority and Pension Fund Regulatory and Development Authority.
The FSDC(Financial Stability and Development Council) meeting, chaired by RBI
Governor D Subbarao also approved formulating a national strategy for financial
education by incorporating the feedback received from public consultations and
from a global peer review, RBI said without providing details.
RBI had on 22 February 2013 released rules on allowing companies to start
banks in India and such coordination among regulators is needed for effective
supervision.
Union Government to launch 10 Rupees Plastic Notes in 5 Cities
The Union Government and RBI on 12 March 2013 decided to introduce one billion pieces of
10 Rupees bank notes made of plastic on a field trial basis in five cities.
A 10 Rupees note in polymer/plastic on a field trial basis will be introduced first; Minister of
State for Finance Namo Narain Meena said it in a written reply to the Rajya Sabha.
The field trail is supposed to be conducted in five cities of Kochi, Mysore, Jaipur,
Bhubhaneswar and Shimla with varied geographical locations and climatic conditions.
As per the RBI, the primary objective of introduction of polymer notes is to increase its life,
it could also help in combating counterfeiting.
Various agencies such as the RBI, Ministry of Finance, Ministry of Home Affairs, Security
and Intelligence Agencies of the Centre and States, Central Bureau of Investigation are
already working in tandem to thwart the illegal activities related to Fake Indian Currency
Notes (FICN).
The work of these agencies is periodically reviewed by a nodal group set up for this purpose.
World Bank estimated a growth of over 6 percent for the Indian
Economy during 2013-14
The World Bank in the month of March 2013 forecasted that the Indian economy
is estimated to grow over 6 per cent during 2013-14.
World Bank Chief Jim Young Kim, who is on a three-day visit to India asserted that
India is estimated to have grown 5 percent in the current fiscal and the growth
rate is likely to improve to 6.1-6.7 percent in 2013-14.
The Indian economy, like any other economy, is subject to global slowdown. It
has effect here and at the same time, the export market has started doing
better.
On the positive node, it also had be seen that share of India in global economy
almost doubled in five years between 2005 and 2010.
Kim is on his first visit to India after taking over as President of World Bank Group
in July 2012.
Coal India signed Fuel Supply Pacts with 56 Power Plants
The Union government on 12 March 2013 informed that state-run Coal India
Ltd. (CIL) signed fuel supply pacts with 56 power plants so far.
Minister of state for coal, Pratik Prakashbapu Patil in his written reply to Lok
Sabha mentioned that, Coal India Ltd has signed 56 fuel supply agreements
(FSAs) with the power plants as on 2 March 2013.
It is important to note that the deadline set by the Prime Ministers Office (PMO)
for signing of FSAs between CIL and power producers expired in January 2013.
Chief vigilance officer replying to a question regarding CILs highlighted
irregularities in awarding of FSAs. CIL observed certain inadequacies in the
documents of 11 cases, during verification of the documents in respect of
milestone achievement of LoAs (letter of assurance). It was also affirmed by the
minister that appropriate action would be taken in this regard by CILs
subsidiaries to ensure that all due procedures are observed.
Minister of state for coal stated that there is a proposal to engage an
independent third party sampling agency by CIL for consumers having FSAs.
Union Government granted an aid of 41 Crore Rupees to protect
Pashmina Goats
The Union Government on 12 March 2013 decided to provide a financial
assistance of 41.21 crore rupees to protect Pashmina goat which produces worldfamous fine luxury fibre.
The idea of providing assistance came in light of concern over the recent deaths
of thousands of Pashmina goats in the Ladakh region.
As per the assistance, there is plan which ideates a new Pashmina Wool
Development Scheme with a special package and a financial allocation of 41.21
crore rupees.
Main Components of the Scheme
It includes assistance for foundation stock in new areas for Pashmina rearing
activities.
Inclusion of Health coverage and feed supplement.
Strengthening of existing fodder bank and pashmina goat breeding farm.
It will also include establishment of multipurpose extension centre and pasture
farm on migratory routes.
Development of Breeder orientation training camp for research and
development.
2012 quarter, and the 2.4% rise in industrial production in January 2013 after two
months of contraction suggests the recovery is still weak.
The current account deficit hit a record-high 5.4 per cent in the September
quarter and is expected to end the 2012/13 fiscal year at its highest level ever.
What is Repo Rate?
The rate at which the RBI lends money to commercial banks is called repo rate. It
is an instrument of monetary policy. Whenever banks have any shortage of funds
they can borrow from the RBI.
A reduction in the repo rate helps banks get money at a cheaper rate and vice
versa.
What is Reverse Repo rate?
Reverse Repo rate is the rate at which the RBI borrows money from commercial
banks.
An increase in reverse repo rate can prompt banks to park more funds with the
RBI to earn higher returns on idle cash. It is also a tool which can be used by the
RBI to drain excess money out of the banking system.
What is cash Reserve Ratio?
Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep
with the RBI. If the central bank decides to increase the CRR, the available
amount with the banks comes down. The RBI uses the CRR to drain out excessive
money from the system.
Highlights of the RBI Quarterly Monetary Policy Review:
The Ministry had also sought CCI approval to declare three blocks as no go
areas. Two blocks belonged to the ONGC-led consortium and one to the Oil India
Ltd-led consortium.
The CCI, headed by Prime Minister Manmohan Singh, was set up to fast-track
clearances to infrastructure projects involving investments of over 1000 crore
rupees.
Commercial Production of Aishwarya Oil Field in Rajasthan Started
Commercial production of Aishwarya Oil Field at Barmer in Rajasthan has started
on 23 March 2013. The commercial production of natural gas will take place from
the Rageshwari Well of Barmer region. Its expected that every day production of
the oil field shall be 25000 barrels of Crude Oil and 50000 lakh cubic feet of
natural gas. The gas field was dedicated to the nation by Petroleum Minister
Veerappa Moily and Chief Minister of Rajasthan Ashok Gehlot.
After the operations of the Barmer Oil field will reduce the import bills of the
country for petroleum that is about 6.5 lakh crore rupees at present. Creation of
a national gas grid is in plans of the government for better distribution of natural
gas.
Growth-Oriented MoU Signed Between SPMCIL and Department of
Economic Affairs
Security Printing and Minting Corporation of India Limited (SPMCIL) signed the
Memorandum of Understanding (MoU) with the Department of Economic Affairs
(DEA), Ministry of Finance on 25 March 2013. This is the growth-oriented MoU
which sets the ambitious Sales target of 3407 crore Rupees as well as the Gross
Operating Margin target of 511 crore Rupees for 2013-14 fiscal year.
Key features of the MoU
The MoU was exchanged between Additional Secretary, Department of
Economic Affairs, Ministry of Finance and CMD, SPMCIL.
The MoU was signed based on the targets as well as parameters negotiated by
a Department of Public Enterprises (DPE).
The MoU focuses on growth charter in the globally competitive environment. It
incorporates different parameters for evaluation of the performance.
As per the signed MoU, SPMCIL committed for increasing its manpower
efficiency for producing Security Paper, Bank Notes as well as coins.
Also, SPMCIL will be committed towards modernisation of the plant and
machinery as well as indigenisation of the security products.
According to the MoU, SPMCIL committed to facilitate training to the employees
on parameters such as risk management, leadership development, SAP
handholding, new/advanced technology and preventive maintenance.
About SPMCIL
SPMCIL is the Miniratna Category-I CPSE Company of the Government of India.
The main purpose of the company is minting of coins, printing of passport,
travel documents, Bank Notes, non-judicial stamp papers as well as postal
stationary.
SPMCIL has four Mints, four Presses as well as one Paper Mill in order to meet
the coins and currency notes requirements of RBI.
SPMCIL also meets the requirements of the State Governments for Non-Judicial
Stamp Papers, apart from fulfilling the requirements of Postal Departments for
postal stationery and stamps.
Ministry of External Affairs also meets its requirements of passports, visa
stickers and other travel documents through SPMCIL.
The Insurance Regulatory and Development Authority (IRDA) in the month of March 2013
have made the norms stricter for reinsurers. As per IRDA (General Insurance Reinsurance)
Regulations 2013, the tough norms have been put in place for selecting reinsurers outside
India.
It is Evident that in the reinsurance trade, multiple insurance companies share the risk by
purchasing insurance policies from other insurers to limit the total loss the original insurer
would face in the case of a disaster.
So, As per the new IRDA norms, insurers is supposed to place their reinsurance business
outside India with only those insurers who have a credit rating of at least BBB with Standard
& Poors, or an equivalent rating by any other international agency for the past five years.
The past claims performance of the reinsurers should also be considered while accepting their
participation in the reinsurance programme.
The IRDA also asserted that the domestic pool for reinsurance surpluses in fire, marine hull
and other classes should be organised in consultation with all insurers on fair ground for
retention of business with India in prescribed ratios.
According to the regulator, the Prime objectives of reinsurance programme, is to maximise
retention (the portion of risk which an insurer assumes for its own account). The net
preservation of non-life insurers increased to 91.84 per cent in 2011-12 from 88.24 per cent in
the preceding year.
The Cabinet Committee on Economic Affairs (CCEA) on 4 April 2013 decided to de-control
sugar and did away the levy on sugar mills and regulated release mechanism. This de-control
will raise the subsidy burden to 5300 crore rupees from previous 2700 crore rupees.
De-control on sugar will not have an impact on the sugar made available in the Public
Distribution System.
The de-control of sugar will abolish the rule for sugar mills that makes it mandatory for sugar
millers to sell sugar to the Government at a discounted price as well as the limitation on the
amount they choose to sell in the open market .