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Last Updated: January 20, 2021 2 days ago

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  • GST Compensation Shortfall Finance Ministry

    2 days ago
    The 12th instalment of Rs. 6,000 crore was issued as back-to-back loans to the states to make up for the shortfall in GST compensation. Highlights: ♦ The Ministry of Finance, Department of Expenditure released the 12th weekly instalment of Rs. 6,000 crore was allocated to the states to make up for the shortfall in compensation for GST. ♦ The funds have been provided to 23 States and 3 UTs of GST council members. ♦ Due to the implementation of GST, the remaining 5 states (Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim) have no income gap. Background: The Indian government has set up a special borrowing window in October 2020 to cover the estimated income gap of Rs.1.10 Lakh crore due to the implementation of GST. The borrowings are being done through this window by the Government of India for the benefit of the States and UTs. Since October 2020, 12 rounds of borrowings have been completed.

    Model Tender for Public Procurement Drafted By The Finance Ministry

    3 days ago
    The Ministry of Finance (Dept. of Expenditure) has drafted a model bidding document for all central government departments to conduct public procurement to standardize the language and terms used and avoid contract disputes. Highlights: ♦ Public procurement is defined as the purchase of goods and services by the public sector or government, accounting for an average of 15% of global GDP. ♦ In India, it is estimated that government procurement accounts for about 30% of GDP, of which the central government accounts for a large part. ♦ There is no standardized nomenclature in public procurement in India, and nomenclature in the Americas, Europe and India are already common. E.g. Participants in bidding are called bidders and bidders. ♦ The current standard bidding documents try to eliminate this duality, that is, "bidder" should refer to the bidding documents and procedures, and the term "bid" should refer to the bidder's booth; ♦ According to the proposed model, "bidders" will be used instead of "bidders" to refer to potential suppliers, and the use of "bid documents" will be eliminated.

    Japan Provides Loan To India

    11 days ago
    Japan & India signed an agreement of 50 billion loans to support India’s economic support program for the poor and vulnerable groups affected by the pandemic. Highlights: ♦ The loan could also be a neighborhood of Japan’s Official Development Assistance - ODA loan. ♦ Official Development Assistance is defined as government assistance aimed toward promoting the economic development & welfare of countries that are under development. ♦ Annual rate of interest of the loan is 0.65%, and thus the repayment period is 15 years, including a 5-year grace period. ♦ The support targets to support the Indian government's programs, like PMGKY (Pradhan Mantri Garib Kalyan Yojana), which aims to scale back the socio-economic impact and strengthen the socio-economic institutions. ♦ This includes plans to distribute food to the poor and disadvantaged groups, to provide assistance and support to construction workers, and plans to provide special insurance for doctors fighting Covid-19. it's to implement the health and medical policies of the Indian government and is predicted to steer to the hospital's development equipped with medical aid units (ICU) and infection prevention and management facilities. In many villages in India, digital technology is additionally expected to strengthen telemedicine.

    Liberalized Authorised Economic Operator Package for MSMEs

    11 days ago
    Central Board of Indirect Taxes & Customs - CBIC introduces flagship Liberalised Authorised Economic Operator Package for Micro Small and Medium Enterprises (MSMEs). Highlights: ♦ The Central Board of Indirect Taxes & Customs - CBIC has adopted a replacement initiative to launch the flagship product "Liberalised MSME AEO Package" for Micro Small and Medium Enterprises (MSMEs) to understand rapid customs clearance. ♦ In order to attract MSMEs to become Authorized Economic Operators (AEOs) and luxuriate in them, CBIC (Central Board of Indirect Taxes & Customs) has relaxed the compliance criteria provided the MSMEs have a legitimate certificate from their line-ministry. ♦ The "Liberalized MSME AEO Package" scheme could even be a voluntary compliance program that gives faster customs clearance service for qualified stakeholders within the worldwide supply chain (namely importers, exporters, logistics service providers, custodians, etc.). ♦ The relaxed requirements, allowing Micro Small and Medium Enterprises (MSMEs) who submit a minimum of 10 customs clearance documents within 1 year and who have clear compliance records within two years to use for the scheme.

    Exim Bank Has Raised $1 Billion By Dollar-Bond Sale

    14 days ago
    The Export-Import Bank has raised US$1 billion through the sale of US dollar bonds to international investors. Exim Bank: ♦ The Export-Import Bank of India is a specialized financial institution wholly-owned by the Indian government and was established in 1982 to provide financing, facilitation and promotion of trade in India. ♦ The Export-Import Bank provides financial assistance to exporters and importers. ♦ It is the main financial institution responsible for coordinating the work of institutions engaged in financing the import & export of goods and services to promote international trade in the country.

    World Bank Released Global Economic Prospects Report

    16 days ago
    According to the report, the Indian economy will contract by 9.6% in 2020-21. The Indian economy will recover by 5.4% in 2021-22. India's economic contraction will be mainly attributed to the sharp decline in household spending and private investment. Highlights: ♦ The informal sector accounts for four-fifths of the country's employment, is severely affected. On the other hand, the world economy will grow by 4% in 2021. Services and manufacturing are gaining momentum. According to the World Bank, India is facing its first technological decline. ♦ When GDP exceeds the quarter's negative growth for two consecutive quarters, it is called a period of a technical recession. In India, the gross domestic product for the April to June quarter fell by 23.9%.  ♦ In the July and September quarters, the GDP growth rate contracted by 7.5%. This clearly shows that India's GDP growth has experienced negative growth for two consecutive quarters. Therefore, India is in a period of technological decline. ♦ According to data from the Indian Economic Monitoring Center, during the covid-19 pandemic, more than 500,000 salaried people lost their jobs. ♦ Several global rating agencies have already made predictions on the Indian economy. In September 2020, the exchange substantially reduced its growth expectations for India. The country's GDP is expected to decrease by 10.5% in the 2020-21 fiscal year.  ♦ Previously, it had expected a 5% contraction. The Asian Development Bank predicts that India's economic growth will contract by 9% in 2020-21.

    Digital Payments Index by RBI

    16 days ago
    The Reserve Bank of India has established a comprehensive Digital Payment Index (DPI) to record the degree of digitization of payments across the country. Highlights: ♦ The RBI-DPI has been constructed with March 2018 as the base period. ♦ The DPI in March 2019 and March 2020 reached 153.47 and 207.84, respectively, indicating considerable growth. ♦ RBI-DPI contains five main parameters: Payment Enablers, Payment Infrastructure – Demand-side factors and Supply-side factors, Payment Performance and Consumer Centricity. ♦ The RBI-DPI should be published on the RBI’s website every six months starting in March 2021 for 4 months.

    GST Compensation Shortfall In States

    16 days ago
    The 10th Instalment of Rs 6,000 crore was issued to the States as a back-to-back loan to meet the GST compensation shortfall. Highlights: ♦ The Ministry of Finance has issued the tenth instalment of 60 billion rupees a week to the states to make up for the shortage of goods and services tax compensation. ♦ The money has been released to 23 states and 3 UTs with legislative assemblies. ♦ The remaining 5 states (Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim) have no income gap due to the implementation of GST. ♦ Now, more than 50% of the estimated GST compensation shortfall has been issued to the States & UTs with legislative assemblies.

    Indias Rice Exports To Vietnam

    17 days ago
    Due to attractive prices, Vietnam has recently started to buy grain, especially rice, from India. Although Vietnam is the world's third-largest rice exporter, Vietnam has started to import rice from India. Highlights: ♦ Vietnam has started to import rice from India because the country’s local price has jumped to the highest level in 9 years due to limited domestic supply. This is mainly because Vietnam has begun to stock a large amount of rice for the future. ♦ In addition, the price of Indian rice is very attractive. The huge price difference forced the Vietnamese government to import rice from India. ♦ Indian traders will export 70,000 tons of rice to Vietnam at a price of approximately US$310 per ton. India will export broken rice to Vietnam in January and February 2021. ♦ The global pandemic has prompted Vietnam and other countries to stock up rice. This is because the reduction in food supply makes people increasingly worried about food insecurity. ♦ Vietnam plans to reserve US$270,000 of rice to ensure access to food in the event of a disruption in the global covid-19 supply chain. Therefore, it is facing shortages and is dependent on imports. ♦ The price of broken rice in India ranges from US$381 to US$387 per ton. ♦ The attractive price of Indian rice has increased the demand in Asian and African countries. It is expected that Thailand and other Asian countries will also transfer rice imports to India. ♦ Vietnam’s total production in 2020 has dropped by 1.85% compared to 2019. In addition, Vietnam’s rice exports in 2020 fell by 3.5% compared to 2019.

    IFSCA Becomes A Member Of IOSCO

    17 days ago
    The International Financial Services Center Authority (IFSCA) has become an Associate Member of the International Organization of Securities Commissions (IOSCO). IOSCO: IOSCO is an international organization which brings together global securities regulatory agencies, covering more than 95% of the global securities market. It is also a global standard-setter for the securities sector. IOSCO works closely with the G20 and the Financial Stability Board (FSB) to develop standards to strengthen the securities market. The FSB has recognized IOSCO Objectives and Principles of Securities Regulation as one of the key standards for a sound financial system. Highlights: ♦ IOSCO membership will provide a platform for IFSCA to exchange information on areas of common interest at the global and regional levels. ♦ In addition, the IOSCO platform will enable IFSCA to learn from the experience and best practices of regulatory agencies in other well-established financial centers. ♦ This is an important milestone linking IFSCA with global securities market regulators, and will make a huge contribution to the development and supervision of financial products, financial services and financial institutions at the Gujarat International Finance Tec-City International Financial Services Centre.

    India Signs Loan To Enhance Power Generation Capacity

    17 days ago
    The Asian Development Bank - ADB and the Indian government signed a loan of US$231 million to increase the power generation capacity of Assam by building a 120-megawatt hydroelectric power plant. Highlights: ♦ This is the third loan under the ongoing Assam State Power Industry Investment Plan, which was approved by the ADB Board of Directors in July 2014. ♦ The plan includes the first two parts, focusing on increasing the capacity and efficiency of the energy production and distribution system in Assam to improve the power services provided to end users. ♦ The project promotes an increase in the supply of affordable clean electricity, which will help improve living conditions in the state, promote business expansion and increase employment opportunities in the state, while reducing greenhouse gas emissions. ♦ The project is an upstream project on the Kobili River, which will help increase clean energy supply by 469 gigawatt hours (GWh) by 2025 and reduce greenhouse gas emissions by 360,000 tons of carbon dioxide annually. ♦ The US$2 million grant from Japan’s Poverty Alleviation Fund (JFPR) is also related to the equipment and consulting services. Asian Development Bank (ADB): Asian Development Bank (ADB) is a regional development bank which is established on December 19, 1966. Its headquarters are located in Mandaluyong, Ortigas Center, Metro Manila, Philippines. The bank promotes social & economic development in Asia. It is modeled on the World Bank and has a similar weighted voting system in which votes are distributed in proportion to the capital subscriptions of members. As of December 31, 2018, Japan and the United States each held the largest proportion of shares, which was 15.571%. China accounted for 6.429%, India accounted for 6.317%, and Australia accounted for 5.773%.

    India Sign $10 Million Loan To Support Himachal Pradesh

    17 days ago
    The Asian Development Bank - ADB and the Indian Government signed a $10 million Project Readiness Financing (PRF). Goal: Provide funding for subsequent projects, help carry out pilot activities, design and capacity building to expand horticulture production and farm family income in Himachal Pradesh. Highlights: ♦ The PRF project will support the adoption of advanced actions to achieve a high level of project preparation through detailed design activities, capacity building of state-level institutions, and the creation of a favorable environment for the state's subtropical horticulture development. ♦ It aims to ensure implementation readiness by testing the new production technology and marketing system in advance, so that the project is cost-effective and can be completed in time. ♦ The project will support the development of subtropical horticulture in the southern part of the state, including the cultivation of fruits and vegetables. Due to the limited long-term access to water, crop losses caused by wildlife invasion and limited access to high-value markets, the state is currently lagging behind. ♦ PRF supports the establishment of a Water User Association (WUA) based on the completed irrigation scheme and increases women's participation.

    Odisha Completes Ease Of Doing Business Reforms

    17 days ago
    Odisha became the seventh state to complete the ease of business reforms. Highlights: ♦ Odisha has become the seventh state in the country that has successfully implemented the "Ease of Doing Business" reform prescribed by the Ministry of Finance and Expenditure. ♦ Therefore, New York State is eligible to mobilize additional rupee funds. It received Rs 1,429 crore through open market borrowings. ♦ Orissa has now joined the six states of Andhra Pradesh, Karnataka, Madhya Pradesh, Rajasthan, Tamil Nadu and Telangana, and they have completed this reform.

    New Rule in GST Will be Effective from New Year

    23 days ago
    The Central Board of Indirect Taxes and Customs (CBIC) has made it mandatory for businesses with a monthly turnover of more than Rs. 50 lakh to pay at least 1% of their Goods and Services Tax (GST) liability in cash. It will be effective from 1st January 2021. Highlights: ♦ The new rule restricts the use of Input Tax Credit (ITC) for discharging GST liability to 99%. ♦ So far, CBIC has booked about 12,000 ITC fraud cases and arrested 365 people so that this move will stop tax evasion through false invoices. ♦ Provide ITC to offset taxes on the purchase of raw materials, consumables, goods or services used to manufacture goods or services. This helps avoid the cascading effect of taxes and double taxation. ♦ This restriction does not apply to the following situations: - The general manager or any partner paid more than Rs. 100,000 income tax, or - The registered person has received a refund amount of more than Rs. 100,000 in the preceding financial year on account of unutilised input tax credit. - This accounts for only 0.37% of the total number of companies registered in the GST system. - In the total base of 12 billion GST taxpayers, only about 400,000 monthly supplies are worth more than Rs. 5000000 - Among them, only about 1.5 lakh pay less than 1% of their GST liability in cash, and when exclusions in the rule are applied, around 1.05 lakh taxpayers get further excluded. - Therefore, the rule only applies to 40,000 to 45,000 taxpayers. ♦ Criticism: People are worried that mandatory cash payments will adversely affect small businesses, increase their working capital needs, and make GST a more complicated indirect tax system. Central Board of Indirect Taxes and Customs: It is part of the Department of Revenue under the Ministry of Finance. The Central Board of Excise and Customs (CBEC) was renamed as the CBIC in 2018 after the GST rollout. It is responsible for formulating policies related to tariffs and collections, Central excise duties, Central GST (CGST) and Integrated GST (IGST).

    India To Become Fifth Largest Economy In 2025

    23 days ago
    A recent report released by the Center for Economics and Business Research (CBER) predicts that India will again overtake the UK as the fifth-largest economy in 2025, and jump to third place by 2030. CBER is a UK-based company that provides independent economic forecasts for public and private firms. Highlights: ♦ The Indian economy will grow by 9% in 2021 and 7% in 2022. ♦ This growth trajectory will make India the world's third-largest economy by 2030, overtaking the UK in 2025, Germany in 2027 and Japan in 2030. ♦ China in 2028 will overtake the USA to become the world’s biggest economy, five years earlier than previously estimated due to the contrasting recoveries of the two countries from the Covid-19 pandemic. ♦ Japan would remain the world’s third-biggest economy, until the early 2030s when it would be overtaken by India, pushing Germany down from fourth to fifth. ♦ Previously, India surpassed the UK to become the world's fifth-largest economy in 2019, but it has fallen to sixth place in 2020. ♦ Even before the impact of the Covid-19 crisis, the Indian economy has been losing momentum. ♦ The slowdown in growth results from a combination of factors, including the fragility of the banking system, reforms and adjustments (Demonetisation, GST) and the slowdown in global trade. ♦ The GDP of the second quarter of 2020 (April to June) is 23.9% lower than the level of 2019, which indicates that nearly a quarter of the country’s economic activity has been exhausted by global demand and the collapse of domestic demand accompanied by a series of strict national lockdowns.

    SGBs Are Government Securities Denominated In Grams Of Gold

    25 days ago
    Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They are a substitute for holding physical gold. Investors must pay the issue price in cash, and the bond will be redeemed in cash at maturity. The Reserve Bank issues bonds on behalf of the Government of India. Sovereign Gold Bond Scheme: ♦ According to the Foreign Exchange Management Act, 1999, individuals must be Indian residents to meet the Golden Bond scheme's eligibility criteria. ♦ Any individual/association/trust/HUFs with Indian residency is eligible to invest in the sovereign gold bond scheme. They can also jointly invest in these gold bonds as the eligibility criteria for the plan. ♦ Minors can also take advantage of the program's benefits, provided that their parents purchase the bond on their behalf. Benefits of Sovereign Gold Bond Scheme: According to personal convenience, gold bonds can be obtained in paper or Demat form. The scheme also provides flexible investment methods, where people can choose the amount of investment they want. The interest provided by the gold bond is 2.50% per year, which can be paid at face value every six months. The validity period of the sovereign gold bond plan is 8 years and can be cancelled early after 5 years of interest payment.

    Vadodara Municipal Corporation To Launch Municipal Bonds In January

    27 days ago
    Vadodara Municipal Corporation (VMC) is expected to launch municipal bonds in January 2021. Municipal bonds are a debt instrument in which investors provide loans to local governments. Highlights: ♦ In this way, it will become the third Urban Local Body (ULB) in Gujarat to use this method to raise money to fund development work approved under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT).  ♦ It has sought approval from the state government. ♦ Ahmedabad is the first city in South Asia to issue a municipal bond of Rs 1 billion in 1998. ♦ The Surat Municipal Corporation is the second city in Gujarat to announce the issuance of bonds in 2018 ♦ Municipal bonds are a debt instrument in which investors provide loans to local governments. ♦ They are issued by private groups for specific projects, usually for a period of ten years. ♦ ULB pays investors the annual interest of the bond at a determined interest rate. ♦ The difference between bank loans and municipal bonds is that any institution can guarantee bonds only if the credit rating is good. ♦ Benefits: Bonds help raise funds from the stock market. Compared with loans from a single bank, this also increases the number of investors available to private groups.

    The US Puts India on Currency Watchlist

    34 days ago
    The US Treasury Department included India on its watch list of currency manipulators. Vietnam and Switzerland are marked as currency manipulators. In 2019, the U.S. Treasury Department removed India from its currency manipulators watch list of its major trading partners. Currency Manipulators: This is a label that the US government puts on a country that intends to deliberately devalue its currency against the U.S. dollar for "unfair currency practices". This practice means that the country is artificially reducing the value of its currency to gain an unfair advantage over other countries. This is because the devaluation of the currency will reduce the country’s export costs, thereby artificially showing a reduction in the trade deficit. Currency Manipulator Watch List: ♦ The US Treasury Department issues a semi-annual report, which must track the development of the international economy and check foreign exchange rates. ♦ Criteria: An economy meeting two of the three criteria in the Trade Facilitation and Trade Enforcement Act 2015 will be included on the watch list. This includes: ♦ "Significant" bilateral trade surplus with the United States at least $20 billion in 12 months. ♦ In 12 months, the current account surplus is equal to at least 2% of the gross domestic product (GDP). ♦ The listing will not be punished and sanctioned in any form, but it will destroy the country’s global financial image in the foreign exchange market, including underestimating the currency to gain an export advantage. ♦ India, Taiwan, and Thailand have joined the other seven countries on the watch list. Other countries on the list include China, Japan, South Korea, Germany, Italy, Singapore, and Malaysia.

    MSP Operations during Kharif Marketing Season

    38 days ago
    In the ongoing 2020-21 Kharif Marketing Season (KMS), the government will continue to purchase its MSP Kharif 2020-21 crops from farmers in accordance with its existing MSP schemes. Highlights: ♦ The Government policy of procurement of Foodgrains has a broad objective, which is to ensure that farmers are provided with a Minimum Support Price (MSP) and to provide food to weaker areas at an affordable price. ♦ It can also ensure effective market intervention to control prices and increase the country’s overall food security. ♦ FCI, the central nodal agency of the Indian government, works with other State Agencies to undertake the purchase of wheat and rice under the price support scheme. ♦ According to the instructions issued by the Indian government from time to time, the State government agency purchases coarse grains for the central pool. ♦ Purchasing under price support is mainly to ensure that farmers are provided with remuneration prices for their products, so as to encourage them to obtain better yields. Paddy procurement: Punjab, Haryana, Chandigarh, Jammu and Kashmir, Kerala, Gujarat, Uttar Pradesh, Telangana, Uttarakhand, Tamil Nadu,  Andhra Pradesh, Odisha, Madhya Pradesh, Maharashtra and Bihar all have Paddy field purchases. Pulses and Oilseeds procurement: According to the proposals of the states, it has been approved as Tamil Nadu, Karnataka, Maharashtra, Trayangana, Gujarat, Haryana, Uttar Pradesh, Odisha, Raja Stan and Andhra Pradesh purchase beans and oils sold in the Khalif market in 2020 under the 48.11 LMT Price Support Program in India. Cotton: Procurement operations of seed cotton (Kapas) under MSP are going on smoothly in the States of Punjab, Haryana, Rajasthan Madhya Pradesh, Maharashtra, Gujarat, Telangana, Andhra Pradesh, Odisha and Karnataka.

    PNGRB Notifies New Unified Tariff Structure

    44 days ago
    The Petroleum and Natural Gas Regulatory Board - PNGRB has notified 14 new tariff structures for natural gas pipelines. The purpose is to reduce the cost of natural gas for users who are away from the gas and LNG receiving terminals on the west coast of the country. Highlights: ♦ The purpose of the New Unified Tariff Structure is to reduce the cost of natural gas for users who are away from the gas and LNG receiving terminals on the west coast of the country. ♦ Under the new flat-rate structure, buyers will be charged a fixed rate for natural gas transportation within 300 kilometres from the source, and a fixed rate for natural gas transportation within 300 kilometres of a single pipeline network. ♦ This will be much cheaper for buyers who are far away from the gas source. These buyers charge earlier based on the number of pipes used and the distance from the gas source. ♦ Therefore, buyers who use multiple channels may benefit a lot from this change. ♦ Changes in tariffs are likely to stimulate more investment in natural gas transmission infrastructure, as natural gas prices are becoming increasingly affordable for users far from the country's west coast. ♦ The Indian government's goal is to increase the consumption of natural gas to 15% of the current level by 2030. The current consumption of natural gas accounts for 6.2% of India's energy consumption.

    RBI Introduces Risk-Based Internal Audit Norms For Nbfcs,Ucbs

    45 days ago
    The Reserve Bank of India - RBI announced the introduction of risk-based internal audit standards for large Urban Cooperative Banks (UCBs) and Non-Bank Financial Companies (NBFCs). Highlights: ♦ Purpose of introduction: To improve the governance and assurance functions of regulated entities. ♦ It also formulated guidelines on the appointment of statutory auditors for commercial banks, UCB and NBFC to improve the quality of financial reports. ♦ NBFC and its interconnection with different parts of the financial system are becoming increasingly important, so the resilience of this sector must be increased. ♦ Therefore, it has been decided to develop transparent dividend declaration standards for different types of NBFCs. ♦ Regional rural banks would be given permission to access the LAF - Liquidity Adjustment Facility, Marginal Standing Facility (MSF) of the RBI and call/notice money market. ♦ The Reserve Bank of India proposes to issue digital payment security control instructions for regulated entities to improve the ecosystem of digital payment channels and provide users with better security and convenience.

    Bonds Issued By The Lucknow Municipal Corporation - LMC

    48 days ago
    The bonds issued by Lucknow Municipal Corporation (LMC) were listed on the BSE, raising 2 billion rupees for Uttar Pradesh. Highlights: ♦ The chief minister of UP stated that Ghaziabad would be the next country to issue municipal bonds, followed by Pragyaraj, Varanasi, Agra and Kanpur ( Kanpur). ♦ Lucknow is the ninth city in the United States to raise funds through municipal bonds. So far, the country has raised a total of 360 billion rupees through municipal bonds. ♦ Funds raised using such bonds are usually used for infrastructure projects such as roads, water and housing. ♦ In 2015, the market regulator SEBI published a framework for raising funds through municipal bonds. ♦ One of the main eligibility criteria for issuing these bonds is that local institutions should not have negative net assets in the previous three fiscal years and should not default on payments in the past year.  

    IFSCA Has Obtained The Membership IAIS

    49 days ago
    IFSCA has obtained the membership of the International Association of Insurance Supervisors (IAIS). Highlights: ♦ Through this membership, IFSCA can access the IAIS global network and can exchange opinions and information with other global regulatory agencies. ♦ This will help establish a vibrant global insurance centre in the IFSC of GIFT City. ♦ Currently, GIFT IFSC operates 17 leading insurance entities engaged in offshore insurance and reinsurance businesses. ♦ This membership will greatly help the connection between IFSC and global insurance institutions, and help IFSCA and other global centers to jointly develop global insurance business. ♦ About International Association of Insurance Supervisors (IAIS): ♦ IAIS (International Association of Insurance Supervisors) is a voluntary membership organization of insurance regulators from more than 200 jurisdictions, accounting for 97% of global insurance premiums. ♦ It is an international standard-setting agency responsible for formulating and assisting in the implementation of principles, standards and other supporting materials to supervise the insurance industry. ♦ IAIS also provides a forum for members to share their experience and understanding of insurance supervision and the insurance market. ♦ The leaders of the G20 and other international standard-setting bodies usually require IAIS to recognize their collective expertise. ♦ Its headquarter is located in Switzerland and was established in 1994.

    ADB Signs $132.8 Million Loan With Indian Government

    50 days ago
    The Asian Development Bank (ADB) has signed a US$132.8 million loan with the Government of India to strengthen and modernize the distribution network and improve the quality of electricity provided to households, industries and businesses in Meghalaya Highlights: ♦ Although Meghalaya has achieved 100% electrification, the remote rural areas of the state frequently cut out power due to overloading of the distribution grid and substations using outdated technologies, resulting in massive technical and commercial (AT&C) losses. ♦ The Indian government and the Meghalaya state government have launched a "24×7 Meghalaya State Electricity Plan for all citizens", aiming to provide uninterrupted, high-quality, reliable and affordable power supply to all electricity users. ♦ The project will build 23 substations; transform and modernize 45 substations, including the provision of control room equipment and protection systems; install and upgrade 2,214 kilometers of power distribution lines and related facilities, covering three of the six circles in the state. ♦ The installation of smart meters will benefit approximately 180,000 households. ♦ It is proposed to supplement the loan with a US$2 million grant from the ADB Japan Poverty Reduction Fund, which will fund renewable energy microgrids to improve power quality and support income-generating activities, especially for women and others Socially disadvantaged groups in three villages and three schools.

    FDI Inflows in the July-September Quarter

    53 days ago
    In the July-September quarter, Foreign Direct Investment (FDI) inflows to the country reached US$28.1 billion. Highlights: ♦ In the second quarter of the 2020-21 fiscal year (July 2020 to September 2020), Foreign Direct Investment (FDI) inflows into India totalled 28.102 billion US dollars, of which FDI equity inflows were 23.441 billion US dollars or rupee. 174793 million. ♦ This brings FDI equity inflows from the 2020-21 fiscal year to September 2020 to $30.04 billion, an increase of 15% over the same period in the 2019-20 fiscal year. ♦ From April 2000 to September 2020, according to reports, the largest inflow of Foreign Direct Investment came from Mauritius, followed by Singapore and the United States. ♦ From October 2019 to September 2020, Gujarat has been the main beneficiary of Foreign Direct Investment equity inflows, followed by Maharashtra and Karnataka.

    IBBI has Amended The Regulations For Liquidation

    59 days ago
    The Indian Bankruptcy and Bankruptcy Commission (IBBI) amended the liquidation regulations under the Bankruptcy and Bankruptcy Act (IBC). Highlights: ♦ The liquidator of the company can allocate or transfer the assets that are not easily realizable to anyone to ensure that the company cannot find the offeror under the IBC quickly. ♦ The aforementioned transfer or transfer of assets must be negotiated with the stakeholder committee. ♦ The definition of "non-liquidate assets" includes any assets of the company's debtors that cannot be sold through available options. ♦ The liquidator can sell any or all of the assets of the company in liquidation, and these assets are facing some disputes or involved in some fraudulent transactions. IBBI: IBBI was established in 2016 under IBC. It is responsible for the implementation of IBC. It supervises bankruptcy professionals and professional institutions, professional bankruptcy entities and information utilities. It prepares and implements rules for the bankruptcy settlement and bankruptcy processes of companies and individuals under the Code.

    Loan For Delhi-Ghaziabad-Meerut Regional Rapid Transit System Project was Signed

    59 days ago
    The Ministry of Housing and Urban Affairs, the National Capital Region Transport Co., Ltd. (NCRTC) and the New Development Bank (NDB) signed a loan agreement to provide 5 Billion dollars in loans. Highlights: ♦ The Project is an 82.15 km long semi-high-speed railway corridor under construction, connecting Delhi-Ghaziabad-Meerut. ♦ It is one of the three rapid rail corridors planned for the first phase of the Regional Rapid Transit System (RRTS) project of the National Capital Region Transportation Corporation (NCRTC). ♦ The MRT system will provide a fast, reliable, safe and comfortable public transportation system in the national capital area. ♦ High-speed connections will lead to the balanced economic development of the entire region, thereby bringing economic benefits to the entire social class and many development nodes, rather than all economic activities occurring in one place. ♦ This will help reduce traffic congestion and total emissions in the NCR transportation sector. New Development Bank: It is a multilateral development bank. The four BRIC countries (Brazil, Russia, India, China and South Africa) were co-founded at the 6th BRIC Summit in Fortaleza, Brazil in 2014. Goal: Support the infrastructure and sustainable development of the BRICS and other emerging economies with insufficient service levels to achieve faster development through innovation and cutting-edge technologies. Headquarters: Shanghai, China. In 2018, the New Development Bank was granted observer status in the United Nations General Assembly.

    Inflation Data for October was Released

    64 days ago
    The wholesale price inflation data for the month of October 2020 was released. Highlights: ♦The wholesale price-based inflation is measured by the Wholesale Price Index (WPI). ♦Wholesale Inflation rose to its highest level in eight months, reaching 1.48% in October 2020, compared with 0% in October 2019 and 1.32% in September 2020. ♦Wholesale price inflation data was released by the Ministry of Industry and Commerce. ♦The inflation rate for manufactured goods reached a 19-month high of 2.1 months, and the core inflation rate rose to the highest level in 18 months at 1.7%. ♦Core inflation excludes volatile commodities from the commodity basket that tracks “overall inflation”.  ♦These volatile commodities mainly include food and beverages (including vegetables) as well as fuel and light oil (crude oil). Inflation: Inflation denotes to the increase in the price of most goods and services that are used daily or daily, such as food, clothing, housing, entertainment, transportation, consumer necessities, etc. It measures the average price change of a basket of goods and services over time. Inflation indicates a decline in the purchasing power of a country's currency unit. This may eventually lead to a slowdown in economic growth. However, moderate inflation is needed in the economy to ensure that production is promoted. In India, the inflation rate is mainly measured by two main indexes-WPI (Wholesale Price Index) and CPI (Consumer Price Index), which measure price changes at the wholesale and retail levels respectively. Wholesale Price Index: The Wholesale Price Index measures the changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses. Published by the Office of Economic Adviser, Ministry of Commerce and Industry. It is the most widely used inflation indicator in India. Major criticism for this index is that the general public does not buy products at wholesale price. The base year of All-India WPI has been revised from 2004-05 to 2011-12 in 2017.

    DIPAM Signs an Agreement With World Bank

    64 days ago
    Department of Investment and Public Asset Management - DIPAM signs an agreement with World Bank for advisory services on asset monetization. Highlights: ♦According to the agreement, the World Bank will provide DIPAM with consulting services on asset monetization. ♦DIPAM’s mission is to promote the monetization of the government’s CPSE’s non-core assets in strategic investments or closures and enemy assets worth 1 billion rupees and above. ♦DIPAM has a framework for monetizing non-core assets. ♦The World Bank consulting project approved by the Minister of Finance aims to analyze India’s public asset monetization, benchmark India’s institutions and business models against international best practices, and support the development of business guidelines and the ability to implement these guidelines. ♦The project is expected to promote and accelerate the monetization process of non-core assets and help release the value of these unused/used assets, which may greatly increase financial resources for further investment and growth.

    IFSC Authority approves the International Financial Services Centres Authority (Banking) Regulations, 2020

    67 days ago
    International Financial Services Centres (IFSC) Authority approves the International Financial Services Centres Authority (Banking) Regulations, 2020. Highlights: ♦ Setting out the prerequisites for setting up IFSC Banking Units (IBUs).  ♦ Allowing people occupant outside India (having total assets at least USD 1 Million) to open unfamiliar money accounts in any uninhibitedly convertible cash at IFSC Banking Units (IBUs).  ♦ Allowing people inhabitant in India (having total assets at least USD 1 Million) to open unfamiliar money accounts in any unreservedly convertible cash at IFSC Banking Units (IBUs) to embrace any passable current record or capital record exchange or any mix thereof under the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India.  ♦ Setting out the reasonable exercises of IBUs including credit upgrade, credit protection, and deal, acquisition of portfolios, take part in figuring and relinquishing of fare receivables and attempt gear renting, including aeroplane renting.  ♦ Allowing the Authority to decide the business that a Banking Unit might be allowed to direct in INR with people occupant in India and people inhabitant outside India, subject to settlement of the budgetary exchange comparable to such business in unreservedly convertible unfamiliar money.

    OPEC Plus Oil Output Deal Adjusted To Balance The Market

    67 days ago
    After news of a highly effective Pfizer vaccine against Covid-19 and Saudi Arabia’s assurance that an OPEC+ oil output deal could be adjusted to balance the market, Oil prices have jumped. Highlights: ♦ Opec plus refers to the alliance of crude producers, who have been undertaking corrections in supply in the oil markets since 2017.  ♦ OPEC plus countries include Malaysia, Mexico, Oman, Russia, Azerbaijan, Bahrain, Brunei, Kazakhstan,  South Sudan and Sudan. ♦ The OPEC -  Organization of the Petroleum Exporting Countries was founded in Baghdad, Iraq with the signing of an agreement in Sept 1960 by 5 countries namely, Iraq, Kuwait, Saudi Arabia Venezuela and the Islamic Republic of Iran. ♦ These countries to become the Founder Members of the Organization. OPEC is a permanent and intergovernmental organization. ♦ OPEC's aim is to co-ordinate and unify petroleum policies among Member Countries, to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry. ♦ Headquarters of OPEC is in Vienna, Austria. ♦ Membership of Organization of the Petroleum Exporting Countries is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.  

    Revenue from the Commercial Coal Mining Auction is Collected

    72 days ago
    The states of India is to gather 6,656 Crores of annual revenue from the nation’s first commercial coal mining auction. Coal mines are spread over the five states of India. Highlights: ♦ Prime Minister Modi had launched India’s first auction of coal mines for commercial mining in June 2020. ♦ Out of 38 coal mines put on auction, financial bids were received for 19 coal mines. ♦ The average success rate of the previous coal auctions remained at nearly 30% as only 35 mines could be auctioned out of 116 mines put on auction during the last 10 tranches. ♦ Almost 65% of bidders were from the ‘non-end user’ category like Real Estate, Infrastructure, Pharma, etc., which is a positive sentiment shared by the industry after the removal of the ‘End Use’ criteria from the bidding process. ♦ Nearly, 42 companies participated in the auction, out of which 40 were private players. ♦ Out of these successfully auctioned 19 mines, 11 are opencast, 5 are underground mines and the remaining 3 are a mix of underground and opencast mines.  ♦ These mines are spread over the five states of Madhya Pradesh, Chhattisgarh, Odisha, Jharkhand and Maharashtra and have a consolidated Peak Rated Capacity (PRC) of 51 Million Tonnes Per Annum (MTPA).

    Finance Commission Submitted the Report to the President

    72 days ago
    The 15th Finance Commission submits the report for 2021-22 to 2025-26 to the President. The Finance Commission was supposed to provide its recommendations on many particular, unique and wide-ranging issues in its terms of reference. Highlights: ♦ Except for the vertical and horizontal tax devolution, disaster management grant, local government grants, the Commission was also supposed to evaluate, examine and recommend performance incentives for States in many areas like the power sector, adoption of DBT, solid waste management, etc. ♦ The Finance Commission also needed to examine whether a separate mechanism for funding of defence and internal security ought to be set up and if so how such a mechanism could be operationalised. ♦ The submitted report has been categorised in 4 volumes.  ♦ Volume 1 and 2, as in the past, contain the main report and the accompanying annexes. ♦ Volume 3 is devoted to the Union Government and examines key departments in greater depth, with the medium-term challenges and the roadmap ahead. ♦ Volume 4 is entirely about the States. The Commission has observed the finances of each and every State in great depth and has come up with State-specific considerations to check the key challenges that individual States face. ♦ The Report will be seen in the public domain once it is tabled in the Parliament by the Union Government along with explanatory memorandum/action taken report on the recommendations contained in the Report.

    Shortfall of GST

    76 days ago
    Rajasthan took a decision to go with Option-1 to meet the GST implementation shortfall. Rajasthan has opted for the Union Ministry of Finance's first option in August 2020 to face the shortfall in revenue coming out of GST implementation. Highlights: ♦ A total of 22 states and 3 Union Territories have opted for Option 1. The States who choose Option-1 to receive the amount of shortfall arising out of GST implementation through a unique borrowing window put in place by India's Government. ♦ The window has been operationalized at present, & the Government of India (GoI) already borrowed Rs.12,000 crores for the States in two instalments, that have been given on to the states and Union Territories that opted for it.  ♦ The Indian States that have opted for Option 1 are Assam, Bihar, Goa, Gujarat, Andhra Pradesh, Arunachal Pradesh, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Haryana, Himachal Pradesh, Karnataka, Nagaland, Odisha, Tamil Nadu, Uttar Pradesh, Uttarakhand, Rajasthan, Sikkim and Tripura,   ♦ Union Territories that have opted this Option are Jammu & Kashmir, Puducherry, and Delhi.

    International Financial Services Centres Authority (IFSCA) prescribes regulatory framework for REITs and InvITs in IFSC

    92 days ago
    The IFSCA - International Financial Services Centres Authority (IFSCA), to develop the financial products and services in the Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC) has prescribed the regulatory framework for Real Estate Investment Trusts (REITs) & Infrastructure Investment Trusts (InvITs) in IFSC. Highlights: ♦ IFSCA has permitted global participants that are REITs & InvITs incorporated in FATF compliant jurisdictions to list on the stock exchanges in GIFT IFSC. InvITs have been allowed to raise funds through private placements also.  ♦ The REITs & InvITs registered in IFSC have been permitted to invest in real estate assets and infrastructure projects, respectively in IFSC.  ♦ The REITs and InvITs that are listed in any of the permissible jurisdictions other than IFSC (currently USA, Japan, South Korea, United Kingdom excluding British Overseas Territories, France, Germany, Canada and India) or India have been permitted to list and trade on the recognised stock exchanges in IFSC, subject to compliance with their respective laws of the home jurisdiction. ♦ The listing of REITs and InvITs in IFSC shall be following the requirements of the stock exchanges in IFSC. ♦ The entities in IFSC can participate and benefit from the growth of real estate and infrastructure sector in international jurisdictions.

    IFSCA introduces Framework for Regulatory Sandbox to tap into innovative FinTech solutions

    94 days ago
    The International Financial Services Centres Authority (IFSCA), to develop a world-class FinTech hub at the IFSC located at GIFT City in Gandhinagar (Gujarat, India), endeavours to encourage the promotion of financial technologies (‘FinTech’) initiatives in financial products and financial services across the spectrum of banking, insurance, securities and fund management. Highlights: ♦ In the Sandbox framework, entities operating in the capital market, banking, insurance and financial services space shall be granted facilities to experiment with innovative FinTech solutions in a live environment and also can be with a limited set of real clients for a particular time frame.  ♦ These features of the framework shall be done with necessary safeguard measures for investor protection and risk mitigation.  ♦ The Regulatory Sandbox will within the IFSC located at GIFT City. ♦ The organisation shall assess the applications and extend suitable regulatory relaxations to begin limited required testing in the Sandbox. ♦ The details like eligibility criteria, the application and approval process and other operational aspects of the Sandbox  will be available in the circular. ♦ The Innovation Sandbox will be managed and facilitated by the MIIs operating within the IFSC.

    PFC and JKPCL signs agreement for Liquidity Infusion for Jammu and Kashmir UT

    97 days ago
    Government-owned Power Finance Corporation Ltd (PFC), India's leading NBFC, has sanctioned Rs.2790 crore to Jammu Kashmir Power Corporation ltd (JKPCL) for clearing its outstanding dues. Highlights: ♦ PFC and JKPCL signed and exchanged an agreement for Liquidity Infusion Scheme under "Aatmanirbhar Bharat Abhiyaan" for the Jammu and Kashmir Union Territory.  ♦ The money sanctioned under the scheme will be used to clear the outstanding dues of CPSU, GENCOs & TRANSCOs, IPPs and RE Generators on March 31 2020. ♦ The exchange agreement was signed in the presence of Shri RohitKansal, Principal Secretary, PDDalong with senior officers from JKPDD, KPDCL, JPDCL, PFC & REC. ♦ In May, the Government announced an Rs.90,000 crore liquidity infusion for discoms under which these utilities would get loans at economical rates from PFC and REC.  ♦ This scheme was an initiative of the Government to help gencos to remain afloat. Later, the liquidity infusion package was increased to Rs.1.2 lakh crore.

    National Fish Farmers Day 2020 Obseved on 10th July

    195 days ago
    63rd National Fish Farmers Day India celebrates 10th July every year as the "National Fish Farmers Day" to honor the fish farmers, aquapreneurs& fisher folks in recognition of their accomplishments in the field and their contribution in the growth of the fisheries sector in the country. This year it was 63rd National Fish Farmer's Day. On July 10th, the Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying in association with the National Fisheries Development Board (NFDB) hosted a webinar on the occasion of National Fish Farmers Day. Background History: Every year, on 10 July, the National Fish Farmer's Day is celebrated in memory of scientists Dr. K. H. Alikunhi and Dr. H.L. Chaudhury who successfully demonstrated induced breeding (Hypophysation) technology in Indian Major Carps on 10 July 1957 at the former CIFRI Pond Culture Division in Cuttack, Odisha. (presently Central Institute of Freshwater Aquaculture, CIFA, Bhubaneswar). The event aims to draw attention to changing the way the country manages fisheries resources to ensure sustainable stocks and healthy ecosystems. The event is celebrated every year by congratulating outstanding farmers, aquapreneurs, and farmers in appreciation of their accomplishments in the field and their contribution to the development of the country's fisheries sector. Apart from officials, scientists, professionals, entrepreneurs, and stakeholders, fishermen, and fish farmers from across the nation will participate in the event. About NFBD Webinar: On  July 10th the Department of Fisheries, Ministry of Fisheries, Animal Husbandry, and Dairying in association with the National Fisheries Development Board (NFDB) hosted a webinar on the occasion of National Fish Farmers Day. Shri Giriraj Singh, Union Minister for Fisheries, Animal Husbandry and Dairying, Shri P. C. Sarangi, Minister of State for Fisheries, Animal Husbandry and Dairying, Dr. Rajeev Ranjan, Secretary, Department of Fisheries, Government of India and senior officials from the Department of Fisheries graced the occasion. Interacting with fishermen, officials, scientists, entrepreneurs at various locations across the country, Union Minister for Fisheries, Animal Husbandry and Dairying, Shri Giriraj Singh observed that to consolidate the achievements of the Blue Revolution and pave the way from NeeliKranti to ArthKranti, under the leadership of Prime Minister Shri Narendra Modi The "Pradhan MantriMatsyaSampadaYojana" (PMMSY) has been launched with the highest investment ever of Rs. 20,050 crore over the next five years in order to realize its goal of doubling the farmer 's income. This scheme would tackle critical gaps in fish production and sustainability, efficiency, technology, post-harvest infrastructure and management, improving and enhancing the value chain, traceability, creating a comprehensive system for fisheries management and welfare for fishermen. Shri Giriraj Singh said that providing ‘Quality Seed’ of fish is very important in enhancing production and productivity in the country.  On the occasion of 'National Fish Farmers Day,' Shri Giriraj Singh announced that the NFDB, in collaboration with the NBFGR, will undertake the work of developing 'Fish Cryobanks' in various parts of the world, which will promote the availability of 'fish sperms' of desired species to fishermen at all times. This will be the first time in the world when "Fish Cryobank" will be created, which can bring a revolutionary change in the country's fisheries sector to boost fish production and productivity, thereby enhancing prosperity among the fishermen.  

    TVS acquires Britain iconic sporting motorcycle brand Norton

    279 days ago
    TVS Motor Company announced the acquisition of the UK’s most iconic sporting motorcycle Norton for £16 million, by acquiring certain assets of Norton Motorcycles (U.K.)  The brand is known for its classic models and eclectic range of luxury motorcycles, ranging from the authentic retro classic reboots. Finally TVS Motor Singapore Pte. Ltd signed an asset purchase agreement with Norton Motorcycles Holdings Ltd and Norton Motorcycles (UK) Ltd TVS Motor enhanced its cost-reduction measures. The focus would be on developed markets. The company has committed to absorbing all 55-60 employees. Due to the challenges it had in the last few years, the firm feels the scale-up potential to create value is quite large. TVS is excited about existing and upcoming products at Norton Motorcycles, including Commando, Dominator, and V4 RR.

    IMF Chief confirms World economy to suffer severe recession in 2020

    279 days ago
    IMF chief Kristalina Georgieva confirmed the world economy was already sluggish before the coronavirus outbreak now bound to suffer a "severe recession" in 2020. Addressing the Development Committee Meeting during the annual Spring Meeting of the International Monetary Fund (IMF) and the World Bank, the IMF Managing Director said a massive global contraction in the first half of this year was inevitable. She said the coronavirus pandemic hit the world economy when it was already in a fragile state as it was weighed down by trade disputes, policy uncertainty, and geopolitical tensions. The global coronavirus outbreak is a crisis that is like no other and poses daunting challenges for policymakers in many emerging markets and developing economies (EMDEs), especially where the pandemic encounters weak public health systems, capacity constraints. Countries that were affected early-such as China, South Korea, and Italy-have suffered massive contractions in manufacturing activity and services, exceeding the losses recorded at the onset of the global financial crisis. The idea of a trade-off between saving lives and saving livelihoods is a false dilemma.

    CBDT refunds over five thousand 204 crore rupees to help MSME

    279 days ago
    CBDT informed the Income-tax refunds are obtained over eight lakh small businesses worth over five thousand 204 crore rupees issued in the last ten days. Income tax refunds will help MSME to carry on their business activities without pay cuts and layoffs in COVID-19 pandemic situations. Income tax department issued nearly 14 lakh refunds up to five lakh each to date to help taxpayers.CBDT will issue refunds worth of Rs.760 crore. CBDT gave its request to taxpayers to respond regarding reconciliation queries about outstanding tax demands. Around one lakh 74 thousand cases, responses are awaited from taxpayers

    IMF reports that COVID-19 pandemic will bring Asia's 2020 growth to halt for 1st time in 60 years

    281 days ago
    The International Monetary Fund (IMF) in its report on the Asia-Pacific region stated that Asia's economic growth in 2020 will grind to a halt for the first time in 60 years due to the COVID-19 pandemic. Report Highlights: ♦ The IMF's Asia and Pacific Department directed the policymakers to offer targeted support to households and firms hardest-hit by travel bans, social distancing policies and other measures aimed at containing the pandemic. ♦ IMF forecasted a 7.6% expansion in Asian economic growth in 2021 on the assumption that containment policies succeed. It also said that the outlook is highly uncertain. ♦ It also stated that The impact of the coronavirus on the region will be severe, across the board, and unprecedented. ♦ It suggested that the Asian countries need to use all policy instruments in their toolkits. ♦ Asia is set to fare better than other regions that suffered economic contractions. The projection is expected to be worse than the 4.7% average growth rate throughout the global financial crisis. International Monetary Fund (IMF): Formed on: 27 December 1945 Headquarters: Washington, D.C., The US Managing Director: Kristalina Georgieva Chief Economist: Gita Gopinath Membership: 189 countries Official language: English IMF promotes international monetary co-operation and facilitates international trade. It aims to foster sustainable economic growth, make resources available to members experiencing balance of payments difficulties.

    World Bank forecasts FY21 India growth at 1.5-2.8 percent

    283 days ago
    The World Bank in its "South Asia Economic Focus report" said that India's economy is expected to grow 1.5% to 2.8% in the 2020-21 fiscal year which started on 1 April 2020. It stated that India might record its worst growth performance since the 1991 liberalization in the current fiscal year 2020-21 due to the coronavirus outbreak which severely disrupted the economy Report Highlights: ♦ The report estimated India will grow 4.8% to 5% in 2019-20 fiscal that ended on 31 March. ♦ COVID-19 pandemic will further slow down the Indian economy which was already slowing due to persistent financial sector weaknesses.  ♦ It also stated that growth is expected to rebound to 5% in the Fiscal year 2022 (FY 2021-22) when the impact of COVID-19 dissipates.  Other forecasts: Other forecasts include the Asian Development Bank (ADB) which said that India's economic growth is slipping to 4% in the current fiscal. S&P Global Ratings slashed India's GDP growth forecast for the country to 3.5% from a previous downgrade of 5.2%. Fitch Ratings has estimated India's growth at 2% and India Ratings & Research has revised its FY21 forecast to 3.6% from 5.5% earlier.

    Fiscal deficit may increase in March despite nationwide lockdown

    287 days ago
    Data released by the Government of India stated that India's fiscal deficit stood at 5.07% of gross domestic product (GDP) in February 2020. The report stated that the government might not meet its revised target of 3.8% of GDP due to the COVID-19 pandemic. Report highlights: ♦ The fiscal deficit target was increased to Rs.7.66 lakh crore (3.8%) of the GDP in July 2019 by invoking the escape clause under the Fiscal Responsibility and Budget Management Act (FRBM). ♦ As per the data from the Controller General of Accounts (CGA), India's fiscal deficit reached Rs.10.36 lakh crore at the end of February 2020.  ♦ It also stated that government revenues are likely to take a substantial hit in March, despite nationwide lockdown. ♦ It also highlighted that expenditures for the month should rise due to various costs arising from the virus containment efforts and enforcing the lockdown. ♦ According to the report, the state governments received about Rs.90,000 crore as tax devolution and around Rs.29,000 crore for various schemes in FY20. 

    CCI approved acquisition of GMR Kamalanga Energy Limited by JSW Energy Limited

    289 days ago
    The Competition Commission of India (CCI) has approved the acquisition of GMR Kamalanga Energy Limited, the target, by JSW Energy Limited, the acquirer. The acquisition was done under Section 31(1) of the Competition Act, 2002 on 7 April. Acquisition: As per the move, JSW Energy Limited acquires the 100% shareholding of the GMR Kamalanga Energy Limited. JSW has a power generation capacity of 4,541 MW comprising of a portfolio of thermal (3,140 MW), hydro (1,391 MW) and solar (10 MW). GMR Kamalanga Energy Limited is engaged in the generation of power through its coal-based thermal power plant at Kamalanga village, Odisha. JSW Energy Limited: Founded: 1994 Headquarters: Mumbai, India Chairman: Sajjan Jindal JSW Energy is in various areas of power including Generation, Transmission, and Trading. The operational generating capacity of JSW Energy is 5681 MW. The products of the company include Electricity Generation and transmission, Hydroelectricity, energy trading, Mining, Power Plant Equipment Manufacturing.

    Tata Power commissioned Shuakhevi HPP in Georgia

    297 days ago
    Tata Power Company's joint venture (JV) with Norway's Clean Energy Invest (CEI), and International Financial Corporation (IFC) began its commercial operation of a 178 megawatt (MW) hydropower project (HPP) in Georgia. The information was given by the Tata group utility on 30 March.  About Joint Venture: ♦ Adjaristsqali Georgia LLC, a joint venture company, is setting up one of the largest projects in Georgia at an overall project cost of approximately $500 million. Once the 178 MW-Shuakhevi HPP is completed, the JV is planning to commission a 9 MW units, namely Skhalta Hydro Power project.  ♦ The project is expected to generate around 450 GWh of clean energy to reduce the emission of greenhouse gases (GHG) by more than 200,000 tonnes a year. The commercial operation of the Shuakhevi HPP in Georgia is an important milestone for Tata Power and its partners.

    CRISIL cuts GDP growth forecast to 3.5 percent

    301 days ago
    CRISIL has cut its base-case Gross Domestic Product (GDP) growth forecast for fiscal 2021 to 3.5% from 5.2% expected earlier. Highlights: ♦ The global growth forecasts have reduced geometrically due to the COVID-19 pandemic spread geometrically. ♦ It highlighted that the world economy, unlike the Global Financial Crisis of 2008, has jeopardized financial stability and brought enormous human suffering. ♦ CRISIL has cut ifs early forecast of 5.2% GDP growth to 3.5% for fiscal 2021. But it has worsened notably. ♦ The pandemic in India poses a material risk to the India economic outlook. ♦ It also reported that the slump in growth will be concentrated in the first half of the next fiscal, while the second half should see a mild recovery. ♦ It highlighted that the inability to control the pandemic and extension of the lockdown will aggravate supply and demand shocks. CRISIL: Earlier known as: Credit Rating Information Services of India Limited Founded on: 1987 Headquarters: Mumbai, Maharashtra CFO Intern: Anurag Shukla MD & CEO: Ashu Suyash

    UNCTAD stated that FDI inflows dropped by 15 percent due to CoronaVirus outbreak

    317 days ago
    The UN Conference on Trade and Development (UNCTAD) has issued a warning that global foreign direct investment (FDI) could drop by up to 15% on previous estimates due to the Coronavirus outbreak. Reports: ♦ The downward pressure on FDI will be -5% to -15%, as compared to previous forecasts that projects marginal growth in the FDI trend for 2020-2021. ♦ UNCTAD stated that the impact on FDI would be concentrated in the countries that are most severely hit by the Coronavirus outbreak. The economic impact of supply chain disruptions will affect investment prospects in other countries. ♦ It also projected a stable level of global FDI inflows in 2020-2021 with a potential increase of +5%, which is relatively marginal for FDI.  ♦ UNCTAD highlighted that the top 5000 MNEs, which accounts for a significant share of global FDI, have shown downward revisions of 9% due to Covid-19. Also, the automotive industry with -44%, airlines with -42% and energy and basic materials industries with -13%. The developing country multinational enterprises (MNE) profit guidance has been revised downwards by 16%.

    World economy faces worst performance since the past decade

    327 days ago
    Bank of America Corporation (BofA) economists stated that the world economy is heading for its worst performance since the 2009 financial crisis. The decline is due to the increasing spread of coronavirus across the world. The economists stated that they are expecting 2.8% global growth in 2020, which is the weakest since 2009. The forecast did not include a global pandemic that would basically shut down economic activity in many major cities. BofA forecast about the financial crisis: Bank of America: Founded on: 1998 Founded by: Amadeo Giannini Headquarters: Charlotte, North Carolina, US Chairman and CEO: Brian Moynihan

    Air India buyers, BPCL not to get free to shed excess staff: DIPAM secretary

    353 days ago
    Purchasers of losses making aircraft Air India and oil firm Bharat Petroleum Corporation Ltd (BPCL) won't get a free hand to shed an abundance workforce as the legislature will work in confident assurance to representatives in the offer deal understanding. In a meeting with the secretary of the Department of Investment, Public Asset Management (DIPAM) mentioned the legislature would follow a two-organize offering process for selling its whole holding in Air India and BPCL. The first fundamental enthusiasm from potential bidders is welcomed, trailed by they being given access to information room on the organizations for due tirelessness. In the subsequent stage, value offers are welcomed. While on account of Air India, the declaration of intrigue (EoI) has been welcomed by March 17. An offer looking for the equivalent for BPCL is probably going to be skimmed in the following, not many days. Inquired as to whether the bidders will get a free hand to right-estimate the organizations after the obtaining, He didn't give subtleties of the conditionalities. A SPA will mark with the acquirer who offers the most elevated offer for purchasing out government stake.  Air India The administration is selling its whole 100 percent stake in Air India yet needs viable control to remain with Indian nationals. The carrier, which began as a Tata Airlines in 1932 and was later gained by the administration, has not made benefits since 2007. It has a total obligation of Rs 60,074 crore, of which bidder needs to takeover Rs 23,286.5 crore. On account of BPCL, the administration is selling its whole 53.29 percent stake in the organization that will give purchasers prepared access to 14 percent of India's oil refining limit and around one-fifth of the fuel piece of the overall industry on the planet's quickest developing vitality showcase.  Officials' associations of blue-chip open part endeavors (PSUs) have restricted the administration's choice to privatize India's second-greatest oil firm BPCL, saying family silver worth Rs 9 lakh crore is being sold for a small amount of the sum.  Privatization BPCL has a market capitalization of about Rs 1 lakh crore, and the administration stake at current costs is worth about Rs 54,000 crore. The effective bidder will likewise need to make a bright idea to different investors for procuring another 26 percent at a similar cost. Privatization of Air India and BPCL is fundamental for meeting the record Rs 2.1 lakh crore target Finance Minister Nirmala Sitharaman has set from disinvestment continues in the Budget for 2020-21.  This is the second venture available to be purchased from Air India after the bombed endeavor in 2018. Misfortunes, in any case, have some rewarding resources that incorporate prized spaces at London's stifled Heathrow air terminal, an armada of over 100 planes, and a massive number of prepared pilots and team. BPCL works four treatment facilities in Mumbai, Kochi (Kerala), Bina (Madhya Pradesh), and Numaligarh (Assam) with a joined limit of 38.3 million tons for each annum, which is 15 percent of India's complete refining limit of 249.4 million tons. While the Numaligarh treatment facility will be cut out of BPCL and offered to a PSU, the new purchaser of the organization will get 35.3 million tons of refining limit.  It additionally claims 15,177 petroleum siphons and 6,011 LPG wholesaler offices in the nation. Also, it has 51 LPG (melted oil gas) packaging plants. The organization disseminates 21 percent of oil-based goods expended in the country by volume as of March this year and has more than a fifth of the 250 aeronautics fuel stations in the nation.

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