NEW DELHI: The government has mopped up nearly 80% more road and infrastructure cess levied on petrol and diesel compared to what it had estimated for 2020-21.
the receipts on this account increased to nearly Rs 2.3 lakh compared to 1.3 lakh crore
The entire allocation of Rs 50,000 crore for Jal Jeevan Mission comes from this
India will also overtake the combined EU in steel production within this decade. India already exceeds combined North America (US+Canada+Mexico) in steel production. Sometime soon - perhaps this month itself - India should hit the 10MT/month steel production mark. It ended 2020 with 9.8MT/month in December.India will overtake the European Union as the world’s third-largest energy consumer by 2030, the International Energy Agency (IEA) said on Tuesday as it forecast India accounting for the biggest share of energy demand growth over the next two decades.
In its India Energy Outlook 2021, IEA saw primary energy consumption almost doubling to 1,123 million tonnes of oil equivalent as the Gross Domestic Product (GDP) expands to USD 8.6 trillion by 2040. India at present is the fourth-largest global energy consumer behind China, the United States and the European Union.
A Budget to rebuild India: Baton handed over to private sector, now implementation awaitsIndustrial production grew by 1 per cent in December, entering the positive territory after a month gap, mainly due to better performance of the manufacturing sector, official data showed on Friday.
The manufacturing sector — which constitutes 77.63 per cent of the index of industrial production (IIP) — recorded a growth of 1.6 per cent in December 2020, as per the data released by the National Statistical Office (NSO).
Mining sector output declined by 4.8 per cent in December 2020. However, power generation grew by 5.1 per cent.
The index had grown by 0.4 per cent in December 2019.
Capex spending of over Rs.11 lakh cr is huge - around $160 billion.The theorists were looking at a counter-cyclical response in terms of higher liquidity in the system. However, this budget, very wisely, has chosen to accelerate the reforms agenda, which has been a critical component of the government’s pandemic response. It has also put a higher focus on capital expenditure away from populist measures like increasing allocation to direct benefit schemes which will help build productive national assets. In addition, it has also kept the tax regime largely stable; a big signal to the investors, as it removes uncertainties.
The announcement has made a very bold move of privatisation of a couple of Banks and an Insurance company. This has been on the agenda for the past two decades. Privatisation would bring more capital and management expertise into these organisations and improve credit flow into the economy. The FDI cap for the Insurance sector has also been raised to 74%. These steps, coupled with efforts to deepen the Bond market, would reduce India’s risk perception. This will bring longer tenure capital and help lower interest rates. A single code for financial markets would make life easier for market participants, reduce volatility and reduce regulatory burden.
Reform announcements in the Energy sector have gone relatively unnoticed. Flexibility to a consumer to choose from a supplier other than the discom is again a bold measure. This has the prospect of effectively separating the distribution infrastructure from the power supply in the economic sense. It should lead to private capital in the power distribution sector. Similarly, the announcement of a comprehensive system operator for gas transmission should facilitate the smooth flow of natural gas across the country. With the development of commodity exchange for gas, one can expect that a functioning and economically viable gas system would be in place for the country. The budget has taken the right step, but energy sector reforms are difficult to implement. It calls for persistence; otherwise, investors may again be disappointed.
The finance minister has increased allocation to capital expenditure by 34.5% to Rs 5.54 lakh crores. Since autonomous organisations, such as NHAI also raise their own finances, total Capex this year is likely to be upwards of Rs. 11 lakh crore. Platform available in the form of National Infrastructure Pipeline (NIP) should help to channelise this resolve.
FM has also laid lots of emphasis on REITS and INVITs. With the removal of TDS on dividends, a viable tax structure is in place for them. Given global uncertainties, it’s unlikely that private investment would flow into greenfield infrastructure projects. Asset monetisation offers an excellent opportunity to access this capital, as cash flows in these projects are relatively stable. With the framework, in place, it should be easy to monetise completed projects. However, one would like to see greater deal flow.
I think there was another round of hike in fuel prices yesterday...fifth one so farAmbar wrote:No more increase in cess and taxes on fuel, there's already enough anger everywhere about the recent fuel price hikes.
Where is it cheaper to buy rice? At a village market in India, a country where 377 million people live below the poverty line? Or on the trading screens of the Chicago Mercantile Exchange?
Shockingly, it’s often the latter.
Britain’s landed gentry sought to protect its wealth and prerogatives by demanding high tariffs and bans on grain imports, resulting in the Corn Laws imposed from 1815 to 1846. Those laws got repealed only after manufacturing-led urban interest groups became powerful in their own right, helping tilt the balance.
the Narendra Modi government at the Centre has finalized the privatisation of Rashtriya Ispat Nigam Ltd (RINL), the public sector corporate entity of Vizag Steel Plant (VSP).
Notably, despite its commercial activity on par with any of its private competition, VSP had incurred heavy losses in 2017 and 2018, but recovered with a net profit of ₹96.71 crore in 2019. The PUS made consistent profits between 2002 and 2015.
The losses were majorly due to the lack of captive mines due to which the RINL is procuring the iron ore supplies at market price, resulting in a loss of at least ₹5,000 on every ton produced.
Siemens Healthcare, Sahajanand Medical Technologies, Nipro India Corporation and Wipro GE Healthcare are among the companies selected under the Production Linked Incentive (PLI) scheme for the promotion of domestic manufacturing of medical devices.
In a bid to boost domestic manufacturing and attract large investment in domestic manufacturing of medical Device Sector, the Department of Pharmaceuticals had launched a Production Linked Incentive (PLI) Scheme with a total financial outlay of Rs.3,420 cr. for the period 2020-21 to 2027-28.
Domestic medical devices market in India is heavily dependent on imports which contribute to more than 85% of the market. India’s domestic medical devices market in 2019-20 was estimated to be ₹75,611 crore of which imports were worth ₹41,412 crore. While electronics and equipment accounted for 56 per cent of imports, followed by consumables and disposables which accounted for 18 per cent and surgical equipment which constituted 10 per cent of total medical devices import.
Foreign portfolio investments (FPI), which have touched record highs amid the pandemic, have continued to pour into the Indian equity market post the Union Budget for FY22.
Net FPI inflow into equities in the month of February has been Rs 20,593 crore, as per NSDL data.
Since January, FPIs have invested over Rs 39,000 crore.
Maps and accurate geospatial data are crucial for national infrastructure projects such as linkages of rivers, creation of industrial corridors and deploying smart power systems.Emerging vibrant technologies like Digital India, Smart Cities, eCommerce, autonomous drones, delivery, logistics and urban transport require a leap forward in mapping with greater depth, resolution and precision. In every economic endeavor, spanning agriculture, finance, construction, mining and local enterprise, India’s farmers, small businesses and corporations alike stand to gain tremendously from the application of innovative technologies based on modern geospatial data technologies and mapping services.
The Hon’ble Prime Minister observed however, that the existing regime imposed significant restrictions on the mapping industry - from creation to dissemination of maps, requiring Indian companies to seek licenses, follow a cumbersome system of pre-approvals and permissions. Compliance with these regulatory restrictions has subjected startups in India to unnecessary red tape, hindering Indian innovation in map technologies for decades.
To realise India's vision of Atmanirbhar Bharat and the goal of a 5 trillion-dollar economy, the regulations that apply to geospatial data and maps henceforth stand radically liberalised. The Department of Science and Technology is announcing sweeping changes to India’s mapping policy, specifically for Indian companies. What is readily available globally does not need to be restricted in India and therefore geospatial data that used to be restricted will now be freely available in India. Furthermore,our corporations and innovators are no longer subject to restrictions nor do they require prior approvals before they collect, generate, prepare, disseminate, store, publish, update digital Geospatial Data and Maps within the territory of India.
Our startups and mapping innovators will be trusted to self-certify, apply good judgement and be reliedupon to demonstrate adherence to guidelines. In addition, measures to promote the development of Indian geospatial innovations that take advantage of the latest map-making technologies are proposed. With the next generation of mapping technology just about coming into its own around the world, this policy will enable Indian innovators to create substantial advances in mapping ultimately making our lives easier and empowering small businesses. We look forward to India emerging as a mapping power, creating next generation indigenous maps of India and taking these new technologies to the rest of the world.
The cess is the only way for the governments to get some much needed revenue. People in our country want 0% Income tax, 0% GST, 20Rs for petrol, government pension, government health insurance, subsidized education, life long government employment, write off farmer loans. To top it up wonderful roads, trains, garbage being cleaned on time by the local government.Zynda wrote:I think there was another round of hike in fuel prices yesterday...fifth one so farAmbar wrote:No more increase in cess and taxes on fuel, there's already enough anger everywhere about the recent fuel price hikes.
The country's exports grew by 6.16 percent to $27.45 billion in January 2021 as compared to $25.85 billion in the same period last year. This was attributed to growth in pharmaceuticals, iron ore and engineering sectors.
Top five commodity groups of export, which recorded positive growth during January 2021 vis-a-vis January 2020, were other cereals (343.57 percent), oil meals (257.50 percent), iron ore (108.84 percent), cereal preparations and the miscellaneous processed item (44.88 percent), and jute manufacturing including floor covering (27.68 percent).
Meanwhile, the top 5 commodity groups of import which declined in January 2021 vis-a-vis January 2020 were petroleum, crude & products (-27.72 percent), transport equipment (25.26 percent), fertiliser, crude and manufactured (11.57 percent), metaliferrous ores and other minerals (4.57 percent) and machinery, electrical and non-electrical (1.37 percent).
The authority plans to raise Rs 20,000-25,000 crore through the SPV model, and Rs 10,000 crore through the toll-operate-transfer model in 2021-22, the official said. A second infrastructure investment trust (InvIT) worth around Rs 6,000 crore is also in the pipeline for the next financial year.
I am not sure if I understood how the SPVs will help in deleveraging NHAI's balance sheet or raising capital. If the SPV is not taking any tolling risk, and NHAI is committed to making annuity payments, then this arrangement is no different from the debt raised by NHAI on its own. Any insight will be greatly appreciated.NHAI has been keen on special purpose vehicle (SPV) as a model for monetisation. The SPV shall raise debt on its balance sheet, while NHAI will retain the operational control during construction and operation and maintenance periods. The toll on the projects housed in SPV shall be collected by NHAI and SPV shall get the annuity payments without any construction and tolling risks.
tax exemption was allowed on dividends distributed by the SPVs which were neither subject to a dividend distribution tax (DDT) in the hands of the SPVs (subject to conditions) nor any tax in the hands of the business trust and unitholders.
US e-commerce giant Amazon on Tuesday announced commencement of its first manufacturing line in India for making its Fire TV Stick devices in the country. It will partner contract manufacturer Cloud Network Technology, a subsidiary of Foxconn, and production will start later this year from Chennai.
The Union Cabinet chaired by PM Narendra Modi has approved a Production Linked Incentive (PLI) Scheme for Telecom and Networking Products with a budgetary outlay of Rs 12,195 crore, said the Ministry of Communications in a statement.
The scheme encourages export of telecom and networking products which are 'Made in India'.
Globally the telecom and networking products represent a USD 100 billion export opportunity which can be exploited by India.
There will be a minimum investment threshold of Rs 10 crore for MSMEs with incentives from four to seven per cent and Rs 100 crore for others with incentives from four to six per cent over five year above the Base Year.
With this scheme, an incremental production of around Rs two lakh crores is expected to be achieved over five years. Thus India could improve its competitiveness in manufacturing with increased value addition.