ECONOMY AFFAIRS MARCH 2016

ECONOMY AFFAIRS MARCH 2016

• PM promises 500,000 pounds for agriculture
  Given the prospects of drought in several parts of the country and the looming water scarcity because of depleting water table, Prime Minister Narendra Modi said on 27th March that the government would help construct 500,000 khet talab (farming ponds) as part of the Mahatma Gandhi National Employment Guarantee Scheme (MNREGS) to augment water for irrigation.
  
  The PM stressed the need to popularise sports as youngsters constitute 65 per cent of India's population. He said India hosting the FIFA youth world cup in 2017 was a great opportunity to take football to all corners of the country. Incidentally, football is quite popular among the youth in some of the states going to the polls in April - Assam, Kerala and West Bengal.
  
  Referring to the agriculture sector, he said water table was falling in parts of the country. He said small reservoirs should be made to conserve rainwater.
  
  In western Maharashtra, the crisis has deepened even triggering a law and order problem. According to the Groundwater Surveys and Development Agency (GSDA), the water table level has dropped to one metre in about 540 villages across 13 talukas in Pune district.
  
  The PM also asked farmers to make use of the Kisan Suvidha app to get information on farming, weather conditions and prices in wholesale markets. He also advised farmers to reduce the use of fertilisers, saying "It will also reduce costs and increase output."
  
• CSR now part of strategic decision-making: Ficci survey
   Corporate social responsibility (CSR) is fast becoming a part of strategic decision-making for companies, reveals a survey by the Federation of Indian Chambers of Commerce & Industry (Ficci). As firms comply with the Companies Act, 2013, which mandates them to spend a part of their profits on CSR activities, companies are integrating CSR reporting into their main business practices, the survey says.
  
  According to Clause 135 of the Companies Act, 2013, a company is expected to appoint a CSR committee of three or more directors, with at least one independent director (ID) on board. As many as 79 per cent of the companies that participated in the survey indicated they have an ID on board. A little less than half (49 per cent) said they had one ID, while 26 per cent cited having two.
  
  The survey was conducted between January and February among 150 companies across sectors, including public sector undertakings and multinational companies. The survey tried to gauge the involvement of management in CSR implementation, the strategy adopted by companies, how firms are identifying and implementing the projects and the broad trend in budgeting for CSR activities.
  
  A majority (77 per cent) of the companies in the survey reported an increase in their CSR budget in 2014-15, compared to 2013-14. While 12 per cent reported a decline, six per cent cited no change. Five per cent said they had made a CSR allocation in their budget for the first time.
  
  Earlier, Ficci had undertaken data analysis of the top 100 companies listed on the National Stock Exchange in collaboration with NextGen, a CSR and sustainability management company. India became the first country to strictly formalise CSR spending by making reporting of such activities obligatory.
  
  A majority of the respondents indicated ethical considerations as the primary motivation factor behind adoption of CSR. Companies are increasingly looking at integrating their businesses with the community to create shared value. Forty-nine per cent stated creation of shared value as a motivator, followed by social good compliance.
  
  Schedule VII of the Companies Act, 2013, lists down the key focus areas where firms can undertake CSR activities. On this, 21 per cent of the participating companies indicated their efforts aligned towards promoting education, special education and vocation skills. This was followed by eradicating hunger, poverty and malnutrition, promoting health care, sanitation and safe drinking water; ensuring environmental sustainability and rural development projects as the other primary work areas for companies.
  
  Interestingly, 95 per cent reported that their CSR projects were aligned with the government’s development initiatives and the top three initiatives that the companies have aligned their activities to include Swachh Bharat Abhiyan, Skill India and National Health Mission. The respondents pointed out they undertake project implementation through their company foundation or directly and the focus is clearly on community representation in implementation of the project.
  
  About 40 per cent indicated they implement projects through their company foundation and another 36 per cent said they do it directly. Also, about 65 per cent respondents reported partnering the government or another corporate for execution of projects.
  
  The respondents were also asked to indicate some details on the impact assessment of their projects. Thirty-one per cent of the companies said children were the main beneficiaries of their projects, followed by women (22 per cent) and environment (17 per cent)
  
  Key findings
  • 77% reported a hike in the CSR budget in 2014-15 vis-a-vis 2013-14
  • Half the companies indicated having one independent director on board
  • 79% have an independent director as a part of their CSR committee
  • 40% implement projects through company foundation; 36% do it directly
  • 65% partner with government or another firm for execution of projects
  • 83% companies expect an increase in their CSR spend in 2016-17
  • Children main beneficiaries, followed by women and environment
  • Problems in getting local clearances, among others, cause delays
  
  
• Defence procurement policy pushes ‘Make in India’
  The much-awaited Defence Procurement Procedure 2016 was released online in time for the Defence Expo inauguration on Monday in Goa.
  
  In DPP 2016, the Ministry of Defence has introduced a new category for acquisition — Indigenously Designed Developed and Manufactured (IDDM) — under which indigenously designed, developed and manufactured equipment must have at least 60 per cent of the components locally sourced if the design is not Indian. If the design is Indian, at least 40 per cent needs to be locally sourced.
  
  The IDDM category will be the most preferred acquisition category, according to the Ministry of Defence.
  
  The IDDM and Buy and Make Indian categories will help global OEMs and Indian companies forge partnership for co-development and co-production. The integration of Indian companies in the global supply chain will help the establishment of defence manufacturing
  
  The revised policy sought to give more prominence to defence firms operating in the MSME segment. Now, government-funded defence projects with estimated development cost of less than Rs. 10 crore will be reserved for MSMEs.
  
  The new DPP was finalised during a meeting of the Defence Acquisition Council (DAC), chaired by Defence Minister Manohar Parrikar, on March 21.
  
  Under DPP 2016, the offset level has been raised to Rs. 2,000 crore, from Rs. 300 crore currently. This is because the Centre believes that the Indian industry is not in a position to absorb large-scale offsets. The new policy seeks to fast-track defence purchases even during peace time.
  
• ADB, USAID to assist India in developing clean energy projects
  Asian Development Bank and US Agency for International Development will assist India in developing clean energy infrastructure of PPP investment models for solar parks. Finance Ministry has asked ADB to provide financing up to USD 500 million to support rooftop solar, and expand transmission to connect solar parks under solar park program.
  
• ONGC to invest $5 billion to take out hydrocarbon from KG block
  The country’s flagship explorer ONGC on 28th March unveiled plans to invest $5.076 billion to drill oil and gas from a part of its much-touted deepwater block KG-DWN-98/2 in the prolific Krishna-Godavari (KG) Basin.
  
  ONGC chairman and managing director Dinesh K Sarraf said the firm’s board has given the go-ahead on the investment plan to take out hydrocarbon from cluster-II area of the KG-DWN-98/2 block in the east coast. The block is divided into three clusters and the explorer is currently taking up the development of cluster-II, which is further divided into IIA and IIB. ONGC has alleged that Reliance Industries, which operates the neighbouring block KG-D6, has drilled out gas from the cluster-I area. At present, the PSU explorer is not taking up development of cluster I and III.
  
  The first gas from the block is expected by June 2019, while crude oil production is likely to commence by March 2020. It would take three years to achieve peak production, which is expected to be maintained for another five to six years.
  
  During peak output, the area is expected to produce 77,305 barrels per day of crude oil and 16.29 million metric standard cubic metres per day of gas.
  
  The IIA area has crude oil reserves of 94.26 million tonnes and 21.75 billion cubic metres (bcm) of natural gas. On the other hand, the IIB area is rich in gas with reserves of 12.75 bcm. ONGC plans to drill total 35 wells, comprising 15 for pumping out crude oil, 8 for gas and 11 for water injection.
  
  In order to evacuate hydrocarbon, ONGC would set up floating production, storage and offloading platform, about 430 km of sub-sea pipelines of various sizes from 6 to 22 inches, about 151 km umbilical and 10 manifolds, riser base manifolds and an onshore gas handling terminal.
  
• Govt permits 100% FDI in online market places
  The government on 29th March permitted 100 per cent FDI in the market place model of e-commerce retailing under automatic route. The decision is aimed at attracting more foreign investments. As per the guidelines issued by the Department of Industrial Policy and Promotion (DIPP) , the FDI has not been allowed in inventory-based model of e-commerce.
  
  At present, global e-tailer giants like Amazon and Ebay are operating online marketplaces in India while homegrown players like Flipkart and Snapdeal have foreign investments even as there were no clear FDI guidelines on various online retail models. To bring clarity, the DIPP has also come out with the definition of e-commerce, inventory-based model and market place model.
  
  According to notification, an e-commerce firm, however, will not be permitted to sell more than 25 per cent of the sales affected through its market place from one vendor or their group companies.
  
• Centre notifies new Aadhaar Act
  The Centre has notified the new Aadhaar Act which gives the numbers assigned by it a statutory backing for transfer of subsidies and benefits to people eligible for them.
  
  The Notification said, the Aadhaar (Targeted Delivery of Financial and other Subsidies, benefits and services) Act, 2016 will provide for efficient, transparent, and targeted delivery of subsidies, benefits and services, the expenditure for which is incurred from the Consolidated Fund of India, to individuals residing in India through assigning of unique identity numbers to such individuals.
  
  The Aadhaar Bill for this act was approved by Parliament on 16th of this month. It was tabled in Parliament as money bill. However, those individuals to whom Aadhaar number has not been assigned, the Act said that they shall be offered alternate and viable means of identification for delivery of the subsidy, benefit or service.
  
  The Aadhaar number will not be a proof of citizenship or domicile. The Act said, the UIDAI shall take special measures to issue Aadhaar number to women, children, senior citizens, persons with disability, unskilled and unorganised workers, nomadic tribes or to such other persons who do not have any permanent dwelling house and such other categories of individuals as may be specified by regulations.
  
  It has provision that both centre and state government can use Aadhaar for disbursal for benefits and subsidies. The Act provides for statutory backing to the UIDAI by providing for establishment of the Unique Identification Authority of India consisting of a Chairperson and two part time Members.
  
  The bill has penalty provision which includes imprisonment in the range of one to three years or penalty in the ranges of 10 thousand rupees to 1 lakh rupees for violation of the rules. Till date 99.64 crore Aadhaar numbers have been issued.
  
  Finance Minister Arun Jaitley had informed the Parliament this month that targeted subsidy through Aadhar cards of LPG consumers had resulted in over 15 thousand crore rupees of savings at the Centre. Four states which had started PDS delivery by a similar exercise on a pilot basis, had saved more than 2 thousand 3 hundred crore rupees.
  
• SEBI hikes FPI investment limit for govt debt
  Markets regulator, the Securities and Exchange Board of India, Sebi on 29th March decided to increase the Foreign Portfolio Investors (FPI) investment limit in central government securities to Rs 1,40,000 crore from April 4. This will boost inflows of foreign funds into Indian capital markets.
  
  It will be further increased to Rs 1,44,000 crore from 5th of July this year. Currently the existing limit is Rs 1,35,400 crore. In a circular, Sebi said there will be a separate limit for investment by all FPIs in the state development loans.
  
  The limit for long term FPIs (Sovereign Wealth Funds, Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks) in central government securities will be enhanced to Rs 50,000 crore from 4th of next month and Rs 56,000 crore on 5th of July this year. Currently, the existing limit is Rs 44,100 crore for long term FPIs.
  
• European Bank to invest Rs 33 billion for Lucknow metro
  European Investment Bank will invest Rs 33 billion for the first metro line in Lucknow. President of the bank, Werner Hoyer confirmed the European Investment Bank's commitment to support long term investment in India at the 13th India-EU summit held in Brussels on 29th March.
  
  The agreement to construct the Lucknow metro was signed yesterday by Vice President of the bank Jonathan Taylor and Manjeev Singh Puri, India's Ambassdor to Belgium, Luxembourg and European Union in the presence of Prime Minister Narendra Modi.
  
• Small savings interest cut is ‘double taxation’: panel
  The Centre’s recent move to slash the interest rate on various small saving schemes such as Kisan Vikas Patra and Public Provident Fund drew flak from the Finance Standing Committee, which termed it as a kind of ‘double taxation’.
  
  Members, cutting across party lines, told representatives of the Finance Ministry that the move will harm the salaried class, as they questioned the Centre’s decision to reduce the interest rates of such schemes.
  
  Concerns were also raised about the 1 per cent additional excise tax on non-silver jewellery. The Committee will submit its report in the next phase of the Budget session, which is scheduled to begin in the last week of April.
  
  Officials from the departments of Revenue, Finance, Expenditure, NITI Aayog and Customs participated in the meetings and presented the Centre’s stand on the demands for grants of these departments.
  
• Government to Monitor PSU Capex on Monthly Basis
  The government has decided to monitor capital expenditure of all state-owned firms on a monthly basis and use surplus generated by them for buybacks or dividend payments.
  
  It has mopped up the highest ever PSU disinvestment proceeds of Rs 25,020 crore in the 2015-16 fiscal, which ended on 31st March, aided by Rs 4,500 crore buybacks by Hindustan Aeronautics Ltd (HAL) and Bharat Dynamics Ltd (BDL). Meanwhile, officials said the government is focusing on managing PSUs professionally and is also monitoring their investment plans for better returns.
  
  HAL on March 30 did a buyback of 25 per cent of its paid up equity and free reserves amounting to about Rs 4,300 crore. HAL, which had a cash and bank balance of Rs 17,671 crore, had capex plans for just Rs 800 crore and long term borrowings of just Rs 4 crore. Its profit after tax (PAT) stood at Rs 2,388 crore. The net worth of the company stood at Rs 17.13 lakh crore, which offered it a large capacity to borrow. The company had paid dividend of Rs 480 crore.
  
  BDL, which had a paid up equity of Rs 115 crore, did a 15 per cent buy back on March 29 which netted the government Rs 200 crore. The PSU has a cash balance of Rs 3,669 crore and PAT of Rs 419 crore. BDL did not have any capex plans and had paid Rs 84 crore dividend to government.
  
  In 2015-16, the government managed to garner the highest ever disinvestment proceeds of Rs 25,020 crore. It had raised around Rs 24,500 crore in 2014-15 by selling stake in public companies; about Rs 16,000 crore in 2013-14 and Rs 23,960 crore in 2012-13. It had raised around Rs 14,000 crore in 2011-12 and over Rs 22,100 crore in 2010-11.
  
• India aims to capture 20% market share in IoT: Nasscom
   India aims to capture 20 per cent market share in Internet of Things (IoT), an emerging sector which would be worth USD 300 billion by 2020, according to Nasscom
  
  The IoT is driving the fourth wave of industrial revolution dramatically alerting manufacturing, energy, transportation, medical and other industrial sectors while emerging worldwide
  
  As the global IoT business is expected to touch USD 300 billion by 2020, India aims to capture 20 per cent market share in another five years.
  
• Telangana inks pact with French aviation trainer
  To train professionals in aviation and aerospace, the Telangana government has tied up with Aero Campus Aquitaine and Bordeaux Metropole of France.
  
  The French company plans to set up an academy to train local talent in addition to skilled workforce for the maintenance, repair and overhaul.
  
  An MoU was signed at the India Aviation Show 2016 in the presence of Jupally Krishna Rao, Minister for Industries, Telangana, between Arvind Kumar, Principal Secretary — Industries, and Jerome Verschave of Aero Campus Aquitaine and Anna Raimat of Bordeaux Metropole.
  
  This academy will come up at Begumpet Airport in Hyderabad.
  
  It will be India’s first such training academy in aerospace industry. All these are paid courses. The lower courses will be subsided by the government
  
  Aero Campus Aquitaine has presence in Turkey, Malaysia and many other countries. It aims to offer comprehensive training for professional skills in defence and aerospace industry with EASA certification. Established with an investment of outlay of €26 million, the centre in France is catering to the professional skill training for the pilots and technicians.
  
  Aerocampus Aquitaine Director Jerome Verschave said, the aerospace industry will see a huge spurt in business over the next decade.
  
• E-commerce deals of Google, Amazon, others face new levy
  Many of the commercial transactions on digital platforms such as Google, Yahoo or Amazon may attract a transaction tax if the government accepts the recommendations of a high-level expert panel on e-commerce taxation.
  
  With the CBDT-appointed panel report — made public on 21st March — also clarifying that the “equalisation levy” would not be a tax on income, the recent debate around the nature of tax has been put to rest. An eight-member CBDT-appointed committee, which included representatives of industry biggies such as Flipkart and Amazon, had in early February suggested that an “equalisation levy” of 6 per cent be imposed on 13 specified digital transactions.
  
  However, Budget 2016-17 had proposed the 6 per cent “equalisation levy” only on “online advertising” payments to non-resident recipients. Following this move, there was some speculation on the nature of this levy, as the government had introduced a separate chapter in the Finance Bill for the purpose of e-commerce taxation.
  
  What it means
  Since it is not an income tax, benefits of international treaties would not apply to foreign recipients and may, therefore, lead to additional costs for Indian payers, say tax experts.
  
  Since the ‘Equalisation Levy’ is not a tax on income, tax treaties will not be applicable, he said, adding that “tax credit cannot be claimed by the foreign recipient.”
  
  This view is reaffirmed by the fact that the committee ruled out the option of levying a withholding tax, considering that it would not be feasible to amend tax treaties in this regard, Nangia added.
  
  While the Budget has sought to bring into the tax net only business-to-business (B2B) transactions as regards payment to non-residents by a resident, indications are that the government would, in the coming years, cover even business-to-consumer (B2C) transactions under this levy.
  
  The exponential expansion of the digital economy in India in recent years has created new tax challenges. To address these challenges, the Centre has opted for an “equalisation levy”, although it could have gone ahead with one of the BEPS project recommendation of imposing a final withholding tax on digital goods and services provided by foreign e-commerce providers.
  
• EU, Canada red-flag India’s crop cover scheme at WTO
  Fresh trouble is in store for India at the World Trade Organisation (WTO), with the EU, Canada, Australia and Thailand questioning Prime Minister Narendra Modi’s crop insurance scheme for farmers. The countries have sought details from India at the multi-lateral trade forum to examine if it should be classified as a trade-distorting amber-box subsidy subject to a cap.
  
  India is already fighting to get food procurement subsidies recognised as non-trade distorting subsidy. New Delhi can notify the scheme as a permissible and un-capped subsidy (green box) at the WTO only if it establishes that the insurance amount is payable after at least 30 per cent crop is destroyed and a natural calamity has been declared –– conditions that may not be easy to meet.
  
  Threat of a 10% cap
  If India wants to give unlimited amounts of crop insurance subsidy, it has to comply with the green-box criteria, pointed out Abhjit Das from the Centre for WTO Studies.
  
  If not, the subsidies will be classified as amber box and clubbed with all other product-specific support, including the minimum support price programme (MSP) and subject to a cap of 10 per cent of farm production
  
  Under the PM’s Fasal Bima Yojana (PMFBY), three levels of indemnity –– 90 per cent, 80 per cent and 60 per cent –– corresponding to low-risk, medium-risk and high-risk areas will be available for all crops based on production in the past ten years. This means farmers will have to bear the loss of the first 10 per cent, 20 per cent or 40 per cent for the different categories.
  
• CAD narrows to 1.3% of GDP in third quarter: RBI
  The country's current account deficit, CAD, narrowed to 1.3 per cent of GDP in the third quarter of the current fiscal, from 1.5 per cent in the year-ago quarter. Reserve Bank of India data showed that the contraction in CAD was mainly due to a lower trade deficit of 34 billion dollars during the review quarter, compared to 38.6 billion dollars in the year ago quarter.
  
  Private transfer receipts, mainly remittances by overseas Indians, stood at 15.8 billion dollars, a decline from the preceding quarter, as well as the year-ago period. The RBI also noted that after moderating in the second quarter, net foreign direct investment picked up again, and stood at 10.8 billion dollars in the third quarter.
  
• Changes made in Atal Pension Yojana based on feedback
  Spouse of the deceased subscriber will now be able to continue to contribute for balance period on premature death of the subscriber to draw pension under Atal Pension Yojana (APY). The changes were made by the Finance Ministry based on the feedback received from various quarters that the present provision under APY of handing-over lump sum amount to spouse on premature death of the subscriber is not preferred by many subscribers.
  
  Under the amended provision, the spouse of the subscriber will be entitled to receive the same pension amount as that of the subscriber until the death of the spouse.
  
  In case of the death of both the subscriber and the spouse, the nominee will receive the accumulated pension amount.
  
  The government had launched the scheme last year to address the longevity risks among the workers in unorganised sector and encourage them to voluntarily save for their retirement.
  
  The scheme offers fixed pension for the subscribers ranging from 1000 to 5000 rupees. The minimum age of joining the social security scheme is 18 years and maximum 40 years. The contribution levels would vary and would be low if subscriber joins early and increase if he joins late.
  
  Under APY, each subscriber, on completion of 60 years of age, will get the guaranteed minimum monthly pension, or higher monthly pension, if the investment returns are higher than the assumed returns.
  
• 337 villages electrified by March 20
  A total of 337 villages have been electrified across the country under the Deen Dayal Upadhyaya Gram Jyoti Yojana, in the week ending March 20.
  
  Odisha topped the list (67) followed by Uttar Pradesh (66), Jharkhand (49), Assam (49), Bihar (41), Arunachal Pradesh (30), Chhattisgarh (12), Rajasthan (11) Madhya Pradesh (9) , and one each in Himachal Pradesh, Manipur and Jammu & Kashmir.
  
  From April 2015 till date, a total of 6,816 villages have been electrified. Out of the remaining 11,636 villages, 7,976 villages will be electrified through the grid, 3,205 villages will be electrified through off-grid solutions and 455 villages will be electrified through the state governments.
  
  On 23rd March, the Ministry for Power said that the target of electrifying 7,000 villages in 2015-16 was achieved on March 23. Till Wednesday, 7,008 villages have been electrified in 2015-16.
  
• Centre approves 11 highway projects worth 6,284 crore rupees for various states
  The government has approved eleven highway projects worth 6,284 crore rupees for various states including Karnataka and Himachal Pradesh. According to the Road Transport and Highways Secretary Sanjay Mitra the total length of the projects is about 453 kilometres. Of these, nine will be implemented in engineering, procurement and construction, EPC mode, one in BOT (Toll) mode and one in hybrid annuity mode. The ministry also approved four road overbridges involving a total cost of 683 crore rupees. The road overbridges are part of government's Setu Bharatam project.
  
  The NHAI projects approved on 24th March include two four-laning of BRT Tiger Reserve boundary to Bengaluru section of NH-209 in Karnataka on Hybrid Annuity Mode under NHDP Phase-IV to be executed at a cost of over 1 thousand 2 hundred and 53 crore rupees.
  
  Another project pertains to four-laning of Nerchwok-Pandoh, including Pandoh bypass section of NH-21 on EPC mode in Himachal Pradesh under NHDP-IV B at a cost of over 1 thousand 2 hundred and 73 crore rupees.The other highway project is four-laning of Takoli-Kullu section of NH-21 on EPC mode in Himachal Pradesh under NHDP phase-IV B at a cost of over 742 crore rupess. Besides, projects like four-laning of Saoner bypass on Saoner-Dhapewada Gondkhairi Road on NH-547 E in Maharashtra on EPC mode, among others, were also approved.
  
• Russia clears ONGC's Vankor deal
  The Russian government approved deal for ONGC to acquire a 15 per cent stake in the Vankor oilfield for $1.3 billion from Rosneft.
  
  Vankor, launched in 2009, produces around 440,000 barrels per day. The field is a source of Russian oil supply to China. Report says that the company signed an initial deal to increase its stake in Vankor to 26% from 15%. The promoters holding in the company stood at 68.93 % while Institutions and Non-Institutions held 17.49 % and 13.57 % respectively.
  
• Centre releases self-regulation Code of ethical business conduct for industry
  The Consumer Affairs Ministry on 25th March released a self-regulation Code of ethical business conduct to be adopted by the Industry on providing best products and services.
  
  The code contains provision of trustworthy products and services for the consumers, comply with the competition and anti-trust laws and respond to consumer complaints promptly.
  
  According to the Consumer Affairs Minister Ram Vilas Paswan, majority of consumers in the country are from rural areas and there is a need to create awareness among them about their rights. Proper coordination between Government and stakeholders can prove instrumental in preserving the rights of vulnerable sections of the society, more importantly the rural and semi-educated.
  
  Memoranda of Understanding between Department of Consumer Affairs and the industry bodies related to self-regulated code of fair business and partnering with the National Consumer helpline and State Consumer Helplines on grievance redressal were also launched on the occasion.
  
• Govt to create 2.5 lakh SC/ST entrepreneurs under Stand Up India
  About 2.5 lakh SC/ST entrepreneurs would be created under the Centre's Stand Up India initiative, Union Minister for Micro, Small & Medium Enterprises (MSMEs) Kalraj Mishra has said. Each of the 1.25 lakh bank branches would be encouraged to fund a SC/ST and a woman entrepreneurs under the Initiative, he said.
  
  According to Mishra, there would be a special support structure for innovation based start-ups, including funding from the government. He further said, The government will unveil a blue print for start-ups to ease the process of setting up new venture very shortly.
  
  On the occasion, Minister for Heavy Industries Anant Geete said there is a promising road ahead for Dalit entrepreneurs. He noted that as many as 292 PSUs in India are mandated to procure 20 per cent of their requirements from MSME sector. Of this, 4 per cent has to be from Dalit enterprises, he said.
  
• TEJAS production to be increased to 16 per year
  Union Minister of State for Defence, Rao Inderjit on 26th March said that production of India's light combat aircraft TEJAS is being increased from 8 per year to 16 per year. He said TEJAS has been included in the Airforce and soon TEJAS-2 will come. He was interacting with media persons at Panchkula after inauguration of 16th Senior National Para Athletic Championship.
  
• UP first to set up own export promotion council
  Uttar Pradesh has become the first State to set up its own export promotion council in order to accelerate the rapidly evolving economy of the State through Export Promotion Bureau, Micro, Small and Medium Enterprises and Export Promotion Department.
  
  Presiding over the programme, Nitin Aggarwal, Minister of State (Independent Charge) for Micro, Small and Medium Enterprises and the Department of Export Promotion, launched the Uttar Pradesh Export Promotion Council, set up with the aim of providing all infrastructure facilities to the continuously growing exports.
  
  The UPMSME sourcing event was organised under the programme which was aimed at creating a strong link between buyers and sellers. Co-marketing and display of important artefacts/products of State provided an opportunity to exporting units and manufacturing units to understand the needs of each other.
  
  The Minister inaugurated the projects of setting up of six additional display halls in UP Expo Mart, Noida and India Exposition Mart, Greater Noida, under ASIDE plan. It will facilitate craftsmen/exporters display and co-market their products.
  
• Kingfisher Airlines' PF contributions to be probed: Labour Ministry
  Labour Ministry will soon launch an investigation into the provident fund contributions made by Kingfisher Airlines for its employees when the carrier was functioning, according to the Union Minister Bandaru Dattatreya
  
  Beleaguered businessman Vijay Mallya, who is facing legal proceedings for allegedly defaulting on loans of over Rs 9,000 crore from various banks, is currently under scanner by multiple agencies, including CBI.
  
  An open letter written by women employees of KFA recently alleged that the company did not pay salaries, but kept depositing PF due to fear of action from the authorities.
  
  Meanwhile, EPFO's apex decision-making body, the Central Board of Trustees' (CBT), will meet on March 17 to take stock of the situation with regard to the investments the body made into index-linked ETFs (Exchange Traded Funds).
  
  According to Dattatreya, the result has not been encouraging for the past three to four months despite signs of optimism in the initial stages.
  
• Telangana presents Rs 1.30-lakh cr Budget
  Telangana government on 14th March presented a revenue surplus Budget for the year 2016-17 while allocating more than 50% of the total estimated expenditure of Rs 1.30 lakh crore under the plan outlay.
  
  In an effort to fully utilise the state's share in the river waters, the government has allocated a whopping Rs 25,000 crore for the irrigation sector under plan outlay in this Budget as compared to an expenditure of Rs 8,500 crore for irrigation in the current financial year.
  
  The proposed expenditure for the year 2016-17 was 30% higher than the revised expenditure of Rs 1 lakh crore in the current year and also 30% higher than the estimated revenue receipts, including the share in Central taxes and the estimated grants-in-aid from the Centre. Of the total budget, non-plan expenditure is Rs 62,785.14 crore and plan expenditure is Rs 67,630.73 crore.
  
  The Budget indicates a revenue surplus of Rs 3,718.37 crore and a fiscal deficit of Rs 23,467.29 crore, which is 3.5% of estimated GSDP. The higher revenue surplus is entirely on account of the proposed allocation of Rs 25,000 crore to the irrigation sector, which is mostly capital, according to state Finance Minister Etela Rajender.
  
  The government expenditure in the current year fell short by Rs 15,000 crore. The minister attributed this to lower plan transfers from the Centre as well as lower than anticipated proceeds from the sale of land due to court litigation. The government plans to raise Rs 29,500 crore debt to support the plan outlay.
  
  According to the Finance Minister the Telangana share in the Krishna and the Godavari waters is 1,250 TMC (one thousand million cubic feet). There is an additional share of 150 TMC in the surplus waters. However, the uilisation of river waters in the Godavari and Krishna Basins has been much below our due share because of deliberate attempts in the combined state. Under the pretext of interstate disputes, construction of projects was not taken up, the minister said while explaining the rationale behind massive allocations for the irrigation sector.
  
  Apart from irrigation, the government has made a substantial plan allocations to Panchayat Raj (Rs 8,919 crore), roads (Rs 3,525 crore) and health (Rs 2,462 crore), besides social sectors. In addition to this, a massive drinking water grid development programme costing over Rs 40,000 crore and the construction of 2 lakh double-bedroom houses for weaker sections, at a cost of Rs 11,000 crore, are going on outside the budgetary allocations, the minister said.
  
  Terming industrial development as one of the top priorities of his government, the minister informed the house that plans have been drawn up to set up three aerospace parks in the state. Work on phase-1 of the National Investment and Manufacturing Zone at Medak is expected to commence in 2016-17 and an amount of Rs 967 crore has been proposed under the plan for the promotion of industries during the new financial year, according to him.
  
  On the energy sector, the minister said that the government is determined to achieve a power generating capacity of 23,912 Mw within the next three years as compared to a little over 7,000 Mw of existing capacity.
  
  Notables among the non-plan items in the annual Budget for 2016-17 include Rs 4,250 crore towards debt waiver to farmers, Rs 4,470 crore towards power subsidy and Rs 2,200 for the rice subsidy.
  
• Electronics manufacturing gets a boost with Rs.700-crore venture capital funding
  India took the first step towards self-reliance in electronics manufacturing with a venture capital firm all set to invest Rs. 700 crore in a chip-making facility.
  
  Mumbai-based Next Orbit Ventures — formed to invest in semiconductor projects — will soon invest in one of the two consortiums interested in setting up massive chip-manufacturing facilities in the country.
  
  The investment would be a part of the $750 million electronics fund that Next Orbit Ventures launched recently.
  
  India relies heavily on electronics imports: in 2014-15, total import of electronics goods grew over 15 per cent to reach an estimated Rs. 2,25,600 crore over the previous fiscal. The consortia approved by the government to build the two semiconductor units include one led by Jaiprakash Associates, which partnered IBM and Tower Semiconductor of Israel; and another led by HSMC Technologies, which joined hands with ST Microelectronics and Silterra Malaysia. The overall investment required for the two fabs is expected to cross Rs. 70,000 crore.
  
  The groundbreaking for the two chip-manufacturing units has been delayed for the last four years for reasons ranging from government approvals to feasibility issues. However, with the first large investment coming in, the industry expects more investors to follow.
  
  The two proposed fabs were the biggest components of the Electronic and Semiconductor Policy rolled out in 2012.
  
• FICCI to fund construction of 250 toilets in govt schools in AP
  Federation of Indian Chambers of Commerce and Industry (FICCI) will fund construction of as many as 250 toilets in government high schools in Andhra Pradesh, with emphasis on Yerpedu, Madanapalle and Tamballapalle mandals in Chittoor district. A team from FICCI visited Chittoor district to identify schools intended for the “Swachh Bharath Swachh Vidyalaya" project.
  
• ICICI Bank launches contactless mobile payment solution
  ICICI Bank on 15th March announced a contactless mobile payment solution to enable its credit and debit card customers to make in-store contactless payments by waving their smartphones near an NFC-enabled merchant terminal.
  
  The mobile payment solution provides improved convenience of ‘Touch & Pay’ as customers are no longer required to carry physical card or cash to pay in stores.
  
  Thes mobile payment solution, which has been launched for the bank’s employees, will be available for customers in the first week of March, 2016 when the updated ‘Pockets’ application will be available on Google Play Store. An ICICI Bank credit and debit customer (VISA/Mastercard) with an NFC enabled smartphones of OS - Android 4.4 & above will be able to use this solution
  
  In accordance with the RBI guidelines, customers can make payments up to Rs. 2,000 per transaction with the mobile payment solution. ICICI Bank said it is the first financial institution in the country to leverage the Host Card Emulation which creates ‘virtual’ cards for ‘physical’ credit or debit cards (Visa/MasterCard) of the bank, as selected by the customer.
  
• Govt to allot 16 coal mines to PSUs for commercial mining
  Government will allot 16 coal mines to Public Sector Undertakings (PSUs) for commercial mining. Of these 16 blocks earmarked for State PSUs for sale of coal, five mines are in Madhya Pradesh, three in Telangana, two blocks each in Chhattisgarh, Jharkhand and Maharashtra, and one each in Odisha and West Bengal.
  
  The blocks that have been earmarked for allocation to PSUs include Shankarpur Bhatgaon II Extension and Madanpur South in Chhattisgarh, Patal East and Mednirai in Jharkhand, Dahegaon-Makard hokra- IV and Kosar Dongergaon in Maharashtra, Baitarni West in Odisha, Penagaddppa, Anesttipali and Punkula-Chilka in Telangana, Gourangdih ABC in West Bengal, Sahapur East and Sahapur West. A Coal Ministry order said, Suliyari, Dongri Tal-II and Marki Barka mine in Madhya Pradesh are the other mines in the list.
  
  For the first time in over 40 years, the government is throwing open the coal sector for commercial mining, which is being undertaken by the central PSU Coal India. The decision to open up coal sector is in line with the government's target of doubling coal production to 1.5 billion tonnes by 2020.
  
• NITI Aayog bats for PPP to improve health services
  NITI Aayog has favoured public private partnership (PPP) model to improve health services in the country. The Government's think tank has also suggested extension of the Right to Education (RTE) Act to the pre-primary levels. The Aayog recently made presentations to Prime Minister Narendra Modi on Health and Education sectors.
  
  The Aayog has asked government to do pilot projects in Healthcare PPP against the back drop of poor performance of public hospitals at district level. It has also asked the Prime Minister for online tracking of hospital performance.
  
  Stressing on significant scaling up of medical education capacity in the country, the body has also suggested reforms in Medical Council of India (MCI). Aayog asked the government to launch a national screening campaign for cancer, hypertension and diabetes.
  
  On the education front, NITI Aayog has called for preparing grade-wise minimum learning goals for class one to eight. The presentation said, there is a need to overhaul teacher training, coverage, curriculum and trainer quality.
  
• Govt imposes anti-dumping duty on plastic-processing imports
  Government has imposed anti-dumping duty of up to 44.7 per cent on import of plastic-processing machines from Chinese Taipei, Malaysia, the Philippines and Vietnam for five years. The duty will be levied on imports of all kinds of plastic-processing or injection-moulding machines, also known as injection presses.
  
  According to the Central Board of Excise and Customs (CBEC) the safeguard duty covers imports from the countries in question and has been imposed after the domestic industry took a beating from such dumping.
  
  A notification of the Revenue Department said anti-dumping duty of 27.98 per cent has been imposed on plastic-processing machines imported from Chinese Taipei. Further, a safeguard duty of 44.74 per cent and 30.85 per cent has been imposed for the same products imported from Malaysia and the Philippines.
  
  Also, imports from Vietnam will attract a levy of 23.15 per cent. Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.
  
• India Aviation Report says country to become third largest aviation market by 2020
  The country is likely to become the third largest aviation market by 2020, claimed a report published on 17th March, the second day of the India Aviation Exhibition and Conference. The report, called “India Aviation Report”, has been prepared by KPMG and Ficci.
  
  It claimed that with 81 million trips, India’s domestic aviation market grew over 20.3 per cent in 2015 — the highest ever growth rate recorded in the world.
  
  In January 2016, the passenger growth was 22 per cent. Some people attribute this growth to fall in crude prices, but no other country in the world has achieved this kind of growth during the period, said R N Choubey, secretary, Ministry of Civil Aviation, at the launch event.
  
  According to the report, the Indian civil aviation sector has exhibited tremendous resilience to the global economic slowdown and ranks ninth in the global civil aviation market.
  
  This is largely attributed to the growing economy, increased competition among airlines, especially among low-cost carriers, modern airports, greater use of technology, foreign direct investment (FDI) and increased emphasis on regional connectivity.
  
  The report observed that the National Civil Aviation Policy (NCAP-2016), which is likely to be out next month, would provide a significant fillip to the sector. The various fiscal and monetary incentives, liberal policies focused on ease of doing business and enhanced push for regional and global connectivity are extremely positive.
  
  The growing competition among the states would provide a further fillip to the growth of India as well as its aviation sector, said Union Civil Aviation Minister Ashok Gajapathi Raju. The minister also launched the “India Aviation Report”.
  
  The report suggests that aspects such as increasing disposable incomes, fall in prices of aircraft turbine fuel (ATF), increase in tourism, and visa reforms have placed India in a unique position. This brings the country closer to achieving its vision of becoming the largest aviation market by 2030, it said.
  
  Steps taken to revive 160 airports and make them operational will improve air connectivity to regional and remote areas. Public-private partnerships in the sector will get substantial support from states in terms of financing, concessional land allotment, tax holiday and other incentives, the report suggests.
  
  Enormous growth in domestic passenger traffic, substantial strengthening through government initiatives, decrease in global crude oil prices and airlines showing profits indicate a significantly positive transformation for the Indian civil aviation market. The close partnership between the government and the sector in ongoing and future projects will further improve regional connectivity.
  
  According to Amber Dubey, a partner and the India head of aerospace and defence of KPMG, the positive impact of NCAP-2016, rise in disposable incomes and the fall in ATF prices are likely to help India leapfrog into the top three of the world.
  
  India registered a growth of 17.1 per cent in the total passenger throughput for financial year 2015-16. Till January 2016, it was 184 million. Passenger throughput is expected to reach around 370 million by 2020, with domestic traffic constituting around 80 per cent of the total throughput.
  
  According to International Air Transport Association, passenger traffic on international routes showed an increase of 6.5 per cent in 2015 compared to 2014. In comparison, between April and December 2015, international passenger throughput at Indian airports grew at 7.7 per cent.
  
  The report suggests that in order to ensure high growth, it is imperative to broaden the base of domestic flyers through greater air connectivity in Tier-II and –III cities. Many Indian states have taken positive initiatives, developing airports, reduction in sales tax rates on ATF and direct subsidy to airlines for improvement of connectivity, according to the report.
  
• Rewa gets ready for 750-Mw solar park
  The government of Madhya Pradesh is inviting tenders for a 750-megawatt (Mw) solar energy park at Rewa. The World Bank-supported project is to be split into three units of grid-mounted solar photovoltaic power plants of 250 Mw each. State-owned Madhya Pradesh Urja Vikas Nigam has joined hands with Solar Energy Corporation of India to form an equal-stakes venture, Rewa Ultra Mega Solar Ltd, implementing agency for the project. The three units will be developed on a pre-identified land parcel inside the Rewa Ultra Mega Solar Project.
  
  A two-stage bidding process will be conducted. The final selection will be through reverse bidding for rates, with no viability gap funding, over an e-bidding platform. The process is likely to be over by June. Those selected will sign a power purchase agreement with Delhi Metro Rail Corporation and Madhya Pradesh Power Management Corporation (MPPMCL).
  
  The former is committed to buy 121 million units (kwh) from each of the three units; MPPMCL will book 80 per cent of the generation capacity. So far, bidding for solar energy parks have been conducted in Rajasthan, Andhra Pradesh and Uttar Pradesh. Though Karnataka is said to be developing the biggest solar park, with 2,000 Mw capacity in Tumakuru district, the Rewa park will be the largest contiguous project with a single evacuation point.
  
  Altogether, 33 solar energy parks with 19,900 Mw combined capacity are coming up in 21 states. Madhya Pradesh with 2,750 Mw planned is second only to Rajasthan in terms of capacity.
  
  The solar park at Rewa will be coming up on 1,550 hectares of land. Selected bidder will be required to commission 100 mw if awarded one unit, 175 mw if awarded two units and 250 MW if awarded all the three units at the end of 13th month from the signing of project agreements. At the end of 18th month, bidders will have to commission the entire capacity.
  
  Besides one-time payments of around Rs 3.26 crore, bidders for each unit will be required to pay land charges of Rs 5.4 crore, infrastructure charges of Rs 3.58 crore in the first 10 years and Rs 4.9 crore in subsequent 15 years and administrative charges of Rs 75 lakh.
  
• Interest rate on small savings including PPF, KVP slashed
  The government on 18th March cut the interest rates payable on small savings including Public Provident Fund, PPF and Kisan Vikas Patra KVP to align them closer to market rates.
  
  The interest rate on PPF scheme will be cut from 8.7 per cent to 8.1 per cent from 1st of April. According to a Finance Ministry order, the interest rate on KVP will also be cut to 7.8 per cent from 8.7 per cent.
  
  However, the interest rate on Post Office savings has been retained at 4 per cent. The five-Year National Savings Certificates will earn an interest rate of 8.1 per cent as against 8.5 per cent at present. Five-year Monthly Income scheme will fetch 7.8 per cent as against 8.4 per cent now. Girl-child saving scheme, Sukanya Samriddhi Yojana will see a rate cut of 8.6 per cent as against 9.2 per cent.
  
  Senior citizen savings scheme of five-year has also been slashed to 8.6 per cent. The post office term deposit rates of one to five years have also been cut. The new rates will remain in force till 30th of June and will reviewed and notified on quarterly basis.
  
• Signs pact with AP for several digital projects
  The Andhra Pradesh Government and Cisco have signed a memorandum of standing for several digital initiatives in the State including the setting up of an innovation centre.
  
  The AP Fiber Net project in which Cisco is a partner was launched. Later, in the presence of Chief Minister N Chandrababu Naidu and Cisco Chairman John T Chambers, an MoU for the digital projects was signed.
  
  An innovation centre for Internet of Everything would be set up by Cisco and a 12-month course would be sponsored in Andhra University to develop digital technologies for rural areas. The company would also invest in start-ups in the State. A centre of excellence would also be set up at Tirupati for finding cyber solutions.
  
• Govt allows 49% FDI in insurance under automatic route
  Seeking to attract more foreign investment, the government has relaxed FDI norms for insurance sector by permitting overseas companies to buy 49 per cent stake in domestic insurers without prior approval. Currently, FDI up to 26 per cent is permitted through automatic approval route. For FDI up to 49 per cent, the approval of Foreign Investment Promotion Board is required.
  
  There are 52 insurance companies operating in India, of which 24 are in the life insurance business and 28 in the general insurance. During April-December 2015, FDI into the country grew by 40 per cent to USD 29.44 billion.
  
• FDI inflows into services sector surge 85.5% in 1st 9 months of this fiscal
   Foreign Direct inflows into the services sector surged 85.5 percent to 4.25 billion dollars in the first nine months of this fiscal. The sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing, had received foreign direct investment worth 2.29 billion dollars during this peiod, according to the Department of Industrial Policy and Promotion.
  
  FDI in services sector accounts for 17 percent of the country's total foreign investment inflows. Overall foreign direct inflows in the country jumped 37 percent to 39.32 billion dollars during the first nine months of 2015-16. The amount was 28.78 billion dollars in the year-ago period.
  
• Telangana to take up 5 irrigation projects with Central assistance
  The Centre has agreed to provide financial assistance to five irrigation projects in Telangana under AIBP (Accelerated Irrigation Benefit Programme) and the newly-launched Pradhan Manthri Krishi Sinchayee Yojana (PMKSY), State Irrigation Minister T Harish Rao has said.
  
  Interacting after attending the first meeting of the National Water Resources Coordination Committee constituted by the Centre to prepare a roadmap to complete the pending irrigation projects in the country, Harish Rao said proposals for the execution of the five projects would be forwarded to the Union Ministry by March 11 and expressed the need to provide more funds for such projects.
  
  Project details
  Harish Rao in a statement said Indiramma Flood Flow Canal, Rajiv Bheema, Jagnathpur, Komarmbheem and Palem Vagu projects would be included under AIBP and PMKSY this year and taken up the project on priority basis with Central assistance.
  
  The Union Minister was requested to increase funding under AIBP from the present 25 to 60 per cent of the total cost of the each project. The allocations for the projects taken up in extremist affected areas in Maharashtra, Telangana and Chhattisgarh were also discussed.
  
  The Minister said the demand to increase the limits of loans from Nabard for the construction of irrigation projects and the Centre and State’s share in the payment of loans were discussed. The Centre was also urged to accord speedy environmental clearances to ensure there is no increase in project cost.
  
• Telangana Cabinet approves redesign of irrigation projects
  The Telangana Cabinet approved the redesign of irrigation projects in the State to create maximum irrigation potential by making best use of available water resources, mostly in the river Godavari and its tributaries.
  
  It was one of the several issues discussed and decided at the Cabinet meeting held. All the Ministers participated in the meeting chaired by Chief Minister K. Chandrasekhar Rao and it lasted for about three hours.
  
  The Cabinet has given its nod for taking loan from National Bank for Agriculture and Rural Development (NABARD) for irrigation and agriculture-related projects.
  
  Further, the Cabinet has cleared government guarantee for the Rs.500 crore loan to be taken by Telangana State Road Transport Corporation (TSRTC), approved changes to be incorporated while adopting the Higher Education Act of the combined Andhra Pradesh State to Telangana, allocation of Rs.1,900 crore each to Mission Kakatiya and Hyderabad Metro Water Board and granting amnesty to some convicts, undergoing life imprisonment, with good behaviour on the occasion of next State Formation Day.
  
  Before heading for Maharashtra to ink agreements with it on the construction of five barrages on the river Godavari and its tributaries in Mumbai on March 8, Chief minister K Chandrashekar Rao discussed in detail the redesigning and re-engineering of Kaleswaram - Chevella and other projects proposed in Khammam district.
  
  The Cabinet approved allotment of 3 acre of land to IAS Officers Association and 50 acre of land to TSIIC (Telangana State Industrial Infrastructure Corporation) at Mucharla for the establishment of Pharma City.
  
  Amendments to the Marketing Act ensuring BC, SC, ST and Minority reservation in nominated posts of Market Committees and two other amendments to Municipal Administration and Urban Development Act were also ratified. Cabinet also gave its nod for the establishment of Brahmin Corporation with Rs 100 crore corpus fund.
  
• PM selects another village in Varanasi for development under SAGY
  Indian Prime Minister Narendra Modi has selected another village for adoption in his Varanasi Constituency of U.P. for development under the Saansad Adarsh Gram Yojana (SAGY). Nagepur, a village dominated by backward castes has been selected under the second phase of the Yojana. Earlier, Prime Minister had adopted Jayapur village in the same Varanasi constituency in the first phase in 2014.
  
  The office of Varanasi Chief Development Officer received a letter from PMO regarding Nagepur's selection on 6th March after which jubilation prevailed in the village.
  
  The CDO told media that the district officials have been asked to submit a primary survey report of Nagepur by March 20. A village development plan will be drafted later, he said.
  
• Govt rolls back proposal to tax Employees’ provident fund withdrawals
  The government has rolled back its Budget proposal that sought to levy tax on withdrawal of funds from Employees' Provident Fund (EPF). Making a suo motto statement in the Lok Sabha on 8th March, Finance Minister Arun Jaitley said that tax proposal for National Pension Scheme has been retained.
  
  The minister said that main aim is that employees should have choice of where to invest and idea is to encourage more number of private sector employees to go for pension security after retirement instead of withdrawing the entire money from the provident fund account.
  
  Mr Jaitley said government would also like to comprehensively review EPF tax proposal. Mr Jaitley said that 40 per cent exemption given to National Pension Scheme (NPS) subscriber at the time of withdrawal remains. Finance minister, in his Budget speech for 2016-17, had proposed that 60 per cent of the withdrawal on contribution to employee PF made after April 1st this year will be subjected to tax.
  
  Mr Jaitley said the main category of people for whom EPF scheme was created are the members of EPFO who are within the statutory wage limit of 15,000 rupees per month. He said out of around 3.7 crore people contributing members of EPFO as on today, around 3.26 crore subscribers are in this category. Finance minister said for this category of people, there is not going to be any change in the new dispensation.
  
• PSBs’ NPAs soar Rs1 lakh cr in 9 months of FY16
  Public sector banks’ (PSBs) bad loans increased by Rs 94,666 crore in first nine months of the current financial year, finance minister Arun Jaitley said on 8th March. Gross non-performing assets (NPAs) of PSBs increased from Rs 2,67,065 lakh crore in March 2015 to Rs 3,61,731 lakh crore in December 2015, he said.
  
  The government has taken specific measures to address issues in sectors such as infrastructure, steel and textiles where incidence of NPAs is high, Jaitley said in reply to another question.
  
  To speed up recovery of bad loans, the government has approved establishment of 6 new Debt Recovery Tribunals, in addition to existing 33.
  
• IKEA set to open first India store at Hyderabad In 2017
  Ikea, the world’s largest furniture retailer, will open its first store in India at Hyderabad in the later half of 2017, even as it scouts for more sites in Delhi-NCR, Mumbai and Bengaluru.
  
  The company, which received government approval in 2013 for its Rs 10,500 crore proposal to open retail stores under 100% FDI, plans to open 25 stores by 2025 in 9 Indian cities. In July last year, the company had announced purchase of 13 acre land close to the IT hub in Hyderabad’s HITEC city.
  
  IKEA’s first store in Hyderabad will be a massive 4 lakh square feet in size and will include all features of a global IKEA store, including restaurant and play and development area.
  
• Gujarat tops in investment potential ranking
  Gujarat has topped a list of 21 states with the most investment potential, said an economic think tank report. Delhi, Tamil Nadu, Andhra Pradesh and Maharashtra were others on the top five.
  
  The National Council of Applied Economic Research (NCAER) report cited corruption, delay in getting approvals before starting a business and hurdles in getting environment clearance as the top three constraints for investments.
  
  The rankings of 20 states and one Union territory, Delhi, was based on five pillars - labour, infrastructure, economic climate, governance and political stability, perceptions - and 51 sub-indicators.
  
  While Gujarat topped in governance and political stability and perception, Delhi ranked first in infrastructure and economic climate. Kerala topped the chart in labour issues. The report said out of the 21 states, Bihar, Uttar Pradesh and Jharkhand have a significant amount of catching up to do.
  
  While the World Bank-DIPP report was more about procedures and transactions, the NCAER report focuses on policy and structural issues that determines the business environment in a state.
  
  The survey had covered only 21 states. Assam was the only one among the seven Northeastern states. Goa, Jammu & Kashmir and Sikkim were not taken into account.
  
  The objective of the survey was to get industry's perception on issues related to land, labour, infrastructure and governance, business climate in their respective states and various other challenges faced by the industrialist.
  
• Debts case: Supreme Court issues notice to Vijay Mallya on pleas filed by consortium of banks
  The Supreme Court on 9th March issued notice to industrialist Vijay Mallya on petitions filed by consortium of banks seeking disclosure of his assets and seizure of his passport. The court has sought a response from Mallya within two weeks on its notice.
  
  In the hearing, Attorney General Mukul Rohatgi, citing CBI inputs, told the court that Mallya left the country. He told the court that Mallya's assets abroad are far in excess to loans taken by him.
  
  The court also questioned the banks why loans were given to Mallya when he was defaulter and was facing proceedings in court of law. The court allowed that the notice be served to Mallya through his official email ID through Indian High Commission at London & his counsel.
  
• IMF knowledge sharing centre to come up in India
  In a first for Asia, the International Monetary Fund (IMF) will set up a knowledge-sharing centre in India, to provide technical support and assistance India and to five other South Asian nations. Their team will extend expertise in core macroeconomic and financial management areas, said an unnamed government source. An agreement is likely to be signed on 12th March by IMF Managing Director Christine Lagarde with Prime Minister Narendra Modi.
  
  The new IMF centre, being set up amid global economic uncertainty, will provide assistance to India, Nepal, Bangladesh, Sri Lanka, Pakistan and Bhutan.
  
  Since the IMF team will be based out of the region, it will ensure better understanding of regional concerns, including trade, agriculture, climate change, facilitating a reform process and support to regional integration.
  
  The knowledge centre will come up in the wake of IMF announcing implementation of its long-pending quota reform, giving more voting rights to emerging economies.
  
  With these changes, to be effected in the coming days, India’s quota in the IMF would rise to 2.7 per cent from the existing 2.44 per cent. Also, the voting share of India would increase to 2.6 per cent from 2.34 per cent. For the first time, four emerging market (EM) countries of the Brics bloc — Brazil, China, India and Russia — will be among the 10 largest members of IMF.
  
  Two new multilateral agencies are also being set up — a New Development Bank of the Brics countries and an Asian Infrastructure Investment Bank.
  
  An Asian economic crisis did occur in the late 1990s but from the Southeast Asian ‘tigers’ of that time. This time, one could emanate from China or another large economy from the EMs. According to the Economic Survey of 2015-16, if this kind of crisis does emerge, it would be very different from those of earlier decades. Since the 1980s, it said external financial crises have followed one of three basic forms — Latin American, Asian or global models.
  
  In a Latin American debt crisis, governments went on a spending binge, financed by foreign borrowing (of recycled petrodollars) while pegging their exchange rates. In the Asian one of the late 1990s, the transmission mechanism was similar — overheating and unsustainable external positions under fixed exchange rates — but the instigating impulse was private borrowing rather than government borrowing.
  
  The global one of 2008, with America as its epicentre, was unique in that it involved a systemically important country and originated in doubts about its financial system.
  
  If a crisis occurs in China or another large EM, it is more likely to resemble events of the 1930s, when the UK and then the US went off the gold standard, triggering a series of devaluations by other countries and leading to a collapse of global economic activity.
  
  If such a crisis hits India, it will require fresh prescriptions and it is here that the IMF centre would be of help, a source said.
  
• Rajya Sabha passes Real Estate Bill; Seeks to set up state level regulators
  Rajya Sabha on 10th March passed the Real Estate (Regulation and Development) Bill, 2015. It seeks to set up a regulatory authority for the sector. The Bill is aimed at protecting the interests of the large number of aspiring house buyers while at the same time enhancing the credibility of construction industry by promoting transparency, accountability and efficiency in execution of projects.
  
  According to Urban Development Minister M. Venkaiah Naidu the Bill seeks to regulate the sector, which is currently facing slump and over ten lakh houses are unlocked across the country without any buyers. He allayed fears of some opposition members that the bill encroaches on the powers of state government.
  
  Kumari Selja of the Congress, who as then Urban Development Minister had first introduced the bill in 2013, endorsed her party’s support to the Bill. She suggested, there should be a non-discriminatory clause to give equal opportunity to all sections of the society.
  
  On it, the Minister said there will be no discrimination of any kind and it will be included in the rules. In the Bill, there is provision of imprisonment of up to three years in case of promoters and up to one year in case of real estate agents and buyers for any violation of orders of Appellate Tribunals or monetary penalties or both.
  
  The Bill seeks to regulate transactions between buyers and promoters and provides for setting up of state level regulatory authorities. It also provides for registration of promoters and agents with the authorities.
  
  The promoters are mandated to deposit 70 per cent of the money collected from buyers in a separate bank account, to be used only for construction of that project. They will also have to disclose project information including details of the promoter, land status, status of approvals, agreements along with details of real estate agents and contractors.
  
  The commercial real estate has also been brought under the ambit of the Bill. Projects under construction are also required to be registered with the Regulatory Authority.
  
• Cabinet gives approval to change in shareholding in DP World projects
  The Cabinet on 10th March gave its approval for grant of ‘no objection’ to the proposed change in shareholding in the container terminal projects of Dubai Port World (DPW) Ltd in major ports
  
  DPW is contemplating restructuring its assets in India, to consolidate the ownership of its port infrastructure in the country into a single holding company — Hindustan Ports Private Ltd — which will take over all liabilities of the existing subsidiaries of DPW in relation to the concession agreements.
  
  The approval paves the way for creation of the holding company with a unique asset portfolio to operate and manage the terminal operations at the existing major ports subject to certain safeguards.
  
  This, in turn, will promote Foreign Direct Investment and private sector participation in the port sector, the statement said.
  
  The approval is subject to the condition that the net worth of the holding company, after the acquisition of shares of the project SPVs, be higher than $80 million. The Cabinet also gave its nod for an MoU between India and Bahrain, on cooperation for prevention of human trafficking, especially trafficking of women and children; rescue, recovery, repatriation and re-integration of victims of trafficking. It is expected to be signed during the Home Minister’s upcoming visit to Bahrain in the first week of April.
  
  Ex-post approval was also received for a MoU between India and United Arab Emirates on technical cooperation in cyber space and combating cyber crime, signed last month, it said.
  
  The Cabinet cleared the signing and ratification of the Bay of Bengal Initiative on Multi Sectoral Technical and Economic Cooperation (BIMSTEC) Convention on Mutual Legal Assistance in Criminal Matters. The BIMSTEC comprises of Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand.
  
  An MoU between India and the IMF, for setting up of South Asia Regional Training and Technical Assistance Center in India by the IMF, was also approved by the Cabinet.
  
• e-Budget introduced in Andhra Pradesh Assembly
  The Finance Minister of Andhra Pradesh, Mr. Yanamala Ramakrishnudu presented the Annual Budget for 2016-17 in the Andhra Pradesh Legislative Assembly on March 10th. The Government has designed the e-budget for the first time, which has been provided to the Legislators through tabs
  
  Highlights of Budget: 
  • The total Budget estimate for 2016-17 is Rs. 1,35,000 crores.
  • Non-plan Expenditure is Rs. 86,554.55 crores.
  • Planned Expenditure is Rs. 49,134.44 crores.
  • The current budget growth is about 20.13 per cent compared to last year’s budget.
  • Revenue Deficit for 2016-17 is estimated to be Rs. 4,868 crores.
  • Actual deficit for 2016-17 is Rs. 20,497 crores.
  • State’s own revenue increased by 16 per cent.
  • Law and Order – Rs. 4,785.14 crores.
  • Land Administration – Rs. 3,119.72 crores.
  • Rs. 1,500 crore for the construction of Amaravati.
  • Rs. 3,100 crore for Smart Wards and Villages.
  • Rs. 320 crore for Sanitation.
  • Rs. 4,728.95 crore for Urban Administration.
  • Rs. 4,764.71 crore for Employment Guarantee Scheme.
  • Rs. 1,195.63 crore for rural water supply.
  • Rs. 4,467 crore for rural development.
  • Rs. 215 crore to the Ministry of Sports.
  • Rs. 1000 crore for Kapu Corporation.
  • Rs. 65 crore for Brahmin Corporation.
  • Rs. 710 crore for the welfare of Minorities.
  • Rs. 8,832 crore for the welfare of BC.
  • Rs. 3,100 crore for the welfare of STs.
  • Rs. 8.724 crore for the welfare of SCs.
  • Rs. 252 crore for Youth Empowerment.
  • Rs. 642 crore for Women Empowerment.
  • Special Project for Women Empowerment.
  • Rs. 1,132 crore for housing.
  • Rs. 4,020 crore for Energy security.
  • Rs. 150 crore for the safety of the road safety.
  • Rs. 3,184 crore for development of roads.
  • Rs. 250 crore for Krishna Pushkaralu.
  • Rs 227 crore to the Ministry of Tourism.
  • Rs. 360 crore for Information Technology.
  • Rs. 772 crore for ICDS scheme.
  • Rs. 2,933 crore for Medical and Health.
  • Rs. 2,642 crore for Higher Education.
  • Rs. 17,502 crore for Primary Education.
  • Rs. 127 crore for the Handloom sector.
  • Rs. 100 crore to the food industry.
  • Rs. 147 crore for the silk industry (Sericulture).
  • Rs. 659 crore for the Department of Horticulture.
  • Rs. 3,660 crore for Polavaram project.
  • Rs. 7,325 crore for Irrigation Department.
  • Rs. 674 crore for Minor Irrigation sector.
  • To create 5 lakh jobs in manufacturing zones.
  • To complete the mission of electrifying 4.6 lakh homes by June 2016.
  • Target of 4,800 MW of additional power generation in the next 3 years.
  • 5000 hectares of national investment and manufacturing zone in Chittoor.
  • 1.87 crore LED Bulbs to 93.5 lakh houses.
  • Setting up of Industrial zone with an investment of Rs. 23,000 crores in 5079 acres in Donakonda of Prakasam district.
  • Rs. 377 crores for new Entrepreneurs.
  • Training to one lakh people as a part of Skill Development.
  • Green Field Airports in Bhogapuram, Dagadarti, Orvakallu, Nagarjunasagar and Donakonda.
  • To build 1,20,000 houses under Prime Minister Awas Yojana. Already 73,041 have been approved by the Central Government.
  
  
• Lok Sabha passes Aadhaar Bill 2016
  Lok Sabha has passed the Aadhaar (Target Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016. The Bill is aimed at giving statutory backing for transferring government subsidies and benefits to targeted people.
  
  It also lays down a regulatory framework to protect core biometric information of Aadhaar cardholders from any unauthorised disclosure or sharing. The Bill is the key to the government’s plan to plug leakages in disbursal of subsidies and other services and in ensuring that these reach intended beneficiaries.
  
  According to Finance Minister Arun Jaitley the primary focus of the bill is to make presentation of Aadhar card mandatory for entitlement of government subsidies. He said, by linking of Aadhaar number with various schemes which comes under subsidy, the government has so far saved 15 thousand crore rupees.
  
  Allaying apprehension of the opposition members regarding disclosure of privacy by making Aadhaar mandatory, the Finance Minister said, the government has taken care of these issues and data of the concerned persons will not be shared and any unauthorized disclosure of the Aadhaar data will be liable of punishment.
  
• India best among EMs; health of PSBs, corporates a worry: IMF
  International Monetary Fund’s financial counsellor Jose Vinals has stressed the need for cleaning up balance sheets of public sector banks in order to sustain robust growth and to control inflation. He warned that deteriorating corporate and banking sector health can have adverse impacts on the banks' ability to lend for productive purposes.
  
  Mr. Vinals, however, singled out India to be best placed among emerging markets but he also underlined the problems that need urgent attention. He said that actions on supply side and reforms in power and mining sectors will go a long way in propping-up the economy. The IMF counsellor added that India has taken right steps, like efforts to check inflation including a shift to inflation-targeting, commitment to fiscal consolidation and greater flexibility on forex rates.
  
• Govt accepts proposal to acquire 244 specialized guns for Rs 7,000 crore
  The top acquisition body of the Defence Ministry on 11th March accorded Acceptance of Necessity (AON) to the IAF's proposal to acquire 244 air defence guns at a cost of Rs 7,000 crore to be installed in vital locations including metro cities.
  
  The Defence Acquisition Council (DAC) also cleared the Navy's proposal to buy weapons and sensor systems for the P17A project wherein seven Shivalik-Class stealth frigates are being built.
  
  The meeting, chaired by Defence Minister Manohar Parrikar, also discussed the new Defence Procurement Procedure, Defence Ministry sources said adding that another DAC could also be held this month. The take away from meeting was the IAF's proposal for close in weapons systems which can target UAV's, glide bombs among others.
  
  The last meeting of DAC was held on February 23 where the Minister had reviewed acquisition proposals cleared in the last two years.
  
• All willful loan defaulters would stand disqualified from board positions
  Securities and Exchange Board of India (SEBI) Chairman U K Sinha on 12th March said that all willful loan defaulters would stand disqualified from board positions at listed companies under new rules
  
  According to Mr Sinha, willful loan defaulters barred from fund raising, taking positions at listed firms, from setting up market entities like mutual funds. He said, the targets of the SEBI are to complete probe and pass final orders in all cases within two years, starting this fiscal.
  
  Mr Sinha said Finance Minister has asked to remain alert on supervision of markets keeping in mind impact of global developments.
  
• India, IMF sign pact to set up regional training centre
  India and the International Monetary Fund (IMF) on 12th March decided to set up a regional training and technical assistance centre in New Delhi with a view to enhancing capacity development and training officials in dealing with macroeconomic issues.
  
  A memorandum of understanding to set up the centre was signed by Finance Minister Arun Jaitley and IMF Managing Director Christine Lagarde in the presence of Prime Minister Narendra Modi.
  
  This will be the first centre that fully integrates training and technical assistance and is a model for our future capacity development work, according to Lagarde.
  
• Central Govt. approves constitution of Bank Board Bureau
   Indian Prime Minister has approved the proposal of the Department of Financial Services for the constitution of the Banks Board Bureau with Mr Vinod Rai, former CAG as its chairman.
  
  Mr Anil K. Khandelwal, former CMD of Bank of Baroda, Ms. Rupa Kudwa, former MD & CEO, CRISIL and Mr H.N. Sinor, former Joint MD, ICICI Bank will be members of the autonomous body.
  
  The Banks Board Bureau, BBB is a super authority for public sector unit lenders to recommend board level appointments and advise on strategies for raising funds as well as mergers and acquisitions.
  
• FM unveiled Pro-poor budget
  India Finance Minister Arun Jaitley unveiled a fire-fighting budget on 29th March that seeks to win back support among rural voters for Prime Minister Narendra Modi's government and sustain growth against a grim global backdrop - all without borrowing more.
  
  Finance Minister Arun Jaitley's third budget marked a strategic shift by addressing rural distress in a country of 1.3 billion, where two-fifths of families rely on farming and are reeling from two years of drought.
  
  At the same time it hiked public investment in India's woeful infrastructure by 22.5 percent, while taking further steps to revive corporate investment that Modi needs to create new jobs for India's burgeoning workforce.
  
• Highlights of budget for the fiscal year
  FISCAL DEFICIT
  • Fiscal deficit seen at 3.9 percent of GDP in 2015/16
  • Fiscal deficit seen at 3.5 percent of GDP in 2016/17
  • Planned expenditure seen at 5.5 trillion rupees in 2016/17
  • Proposes to set up panel to review fiscal responsibility management act
  
  RURAL ECONOMY
  • Farmer welfare budget to total 359.84 billion rupees
  • Rural road development to get 190 billion rupees
  • Target of agriculture credit at 9 trillion rupees
  • Interest subvention towards farm loans at 150 billion rupees
  • To set up dedicated irrigation fund worth 200 billion core initially
  • Allocates 55 billion rupees for crop insurance programme for 2016/17 (PM Fasal Bima Yojana)
  
  Social sector
  • Rs. 38,500 crore for Mahtma Gandhi MGNREGA for 2016-17
  • Swacch Bharat Abhiyan allocated Rs.9,500 crores.
  • Hub to support SC/ST entrepreneurs
  • Government is launching a new initiative to provide cooking gas to BPL families with state support.
  • LPG connections to be provided under the name of women members of family: Rs 2000 crore allocated for 5 years for BPL families.
  • 2.87 lakh crore grants to gram panchayats and municipalities - a quantum jump of 228%.
  • 300 urban clusters to be set up under Shyama Prasad Mukherji Rurban Mission
  • Four schemes for animal welfare.
  
  GROWTH
  • Nominal GDP growth seen at 11 percent year-on-year in 2016/17
  
  MONETARY POLICY
  • Government along with central bank to set retail inflation target every 5 years
  • Monetary Policy Committee to have 6 members, including 3 appointed by federal government
  • Monetary Policy Committee to decide policy rates to achieve inflation target; decisions shall be binding on central bank
  • RBI act is being amended for implementing monetary policy framework
  
  BANKING REFORMS
  • Government to infuse 250 billion rupees capital into state-run banks in 2016/17; will find resources for additional capital for banks if required
  • To weigh cutting stake in state-run IDBI below 50 percent
  
  POLICY REFORMS
  • Proposes to raise foreign portfolio investment limit in state-run companies except banks to 49 percent from 24 percent currently
  • Bankruptcy code for financial firms to be introduced in parliament in 2016/17
  • To list general insurances companies on stock exchanges
  • Companies Act 2013 to be amended to improve ease of doing business
  
  MARKET REFORMS
  • Investment basket of foreign portfolio investors in corporate bonds will also include unlisted debt securities, pass-through securities
  • Proposes raising investment limit for foreign entities in local stock exchanges to 15 percent from 5 percent
  • Government proposes developing an electronic platform for repo in corporate bonds in 2016/17
  
  INFRASTRUCTURE
  • Allocates 2.21 trillion rupees for infrastructure development for 2016/17, up 22.5 percent on last year
  • Allocation for roads and highways development at 550 billion rupees
  • Capital expenditure on roads and rail development at 2.18 trillion rupees
  
  DISINVESTMENT
  • Total stake sales in 2016/17 seen at 565 billion rupees
  • To encourage central public enterprises to divest own assets for raising resources for new projects
  • Strategic divestment seen at 205 billion rupees
  
  TAXATION
  • Net revenue gain of 196.1 billion rupees seen from taxes in 2016/17
  • Will not resort to retrospective taxation in future; one time tax dispute resolution proposed for retrospective taxation
  • To rationalise corporate tax for new manufacturing companies
  • To implement general anti avoidance tax rule from April 1, 2017
  • To levy 20 percent ad valorem duty on locally produced crude oil versus current 4,500 rupees per tone
  • Security transaction tax on options raised to 0.05 percent
  • Proposes to levy infrastructure cess of 1-4 percent on certain models of cars
  • Raises factory gate tax on various tobacco products by 10-15 percent
  • Proposes limited compliance window on undeclared income of domestic tax payers; new dispute resolution scheme to resolve tax disputes
  • Thirteen cesses levied by various ministries having revenue collection of less than 5 million to be abolished
  • Proposes to raise excise duty on aviation turbine fuel to 14 percent from 8 percent
  • Considers scrapping export duty on low-grade iron ore
  • Increases import duty on aluminium products to 7.5 percent from 5 percent
  • Redemption of sovereign gold bonds by individuals will be exempt from capital gains tax
  • Forex appreciation gains at redemption on rupee-denominated bonds by non-residents will be exempt from capital gains tax
  • No changes have been made to existing income tax slabs
  • Rs 1,000 crore allocated for new EPF (Employees' Provident Fund) scheme
  • Govt. will pay EPF contribution of 8.33% for all new employees for first three years
  • Deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit those living in rented houses.
  • Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.
  • Service tax exempted for housing construction of houses less than 60 sq. m
  • 15 per cent surcharge on income above Rs. 1 crore
  
  Corporate tax proposals
  • New manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25 per cent + surcharge and cess provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation.
  • Lower the corporate tax rate for the next financial year for relatively small enterprises i.e companies with turnover not exceeding Rs 5 crore (in the financial year ending March 2015), to 29 per cent plus surcharge and cess.
  • 100 per cent deduction of profits for 3 out of 5 years for startups setup during April, 2016 to March, 2019. MAT will apply in such cases.
  • 10 per cent rate of tax on income from worldwide exploitation of patents developed and registered in India by a resident
  
  EXPENDITURE
  • Allocates 2.49 trillion rupees for defence sector in 2016/17
  
  BORROWING
  • Gross market borrowing seen at 6 trillion rupees for 2016/17
  • Net market borrowing seen at 4.25 trillion rupees for 2016/17
  • Government to switch bonds worth 750 billion rupees in 2016/17
  
  SUBSIDIES
  • Total subsidy seen at 2.5 trillion rupees in 2016/17
  • Food subsidy seen at 1.35 trillion rupees
  • Petroleum subsidy estimated at 269.5 billion rupees
  • Fertilser subsidy seen at 700 billion rupees
  
  INVESTMENT
  • 100 percent foreign direct investment to be allowed in food processing industry
  • Promises further reforms in foreign direct investment policy in insurance, pension, asset recast companies
  
  GOLD
  • Jaitley makes no mention of revising gold import duty in budget speech
  • India raises concessional countervailing duty on gold dore bars to 8.75 percent from 8 percent
  
  
• 60% of EPF deposits to be taxed on withdrawal after April 1
  Government has decided to impose tax at the time of withdrawal on 60 per cent of the contributions made after 1st of April this year to Employees Provident Fund, EPF and other schemes.The move will bring parity in New Pension Scheme and other retirement schemes
  
  At present, social security schemes run by retirement fund body Employees Provident Fund Organisation,EPFO are tax exempt at the stage of deposits, accrual of interest and withdrawals.
  
  At per Budget proposals, contributions made on or after April 1 by an employee participating in a recognised provident fund and superannuation fund, up to 40 per cent of the accumulated balance attributable to such contributions on withdrawal shall be exempt from tax.
  
  The budget has also proposed to increase the threshold for deducting tax deducted at source (TDS) on payment of accumulated balance due to an employee in EPF to Rs 50,000 from existing Rs 30,000.
  
• Global top ranks for Delhi, Hyderabad airports
  The Indira Gandhi International Airport (IGIA), New Delhi, and Rajiv Gandhi International Airport (RGIA), Hyderabad, have been featured among the world’s top airports in ACI ASQ ranking yet again.
  
  While IGIA, managed by Delhi International Airport (P) Limited, a GMR-led consortium, retained the world’s number one position for the second consecutive year in the 25-40 Million Passengers Per Annum (MPPA) category, RGIA has been featured among the world’s top three airports for the seventh year in a row, in the 5-15 MPPA category.
  
  The ranking was been announced by Airports Council International (ACI) in the 2015 Airport Service Quality (ASQ) Awards, on 1st March.
  
  According to a statement from GMR, the Delhi airport stands ahead of other Indian airports by winning maximum number of awards in 2015. The airport has also been conferred with The Best Airport by Size & Region, Asia Pacific (25 – 40 MPPA) and 2nd Best Airport by Region, Asia Pacific.
  
  Delhi was ranked first in the 25-40 MPPA category worldwide in 2014 and 2015. It handled about 958 flight movements a day in 2015.
  
  ACI ASQ is a premier passenger service benchmarking programme that ranks around 300 airports around the world on the basis of airport service quality surveys which represent passenger feedback on 34 key service indicators.
  
• RBI allows banks to expand capital base to meet Basel III norms
  At a time when public sector banks (PSBs) have been struggling with a low capital base, the Reserve Bank of India (RBI) has allowed banks to beef up its capital adequacy by including certain items such as property value, foreign exchange for calculation of its Tier-I capital.
  
  The new norms revealed by the regulator suggest that banks can now include the value of the property while calculating its Tier-I or core capital base. But not the entire value of the property would be included; instead only 45 per cent of the property value would be counted
  
  However, this comes with caveats. For instance, the regulator has stated that the property value would be counted only if the bank is able to sell the property readily at its own will and there is no legal impediment in selling the property. Apart from this it also mandates that the valuation should be obtained from two independent valuers, at least once in every three years.
  
  Analysts with a credit rating agency said considering revalued assets (real estate) as part of common equity may only serve the purpose of regulatory capital requirement. That hardly improves the credit profile of banks. The asset has to be ready (available) to absorb loss in times of need.
  
  Apart from these two, gains arising out of setting off the losses at a later date can also be counted as Tier-1 capital, up to 10 per cent. This will be a breather for the lenders, especially PSBs, which have been grappling with the issue of mounting bad loans and depleting capital base.
  
  According to RBI, this move would help in unlocking Rs 30,000-35,000 crore of capital for PSBs and up to Rs 5,000 crore for private banks.
  
  The government estimates that state-run lenders would require Rs 1.8 lakh crore over the next four years. Banks would have the onus to raise the balance Rs 1.1 lakh crore from the market. This is because the finance ministry has promised to pump into PSBs Rs 25,000 crore each in FY16 and FY17 and Rs 10,000 crore each in FY18 and FY19. RBI’s move on Tuesday will serve in meeting the capital requirements.
  
  According to new Basel-III norms, which kick in from March 2019, Indian banks need to maintain a minimum capital adequacy ratio (CAR) of nine per cent, in addition to a capital conservation buffer, which would be in the form of common equity at 2.5 per cent of the risk weighted assets. In other words, banks’ minimum CAR must be 11.5 per cent, which is higher than the 9.62 per cent banks are required to currently maintain.
  
• Govt approves winding up of NMCC with immediate effect
  The Cabinet Committee on Economic Affairs on 2nd March approved winding up of National Manufacturing Competitiveness Council (NMCC) with immediate effect. The Council has fulfilled the mandate for which it was constituted.
  
  The NMCC was established in 2004 as a part of the Common Minimum Programme of the UPA government to provide a continuing forum for policy dialogue to energize and sustain the growth of manufacturing industry.
  
  Union Cabinet has given its approval to set up 36th International Geological Congress as a society under the Indian Society Registration Act. The society will organize 36th International Geological Congress in March 2020 and promote geo-science in Indian sub-continent. The event will be held in Delhi.
  
  The event will benefit the entire geo-scientific community and all geo-science-related domains including mineral exploration, mining, environmental management, climate change studies and management of natural hazards.
  
  It is also expected to give a boost to geo-tourism in the country. The Cabinet was apprised of three Memorandum of Cooperation and Memorandum of Understanding signed with Japan and others in Rail sector in the recent past.
  
• Centre releases over Rs 505 cr for schemes under North-Eastern Council
  The Centre has released over 505 crore rupees for schemes under the North-Eastern Council. Utilization certificates amounting to about 415 crore rupees in respect of the ongoing 81 projects has been received. Giving this information in reply to questions in the Lok Sabha on 2nd March, Minister of State in PMO Jitendra Singh said 46 projects are running up in delay.
  
• World Bank announces second auction for emission reductions
  World Bank will auction the right, but not the obligation, to sell emission reduction credits from methane abatement projects, on May 12. This will be the bank’s second such auction — the first was held on July 15, 2015.
  
  Entities that put up projects which will have the effect of cutting down methane emissions can participate in the auction and buy the put-option. The winning bidders will secure an option to sell their carbon credits at the ‘strike rate’ – fixed at $3.50 a tonne of CO2 equivalent emission reduction.
  
  If the market price of carbon is higher than the strike price, the credit owners could sell their credits in the market. If the market price falls below the strike price, they have the option of selling it to the World Bank at $3.5 a tonne, or wait for a revival of the market.
  
  World Bank will buy the credits, through its ‘pilot auction facility’, out of a fund of $100 million, created by pooling contributions from a few developed countries.
  
  The strike price serves as a floor price, giving the option winners a safety net even if the carbon market collapses. The auctions are World Bank’s effort to revive the carbon market. Carbon prices, which once ruled around €17 a tonne, are now down to 35 euro cents.
  
  In the first auctions of July last year, 12 companies bought the put-options at a strike price of $2.40, covering methane spews equivalent to 8.7 million tonnes of CO2 emissions. Methane is a greenhouse gas, 25 times more harmful than CO2.
  
  A revival of carbon market is good for many companies in India, where projects registered under the ‘clean development mechanism’ will earn over 800 million certified emission reductions (CERs) by 2020. At present, Indian companies are sitting with about 200 million CERs.
  
• Aadhar bill introduced in the Lok Sabha
  Finance Minister Arun Jaitley on 3rd March introduced the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016, in the Lok Sabha. The bill to provide Aadhaar statutory backing and make it the mainstay of the government’s direct benefit transfer (DBT) programme for subsidies was tabled in the House as a money bill.
  
  The bill seeks to provide for good governance, efficient, transparent, and targeted delivery of subsidies, benefits and services, the expenditure for which is incurred from the Consolidated Fund of India, to individuals residing in India through assigning of unique identity numbers.
  
• Govt provides Rs 1000 cr loan to FACT for revival
  The department of Fertilizers on 3rd March signed an agreement with Fertilizers and Chemicals Travancore Limited (FACT) in New Delhi to release one thousand crore rupees for the revival of the company. As per this Memorandum of Agreement, FACT will get a loan of 1000 crore, to be repaid with interest within a period of five years, with a moratorium of one year.
  
  According to Chemical and Fertilizer Minister Ananth Kumar said fertilizers security is one of the main components of food security of the nation. He said, due to various reasons the company FACT had fallen sick and its revival has been one of the priority item on the Government’s agenda.
  
  The Minister said, it is one of the oldest fertilizer companies of the country and it employs over 2,700 persons.
  
• RBI releases draft guidelines on account aggregators
  The Reserve Bank of India (RBI) on 3rd March said only non-banking financial companies (NBFCs) registered with the central bank could act as an account aggregator, which provides consolidated views of financial assets, such as savings bank deposits, fixed deposits, mutual funds, and insurance policies for the customer to choose from.
  
  In draft guidelines on account aggregator NBFCs,RBI said the net owned fund of such companies should not be less than Rs 2 crore and the company should not undertake any other business other than being an account aggregator.
  
  The business will be IT-driven and initially, only financial assets whose records are stored electronically and are under the regulation of the financial sector regulators, namely, RBI, Sebi, Insurance Regulatory and Development Authority of India and Pension Fund Regulatory and Development Authority shall be considered for aggregation.
  
  The Reserve Bank of India (RBI) said it had converted two securities maturing in 2016-17 and one security maturing in 2021-22 having total face value of about Rs 37,300 crore from its own portfolio with longer tenor securities maturing in 2023-24 and 2024-25 with the government.
  
  This was part of RBI's plan to "switch" securities and address fragmented securities outstanding and ease the pressure on the exchequer by prolonging the maturity of existing securities, as envisaged last year. In March 2015, RBI had switched more than Rs 30,000 crore of bonds from its own account to longer maturity 2026-27 bonds with the government.
  
• RBI floats draft framework for account aggregator NBFCs
  RBI has come out with a draft regulatory framework for new kind of Non-Banking Financial Companies (NBFC) which would act as an account aggregator to help people view their accounts across financial institutions in a common format.
  
  Only companies registered with the RBI as NBFC-AA would be able to undertake the business of an account aggregator.
  
  The regulatory framework draft said, the entities being regulated by other financial sector regulators and aggregating only those accounts relating to the financial assets of that particular sector would not need to register with RBI.
  
  The RBI has sought comments on the ‘Draft Regulatory Framework for Account Aggregator Companies’ to facilitate consolidated viewing of financial assets holdings till the 18th of this month. The proposal said, an account aggregator will not be able to undertake any other business other than account aggregation.
  
• India moves WTO over US visa fee hike
  India has dragged the US to the World Trade Organisation (WTO) over the increase in visa fees for non-immigrant temporary workers, which it says is not compatible with multilateral trade rules and hurts Indian IT companies operating in the country.
  
  India has filed a request for consultation with Washington on 3rd March on the issue of visa fee increase. It is the first step in the dispute settlement system of the WTO
  
  In its complaint, India had said that the current measures (of visa fee hike) results in less favourable treatment for Indian companies with commercial presence in the US in comparison to US companies engaged in providing like services.
  
  This violates the principle of ‘national treatment’ embedded in multilateral trade rules, which lays down that foreign companies will be treated on a par with local firms.
  
  In December, the Obama administration brought in legislation to introduce a $4,000 fee for certain categories of H-1B visa and $4,500 for L1 visa. It hurt Indian IT companies operating in the US the most since it applies only to companies that employ more than 50 foreigners, or which have more foreigners than locals working for them.
  
  Industry body Nasscom, in its representations to the government, had said that the visa fee hike would result in an estimated $400 million annual loss to the Indian IT industry.
  
  The US has to respond to the consultation request within 10 days and consultations are to begin within a month. The maximum period of consultations is 60 days after the reception of the request, unless both parties decide to extend them or suspend them.
  
  If consultations fail to resolve the dispute, India can request the Dispute Settlement Body to establish a panel of experts to study the dispute and pass its judgement.
  
• China aims to keep annual GDP growth at or above 6.5 pct in next 5 years
  China aims to keep average annual economic growth at or above 6.5 percent in the next five years, the government said on 5th March as it unveiled a draft of its new five-year development plan at the annual meeting of parliament.
  
  China also will increase the contribution of the services sector to its economic growth in the next five years, the government said.
  
  China's 13th five-year plan is a blueprint for economic and social development between 2016 and 2020. The final version will be approved by the parliament in the next two weeks.
  
  It will allow more private investment into its banking secot, improve the mechanism for its interest rate and exchange rate markets, and improve operation and management of its foreign exchange reserves.
  
  China will stabilise its economic policy stance, improve communication with the market and improve transparency and predictability of policy.
  
  Weighed down by sluggish demand at home and abroad, industrial overcapacity and faltering investment, China's economic growth slowed to 6.9 percent in 2015, its weakest in a quarter of a century. Economists widely expect it to cool further to around 6.5 percent this year
  
  China also aims to cut energy consumption per unit of gross domestic product by 15 percent by 2020, and reduce carbon emissions per unit of GDP by 18 percent by the end of the decade. China will strengthen construction of storage of strategic reserves for oil products, and will build.