ECONOMY AFFAIRS NOVEMBER 2014

• Rs 83,000 crore revenue lost on SEZs in 6 years
  According to Comptroller and Auditor General of India more than 50% of land allotted to special economic zones (SEZs) across the country remains idle, and its very purpose was defeated with no significant increase in employment even as the government's revenue foregone was to the tune of Rs 83,000 crore between 2007 and 2013
  
  Exposing systemic weaknesses in tax administration, a performance audit on SEZs by the CAG revealed that ineligible tax deductions were extended to companies, some of which diverted land allotted to them to other uses. There was overall decline in manufacturing in these zones, said the CAG report.
  
  The revenue foregone, or loss to the exchequer, could be many times more considering other concessions availed by these companies such as stamp duty, VAT, CST etc could not be quantified in the absence of any monitoring mechanism
  
  A similar study on functioning of SEZs was carried out by the parliamentary standing committee on commerce in June 2007 where it had estimated the duties foregone at over Rs 1.75 lakh crore from tax holidays granted to SEZs between 2004 and 2010.
  
  The land allotted for Jawaharlal Nehru Port Trust SEZ. The purpose of setting up SEZs was to create large scale employment, investment, exports and economic growth. The CAG report, however, said national indices on economic growth, trade infrastructure, investment and employment generation did not show any upward trend due to SEZs.
  
• PAC questions Centre on oil, gas contracts
  The Public Accounts Committee of Parliament has asked the Centre to explain its role in the implementation of the production sharing contracts signed for hydrocarbon discovery and production including with Reliance Industries Ltd for the East Coast block – KG D6.
  
  The new panel has sought answers from the Ministry for Petroleum & Natural Gas on four critical issues – calculation of revenue sharing, role of the Centre in deciding the relinquishment of the unexplored areas, appointment of auditors, and issue of gas pricing.
  
  So far, there is a consensus among the PAC members that the pre-qualification criteria for awarding the blocks and system of auditing itself were faulty and need improvement. The PAC is in sync with the Comptroller and Auditor General’s performance audit report on the hydrocarbon production sharing contracts.
  
• SEBI outlines three-pronged strategy to tackle Ponzi menace
  Aiming to curb the menace of Saradha-type deposit scams and Ponzi schemes, regulatory agencies, in association with State Governments, have formulated a three-pronged strategy to tackle them.
  
  The strategy involves (implementing) the State-level Depositor Protection Act, State-level co-ordination for exchange of information, and new provisions under the SEBI Act
  
  20 States and Union Territories had already enacted a Depositor Protection Act, while Bills passed by six States and Union Territories were awaiting Presidential assent. The Act empowers a District Magistrate to act on complaints against any entity. The officer can enter any premises, inspect and attach property (personal or occupied illegally), arrest the accused, and disgorge money. Disgorgement allows an authority to distribute the illegally accumulated money to affected people.
  
• In 20 years India will be a $ 10 trillion economy: PwC
  India can build a $10-trillion economy over two decades if it targets 9 per cent annual GDP growth, said a report by global professional services firm PricewaterhouseCoopers (PwC). This report, entitled ‘Future of India – The Winning Leap’, was launched by Dennis M Nally, Global Chairman of PwC, in the Capital on 24th November. It outlines………..
  • The solutions required to lead India to unprecedented economic growth coupled with radical improvements in its human development index (HDI) over the next two decades.
  • India is one of the most important markets and the best is really yet to come.
  • To achieve the aspirational 9 per cent GDP growth, there is a need to increase annual foreign investment flows six-fold
  • There is also a need to ramp up research and development (R&D) spends as a percentage of GDP from 0.8 per cent in 2013 to 2.4 per cent in 2034.
  • Both the Government and industry should collaboratively take steps to increase R&D spend.
  • A combination of higher R&D investment, technological spillover and better allocation of financial capital will accelerate GDP growth
  • A concerted effort from corporate India, supported by a vibrant entrepreneurial ecosystem and a constructive partnership with the Government, will play a critical role
  • Given the complexity and scale of the challenges facing the country, the resources required, and the urgency of demands for change coming from Indian citizens, sector players must work out solutions that deploy non-linear growth, it said.
  • For instance, an approach that increases ‘average years of schooling’ from seven to 10 by 2034 could save the education sector $170 billion in cumulative investments.
  
  
• Revive sick PSUs: Panel
  A government-appointed committee has recommended formation of a company to revive sick CPSEs. The Committee headed by NTPC Chairman Arup Roy Choudhury was to examine the possibility of formation of a joint venture company funded by seed equity from Maharatna and other cash-rich central public sector enterprises (CPSEs) to administer and manage sick state-run enterprises that can be revived.
  
  The Committee has submitted its report in October 2014. The report has given, inter alia, an analysis of sick CPSEs and recommended formation of a company to revive sick CPSEs," Union Heavy Industries & Public Enterprises Minister Anant Geete informed the Lok Sabha in a written reply.
  
  Besides examining the feasibility of setting up of a separate company to nurse ailing PSUs back to health, the terms of reference of the Committee included identifying sources from which funds may be raised for the proposed entity as equity capital; and to recommend organisational structure of the proposed entity and its interface with the Ministries.
  
  Based on the recommendations of the Board for Reconstruction of Public Sector Enterprises (BRPSE), revival of 48 CPSEs and closure of 4 CPSEs have been approved till October 31, 2014 envisaging total fund/non-fund based assistance of Rs 41,139 crore (cash assistance of Rs 11,135 crore and non-cash assistance of Rs 30,004 crore) .
  
• OECD sees gradual world recovery
  The global economy will gradually improve over the next two years but Japan will grow less than previously expected while the Euro Zone struggles with stagnation and an increased deflation risk, the OECD said on 25th November.
  
  There will be marked divergences among countries both in terms of growth and monetary policy, leading to volatility in debt and foreign exchange markets, the Organisation for Economic Co-operation and Development said.
  
  The United States and Britain will grow more strongly than the Euro Zone and Japan and, among emerging countries, India, Indonesia and South Africa are set to recover steadily. Russia's economy is set to stagnate next year and China's will soften, the think-tank said in its bi-annual economic outlook.
  
  Overall, the global economy is set to grow by 3.3 per cent this year, 3.7 per cent in 2015 and 3.9 per cent in 2016, the OECD said, confirming forecasts published before the G20's summit earlier this month.
  
  While most estimates remained unchanged, Japan's forecast was more than halved for 2014 and cut to 0.8 per cent for next year after it unexpectedly fell into recession in the third quarter. But the OECD still expects Japan to recover as corporate profits remain high and a weak yen will help exports.
  
• Govt sets up clean India fund
  The government on 25th November set up a Swachh Bharat fund to collect contributions from individuals and organisations for its clean India programme. Construction activity for water supply to the constructed toilets, training and skill development to facilitate the maintenance of the toilets and to ensure its inter-linkages with education on hygiene, and liquid waste management will be financed from the fund.
  
  The fund, called Swachh Bharat Kosh, would be administered by a governing council chaired by the secretary, department of expenditure. Other permanent members will be secretaries of planning, drinking water and sanitation, urban development, housing and urban poverty alleviation, rural development, panchayati raj and school education and literacy.
  
  The line ministries will propose projects to the governing council. The states can also apply for the funds through the respective line ministries. The allocation from the fund will be used to supplement departmental resources for these activities.
  
  The progress of activities undertaken from the fund will be reviewed by the finance minister on a quarterly basis and by the Prime Minister from time to time. The ministries would ensure that the projects/activities undertaken from the fund are not duplicated.
  
  To ensure financial accountability, internal audit shall be carried out by the Chief Controller of Accounts, once every quarter. In addition, statutory audit will be carried out annually by an independent auditor from a board of auditors appointed by the CAG.
  
• World Bank to offer $121 mn to Uttarakhand for health services
  The World Bank will offer $121 million to Uttarakhand to improve health services in the state, which is facing shortage of doctors, Health Minister Surendra Singh Negi said on 25th November. Citing that 13 doctors, including one specialist, are needed to run a trauma centre, he said the state has not yet fulfilled the mentioned requirement, because of which the state's trauma centres are not fully operational. There is a shortage of 1,500 doctors in various hospitals, community health centres (CHCs) and primary health centers (PHCs) in the state, he said.
  
• RBI issues final norms for small payment banks
  The Reserve Bank of India on 27th November issued final guidelines for payments and small banks that aim to take banking services to more people and small businesses. The RBI aims to push financial inclusion by setting up these niche outfits — small finance banks that can have all-India operations and payments banks, which can accept more deposits.
  
  The guidelines open up a window of opportunity for entities which did not bag new bank licences in April. The minimum paid-up equity capital for both small and payment banks has been pegged at Rs 100 crore. Eligible promoters for a small bank include resident individuals/professionals with experience in banking and finance; and companies and societies.
  • Existing non-banking finance companies (NBFCs), microfinance institutions and local area banks can also opt to convert into a small bank.
  • The RBI said proposals from large public sector entities and industrial and business houses, including NBFCs promoted by them, will not be entertained to set up small banks.
  • In the case of payment banks, the eligible promoters will include existing non-bank prepaid payment instrument issuers and other entities such as individuals/professionals; NBFCs, corporate business correspondents, mobile telephone operators, and super market chains.
  • A promoter/promoter group can have a joint venture with an existing scheduled commercial bank to set up a payment bank, subject to the stake holding complying with the Banking Regulation Act.
  • The small bank will primarily undertake basic banking activities of acceptance of deposits and lending to un-served and under-served sections, including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.
  • Small banks will be required to maintain a minimum capital adequacy ratio of 15 per cent of the loans on a continuous basis.
  • In the draft guidelines, the RBI had suggested that small banks would have a restricted area of operations (possibly contiguous districts in a homogenous States). However, in the final guidelines, these restrictions have been removed. The small bank will be required to extend 75 per cent of its credit to the priority sector. Payments banks can accept deposits — current and savings bank — from individuals, small businesses and other entities. However, they cannot accept non-resident Indian deposits.
  • The payment bank will initially be restricted to holding a maximum balance of ?1 lakh per individual customer. While the bank can issue ATM/debit cards, it cannot issue credit cards.
  • It can contract outside liabilities (deposits) but not exceeding 33.33 times (against 20 times in the draft guidelines) its net worth.
  
  
• Banks allowed to lend against infra, housing bonds issued by them
  To provide liquidity to retail investors investing in long-term bonds issued by banks for financing infrastructure and affordable housing, the Reserve Bank of India on 27th November said banks can extend loans to individuals against these bonds. The central bank said boards of the banks should lay down a policy prescribing suitable margins, purpose of the loan and other safeguards.
  
  Further, such loans should be subject to a ceiling, say, Rs 10 lakh a borrower, and tenure of loan should be within the maturity period of the bonds. However, banks are not permitted to lend against such bonds issued by other banks.
  
  In July, the RBI had issued detailed guidelines for banks to raise long-term resources to finance their long-term loans to infrastructure as well as affordable housing. This was aimed at promoting both growth and stability, as well as improving the supply side.
  
  According to the guidelines, the bonds will be fully paid, redeemable and unsecured and would rank pari-passu along with other uninsured, unsecured creditors. The minimum maturity period of the long-term bonds shall be seven years.
  
  The infrastructure sector comprises categories such as transport, energy, water and sanitation, communication, and social and commercial infrastructure.
  
  For the purpose of raising long-term bonds, the RBI has defined affordable housing as loans give by banks to individuals up to Rs 50 lakh for houses of values up to Rs 65 lakh located in the six metropolitan centres — Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad — and Rs 40 lakhs for houses of values up to Rs 50 lakh in other centres for purchase/construction of dwelling unit a family.
  
• Coal ministry adds 18 more blocks to phase I allotment
  The Coal Ministry has added 18 more blocks to the 74 being offered in the first bidding round, taking the total to 92. The overall coal requirement for the power sector — indigenous as well as imported — is 595 million tonnes for 2014-15. There is an overall shortage of 81 million tonnes of indigenous coal for the power sector.
  
  Of the 92 blocks to be auctioned or allocated to public sector entities, 59 will be set aside for the power sector, the official said. And, of the 59, the Centre will put 25 blocks for auction and 34 will be kept aside for Central and State public sector entities.
  
• Jan Dhan Target rose to 10 cr accounts
  The government has revised upwards target for opening of accounts under Pradhan Mantri Jan Dhan Yojana (PMJDY) from 7.5 crore to 10 crore by January 26. As per the latest figure, about 8 crore accounts have been opened under the flagship financial inclusion scheme of the government.
  
  It was informed that 7.64 crore bank accounts have been already opened under PMJDY till November 18, out of which Public Sector Banks (PSBs) have opened 6.15 crore accounts, Regional Rural Banks(RRBs) 1.28 crore accounts and private sector banks 20 lakh accounts. In terms of deposits, Rs 6,015 crore has been collected upto November 18 under the scheme.
  
  However, the growth has moderated after September 30. Out of 7.64 crore accounts opened till November 18, 5.74 crore accounts opened are zero balance accounts.
  
• GDP projection reduced
  Growth in India's gross domestic product (GDP) this year is likely to be on the lower side of the 5.4-5.9 per cent predicted by the finance ministry in the Economic Survey. Data for the financial year's second quarter (Q2, July to September) is to be issued on 28th November. It might show the economy grew at barely five per cent or even less.
  
• Gold imports eased
  The Centre has withdrawn the 20:80 scheme and restrictions placed on import of gold. Apparently, the comfortable position on the current account deficit front and healthy build up of foreign exchange reserves prompted the move. Further, rise in smuggling of gold and loss of revenue to the exchequer due to this could also have led to withdrawal of the scheme as well as removal of restrictions on gold imports.
  
  Under the 20:80 scheme, nominated banks /agencies/ premier or star trading houses/ special economic zone units/ export-oriented units were required to ensure that at least 20 per cent of every lot of gold imported into the country is exclusively made available for the purpose of exports and the balance for domestic use.
  
  The scheme was introduced in July 2013 to rationalize the import of gold in any form/purity, including import of gold coins/dore into the country as the country’s current account deficit surged to 4.8 per cent in the April-June 2013 quarter.
  
• 15 FDI plans cleared
  The Finance Ministry on 28th November said it has cleared 15 FDI applications, including that of Panacea Biotech and Sanofi-Synthelabo (India), and recommended HDFC Bank's proposal to hike foreign holding to the Cabinet Committee on Economic Affairs (CCEA) for consideration.
  
  The proposals were cleared by the Foreign Investment Promotion Board (FIPB), headed by the Economic Affairs Secretary, in its meeting held earlier this month.
  
• RBI issues final norms for uniform payment collection system
  The Reserve Bank of India (RBI) on 28th November came out with the final guidelines for the Bharat Bill Payment System (BBPS), which will help consumers pay multiple bills like electricity, telephone and school fees at a single point of transaction.
  
  The RBI-promoted payment retail gateway and the issuer of the Rupay debit cards, the National Payment Corporation of India (NPCI) has been appointed as the nodal body.
  
  The apex banks has set a Rs. 100-crore net worth and domestic registration as qualifying conditions for those seeking to be authorized collection agents.
  
  The final guidelines came a day after the RBI came out with the final guidelines for licensing of payment and small banks.
  
  To start with, the aggregators, who will be operating under a single brand name across the country, will collect repetitive bills which come in monthly, bi-monthly or quarterly cycles like utility bills, it said, adding the aim is to gradually include payments for school or university fees and municipal taxes.
  
  The National Payment Corporation of India (NPCI) has been appointed as the nodal body which will set the standards, and also take care of clearing and settlement as the Bharat Bill Payment Central Unit (BBPCU).
  
• Conditional transfer will cut food bill by Rs. 30k cr
  Conditional cash transfer instead of providing grains at subsidized rates to the poor under the Food Security Act can save at least Rs 30,000 crore annually, said Shanta Kumar, chairman of a panel set up to revamp the state-run Food Corporation of India (FCI).
  
  Kumar said linking cash transfer to conditions such as constructing toilets was one of the several options being considered to ensure every beneficiary under the scheme gets government support.
  
  The eight-member panel has been formed to suggest a model to improve FCI's operational efficiency and financial management and suggest a roadmap to reorient the role and functions of the state-run entity in MSP operations, storage and distribution of food grains and food security system in the country.
  
  Kumar said the panel is studying the best practices and models that different countries have adopted. For example, United States provides income support to farmers instead of subsidy. Brazil has introduced a new norm where there is conditional cash transfer linked to initiatives such as compulsory school education for children of beneficiaries and vaccination.
  
• Govt outlines easier exit norms for MSMEs
  Sick units, rising non-performing assets, an exit policy and a new definition for micro, small and medium enterprises (MSMEs) are among the changes proposed in the amended MSME Act 2006. A background note prepared by the MSME Ministry, heeding the recommendations of the Prime Minister’s Task Force, has proposed replacement of the Provincial Insolvency Act 1920 to enable ‘time-bound revival and exit’ for unincorporated firms.
  
  As per the proposed changes, an MSME can file an application voluntarily if accumulated losses equal half or more of its entire net worth of the previous financial year and the enterprise apprehends failure of its business. The first appeal by an aggrieved enterprise/creditor before the appellate authority should be filed within 30 days, while the second appeal against the appellate authority’s order would lie before the Supreme Court, it said.
  
  The draft amendment proposes to change the existing definition of MSMEs in the manufacturing sector based on investment in plant and machinery to Rs. 50 lakh from Rs. 25 lakh for micro units, up to Rs. 10 crore against the existing Rs. 5 crore for small units and up to Rs. 30 crore against Rs. 10 crore for medium enterprises.
  
• RBI to invite applications for setting up of small, payment banks
  The Reserve Bank of India will invite applications for setting up of small and payment banks -- aimed to cater to small businesses and low income households. The apex bank is also planning to revamp its cash management system so that the microfinance borrowers are protected from arbitrary loan pricing.
  
• NABARD rolls out Rs 100 cr plan for fish farming
  The National Bank for Agriculture and Rural Development (Nabard) has rolled out Rs 100 crore area development scheme (ADS) for fresh water fish farming in five districts of Odisha- Balasore, Jagatsinghpur, Mayurbhanj, Cuttack and Rayagada.
  
  The scheme covers five districts in Odisha in inland fishing activities. It has been formulated under the consultative process involving all the stakeholders Activities like fish farming in both new and renovated ponds, eco-hatcheries, integrated farming with horticulture and livestock, fish seed banks and aqua shops have been included in the scheme along with the farm models.
  
• Japan slides into recession
  Japan’s economy unexpectedly slid into recession as housing and business investment declined following a sales tax hike, further clouding the outlook for the global economy. The world’s third-largest economy contracted at a 1.6 per cent pace in the July-September quarter, the government said on Monday, contrary to predictions it would grow after a big drop the previous quarter. An economy is generally considered to be in recession when it fails to grow for two consecutive quarters.
  
  This is not just bad news for Japan. It deepens global uncertainty as growth slows in China and remains nearly flat in the 18-country eurozone. Japan’s weakness could be a drag on growth elsewhere if its companies cut investment and buy fewer imports such as machinery, electronics, raw materials and food. The U.S. economy, which grew at a 3.5 per cent pace last quarter, is outpacing most of the developed world.
  
• Stalled infrastructure projects will need Rs 5.7 lakh crore more
  The Planning Commission has told Prime Minister Narendra Modi that additional funds of Rs 5.7 lakh crore will be required to complete 738 central projects in various infrastructure sectors. Almost Rs 5.6 lakh crore has already been expended on these projects.
  
  Making a presentation on Infrastructure Targets & Performance for the current fiscal year to the Prime Minister on November 5, the Commission painted a dismal picture, stating that that 83 per cent of the 738 projects monitored face delays of three months to 12 years. This has resulted in cost overruns of Rs 1.89 lakh crore.
  
  The worst affected sector is the Railways, with 274 out of 289 projects delayed due to funds constraints (see table). Road, power, petroleum, coal and shipping projects, among others, also face delays and cost overruns. While 252 of these 738 central projects are of Rs 1,000 crore or more, the rest are in the Rs 150 crore Rs 1,000 crore range.
  
  The Commission has cited specific and generic causes for the delay, including land acquisition, environment, law and order issues, as well as inadequate diligence in project preparation.
  
  To overcome the delays and cost overruns, the Commission has proposed efficiency parameters, including having a matrix based on key operational indices, outlining the performance in 2013-14 and targets for 2014-15.
  
• Kelkar panel favors PSC regime and waiving of import duty on LNG
  An experts’ panel on petroleum reforms, headed by Vijay C Kelkar, former Union finance and petroleum secretary, has recommended continuing with the existing production-sharing contract (PSC) regime in the hydrocarbon sector, opposing the Rangarajan-proposed revenue-sharing contract (RSC) model.
  
  The panel’s report, Road map for reduction in import dependency in the hydrocarbon sector by 2030, has made a total of 52 recommendations, based on 30 meetings held over 18 months. It was set up in 2013 and gave its first report in January this year. The final report follows a consultation paper in August, seeking comments from stakeholders. Its suggestions, the panel says, have the potential to bring down India’s annual oil import bill by $70-80 billion, around half the present total.
  
  Under the PSC regime, oil companies can recover their costs from the sale proceeds of oil and gas before sharing the profit with the government. The Comptroller and Auditor General of India had criticized this approach, arguing it encourages companies to unnecessarily increase capital expenditure. Under an RSC model, companies state upfront the amount of oil or gas they will share with the government from the first day of production.
  
  The panel has suggested making Rs 7,000 crore available to the Directorate General of Hydrocarbons (DGH) for creation of a national data bank on domestic basins; delegating quasi-judicial power to DGH, on the lines of the Securities and Exchange Board of India; introducing an Open Acreage Licensing Policy by 2016; offering equity participation to foreign firms in nomination fields; exempting oil firms’ production from mature fields from subsidy sharing; ensuring absence of retrospective changes to contracts, to boost investor sentiment; encouraging coal gasification and shale gas exploration; and developing petroleum clusters of oilfield service providers on the east and west coasts.
  
  The panel recommended market-linked gas pricing, a decision the new government has taken. The petroleum ministry has raised natural gas prices by 33 per cent to $5.61 a unit, based on an average of global well-head prices. The panel also pitched for contract extension up to the economic life of a block, a key demand of Vedanta Resources subsidiary, Cairn, which operates the Barmer block in Rajasthan. Kelkar has also made out a case for fiscal reform such as including oil and gas under the proposed national goods and services tax framework and waiving of customs duty on import of liquefied natural gas for all purposes.
  
• Environmental panel submitted report
  A committed headed by former Cabinet Secretary TSR Subramanian, set up to review environmental laws, has submitted its report to Environment Minister Prakash Javadekar. The committee’s report takes ahead the Government’s move to amend five key green laws to ensure transparency in clearances along with protecting the environment. Receiving the report, Javadekar said it would help the Ministry avoid “undue delays and ensure transparency in clearances and implementation of projects.”
  
  Subramanian said the committee had built on the existing mechanisms to optimize efforts “to balance developmental imperatives causing least possible damage to environment”.
  
  The expert panel was assigned to review the Environment (Protection) Act, 1986, Forest (Conservation) Act, 1980, Wildlife (Protection) Act, 1972, The Water (Prevention and Control of Pollution) Act, 1974 and The Air (Prevention and Control of Pollution) Act, 1981.
  
• Kisan vikas patra relaunched
  The Finance Ministry has said that there will not be requirement of Permanent Account Number or PAN in putting money in relaunched Kisan Vikas Patra. There will also not be any upper limit on investment. The Finance Minister Arun Jaitley and Communication Minister Ravi Shankar Prasad relaunched KVP on Tuesday. The scheme aims to boost saving and use them for long term capital requirement. "This will be a bearer instrument just like currency and easy to encash," he said.
  
  In view of the popular demand and to revitalize Small Savings, the Finance Minister in his Budget Speech announced that KVP a very popular instrument among small savers will be reintroduced. The instrument will encourage people, who may have banked and unbanked savings to invest”. KYC norms regarding all National Savings Schemes (NSS) are now applicable in post offices and banks w.e.f. January, 2012.
  
  It will be available to the investors in the denomination of Rs. 1000, Rs. 5,000, Rs. 10,000 and Rs. 50,000, with no upper ceiling on investment. Initially the certificates will be sold through post offices, but the same will soon be made available to the investing public through designated branches of nationalized banks.
  
  The scheme will also safeguard small investors from fraudulent schemes. With a maturity period of 8 years 4 months, the collections under the scheme will be available with the Government for a fairly long period to be utilized in financing developmental plans of the Centre and State Governments and will also help in enhancing domestic household financial savings.
  
  Earlier, it was launched by the Government on April 1, 1988. The scheme provided facility of unlimited investment by way of purchase of certificates from post offices in various denominations. The maturity period of the scheme when launched was 5 ½ years and the money invested doubled on maturity.
  
  The scheme was very popular among the investors and the percentage share of gross collections secured in KVP was in the range of 9 per cent to 29 per cent against the total collections received under all National Savings Schemes in the country. Gross collections under the scheme in the year 2010-11 were Rs. 21,631.16 crore which was 9 per cent of the total gross collections during the year. In the year of its closure, the scheme secured gross collections of Rs. 7,575.95 crore (April 2011 to November 2011).
  
• Ranbaxy drags US FDA to court
  Ranbaxy has sued the US Food & Drug Administration (US FDA) for revoking the approvals to two of its key drugs — Valcyte (Roche) and Nexium (Astrazenca). The lawsuit, filed in District of Columbia in the US and reviewed
  
  Another Indian drug firm, Dr Reddy’s, which was granted an approval to launch a Valcyte generic (after the approval to Ranbaxy was revoked), has intervened in the case. It is on the side of the American drug regulator, as a legal wrangle on the matter could hurt its prospects.
  
  Earlier this month, the US FDA had revoked Ranbaxy’s six-month exclusivity for Nexium and Valcyte. The exclusivity period in the US market could have added about $200 million to Ranbaxy’s kitty. In the lawsuit, Ranbaxy said the US FDA’s move was arbitrary, capricious, contrary to law and in violation of constitutional rights. It also exceeded the agency’s statutory authority, the company added. Nexium, one of Astrazenca's major drugs, went off patent in May this year; Roche's Valcyte went off patent in 2010.
  
• Coal Block e-auctions in February
  The government on 19th November issued draft guidelines for e-auction of coal blocks cancelled by the Supreme Court. The auctions, Coal Secretary Anil Swarup said will begin on February 11.
  
  Announcing a timeframe for the e-auction of coal blocks cancelled by the Supreme Court in September, Coal Secretary Anil Swarup on Wednesday said the government is putting in place a system to ensure power tariffs do not raise.
  
  In the first lot, 74 blocks will be auctioned, but the number of mines a company can bid will be capped to avoid monopoly, the Secretary added. Additionally, the mines will be allocated only for specified end-use like power generation.
  
  The e-auction of coal blocks will have a two-stage tender process of technical and financial bids, as per the draft rules, which seek stakeholders’ comments by November 24.
  
  The Central Government will issue an order to the Nominated Authority specifying which coal mines are to be auctioned and which are to be allotted to Government firms.
  
  The Nominated Authority will prepare a ‘Mine Dossier’ containing particulars of geographical area, coal reserves, mine infrastructure, approvals, permits, etc. for each mine. The Centre has already appointed Joint Secretary, Coal, Vivek Bhardwaj as the Nominated Authority.
  
  Further, the rules state, “Eligibility to bid for Schedule II & III coal mines shall be dependent on the status of preparedness of their end use plant -- 80 per cent of investment made in the EUP for Schedule II mines and 60 per cent of investment made in the EUP for Schedule III mines.”
  
  All about e- auction
  E-auction is the process of conducting an auction to sell assets, natural resources or other goods through online competitive bidding.
  
  What does a typical e-auction involve?
  First, the value of the asset being auctioned is ascertained and a floor price — the minimum amount that will be acceptable by the seller — is worked out. Then, those interested in participating have to register themselves on the seller’s online platform. Thereafter, earnest money is collected from the shortlisted buyers.
  
  Once the e-auction commences, participants submit their bids during the specified period without having to be physically present at a particular place. Once the auction closes, a report is generated and the winners are intimated. The successful bidders then deposit the balance amount, after which they are issued a delivery order against which they can take delivery of the asset or resource from the seller.
  
  Why is it important?
  The biggest advantage that an e-auction offers over a physical auction is complete transparency and participation from the widest possible range of prospective bidders. E-auctions are fairer as they don’t entail human intervention unlike physical auctions where sellers post advertisements and buyers send in bids through snail mail. Large public sector miners such as National Mineral Development Corporation and Coal India already sell iron ore and coal through e-auctions.
  
  The e-auction of coal blocks ends regulatory uncertainty for companies from sectors such as power and steel which use coal as a key input. And given the skeletons now tumbling out of the closet for almost every natural resource or asset being arbitrarily allocated by the Government, e-auctions are set to gain much popularity.
  
• Indian economy showing signs of a turnaround: OECD
  The OECD has upped its 2015-16 growth projection for India to 6.6 per cent. The Paris-based think tank had pegged it at 5.7 per cent in May. The growth had remained sub-5 per cent in the last two financial years. The OECD projects it to be 5.4 per cent this financial year.
  
  Without structural reforms, the growth will remain below the 8 per cent rate achieved during the previous decade, the OECD Economic Survey of India has cautioned. It also warns that although absolute poverty has declined, it remains high, and income inequality has in fact risen since the early 1990s.
  
• SEBI tightens insider trading norms
  The Securities and Exchange Board of India (SEBI) on 19th November approved listing regulations, stricter norms to deal with insider trading menace and amendments to delisting regulations. By replacing a two-decade old law, the capital markets watchdog has approved these norms in order to bring in stricter regulations and simpler compliance requirements and boost investor confidence in Indian capital markets.
  
  The new rules broaden the scope of who can be held liable for insider trading violations and require company executives to make more transparent disclosures of their trading activities.
  
  In addition, the SEBI board has widened the definition of 'insider' by including persons connected via contractual relation, fiduciary relations, immediate relatives presumed to be 'connected persons' or anyone with access to unpublished price sensitive information (UPSI) or onus of proving non-possession of UPSI on connected person.
  
  Under the new framework, SEBI has defined a connected person in the context of insider trading activities. A connected person would be someone who is or has, during the past 6 months prior to the concerned act, been associated with a company, directly or indirectly. 
  • To protect the interest of investors, the new insider trade norms say UPSI disclosure in public domain is now mandatory before trade. Moreover, advance disclosure of UPSI is a must minimum 2 days prior to trade.
  • However, it also states that insiders can formulate pre-scheduled trading plans, which have to be disclosed to stock exchanges and have to be followed.
  • "A provision of Trading Plans on the lines of US has been introduced for insiders with necessary safeguards. Such a plan has to be for bona fide transactions and has to be disclosed on stock exchange platform in advance".
  • Meanwhile, the SEBI board has also streamlined delisting norms by saying that a delisting is successful if 25 percent of public stake is tendered and if the acquirer gets 90 percent of the share capital. If delisting fails, the acquirer must pay interest at 10 percent per annum. To provide clarity, generally available information has been defined as information that is accessible to public on a non-discriminatory platform such as stock exchange.
  
  
• Cabinet clears 4 major power sector schemes
  The Cabinet on 20th November approved four significant decisions for the power sector — Deen Dayal Upadhyaya Gram Jyoti Yojana, Integrated Power Development Scheme, North Eastern Region Power System Improvement Project, and a framework agreement for energy cooperation among SAARC members.
  
  The North Eastern Project is to strengthen the intra-State transmission and distribution system at an estimated cost of Rs 5,111 crore, including capacity-building expenditure of Rs 89 crore. The scheme is to be implemented with World Bank and Power Ministry assistance.
  
  The Integrated Power Development Scheme is for the urban areas and entails an investment of Rs 32,612 crore. The programme requires a budgetary support of Rs 25,354 crore for the entire duration. The earlier scheme Restructured Accelerated Power Development and Reforms for 12th and 13th Plans will get subsumed in this new scheme. The Deen Dayal project is for the rural areas. The full scheme entails an investment of Rs 43,033 crore, but for 2014-15 the Government has allocated Rs 500 crore.
  
  The CCEA has already approved the Rs 39,275 crore for the scheme, which includes budgetary support of Rs 35,447 crore under the earlier scheme — Rajiv Gandhi Gram Vidyutikaran Yojana. This outlay will be carried forward to the new scheme in addition to the outlay of Rs 43,033 crore, the statement said. The Cabinet also approved a framework agreement among SAARC member-states during the forthcoming SAARC Summit in Kathmandu on November 26-27.
  
• Worry over surging NPAs
  Finance Minister Arun Jaitley on 20th November told public sector banks to appraise loan proposals without “fear or favour”. Bad debts (non-performing assets or NPAs) of public sector banks (PSBs) rose sharply to 5.32 per cent as on September 30, 2014, against 4.82 per cent on September 30, 2013. This was one of the key issues discussed in the quarterly review meeting of public sector banks chaired by Finance Minister Arun Jaitley.
  
• New policy on rough marble notified
  The government on 20th November notified the import policy of rough marble and travertine blocks for the current fiscal with a quota of eight lakh tonnes. Units who have installed marble gangsaw machine in the name of the applicant would only be considered for the purpose of allocation of import entitlement, it said, adding that “no gangsaw on lease basis shall be considered.” The units should have been in operation for five years on or prior to March 31, 2014.
  
• RBI asks banks to inform customers of fall in minimum balance
  The Reserve Bank of India on 20th November asked banks to inform their customers about fall in minimum balance at least a month in advance and said that penal charges should be levied only to the extent of shortfall in such balances.
  
  The RBI directed banks to ensure that penalty should be a fixed percentage levied on the amount of difference between the actual balance maintained and the minimum balance as agreed upon at the time of opening of account. The RBI asked banks to ensure that the balance in the savings account does not turn into negative balance solely on account of levy of charges for non-maintenance of minimum balance.
  
• Kotak Bank acquires ING Vysya for Rs 15,000 crore
  On 20th November ING Vysya Bank and Kotak Mahindra Bank (KMB) announced that they were merging in an all-stock deal. The deal, valued at $2.5 billion (about Rs. 15,000 crore). Under the share swap ratio approved by KMB’s board, ING Vysya’s shareholders will get 725 equity shares of Rs. 5 each of KMB for every 1,000 equity shares of Rs. 10 each that they hold.
  
  Once the amalgamation goes through, the resulting entity will leapfrog YES Bank to become the fourth-largest private sector bank. As at September-end, the combined entity had a business size (deposits plus advances) of Rs. 2,13,261 crore as against YES Bank’s Rs. 1,42,161 crore.
  
  Kotak Mahindra Bank, which has established itself in the consumer and wholesale banking segments, will benefit from ING Vysya’s strong SME business. The branch network of the new entity will rise to over 1,200, while the head count will swell by 10,590 to 39,811 employees.
  
  The merger will see the promoter and the promoter group’s shareholding in KMB getting pared to 34 per cent in the new banking entity. The ING Group will end up owning 6.5 per cent.
  
• Biyani buys Nilgiris for Rs 300 crore
  On 21st November, Future Consumer Enterprise, a part of Kishore Biyani’s Future Group, announced that it had acquired iconic southern supermarket chain Nilgiris. The company informed the BSE that it has bought a 97.97 per cent in the retail chain. It did not disclose the amount but the deal is estimated to be worth around Rs 300 crore.
  
  The Nilgiri Dairy Farm, the retailer’s operating company, will now become a subsidiary of Future Consumer Enterprise. Actis bought its stake in the southern retail chain in 2006, when it had about 30 stores. The buyout of Nilgiris, with its franchise-operated convenience stores, will help Future Consumer Enterprise expand its footprint in Kerala, Karnataka, Andhra Pradesh, Telangana and Tamil Nadu, where it lacks a broad presence.
  
• ECB proceeds can be parked as FDs for 6 months: RBI
  Easing norms for parking external commercial borrowings (ECB), the Reserve Bank today said such loans can be kept as fixed deposits for a period of six months for use at a later stage. As per the extant norms, the money raised from abroad meant for rupee expenditure in India had to be brought immediately for credit to the rupee accounts of such borrowers.
  
  However, the facility will be applicable with the conditions that such term deposits should be exclusively in the name of the borrower, it can be liquidated as and when required and no charge in any form should be created on these deposits. RBI said that the amended ECB policy will come into force with immediate effect.
  
  The borrowers are allowed to use such proceeds for local sourcing of capital goods, on-lending to Self-Help Groups or for micro credit and payment for spectrum allocation. India's external commercial borrowings increased by 44 per cent to USD 2.78 billion on October 2014, as per the RBI data.
  
• NDDB approves 42 dairy projects worth Rs 221 crore
  National Dairy Development Board has approved 42 projects with a total outlay of Rs 221 crore for 12 states, including Bihar and Gujarat. The funds for these projects, sanctioned under the National Dairy Plan-I, will be used to boost fodder production, encourage village-based milk procurement, strengthening of semen station and among other activities, said a statement released by Agriculture Ministry. Of Rs 221 crore sanctioned for these projects, Rs 158.95 crore will grant assistance and the rest Rs 62 crore will be as share of end implementing agencies (EIAs), it said.
  
  The National Dairy Plan (NDP) - I, launched in 2012, aims to increase the productivity of milch animals and thereby increase milk production to meet the rapidly growing demand. The scheme looks at providing rural milk producers with greater access to the organized milk-processing sector.
  
  The NDP-I is being implemented by National Dairy Development Board (NDDB) through EIAs comprising state governments, state livestock boards, state cooperative dairy federations and others. NDP-I would focus on areas with higher potential in the 14 major milk producing states such as Uttar Pradesh, Punjab, Haryana, Gujarat, Rajasthan, Madhya Pradesh, Bihar, West Bengal, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Odisha and Kerala, accounting for 90 per cent of the country's milk production.
  
• Govt notifies standards for mobiles, 14 other electronic items
  The government has notified mandatory standards for 15 electronic products, including mobile phones, power banks, LED lamps, to curb flow of low quality items in the country. The Department of Electronics and Information Technology notified standards for products on November 7 and companies selling these products will have six months to comply with the norms.
  
  Apart from mobile phones, the list also includes power adaptor (or chargers) for IT products, audio, video and other similar electronic products, Uninterruptible Power Supply (UPS), alkaline batteries or other non-acid portable batteries, cash registers, copying machines, smart card readers, passport reader, point of sales machines etc.
  
  In October last year, DEITY had made it mandatory for 15 products including video games, laptop, notebook, tablet PC, Plasma/LCD/LED televisions, microwave ovens, printers and scanners, telephone answering machines, electronic musical systems etc to comply with standards notified by it. The Indian Cellular Association said that these standards were long-awaited and will help in boosting the organized sector business.
  
• Govt eases green laws for biz push
  The Union environment ministry has been working to ease the investment climate. The initiatives have made environmentalists wary but the industry is slowly securing changes that it had asked for.
  
  The Narendra Modi-led government has issued around 50 fresh guidelines easing conditions for industry in about six months, besides launching an online system for applying environment clearances. In short, it has set the ball rolling for ushering in industry-friendly reforms.
  
  To deal with the power crisis that happened, the government did away with the primary requirement of holding a public consultation in case of expansion of output for coal projects. The Union environment ministry also allowed group clearances for Coal India mines rather than examining individual project proposals in the vicinity. The government explained that these moves were a step towards enhancing coal production for boosting power supply in the country.
  
  Changing clearance dynamics:
  To increase transparency through Modi's e-governance model, MoEF has launched an online monitoring system for project developers. Thus, a project proponent will not have to visit the ministry office to apply for green clearance. It gave yet another pro-industry signal and allowed project developers to be present at the Forest Advisory Committee meetings to present their case while their projects are appraised.
  
  No land hassle:
  The Centre has relaxed all rules from a project's primary phase to the last one. For instance, land acquisition used to be a big hindrance for any project developer and it used to take years to complete the process. After this, the file comes to the ministry for clearance. The Centre relaxed the rules by allowing project proponents to give proof of initiation of land acquisition instead of going for full acquisition, which included, in some cases, a letter of consent from the land owner.
  
  Easier public dealing:
  Once a project developer acquires land, he sends relevant information about his proposal to set up a factory to the Centre. The first stage for green clearances starts with screening, which determines if a project requires further environmental studies for preparation of an Environment Impact Assessment. Environment study is a mandatory exercise, which takes into account all concerns and becomes the basis for a green nod. The government has curtailed powers of the expert committee and told them not to ask for additional studies to review site-specific impacts of the projects on environment.
  
  The Centre has also moved towards decentralizing the process of environment clearance. In wildlife areas, it has allowed project proponents to carry out preliminary surveys after securing the approval of the forest officer (chief wildlife warden), instead of approaching the Centre, and, subsequently, seeking the nod of the National Board for Wildlife (NBWL).
  
• New policy in civil aviation
  The government’s new draft policy on civil aviation proposes enhanced regional air connectivity, rationalization of jet fuel costs along with broader institutional reforms like corporatization of the Airports Authority of India (AAI) and development of a road map for Air India’s future.
  
  The policy, unveiled by Civil Aviation Minister Ashok Gajapathi Raju on 10th November, proposes listing AAI and Pawan Hans Helicopters on stock exchanges. Mr. Raju, while clarifying that national carrier Air India would not be privatized anytime soon, did not rule out the move for the future.
  
  An expert committee will be constituted to develop a road map for Air India,” the draft policy says. According to it, airports in Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore are to be developed into “major international hubs” to serve as the main access points for international travel.
  
  The Modi government, with a strong focus on infrastructure development, will be developing more airports in the Public Private Partnership (PPP) mode. The airports in Chennai, Kolkata, Ahmedabad and Jaipur are to be developed in the first phase.
  
  Currently, the Delhi, Mumbai, Bangalore and Hyderabad airports are being operated in the PPP mode as joint ventures with private companies. India currently has 132 airports, of which 46 domestic and 15 international airports are run by the AAI; 31 are not operational while the remaining are civil enclaves in defense or customs airports. The policy hints at a special package to boost air connectivity in the North-Eastern region, along with enhancing regional air connectivity across the country in general.
  
  Another significant area the policy aims to address is attracting investment to the $700 million Maintenance, Repair and Overhaul (MRO) industry by providing land and other incentives. According to the International Civil Aviation Organization (ICAO), every 100 rupees spent on air travel results in benefits worth Rs. 325 while a 100 jobs in the aviation sector create 610 jobs in the economy overall.
  
• Low interest loans for food processing units
  The Union Government has set up a Rs 2,000-crore corpus for Nabard to help lend to food processing units at a “lower interest rate”. According to Harsimrat Kaur Badal, Union Minister for Food Processing Industries, loans would be provided to units located both inside and outside mega-food parks. The fund will be provided to large food chains and units and also for creation of infrastructure in these parks.
  
• RBI tightens norms for NBFCs
  Tightening norms for non-banking financial companies (NBFCs), the Reserve Bank of India on 10th November raised the capital adequacy requirement and the net owned fund limit, among others, with an objective to mitigate risks in the sector.
  
  With a view to streamlining the regulations for the sector, the RBI also revoked temporary suspension on issuance of Certificate of Registration (CoR) to companies that want to conduct business of non-banking financial institution (NBFI). As per the latest directives, the RBI has raised the limit for NBFCs to maintain the net owned fund (NOF) requirement to four times by 2017 to Rs.2 crore.
  
  At present, the NOF requirement is at Rs.25 lakh. In a phased manner, the NBFCs would be required to raise it to Rs.1 crore by March, 2016, and to further double it to Rs.2 crore by 2017.
  
  Also, NBFCs primarily engaged in lending against gold jewellery, will have to maintain a minimum Tier I capital (or equity capital) of 12 per cent with effective from April 1 as against existing requirement of 10 per cent. For deposit and non-deposit taking NBFCs, Capital to Risk (Weighted) Assets Ratio or CRAR, which includes Tier I capital of 7.5 per cent, is 15 per cent at present.
  
  However, as per the new norms, NBFCs have to raise the Tier I capital to 8.5 per cent by end of March 2016 and 10 per cent by March, 31, 2017. Towards provisioning of standard assets, the RBI said that NBFCs would be required to raise it to 0.3 per cent by end of March 2016; 0.35 per cent by March 2017 and to 0.4 per cent by end of March 2018. Presently, every NBFC is required to make a provision for standard assets at 0.25 per cent of the outstanding. In the interest of harmonization, the asset classification norms for NBFCs-ND-SI and NBFCs-D will be brought in line with that of banks, the RBI said.
  
• States sticks to demand on GST
  The Empowered Committee of State Finance Ministers has turned down the Centre’s call for raising the threshold limit for Goods & Services Tax (GST). But the States are optimistic that the new tax reforms will be introduced from April 1, 2016.
  
  GST is the new indirect tax regime which will subsume several taxes and duties at the Central and State level. The Committee, headed by the Finance Minister of Jammu & Kashmir, Abdul Rahim Rather, which met on 11th November, discussed a letter from the Department of Revenue, Union Finance Ministry, for raising the threshold annual turnover for levying GST from the proposed Rs. 10 lakh (for general category States) and Rs. 5 lakh (for special category and North-Eastern States).
  
  Rather said: “The Centre has suggested that this limit should be Rs. 25 lakh. The Committee, at a meeting on August 20, agreed on a threshold limit of Rs. 10 lakh and Rs. 5 lakh. Rather, however, said the issue of the threshold limit will come before the GST Council. Once the Constitutional Amendment Bill is placed in Parliament, within six months the GST Council will be constituted and empowered to fix the threshold limit.
  
  Though the Centre aims to incorporate views of the States in the Bill and get it passed in the Winter Session of Parliament, which starts on November 24, Rather said that “the Committee is yet to receive the draft of the Bill.” “As soon as it is sent to us, we will discuss and give our comments. Because of the Committee it will not get delayed,” he said.
  
  The Committee reiterated its stand of keeping petroleum products, alcohol and tobacco out of GST. Although the Centre and States seem to agree on excluding alcohol and tobacco, on petroleum products the Centre has proposed inclusion at ‘nil’ rate so that both Centre and States can levy duty.
  
  GST:
  The Goods and Services Tax (GST) is a Value Added Tax (VAT) to be implemented, the decision on which is pending. It will replace all indirect taxes levied on goods and services by the Indian Central and State governments. It is aimed at being comprehensive for most goods and services.
  
  India is a federal republic, and the GST will thus be implemented concurrently by the central and state governments as the Central GST and the State GST respectively. Exports will be zero-rated and imports will be levied the same taxes as domestic goods and services adhering to the destination principle.
  
  Goods and Services Tax -- GST -- is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level. Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain.
  
  The system allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However, the end consumer bears this tax as he is the last person in the supply chain.
  
  Experts say that GST is likely to improve tax collections and boost India's economic development by breaking tax barriers between States and integrating India through a uniform tax rate. Under GST, the taxation burden will be divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and minimizing exemptions.
  
  It is expected to help build a transparent and corruption-free tax administration. GST will be is levied only at the destination point, and not at various points (from manufacturing to retail outlets).Currently, a manufacturer needs to pay tax when a finished product moves out from a factory, and it is again taxed at the retail outlet when sold
  
• Official panel finalizes floor, reserve price for coal blocks
  An inter-ministerial panel on 11th November arrived at the formula to fix the floor price for e-auction of coal blocks as well as the reserve price for allocation to public sector companies. The price is expected to be announced within a fortnight
  
  According to the formula, the e-auction price will be determined on the basis of the current value of the asset on offer, the international mine head price, and the three-year average of imported coal price.
  
  While a component for deriving the reserve price will be based on asset valuation, it will also factor in the gross calorific value (GCV) of coal for computing the net value to avoid any adverse impact on power tariffs. GCV is adopted internationally and is linked to the quality of the coal.
  
  After the meeting of the inter-ministerial panel, comprising officials from the Ministries of Coal, Power, Petroleum & Natural Gas, and Finance as well as officials of Coal India and Central Mine, Planning and Design Institute, a Cabinet note will be circulated shortly, a senior Coal Ministry official said.
  
• 3 panels formed to select chiefs for 8 banks
  Government has formed three sub-committees to select heads of eight public sector banks, including Punjab National Bank, Bank of Baroda and Canara Bank. The three sub-committees are scheduled to hold interviews of eligible candidates on November 14. Earlier this month, the government had decided that each sub-committee will have two members and all candidates will have to go through all these screening panels separately.
  
  The sub-committees have three outside experts. These experts are former Managing Director of State Bank of India (SBI) S Viswanathan, IIM Indore Director Rishikesha T Krishnan and former Chairperson and Managing Director S Panse
  
  Besides, other three members of screening committees are Department of Financial Secretary, Additional Secretary and an RBI Deputy Governor. The final selection of candidates would be made by the appointment board chaired by RBI Governor and it will be based on the weighted average marks given by each sub-committee to ensure objectivity and transparency.
  
• Norms eased for small mineral miners
  The Centre has given states the power to clear small mineral mining projects even if in environmentally sensitive areas. States will no longer have to refer to the Union environment ministry if the projects are near national parks or sanctuaries, in critically polluted areas or biodiversity protection zones.
  
  A recent order by the environment ministry, while addressing directives by the Supreme Court and the National Green Tribunal, will provide relief to industries like brick kilns, which use the topsoil of the farmland they take on lease.
  
  Following up on a Supreme Court order, the green tribunal had in August 2013 banned mining of minor minerals without clearance from the Centre to curb widespread illegal mining. Earth excavation is classified as mining of minor minerals.
  
  The apex court in a ruling on February 2012 observed mining of minor minerals could have significant adverse impacts on the environment. The court had ordered mining leases for minor minerals, including renewals for areas less than five hectares, be granted by states after being cleared by the Centre.
  
  Earlier notifications by the Union environment ministry had given greater freedom to states to clear projects that fall in environmentally sensitive areas. There was no provision in the Environmental Impact Assessment Notification of 2006, which had talked about mining of minerals on less than five hectares. The ministry has now added the provision on the request of mining and coal ministries. The mining, coal and environment ministries had decided in June that small mining projects be exempted from obtaining central clearance if states put adequate systems in place.
  
• 1,000-acre new Aerospace Park coming up near Hyderabad
  The Telangana government is setting up a 1,000-acre aerospace park close to the existing Adibatla aerospace special economic zone, near. It has also identified land in Warangal and Nizamabad for new aerospace parks as part of its effort to position Telangana as the ideal manufacturing destination.
  
  The state government, in its new industrial policy, has identified the aerospace sector as the core industry and is offering incentives in a bid to compete with Bengaluru, which is acting as the main hub for manufacturing aircraft components and aircraft.
  
  Tata Advanced Systems Ltd (TASL) is currently setting up three new facilities in the 250-acre SEZ at Adibatla in alliance with Sikorsky and Lockheed Martin for the manufacture of helicopter cabins, aircraft and its components.
  
• Telecom Dept blinks, agrees to take 150 MHz spectrum from Defense
  The Department of Telecom and the Ministry of Defense have finally agreed on the contours of how spectrum will be earmarked for use by the armed forces and mobile operators.
  
  The issue has been hanging fire since 2009 as a result of which the Defense forces had put on hold all fresh allocation of spectrum for mobile services. The new deal has been done keeping in mind the interest of the Defense forces more than that of the mobile players.
  
  While the DoT had been insisting on getting at least 230 MHz between these frequency bands, it has managed to get only 150 MHz, which was what the Defense had agreed to release initially. The DoT has moved a note seeking the Cabinet’s approval for creating an exclusive Defense Band for use by the armed forces. The spectrum usage charges have also been waived for this, which if collected would have resulted in additional revenues of Rs. 47,000 crore a year to the Government.
  
• Five global banks fined $3.4b for forex market rigging
  Regulators fined six major banks a total of $4.3 billion for failing to stop traders from trying to manipulate the foreign exchange market, following a yearlong global investigation.
  
  HSBC Holdings Plc, Royal Bank of Scotland Group Plc, JPMorgan Chase & Co, Citigroup Inc, UBS AG and Bank of America Corp all faced penalties resulting from the inquiry, which has put the largely unregulated $5-trillion-a-day market on a tighter leash, accelerated the push to automate trading and ensnared the Bank of England.
  
  Authorities accused dealers of sharing confidential information about client orders and coordinating trades to boost their own profits. The foreign exchange benchmark they allegedly manipulated is used by asset managers and corporate treasurers to value their holdings.
  
  Dealers used code names to identify clients without naming them and swapped information in online chat rooms with pseudonyms such as "the players", “the 3 musketeers” and “1 team, 1 dream." Those who were not involved were belittled, and traders used obscene language to congratulate themselves on quick profits made from their scams, authorities said.
  
  The fine brings total penalties for benchmark manipulation to more than $10 billion over two years. Britain's Financial Conduct Authority levied the biggest penalty in the history of the City of London, $1.77 billion, against five of the lenders.
  
• India’s growth momentum set to perk up: OECD
  India is the "only major economy" that is projected to see a pickup in growth momentum whereas mixed trends are predicted for the developed world, Paris-based think tank OECD said on 12th November. Most of the major economies -- developed and developing -- including the United States, Brazil, China and Russia, are expected to witness stable growth momentum.
  
  The Organization for Economic Cooperation and Development (OECD) said indicators point to weak growth in Europe.
  
• Jalan commission on expenditure
  A commission headed by former Reserve Bank governor Bimal Jalan will suggest the Centre should not carry over pending expenditure to subsequent years to make the fisc look healthier.
  
  The expenditure management commission is studying schemes, programmes, acquisitions and projects where the government spends money and will suggest ways to reduce administrative and implementation costs in its interim report to the Finance Minister Arun Jaitley after the winter session of Parliament. The commission is focusing on the delivery mechanism of programmes, the technology used and accounting methods. It is not only looking at welfare schemes and defense acquisitions, but also how salaries and pensions are disbursed and how the government acquires everything from office space to stationary. It is examining whether the government's accounting system needs to be changed.
  
  The government follows cash accounting, where income is counted when cash (or a cheque) is received, and expenses when actually paid. The alternative is accrual accounting, where transactions are counted when they happen regardless of when the money is received or paid.
  
  According to a finance ministry official, a big administrative system like India follows cash accounting because the accrual method is too complicated. Smaller economies like New Zealand follow accrual accounting. "The commission is examining if the government can adapt a system that brings together best practices from both methods," the first official quoted above said. He added deliberations on this were in preliminary stages.
  
• Govt aims to raise manufacturing share to 25% of GDP
  Finance Minister Arun Jaitley on 12th November said the Central government was determined to meet the “uphill national challenge” of increasing the contribution of manufacturing in gross domestic product (GDP) from 15 to 25 per cent.
  
  The finance minister said the services sector was an area in which there was a huge space to grow. Recalling the success of the information technology industry in India, Jaitley said several US presidents had tried to impose restrictive regimes on outsourced services to save jobs in their country. “This means you are forcing your citizens to buy costlier services from their country when these are available at the same time at a fraction of the cost, outside.”
  
• Six Indian infra projects in world's 100 most innovative list
  Six infrastructure projects in Delhi and Gujarat figure among the 100 most innovative infrastructure investments in the world. KPMG International’s Infrastructure 100: World Markets Report has selected six Indian projects. These are Delhi Metro, Yamuna Expressway and Interceptor Sewage System (the three are in Delhi), Gujarat International Finance Tec-City (GIFT), Mundra Ultra Mega Power Project and Narmada Canal Solar Project (the three are in Gujarat).
  
  A global panel of industry experts identified 100 of the world’s most innovative and impactful infrastructure projects, showing how governments are coming together with the private sector to overcome funding constraints to finance and build projects that can improve quality of life — both solving immediate needs and planning for future societal demands.
  
  The report looked at infrastructure based on the dynamics of four key markets: Mature international markets (such as Canada, Australia, and the UK), economic powerhouses (including the US and BRICS countries), smaller established markets (such as Chile, Sweden, New Zealand and South Korea) and emerging markets. The panel of independent industry experts evaluated over 400 diverse and compelling projects to ultimately select the 100, based on scale, feasibility, complexity, innovation and impact.
  
  With a total estimated value of $1.73 trillion, the 100 projects illustrate a range of infrastructure investment, some with a potentially transformative impact that could change the face of nations. The report also brings to light affordability concerns and the need for governments to make difficult choices about where to spend with funding in short supply.
  
• Tamil Nadu to hold global investors' summit in May 2015
  The Tamil Nadu government announced dates for its Global Investors’ Meet (GIM) scheduled in May next year. The TN government’s announcement came minutes after Saurabh Patel, finance, energy and petrochemicals minister, started addressing industrialists to invite them to the summit and invest in the state. The GIM will be held on May 23 and 24. Before March 2016, the state is targeting to attract Rs 1 lakh crore, said Tamil Nadu industry minister P Thangamani later in a meeting.
  
• Entrepreneurship programme lacking: FICCI
  There is a lack of entrepreneurship programmes in Indian higher education institutes, according to a report by the Federation of Indian Chambers of Commerce and Industry (Ficci) and Ernst & Young (EY), issued at the FICCI Higher Education Summit n New Delhi on 13th November.
  
  The report - Higher education in India: Moving towards global relevance and competitiveness - says only a few Indian higher education institutes have entrepreneurship courses and most of them have been introduced only recently. For instance, the Indian Institute of Technology (IIT), Delhi, recently introduced courses on entrepreneurship. Likewise, IIT Kharagpur is considering a micro specialization in engineering entrepreneurship for its B.Tech. students from next year.
  
  The report notes that venture-funding as well as governmental support for incubation centers is still at early stages in India. Most incubation centers have been set up only after 2,000 and many of these are as young as eight to 10 years.
  
  According to the report, low-impact research output and insufficient doctoral students are gaps in the system. This is shown in the number of research papers published in Indian institutes vis-à-vis the global peers. On the other hand, China and the US score significantly higher compared to India in this space.
  
  The report says most institutes lack research focus as well as the culture of research. It adds there is a limited focus on entrepreneurship on campuses as reflected in the fact that there are just a few institutes that offer programmes in entrepreneurship as well as have active incubation/entrepreneurship cells.
  
  While the number of patents filed by India has grown at a compounded annual growth rate of 12 per cent from 2008 to 2012, these numbers are small compared to those filed by the US and China. In 2012, India filed 18,173 patents compared to 561,377 by China and 488,744 by Japan. The US filed 268,782 patents in 2012.
  
  According to the report, low employability of graduates has always been a concern. The poor quality of graduates is the result of a combination of factors such as out-dated curricula, shortage of quality faculty, high student-teacher ratios, lack of institutional and industry linkages and lack of autonomy to introduce new and innovative courses.
  
  In 2014, as many as 120 colleges including 94 management institutes are expected to close down across the country because of their inability to fill the seats. In 2012, 32 engineering and management colleges stopped admitting students. Among the colleges that closed down are engineering colleges (five), MBA (nine), MCA (14), pharmacy (three) and PGDM (one).
  
  According to the report, globally-relevant and competitive would mean India is prominently placed on the global higher education map. India as a hub for talent and a culture of research, innovation and entrepreneurship. The report showed that 3.5 billion jobs are expected to be created by 2020 and China and India are likely to drive demand by 2020.
  
  Skill-intensive industries such as manufacturing and services are expected to contribute more than 90 per cent of India's GDP by 2030. Hence, the focus of employment is expected to shift towards services and manufacturing.
  
  On higher education, the report says India will produce a significant number of higher education graduates in the coming years. Data show that in 2020, an estimated 42.1 million higher education enrolments will be seen in India compared to 28.5 million in 2012.
  
  The FICCI-EY report has risen concerns about how only a few Indian higher education institutions are globally ranked. This is in spite of the fact that India has 33,723 higher education institutions compared to 4,140 in the US.
  
  The US has 97 institutes in the QS World University Rankings (Top 500) 2014/15. However, India only has six institutes in the list. Similarly, while the US has 102 institutes in Times Higher Education World University Rankings (Top 400) 2014, India has four.
  
  A large number of Indian students go abroad to study in foreign higher education institutions, but the incoming foreign students are limited in number. Compared with 190,055 Indian students studying in higher education institutions abroad in 2012, only 31,000 foreign students came to India in that year.
  
  The report in its vision has said that by 2030, 20-plus higher educational institutes should be there in the top 200 global rankings and India be among the top five in terms of research and patents, with 90 per cent graduates readily employable.
  
• Wholesale price inflation dipped
  Inflation based on the Wholesale Price Index (WPI) eased to a five-year low in October. Wholesale price inflation moderated to 1.77% in October from 2.38% in September. The decline for a fifth consecutive month was mainly on account of falling vegetable and fuel prices. Fuel prices have eased over the past few months on account of softer global oil prices, with the international crude oil price in the Indian basket falling below $80 per barrel. On 12th October, data released by the government had shown that while Consumer Price Index (CPI)-based inflation had eased further to 5.52% in October from 6.46% in September, factory output was showing signs of recovery, expanding 2.5% in October after anemic growth in the preceding two months.
  
• HDFC Bank’s proposal to hike foreign holding to 74% approved
  The FIPB on 14th November cleared the long- pending proposal of HDFC Bank to hike foreign holding in the bank to 74 percent. The FIPB is of the view that HDFC Bank' parent HDFC Ltd's 22 per cent holding in the bank is FDI and hence total foreign holding is 73.39 percent, which includes FII, FDI, ADR and GDR. Late last year, HDFC Bank had approached the FIPB for increasing the foreign holding in the bank to 67.55 percent from 49 percent.
  
  However, the proposal was not cleared by the FIPB as the Finance and Industry ministry was of the view that the parent HDFC Ltd's 22 percent holding in the bank is FDI. Taking into consideration the 22 percent parent holding as FDI, the total foreign holding was more than 67.55 percent when they approached the FIPB for the first time.
  
  Following clarification sought by FIPB earlier this year HDFC Bank sent a revised proposal raising its foreign holding ceiling request to 74 percent, from its earlier proposal of 67.55 percent.
  
• POSCO plans steel plant in Sanand
  South Korean steel giant Posco has narrowed down on Sanand (Gujarat) for setting up its steel coil unit at an investment of USD 20 million.
  
  Posco's Sanand unit will be their second still unit in India after Maharashtra's Pune. Posco's steel coil unit will come up in 30,000 square meter areas and will have the capacity of around 10,000 metric tons annually. The Posco plant is likely to produce steel coils for the automobiles, considering the grand presence of the sector
  
• SBI to launch ‘dynamic rating’ to curb bad loans
  To nip bad loans in the bud, State Bank of India (SBI) has ushered in “dynamic rating” so that events affecting a corporate or the segment in which it is operating in are taken into account. This will help it to adjust loan pricing and risk appetite accordingly. This is in sharp contrast to the bank’s internal rating model, whereby rating of a corporate is done once a year or if any loan proposal comes during the course of the year. SBI is also deploying pass book printers, which can be operated by the customers themselves. By the end of the year, 2500 of these printers will be deployed, said Bhattacharya.
  
• Bank A/C in every home in Kerala, Goa
  Giving a boost to the Centre's financial inclusion agenda, Kerala and Goa have become first states in the country with every household having at least one bank account. "Kerala was declared as 100 per cent saturated State (in terms of coverage of all households with at least one bank account) on November 11,' the finance ministry said in a statement.
  
  In addition, Goa, Chandigarh, Puducherry and Lakshadweep and three districts of Gujarat- Porbandar, Mehasana, Gandhi Nagar, have also covered all households under Pradhan Mantri Jan-Dhan Yojana (PMJDY) with at least one bank account. As on November 10, 7.24 crore accounts have been opened under PMJDY of which 4.29 crore in rural and 2.95 crore are in urban areas. RuPay Cards have been issued in case of 3.97 crore accounts.
  
  All about Pradhan mantri Jan Dhan Yojana:
  Pradhan Mantri Jan Dhan Yojana is a scheme for comprehensive financial inclusion launched by the Prime Minister of India, Narendra Modi on 28 August 2014 He had announced this scheme on his first Independence Day speech on 15 August 2014.
  
  Run by Department of Financial Services, Ministry of Finance, on the inauguration day, 1.5 Crore (15 million) bank accounts were opened under this scheme. By September 2014, 3.02 crore accounts were opened, with around Rs 1500 crore (US$240 million) were deposited under the scheme, which also has an option for opening new bank accounts with zero balance
  
  DBTL in all districts of Kerala:
  Kerala, where Aadhaar penetration is 92 per cent, will become the first state in the country to see the roll-out of modified Direct Benefit Transfer of LPG (DBTL) scheme in all its 14 districts. The scheme, which is being re-launched on 15th November in 54 districts covering 11 states in the first phase, will cover 23 million crore households, Murali Krishna, general manager, IOCL Kerala and state-level coordinator of Oil Marketing Companies. Currently, the Aadhaar generation level is 95 per cent in these districts.
  
• S&P downgrades rating for IOB
  Global rating agency Standard & Poor's (S&P) has cut long-term issuer rating for Indian Overseas Bank (IOB) from “BBB” to “BB+” on sharp deterioration in the asset quality. The outlook is stable. IOB’s reported non-performing loan ratio rose sharply to 7.3 per cent at the end of September 2014, from 5 per cent as of March 31, 2014. The share of gross standard restructured loans outstanding in IOB's loan book is also high at 7.85 per cent.
  
• US is now partner country for Vibrant Gujarat 2015
  The Gujarat government on 3rd November made it official that the United States will be one of the partner countries for the state government’s flagship investor meets the Vibrant Gujarat Summit to be held in January 2015. US will be the eighth country to partner the event. Other partner countries include UK, Netherlands, Canada, Australia, Singapore, South Africa and Japan.
  
  The Vibrant Gujarat 2013 had witnessed participation from nearly 121 countries with over 2,100 foreign delegates and around 58,000 Indian delegates. Japan and Canada were the Partner Countries for the summit and there were Partner Organizations like JETRO, Indo-Canada Chamber of Commerce (ICCC), US India Business Council (USIBC), UK India Business Council (UKIBC) & Australia India Business Council (AIBC). As many as 17,719 Investment Intentions and 2,670 Strategic Partnerships were signed in the areas of Technology transfer, R&D, Education, etc. during the summit.
  
• NCAER pegs down growth forecast to 5%
  In its mid-year review of the economy, the National Council of Applied Economic Research (NCAER) lowered its 2014-15 growth forecast for India to 5 per cent. In July, the think tank had forecast 5.7 per cent growth. The lower projection is despite the 5.7 per cent growth in the first quarter after two successive years of sub-5 per cent growth. The NCAER’s projection is in line with the RBI’s forecast.
  
• Rs 1,000 cr set aside for cyber shield
  The government has created a fat budget of Rs 1,000 crore to bolster the country's cyber perimeter. The department of electronics and information technology will soon go to the Cabinet seeking approval for three projects that will enhance the government's ability to fight cyber attacks.
  
  The most significant among the three projects is.. 
  • The creation of a National Cyber Coordination Centre (NCCC) at a cost of Rs 800 crore.
  • The other two projects will strengthen the government's email system and create a botnet clearing centre.
  The NCCC is meant to watch the traffic flowing through the country's Internet pipes, which will help in mitigating or warding off domestic or international attacks on its infrastructure.
  
  After the government announced two major projects on financial inclusion and digitization, the Pradhan Mantri Jan Dhan Yojana and Digital India, an unprecedented spike in online transactions is expected. As more people are exposed to technology when they avail government services online, conduct financial transactions through mobile phones, or simply surf the internet using Wi-Fi at colleges, the risks are also expected to go up manifold.
  
  The idea of the NCCC is to keep a check on malicious activities, especially in sensitive government organizations. Currently, most cyber attacks go unreported in the country. Moreover, any action is post facto. The NCCC will arm the government with advance alerts based on trends such as spikes in data, virus and botnets from a particular area.
  
• Panel to review statutory filing norms
  The Corporate Affairs Ministry has set up an Internal Committee to review e-forms as well as the overall filling process, as part of efforts to simplify procedures for stake holders under new companies’ law. The committee will suggest changes required for simplification and removal of difficulties faced by stakeholders in filling e-forms
  
• Funds infusion for unlicensed co-operative banks
  The Government has decided to revive 23 unlicensed district central co-operative banks in different states which were on the verge of closure. The decision was taken by the Union Cabinet.The total, 16 banks are in Uttar Pradesh, three each in Jammu and Kashmir and Maharshtra and one in West Bengal. Under the Scheme, the total capital infusion required for revival of these banks would be over Rs. 2375 crore rupees. Of the total money, the commitment from the Central Government would be around Rs. 673 crore rupees and over Rs. 1464 crore from State Governments while over Rs. 237 crore rupees from NABARD. 
  • Cabinet also approved an agreement with Nigeria, under which Indian sentenced to imprisonment in Nigeria can serve their punishment in India. Mr Prasad said, the country has already such agreement with 34 other nations.
  • Approval to raise the authorized share capital of the Indian Renewable Energy Development Agency Limited from Rs. 1000 crore rupees to 6000 crore has been sought which can help finance mega power projects.
  • Cabinet has also approved an amendments to the Merchant Shipping (Amendment) Bill 2013 for accession to the Anti Fouling Systems (AFS) Convention 2001 which aims to protect the environment and human health from adverse effects of anti-fouling systems used in ships.
    
• Telangana’s maiden budget
  The government of the new state of Telangana presented its maiden budget proposals on 5th November. It estimated an expenditure of a little over Rs 1 lakh-crore for the 10 months of the post-bifurcation period ending March 2015.
  
  The government has made a substantial increase in allocations to roads, public health and irrigation. And, made significant provision for new social sector programmes. These include a land purchase scheme for landless families belonging to Scheduled Castes and a farm loan waiver. Finance minister Etela Rajender presented the budget, with no new tax proposals. It showed an estimated revenue surplus of Rs. 301 crore, based on the additional resource mobilisation proposed.
  
  A notable feature is the rise in estimated Plan outlay, at Rs. 48,648 crore or 48 per cent of the total expenditure. This was previously seen in undivided Andhra when the then Congress government sought to raise public investments, especially in irrigation, during its first tenure between 2004 and 2009.
  
  The Telangana government estimates total receipts of Rs. 98,099 crore. Tax income, along with the share in central taxes, accounts for Rs. 45,128 crore or 46 per cent of the total receipts, continuing the trend of lower tax income in relation to total budgetary receipts. The state’s own tax receipts are estimated at Rs. 35,378 crore and a non-tax revenue of Rs. 13,242 crore.
  
  For the current year, the fiscal deficit was estimated at Rs. 17,398 crore or 4.79 per cent of Gross State Domestic Product (GSDP), much higher than the three per cent cap prescribed by the central law on this, the Fiscal responsibility and Budget Management Act.
  
  The Telangana government also expects more of grants from the Centre to back this ambitious budget. Central grants were Rs. 21,720 crore or 27 per cent of the total estimated expenditure during the current year, according to the budget proposals.
  
  The Telangana government said it would spend about Rs. 10,000 crore alone on improving the road network in two years, while proposing Rs. 4,000 crore in the current year. Finance Minister announced double-laning of roads connecting mandal headquarters with district headquarters. And, introduction of 1,000 new public transport buses this year.
  
  The allocation to health under the Plan was raised to Rs. 2,283 crore, with substantial upgradation to state-level and district hospitals. An allocation of Rs. 2,000 crore was made to revive small irrigation tanks. The allocation to irrigation was Rs. 6,500 crore. About Rs. 9,500 crore went to agriculture, Rs. 4,400 crore to transport and a total of Rs. 23,000 crore to social service sectors — health, education, water supply, urban development and other welfare programmes, under the annual Plan. Power got Rs. 1,637 crore under Plan schemes, beside Rs. 3,000 crore towards power subsidy.
  
  The minister announced that as an important step towards assuring industry of the government’s commitment, Rs. 638 crore was being proposed in the budget for clearing incentive dues to the former. While stating a cell would push for faster approvals of proposals, he said a land bank with 500,000 acres, suitable for industries, was being proposed.
  
• Ratnakar Bank gets global recognition
  RBL Bank - Ratnakar Bank Limited - has been recognized by the World Economic Forum as a “Global Growth Company” (GGC) 2014. Companies in the GGC community are among the most influential and successful within their industries. As of Jan 2014, over 370 companies from over 60 countries have been admitted to the GGC community.
  
• OECD cuts India growth forecast
  Revising its forecast downwards, Paris-based think tank OECD on 6th November projected 5.4 per cent growth for the Indian economy this year as global recovery continues at a moderate pace. Earlier in September, it had projected 5.7 per cent growth rate for India. OECD Secretary-General Angel Gurria said a number of business-friendly measures have been adopted over the past few months in India.
  
  India's economic growth accelerated to 5.7 per cent in April-June quarter, much better than 4.7 per cent in the same quarter of previous fiscal. Indian government expects growth in current fiscal to be between 5.4-5.9 per cent. The economy grew by sub-5 per cent in 2012-13 and 2013-14. It said that the global economy remains stuck in low gear, but is expected to accelerate gradually if countries implement growth-supportive policies. Widening differences across countries and regions are adding to the major risks on the horizon, it added.
  
  Global GDP growth is projected to reach a 3.3 per cent rate in 2014 before accelerating to 3.7 per cent in 2015 and 3.9 per cent in 2016, according to the Outlook. This pace is modest compared with the pre-crisis period and somewhat below the long-term average. It is also slightly lower than the last OECD forecast in September. Among the major advanced economies, it said that recovery remains robust in the US, which is projected to grow by 2.2 per cent in 2014 and around 3 per cent in 2015 and 2016.
  
• Skill development scheme approved
  The government has approved a skill development programme to ensure that the country's huge army of rural youths is "capable" of employment in different countries.Rural Development Minister Nitin Gadkari has approved the programme under the ambitious Deen Dayal Upadhaya Gramin Kaushal Yojna (DDUGKY) to make the rural youth employable through certification courses with benchmark of international standards
  
  A Rural Youth Internship Programme which will give the participants an opportunity to earn while learning has been included in the approved programme. The unique feature of this programme is that 75 per cent of youths trained under Deen Dayal Upadhaya Gramin Kaushal Yojna would be offered placement
  
  The government has also simplified the process of getting into the programme. According to the officials, globally there is a shortfall of nearly 53 million skilled personnel like nurses, plumbers and electricians, and India has surplus of nearly 47 million persons with potential skill to match the global demand. Primacy for skill training programme for the rural youth under DDUGKY will be given to private partners who can train and support overseas placement, captive placement as well as educational institutions of repute.
  
  Priority will be given to employers like Cafe Coffee Day who can guarantee training and placement of a minimum of 10,000 rural youths in two years, the officials said, adding rural youths of minimum 15 years of age will be eligible for the skill training programme.
  
• Less than half of HSBC account empty: IT Dept.
  The Special Investigation Team (SIT) on black money has found that less than half of the HSBC bank list of over 600 accounts did not have any money while more than hundred names were a repeat, hampering the possibility of any action against them.The Income Tax department is now mulling prosecution against 300 entities figuring in the list of 628 entries in the HSBC Geneva list given to the Supreme Court recently. The SIT found and reported that there was no amount shown in almost 289 HSBC Geneva entries, while 122 of them were repeated twice in the same list.
  
  The report of the SIT, headed by retired Supreme Court Judge M B Shah with Justice (Retd.) Arijit Pasayat as its Vice-Chairman, said the I-T department had undertaken 150 search or survey operations against those named in the list but prosecution proceedings were yet not final against them.
  
  In the report submitted to the government early this year, the SIT has cited the areas of concern for the investigating and enforcement agencies which are tasked to keep a check on these 'black' funds and illegal economy.
  
  The government also told the SIT, sources said, that it has completed renegotiations in approximately 31 cases, has sought the approval of the Cabinet for the same in about 30 cases while India wants to have new DTAAs, which will include banking related clauses, with over 50 countries. In the same report, the SIT also noted an "innovative" method undertaken by the CBDT against these people by allowing them to seek details from Swiss banks themselves in lieu of which they will be allowed waiver in imposition of strict punishment under tax laws.
  
• India Ratings lowers growth forecast to 5.6%
  Domestic ratings agency India Ratings on 7th November marginally revised down its economic growth estimate for 2014-15 to 5.6 per cent, citing poor industrial performance, and warned the government will slip on the fiscal deficit front. The agency pegged the final fiscal deficit print at 4.2 per cent, against the Budget promise of 4.1 per cent. In the first six months of the financial year, fiscal deficit touched 83 per cent of the target.
  
  The agency, backed by Fitch, revised down the gross domestic production (GDP) growth forecast to 5.6 per cent from the earlier 5.7 per cent in August. The agency maintained the agricultural growth projection at 1.3 per cent, which experts say will be limited by the weak monsoon. However, it revised up the growth projection for the services sector, which contributes over 65 per cent to GDP, by 10 bps to 7.1 per cent.
  
  The country has had two consecutive years of sub-5 per cent growth, which jumped to 5.7 per cent in the first quarter of the financial year. However, due to a continued slump in the monthly industrial output data, analysts expect the upcoming September quarter growth at 5 per cent levels. The government is expecting the growth to come in 5.5-6 per cent range, while the RBI's median estimate stands at 5.5 per cent.
  
  On the fiscal deficit, India Ratings said even though factors like declining oil subsidy on a fall in global crude oil prices are giving us succour, a slow growth in the tax revenues would likely result in the government over-shooting its 4.1 per cent target and we will close FY15 with a 4.2 per cent gap. The agency said the recent move to deregulate diesel, which was caused largely by the decline in international crude prices, will help save Rs. 15,000 crore in oil subsidy in FY15.
  
  The agency said there is a low probability of RBI Governor Raghuram Rajan cutting the interest rates at the policy review on December 2, but will do so in February next. It said the average consumer price inflation for the entire fiscal will come in at 7.8 per cent, as against the 9.5 per cent in the year-ago period.
  
• TRAI asked to review spectrum proposals
  Telecom Commission has asked TRAI to review its recommendations related to the next round of spectrum auction.This follows objections raised by a technical committee of the Department of Telecom. The auctions could get delayed if the TRAI takes time to come out with its review.
  
  An internal committee of the Department of Telecom had rejected the telecom regulator's recommendation to conduct the next round of auction only when there is enough spectrum.
  
  The committee has said that there is no visibility of when additional spectrum will be vacated by the Defense and, hence, there is no point in stalling the sale of what is already available.
  
  The telecom operators, backed by TRAI, had argued that the auction should not be held till the Government is able to find enough spectrum to ensure continuity of service for existing players.
  
  To make fresh spectrum available for mobile services, the Telecom Regulatory Authority of India had suggested that the Government should ask Defense forces to vacate spectrum in the 2,100 MHz band. In addition, it had proposed that BSNL should be asked to surrender 1.2 MHz spectrum in the 900 MHz band.
  
  However, the DoT panel has rejected these proposals on grounds that while the defence will take time to vacate spectrum, asking BSNL to surrender airwaves may have legal implications.
  
  The committee said that the proposed auction scheduled for early next year should not be linked to the availability of fresh bands.
  
• World Bank aid for UP projects
  The World Bank on 7th November offered to fund improvement of industrial infrastructure and creation of new infrastructure for micro, small & medium enterprises (MSME) in Uttar Pradesh. A three-member team comprising World Bank Lead Urban Specialist Barjor Mehta and Senior Country Economist Denis Medvedev met UP industries and infrastructure development principal secretary Sanjiv Saran. They discussed a report on infrastructure and investment strategy for three sub-regional growth centres on the Eastern Dedicated Freight Corridor (EDFC).
  
  The report has been prepared by CRISIL under the aegis of the WB for Agra-Firozabad, Kanpur-Lucknow-Unnao-Auraiya and Allahabad-Varanasi sub-regions. WB is focusing on Kanpur-Lucknow-Unnao-Auraiya sub-region. The report contains study of infrastructural gaps to be filled in these sub-regions with high industrial and economic potential for effective and sustainable industrialisation.
  
  Development policy loans provide quick-disbursal to countries with external financing needs to support structural reforms. The funds are released based on agreed actions taken by the government with regard to structural, financial sector and social policy reforms. Programme-for-Results supports government programmes and links disbursement directly to the delivery of defined results with a focus on strengthening institutions.
  
  Funds can only be used for environment conservation, rehabilitation or training of labour and not for hardware development. WB has already sanctioned a loan of $1.1 billion for the construction of a 393-km double line between the Mughalsarai–Bhaupur section under EDFC. The proposed alignment of 1,840-km long EDFC starting from Punjab traverses UP via Khurja and ends at Dankuni in West Bengal.
  
  Uttar Pradesh is the biggest beneficiary of EDFC project with the share of nearly 57 per cent, measuring 1,049 km. In UP, 40 new stations are proposed on this freight corridor, which would cross through 18 districts.