ECONOMY AFFAIRS NOVEMBER 2015

ECONOMY AFFAIRS NOVEMBER 2015

• Government advances roll out of BS-V and BS-VI norms for 4-wheelers
  The government on 28th November said it has advanced the date for implementation of the roll out of Bharat Stage (BS) stage V and VI norms for four-wheelers by three years. According to the roadmap earlier laid down by the Auto Fuel Policy, BS-V norms were to be implemented from April 1, 2022 and BS-VI from April 1, 2024, it added.
  
  Accordingly, the ministry has decided to implement BS-V norms from April 1, 2019.
  
  BS-VI norms, which aim at substantial reduction in NOx/4C levels will be implemented from April 1, 2021, it added. This reflects a firm commitment to play a major role in reducing vehicular emissions.
  
  Draft norms for two- and three-wheeler categories will be notified shortly with advanced timeline similar to the four wheeler category, it added.
  
• India 5th on doing biz in clean energy
  Considering India's notable policy reforms in the renewable energy sector, Bloomberg New Energy Finance has ranked the country at fifth place on a list of 30 countries on ease of doing business in the renewable energy space. The ranking done by Bloomberg New Energy Finance's annual Climatescope report indicates that clean energy's centre of gravity is shifting from developed to developing countries. The report ranked China in the first place, followed by Chile, Brazil, South Africa and India.
  
  As solar energy became more cost-competitive in emerging markets in 2014, there would be a surge of investment and capacity-building in the Asian countries, especially China and India, the report noted. Last year, India added 5 gigawatt (Gw) of clean energy generation capacity
  • Among the states, Tamil Nadu led the pack with the highest wind energy capacity, followed by Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Gujarat.
  • Madhya Pradesh scored the highest among Indian states on growth rate of clean energy investments. The state's favourable land policy and easy clearances have resulted in attracting projects.
  • Gujarat, which was once a haven of clean energy investments, slipped from the top slot due to policy uncertainty and litigation over tariff.
  • Maharashtra's high feed-in tariff led to a surge in wind capacity.
  • Renewable energy in Rajasthan at 4 Gw represents a high share (32 per cent) of total power capacity of 13 Gw, compared to other states.
  • At 7.4 Gw, Tamil Nadu has more wind installed than any other state. Since 2012, however, annual new-build rates have fallen and in 2014, only 208 megawatt was commissioned.
  • This is largely due to the poor financial health of state-owned distribution utility companies and occasional payment delays to power project owners.
  • The Indian government's goal of providing round-the-clock power to 1.25 billion citizens has triggered huge interest from investors. The report noted that a strong energy minister overseeing coal, power, and new and renewable energy sectors could have a positive influence.
  • The Modi-led government has revised the targets for renewable energy to 175 Gw by 2022.
  
  
• Rs 3,250 crore package to decongest Delhi
  In a major move to decongest the city, urban development minister Venkaiah Naidu on 22nd November announced a Rs 3,250 crore package for the capital, to be used for construction of flyovers, underpasses and rail overbridges to free up arterial roads. From the fund, the Delhi government will get Rs 1,500 crore, DDA Rs 1,665 crore and the North Corporation Rs 85 crore.
  
  While DDA has been given the money for projects in Dwarka, Narela, Mundka and Holambi, the Delhi government has been asked to prioritize projects in consultation with Delhi Police, municipal bodies and PWD. The North Corporation will use its share to complete the Rani Jhansi flyover, hanging fire since 2008.
  
  The projects to be undertaken by DDA include construction of a rail underbridge at Holambi; a rail overbridge at Mundka on Urban Extension Road II; a rail bridge at Narela; a tunnel near Bhagya Vihar and Meer Vihar and construction of the Dwarka Expressway from Urban Extension Road II to Northern Peripheral Road. The 3.5km stretch is expected to give relief to residents of Dwarka and Gurgaon by decongesting NH8 and cutting travel time.
  
  The cash-strapped North Corporation, which has not initiated any new project in a long time, will be given Rs 85 crore for completion of the Rani Jhansi grade separator. The foundation for the flyover, from St Stephens Hospital to Filmistan, was laid in 2008 and the project has been held up at various stages since due to fund crunch and land acquisition issues. Completion of the flyover is expected to reduce travel time from the present one hour to just 10 minutes.
  
• All States but T.N. to roll out Food Security Act by April
  Barring Tamil Nadu, all States are on board for implementing the National Food Security Act by April next, according to Union Food Minister Ram Vilas Paswan
  
  So far, 22 States and Union Territories have rolled out the Act which covers up to 67 per cent of the population (75 per cent rural and 50 per cent urban) and gives with 5 kilogram of subsidised rice or wheat or coarse cereals per identified beneficiary.
  
  It is mandatory for the States and Union Territories to adopt digital identification of the beneficiaries, arrange for doorstep delivery of foodgrains and constitute grievance redressal cells before they roll out the scheme.
  
  Representatives of 11 States said they would be ready with the digitisation and identification of beneficiaries by March next year.
  
  The Tamil Nadu representative, however, said the Public Distribution System was universal in the State and as such it was difficult to identify beneficiaries. To switch to a targeted system would involve a policy decision.
  
  The NDA government had given three extensions till September this year for States to roll out the scheme. Now it has said that States that are not ready by March will get additional allocation of foodgrains under TPDS at the minimum support price.
  
  Of the 14 States that have not implemented the Food Security Law, Andhra Pradesh and Sikkim will be ready by December. Uttar Pradesh, Meghalaya, Jammu & Kashmir and Andaman & Nicobar will roll it out in January 2016. Other States, including Gujarat, Kerala, Arunachal Pradesh, Manipur, Mizoram, Nagaland, will implement it by March next year.
  
  On the issue of the Direct Benefit Transfer scheme, the Minister said it was not compulsory. The government was implementing it on a pilot basis in Puducherry and Chandigarh.
  
• Get rid of NPAs: Finance Minister
  Indian Finance Minister Arun Jaitley said, the government has proactively taken measures to remove problems in stressed sectors and expressed the hope that the bad loans situation in the banking sector will improve for the better. According to him: 
  • There is an unacceptable level of bad loans at Indian banks and part of stress on banks is due to certain sectors.
  • Banks should get rid of the past scars of Non Preforming assets, NPAs and clean up their balance sheet at the earliest.
  • A series of steps that have been announced by RBI in this direction will certainly improve on the quality of those assets.
  • The gross NPAs of PSBs rose to 6.03 per cent at the end of June 2015, as against 5.20 per cent in March 2015.
  • On the issue of wilfull defaulters, the banks have full authority to deal with each of its dectors in prudent manner.
  • Bankruptcy law gets passed the ability of banks to get failed creditor to exit will increase.
  
  
• MRF to set up Rs. 900-cr facility in Telangana
   MRF is planning to set up a Rs. 900-crore facility in Medak district of Telangana soon. The tyre major has received the formal approval from the State Government to set up the manufacturing facility. The permissions were given as part of the State’s new Industrial Policy TS-iPASS (Telangana State Industrial Project Approval and Self Certification System). The policy promises quick and easy permissions from the industry, using a single-window mechanism. As many as 16 proposals from various industrial houses have been approved in the fourth batch that promises a total investment of Rs. 1,570 crore. They would provide about 1,800 jobs. Prominent among the proposals include GMR group’s 5 MW solar power plant. The infrastructure firm would spend Rs. 27 crore on the project.
  Other projects
  SEI Sriram Power proposes to set up a 10-MW solar power plant with an investment of Rs. 55 crore, while Preca Solutions would establish a facility to produce pre-stressed concrete material by investing Rs 33 crore.
  
• DIPP notifies easing of FDI policy in several sectors
  The Department of Industrial Policy and Promotion, DIPP on 24th November notified the recent liberalisation of FDI policy in several sectors including defence, retail and construction development sector. DIPP has also defined the term "manufacturing" for the purpose of attracting foreign direct investment.
  
  In a recent decision, the government permitted a manufacturer to sell products made in India through wholesale, retail including through e-commerce platforms without government approval.
  
  DIPP has defined the term "control" for the purpose of FDI in Limited Liability Partnerships. ‘Control’ shall include the right to appoint a majority of the directors or to control the management or policy decisions.
  
  The government had on 10th of this month opened up 15 sectors including real estate, defence, civil aviation and news broadcasting in a bid to push up reforms.
  
• Railways inks pact with SAIL-RITES to procure steel wagons
  The Railways has signed an assured offtake agreement with SAIL-RITES Bengal Wagon Industry Pvt Ltd to procure 1,200 new stainless steel wagons and rehabilitate 300 wagons every year. SAIL-RITES Bengal Wagon Industry Pvt Ltd is a 50:50 joint venture between Steel Authority of India and engineering consultancy RITES and has a factory in Kulti in West Bengal, set up at a cost of Rs.120 crore. The factory is expected to generate employment for about 400-500 people. According to the agreement, the Railways will procure Rs. 2,500-crore worth of wagons spread over 10 years.
  
• Govt inks 11 pacts to sort transfer-pricing issues
  The government has concluded 11 agreements to tax multi-national companies via the transfer-pricing mode. Of these, one advance pricing agreement (APA) has a 'rollback provision', which means those relating to previous years. The government has signed 22 APAs so far in the current financial year and 30 more are expected to be inked in FY16, providing a climate of certainty and non-adversarial tax regime to foreign companies.
  
  The APAs were signed with companies in sectors ranging from investment advisory, contract research & development, and shipping services.
  
  The conclusion of APAs will facilitate the clearance of the large backlog of around 550 applications with the authorities, and ensure the lowering of tax litigations in the country.
  
  Agreements signed were unilateral APAs, involving only the taxpayer and the tax authority. Another 10-15 agreements are expected to be signed by December.
  
  The concluded APAs included companies based out of France, the US and the UK, among others. According to sources, most of them are service providers. The APA relating to shipping support services has been finalised at margins of 17-18 per cent and the investment advisory ones at margins close to 21 per cent.
  
  An APA is essentially an ahead-of-time agreement between a taxpayer and a taxing authority on an appropriate transfer-pricing methodology for some set of transactions over a fixed period of time.
  
  Aimed to reduce transfer-pricing litigations in the country, finance minister Arun Jaitley had announced the roll-back provision in the first Budget of the Bharatiya Janata Party-led government in July last year, where the agreement entered into for future transactions might also be applied to international transactions of the previous four years.
  
  The first rollback APA was signed in August between a US multinational and the tax department.
  
  Up to September 2015, around 575 APA applications have been filed with the APA authorities. These APAs are in diverse sectors such as telecom; oil exploration; pharma; finance; banking; software development & business process outsourcing, covering international transactions such as interest payments and corporate guarantees; non-binding investment advisory services, contract manufacturing, trading; and information technology (IT) & IT-enabled services (ITeS). Approximately, 40 per cent of APA applications are from the IT & ITeS sector.
  
  India signs unilateral APAs with multinationals that belong to countries with which it doesn't have tax treaties. Bilateral APAs involve the taxpayer, its local subsidiary, the Indian tax authority and that of the country the company is headquartered in.
  
• Pfizer, IIT Delhi set up incubation centre for healthcare innovations
  Pharma major Pfizer and IIT-Delhi on 24th November launched an incubation accelerator initiative co-created by Pfizer and the Foundation for Innovation and Technology Transfer (FITT). The programme will be open to Indian individuals and startup companies.
  
  The accelerator will address two components. For innovators seeking comprehensive support to translate their healthcare ideas into patents, the programme will provide two years of residential incubation at IIT Delhi, funding of up to Rs 50 lakhs for each innovator, mentoring support from IIT Delhi's faculty, access to infrastructure and prototyping laboratories, IP search and filing services, guidance from Pfizer's experts, venture capitalists and other industry linkages.
  
  For innovators who have a ready proof of concept and are seeking to obtain a patent, the programme will provide access to IP attorneys and services and cover the patent fee.
  
  Pfizer's funding through this programme will be unencumbered. All rights on the innovations will be owned by the innovators and they will be free to commercialize their patents as they desire.
  
  The programme will invite two rounds of proposals during the year 2015-2016. Call for proposals for the first round will open from November 27, 2015 until January 15, 2016.
  
• Three entities get RBI nod to set up trade receivables discounting system
  Three entities — Axis Bank, Gurgaon-based Mynd Solutions and a joint bid by NSE Strategic Investment Corporation and Small Industries Development Bank of India — have been granted in-principle approval for setting up the Trade Receivables Discounting System (TReDS).
  
  While seven entities had applied for it, four, including Trade Receivables Exchange and NSDL Database Management, did not make the cut.
  
  First announced in the Union Budget this year, the use of TReDS is aimed at improving the flow of funds to micro, small and medium enterprises (MSMEs) by reducing the receivables realisation cycles.
  
  TReDS will allow SMEs to post their receivables on the system and get them financed.
  
  This will not only give them greater access to finance but also impose greater discipline on corporates to pay their dues on time.
  
  The “in-principle” approval granted will be valid for six months, during which time the applicants will have to comply with the requirements under the guidelines and fulfil other RBI conditions.
  
  On being satisfied that the applicants have complied with the requisite conditions laid down by it as part of “in-principle” approval, the Reserve Bank would consider granting to them a Certificate of Authorisation for commencement of the business of TReDS,” the RBI said in a notification.
  
• Bill payments nod for NPCI
  The RBI has also decided to grant ‘in principle’ approval to the National Payments Corporation of India (NPCI) to function as the Bharat Bill Payment Central Unit (BBPCU).
  
  The Bharat Bill Payment System (BBPS), an integrated bill payment system, will function as a tiered structure for operating the bill payment system in the country with a single brand image, providing convenience of ‘anytime, anywhere’ bill payment to customers.
  
  It includes utility payments, such as electricity, water, gas, telephone and direct-to-home (DTH) service.
  
  Based on the experience, this would be extended to include other types of repetitive payments, such as school/university fees, and municipal taxes, among others, the RBI said.
  
  For collection of bills, the RBI had also invited applications from non-banks/banks for which the last date of receipt has been extended to December 18 from November 20.
  
  So far, the RBI has received 12 applications from non-bank entities and 18 requests from banks to operate as Bharat Bill Payment Operating Units.
  
• Govt approves investment of Rs 3000 cr for boosting urban infrastructure in 102 cities
  Government on 26th November approved an investment of over 3000 crore rupees for boosting urban infrastructure in 102 cities across five states, including enhancing water supply, sewerage network and availability of public spaces.
  
  The Urban Development ministry approved the investment under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT). It said, an inter-ministerial Apex Committee chaired by Urban Development Secretary Madhusudhan Prasad approved state-level Annual Action Plans for 2015-16 for five states.
  
  The annual action plan for Haryana, which has 18 AMRUT cities was approved with an investment of 438 crore rupees while 573 crore rupees was approved for Chattisgarh. Besides, 416 crore rupees for Telangana, 588 crore rupees for Kerala and 1,105 crore rupees for West Bengal, have also been approved.
  
• RBI allows foreign investors to buy defaulted bonds
  The Reserve Bank on 26th November allowed foreign investors to buy bonds that are either fully or partially under default in repayment and raised the maturity period of such NCDs/bonds to three years and more. As per the earlier rules, investments by Foreign Portfolio Investors (FPI) in NCDs/bonds were required to be made in securities with a minimum residual maturity of three years.
  
  On a review, it has been decided to permit FPI to acquire NCDs/bonds, which are under default, either fully or partly, in the repayment of principal on maturity or principal installment in the case of amortising bond, RBI said in a notification. The revised maturity period of such NCDs/bonds, restructured based on negotiations with the issuing Indian company, should be three years or more, it added. The proposed move is expected to provide relief into the country's distressed debt market.
  
• RBI relaxes expat rules for foreign banks
  The Reserve Bank of India (RBI) has allowed foreign banks to deploy up to four expatriates for each branch opened in India and up to six expatriates for their head office functions. The banking regulator said it decided to review its position after some foreign banks requested it to remove the numerical restriction on engagement of expats
  
  These banks had expressed concerns about the numerical restrictions in view of the operational difficulties faced by them in doing business in India.
  
  This move is expected to benefit and help foreign banks get global expertise for their Indian operations as well. However, the regulator clarified that the other instructions with regard to the posting of trainee officers and remittance facilities by the expatriate officers in Indian branches remain unchanged.
  
• Govt announces indirect tax sops for shipbuilding industry
  The Government has decided to provide further indirect tax incentives for domestic shipbuilding industry. According to the notification issued by the Ministry of Finance, the exemption has been provided from customs and central excise duties on all raw material and parts for use in manufacture of ships, vessels, tugs and pusher crafts. At presently, certain specified ships and vessels are exempt from basic customs duty and Central Excise duty.
  
• India needs over Rs 9 lakh cr investment for energy demand by 2040: IEA
  International Energy Agency has said that India needs more than Rs 9 lakh crore in energy investment per year by 2040 as it is set to contribute more than any other country to the rise in global energy demand.
  
  Of this, around seven lakh crore rupees are required every year in energy supply, 75 per cent of which is required to meet India's burgeoning need for electricity, and a further two lakh crore rupees per year to improve energy efficiency, Executive Director of International Energy Agency, IEA, Fatih Birol said while releasing India Energy Outlook 2015 in New Delhi.
  
• Solar power to illuminate 140 Naxal-hit villages in Chhattisgarh
  In Chhattisgarh, as many as 140 villages in remote and Maoist affected area will soon be illuminated with solar power. These villages will be electrified with solar energy under the Remote Village Electrification Programme.
  
  These villages fall under the Maoist-hit Sukma, Bijapur, Narayanpur, Sarguja and Dantewada districts. The villages, mostly located in the dense forests of Bastar division and some in Sarguja division.
  
  The project to electrified these villages is being executed by the Chhattisgarh State Renewable Energy Development Agency.
  
  CREDA has provided power in around 1,700 villages across the state since 2003, where there is no reach of conventional source of electricity. To fix technical problems, the agency also employs a technician who serves a cluster of 10 to 15 villages.
  
• CBDT inks 11 more unilateral advance pricing agreements
  The Central Board of Direct Taxes (CBDT) has entered into 11 more unilateral advance pricing agreements (APAs). The APAs were signed with Indian subsidiaries of foreign companies operating in various segments of the economy such as investment advisory services, engineering design services, marine products, contract research and development, software development services, IT-enabled services and cargo handling support services.
  
  With this round of signing, CBDT has so far entered into 31 APAs (30 unilateral and one bilateral). An APA is an agreement between a taxpayer and the tax authority concerning the transfer pricing method and the rate applicable to the taxpayers’ inter-company transactions, and normally covers multiple years. While seven of these APAs have rollback provisions contained in them, the other four agreements are for future five years
  
  APAs with rollback provisions can cover a maximum period of nine years in total. India had introduced the APA programme in 2012. As many as five APAs were concluded in the first year and four APAs got signed in the second year.
  
  The pace of negotiations has picked up in the current year. This year has already witnessed the conclusion of 22 APAs.
  
  The CBDT aims to finalise another 30 to 40 APAs before the end of this fiscal to provide stability and confidence to foreign enterprises operating in India.
  
• India to launch $1-b equity fund for renewable energy
  India proposes to launch a $1-billion equity fund, with seed capital from public sector units, to support renewable energy companies. Addressing a ‘Talkathon’ ahead of the 2015 Paris Climate Conference or COP-21, Piyush Goyal Minister of State (Independent Charge) Power, Coal and New & Renewable Energy, said, the Paris talks will help developed countries provide long-tenor low-cost funding, we are also preparing ourselves to see how we can finance our renewable energy thrust.
  
• Telangana to have 3 new aerospace parks
  Telangana's aerospace sector will get a fillip with the State government gearing up to create three more aerospace parks around Hyderabad (near outer ring road) in the next four years and come out with an aerospace and defence policy shortly.
  
  Suitable land for the proposed new parks is being scouted. Each of the park will have at least 200 acres. The State, which boasts of the country’s first Aerospace and Precision Engineering SEZ at Adibatla in Ranga Reddy District, has already attracted Rs 1,000 crore in the last one year and hopes to garner additional Rs 2,500 crore by 2019 when the new parks will be operational, Arvind Kumar, secretary, Industries & Commerce, Telangana government
  
  He said with a strong presence of around 450 MSME and large enterprises, there will be demand for space for manufacturing, research and development, logistics, training etc. To encourage new companies to enter into the State and existing companies to bring in fresh investment, the State is providing power subsidies, electrical duty exemptions, land cost concessions, subsidy on capital investment.
  
  As the State is poised to become a major aerospace hub in next two years, the land and manpower requirements could be met.
  
• HSBC closes private banking business in India
  HSBC is closing its private banking business in India which caters to those with a net worth of over $1 million (Rs 6.7 crore). These customers will now be offered services under HSBC Premier, a retail banking and wealth management product for the mass affluent with assets of over Rs 25 lakh. HSBC is planning to complete the migration in the first quarter of 2016.
  
• IMF pitches for greater investment in infrastructure for larger women labour force
  International Monetary Fund, IMF has pitched for greater investment in infrastructure and enhanced social spending in India to bring in larger number of women in labour force. As per a recent IMF study, India's GDP can expand by 27 per cent if the number of women workers increases to the same level as that of men. According to Kalpana Kochhar, Deputy Director of IMF's Asia and Pacific Department, the GDP gain that would materialise if the labour force participation gap between men and women is closed.
  She also said this gender gap in labour force participation is much larger in India than in most other countries. Mrs Kalpana also said this gender gap is around 50 per cent in India, compared with an average gap of 12 per cent in OECD countries.
  
  She added that since the gap is much larger in India, the economic gain from closing it is much larger compared with other countries.
  
• Revenue-share mode for energy exploration
  The government on 16th November proposed to introduce a revenue-sharing model with operators for exploration and development of oil and gas blocks, replacing the current profit-sharing mechanism, earlier criticised by the Comptroller and Auditor General.
  The plan, which aims to set new rules for auctioning exploration blocks, includes pricing and marketing freedom for natural gas produced from blocks awarded under the new regime.
  
  A consultation paper put out by the ministry also proposed a uniform licensing policy that will allow operators to explore all forms of oil and gas resources, including coal-bed methane, shale gas and oil, tight gas and gas hydrates.
  
  The ministry has suggested an open acreage licensing that will allow companies to bid for exploration blocks of their choice. Under open acreage licensing, which will replace the existing New Exploration Licensing Policy, the upstream regulator will apply its own geological data to authenticate the expressions of interest submitted by companies for an area and carve out blocks. This will be followed by invitation of bids from all interested parties.
  
• World Bank, AP ink $75-m credit deal for rural project
  The Centre, Andhra Pradesh and the World Bank have inked a $75 million (?500 crore) credit deal for the Andhra Pradesh Rural Inclusive Growth Project. The project seeks to enhance agricultural incomes of small and marginal farmers and ensure increased access to services related to health, nutrition, sanitation and social entitlements. It will focus on increasing economic opportunities for small and marginal farmers, especially from Scheduled Caste (SC) and Scheduled Tribe (ST) households in the 150 most backward mandals.
  
  In addition, it will invest in developing a network of social enterprises for food, nutrition, sanitation and other social enterprises which operate at community and district level.
  The Project will help link small and marginal farmers to urban markets and make them competitive across the value chain. Investments will be made for increasing the nutritional content of products such as milk, vegetables and poultry.
  
• Rs 242 cr AMRUT plan to address water logging in 25 cities
  Taking steps to tackle the problem of water logging, Kerala, Madhya Pradesh, Gujarat, Odisha and Mizoram propose to invest Rs 242 crore in construction of storm water drains for discharging flood waters in 25 cities in these states
  The works would be undertaken under Atal Mission for Rejuvenation and Urban Transformation (AMRUT) action plans for 2015-16, according to an Urban Development Ministry statement. The five states account for 82 Atal Mission cities.Other mission cities would be covered in subsequent years. Kerala government, in the state annual action plan (SAAP) for 2015-16 under AMRUT submitted to the Urban Development Ministry has proposed to spend Rs 105 cr (18 per cent of the total outlay of Rs 588 cr) on storm water drains in all the nine mission cities.
  
  About Rs 24 cr will be spent in this regard in Kochi, Thiruvananthapuram will get Rs 18 cr, Thrissur: Rs 15 cr, Guruvayoor: Rs 13 cr, Kannur: Rs 11 cr, Palakkad: Rs 9 cr, Kozhikkode: Rs 7 cr, Allapphuaza: Rs 6 cr and Kollam: Rs 2 cr.
  
  Under the SAAP of Madhya Pradesh for 2015-16 approved by the UD Ministry, construction of storm water drains will begin in 12 cities at a cost of Rs 36 cr.
  In Mizoram, Rs 47 cr (64 per cent of total approved SAAP outlay of Rs 73 cr for 2015-16) will be spent on construction of storm water drains.
  
  Under Atal Mission, construction of storm water drains has been prioritised after provision of basic infrastructure relating to water supply and sewerage connections.
  Central assistance to the extent of 50 per cent of project costs will be extended to cities with a population of below one million each and one-third of project cost if the population is above ten lakhs. Many metro cities including Delhi, Mumbai and now Chennai have been faced with the problem ofwater logging following heavy rains.
  
• AMRIT to sell drugs at cheaper prices
  Government has launched India's first retail facility at AIIMS to provide drugs for cancer and cardiovascular diseases at highly discounted rates. The pharmacy named AMRIT -- Affordable Medicines and Reliable Implants for Treatment -- will have 202 drugs of cancer and cardiovascular diseases where the price is going to be reduced on an average by 60 to 90 per cent.
  
  With the aim to reduce the expenditure incurred by patients on treatment of cancer and heart diseases, the Union Minister for Health & Family Welfare, J P Nadda inaugurated the Affordable Medicines and Reliable Implants for Treatment (AMRIT) outlet at AIIMs on 16th November.
  
  To begin with, the retail outlet will sell drugs for the two ailments at highly discounted rates at the All India Institute of Medical Sciences.
  
  Health Minister said AMRIT will be launched in all Central Govt hospitals soon and lakhs of patients will benefit from this initiative.
  
  The AMRIT pharmacy would be selling 202 cancer and 186 cardio-vascular drugs, and 148 types of cardiac implants at very affordable prices. Patients can buy medicines and implants at 50 to 60 percent cheaper prices than the open market from AMRIT outlet in AIIMS.
  
  The project has been floated in a tie-up with government-owned HLL Lifecare Ltd (HLL) which is deputed to establish and run the AMRIT chain of pharmacies across the country.
  
  The government’s move comes amid statistics that peg Indians diagnosed with cancer at 700,000 every year. About 2.8 million people have cancer at any point of time and half a million die of the disease each year. The annual figure of women being diagnosed with breast cancer in India is 145,000, according to the World Health Organisation.
  
  Nearly over 50 percent of patients stop visiting hospitals after two or three cycles of chemotherapy due to unaffordable costs. Keeping this in mind Amrit will sell drugs at highly discounted prices.For example one can purchase 'Docetaxel 120mg' used for chemotherapy cycle at Rs.888.75 for one cycle, when the MRP of the injection is Rs.13,440. Similarly, Caboplatin 450 mg would be sold at Rs.1, 316.25 while its MRP is Rs. 2,561.57.
  
  Every year 700,000 patients get diagnosed. About 2.8 million people have cancer at any point of time. Half a million die of the disease each year. Annual figure of women being diagnosed with breast cancer is 145,000. 50 percent of patients stop visiting hospitals after two or three cycles of chemotherapy due to unaffordable costs.
  
• Rs. 800-crore Food Park to come up in Telangana
  A mega food park with an initial investment of Rs. 110 crore is set to come up in Lakkampally village in Nizamabad district of Telangana. The total investment is expected to be Rs. 800 crore. The complex will also consist of a smart agro park. It is likely to benefit about 40,000 farmers
  
  The Union Minister for Food Processing Industries, Harsimrat Kaur Badal, laid the foundation stone on 16th November. The Minister said the project has to be completed within 24months.
  
  There will be ancillary units in nearby Medchal, Medak and Nalgonda. In the first stage, 78 acres of land will be developed with 30 units. It is expected to give a boost to agro-processing.
  
  The Ministry of Food Processing Industries is implementing the mega food park scheme to give a major boost to the food processing sector and to facilitate creation of modern infrastructure for food processing.
  
• AP keeps in abeyance order permitting bauxite mining in Vizag
  The Andhra Pradesh Government has decided to adopt a cautious approach on the bauxite mining issue and has kept in abeyance the GO permitting bauxite mining in the Eastern Ghats of Visakhapatnam district issued earlier this month.
  
  The decision was taken late on Monday night at the State Cabinet meeting held in Vijayawada, following a public outcry and huge controversy in the wake of the GO issued on November 5. A bandh was observed for a day in the Eastern Ghats of Visakhapatnam district, known locally as the agency area, and there were protests from all the political parties, including many local leaders of the ruling Telugu Desam Party. Maoists active in the area also threatened to oppose the move tooth and nail.
  
  Under the circumstances, the State Government decided to keep the GO in abeyance but many local organisations and political parties are demanding that the GO be scrapped and the Government issue a clear and categorical statement that the move to undertake bauxite mining in the Eastern Ghats of Visakhapatnam district would not be revived.
  The AP Government has also decided to set up a state maritime board. The Cabinet has also cleared the Visakhapatnam metro rail project.
  
• PM calls for targeted economic sanctions to curb terror funding
  Prime Minister Narendra Modi on 18th November called for targeted economic sanctions to disrupt fund flows for terrorists. Addressing the sixth Global Conference on Asset Recovery in New Delhi,
  
  According to the Prime Minister, the terrorists derive funding from a variety of criminal activities which include smuggling of narcotics, fake currency or from state sponsored activities in failed states.
  
  Prime Minister stressed on:
  • Targeting proceeds of crime is an important elements in the fight against crime and sought international cooperation in this regard
  • The need to focus on enhancing international co-operation in the field of asset recovery for fighting crime, corruption and terrorism.
  • Globalisation of organised crime poses a major threat to economies throughout the world.
  On corruption, Prime Minister Modi said:
  • His government has taken significant steps to check corruption and menace of black money in a short span of time.
  • The Government is unsparing when it comes to punishing the corrupt.
  • The Centre is committed to implementing a uniform global standard on automatic exchange of information on a fully reciprocal basis to check black money.
  • The mission of his government is to build a prosperous India and it is essential to fight relentlessly against corruption to achieve this objective.
    
• Govt approves 10% stake sale in Coal India, eyes 20,000 cr
  CCEA has also approved 10 per cent stake sale in Coal India Ltd amid growing concerns over meeting Rs 69,500 crore disinvestment targets in the current fiscal. According to Coal and Union Power Minister Piysh Goyal the government hopes to mop up around Rs 20,000 crore. At current market capitalisation, 10 per cent stake sale could fetch about Rs 21,137 crore. Government holds 79.65 per cent stake in Coal India.
  
• Interest subsidy for Exporters from small, labour-intensive sectors
  Exporters struggling to stay afloat in a global market hit by slowdown have been extended the long-awaited interest subvention (subsidy) scheme that would allow those in labour-intensive and small scale sectors to avail themselves of loans from banks at a three per cent lower rate.
  
  The scheme, now re-named interest equalisation scheme, was approved by the Cabinet Committee on Economic Affairs (CCEA) on 18th November. It will be implemented with retrospective effect from April 1, 2015 and will cost the exchequer an estimated Rs. 2,500 crore- Rs. 2,700 crore, annually.
  
  The scheme would be available to all exports of micro small and medium enterprises (MSME) and 416 other items spread across 25 sectors. The sectors covered are mostly labour intensive and include agriculture/food items, auto-components, bicycle parts, handicrafts, electrical engineering items and machinery, telecom equipment, handmade carpet (including silk), handloom products, coir items, jute, readymade garments and made ups, toys, sports goods, paper and stationary, leather goods and ceramics. The scheme, however, will not be available for merchant exporters.
  
• Highway Ministry can approve projects up to Rs.1, 000 crore
  The Cabinet Committee on Economic Affairs has given its approval to segregate construction cost from that of land acquisition, and pre-construction activities for appraisal and approval of National Highways projects.
  
  Additionally the Cabinet has stated that all NH projects with a civil construction cost of up to Rs. 1,000 crore approvals of the Ministry for Road Transport and Highways will be sufficient. Only for projects over Rs. 1,000 crore, a Cabinet Committee of Economic Affairs nod will be required.
  
  The policy will speed up process of appraisal and approval of NH projects and help meet the target of 10,000 km set for this year.
  
  In another move, the CCEA also authorised NHAI to give road developers more time to finish their projects if the delays have not been caused by the developer.
  
  But the time for operations (toll collection or annuity payments) will continue to be the same, said an official release. This will be permitted for only for four-lane projects.
  It may be noted that there are provisions for extending the toll collection period as a part of the contract between developer and NHAI.
  
  The extension will be given based on assessment of independent engineer, both individual and the firm, who will be accountable for the assessment of the extension recommended in the concession period.
  
  The projects using the above special dispensation shall have to achieve physical completion in the next three years. The move will help 34 languishing road projects.
  
• Govt launches fund for MSMEs to acquire clean manufacturing tech
  Government has launched Technology Acquisition and Development Fund (TADF) to help the MSME sector acquire clean technologies and boost manufacturing.
  The scheme is conceptualised to catalyse the manufacturing growth in MSME sector to contribute to the 'Make in India' initiative
  
  The fund, under the National Manufacturing Policy, would provide financial assistance to micro, small and medium enterprises (MSMEs).
  
  According to Commerce and Industry Minister Nirmala Sitharaman it would facilitate acquisition of clean and green technologies by MSME across the sectors and thus, bridge the technological gap at an affordable cost.
  
  Under the direct support for technology acquisition, it said proposals from the industry will be invited for reimbursement of 50 per cent of technology transfer fee or Rs 20 lakh, whichever is lower.
  
  In in-direct support for technology acquisition via patent pool, it said financial support would be provided to acquire technology or patent from across the globe based on applications received from MSMEs. Technology or patent will be licensed to selected firms, with a mutually agreed value and the selected companies will get a subsidy of 50 per cent of the mutually agreed value or Rs 20 lakh The fund will also support, via subsidies, manufacturing of equipment, machines, devices for controlling pollution, reducing energy consumption and water conservation.
  
  Further, the scheme will incentivise introduction of environment friendly projects like construction of green buildings, implementation of waste treatment facilities and renewable energy projects.
  
  The scheme will facilitate resource conservation activities in industries located in NIMZ (national investment and manufacturing zones) through the introduction of incentive/subsidy schemes for energy, environmental, water audits, construction of green buildings, implementation of waste treatment facilities and implementation of renewable energy projects through financial support under the TADF," it said.
  
  TADF is a new scheme to facilitate acquisition of clean, green and energy efficient technologies, in the form of technology, customised products, specialised services, patents, industrial design available in India or globally, by MSMEs, it added. The scheme would be implemented through Global Innovation and Technology Alliance (GITA).
  
• RBI sets direct agri-lending target at 11.57%
  Reserve Bank of India (RBI) on 19th November said banks should lend at least 11.57% of their fund directly to non-corporate farmers in fiscal 2015-16. The number is the system-wide average of the last three years, as computed by the RBI.
  
  From next year, such three year averages will be notified by the regulator at the beginning of every year. If a bank fails to meet this target, the lender will have to pay penalty, usually investing in bonds by Nabard or of Rural Infrastructure Development Fund (RIDF), at a lower rate.
  
• 7th Pay Commission submits report to Government
  7th Central Pay Commission has recommended 23.55 hike in pay and allowances of government employees. Minimum basic pay of 18 thousand and maximum of Rs 2.5 lakh per month have been suggested by the Commission.
  
  According to the Commission chairperson Justice AK Mathur the pay revision will come into effect from January next year. He said the Commission has also recommended abolition of grade pay and pay band structure. He said the rate of annual increment for employees will be three percent.
  
  Under the recommendation, the pay will go up by 16 percent, allowances by 63 percent and pension by 24 percent. The commission has also recommended increase in military service pay besides revised pension formula for civil employees including Central Armed Police Forces and Defense Personnel retiring before 1st January 2016. It also recommended abolition of 52 allowances and introduction of a Health Insurance Scheme.
  Finance Minister Arun Jaitley said that the pay revision will impact 47 lakh serving employee and 52 lakh pensioners. He said it will cost public exchequer over one lakh crore rupees annually.
  
  The Minister said implementation of Pay Commission will impact fiscal deficit by 0.65 percent. Mr. Jaitley said a committee headed by Expenditure Secretary will be set up to go through the report for its implementation.
  
  The Pay Commission was set up in February last year to revise remuneration of central government employees and pensioners. Its recommendations will also have a bearing on the salaries of the state government staff. The Commission also recommended One Rank One Pension for central government staffers, para military as well as armed forces personnel.
  
• Kelkar panel suggests new ways to fund PPP projects
  The Vijay Kelkar committee, which was reviewing the public-private partnership model of infrastructure development, has made recommendations to improve the financing of such projects.
  
  The committee has analysed the risks involved and the existing framework of risk-sharing between the project developer and the government and given its recommendations.
  The mandate was to revive the past public-private partnership, review it and redesign it by introducing best international practices, and improve capacity building. According to Khelkar the committee has looked into all aspects.
  
  Both Kelkar and officials in the Finance Ministry remained tight-lipped on the key recommendations. Shaktikanta Das, Secretary, Department of Economic Affairs, while acknowledging that PPP projects are facing problems due to financing, contractual and capacity issues, declined to give any timeline for implementation. Das said the report will be put in the public domain soon.
  
• RBI nod must for investors picking up more than 5% stake in a private bank
  In a bid to have greater scrutiny over banking ownership, the Reserve Bank of India on 19th November said that new investors who buy over 5 per cent shares or convertible debt of a private sector bank will have to get the central bank’s approval.
  
  Existing promoters will also have to take the RBI’s approval if they intend to increase their holding to beyond 10 per cent in the bank. The RBI also said that all shareholders having 5 per cent or more of the paid-up share capital of a bank would have to give an annual declaration on their ‘fit and proper’ status.
  
  The major shareholders will have to furnish an annual declaration within one month of the close of financial year. If in the bank’s assessment any major shareholder is not ‘fit and proper’, it will have to immediately furnish the requisite information to the Reserve Bank.
  An existing major shareholder, who already has the approval of the Reserve Bank to have a major shareholding in a bank, will not be required to obtain prior approval for fresh incremental acquisition of shares if the proposed aggregate holding is up to 10 per cent. However, the major shareholder will have to furnish the details of the source of funds for such incremental acquisition and obtain ‘no objection’ from the concerned bank.
  
• ADB pledges $120 million loan to finance India, Bangladesh electricity link
  The Asian Development Bank has pledged 120 million dollar loan to finance increased transmission capacity of cross-border electricity link between Bangladesh and India. ADB Country Director Kazuhiko Higuchi and Senior Secretary of Bangladesh Finance Ministry Mohammad Mejbahuddin signed the loan agreement for the SACEC Second Bangladesh-India Grid Inter connectivity project.
  
  The interconnection project is part of efforts under the South Asia Sub-regional Economic Co-operation (SASEC) Programme to promote regional prosperity through improved cross-border links in trade, power, road and rail links.
  
  The project will double the capacity of the existing inter-connectivity link connecting power grid of western Bangladesh at Bheramara and the grid of eastern India at Bahrampur from 500 MW to 1000 MW. The networks were first connected in 2013 under a previous project financed by ADB.
  
• Govt lays out roadmap for phasing out tax exemptions for corporate
  The Centre on20th November put out a roadmap to end exemptions and deductions as part of its effort to make the tax rates competitive.
  
  In Budget 2015-16, Finance Minister Arun Jaitley had set for himself the target of reducing the corporate tax rate to 25 per cent over the next four years from the current 30 per cent. This was to go hand-in-hand with a phasing out of exemptions and deductions, making the tax laws simpler. Jaitley had said then: The revenue foregone due to exemptions and tax incentives for corporates in 2014-15 was around Rs. 62,400 crore.
  
  In what it called a “step towards simplification of tax laws which is expected to bring about transparency and clarity,” the Central Board of Direct Taxes (CBDT), in a statement on 20th November, said all profit-linked, investment-linked and area-based deductions for both corporate and non-corporate taxpayers would be phased out.
  The new plan includes reducing the maximum allowed depreciation rate, from 100 per cent on some assets to 60 per cent from April 1, 2017.
  
  The new rate will apply to all assets, new or old. Similarly, the government wants to end weighted deductions, which amount to as much as 150 per cent in the case of capital expenditure on warehousing facility for farm produce and fertilisers, or on Research and Development spending.
  
  That is, firms are allowed tax-breaks worth Rs. 150 even if they have spent only Rs. 100.
  While the sunset date for an incentive will not be extended, in the case of sectors where no terminal date has been specified, the sunset date would be March 31, 2017.
  A key worry for corporates would be whether they will pay more or less. At present, though the tax rate is 30 per cent, post deductions/exemptions the effective rate would be 22-23 per cent.
  
  According to a CII statement issued earlier, at the proposed 25 per cent, the effective rate would be around 29 per cent sans the sops plus the surcharge and education cess.
  
  The phase-out plan
  • Highest rate of depreciation to be lowered to 60% against 100% now
  • No weighted deduction to be allowed from April 1, 2017
  • Deduction rate cut for expenditure incurred on scientific research
  • Sunset date of March 31, 2017, specified for tax incentives in certain infra sectors
    
• Area under wheat falls by 36 per cent during the Rabi season compared to year-ago period
  Area under wheat has fallen by 36 per cent to nearly 79 lakh hectares during the Rabi season so far compared to around 107 lakh hectares in the year-ago period. The Agriculture Ministry said in a release that as per preliminary reports received from the fields, total area sown under Rabi crops stands at 242-lakh hectare, which was around 277-lakh hectares. Area sown under pulses stood at nearly 74-lakh hectare as compared to around 77-lakh at the same time last year.
  
  The release said that area under oilseeds has also dipped to around 50-lakh hectares from 60-lakh hectares. Area under coarse cereals has, however, increased to over 38 lakh hectares from 31 lakh hectares in the year-ago period.
  
• 16 approvals cleared under TS-iPASS
  The Telangana State Government has approved 16 proposals for investment under TS-iPass, it also included plans of MRF in Medak district with an investment of Rs. 900 crore. The total investment is about Rs.1,571 crore. These were cleared by the State Government on 21st November under the Telangana State Industrial Project Approval and Self Certification System (TS-iPASS).
  
  An employment potential of over 1,800 would be created with the proposed investments in Medak, Ranga Reddy and Mahabubnagar districts.
  
  Minister for Industries Jupally Krishna Rao stated that he had handed over some of the approval letters to the persons concerned as part of the fourth phase of clearances under TS-iPASS. The investments include in six solar power projects with an installed generation capacity of 47.3 MW.
  
  SEI Sriram Power Private Ltd, Kranthi Edifice Private Ltd, Sparkman Solar Energy Private Ltd, Shining Sun Power Private Ltd, GMR Hyderabad International Airport and Haldiram Snacks Private Ltd would invest over Rs. 310 crore for the purpose.
  Expansion of the existing manufacturing facility of MRF Ltd has been in the air for over a year now and it has been firmed up with the clearance given by the State Government on Saturday. It would enable employment generation of 500 persons by the company.
  Another major investment cleared was a circuit-breakers manufacturing unit by Schneider Electric India Private Ltd with Rs. 150 crore.
  
• Centre notifies implementation of OROP for ex-servicemen
  The Centre has issued notification for implementation of One Rank One Pension (OROP) for ex-servicemen. It will benefit over 25 lakh veterans and war widows. Under the OROP scheme notified last evening, the pension will be re-fixed every five years.
  
  For all pensioners, pension will be re-fixed on the basis of the average of minimum and maximum pension of personnel retiring in 2013 in the same rank and with the same length of service. In case of past pensioners, it will be re-fixed on the basis of pension of retirees of 2013 and the benefit will be from 1st July 2014.As per the notification, arrears will be paid in four equal half yearly installments. However, all the family pensioners, including those in receipt of Special and Liberalized family pensioners and Gallantry award winners will be paid arrears in one installment.
  
  The government has also decided to appoint a Judicial Committee to look into anomalies, if any, arising out of implementation of OROP. The Committee will submit its report in six months.
  
  The OROP for the ex-servicemen was announced on 5th of September this year, but notification could not be issued due to model code of conduct in view of Bihar assembly elections.
  
• Exports of top 5 sectors dip 31% in September
  Slump in global demand has impacted Indian exports as well. According to Commerce Ministry data, exports of top five sectors fell by about 31 per cent to 13.6 billion dollars in September. Petroleum exports were most affected falling by over 60%, engineering exports fell by 23%. Textiles, gems & jewellery also recorded negative growth during September. Only pharmaceuticals sector managed to registered a growth of 9 per cent.
  
  Contracting for the 10th month in a row, India's merchandise exports dipped 24 per cent in September to 21.84 billion dollars.
  
• Boeing, Tata form JV to make aerostructures
  US aviation major Boeing Company and Tata Advanced Systems have announced a joint venture (JV) that will manufacture aero structures for aircraft and collaborate on integrated systems development opportunities in India.
  
  The JV will initially create a manufacturing centre of excellence to produce aero structures for the AH-64 Apache helicopter and to compete for additional manufacturing work packages across Boeing platforms, both commercial and defence.
  
  Boeing and Tata Advanced Systems intend to grow the JV partnership in the future, with a focus on opportunities to collaborate on development and selling of integrated systems.
  
  This agreement to establish a JV will propel the growth of the Indian aerospace sector by leveraging the world-class competencies of TASL and its supplier eco-system, as well as provide access to India’s world-class manufacturing capability, skilled talent and competitive cost structures
  
  The US company has over the last 12 months, doubled their sourcing from India. TASL is one of the select few in the private sector in India undertaking manufacturing and assembly of both aircraft and helicopters. The resulting scale and expertise at which the company now operates makes it well-positioned for large-scale systems integration work in India’s aerospace and defence sector
  
• Centre to continue with 90:10 funding pattern to NE states
  The Union Minster of State for Finance Jayant Sinha said that the Central Government has “largely resolved” to continue with the 90 to 10 ratio funding pattern for 17 Core Centrally Sponsored Schemes (CSS) and would follow the 80 to 20 ratio pattern for non-core CSS schemes for the North-Eastern States.
  
  The funding pattern would be retained based on the recommendations of the Shivraj Singh Committee formed to study the funding pattern for North-eastern States.
  
• Centre eases FDI norms in 15 major sectors
   The Government has liberalised Foreign Direct Investment, FDI norms in 15 major sectors of the economy to further boost the investment environment and to bring in more foreign investment in the country.
  
  These sectors include mining, civil aviation, defence, broadcasting, construction, manufacturing and private sector banking.
  
  The reforms are aimed at further easing, rationalising and simplifying the FDI process and to put more and more FDI proposals on automatic route instead of Government route.
  
  According to Finance Minister Arun Jaitley, FDI caps have been enhanced and some outdated conditionalities have been done away with or eased. One of the most important reforms is in the construction sector and added that 32 investment points have been impacted by the FDI reforms.
  
  The Finance Minister said India has been one of the largest investment destinations in the recent past and FDI inflows in last one year increased by 40 per cent.
  
  Under the liberalised norms, the Commerce and Industry Ministry has relaxed FDI policy in single-brand retail and allowed companies to sell products through e-commerce.
  
  Besides, 100 per cent FDI has been allowed in plantation of rubber, coffee, cardamom, palm oil tree and olive oil tree The government has also raised the approval limit of Foreign Investment Promotion Board from three thousand crore to five thousand crore rupees.
  
  • 100% FDI under automatic route is permitted in construction sector for operation and management.
  • FPI's have been allowed to invest upto 74 %in private banks.
  • 100% FDI is allowed in plantation of rubber, coffee, cardamom, palm oil tree and olive oil tree.
  • 100 % FDI has been allowed in DTH, CABLE Network and Mobile TV and 49 % FDI has been approved in FM radio.
  • 100% Automatic route FDI allowed in Up-linking of Non-'News & Current Affairs' TV Channels.
  • In order to relax FDI policy in single-brand retail, government has allowed companies to sell products through e-commerce.
  • Government has allowed foreign investment up to 49% under automatic route in regional air services sector.
  • FDI policy on Limited Liability Partnerships (LLP) has been amended to provide that investments in LLPs will not require Government approval.
  • The government has also proposed to increase FIPB limit to Rs 5,000 crore from current Rs 3,000 crore.
  • Opening up new sectors for foreign players is part of the ambitious 'Make in India' initiative of the government. FDI is also essential to implement the 'ease of doing business' in the country.
  
  
• India inks $273 million loan pact with ADB for funding rural roads
  Centre on 10th November signed 273 Million dollar loan agreement with Asian Development Bank in New Delhi for improving rural roads in Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal. Finance Ministry in a release said, the loan will help in constructing over six thousand kilometers of all-weather rural roads in these states and will benefit over 4200 rural habitations.
  
  This is the third and last tranche, of 800 million dollar financing facility under the Rural Connectivity Investment Programme. The Ministry said, the program has supported the Government’s objectives under the Pradhan Mantri Gram Sadak Yojana.
  
  The enhanced connectivity will improve access of rural communities to markets, district headquarters, health and education facilities, and other centers of economic activity.
  
• Timeline for service tax refund
  Seeking to fast-track service tax refund to exporters, the Central Board of Excise and Customs (CBEC) on 10th November fixed a timeline for 80 per cent payment of the total amount claimed.
  
  The move will speed up sanction of the refund accumulated CENVAT credit to exporters of the services, it added. It is also clarified that the decision to grant provisional payment is an administrative order and not a quasi-judicial order and should not be subjected to review.
  
  This payment of 80 per cent of the refund shall be purely provisional based on the documents above and without prejudice to the department's right to check the correctness of the claim in terms of the relevant notification, it said.
  
  On the CBEC move, Nasscom said the circular has reiterated granting 80 per cent upfront refund within a week and the balance 20 per cent on scrutiny of applications.
  
• Disabled, BCs, minorities should have 1st claim on central funds: CMs’ sub group
  Chief Minister's sub-group on centrally-sponsored schemes (CSS) has suggested that MGNREGA and social inclusion schemes, particularly for the disabled, backward castes and minorities, should have the first claim on central funds.
  
  The panel in its report submitted to the Prime Minister last month, has also recommended that the number of CSS should be reduced to 30 and flexi-funds can go up to 25 per cent, from the existing 10 per cent.
  
  According to the report, the Centre has retained 50 of the 66 ongoing schemes in current year's budget and the remaining are either being taken into the central sector or reformulated as new umbrella schemes or have been transferred to states. The panel has said the focus of CSS should be on those
  
  It has also proposed that in schemes such as ASHA, Aanganwadi, Sarva Shikha Abhiyan with remuneration or salary components and the funding pattern should not be modified to the disadvantage of the states until the completion of the 12th Plan.
  
• Panel on tax laws gets one-year extension
  The Finance Ministry has extended the tenure of the high-level committee to interact with trade and industry on taxation policies by one year. The panel’s mandate is to engage with investors and assure them of a stable and transparent tax regime.
  
  The tenure of the Committee which was till November 25, 2015, is now further extended for one year, said an official statement on 12th November. The committee was set up in November 2014 following an announcement in Union Budget 2014-15 to identify grey areas in taxation policy.
  
  The committee is headed by Ashok Lahiri, former Chief Economic Adviser to the Finance Ministry, and its members include Siddharth Pradhan, former Member, Settlement Commission, and Gautam Ray, former Director General (Audits), Customs and Central Excise.
  
  The panel will continue to interact with trade and industry on a regular basis and recommend measures to the Central Board of Direct Taxes and the Central Board of Excise and Customs such as issuing clarificatory instructions and circulars.
  
  The Ministry said the two Boards are expected to take appropriate action within two months of the recommendations being made.
  
• FM Arun Jaitley to chair six member panel to oversee NIIF's activities
  The government has constituted a six member Governing Council under the chairmanship of Finance Minister Arun Jaitley to oversee the activities of the National Investment and Infrastructure Fund (NIIF). The mandate of the Council is to approve guidelines for Investment of Trust property Corpus of NIIF and parameters for appointment and performance of investment managers and advisors.
  
  Earlier, the Union Cabinet had approved creation of twenty thousand crore rupees National Investment and Infrastructure Fund (NIIF) to attract investment from both domestic and international sources.
  
  The fund aims at maximising economic impact mainly through infrastructure development in commercially viable projects including stalled projects.
  
• Government Clarifies on Swachh Bharat Cess
  The Finance Ministry on 12th November said that service tax on restaurant bills will go up from 5.6 per cent to 5.8 per cent following the levy of 0.5 per cent Swachh Bharat cess on all taxable services from November 15.
  
  The ministry, however, clarified that the cess will not apply on those services for which payments have been received prior to November 15 and invoices raised before November 29. It would mean that the Railway and flight tickets booked before November 15 will not attract the additional levy.
  
  The Swachh Bharat cess, will be levied only on the portion of taxable services (after abatement) and will go towards funding of the cleanliness drive, a pet project of Prime Minister Narendra Modi. The Finance Ministry clarified that all provisions including those related to computation of taxable value, assessment, exemption, payment, penalty applicable to service tax would apply to the Swachh Bharat cess.
  
  Explaining the provisions, it said, the cess would be calculated on the abated value or value arrived as per the Service Tax (Determination of Value) Rules, 2006. For restaurants or eating joints having air-conditioning facility, the cess would be 0.5 per cent of 40 per cent of the billed amount i.e 0.2 per cent.
  
• President inaugurates 35th IITF in New Delhi
  Indian President Pranab Mukherjee has said that India can become a ten trillion dollar economy in the next two decades through manufacturing and innovation. Inaugurating the 35th edition of India International Trade Fair, IITF, in New Delhi on 14th November, Mr Mukherjee said, reforms of the government are on the right track. He said, India has stood well despite global slowdown and the initiatives taken by the government are now showing results.
  
  He hoped that India will be able to achieve the target of 3 per cent fiscal deficit as the current account balance and foreign exchange reserves have improved. He said IITF would help preserve, protect, promote and reinforce the Indian brand. He said, the annual celebration of trade is to develop India's bilateral relations with the rest of the world. Over 7,000 firms from India and overseas are participating in the 14 day fair.
  
• NCAER lowers GDP forecast to 7.4 per cent for next fiscal
  Economic think tank NCAER on 14th November marginally lowered GDP forecast at 7.4 per cent because of slowdown in agriculture due to deficient monsoon. This marginal fall is due to the anticipated slowdown in the agriculture sector. Industrial growth continues to gather strength while the outlook for the services remains mixed according to National Council of Applied Economic Research (NCAER) said in a statement. In August, it had projected economic growth at 7.5 per cent for the current fiscal.
  
  The Finance Ministry has pegged the growth rate for the financial year 2015-16 at around 8.1-8.5 per cent, which now looks difficult to achieve as the growth in the first quarter worked out to be only 7 per cent. It further said the overall demand remains sluggish because of weak external demand and dampened rural demand, while investment shows weak signs of revival.
  
  The industrial sector performed better with 4 per cent growth in the first half of the FY16 against 2.9 per cent in the comparable period of the last fiscal, it said.
  
  The improvement is mainly driven by the manufacturing sector with 4.2 per cent growth in the first half of the 2015-16 compared to 2.2 per cent in the corresponding period of the last fiscal.
  
  With regard to agriculture sector, it said, the actual rainfall received during June-September period of 2015-16 was below normal.
  
  Despite deficit rainfall, it estimates overall food grain output during this year’s kharif season likely to be marginally higher compared to last year due to better rainfall conditions in areas where coarse cereals and pulses are grown, it said. On inflation, NCAER said, it has declined over the period of the last one and half years.
  
• Govt. forms committee to review drug pricing policy
  The government has formed an inter-ministerial committee to review the Drug Price Control Order (DPCO) 2013, following the Supreme Court verdict this year that termed the drug pricing policy as irrational and unreasonable.
  
  The committee will look into the drug pricing mechanism as there have been complaints that the companies are making significant profits which go up to few thousand per cent.
  
  In July this year, while hearing the petition of NGO All India Drug Action Network, the Supreme Court had observed that the Centre was fixing maximum price of a medicine above the retail price of the leading company.
  
  One of the five issues to be considered by the government relates to NGO’s plea that MBP (Market Based Pricing) was never used for any price regulatory purposes and under the new policy, simple average ceiling prices were, in many cases, higher than the market leader price.
  
  The committee will look into the pricing of medicines, and specifically in the market based pricing formula which is being used at present under DPCO 2013. The NGO had in a petition also alleged that the market based pricing was never used for any price regulatory purposes and this was making medicines costlier.
  
  The NGO had also sought inclusion of more life-saving medicines of diseases such as diabetes and tuberculosis in the list of drugs whose prices would be regulated by the government. As stipulated under DPCO 2013, drug price regulator NPPA fixes the ceiling price of essential medicines of schedule-I.
  
  So far, the authority has fixed the ceiling price of 530 formulations from the list. And no one is authorised to sell any scheduled medicine to a consumer at a price higher than the one notified by NPPA under the order. While fixing the ceiling price, 16 per cent margin is allowed for retailers.
  
• India becomes world's 7th most valued nation brand: Report
  As per the annual report on world's most valuable nation brands compiled by Brand Finance, India has moved up one position to become the world's seventh most valued nation brand with an increase of 32 per cent in its brand value to 2.1 billion dollars.
  
  According to the report, the US remains on the top with a valuation of 19.7 billion dollars, followed by China and Germany at the second and the third positions.
  
  It said the surge of 32 per cent in India's nation brand value is the highest among all the top-20 countries on the list. China has retained its second position despite a decline of one per cent in its brand value to 6.3 billion dollars. The report also said that India's 'Incredible India slogan has worked well, while Germany suffered due to the Volkswagen crisis.
  
• Facebook to set up wi-fi in rural India
  Boosting government's ambitious 'Digital India' drive, social media giant Facebook has come forward to facilitate state-run BSNL in setting up 100 wi-fi sites in rural areas of western and southern India. Facebook will spend Rs 5 crore per annum for sponsoring these 100 wi-fi hotspots in the country.
  
  Facebook has partnered with BSNL to sponsor 100 wi-fi hotspots in villages across west and southern India. It will pay Rs 5 lakh for BSNL bandwidth for each hotspot per annum. BSNL has already set up 25 hotspots under the agreement. The agreement between Facebook and BSNL is for three years and it can be further extended for two more years.
  
  BSNL has also received interest from Member of Parliaments for setting up wifi hotspots in villages which they have adopted under Saansad Adarsh Gram Yojana (SAGY) to make it a model village by 2016.
  
• India’s exports will do relatively well in 2016, says UN report
  Exports from India and Vietnam are expected to relatively do well in 2016 as their shipments are largely directed to advanced economies in Europe and North America that are expected to expand in the coming year, a United Nations report has said.
  
  The Asia-Pacific region, which includes India, China, Japan, Russia, and the ASEAN nations, among others, will hold its position as the largest trading region in the world despite the lowering of trade growth prospects due to global slowdown, the Asia-Pacific Trade and Investment Report 2015 brought out by UN ESCAP on 2nd November, pointed out.
  
  Countries, heavily dependent on China for their exports, however, will not do well, due to the slowdown in the country’s economy, the report added.
  
  On Indian economy, the report pointed out that it was unlikely to compensate for sluggish performances elsewhere as India’s market remains only “weakly and selectively’’ integrated with the Asia-Pacific region overall.
  
  The report emphasises that countries need to adjust to both cyclical and structural changes, especially in light of the global slowdown and an expected reduction in China’s growth rate.
  
  Total exports and imports from the region, which also includes South Korea, Australia, New Zealand, Kazakhstan, Turkey and Mongolia, grew by only 1.6 per cent in 2014. However, when excluding China from the regional total, exports from the Asia-Pacific region registered a decline of 0.4 per cent.
  
• Moody's ups Indian banking sector outlook to stable
  Moody's Investors Service 2nd November upgraded its outlook for India's banking system to 'stable' from 'negative' on expectation that a gradual improvement in the operating environment for lenders will lead to lesser growth in bad loans in future.
  
  Moody's had assigned a negative outlook to the Indian banking system in November 2011 as it was of the view that the asset quality of the lenders was deteriorating. In the report Moody's said the stable outlook is based on assessment of five drivers -- improving operating environment, stable asset risk and capital, stable funding and liquidity.
  
  Moody's, however, said the capital levels of public sector (PSU) banks are low and the government's announcement of injecting Rs 70,000 crore into PSU banks over the next four years is "clear positive".
  
  Moody's rates 15 banks in India that together account for around 70 per cent of system assets. Four are private-sector banks and the remaining 11 are PSU banks.
  
• Telangana Govt announces land, building regularisation scheme for Greater Hyderabad
  The Greater Hyderabad Municipal Corporation limits, the Telangana Government has announced a scheme that enables people to regularise their land and buildings.
  
  The Government has kept open the validity of the regularisation scheme for 60 days from November 2. Under the land regularisation Scheme (LRS) and Building Regularisation Scheme (BRS), all lands and buildings, the latter constructed as of October 28 are eligible to avail the provisions of the scheme.
  
  As per the scheme, applicants under the LRS/BRS scheme can apply online by paying Rs. 10,000. After being examined at various departments, within six months it would be finalised.
  
  The State Chief Minister K Chandrasekhar Rao, basing on a number of representations for land and building regularisation, had appointed a Committee headed by the State Minister Srinivas Yadav as Chairman to look into various aspects and come out with appropriate suggestion for regularisation. Based on the suggestions by the Committee for Regularisation, the Chie Minister formally approved the scheme.
  
  The panel also decided to come down heavily on illegal constructions and layouts and cases would be filed against those who violate various provisions. It is also proposed to set up a separate tribunal after consulting the law department.
  
  In order to curb illegal construction, the committee suggested a separate enforcement wing. It is proposed to come out with a single window clearance for building and house approvals, which is aimed at expediting the process of clearance with least interference.
  
• IRDAI toughens norms for global reinsurers
  Insurance Regulatory and Development Authority of India (IRDAI) has toughened its norms for foreign reinsurance companies opening up branch offices in India.
  
  With appointment and chief executive remuneration to be monitored by the regulator apart from higher retention within the country, reinsurers are of the view that these firms may not open up multiple offices in India.
  
  Presently, foreign reinsurers operate in India through representative offices which will have to be closed within six months of grant of certificate of registration to function as a branch office.
  
  In its final norms on setting up branches by foreign reinsurers in India, the regulator said that they have to get prior approval on the appointment, reappointment, removal and managerial remuneration payable to Chief Executive Officer of the branch office. To open offices in different parts of the country, all of these reinsurers require IRDAI approval.
  
  These norms would be applicable only to foreign reinsurers setting up branches in India. Newer domestic reinsurers who are granted license would have a different set of rules applicable to them. Regulatory officials expect 5-6 foreign reinsurers to apply for branch license.
  
  Apart from a good credit rating from rating agencies, Rs 100 crore will also have to be infused into the branch office. IRDAI has said that it will take a decision on the number of reinsurers that will be permitted to set-up branches in a year keeping in view the orderly growth of the insurance and reinsurance market, national interest, and any other related aspects.
  
  One another provision, according to reinsurers that could deter foreign reinsurers from setting up Indian offices, is that every Indian insurer would have to give first preference to Indian reinsurers in their offer for participation in its facultative and treaty surpluses.
  
  India has General Insurance Corporation of India as its sole domestic reinsurer, though some other domestic entities have applied for reinsurance license.
  
  Every branch office has to maintain a minimum retention of 50% of the Indian reinsurance business. Further, these branch offices granted approval would not be eligible for order of preference for cessions by Indian insurers as those available to Indian Reinsurer for a minimum period of 3 years.
  
  Consultants who have been advising global reinsurers entering India are of the view that while a branch office will help in a closer review of the risk thereby improving pricing for the clients, restrictions on number of offices each year could be detrimental.
  
• France to give €2 billion for smart cities
  France has become the first country to make a financial commitment towards the National Democratic Alliance government’s ambitious ‘smart city’ project. Around €2 billion will be provided to convert Chandigarh, Nagpur and Puducherry into smart cities, ambassador of France in India Francois Richier announced on 4th November.
  
  While other countries, including the US, Japan, Spain, Germany, Netherlands and Singapore have entered into partnerships and have chosen their preferred cities to invest in, no figure was mentioned earlier, experts working in the area pointed out.
  
  Estimates suggest that building a new smart city with one-million population would cost around Rs 20,000 crore a year for the next 10-15 years, while building on existing cities would be cheaper depending on the nature of retrofitting work required. The Centre had decided to spend Rs 50,000 crore and the remaining was expected to come from states and private entities.
  
  The global opportunity for smart cities by 2020 is $1.7 trillion, according to estimates. In India, the smart city segment could mean an opportunity of $50 billion.
  
• SIT on black money calls for more vigilance to check shell companies
  Special Investigation Team, SIT on black money has called for more vigilance by law enforcement and intelligence agencies, with regard to companies which are operating from same address.
  
  The SIT in its third report on black money dealing with Shell Companies and Beneficial Ownership noted that over 2600 persons are directors on more than 20 companies which is violation of Companies Act.
  
  The report said, at least 20 companies are operating from the same address at 345 place. Finance Ministry in a release said, as per the provisions of erstwhile Companies Act, 1956, more than 77,000 companies were found violating the norms relating to Directorship.
  
  The SIT, headed by a retired Supreme Court judge has suggested proactive detection of creation of shell companies and deterrent penal action against persons involved in such activities. The Team has also requested the Ministry of Corporate affairs to take necessary action with respect to violation of the Companies Act.
  
  The SIT was notified last year by the government on the directions of the Supreme Court to go deeper into the cases of black money where Indians have stashed their assets abroad and also suggest policy measures to combat the illegal activity.
  
• Panel suggested forming ‘Insolvency Regulator’
  The TK Viswanathan-headed committee on Bankruptcy Law Reforms has proposed an easy exit option for low-income individuals unable to repay debts.
  
  The comprehensive draft Insolvency and Bankruptcy Bill, part of a report on ‘Bankruptcy law reforms’ that was submitted to Finance Minister Arun Jaitley on 4th November, envisages two distinct processes — Fresh Start and Insolvency Resolution — to deal with individual bankruptcy.
  
  In the Fresh Start process, indigent individuals with income and assets lower than specified thresholds (annual gross income not exceeding Rs. 60,000 and aggregate value of assets not exceeding Rs. 20,000) shall be eligible to apply for a discharge from their “qualifying debts”.
  
  A resolution professional will investigate and prepare a final list of all qualifying debts of the individual within 180 days from the date of application.
  
  On the expiry of this period, the adjudicating authority will decide whether to discharge the debtor from the qualifying debts and accord him an opportunity to make a fresh start financially.
  
  In the Insolvency Resolution Process, the creditors and debtor will negotiate to arrive at a mutually agreeable repayment plan under the supervision of a resolution professional.
  
  The bankruptcy of an individual can be initiated only after the failure of the resolution process. The bankruptcy trustee will be responsible for administration of the estate of the bankrupt and for distribution of the proceeds on the basis of priority, said the panel’s report.
  
• India's solar power rates at historic low
  Solar rates in India touched a new low in the tender for a 500-Mw solar park in Andhra Pradesh issued by the Ministry of New and Renewable Energy (MNRE). US-based SunEdison won the bidding round by quoting Rs 4.63 a unit.
  
  In a close fight during the first reverse auction for solar projects held on the online platform, 10 bidders quoted below Rs 5 per unit. Around 15 companies quoted below Rs 5.5 a unit, which was hailed to be the average tariff for solar power this year by the government.
  
  Solar power would be bundled with thermal power from state-owned National Thermal Power Corporation (NTPC), which will further bring down the final sale price to Rs 3.5 a unit — the lowest ever — said a person close to the development.
  
  The lowest solar bid earlier had come for Madhya Pradesh at Rs 5.05 a unit from Malaysia-based Sky Power. The government has increased solar power capacity addition targets five times to 100,000 Mw by 2022. Of this, nearly 60,000 Mw would be met through grid-connected projects.
  
• Cabinet hikes MSP for major crops including wheat, gram and pulses
  Union Government has hiked Minimum Support Price (MSP) of pulses by Rs 250 per quintal and wheat and barley by Rs 75 a quintal for for 2015-16 rabi season. A decision in this regard was taken by the Cabinet Committee on Economic Affairs.
  
  According to Power Minister Piyush Goyal, MSP for wheat has been raised from Rs 1,450 to Rs 1,525 per quintal, for barley from 1,150 to 1,225 and gram from Rs 3,175 to Rs 3,425 per quintal. The MSP on mustard has been raised by 250 to 3350 rupees. Additional bonus of Rs 75 per quintal will be given for gram and masoor dal.
  
  CCEA has also given approval to allocation of additional 27 lakh tonnes of foodgrains to BPL and APL families through Public Distribution System.
  
  This will be for states which have yet not implemented National Food Security Act. So far 20 States have implemented the Act and by March next the rest of the states will implement the ACT.
  
• PM launches gold schemes, coin with Ashok Chakra, Gandhi image
  Indian Prime Minister Narendra Modi on 5th November launched three ambitious schemes to reduce the physical demand for gold and fish out 20,000 tonnes of the precious metal lying idle with households.
  
  The Gold Monetisation Scheme (GMS), 2015 will offer option to resident Indians to deposit their precious metal and earn an interest of up to 2.5 per cent.
  
  Under the Sovereign Gold Bonds Scheme, investors can earn an interest rate of 2.75 per cent per annum by buying paper bonds.
  
  Mr Modi also unveiled the first ever Indian gold coin and bullion, bearing national emblem Ashok Chakra on one side and Mahatma Gandhi's image engraved on the other side. Initially the coins will be available in denominations of 5 and 10 grams. A 20 gram bullion will also be available through 125 MMTC outlets.
  
  According to Prime Minister Narendra Modi, India has surpassed China as the world's largest gold consumer, buying 562 tonnes of yellow metal so far this year, against china's 548 tonnes.
  
• Govt clears financial restructuring package for power discoms in select states
  The Cabinet has cleared financial restructuring of debt of power distribution companies under a new scheme namely Ujwal DISCOM Assurance Yojna(UDAY). It provides for the financial turnaround and revival of Power Distribution companies (DISCOMs), and also ensures a sustainable permanent solution to the problem.
  
  Power Minister Piyush Goyal said Rs 4.3 lakh crore of debt have accumulated with discoms in the country and it has diminished their capacity to buy additional electricity.
  
  He said the restructuring plan is conditional on mandatory metering, use of smart meters and coal swapping for generating cheapest power. Mr. Goyal said states can take over 75 percent of the debt of discoms and can issue government security linked bonds. Rajasthan, Uttar Pradesh, Tamil Nadu and Haryana distribution companies are the most loss making entities.
  
  The minister said UDAY will accelerate the process of reform across the entire power sector and ensure that power is accessible, affordable and available for all.
  
• Ratan Tata inaugurates Rs. 40-cr start-up incubator in Telangana
  Tata Sons Chairman Emeritus Ratan Tata on 5th November inaugurated T-Hub and called that as a new face of India”.
  
  Set up with an investment of Rs. 40 crore, the first phase of T-Hub would house 300 start-ups and can seat 800 employees. The Indian School of Business, International Institute of Information Technology (Hyderabad) and National Law University, Nalsar, are also associated with the hub.
  
  This is the biggest start-up incubator in the country. The hub has signed MoUs with Nasscom and the Internet and Mobile Association of India (IAMAI) that would bring in 10X accelerator to Hyderabad.
  
• Govt to impose 0.5% Swachh Bharat cess on services from Nov 15
  The Centre has decided to impose Swachh Bharat Cess of 0.5 per cent on all services which come under the purview of Service Tax. This will result into a tax of 50 paisa only on every one hundred rupees worth of taxable services.
  
  According to the Finance Ministry, the new cess will come into force from 15 th of this month. The Cess will create funds for financing and promoting Swachh Bharat initiatives. The Cess is not another tax but a step towards involving each and every citizen in making contribution to Swachh Bharat.
  
  A provision was made in current financial year's Budget for levying a Swachh Bharat Cess on all or any of the services for the purposes of financing and promoting Swachh Bharat initiatives.
  
  Increased allocation for Swachh Bharat Abhiyan can prevent many of diseases including malaria, dengue, diarrhea and jaundice with consequential benefit to one and all. According to the Government estimates, expenditure on health adds up to 6,700 crore rupees annually or Rs 60 per capita on medical treatment.
  
• State, district co-op banks can offer 'view only' net banking
  RBI has allowed state and district central co-operative banks to offer internet banking to its customers subject to certain conditions. A notification issued by RBI from Mumbai said that internet banking guidelines have been revised and accordingly all cooperative banks that have implemented Core Banking Solution and migrated to Internet Protocol Version 6 may offer internet banking (view only) facility to their customers, without prior approval of RBI.
  
  View only facility means the customers can only use online services such as balance enquiry, balance viewing, account statement download and request for supply of cheque books.
  
  RBI has however added that cooperative banks that wish to provide internet banking with transactional facility must get RBI approval with the conditions that their capital adequacy ratio is not less than 10 per cent, net worth is 50 crore rupees and gross non-performing assets are less than 7 per cent.
  
  RBI has further said that the applicants must have a track record of regulatory compliance, with no monetary penalty being imposed on them for violation of RBI guidelines during the last two financial years.
  
• Govt sets target of 300Mt production capacity of steel, iron ore by 2025
  According to Union Minister for state for Steel and Mines Vishnu Deo Sai, the government has fixed a target of 300 million tonnes production capacity of steel and iron ore by 2025 and ministry is working out action plan and strategies to achieve this target.
  
• Microsoft to fund smart city start-ups: Satya Nadella
  Microsoft CEO Satya Nadella has said that the tech giant will fund hundreds of new generation entrepreneurs in India's 'smart cities' space. Unveiling the new cloud start-up initiative to empower the smart cities, Nadella said start-ups can apply for individual access up to 80 lakh Indian rupees worth of Azure computing to help India’s smart cities explore solutions and run smart city digital pilots.
  
  He explained start-ups aligned to smart cities will be able to use Microsoft Lumia 950 and 950 XL and also Microsoft Surface Pro 4 to develop solutions for farming, healthcare and education.
  
  Describing the pace of growth of e-commerce and start-up ecosystems as "pretty mind boggling”, Nadella said most of these start-up ideas are pretty good and seriously innovative. The Microsoft CEO said he is extremely impressed with the adoption level of cloud computing in the country since it opened three data centres in Pune, Mumbai and Chennai 12 months ago.
  
  According to Microsoft, this initiative is anticipated to impact over 50 smart cities in the next year through a catalogue of over 50 start-ups and ISV solutions. Meanwhile, Nadella informed that 2 pilot projects are already running in Srikakulam in Andhra Pradesh and Varanasi in Uttar Pradesh since the past few months.
  
• Rajasthan first state to plug into discom revival plan
  States are readying plans for reviving their power distribution utilities after the central government put the ball in their court. Officials said Rajasthan, whose power distribution utility had the highest debt exposure among all states, would be the first to sign up for the Centre's scheme.
  
  The Union Cabinet on 4th November cleared the Ujjwal Discom Assurance Yojana to revive power distribution and provide relief to lenders. Distribution utilities owe a cumulative Rs 4.3 lakh crore to financial institutions.
  
  The plan, designed by the Centre and open to all states, will be implemented through memoranda of understanding with state governments and distribution utilities.
  
  States have been asked to take over 75 per cent of the debt of their distribution utilities over the next two years. State can issue bonds against this debt. For the next two financial years, the central government will not include the debt taken over by the states in the calculation of their fiscal deficit.
  
  ICRA in a report on 5th November said the debt takeover was likely to translate into a Rs 46,000 crore savings in interest costs. This would translate into Rs 0.50 a unit (kilowatt per hour) lower cost of electricity supply nationwide by March 2018, it added.
  
  The impact on the cost of supply for distribution utilities in four states - Tamil Nadu, Rajasthan, Uttar Pradesh and Haryana - would, however, be significantly higher, in the range of Rs 1-2 a unit," ICRA said.
  
  Distribution utilities in Rajasthan owe Rs 85,000 crore, Tamil Nadu Rs 70,000 crore, Uttar Pradesh Rs 32,000 crore and Haryana Rs 10,000 crore.
  
  The scheme requires power distribution utilities to reduce their aggregate technical & commercial losses to 15 per cent by 2018-19. Other measures include improving last-mile distribution, comprehensive metering, a separate feed for agriculture and procuring power from cheaper sources. The difference between average revenue realisation and the average cost of procurement will have to be brought down to zero by 2018-19. The state electricity regulatory commissions will also conduct quarterly tariff revisions.
  
• PM announces Rs. 80,000 cr package for all-round development of J&K
  Indian Prime Minister Narendra Modi on 7th November announced an 80,000 crore rupee package for all-round development of Jammu and Kashmir.
  
  Prime Minister Narendra Modi has said that government in the centre has set a target that not a single village across the country would remain without electricity by 2022.
  
  He inaugurated the 450 Mega Watt Baglihar Hydro Electric Power Project Stage-II constructed on river Chenab and laid the foundation stone for four-laning of Udhampur-Ramban and Ramban-Banihal sections of crucial Jammu-Srinagar National Highway at Chanderkote, Ramban in Jammu and Kashmir
  
  He said that, government is looking forward to generate unprecedented 175 gigawatts electricity through solar and wind energy. He also appealed to people to shift to the using of modern gadgets and save electricity as saving electricity is as important as generating it.
  
• WEF says, India positioned much more favourably than China in terms of growth in coming years
  According to World Economic Forum, India is positioned much more favourably than China in terms of growth in coming years. It said there is now a consensus among analysts that there are only a few bright spots in the global economy and India is one of them.
  
  Viraj Mehta, head of India and South Asia for World Economic Forum, said that India's growth accelerated this year to around 7.5 per cent.