14/9/2015 News in Media

Dear all,

INTERNATIONAL

India to nix tariffs for 42.5% of items traded with China under mega pact
India and China have agreed to remove import duties on close to half the goods traded between them under the proposed Regional Comprehensive Economic Partnership (RCEP) pact, a development that is likely to give the domestic industry sleepless nights.The RCEP countries — which include the 10-member Asean bloc, India, Japan, China, South Korea, New Zealand and Australia — reached a breakthrough on the initial offers for eliminating tariffs on goods at a meeting of trade ministers in Kuala Lumpur late last month.
http://www.thehindubusinessline.com/todays-paper/india-to-nix-tariffs-for-425-of-items-traded-with-china-under-mega-pact/article7649439.ece

Amidst manufacturing gloom, services shine
Manufacturing activity is in reverse gear in many of the world’s largest economies — the slowing Chinese economy is a case in point. In the US and the UK, the pace of growth has tapered compared with a year ago.On the contrary, the services sector is growing across the world’s leading economies. This dichotomy is corroborated by the Purchasing Managers’ Index (PMI) data, compiled by Markit, a global financial information service provider.
http://www.thehindubusinessline.com/todays-paper/amidst-manufacturing-gloom-services-shine/article7649437.ece

GST LAW

State FinMin panel to discuss model GST law
As part of the preparatory work for GST introduction, the Empowered Committee of State Finance Ministers will meet on Tuesday to discuss the draft of the model GST legislation that can be used by States.This is even as uncertainty looms over Parliament passage of the most critical Constitutional Amendment Bill to usher in dual GST regime in the country.Besides, the passage of Constitutional Amendment Bill by Parliament, the States will also be required to pass laws for ushering in State Goods and Services Tax (SGST) under this dual tax system. Indications are that the model legislation for SGST will be discussed at the meeting on Tuesday.The States will also be required to adopt an integrated GST law that would cover GST framework on inter-State transfer of goods and services. The Centre is also required to enact a law on central GST.
http://www.thehindubusinessline.com/todays-paper/tp-news/state-finmin-panel-to-discuss-model-gst-law/article7649458.ece

‘Speedy GST implementation will increase GDP growth’
Speedy interdiction of Goods and Services Tax (GST) will add to economic growth by about 2 per cent, according to Union Minister for Urban Development and Parliamentary Affairs M Venkaiah Naidu.Addressing newspersons at a press conference here on Sunday, Naidu said Indian economy was expected to clock around 7-8 per cent growth this year.“Introduction of GST will ensure an additional growth of 1.5-2 per cent,” he said.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/speedy-gst-implementation-will-increase-gdp-growth/article7649476.ece

ALUMINIUM INDUSTRY

Aluminium makers meet Jaitley, call for hike in import duty
Representatives of the domestic aluminium industry met Finance Minister Arun Jaitley on Sunday seeking government intervention and protection from cheaper imports.The meeting comes days after the Directorate-General of Safeguards recommended a safeguard duty on flat steel product imports which would bring a relief to the domestic industry.
http://www.thehindubusinessline.com/todays-paper/tp-news/aluminium-makers-meet-jaitley-call-for-hike-in-import-duty/article7649457.ece

LAND ACQUISITION

Land acquisition: ‘No State has complained about compensation’ Compensation has been a critical issue, besides social impact assessment in the entire land acquisition debate. Arvind Panagariya, Vice-Chairman, NITI Aayog, spoke to BusinessLine on raising the issue of Land Act 2013 with States in this context and that of acquiring rural and urban land parcels. Edited excerpts:

Compensation has been another critical issue, besides social impact assessment. Have you, in the recent meeting with the States, dealt with this? If yes, how far were the States willing to accommodate? Does the Land Act of 2013 set a floor on compensation? (Maharashtra reportedly had decided to give four times more compensation than the land as per the ready reckoner rate for acquiring land in urban areas, while land owners in rural areas would get five times more.)To my knowledge, no State has complained about the compensation in the 2013 Act as being excessive. As you mention, some States have chosen to go farther.
http://www.thehindubusinessline.com/todays-paper/tp-news/land-acquisition-no-state-has-complained-about-compensation/article7649459.ece

BANKING

Fed rate hike or not, Indian economy is unfazed: former RBI Deputy Governor
It is all about the big Fed and how India is positioned for a possible rate hike by it on September 17. Bloomberg TV India caught up with Subir Gokarn, former RBI Deputy Governor and presently a Director of Research at the Brookings Institution India, who has watched the economy through many twists and turns. Excerpts:

World economy is at a very critical junction. Where does the Indian economy stand? Is it ready for the inevitable Fed hike?
I think we can make a pretty significant contrast with the situation two years ago when we had the Taper Turbulence and the Indian economy took a huge beating, which is manifested in a variety of indicators, particularly the currency. The key difference between then and now is that the macro indicators are much healthier significantly as a result of commodity price dynamics and partly because of some steps that the government has taken in the past two years.
http://www.thehindubusinessline.com/todays-paper/tp-news/fed-rate-hike-or-not-indian-economy-is-unfazed-former-rbi-deputy-governor/article7649462.ece

IDBI Bank to flex arms to pump up business
IDBI Bank is drawing up an elaborate plan through which it will exert its rights on subsidiaries and institutions promoted by it to make them act as feeders for growing its business.Besides, the public sector bank wants to play to its strengths by offering project appraisal skills to other banks and start development financial institutions in some African countries in association with Export-Import Bank of India (Exim Bank) and local governments.
http://www.thehindubusinessline.com/todays-paper/tp-news/idbi-bank-to-flex-arms-to-pump-up-business/article7649463.ece

Falling interest rates: a concern for depositors
Readers’ responses to our article on the subject published last week (see ‘Financial Scene’ Monday, September 7 — “Don’t ignore depositors”) have predictably been large. That is quite understandable given that falling interest rates on bank deposits raises livelihood concerns for those having no other means to support them. Even for those who do not face an immediate threat — such as those who are in employment now — falling deposit interest rates is still a concern.Retirement is for everyone sooner or later. There would, no doubt, be very many challenges such as those relating to emotional and physical. But a financial crunch post-retirement is something to dread about. It will have ramifications on all aspects of retired life.
http://www.thehindu.com/todays-paper/tp-business/falling-interest-rates-a-concern-for-depositors/article7649656.ece

Microfinance firms lend Rs.16,000 cr in first quarter
The non-banking financial companies-microfinance institutions (NBFC-MFIs) in the country have disbursed microcredit of nearly Rs.16,000 crore during the first quarter ended June 30, 2015.As many as 52 NBFC-MFIs granted licence by RBI and members of Microfinance Institutions Network (MFIN), provided micro-credit of Rs.15,986 crore, marking an increase of 70 per cent over the previous quarter figure of Rs.9,399 crore. At the same time, the average loan disbursed per account also increased to Rs.17,848 from Rs.14,847.
http://www.thehindu.com/todays-paper/tp-business/microfinance-firms-lend-rs16000-cr-in-first-quarter/article7649651.ece

EXPORT

Jayant Sinha pitches for lower rates, making exports more competitive
Making a case for lowering of interest rates, Minister of State for Finance Jayant Sinha has said the Reserve Bank of India (RBI) should take into account various factors, including low inflation, while deciding on monetary policy stance.He also stressed on the need to make the exports more competitive by bringing down the cost of capital as also the cost of manufacturing.Stating that the country’s economic ‘growth is not at its potential’, Mr. Sinha said the RBI would certainly look into the factors such as negative wholesale inflation and low GDP deflator while ‘establishing its monetary policy.’
http://www.thehindu.com/todays-paper/tp-business/jayant-sinha-pitches-for-lower-rates-making-exports-more-competitive/article7649653.ece

POWER

The irony of power
It can happen only in India. Bengaluru, which boasts the tag of ‘IT capital of India’, suffers a crippling four-hour power cut every day, a state of affairs that prevails in other towns and cities. Ironically, at the same time, power companies are operating their thermal plants at less than two-thirds capacity — and not because of want of coal. It’s because State electricity boards (SEBs) and distribution utilities, given their precarious financial condition, are not willing to contract additional power to meet incremental demand. For the first time, Coal India (CIL), faced with mounting pithead stocks at its mines, is knocking on the doors of prospective buyers to ‘market’ coal. This is a scenario that neither CIL nor Piyush Goyal would have imagined barely a year ago when the minister for power set an ambitious target for CIL to double its output to a billion tonne in five years.
http://www.thehindubusinessline.com/todays-paper/tp-opinion/the-irony-of-power/article7649492.ece

TPCIL begins full commercial operations in Krishnapatnam
Thermal Powertech Corporation India (TPCIL), which owns and operates a coal-fired power plant in Krishnapatnam in Andhra Pradesh’s SPSR Nellore district, has successfully commenced full commercial operation, with the completion of its second and final 660-MW unit.The $1.5-billion coal-fired power plant, which has a total capacity of 1,320 MW, had completed its first 660-MW unit in February earlier this year.The plant is already supplying 500 MW power to Andhra Pradesh and Telangana Power Distribution Companies, under a 25-year power purchase agreement.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/tpcil-begins-full-commercial-operations-in-krishnapatnam/article7649508.ece

FPI

FPI outflow peaks in 14 days
Foreign investors have pulled out nearly Rs 7,000 crore from the capital markets in about two weeks mainly on account of a combination of global and domestic issues. This comes on top of a record net outflow of Rs 17,428 crore from equities last month. This was the highest net outflow by foreign portfolio investors (FPIs) in a single month since 1997.The segregated data prior to 1997 was not available. FPIs withdrew a net sum of Rs 6,109 crore from equities, while they pulled out Rs 773 crore from the debt markets during September 1-11, according to depositories data. Market experts attributed the huge outflows to sustained global risk-off trend along with concerns over economic slowdown in China and currency devaluation by the world’s most populated country.
http://www.deccanchronicle.com/150914/business-latest/article/fpi-outflow-peaks-14-days

INFRASTRUCTURE

Roads, power investments rise
New projects worth Rs. 1.2 lakh crore were announced in the first quarter of financial year 2015-16, up 48 per cent from the same period the previous year, analysis by The Hindu shows. Projects worth Rs. 1.5 lakh crore were completed in the first quarter of this year, up by 31 per cent over last year.Over the last week, the government has gone to great lengths to convey its success in getting stalled projects moving and also in boosting new investments, notably in the road sector.
http://www.thehindu.com/todays-paper/roads-power-investments-rise/article7649684.ece

AGRICULTURE

Oilmeals exports fall in August
The export of oilmeals during August 2015 is reported at just 91,834 tonnes against 1.57 lakh tonnes in August 2014, that is, a decline of 42 per cent. The overall export of oilmeals during April-August 2015 has declined by 33 per cent to 6.10 lakh tonnes from 9.15 lakh tonnes during the same period of last year, according to the Solvent Extractors’ Association of India.
http://www.thehindu.com/todays-paper/tp-business/oilmeals-exports-fall-in-august/article7649655.ece

STEEL INDUSTRY

SAIL plans to raise hot metal production
SAIL (Steel Authority of India Limited), a Maharatna public sector undertaking, is planning to scale up production of hot metal to 50 million tonnes by 2025-26. This will place the company amongst the top global steel producers in the world. The capacities of crude steel and saleable steel have been planned at 48 million tonnes and 46 million tonnes respectively. The hot metal capacity is expected to reach a level of 23.5 million tonnes by the end of 2015-16.In a letter to shareholders, Rakesh Singh, Secretary, Ministry of Steel and Chairman and MD (Additional Charge), SAIL said, the company had recorded its highest ever hot metal production of 15.413 million tonnes in 2014-15 registering a growth of 6.9 per cent over the previous financial year. Production of crude steel, at 13,909 million tonnes, showed an improvement of 2.5 per cent, he had stated .
http://www.thehindu.com/todays-paper/tp-business/sail-plans-to-raise-hot-metal-production/article7649646.ece

STATE

Project reports for Visakhapatnam, Vijayawada metros submitted
The detailed project reports for Vijayawada and Visakhapatnam metro projects were submitted by metro expert and consultant Sreedharan to Chief Minister N Chandrababu Naidu here recently, in presence of Union Urban Development Minister M Venkaiah Naidu.Later, the Union Minister and Chief Minister jointly addressed a press meet.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/project-reports-for-visakhapatnam-vijayawada-metros-submitted/article7649509.ece

Rs. 96.32 cr. for Vijayawada beautification
Chief Minister N. Chandrababu Naidu on Sunday said that Vijayawada would be beautified involving an expenditure of Rs. 96.32 crore.The focus will be on sprucing up as many as 14 roads measuring 40.63 km and beautifying the canals.Addressing a meeting here, Mr. Naidu said walking tracks, dividers, street lights and electrical wiring works had to be completed at the earliest.
http://www.thehindu.com/todays-paper/rs-9632-cr-for-vijayawada-beautification/article7649808.ece

Australian firms keen on investing in A.P.
Australia is a nation rich in natural resources and is similar to India in many aspects. It has a very rich northern State that receives most rainfall and there is plenty of land. If land and water is brought together, it can turn into the grain bowl, meeting the requirement of a large part of Indo-Pacific region.This would not threaten the food security of small farmers in the region. The cost of production of grain in Australia is higher because of the stringent quality standards.
http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/australian-firms-keen-on-investing-in-ap/article7649915.ece

Thermal Powertech starts operations in A.P.
Thermal Powertech Corporation India has commenced commercial operation with the completion of its second and final 660-MW unit at Krishnapatnam in Andhra Pradesh.
http://www.thehindu.com/todays-paper/tp-business/thermal-powertech-starts-operations-in-ap/article7649654.ece

Dumping duty imposed on Chinese float glass imports
The Finance Ministry has imposed definitive anti-dumping duty on certain float glass imports from China.This follows recommendations of the Designated Authority in the Commerce Ministry in its second sunset review investigations on certain float glass imports from China and Indonesia.The Revenue Department has now imposed an anti-dumping duty of $218 per tonne on certain float glass imports from China. This duty will be valid for five years.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/dumping-duty-imposed-on-chinese-float-glass-imports/article7649483.ece

Beer manufacturers may lose fizz as water scarcity hits Maharashtra
The powerful beer industry in Maharashtra could soon face water woes. Post a deficient South-West monsoon, the State government is thinking of drastically cutting down water supply, especially to industries in water-deficient areas such as Aurangabad.Manufacturing 1 litre of beer requires about 9 litres of water. All major beer manufacturers have plants in the Waluj and Chikalthana industrial areas of Aurangabad, managed by the Maharashtra Industrial Development Corporation (MIDC).
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/beer-manufacturers-may-lose-fizz-as-water-scarcity-hits-maharashtra/article7649479.ece

‘Healthcare BPO sector in India facing competition from U.S. and Philippines’
Players engaged in business process outsourcing (BPO) in healthcare sector in India are facing stiff competition from their Filipino counterparts, according to a recent joint study.“The Philippines and other low-cost locations are emerging as a big challenge to Indian BPO industry including the healthcare vertical,” pointed out the study —Medical Process Outsourcing in India — jointly conducted by The Associated Chambers of Commerce and Industry of India (Assocham) and global professional services organisation EY.
http://www.thehindu.com/todays-paper/tp-business/healthcare-bpo-sector-in-india-facing-competition-from-us-and-philippines/article7649649.ece

Centre dashes Telangana plan to cash in on food sop
The mileage that the TRS government had hoped to derive from the Centre’s National Food Security Scheme, set to be implemented from October 1, will not materialise.While the Telangana state government has made all arrangements to issue Food Security Cards with photographs of Chief Minister K. Chandrasekhar Rao and the Telangana government logo, the Centre has made it clear that only the logo devised by it has to be printed on the card.
http://www.deccanchronicle.com/150914/nation-current-affairs/article/centre-dashes-telangana-plan-cash-food-sop

Chancellors must be non-political
Universities feel that dynamic public personalities should be appointed as chancellors rather than political figures, which will turn the position into mere nominated posts of the government. Academics also feel that chancellors should be given more proactive roles in the administration of universities.The Telangana government had recently amended the existing legislations pertaining to the conventional varsities – the Telugu, Fine Arts, JNTU and Open universities. The government now has the power to appoint chancellors. Vice-chancellors will also be selected by the government from the list of names submitted by search committees.
http://www.deccanchronicle.com/150914/nation-current-affairs/article/chancellors-must-be-non-political

Air bag makers eye boost from new India road safety rules
The world’s largest air bag suppliers are setting up plants and ramping up capacity in India, eyeing a $2 billion opportunity thanks to tougher rules aimed at improving one of the world’s worst road-safety records. In India, a person is killed in a road accident every four minutes – 141,000 in 2014 – yet less than a third of the 2.6 million cars sold each year have air bags in this cost-conscious market. But a planned law that will impose crash test standards by 2017 is creating an opportunity for makers of safety equipment, as cars without air bags will achieve only the lowest safety ratings after tests. That, for the first time, will force consumers to directly consider the risks they run by buying cheap.
http://www.deccanchronicle.com/150914/business-autos/article/air-bag-makers-eye-boost-new-india-road-safety-rules

GLOBAL

Narendra Modi to take part in Facebook Q&A in US
Prime Minister Narendra Modi will visit the Facebook headquarters in California later this month at the invitation of the social media giant’s CEO Mark Zuckerberg. Mr Modi will have a townhall-style question-and-answer session at the Facebook headquarters on September 27.

The PM will be on a visit to Ireland and the US from September 23 to 29 during which he will address the United Nations General Assembly and also visit the Google headquarters in Silicon Valley.
http://www.deccanchronicle.com/150914/nation-current-affairs/article/pm-modi-zuckerberg-invite-questions

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