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Centre opens up coal sector, does away with end-use restriction
Updated: 09 Jan 2020, 12:12 AM IST
By Utpal Bhaskar.
This comes in the backdrop of India’s gross domestic product growth decelerating. Photo: Bloomberg
NEW DELHI : The Union cabinet on Wednesday approved opening up of coal mining and further dis investments, apart from deciding that the Centre will shoulder 60% of the expense for the North East Gas Grid projec. It also extended the validity period of mining lease clearances ending in 2020 by two years.
In an attempt to attract investments in coal mining, the Cabinet approved the promulgation of Mineral Laws (Amendment) Ordinance 2020. The ordinance allows coal mining by any company present in sectors other than steel and power, and does away with the captive end-use criteria. While the move will help create an efficient energy market, usher in competition and reduce coal imports, it may also bring an end to state-run Coal India Ltd’s (CIL) monopoly.
Despite having the world’s fourth largest coal reserves, India imported 235 million tonnes (mt) of coal last year, of which 135mt valued at ₹171,000 crore could have been met from domestic reserves, coal and mines minister Pralhad Joshi told reporters.
The move will also help India gain access to sophisticated technology for underground mining used by global miners. New Delhi’s move comes at a time when the window for fossil fuels is rapidly closing, and the global energy landscape evolving, with fundamental changes to the investment culture amid growing climate concerns.
“Under the Ordinance, requirement of previous approval in cases where allocation of blocks was made by Centre has been dispensed with to speed up the process of implementation of projects and ease of doing business," a government spokesperson said in a tweet.
It comes against the backdrop of India’s gross domestic product growth decelerating to a six-and-a-half-year-low of 4.5% in the September quarter amid slowing domestic and external demand.
The Centre has set a mining target of 1.5 billion tonnes of coal by 2020. Of this, 1 billion tonnes was to be from CIL and 500 million tonnes from non-CIL sources, in line with the government’s push to raise natural resources production to kickstart economic growth. This has now been revised down to 1 billion tonnes of coal by 2023-24.
“The government has been progressively liberalizing the coal sector over the last several months to attract new investments, and getting rid of this archaic end-use restriction was a key step. It is expected that the government will also address other procedural issues that add to time delays and upfront cost of developing a mine," Kameswara Rao, leader, energy, utilities and mining, PwC India, said in a statement.
As part of the NDA government’s disinvestment agenda, the Cabinet Committee on Economic Affairs gave ‘in-principle’ approval for strategic disinvestment of equity shareholding of Minerals & Metals Trading Corp. Ltd (49.78%), National Mineral Development Corp. Ltd (10.10%), MECON (0.68%), Bharat Heavy Electricals Ltd (0.68%) and two Odisha state government units—Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) (12.00%) and Odisha Mining Corp. (OMC) (20.47%) in Neelachal Ispat Nigam Ltd.
The government has set an ambitious disinvestment target of ₹1.05 trillion for FY20, of which it has managed to garner only ₹17,364 crore so far.
Centre opens up coal sector, does away with end-use restriction
Updated: 09 Jan 2020, 12:12 AM IST
By Utpal Bhaskar.
- The Centre also decided to provide ₹5,559 crore for the construction of the North East Gas Grid project
- The CCEA gave ‘in-principle’ approval for strategic disinvestment in several public sector firms
This comes in the backdrop of India’s gross domestic product growth decelerating. Photo: Bloomberg
NEW DELHI : The Union cabinet on Wednesday approved opening up of coal mining and further dis investments, apart from deciding that the Centre will shoulder 60% of the expense for the North East Gas Grid projec. It also extended the validity period of mining lease clearances ending in 2020 by two years.
In an attempt to attract investments in coal mining, the Cabinet approved the promulgation of Mineral Laws (Amendment) Ordinance 2020. The ordinance allows coal mining by any company present in sectors other than steel and power, and does away with the captive end-use criteria. While the move will help create an efficient energy market, usher in competition and reduce coal imports, it may also bring an end to state-run Coal India Ltd’s (CIL) monopoly.
Despite having the world’s fourth largest coal reserves, India imported 235 million tonnes (mt) of coal last year, of which 135mt valued at ₹171,000 crore could have been met from domestic reserves, coal and mines minister Pralhad Joshi told reporters.
The move will also help India gain access to sophisticated technology for underground mining used by global miners. New Delhi’s move comes at a time when the window for fossil fuels is rapidly closing, and the global energy landscape evolving, with fundamental changes to the investment culture amid growing climate concerns.
“Under the Ordinance, requirement of previous approval in cases where allocation of blocks was made by Centre has been dispensed with to speed up the process of implementation of projects and ease of doing business," a government spokesperson said in a tweet.
It comes against the backdrop of India’s gross domestic product growth decelerating to a six-and-a-half-year-low of 4.5% in the September quarter amid slowing domestic and external demand.
The Centre has set a mining target of 1.5 billion tonnes of coal by 2020. Of this, 1 billion tonnes was to be from CIL and 500 million tonnes from non-CIL sources, in line with the government’s push to raise natural resources production to kickstart economic growth. This has now been revised down to 1 billion tonnes of coal by 2023-24.
“The government has been progressively liberalizing the coal sector over the last several months to attract new investments, and getting rid of this archaic end-use restriction was a key step. It is expected that the government will also address other procedural issues that add to time delays and upfront cost of developing a mine," Kameswara Rao, leader, energy, utilities and mining, PwC India, said in a statement.
As part of the NDA government’s disinvestment agenda, the Cabinet Committee on Economic Affairs gave ‘in-principle’ approval for strategic disinvestment of equity shareholding of Minerals & Metals Trading Corp. Ltd (49.78%), National Mineral Development Corp. Ltd (10.10%), MECON (0.68%), Bharat Heavy Electricals Ltd (0.68%) and two Odisha state government units—Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) (12.00%) and Odisha Mining Corp. (OMC) (20.47%) in Neelachal Ispat Nigam Ltd.
The government has set an ambitious disinvestment target of ₹1.05 trillion for FY20, of which it has managed to garner only ₹17,364 crore so far.
Centre opens up coal sector, does away with end-use restriction
Never mind got it :
India emerges as Asia's leader in socially beneficial markets
Planned Social Stock Exchange to connect impact investors with entrepreneurs
MAKOTO KAJIWARA, Nikkei Commentator
January 08, 2020 12:27 JST
Narayana Multispeciality Hospital in Mysore, India: Narayana has emerged as one of the country's successful social companies. (Photo by Takuya Imai)
TOKYO -- India is fast overtaking countries like Japan and South Korea in creating ways for socially minded entrepreneurs to raise funds from impact investors. The aim is to get more capital to companies that bring social benefits, like education and health care, many of which are thriving. Indian hospital operator Narayana Health is one of them. While BSE Sensex, the country's benchmark equity index, has dithered with gains of less than 10% since October, Narayana's stock has soared over 50%. The company is considered one of the leading social businesses in India, meaning it grows through contributing to society. Devi Shetty, founder and primary physician for the late Noble Peace Prize Laureate Mother Teresa, keeps a plaque in his office that reads: "The world's biggest problems are also the world's biggest business opportunities." Known for inexpensive treatment, heart transplants at Narayana hospitals cost a fraction of those performed in the U.S. Since debuting on the Indian stock market in 2016, it has used the proceeds from its initial public offering to buy more beds for impoverished patients. Over the past three years, revenue has jumped 78% and profit threefold. The Indian economy is slowing due to a credit crunch caused by ailing lenders, with investors shifting their money from stocks highly attuned to economic trends in favor of "defensive" stocks that are more resistant to downturns. With patients still streaming to Narayana hospitals, the company is an attractive option for prudent investors. The government has a plan to funnel even more investors, especially impact investors, to companies like Narayana. In 2019, it proposed a Social Stock Exchange, which would allow investors to buy shares in social enterprises. The aim was to encourage other companies to imitate Narayana's successful model.
Preparations are now underway to open the exchange. While listing requirements will likely be easier than in existing stock markets, companies may be required to be highly transparent to be listed. Experts could also be called upon to rate companies' social contributions. The SSE is expected to be up and running around the end of 2020 at the earliest. "We believe there is going to be a lot of money that will move in from India and from the world, looking [to make] an impact," said Vineet Rai, a Mumbai-based impact investor serving as chairman of Aavishkaar Group and a member of the committee tasked with designing the SSE. The outstanding balance of global impact investment topped $500 billion at the end of 2018, according to one estimate. Other countries in the region have recognized the need for a financial entity like the SSE, but have yet to act. In 2013, the South Korean government engaged in "studies to create a financial market for fostering social enterprises." It concluded that capital market infrastructure was needed after analyzing the trends in social businesses. But six years later, there is still no SSE in South Korea. "We couldn't translate social values, such as job creation, into investment information," said a person involved in the studies. And investors are reluctant to take on risk before understanding a company's value.
In Japan there are companies trying to meet demand for a social market, but the lack of broader financial infrastructure worries entrepreneurs. Life is Tech, an educational venture founded in 2010, is seeking a "social IPO" to raise a large amount of funds by stressing the social value of its work. The Tokyo-based company has raised 2.5 billion yen ($22.84 million) through three new share issues by quantifying and promoting the social value it creates. The company teaches programming skills to junior and high school students to improve digital literacy. It has educated about 40,000 students, and also cooperates with municipal governments to revitalize local economies by producing IT-savvy young people. But founder and CEO Yusuke Mizuno worries that social IPOs can backfire. "If you offer shares to the public, you'll have shareholders who don't understand your social mission," he said. "You may see your corporate philosophy diluted under market pressure." A considerable number of socially minded entrepreneurs give up on plans to expand their operations through IPOs, according to Mizuno. An SSE acts as a dedicated place where social entrepreneurs can raise funds from the market. The Tokyo Stock Exchange will undergo a major reorganization in 2022, but the current plans do not include a social market. India's nominal gross domestic product is set to surpass that of Japan in 2029, according to a forecast from the Japan Center for Economic Research, making it the world's third-largest economy. When it comes to creating financial vehicles for companies and markets to engage on social issues, India is already set to emerge as Asia's front-runner.
India emerges as Asia's leader in socially beneficial markets
Let this be India’s goal for this decade — $5,000 per capita income by 2030
Happy New Decade! Ten years is a long time in an individual’s life, less so for a country the size of India. Incidentally, the current year 2020 is where a lot of people felt India will become a superpower (remember all those Vision 2020 and Superpower by 2020 presentations)? While that has not happened, there has been significant change.
Per capita GDP, one of the most important indicators of standard of living, doubled from around $1,000 to $2,000 per person, an average growth rate of around 7.2% per annum. This is real wealth in the hands of Indians, and we are all consuming more than we did a decade ago. There is no political suggestion in these achievements. In the last decade we had Congress as well as BJP governments, so whatever has happened is a combined contribution of the two. We could have grown faster. There is still a long way to go to before we reach developed country levels like that of the USA ($60,000 per person) or even China ($10,000 per person). But we can now at least aspire to $5,000 per person by 2030, a respectable level, which will mean we are no longer a poor country. Take it to a $12,000 per person number by 2040, and we will become a semi-developed country, something many of us might be lucky to see in our lifetime. Rather than ‘superpower’ hyperbole, this can be our aspiration for India for the next two decades: $5,000 per capita GDP by 2030, $12,000 per capita GDP by 2040.
This doesn’t sound sexy as ‘next superpower’ does, but if achieved, this will dramatically change the life of Indians. Per capita GDP apart, compared to 2010, we have better roads, better airports and almost everyone has a mobile phone. Most people have internet connectivity. Abject poverty is down, education and health indicators are higher.
While the overall picture of the last decade was decent, as we enter 2020, we face a bleak economy. The average growth rate in the past decade was 7.2%, but the latest quarterly data shows the number at 4.5%. The $5,000 per person by 2030 aspiration requires an annual GDP growth of 9.6%. This is achievable if we focus and make it the number one priority for the nation. A collective goal for the next 10 years is to make the average Indian earn 2.5x more than s/he does now (or from $2000 to $5000).
This goal requires a combination of things to be in place. Investor confidence; simple, business-friendly policies; end of bullying by regulators/bureaucrats/taxmen/politicians who love to assert (or abuse) their power; feeling of harmony and safety in the country; stable rates/ levies/ taxes that do not change say every time the GST council meets in Goa (plays havoc with spreadsheet projections of investors).
Infrastructure is a given requirement too. Airports that don’t need runway repairs every three months, internet connections that are stable and are not shut down on a regular basis, electricity and water are absolute basics for any business-friendly environment in the country.
These factors have been mentioned and analysed before. The solutions exist. The experts are there. What has been lacking is focus and priority. Somewhere, we as Indians and almost any government in the Centre is never convinced that growing Indian incomes is a worthwhile, top-priority goal.
Religion gets us going, caste gets us going, personality cults of leaders get us going. But a burning desire to make every Indian affluent is not something that gets us passionate. Maybe the government feels the people don’t care for it, so why bother? If slapping Pakistan or asserting Hindu supremacy makes us happier than making giving every Indian a decent house, education and healthcare, then don’t we deserve to stay poor?
Freeing the economy requires the government and its babus to let go of their power to a certain extent. They don’t want to and won’t unless we people push them towards it. If we as citizens demand economic growth as top priority, any government will have no choice but to focus on the economy as well.
Let us welcome the next decade with one firm resolve: $5,000 per capita by 2030. A goal like this is better to communicate to Indians, as it sounds more personal than a macro $5 trillion economy. In today’s money, that is around Rs 30,000/month per person or around a lakh per family. This is an amount that can get you a good, dignified and civilised life in India. This is an amount that is achievable.
Let us resolve that in the next decade, we will keep reminding ourselves and the government, to make the economy a top priority. Let’s be humble and shun superpower rhetoric. Let’s have a better, achievable and worthwhile goal. To give the average Indian a dignified life, or a per capita income of $5,000 by 2030.
Let this be India’s goal for this decade — $5,000 per capita income by 2030
Happy New Decade! Ten years is a long time in an individual’s life, less so for a country the size of India. Incidentally, the current year 2020 is where a lot of people felt India will become a superpower (remember all those Vision 2020 and Superpower by 2020 presentations)? While that has not happened, there has been significant change.
Per capita GDP, one of the most important indicators of standard of living, doubled from around $1,000 to $2,000 per person, an average growth rate of around 7.2% per annum. This is real wealth in the hands of Indians, and we are all consuming more than we did a decade ago. There is no political suggestion in these achievements. In the last decade we had Congress as well as BJP governments, so whatever has happened is a combined contribution of the two. We could have grown faster. There is still a long way to go to before we reach developed country levels like that of the USA ($60,000 per person) or even China ($10,000 per person). But we can now at least aspire to $5,000 per person by 2030, a respectable level, which will mean we are no longer a poor country. Take it to a $12,000 per person number by 2040, and we will become a semi-developed country, something many of us might be lucky to see in our lifetime. Rather than ‘superpower’ hyperbole, this can be our aspiration for India for the next two decades: $5,000 per capita GDP by 2030, $12,000 per capita GDP by 2040.
This doesn’t sound sexy as ‘next superpower’ does, but if achieved, this will dramatically change the life of Indians. Per capita GDP apart, compared to 2010, we have better roads, better airports and almost everyone has a mobile phone. Most people have internet connectivity. Abject poverty is down, education and health indicators are higher.
While the overall picture of the last decade was decent, as we enter 2020, we face a bleak economy. The average growth rate in the past decade was 7.2%, but the latest quarterly data shows the number at 4.5%. The $5,000 per person by 2030 aspiration requires an annual GDP growth of 9.6%. This is achievable if we focus and make it the number one priority for the nation. A collective goal for the next 10 years is to make the average Indian earn 2.5x more than s/he does now (or from $2000 to $5000).
This goal requires a combination of things to be in place. Investor confidence; simple, business-friendly policies; end of bullying by regulators/bureaucrats/taxmen/politicians who love to assert (or abuse) their power; feeling of harmony and safety in the country; stable rates/ levies/ taxes that do not change say every time the GST council meets in Goa (plays havoc with spreadsheet projections of investors).
Infrastructure is a given requirement too. Airports that don’t need runway repairs every three months, internet connections that are stable and are not shut down on a regular basis, electricity and water are absolute basics for any business-friendly environment in the country.
These factors have been mentioned and analysed before. The solutions exist. The experts are there. What has been lacking is focus and priority. Somewhere, we as Indians and almost any government in the Centre is never convinced that growing Indian incomes is a worthwhile, top-priority goal.
Religion gets us going, caste gets us going, personality cults of leaders get us going. But a burning desire to make every Indian affluent is not something that gets us passionate. Maybe the government feels the people don’t care for it, so why bother? If slapping Pakistan or asserting Hindu supremacy makes us happier than making giving every Indian a decent house, education and healthcare, then don’t we deserve to stay poor?
Freeing the economy requires the government and its babus to let go of their power to a certain extent. They don’t want to and won’t unless we people push them towards it. If we as citizens demand economic growth as top priority, any government will have no choice but to focus on the economy as well.
Let us welcome the next decade with one firm resolve: $5,000 per capita by 2030. A goal like this is better to communicate to Indians, as it sounds more personal than a macro $5 trillion economy. In today’s money, that is around Rs 30,000/month per person or around a lakh per family. This is an amount that can get you a good, dignified and civilised life in India. This is an amount that is achievable.
Let us resolve that in the next decade, we will keep reminding ourselves and the government, to make the economy a top priority. Let’s be humble and shun superpower rhetoric. Let’s have a better, achievable and worthwhile goal. To give the average Indian a dignified life, or a per capita income of $5,000 by 2030.
Let this be India’s goal for this decade — $5,000 per capita income by 2030
Infrastructure boom: Is India on the verge of an infra boom?
By R Sriram, ET Bureau | Jan 10, 2020, 08.32 AM IST
Pic: Flyover being buit over the Durgam Cheruvu freshwater lake, Hyderabad
The grim news about the economy just got grimmer. Advance GDP estimates for FY20 released on Monday show that growth this year may plunge to an 11-year low of 5% with manufacturing expected to grow for the full year at a mere 2%, while construction is expected to crawl at 3.2%.
With the first half of FY20 cumulative growth at 4.8%, advance estimates are actually assuming only a marginal improvement in the second half figure. While there are good chances of a recovery in FY21 — and yes, there are green shoots visible even as you are reading this — the economy also appears to be plagued by a lot of deep problems related to financing, credit flow, household debt and lack of substantive, meaningful rise in disposable income in the past few years. Low inflation, it appears, is killing us. Or, so we are told, never mind the fact that all of us, especially the poor, have benefited from low prices in the past few years.
Amidst all this sea of troubles, there are some islands that appear to offer hope of revival in the broader economy. Commercial realty continues to boom — it had its best ever year in 2019 — retail lending, including home loans, is still strong and passenger carmakers appear to have put the worst behind them. The Reserve Bank of India governor Shaktikanta Das has talked openly about green shoots in the economy and referred recently to a central bank study showing an increase in investment in fixed assets by manufacturing companies in FY20.
Das told an ET NOW summit in Mumbai last month that about 1,500 companies deployed about 45.6% of their funds in fixed assets in the first half ended September 2019 compared with 18.9% in the same period of FY19.
Now, this in itself may not be a strong indication of revival of investment demand in the economy. Given the state of corporate balance sheets, the extent of deleveraging required and the tempting option of buying assets from the bankruptcy process instead of expensive greenfield investments, the economy may continue to be starved of major private sector manufacturing investments for at least another couple of years except for ongoing projects.
The era of big-ticket greenfield investments in metals and refining may be over. Smaller and medium sized projects, spurred by corporate tax cuts, are more likely.
But one area where there has been a burst of activity is infrastructure and this is where government policies could spur investments. Late last month, the government released the National Infrastructure Pipeline (NIP), a detailed sector-by-sector study and compilation of infrastructure projects up to FY25. The release of the report and the headline number of investments of Rs 102 lakh crore generated a lot of excitement. An erroneous impression was created in some quarters that these are all new investments and that more than Rs 100 lakh crore was going to be spent on new projects in the next five years. That’s clearly not the case at all as a detailed study of the government press release makes clear.
About 42% of the projects in the NIP are under implementation, which means construction work is already going on. Another 19% is under a development stage, while a big 31% is still in the conceptual stage. Some projects may not see the light of day, or may be junked, or postponed to beyond 2025.
No, the big news in infrastructure is not the NIP, which is a good, comprehensive and transparent document of intent and progress. The big news has been in the making for the last 18 months or so, both in terms of policies and implementation. Take a look:
1) Privatisation of airports is gathering pace. Six airports have already been privatised and civil aviation minister Hardeep Puri is on record saying that privatisation of six more will be done soon. The Zurich International Airport has just won the bid to build a brand new airport for Delhi, while working on a spanking new airport for Mumbai is going on.
2) Big changes in city gas distribution. IndianOil Corporation, Adani Gas, HPCL have won bids to distribute compressed natural gas to automobile owners and piped gas to households in a majority of cities. The 10th round of city gas distribution bids will cover 55-60% of Indian cities. “It appears that economist analysts are missing the retail gas revolution set to sweep the country,” infra expert Vinayak Chatterjee of Feedback Infra said in a Twitter post on December 20. He estimates an investment of Rs 4 lakh crore in pipelines and support infrastructure.
3) The Mumbai-Nagpur super expressway received full funding from banks of Rs 28,000 crore and work is going on. Much of the infrastructure for Mumbai, estimated to top Rs 1lakh crore, is also going on despite change in the government. Some projects should also get completed by the end of this year.
4) Indian Railways’ plan to allow private train operators on nearly 150 routes and the freeing up of coal mining completely for the private sector is another bold move that could galvanise private investment in these areas. Of course, a lot depends on terms and conditions set by the government, especially in private train operations, and easy funding options for debt-weary private sector companies would be crucial. But no one can deny that these are important reforms.
Banks have been shying away from infra funding and it is very difficult to blame them given all that's happened in the past few years. But a new set of investors and financiers have appeared on the horizon in the form of JICA (Japan International Cooperation Agency), Asian Infrastructure Investment Bank, our very own National Investment, and Infrastructure Fund (NIIF) can held bridge the shortfall created by banks’ reluctance and the absence of a vibrant bond market.
Problems remain and challenges abound. Especially in a country where much of decision-making on these issues is mired in petty politics and depressing red-tapism. An infra boom is not guaranteed and nor is it going to be easy. But the building blocks are being put in place and the country should see much better infrastructure creation in the next 5-10 years than in the past decade.
infrastructure boom: Is India on the verge of an infra boom? - The Economic Times
By R Sriram, ET Bureau | Jan 10, 2020, 08.32 AM IST
Pic: Flyover being buit over the Durgam Cheruvu freshwater lake, Hyderabad
The grim news about the economy just got grimmer. Advance GDP estimates for FY20 released on Monday show that growth this year may plunge to an 11-year low of 5% with manufacturing expected to grow for the full year at a mere 2%, while construction is expected to crawl at 3.2%.
With the first half of FY20 cumulative growth at 4.8%, advance estimates are actually assuming only a marginal improvement in the second half figure. While there are good chances of a recovery in FY21 — and yes, there are green shoots visible even as you are reading this — the economy also appears to be plagued by a lot of deep problems related to financing, credit flow, household debt and lack of substantive, meaningful rise in disposable income in the past few years. Low inflation, it appears, is killing us. Or, so we are told, never mind the fact that all of us, especially the poor, have benefited from low prices in the past few years.
Amidst all this sea of troubles, there are some islands that appear to offer hope of revival in the broader economy. Commercial realty continues to boom — it had its best ever year in 2019 — retail lending, including home loans, is still strong and passenger carmakers appear to have put the worst behind them. The Reserve Bank of India governor Shaktikanta Das has talked openly about green shoots in the economy and referred recently to a central bank study showing an increase in investment in fixed assets by manufacturing companies in FY20.
Das told an ET NOW summit in Mumbai last month that about 1,500 companies deployed about 45.6% of their funds in fixed assets in the first half ended September 2019 compared with 18.9% in the same period of FY19.
Now, this in itself may not be a strong indication of revival of investment demand in the economy. Given the state of corporate balance sheets, the extent of deleveraging required and the tempting option of buying assets from the bankruptcy process instead of expensive greenfield investments, the economy may continue to be starved of major private sector manufacturing investments for at least another couple of years except for ongoing projects.
The era of big-ticket greenfield investments in metals and refining may be over. Smaller and medium sized projects, spurred by corporate tax cuts, are more likely.
But one area where there has been a burst of activity is infrastructure and this is where government policies could spur investments. Late last month, the government released the National Infrastructure Pipeline (NIP), a detailed sector-by-sector study and compilation of infrastructure projects up to FY25. The release of the report and the headline number of investments of Rs 102 lakh crore generated a lot of excitement. An erroneous impression was created in some quarters that these are all new investments and that more than Rs 100 lakh crore was going to be spent on new projects in the next five years. That’s clearly not the case at all as a detailed study of the government press release makes clear.
About 42% of the projects in the NIP are under implementation, which means construction work is already going on. Another 19% is under a development stage, while a big 31% is still in the conceptual stage. Some projects may not see the light of day, or may be junked, or postponed to beyond 2025.
No, the big news in infrastructure is not the NIP, which is a good, comprehensive and transparent document of intent and progress. The big news has been in the making for the last 18 months or so, both in terms of policies and implementation. Take a look:
1) Privatisation of airports is gathering pace. Six airports have already been privatised and civil aviation minister Hardeep Puri is on record saying that privatisation of six more will be done soon. The Zurich International Airport has just won the bid to build a brand new airport for Delhi, while working on a spanking new airport for Mumbai is going on.
2) Big changes in city gas distribution. IndianOil Corporation, Adani Gas, HPCL have won bids to distribute compressed natural gas to automobile owners and piped gas to households in a majority of cities. The 10th round of city gas distribution bids will cover 55-60% of Indian cities. “It appears that economist analysts are missing the retail gas revolution set to sweep the country,” infra expert Vinayak Chatterjee of Feedback Infra said in a Twitter post on December 20. He estimates an investment of Rs 4 lakh crore in pipelines and support infrastructure.
3) The Mumbai-Nagpur super expressway received full funding from banks of Rs 28,000 crore and work is going on. Much of the infrastructure for Mumbai, estimated to top Rs 1lakh crore, is also going on despite change in the government. Some projects should also get completed by the end of this year.
4) Indian Railways’ plan to allow private train operators on nearly 150 routes and the freeing up of coal mining completely for the private sector is another bold move that could galvanise private investment in these areas. Of course, a lot depends on terms and conditions set by the government, especially in private train operations, and easy funding options for debt-weary private sector companies would be crucial. But no one can deny that these are important reforms.
Banks have been shying away from infra funding and it is very difficult to blame them given all that's happened in the past few years. But a new set of investors and financiers have appeared on the horizon in the form of JICA (Japan International Cooperation Agency), Asian Infrastructure Investment Bank, our very own National Investment, and Infrastructure Fund (NIIF) can held bridge the shortfall created by banks’ reluctance and the absence of a vibrant bond market.
Problems remain and challenges abound. Especially in a country where much of decision-making on these issues is mired in petty politics and depressing red-tapism. An infra boom is not guaranteed and nor is it going to be easy. But the building blocks are being put in place and the country should see much better infrastructure creation in the next 5-10 years than in the past decade.
infrastructure boom: Is India on the verge of an infra boom? - The Economic Times
One nation, one ration card: Inside food ministry's ambitious scheme to make ration cards portable
By Prerna Katiyar, ET Bureau | Updated: Nov 17, 2019, 09.55 AM IST
Representative Image.
Record-keeping by hand is back at this “automated” fair price shop in Bangur, a dense Kolkata suburb, ever since its electronic point-of-sale (ePoS) machine broke down and had to be sent for repair.
Keeping an eye on the weighing scale while giving beneficiaries their quotas of gom (wheat) and chaal (rice), Lakshmi Kant Aich, who has been running the ration shop for decades, is making notes about the transactions on a booklet.
However, the absence of an ePoS device is slowing down the process. One beneficiary, Sanat Kumar Saha, is here to link his Aadhaar to his ration card through a biometric verification facility on the device. He goes back disappointed.
Aich says though the government has made ePoS machines mandatory, dealers are facing poor connectivity and frequent device breakdowns.
His shop is one of the 17,157 automated fair price shops in West Bengal with an electronic record keeping and point-of-sale device, while the remaining 3,649 shops have yet to be automated.
Ration insecurity
At these fair price shops, numbering nearly 5.35 lakh across India, 23 crore ration card holders can every month buy up to 5 kg of rice at Rs 3/kg, wheat at Rs 2/kg and coarse grains at Rs 1/kg as mandated under the National Food Security Act passed in 2013.
The central and state governments coordinate this complex public distribution system. While the Centre allocates and transports the foodgrain from Food Corporation of India godowns to the ration shops, the onus of ensuring that right beneficiaries get the subsidised foodgrain falls on the states and Union territories. They identify eligible households, issue ration cards and licences to dealers and also tackle complaints.
But in this entire process, put in place to ensure no one goes hungry, there has been a losing side too: millions of migrants, who move within their home states (intra-state) and to other states (inter-state) to earn a livelihood.
Since their ration cards are linked to the places where they used to live, these migrants have to apply for new ration cards at their new locations if they want to buy subsidised food grain. Many do not, deterred by the long process, denting the government’s efforts to ensure food security for all (the National Food Security Act covers nearly 80 crore people). Ensuring that migrants, numbering nearly 14 crore (according to the 2011 Census), get food grain from ration shops at their new location remains a big challenge.
Portable solution
The challenge for migrant workers to buy ration may change if the food and public distribution ministry’s One Nation One Ration Card scheme to make ration cards portable gets going, with biometric verification and ePoS machines acting as the lynchpins. Under this initiative, which is expcted to be rolled out across India by the next financial year, any migrant ration card holder will be able to buy subsidised food grain from any fair price shop in India without the need to obtain a new ration card for the new location. This will reform the current rule under which a beneficiary could buy ration only from a nearby shop linked to the ration card.
The ministry has already launched intra-state ration card portability in 11 states and inter-state portability between Andhra Pradesh and Telangana, Gujarat and Maharashtra, Haryana and Rajasthan and Karnataka and Kerala. This means a ration card holder from Gujarat can not only buy his stock from any of the ration shops in his state but also from Maharashtra.
One Nation One Ration Card would offer public distribution system benefits from any of the ration shops with the help of a single digital card linked to the beneficiary’s Aadhaar. “The scheme, when launched pan-India, will be a big relief for migrant labourers, daily wagers and the poor in general. We have already launched pilot projects in some clusters,” Ram Vilas Paswan, minister for consumer affairs, food & public distribution, told ET Magazine.
But food security experts say that before the big rollout of the scheme, basic requirements remain unmet. “All fair price shops would need ePoS devices for seamless biometric authentication. Additionally, getting the current location of the migrant worker to avoid duplication is another challenge,” says Sandip Das, a senior consultant with Indian Council for Research on International Economic Relations (ICRIER), a Delhibased think tank.
According to food ministry data, as of now, 4.37 lakh (nearly 82%) of the 5.35 lakh fair price shops have ePoS devices. Transactions on these devices are fool-proof as dealers such as Aich in Kolkata do not have to keep the record manually. The devices also check for duplication of ration card holders.
While Andhra Pradesh, Gujarat, Haryana, Jammu & Kashmir and Maharashtra have automated all their fair price shops, few most ration shops in Bihar and Uttarakhand and none in Arunachal Pradesh, Manipur, Meghalaya, Mizoram and Nagaland have ePoS devices, delaying the quick rollout of the portability plan. In Bihar, which sees a lot of labour migration, only 6,371 of the 41,483 fair price shops have ePoS devices.
Union food secretary Ravi Kant says the remaining ration shops will get ePoS devices shortly. “However, automating some fair price shops in remote areas may be a challenge,” he tells ET Magazine.
The other challenge is ending duplication of ration cards, whereby a beneficiary is denied food grain since someone else took away the quota using a fake card. To tackle this, Kant says the government is setting up a central repository of all ration cards and only those beneficiaries whose names are in the database after de-duplication would be able to use ration card portability.
Under the scheme, the existing ration card of a beneficiary remains valid under the portability plan since card data and entitlements are maintained in the person’s home state. But through the central repository the beneficiary’s state will be able to fetch the data from its server after biometric authentication.
“More than 1,000 migrant workers from Andhra Pradesh have bought subsidised ration in Telangana every month since the scheme was launched in August,” says a senior official at the food and public distribution department.
For the scheme to be seamless, the government will have to allocate food grain quota to each state on a dynamic basis based on the off take volumes. “The government will have to make fresh estimates for food grain required to meet the demand due to seasonal migration and fluctuation in demand based on movement of labourers,” says Das of ICRIER.
Many workers from Uttar Pradesh and Bihar move to Punjab and Haryana during the crop harvesting season only to return home within a few months. As of now, the Centre allots food grain to a state according to a district-wise requirement based on the number of ration card holders and previous year’s allocation.
A top official at the Food Corporation of India (FCI), which supplies subsidised food grain to the shops from its 2,100-odd godowns, says there is no need to build fresh storage facility for the ration card portability scheme. “We have sufficient capacity to cater to any need. We maintain three to four months of buffer stock in every state based on specific allocation requirement. Otherwise too, we have surplus stock and paddy procurement has also started,” says RP Singh, executive director procurement & sales at FCI.
In 2015, the Rajasthan government tried another experiment: letting Future Group run some fair price shops in the state. Under the arrangement, India’s largest retailer will get to manage 5,000 of the nearly 26,745 fair price shops in the state. The company is also giving a facelift to ration shops in West Bengal.
DBT vs Portability
Though ration card portability plans to unify fair price shops across India, the government has done away with selling subsidised food grain in Chandigarh and Puducherry — both Union territories. Since 2015, ration card holders there have been receiving direct benefit transfer, where cash equivalent of the subsidy is transferred to the bank accounts of eligible households, enabling them to purchase items of their choice from the market. The scheme was also partially launched in Dadar & Nagar Haveli in 2016. “One Nation One Ration Card as a concept is novel but direct benefit transfer is the way forward as recommended by the high-level committee chaired by [former Union minister] Shanta Kumar,” says Das.
“There is no logic in giving food grain under PDS to food-surplus and infrastructurally better-off states such as Punjab and Haryana. It is time the government shifts to direct benefit transfer in such regions,” says former agriculture secretary Siraj Hussain.
The panel on reforming FCI had, in 2015, recommended a gradual introduction of cash transfers in public distribution system, starting with cities with more than 10 lakh population, extending it to grain-surplus states and then giving an option to deficit states to opt for cash or subsidy. However, even with direct benefit transfer, last-mile installation and maintenance of points of sale and seeding Aadhaar and bank account details of beneficiaries remain a prerequisite.
One nation, one ration card: Inside food ministry's ambitious scheme to make ration cards portable
By Prerna Katiyar, ET Bureau | Updated: Nov 17, 2019, 09.55 AM IST
Representative Image.
Record-keeping by hand is back at this “automated” fair price shop in Bangur, a dense Kolkata suburb, ever since its electronic point-of-sale (ePoS) machine broke down and had to be sent for repair.
Keeping an eye on the weighing scale while giving beneficiaries their quotas of gom (wheat) and chaal (rice), Lakshmi Kant Aich, who has been running the ration shop for decades, is making notes about the transactions on a booklet.
However, the absence of an ePoS device is slowing down the process. One beneficiary, Sanat Kumar Saha, is here to link his Aadhaar to his ration card through a biometric verification facility on the device. He goes back disappointed.
Aich says though the government has made ePoS machines mandatory, dealers are facing poor connectivity and frequent device breakdowns.
His shop is one of the 17,157 automated fair price shops in West Bengal with an electronic record keeping and point-of-sale device, while the remaining 3,649 shops have yet to be automated.
Ration insecurity
At these fair price shops, numbering nearly 5.35 lakh across India, 23 crore ration card holders can every month buy up to 5 kg of rice at Rs 3/kg, wheat at Rs 2/kg and coarse grains at Rs 1/kg as mandated under the National Food Security Act passed in 2013.
The central and state governments coordinate this complex public distribution system. While the Centre allocates and transports the foodgrain from Food Corporation of India godowns to the ration shops, the onus of ensuring that right beneficiaries get the subsidised foodgrain falls on the states and Union territories. They identify eligible households, issue ration cards and licences to dealers and also tackle complaints.
But in this entire process, put in place to ensure no one goes hungry, there has been a losing side too: millions of migrants, who move within their home states (intra-state) and to other states (inter-state) to earn a livelihood.
Since their ration cards are linked to the places where they used to live, these migrants have to apply for new ration cards at their new locations if they want to buy subsidised food grain. Many do not, deterred by the long process, denting the government’s efforts to ensure food security for all (the National Food Security Act covers nearly 80 crore people). Ensuring that migrants, numbering nearly 14 crore (according to the 2011 Census), get food grain from ration shops at their new location remains a big challenge.
Portable solution
The challenge for migrant workers to buy ration may change if the food and public distribution ministry’s One Nation One Ration Card scheme to make ration cards portable gets going, with biometric verification and ePoS machines acting as the lynchpins. Under this initiative, which is expcted to be rolled out across India by the next financial year, any migrant ration card holder will be able to buy subsidised food grain from any fair price shop in India without the need to obtain a new ration card for the new location. This will reform the current rule under which a beneficiary could buy ration only from a nearby shop linked to the ration card.
The ministry has already launched intra-state ration card portability in 11 states and inter-state portability between Andhra Pradesh and Telangana, Gujarat and Maharashtra, Haryana and Rajasthan and Karnataka and Kerala. This means a ration card holder from Gujarat can not only buy his stock from any of the ration shops in his state but also from Maharashtra.
One Nation One Ration Card would offer public distribution system benefits from any of the ration shops with the help of a single digital card linked to the beneficiary’s Aadhaar. “The scheme, when launched pan-India, will be a big relief for migrant labourers, daily wagers and the poor in general. We have already launched pilot projects in some clusters,” Ram Vilas Paswan, minister for consumer affairs, food & public distribution, told ET Magazine.
But food security experts say that before the big rollout of the scheme, basic requirements remain unmet. “All fair price shops would need ePoS devices for seamless biometric authentication. Additionally, getting the current location of the migrant worker to avoid duplication is another challenge,” says Sandip Das, a senior consultant with Indian Council for Research on International Economic Relations (ICRIER), a Delhibased think tank.
According to food ministry data, as of now, 4.37 lakh (nearly 82%) of the 5.35 lakh fair price shops have ePoS devices. Transactions on these devices are fool-proof as dealers such as Aich in Kolkata do not have to keep the record manually. The devices also check for duplication of ration card holders.
While Andhra Pradesh, Gujarat, Haryana, Jammu & Kashmir and Maharashtra have automated all their fair price shops, few most ration shops in Bihar and Uttarakhand and none in Arunachal Pradesh, Manipur, Meghalaya, Mizoram and Nagaland have ePoS devices, delaying the quick rollout of the portability plan. In Bihar, which sees a lot of labour migration, only 6,371 of the 41,483 fair price shops have ePoS devices.
Union food secretary Ravi Kant says the remaining ration shops will get ePoS devices shortly. “However, automating some fair price shops in remote areas may be a challenge,” he tells ET Magazine.
The other challenge is ending duplication of ration cards, whereby a beneficiary is denied food grain since someone else took away the quota using a fake card. To tackle this, Kant says the government is setting up a central repository of all ration cards and only those beneficiaries whose names are in the database after de-duplication would be able to use ration card portability.
Under the scheme, the existing ration card of a beneficiary remains valid under the portability plan since card data and entitlements are maintained in the person’s home state. But through the central repository the beneficiary’s state will be able to fetch the data from its server after biometric authentication.
“More than 1,000 migrant workers from Andhra Pradesh have bought subsidised ration in Telangana every month since the scheme was launched in August,” says a senior official at the food and public distribution department.
For the scheme to be seamless, the government will have to allocate food grain quota to each state on a dynamic basis based on the off take volumes. “The government will have to make fresh estimates for food grain required to meet the demand due to seasonal migration and fluctuation in demand based on movement of labourers,” says Das of ICRIER.
Many workers from Uttar Pradesh and Bihar move to Punjab and Haryana during the crop harvesting season only to return home within a few months. As of now, the Centre allots food grain to a state according to a district-wise requirement based on the number of ration card holders and previous year’s allocation.
A top official at the Food Corporation of India (FCI), which supplies subsidised food grain to the shops from its 2,100-odd godowns, says there is no need to build fresh storage facility for the ration card portability scheme. “We have sufficient capacity to cater to any need. We maintain three to four months of buffer stock in every state based on specific allocation requirement. Otherwise too, we have surplus stock and paddy procurement has also started,” says RP Singh, executive director procurement & sales at FCI.
In 2015, the Rajasthan government tried another experiment: letting Future Group run some fair price shops in the state. Under the arrangement, India’s largest retailer will get to manage 5,000 of the nearly 26,745 fair price shops in the state. The company is also giving a facelift to ration shops in West Bengal.
DBT vs Portability
Though ration card portability plans to unify fair price shops across India, the government has done away with selling subsidised food grain in Chandigarh and Puducherry — both Union territories. Since 2015, ration card holders there have been receiving direct benefit transfer, where cash equivalent of the subsidy is transferred to the bank accounts of eligible households, enabling them to purchase items of their choice from the market. The scheme was also partially launched in Dadar & Nagar Haveli in 2016. “One Nation One Ration Card as a concept is novel but direct benefit transfer is the way forward as recommended by the high-level committee chaired by [former Union minister] Shanta Kumar,” says Das.
“There is no logic in giving food grain under PDS to food-surplus and infrastructurally better-off states such as Punjab and Haryana. It is time the government shifts to direct benefit transfer in such regions,” says former agriculture secretary Siraj Hussain.
The panel on reforming FCI had, in 2015, recommended a gradual introduction of cash transfers in public distribution system, starting with cities with more than 10 lakh population, extending it to grain-surplus states and then giving an option to deficit states to opt for cash or subsidy. However, even with direct benefit transfer, last-mile installation and maintenance of points of sale and seeding Aadhaar and bank account details of beneficiaries remain a prerequisite.
One nation, one ration card: Inside food ministry's ambitious scheme to make ration cards portable
Ration card portability implemented in 12 states: Paswan
PTI, New Delhi | January 07, 2020
Under the initiative, eligible beneficiaries would be able to avail their entitled food grains under the NFSA from any Fair Price Shop in India using the same ration card
The Centre has rolled out the ‘one nation, one ration card’ initiative in 12 states including Madhya Pradesh and Maharasthra, Food and Consumer Affairs Minister Ram Vilas Paswan said Tuesday.
Currently, the central government’s ambitious initiative is being implemented on a pilot basis in a cluster of six states. It wants to implement this facility across the country from June 1, 2020.
Under the initiative, eligible beneficiaries would be able to avail their entitled food grains under the National Food Security Act (NFSA) from any Fair Price Shop in the country using the same ration card.
“We have done ration card portability in 12 states. The beneficiaries can use the existing ration card to get the subsidised grains at same rate in any of these states,” Paswan told reporters.
Andhra Pradesh, Telangana, Gujarat, Maharasthra, Haryana, Rajasthan, Karnataka, Kerala, Madhya Pradesh, Goa, Jharkhand and Tripura are 12 states where ration card portability has been implemented, he said.
The beneficiaries can lift 50 per cent of their entitlement. Adequate supplies are made available at ration shops to meet the demand, Paswan added.
Under the NFSA, about 75 crore beneficiaries have been covered so far against the target of 81.35 crore, as per official data.
Ration card portability implemented in 12 states: Paswan
Steel ministry looks at USD 70bn investments in eastern region
PTI | Jan 11, 2020, 05.23 PM IST
Photo: Reuters
Coal India chairman and managing director Anil Jha said the miner has been focusing on minimising the imports of the fuel.
Union Minister Dharmendra Pradhan on Saturday said the steel ministry is looking at an aggregate investment of USD 70 billion in the eastern region of the country through accelerated development of the sector.
Launching the 'Purvodaya' programme here, Pradhan said the underdeveloped districts in West Bengal, Chhattisgarh, northern Andhra Pradesh, Jharkhand and Odisha have to be taken forward for development of the steel sector.
The eastern region with rich mineral resources has a great potential for development of the steel industry, he said, adding that Bihar needs to be included in the list.
According to the National Steel Policy announced in 2017, the government is aiming at a total production capacity of 300 million tonne by 2030 and out of which, around 200 million tonne is envisaged from the five eastern states, he said.
Addressing an event organised by CII, Pradhan, minister of petroleum, natural gas and steel, said the region has rich deposits of coal, iron ore and bauxite.
"As much as 90 million tonne of steel is produced in the east, out of the total production volume of 140 million tonne in the country," he said.
The steel ministry's additional secretary Rasika Chaube said the eastern region has a "natural advantage and potential" to contribute to India's target of achieving an economy of USD five trillion within 2024-25, adding that the sector has the capability to act as a catalyst.
She said the 'Purvodaya' programme would also address the logistics and infrastructure bottlenecks in the eastern region.
It also seeks setting up of greenfield plants and expansion of brownfield ones and constructing of clusters near the demand centres, Chaube added.
"Task forces have also been set up for setting up pilot projects under the aegis of the steel ministry and inter-ministerial consultations will be held for the proposed clusters," she said.
Coal India chairman and managing director Anil Jha said the miner has been focusing on minimising the imports of the fuel.
"For this, we are looking to produce 900 million tonnes of coal by 2023-24 from the current level of 607 million tonnes," Jha said.
SAIL chairman A K Chaudhary said the company has a strong presence in the east with five steel plants having production volume of 20 million tonnes while Indian Oil Corporation chairman Sanjiv Singh said the expansion of the gas and oil pipelines will boost demand for steel consumption.
"Oil and gas has a strong linkage with the steel sector," he said.
Steel ministry looks at USD 70bn investments in eastern region
PTI | Jan 11, 2020, 05.23 PM IST
Photo: Reuters
Coal India chairman and managing director Anil Jha said the miner has been focusing on minimising the imports of the fuel.
Union Minister Dharmendra Pradhan on Saturday said the steel ministry is looking at an aggregate investment of USD 70 billion in the eastern region of the country through accelerated development of the sector.
Launching the 'Purvodaya' programme here, Pradhan said the underdeveloped districts in West Bengal, Chhattisgarh, northern Andhra Pradesh, Jharkhand and Odisha have to be taken forward for development of the steel sector.
The eastern region with rich mineral resources has a great potential for development of the steel industry, he said, adding that Bihar needs to be included in the list.
According to the National Steel Policy announced in 2017, the government is aiming at a total production capacity of 300 million tonne by 2030 and out of which, around 200 million tonne is envisaged from the five eastern states, he said.
Addressing an event organised by CII, Pradhan, minister of petroleum, natural gas and steel, said the region has rich deposits of coal, iron ore and bauxite.
"As much as 90 million tonne of steel is produced in the east, out of the total production volume of 140 million tonne in the country," he said.
The steel ministry's additional secretary Rasika Chaube said the eastern region has a "natural advantage and potential" to contribute to India's target of achieving an economy of USD five trillion within 2024-25, adding that the sector has the capability to act as a catalyst.
She said the 'Purvodaya' programme would also address the logistics and infrastructure bottlenecks in the eastern region.
It also seeks setting up of greenfield plants and expansion of brownfield ones and constructing of clusters near the demand centres, Chaube added.
"Task forces have also been set up for setting up pilot projects under the aegis of the steel ministry and inter-ministerial consultations will be held for the proposed clusters," she said.
Coal India chairman and managing director Anil Jha said the miner has been focusing on minimising the imports of the fuel.
"For this, we are looking to produce 900 million tonnes of coal by 2023-24 from the current level of 607 million tonnes," Jha said.
SAIL chairman A K Chaudhary said the company has a strong presence in the east with five steel plants having production volume of 20 million tonnes while Indian Oil Corporation chairman Sanjiv Singh said the expansion of the gas and oil pipelines will boost demand for steel consumption.
"Oil and gas has a strong linkage with the steel sector," he said.
Steel ministry looks at USD 70bn investments in eastern region
Government to slash time taken to start new business to 5 days
ET Bureau | Updated: Jan 10, 2020, 08.18 AM IST
You may now be able to start a new business in five days with minimal processes. The government is set to slash the requirements & time taken for starting a new business from 10 process and 18 days to five processes and as many days.
Ten key services, including name reservation, incorporation as well as registration for various taxes such as goods and services tax, will soon be available via two forms instead of multiple individual ones at present.
The Ministry of Corporate Affairs will in a month unveil the two new forms — ‘Spice Plus’ and ‘Agile Pro’ — which will replace six forms currently required to avail of these services, a government official said.
These two forms will provide access to GSTIN, PAN, TAN, ESIC, EPFO, DIN, bank accounts and professional tax.
“The new forms will be web-based and much easier to use. The Spice Plus (incorporation form) will allow you to apply for name and incorporation in the same form besides other paservices,” the official said. Businesses will now have to register with the Employee State Insurance Corporation (ESIC) and Employees’ Provident Fund Organisation (EPFO) at the time of incorporation, the official said. Inclusion of director identification number (DIN) and registration for professional tax along with registrations of permanent account number (PAN), tax deduction and collection account number (TAN) and GST identification number (GSTIN) at the time of incorporation would greatly improve the ease of setting up a business.
World Bank’s latest Ease of Doing Business (EoDB) report has measured the number of days required to set up a business in India at 18, and the number of processes at 10.
On the World Bank’s list, India is ranked 136th out of 190 economies in the category of ease of starting a business.
Improving ease of doing business has been a key agenda of the government, with India climbing 14 ranks to 63rd in the latest rankings.
The official said the ministries of corporate affairs, finance and labour, as well as the state government of Maharashtra had coordinated to bring about this reform.
The government had also tied up with eight banks to help newly registered businesses apply for bank accounts at the time of incorporation, the official said.
Government to slash time taken to start new business to 5 days
ET Bureau | Updated: Jan 10, 2020, 08.18 AM IST
You may now be able to start a new business in five days with minimal processes. The government is set to slash the requirements & time taken for starting a new business from 10 process and 18 days to five processes and as many days.
Ten key services, including name reservation, incorporation as well as registration for various taxes such as goods and services tax, will soon be available via two forms instead of multiple individual ones at present.
The Ministry of Corporate Affairs will in a month unveil the two new forms — ‘Spice Plus’ and ‘Agile Pro’ — which will replace six forms currently required to avail of these services, a government official said.
These two forms will provide access to GSTIN, PAN, TAN, ESIC, EPFO, DIN, bank accounts and professional tax.
“The new forms will be web-based and much easier to use. The Spice Plus (incorporation form) will allow you to apply for name and incorporation in the same form besides other paservices,” the official said. Businesses will now have to register with the Employee State Insurance Corporation (ESIC) and Employees’ Provident Fund Organisation (EPFO) at the time of incorporation, the official said. Inclusion of director identification number (DIN) and registration for professional tax along with registrations of permanent account number (PAN), tax deduction and collection account number (TAN) and GST identification number (GSTIN) at the time of incorporation would greatly improve the ease of setting up a business.
World Bank’s latest Ease of Doing Business (EoDB) report has measured the number of days required to set up a business in India at 18, and the number of processes at 10.
On the World Bank’s list, India is ranked 136th out of 190 economies in the category of ease of starting a business.
Improving ease of doing business has been a key agenda of the government, with India climbing 14 ranks to 63rd in the latest rankings.
The official said the ministries of corporate affairs, finance and labour, as well as the state government of Maharashtra had coordinated to bring about this reform.
The government had also tied up with eight banks to help newly registered businesses apply for bank accounts at the time of incorporation, the official said.
Government to slash time taken to start new business to 5 days
Japanese firms line up to invest in exclusive township
Mahesh Kulkarni, Jan 05 2020, 20:56pm IST
Many Japanese companies have shown interest to invest in the Japanese Industrial Township (JIT) at Vasanthanarasapura, about 90 km from Bengaluru. Representative image
Investment-starved Karnataka is all set to get a big boost as many Japanese companies have shown interest to invest in the Japanese Industrial Township (JIT) at Vasanthanarasapura, about 90 km from Bengaluru.
While nearly a dozen Japanese companies have expressed a keen interest to set up shop at the Japanese Industrial Township, two companies -- Kirloskar Toyota Textile Machinery Pvt Ltd and Showa India Private Limited have received the state government approval for their investment proposals. Both the companies together will be investing around Rs 580 crore.
“The Japanese Industrial Township is being developed at Vasanthanarasapura in Tumakuru district along the Chennai-Bengaluru Industrial Corridor (CBIC). The state government has allotted 519.55 acres land for the township,” Gaurav Gupta, Principal Secretary, Department of Commerce and Industries told DH.
He said the government has given approval to Kirloskar Toyota Textile Machinery Pvt Ltd to begin its operations at the township. The company has been allotted 41 acres to set up its facility. It will be investing Rs 401 crore on its new plant that will generate employment for more than 800 people. The government has also allotted 18.46 acres land to Showa India Private Limited to establish a unit for the manufacturing suspension system and products for an investment of Rs 180 crore, he said.
10-11 companies are waiting for approval, he said adding that there could be around 100 companies setting up shop in the township once it is fully occupied. Out of 530 acres earmarked for the township, as much as 350 acres will be allottable to industries. “The Japanese industrial township will give impetus to Japanese investment in the state as well as boost tourism between India and Japan,” Gupta added.
Karnataka is home to one of the largest clusters for Japanese companies in India. Some of the big names include Toyota Kirloskar Motor, Honda Motorcycle and Scooters India, Toyota Kirloskar Auto Parts, Toyota Boshoku, Toyota Mitsubishi Engineering Industrial Corporation (TMEIC) and Mitsubishi Elevators among others. There are as many as 529 Japanese establishments in India.
The key sectors in focus at the JIT will be heavy engineering, machine tools, automotive and aerospace components among others. The township will be a gated community with modern infrastructure. There will be common facilities for packaging and other assorted activities, Gupta said.
Last year, a Japanese delegation led by Japan’s Ambassador to India Kenji Hiramatsu visited the state and held discussion with the state government on the investment by Japanese companies in the state.
Japanese firms line up to invest in exclusive township
Mahesh Kulkarni, Jan 05 2020, 20:56pm IST
Many Japanese companies have shown interest to invest in the Japanese Industrial Township (JIT) at Vasanthanarasapura, about 90 km from Bengaluru. Representative image
Investment-starved Karnataka is all set to get a big boost as many Japanese companies have shown interest to invest in the Japanese Industrial Township (JIT) at Vasanthanarasapura, about 90 km from Bengaluru.
While nearly a dozen Japanese companies have expressed a keen interest to set up shop at the Japanese Industrial Township, two companies -- Kirloskar Toyota Textile Machinery Pvt Ltd and Showa India Private Limited have received the state government approval for their investment proposals. Both the companies together will be investing around Rs 580 crore.
“The Japanese Industrial Township is being developed at Vasanthanarasapura in Tumakuru district along the Chennai-Bengaluru Industrial Corridor (CBIC). The state government has allotted 519.55 acres land for the township,” Gaurav Gupta, Principal Secretary, Department of Commerce and Industries told DH.
He said the government has given approval to Kirloskar Toyota Textile Machinery Pvt Ltd to begin its operations at the township. The company has been allotted 41 acres to set up its facility. It will be investing Rs 401 crore on its new plant that will generate employment for more than 800 people. The government has also allotted 18.46 acres land to Showa India Private Limited to establish a unit for the manufacturing suspension system and products for an investment of Rs 180 crore, he said.
10-11 companies are waiting for approval, he said adding that there could be around 100 companies setting up shop in the township once it is fully occupied. Out of 530 acres earmarked for the township, as much as 350 acres will be allottable to industries. “The Japanese industrial township will give impetus to Japanese investment in the state as well as boost tourism between India and Japan,” Gupta added.
Karnataka is home to one of the largest clusters for Japanese companies in India. Some of the big names include Toyota Kirloskar Motor, Honda Motorcycle and Scooters India, Toyota Kirloskar Auto Parts, Toyota Boshoku, Toyota Mitsubishi Engineering Industrial Corporation (TMEIC) and Mitsubishi Elevators among others. There are as many as 529 Japanese establishments in India.
The key sectors in focus at the JIT will be heavy engineering, machine tools, automotive and aerospace components among others. The township will be a gated community with modern infrastructure. There will be common facilities for packaging and other assorted activities, Gupta said.
Last year, a Japanese delegation led by Japan’s Ambassador to India Kenji Hiramatsu visited the state and held discussion with the state government on the investment by Japanese companies in the state.
Japanese firms line up to invest in exclusive township
Somewhat fear mongering level. We will see for next few years and possible decade, maybe two....because there is push for formalisation away from current typical NBFC in existence now (and stress effects of that on larger finance and banking sector).
First thing people have to ask is why NBFCs are even there structurally....it is because of severe mismatch between demand and supply of credit at the levels/amounts most attractive to small consumers/businesses.
Ideally properly regulated competitive credit would effusively permeate from quality banks only....so ideally the govt is correct to first bring more standardised regulation for NBFCs as first step so there is much less scope for resolution loopholes (compared to rest of financial sector) like exist now when one of these go bust.
As far as the bail out "equity forcing" (Above certain insured amount), mechanics of that will have to be seen in operation (if final bill does have it). It could be good or bad thing (And can be reversed if its bad). It is somewhat dependent on what the velocities/sensitivities are of how the (above insured threshold) savings are currently leveraged to the broader economy compared to using them for recapitalisation of stressed assets (i.e which one of these has more immediate positive effect to economy in current economic stage of India....argument/blanace of status quo effects vs more intervention effects)....but I don't think it could even in worst case scenario cause anywhere near a collapse as long as IBC continues to have good resolution process and built up experience/credibility behind it (Shekhar Gupta produced a fairly good analysis of it in print YT channel)....since that is what will determine the large contours on what are juicy pickings to recapitalise with essentially public pooled money.
Why is it no one talking about Financial Code Bill? That would have taken care of many problems in the long run.
The Indian Financial Code: What's promising, what's not
Inflation at 7.35% awesome, keep milking public on oil, keep your head buried and when onion sell at 120 for not a week but months, other vegetables are too out of control.
GDP at 4.5 and inflation at 7.35 means real GDP growth is in negative. Similarly savings interest rate 3.5 and inflation at 7.35 means you are losing your money at about 4%.
I am amazed how badly they fkd up these solid macro indicators, from now on central bank will be targeting inflation for an year or more so no more cheap loans, tight money policy and you can kiss goodbye to growth boost from RBI. What a mess.
Inflation shock after GDP growth slump
GDP at 4.5 and inflation at 7.35 means real GDP growth is in negative. Similarly savings interest rate 3.5 and inflation at 7.35 means you are losing your money at about 4%.
I am amazed how badly they fkd up these solid macro indicators, from now on central bank will be targeting inflation for an year or more so no more cheap loans, tight money policy and you can kiss goodbye to growth boost from RBI. What a mess.
Inflation shock after GDP growth slump
Thanks to sharad pawar. He is the master of onion industry. The day he is back suddenly onion prices started increasing.
Not negative but 2-3%. I wont be surprized because Chinese auto industry is also sliding down. This will increase amid Iran US conflict. The crude oil price will increase and so will the inflation.
In 1990's there was a plan to bypass Pakistan and bring direct Oil supply to India from Iran, for half the price what India gets from Saudi Arab, but US objected.
One thing is must to do , change Sitharaman and brin Piyush Goyal.