Today's News in Media - 11-12-2015

Dear all,

GST

GST rollout will unify the country: Rajan
The goods and service tax (GST) is "absolutely a good thing" for the country, said RBI Governor Raghuram Rajan here on Thursday.According to him, imposition of GST would lead to an increase in the tax net. Interestingly, he pointed out that this would not necessarily mean higher tax rates.More people coming under the tax ambit would mean more revenues and people sharing the revenue burden; which, he maintained, was a good thing for the country.
http://www.thehindubusinessline.com/todays-paper/tp-news/gst-rollout-will-unify-the-country-rajan/article7972712.ece

Be pragmatic and forget GST for now
Like the low pressure system that loomed over Chennai for a whole week refusing to go away, the Goods and Services Tax Bill continues to dog the Centre and is raining on its parade. And just as things were beginning to look up, the storm over the National Herald case set in, effectively dealing a blow to the Bill's prospects in the current session.With the Congress top brass seeing the summons from a Delhi trial court to Sonia Gandhi and Rahul Gandhi as "political vendetta" from none less than the Prime Minister, the prospects for any business being transacted in the monsoon session appears bleak indeed.
http://www.thehindubusinessline.com/todays-paper/tp-opinion/be-pragmatic-and-forget-gst-for-now/article7972747.ece 

Centre may grant I-T rebate for cashless transactions
Income tax rebate is one of the incentives being considered by the government to encourage people to move away from cash transactions and curb black money flows, a senior official said on condition of anonymity. The move may eventually use cashless transaction records to build a credit history for the poor and help them access loans.Since the Union budget had promised measures to promote cashless transactions, a few measures could be announced soon.
http://www.thehindu.com/todays-paper/tp-business/centre-may-grant-it-rebate-for-cashless-transactions/article7972860.ece

Smuggling may negate CEA's proposal for higher GST on gold
Chief Economic Advisor Arvind Subramanian has suggested taxing precious metals at higher rates under the Goods and Services Tax regime, but this could prove ineffective if one goes by the Finance Ministry's latest data that point to a significant rise in gold smuggling."Besides increase in customs duty rates, factors like fluctuation in international price of gold and other restrictions on import of gold also contribute to the increase in incidences of gold smuggling," Finance Minister Arun Jaitley had recently informed Lok Sabha.
http://www.thehindubusinessline.com/todays-paper/smuggling-may-negate-ceas-proposal-for-higher-gst-on-gold/article7972677.ece

AGRICULTURE

Food subsidy: govt to insist on discussion at WTO
India will not respond to "one-off'' proposals from developed members of the World Trade Organisation (WTO) such as the EU that has reportedly suggested that New Delhi agrees on a cap for its minimum support price programmes in return for a permanent solution on treating such subsidies without attracting penalties."The discussions on a permanent solution have to be based on the paper submitted by the G-33 (which includes India and 45 other developing countries). We are going to insist on a work programme based on it at the Nairobi ministerial meet next week. We will not respond to any one-off proposals (as the one made by the EU)," Commerce Secretary Rita Teaotia said at a press conference on Thursday.
http://www.thehindubusinessline.com/todays-paper/food-subsidy-govt-to-insist-on-discussion-at-wto/article7972673.ece

What about ease of doing farming?
The ministry of agriculture was renamed recently as the ministry of agriculture and farmers' welfare. A welcome step and, perhaps, the Centre will devote better attention to farmers' welfare and not just agriculture.Notwithstanding the international dimensions or vagaries of weather, the plight of farmers is often reflected in supply constraints faced by key industries and muted consumer confidence due to low disposable income.
http://www.thehindubusinessline.com/todays-paper/tp-opinion/what-about-ease-of-doing-farming/article7972759.ece

Soon, a flavoured coconut juice
After Neera and other value added products, it is now the turn of coconut juice to hit the market as a ready-to-drink beverage.Developed by CDB Institute of Technology, the flavoured coconut juice will be available in six months. The product has been well received during test marketing, a senior official in the Coconut Development Board has said.
http://www.thehindubusinessline.com/todays-paper/tp-agri-biz-and-commodity/soon-a-flavoured-coconut-juice/article7972648.ece

Outlook now bearish for MCX-Crude oil, natural gas
The crude oil futures contract traded on the Multi Commodity Exchange (MCX) has plummeted over 10 per cent in the past one week. The global crude oil price tanked over 10 per cent last week after the OPEC decided not to cut its production.This has also dragged the domestic futures contract. The MCX-crude oil futures contract is currently trading at Rs. 2,485 per barrel. It has an immediate support at Rs. 2,460.
http://www.thehindubusinessline.com/todays-paper/tp-agri-biz-and-commodity/outlook-now-bearish-for-mcxcrude-oil-natural-gas/article7972652.ece

BANKING

RBI ready to intervene in exchange-traded currency derivatives
In the backdrop of the expected lift-off in interest rates in the US and the volatility it could cause in the forex markets, the Reserve Bank of India said it will intervene in the exchange-traded currency derivatives (ETCD) segment, if required.This is probably to ensure that market players do not get a whiff of its intervention in this segment where futures' trading is done through anonymous order matching. Further, the effectiveness of its intervention through this route could last longer. 
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/rbi-ready-to-intervene-in-exchangetraded-currency-derivatives/article7972666.ece

Govt capital may not be enough for banks to support credit growth: Fitch
The government's expected capital injection of around $11 billion (about Rs.70,000 crore) into its banks is critical but may be insufficient to support sustainable lending growth, achieve Basel III norms and cushion balance sheet stress — all at the same time, according to Fitch Ratings.State-owned banks — which carry a disproportionate share of the stressed assets — have little choice but to look at strengthening their balance sheets if they have to revive profitability, rev up internal capital generation and equity valuations in any meaningful way, the credit rating agency said in a report published on Thursday.
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/govt-capital-may-not-be-enough-for-banks-to-support-credit-growth-fitch/article7972668.ece

Banks' SLR under HTM category to come down to 20.5% by March 2017
The Reserve Bank of India on Thursday said the statutory liquidity ratio (SLR) of banks will come down 0.25 per cent every quarter, from 21.5 per cent of their deposits now to 20.50 per cent in the March 2017 quarter, as announced in the fourth bi-monetary policy in September.SLR is the portion of deposits that banks have to necessarily maintain in assets, such as cash, gold valued at a price not exceeding the current market price, dated securities and treasury bills issued by the Government of India and State development loans of State Governments.
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/banks-slr-under-htm-category-to-come-down-to-205-by-march-2017/article7972669.ece

'When Issued' market: banks allowed to take short positions
The RBI has decided to permit scheduled commercial banks to take short positions in the "When Issued" (WI) market for both new and reissued securities.Further, it has also decided to permit other eligible entities — mutual funds, insurance companies, pension funds, housing finance companies, non-banking finance companies and urban co-operative banks — to take long positions in the 'WI' market.
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/when-issued-market-banks-allowed-to-take-short-positions/article7972670.ece

Health insurance claims: TPAs to be made more accountable
In a bid to seek greater accountability from third-party administrators (TPAs) for processing health insurance claims, the insurance regulator plans to tighten the regulations governing them.According to a senior official at the Insurance Regulatory and Development Authority of India (IRDAI), the revamped TPA health regulations will clearly define the purview of operations for them.IRDAI had made it clear in the regulations that TPAs can only process or recommend claims and cannot repudiate claims.
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/health-insurance-claims-tpas-to-be-made-more-accountable/article7972671.ece

RBI intervened in currency futures in September
A day after the Reserve Bank of India (RBI) said it would intervene in the currency futures market, data released by the central bank showed it had intervened in September itself. However, there was no intervention in October.The RBI monthly bulletin released on Thursday shows the central bank both purchased and sold $355 million in the futures market in September.
http://www.thehindu.com/todays-paper/tp-business/rbi-intervened-in-currency-futures-in-september/article7972862.ece

Pvt. banks better placed to gain from upturn: Fitch
Credit growth of banking sector may moderate further in the current financial year as worsening asset quality coupled with capital constraints were acting as impediments, according to ratings agency, Fitch.Bank credit grew 9.7 per cent on a year-on-year basis till middle of November as compared be 10.5 per cent during the same period of the previous year, Reserve Bank of India showed.
http://www.thehindu.com/todays-paper/tp-business/pvt-banks-better-placed-to-gain-from-upturn-fitch/article7972863.ece

BUSINESS

Government firming up measures to revitalise SEZs
The government is firming up measures to revitalise the special economic zones (SEZs), Commerce Secretary Rita Teaotia said on Thursday. The secretary held a meeting with SEZ representatives to discuss problems faced by them. The Export Promotion Council had opposed a proposal being considered by the Finance Ministry for abolition of all direct tax benefits for SEZs not operationalised before April, 2017.Following the implementation of MAT and Dividend Distribution Tax, imposed by the UPA government in the FY12 Budget, there is already a slowdown in the SEZ sector, according to the council.
http://www.thehindu.com/todays-paper/tp-business/government-firming-up-measures-to-revitalise-sezs/article7972867.ece

E-commerce companies ramp up advertising spending
Leading e-commerce players such as Amazon and Flipkart have raised their marketing and advertising spends by over 57 per cent this year, in anticipation of consumer sentiment turning positive.In the three-month period from September to November alone, these players spent about Rs 500 crore on advertising on account of the festive season compared with their total ad-spend budget of Rs 600 crore for 2014. As per TAM data shared by media buying and planning agency, Xposure, spends by e-commerce advertisers during the ongoing year stands at Rs 944 crore.
http://www.thehindu.com/todays-paper/tp-business/ecommerce-companies-ramp-up-advertising-spending/article7972861.ece

Cairn Energy to claim about $700 million from Centre
Cairn Energy Plc has said it will seek a huge claim — about $700 million — from the Indian government for 'losses' caused to it by the latter's actions as part of a $1.6 billion tax dispute.The government could face "substantial damages" against it for the fall in value of the Edinburgh head-quartered company's residual holding in Cairn India Ltd. as a result of several factors that include the government's decision to disallow the stake sale pending resolution of the dispute.
http://www.thehindu.com/todays-paper/tp-business/cairn-energy-to-claim-about-700-million-from-centre/article7972875.ece

Over 400 NGOs oppose 'new non-trade issues' at WTO talks
Members of 453 civil society groups from over 150 countries have asked the World Trade Organisation (WTO) member countries to forestall — what they termed — the "corporate and rich country-government agenda" of permanently abandoning the 'development' mandate of the Doha Round negotiations, and replacing it with a set of 'new non-trade issues' at the global trade body's coming Nairobi meet.The Nairobi ministerial conference — on the Doha Round negotiations meant to liberalise world trade — will be a failure from a development perspective if 'new issues' (such as environment, labour, e-commerce, global value chains, investment, competition policy and transparency in government procurement), are agreed to as part of post-ministerial agenda, said the civil society groups in a letter to all the WTO members.
http://www.thehindu.com/todays-paper/tp-business/over-400-ngos-oppose-new-nontrade-issues-at-wto-talks/article7972874.ece

INFORMATION TECHNOLOGY

Now, fintech start-ups to provide capital to SMEs
New entrepreneurs and small enterprises, which have typically been locked out of the financial system and ignored by big banks and other financial institutions, have found solace in a breed of new financial technology start-ups.In the last 12-18 months, about three dozen start-ups such as Indifi Technologies, CapitalFloat, Aye Finance, Origa Leasing, Faircent and Lendingkart have emerged to provide fast, easy and collateral-free loans to small businesses. The loans, mostly short term, are in the range of Rs. 3 lakh to Rs. 1 crore but with an interest rate as high as 15-22 per cent.
http://www.thehindubusinessline.com/todays-paper/tp-info-tech/now-fintech-startups-to-provide-capital-to-smes/article7972680.ece

INTERNATIONAL

India, Japan likely to wrap up talks for amphibious aircraft
India and Japan are likely to conclude the long-pending negotiations entailing purchase of amphibious aircraft for $1.6 billion required by the Indian Navy for search and rescue operations.The deal will be announced during the annual summit meeting between Prime Minister Narendra Modi and Shinzo Abe here on Saturday. Under the multi-billion dollar deal, Japan will supply a fleet of ShinMaywa US-2 amphibious aircraft to India. A total of 15 such aircraft will be purchased. This is will become the first such big-ticket defence deal between India and Japan, if the talks that started in 2011 are concluded. This will also make India the first such country to buy military hardware from Japan as they lift a self-imposed restriction on defence exports. ShinMaywa, which intends to set up a unit here later, is also scouting for Indian partners and have been in talks with HAL, Tata Aerospace, Mahindra and L&T among others.
http://www.thehindubusinessline.com/todays-paper/tp-news/india-japan-likely-to-wrap-up-talks-for-amphibious-aircraft/article7972716.ece

CLIMATE CHANGE

Climate change: New, shorter draft released at summit; 'sustainable lifestyle' issue raised by India included
A new shorter draft incorporating many key issues raised by India like "sustainable lifestyle" was unveiled after intense negotiations here as the crucial climate change conference enters into the final stretch of talks.The 27-page draft, two pages shorter than a previous one, was released on Thursday after two days of ministerial consultations and incorporates major progress as well as differences.The draft presented by French Foreign Minister Laurent Fabius includes key issues which India has raised like "sustainable lifestyle", principles based on equity and common but differentiated responsibilities as is there in the United Nations Framework Convention for Climate Change (UNFCCC).
http://www.deccanchronicle.com/151211/world-europe/article/climate-summit-new-shorter-draft-climate-accord-released-sustainable

MARKET

Sensex down by 61 points in early trade ahead of IIP data
In choppy deals, the benchmark BSE Sensex fell over 61 points in early trade on profit-booking in select stocks by participants ahead of the IIP data to be released later in the day amid mixed Asian cues. The 30-share index was 61.31 points or 0.24 per cent down at 25,191.01 after rising to 25,316.14 in early choppy trade with sectoral indices, led by realty, PSU, FMCGs, banking, oil&gas and auto were in negative zone.
http://www.deccanchronicle.com/151211/business-market/article/sensex-down-61-points-early-trade-ahead-iip-data

STATE

Honeywell , Safe Water Network to set up iJal stations in Telangana
Over 60,000 people in the backward regions of Karimnagar and Adilabad districts of Telangana State can look forward to safe and affordable drinking water in the next 24 months.Global technology giant Honeywell and Safe Water Network have joined hands to provide the technology and funding for the implementation of iJal stations in these districts.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/honeywell-safe-water-network-to-set-up-ijal-stations-in-telangana/article7972767.ece

A portal to help SMEs get bank loans
While the SMEs that have managed to get finance from banks prefer not to comment on the difficulties in getting the support, there are many that are not even aware of the support system.According to an IFC survey, there are about 55 million registered SMEs, of which just about 35 per cent are in the banking system.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/a-portal-to-help-smes-get-bank-loans/article7972768.ece

JICA to provide Rs. 3,600 crore loan for Vijayawada Metro
Andhra Pradesh government has finalised a major chunk of financial component for the construction of two corridors of 26.03 km Vijayawada Metro Rail Project .The Special Purpose Vehicle - Amaravati Metro Rail Corporation Ltd., - that has been formed to implement the project at a cost of Rs.6,769 crore has prepared a preliminary project report for bilateral financial cooperation with the help from the consultants Delhi Metro Rail Corporation.
http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/jica-to-provide-rs-3600-crore-loan-for-vijayawada-metro/article7973103.ece

ADB to give $1 billion to Power Grid Corp
The Asian Development Bank (ADB) will provide a $500-million government-backed loan and a further $500 million in non-sovereign lending to Power Grid Corporation, the Manila-based bank said in a statement on Thursday."The funds will be used to build and upgrade high voltage transmission lines and substations in Rajasthan and Punjab, as part of the Government's Green Energy Corridor initiative," the statement said, adding that the project will also include new high-voltage direct current terminals in Chhattisgarh, Tamil Nadu and Kerala, boosting interconnectivity between the regions from about 10 gigawatt (GW) to 16 GW.
http://www.thehindubusinessline.com/todays-paper/tp-news/adb-to-give-1-billion-to-power-grid-corp/article7972707.ece

Centre, States ill-prepared for floods: PAC
The Public Accounts Committee has warned the Centre and State governments for their lack of preparedness in dealing with floods. The panel, in its report on Disaster Preparedness in India, tabled in Parliament on Thursday, said an average of 72.25 lakh hectares of land are affected annually by floods of which 37.89 lakh hectares are cropped area. It urged the Home Ministry to encourage the States to establish Dam Safety Organisations to prepare emergency action plans in case of adverse situation. The panel noted that just 14 States have so far formed such authorities, while only eight States have prepared emergency action plans for 192 large dams, while the country has 4,728 large dams.It urged the Home Ministry, Ministry of Water Resources, Department of Space, Meteorology Department, dam owning companies and state governments to come together to assess and minimise the damage caused by floods.
http://www.thehindubusinessline.com/todays-paper/tp-news/centre-states-illprepared-for-floods-pac/article7972710.ece

CREDAI meet to focus on ease of doing biz
State laws are creating hurdles in 'ease of doing business' and the Centre and States need to be in sync with respect to approvals and taxation in real estate business, Getamber Anand, President, Confederation of Real Estate Developers' Associations of India (CREDAI), said on Wednesday.CREDAI's annual conclave on December 16-17 aims to focus on the need for government policies to enable ease of doing business. "The ease of doing business is a weighted average index, and 35 per cent of the weight is on building permits," said Rohit Raj Modi, Vice-President, CREDAI.
http://www.thehindubusinessline.com/todays-paper/tp-news/credai-meet-to-focus-on-ease-of-doing-biz/article7972711.ece

Develop India into a hub of institutional arbitration, says Parliamentary Panel
The Centre should develop India into a hub of institutional arbitration to enable foreign investors settle their disputes within the country in a faster and reliable manner.This recommendation has been made in the report of a Parliamentary Panel that went into the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill 2015.
http://www.thehindubusinessline.com/todays-paper/tp-news/develop-india-into-a-hub-of-institutional-arbitration-says-parliamentary-panel/article7972715.ece

'Weak fiscal settings weigh on India's ratings'
As we step into 2016, the big disappointment has been on the government's reform pace with a shadow looming large over the GST Bill. What's the road ahead for recovery and what does this mean for India's rating outlook? Speaking to Bloomberg TV India, Standard & Poor's Director Kyran Curry explains why GST is important for improving India's government finances and rating outlook.
http://www.thehindubusinessline.com/todays-paper/tp-news/weak-fiscal-settings-weigh-on-indias-ratings/article7972718.ece

Real estate firms hail Cabinet nod for Bill
Developers and industry watchers have hailed the Cabinet approval of a Real Estate (Regulation and Development) Bill, saying it would set a benchmark in consumer rights protection. However, they also point out that if speedy project approvals are not factored in, then it could lead to project delays and even resultant rise in costs.The Bill will now be taken up for consideration in Parliament.
http://www.thehindubusinessline.com/todays-paper/tp-news/real-estate-firms-hail-cabinet-nod-for-bill/article7972720.ece

Railway land monetisation: 50-year lease is sticky issue for builders
The Railways aim to monetise their land parcels around stations. But, builders believe that the 50-year lease model is a roadblock, making the scheme unfeasible for real estate development.The Cabinet had, in July, approved the redevelopment of the Railways' 400 stations through an innovative public-private partnership model — the Swiss Challenge method. The method allows developers to suo motu submit a station development proposal, which the Railways can make public for inviting better plans from other developers.
http://www.thehindubusinessline.com/todays-paper/tp-news/railway-land-monetisation-50year-lease-is-sticky-issue-for-builders/article7972723.ece

Corporate realty makes big bucks in India
Corporate real estate is growing significantly in India as several major corporates are monetising their surplus or non-strategic assets. A major boost is also coming from offshore companies for R&D centres, back office etc.,  said Sanjay Dutt co-chair of CoreNet Global's India Chapter. They need infrastructure for seamless operations, he said, adding that according to his experience, 85 per cent of the office space was leased by offshore companies and e-commerce companies. 
http://www.deccanchronicle.com/151211/business-latest/article/corporate-realty-makes-big-bucks-india

Pollution touches new high in Uttar Pradesh
Pollution in Lucknow touched a new high on Wednesday and the state capital emerged as the most polluted city in the country. According to the report of the Central Pollution Control Board (CPCB) the air quality index value in Lucknow on Wednesday was 471 while Kanpur ranked second with 429, Faridabad came third with 402 and Delhi was at fourth position with 382.
http://www.deccanchronicle.com/151211/nation-current-affairs/article/pollution-touches-new-high-uttar-pradesh

Artificial intelligence to replace smartphones by 2021: Report
A survey conducted by Ericsson owned ConsumerLab, as part of its fifth annual report on consumer trends, indicated that Artificial Intelligence (AI) will replace smartphones in the next five years.The Sweden-based communication technology provider questioned more than 100,000 consumers across 40 countries, enquiring their views on the future of technology. Interestingly, one in two smartphone users who took part in the survey favoured AI interfaces over devices with screens.
http://www.deccanchronicle.com/151210/technology-latest/article/artificial-intelligence-replace-smartphones-2021-report

For mobiles, 'Make in India' is just a screwdriver job
Even as the Centre is pushing hard its 'Make in India' agenda, it has been reduced to a charade in cell phone manufacturing. With mobile phone-makers exploiting the loopholes in the tax structure, the so-called local manufacture of mobiles has turned into a screw-tightening job with as much as 99 per cent of manufacturing still being done overseas.This is a fallout of the Centre's decision to impose a 12 per cent import duty on finished handsets and a local excise duty of 1 per cent in the 2015 Budget. At the same time, it set the duty on components at zero. This was done with the expectation that phone brands would find it cost-effective to make handsets in India.
http://www.thehindubusinessline.com/todays-paper/for-mobiles-make-in-india-is-just-a-screwdriver-job/article7972675.ece

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