5) Government To Sell Its 5% Stake In NTPC.
- In the sixth public sector unit (PSU) share sale this fiscal, the government will sell 5% stake in India`s largest power producer NTPC at a floor price of Rs. 122 a piece to raise Rs. 5,030 crore.
- The share sale, which comes days ahead of the Budget 2016, will be the first under Sebi`s revised offer for sale (OFS) rules that allow the bidding for shares spread over two days.
- The government has fixed a floor price for the sale of over 41.22 crore shares in NTPC at Rs. 122 a piece, a 3.82% discount to its closing price on the BSE.
- The shares of NTPC closed at Rs. 126.85 on the BSE.
- While the issue would open for institutional bidders, the retail investors, for whom 20% shares have been reserved, will get to bid. At a floor price of Rs. 122, the NTPC share sale would fetch about Rs. 5,030 crore to the exchequer.
- NTPC is the first company to hit the markets under the revised offer for sale (OFS) guidelines of the market regulator the Securities and Exchange Board of India (Sebi).
- In a BSE filing, NTPC said that government will sell over 41.22 crore shares in the company at a floor price of Rs. 122 a piece.
- A 5% additional discount would be offered to retail investors, which are those who bid for shares worth not more than Rs. 2 lakh.
- SBICAP Securities, ICICI Securities, Edelweiss Securities and Deutsche Equities are acting as merchant bankers for the share sale.
- The Cabinet had approved the 5% stake sale in NTPC. The government holds 74.96% in the firm. It had last sold stake in NTPC.
6) United States won WTO dispute against India`s solar rules.
- The United States won a ruling against India at the World Trade Organization after challenging the rules on the origin of solar cells and solar modules used in India`s national solar power program.
- In a statement, the US Trade Representative`s office called the ruling a significant victory that would hasten the spread of solar energy across the world and support clean-energy jobs in the United States.
- The United States complained to the WTO in 2013 about the Indian solar program, which sought to ease chronic energy shortages in Asia`s third-largest economy without creating pollution.
- But a requirement that certain cells and modules be made in India fell afoul of WTO rules on discriminating against imports. The United States said its solar exports to India had fallen by 90 per cent from 2011, when India imposed the rules.
- The WTO ruling, which can be appealed within 60 days, was repeatedly delayed as the two sides tried to negotiate a settlement. An Indian official had said a compromise might let India subsidize state projects such as defense or railway projects.
7) Union Cabinet approves $150 million Credit for Chabahar Port Development.
- For greater trade and investment flow with Iran and neighbouring countries, government today cleared proposals for development of strategic Chabahar port in the Persian Gulf nation including through a $150 million credit from Exim Bank.
- ``The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to the proposal of the Ministry of Shipping for provision and operationalisation of credit of $150 million from EXIM Bank for development of Chabahar Port in Iran``, a Shipping Ministry statement said after the meeting.
- The Cabinet has also authorised the Shipping Ministry to form a company in Iran for implementing the Chabahar Port Development Project and related activities.
- The strategic port, which is located off Iran`s south eastern coast will provide India a sea-land access route to Afghanistan bypassing Pakistan.
- In May last year, Road Transport, Highways and Shipping Minister Nitin Gadkari had visited Tehran where India and Iran signed a pact to develop the Chabahar port.
- "India is negotiating this project to facilitate the growing trade and investment with Iran and other countries in the region, notably Afghanistan and also to provide opportunities to Indian companies to penetrate and enhance their footprint in the region".
- Chabahar Port lies outside the Persian Gulf in Iran and will help in expanding maritime commerce in the region.
- As per the MoU signed between the two nations in May last year, India is to equip and operat two berths in Chabahar Port Phase-I with capital investment of $85.21 million and annual revenue expenditure of $22.95 million on a ten year lease.
- "Ownership of equipment will be transferred to Iranian side on completion of 10-year period or for an extended period, based on mutual agreement``, it said adding, the Iranian side had requested for provision of a credit of $150 million in accordance with the MoU.
- As per the per the pact, operation of two berths will commence within a period of maximum 18 months after the signing of the contract.
8) Union Cabinet approved Promotion of Payments through Cards and Digital means.
- The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for introduction of steps for promotion of payments through cards and digital means.
- The move aims at reducing cash transactions. Several short term (to be implemented within one year) and medium term measures (to be implemented within two years) have been approved for implementation by the Government Ministries/ Departments/ Organisations.
- Promotion of payments through cards and digital means will be instrumental in reducing tax avoidance, migration of Government payments and collections to cashless mode, discourage transactions in cash by providing access to financial payment services to the citizens to conduct transactions through card/ digital means and shifting payment ecosystem from cash dominated to non-cash/ less cash payments.
- The essential features of the proposals for promotion of payments through cards and digital means include steps for withdrawal of surcharge/ service charge/ convenience fee on card/ digital payments currently imposed by various Government Departments/ organisations and introduction of appropriate acceptance infrastructure in Government Departments/ organisations; rationalization of Merchant Discount Rate (MDR) on card transactions and a differentiated MDR framework for some key transaction segments.
- Mandating payments beyond a prescribed threshold only in card/ digital mode; introduction of formulae linked acceptance infrastructure by the stakeholders of certain card products.
- The infrastructure of card/ digital payments is growing, but remains modest in comparison to cash payments. For card/ digital payments to increase, they should be easy to use, readily available and accepted, should not impose any undue financial burden on the merchant and user, and should offer an appropriate level of security.
- While the payment system initiatives taken in the form of Electronic Clearing Service Scheme, National Electronic Funds Transfer, Real Time Gross Settlement Scheme etc. have been impressive, the benefits of modern card/ digital payment systems are yet to reach all sections of the society and be accepted across the length and breadth of the country.
- Current experience and evidence indicates that the penetration and success of modern card/ digital payment products and services is concentrated to a large extent in the tier-l and tier-ll locations of the country and mostly to those citizens who have access to the formal banking channels.
9) Highlights of Railway Budget 2016-17.
- Railway Minister announces a capital plan of Rs. 1,21,000 crore for 2016-17; claims action initiated on 139 budget announcements made last year.
- The Union Railway Budget 2016-17 focused on capacity creation in the rail sector, with an increased outlay of about Rs. 1.21 lakh crore, and on completion of the ongoing projects rather than announcing new ones. Extending 2015`s measure, passenger fares remain the same.
- Mr. Prabhu`s announcements included India`s first rail auto hub, boost to e-catering, connectivity to North-East and Wi-Fi in railway stations.
Theme of the Budget:
- `Chalo, Milkar Kuch Naya Karen` for overcoming challenges – Reorganize, Rejuvenate, Restructure Indian Railways Three pillars strategy: Nav Arjan – New revenues, Nav Manak – New norms, Nav Sanrachna – New Structures.
Railway Fares:
- No new hike in passenger fares and Freight fares. Promised to bring down freight rates and double non-tariff revenue for the ailing national transport.
New Initiatives:
For the unreserved passenger:
(i) Antyodaya Express superfast unreserved service.
(ii) Deen Dayalu unreserved coaches with potable water facility and higher number of mobile charging points.
For the reserved passenger:
(i) Humsafar: Fully air-conditioned service with an optional service for meals.
(ii) Tejas: It will operate at speeds of 130 kmph and above and shall showcase the future of train travel in India. It will offer onboard services such as local cuisine, entertainment, WiFi, etc.
(iii) UDAY (Utkrisht Double-Decker Air-conditioned Yatri) Express: Overnight double-decker express on the busiest routes. Potential to increase carrying capacity by almost 40%.
(iv) SMART (Specially Modified Aesthetic Refreshing Travel) Coaches: These coaches are designed to ensure higher carrying capacity and provision of new amenities including automatic doors, bio-vacuum toilets, bar-code readers, water-level indicators, accessible dustbins, ergonomic seating, vending machines, improved aesthetics, LED lit boards for advertising, entertainment screens, PA system.
Cleanliness:
- SMS service ‘Clean my Coach’, ranking of A1 and A railway stations based on periodic third party audit and passenger feedback, Awareness campaigns. Waste segregation and recycling centres, additional 30,000 bio-toilets etc.
Catering and stalls at stations:
- IRCTC will manage catering services in a phased manner; Railway is extending e-catering to all rail stations. IRCTC will make available local cuisine of choice, hygienic food. Travelling mothers, Children’s menu, baby foods, baby boards will be made available.
Women Quota:
- 33 per cent sub-quota for women will be provided under all reserved categories. Railways will also increase the quota of lower berths for women and senior citizens.
Rail Mitra Sewa:
- Strengthening the existing services for enabling passengers to book battery operated cars, porter services, etc. Expanding Sarathi Seva in Konkan Railway to help the disabled and old passengers.
Ticketing:
- Capacity of e-ticketing system has been enhanced from 2000 tickets per min to 7,200 per min Railway introduces 1,780 ticket-vending machines. e-ticket facility for foreign debit, credit card holders
Mobile Applications:
- Integrating all facilities into two mobile apps that will deal with ticketing issues and for receipt and it will also redressal of complaints and suggestions.
Ticketing:
- Capacity of e-ticketing system has been enhanced from 2000 tickets per min to 7,200 per min Railway introduces 1,780 ticket-vending machines. e-ticket facility for foreign debit, credit card holders
Catering and stalls at stations:
- IRCTC will manage catering services in a phased manner; explore possibility of making catering services optional, build local ownership and empowerment. Railway is extending e-catering to all rail stations. IRCTC will make available local cuisine of choice, hygienic food. Travelling mothers, Children’s menu, baby foods, baby boards will be made available.
High Speed Rail:
- From Mumbai to Ahmedabad will be undertaken with the assistance of the Government of Japan. Prime benefit would be providing technology advancements and new manufacturing capability.
Entertainment:
- Invite FM Radio stations for providing train borne entertainment. Extension of ‘Rail Bandhu’ in all regional languages to all reserved classes of travelers.
Building terminal capacity:
- Developing Rail side logistics parks and warehousing in PPP mode, TRANSLOC (Transport Logistics Company of India) will develop 10 goods sheds in 2016-17. India’s first rail auto hub will be inaugurated in Chennai. Rail University will come at Vadodara, Gujarat. Development of cold storage facilities on vacant land near freight terminals in which local farmers and fisherman will be given preferential usage of the facility.
Travel Insurance to passengers:
- Optional travel insurance will be offered for rail journeys at the time of booking.
Rail Development Authority:
- It will be established as statutory body to enable fair pricing of railway services and promote competition, protect customer interests and determine efficiency standards.
Tourism:
(i) Indian Railways will partner with State Governments for operating tourist circuit trains, promotion of tourism through UNESCO world heritage Railways and Railway museums.
(ii) To spread awareness about our National Animal, the Tiger, complete packages including train journey, safaris and accommodation to cover the wildlife circuit comprising Kanha, Pench and Bandhavgarh will be offered.