1. Cabinet approves 4% hike in dearness allowance to central government employees
Tags: Economy/Finance National News
The cabinet has announced a 4% increase in dearness allowance for central government employees and pensioners.
An Overview of the News
With a four per cent increase in DA, the total DA becomes 42 per cent of the basic pay.
The increase in dearness allowance will benefit over 47 lakh central government employees and over 69 lakh pensioners.
The Union Cabinet has approved the release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from January 1, 2023.
The combined impact on the exchequer on account of both dearness allowance and dearness relief would be more than Rs 12 thousand 815 crore per annum.
The increase in Dearness Allowance is as per the approved formula, which is based on the recommendations of the 7th Central Pay Commission.
About Dearness Allowance (DA)
Dearness Allowance (DA) is compensation given to employees to offset the effects of inflation and is calculated as a percentage of an employee's basic salary.
The rate of inflation varies depending on the location, job profile and policies of the organisation.
Dearness Allowance is revised from time to time to keep it relevant and effective.
It aims to provide relief to the employees who are struggling to face the rising cost of living, maintain their standard of living and meet the day to day expenses.
DA is paid in addition to basic pay and is subject to income tax.
2. Income tax dept launches mobile app AIS for Taxpayers
Tags: Economy/Finance National News
The Income Tax Department has launched a free mobile app named 'AIS for Taxpayers'.
An overview of the news
Taxpayers can use the app to view their information related to Tax deducted at Source (TDS), interest, dividends, share transactions, tax payments, Income Tax refunds and other Information.
They can also view GST Data and foreign Remittances as available in Annual Information Statement (AIS).
Taxpayers will also have the option and facility to provide feedback on the information displayed in the app.
Taxpayers can access the information by registering on the app through PAN number, OTP sent to the mobile number and authenticating with the e-mail registered on the e-filing portal.
The app is available on Google Play and App Store.
3. 26th edition of 'Elevate' held in Dubai
Tags: Economy/Finance Summits International News
The sixth pitching session of the second season of Elevate concluded in Dubai 22 March.
An overview of the news
The event saw the participation of six startups from India and the registration of 180 investors.
The six startups that participated in the Elevate session were winners of the National Startup Awards 2022.
Season II to Session VI hosted a special guest, Padmaja Ruparel, Co-Founder, Indian Angel Network (IAN).
She is a member of the Government's NEAC, the National Expert Advisory Committee on Innovation, Incubation and Technology Entrepreneurship.
She shared her insights and thoughts on the opportunities in the growing startup ecosystem in India.
India's Commercial Representative in Dubai Kalimuthu welcomed the guests and set the tone for the programme.
Six startups from India who participated
Film board Movie Technologies inc,
Trascender Services Pvt Ltd,
Cogos Technologies Pvt Ltd,
Changejar Technologies Pvt Ltd,
Makerinme Technologies Pvt Ltd,
Revamp Moto Pvt Ltd
About Elevate
Elevate is a pitching series organized by the Consulate General of India in Dubai, providing a platform for startups to connect with investors and global counterparts.
The first season of Elevate started at the India Pavilion at Expo 2020 Dubai and consisted of twenty sessions.
The second season debuts in May 2022, and this episode marks the sixth installment of the season.
4. UAE’s Emaar first overseas company to start a mega-mall project in Kashmir
Tags: Economy/Finance State News
Emaar, a Dubai-based real estate developer, has become the first foreign company to invest in a mega-mall spread over one million square feet in Srinagar.
An overview of the news
Lieutenant Governor Manoj Sinha on 19 March laid the foundation stone of the mega Mall of Srinagar to be built by Dubai’s Emaar Group at Sempora area of the city.
The project will have a transformative impact on the Union Territory and will boost infrastructure and employment generation.
Emaar Group will invest a total of ₹500 crore, including ₹250 crore for the mega-mall and setting up IT towers in Jammu and Srinagar.
This mega-mall is the first significant Foreign Direct Investment (FDI) in Jammu and Kashmir.
The mall, a joint venture between Emaar and Delhi-based real estate firm Magna Waves Buildtech, is likely to be operational by 2026.
5. Cabinet approves listing of IREDA on Stock Exchanges
Tags: Economy/Finance National News
The Union Government on 18 March approved the listing of the Indian Renewable Energy Development Agency (IREDA) on the stock exchanges.
An overview of the news
The Cabinet Committee on Economic Affairs (CCEA) decided to approve an Initial Public Offer (IPO) by way of partial sale of the government's stake in CPSEs to raise funds by issuing fresh equity shares.
The Department of Investment and Public Asset Management (DIPAM) will carry out the listing process.
Earlier in the year 2017 also IREDA was given approval to bring IPO.
According to the government, in March 2022, it was decided to invest Rs 1500 crore in IREDA.
This has changed the capital structure of the company, due to which it has become necessary to bring an IPO.
Significance of the move
The approval will help the IPO unlock the value of the government's investment and provide an opportunity to the public to own a stake in national assets and earn from it.
This will help IREDA to raise a part of its capital requirement for carrying out development plans without depending on the exchequer.
The move will improve governance through greater market discipline and transparency arising out of listing requirements and disclosures.
Indian Renewable Energy Development Agency (IREDA)
It was incorporated as a Public Limited Company in the year 1987 as a 'Non-Banking Financial Institution'.
It is a Miniratna (Category 1) type company functioning under the administrative control of 'Ministry of New and Renewable Energy, Government of India.
Its function is to encourage projects related to new and renewable energy sources and to provide them financial assistance for their development.
It has been notified as a 'Public Financial Institution' under section 4'A' of the 'Companies Act, 1956'.
Chairman and Managing Director - Pradip Kumar Das
6. Ministry of Steel signs MoU with selected companies under PLI scheme
Tags: Economy/Finance National News
The Ministry of Steel on 17 March signed MoUs with selected companies under the Production-linked Incentive (PLI) scheme for specialty steel in New Delhi.
An overview of the news
India has become a growth center for the future of the steel industry. India will play an important role in this sector in the next two decades.
A total of 57 MoUs were signed with 27 companies during the event.
The production linked incentive scheme aims to boost domestic manufacturing and cut down on import bills by encouraging local companies to set up or expand existing manufacturing units.
Production Linked Incentive (PLI) scheme
It is an initiative that provides incentives to domestic industries to promote production at the local level.
Through this scheme, the government aims to incentivize companies to increase the sales of manufactured products in domestic units.
The objective of the scheme is to make domestic manufacturing globally competitive and to become a global champion in manufacturing.
The government has launched this scheme with an outlay of around Rs 2 lakh crore for 14 sectors including Automobiles and Auto Components, White Goods, Pharma, Textiles, Advanced Chemistry Cell and Specialty Steel.
7. RBI and Central Bank of UAE signed a Memorandum of Understanding (MoU) to promote innovation in financial products and services
Tags: Economy/Finance National News
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The MoU involves both the central banks working together to explore Central Bank Digital Currencies (CBDCs) and examine interoperability between the CBUAE and the CBDCs of the RBI.
An Overview of the News
The cooperation aims to increase efficiency and reduce costs in cross-border transactions, which further the economic ties between India and the UAE.
The MoU also includes technical cooperation and knowledge sharing on matters related to fintech and financial products and services.
The collaboration between RBI and CBUAE is an important step towards fostering innovation and collaboration in the area of FinTech.
The joint exploration of CBDCs and cross-border testing is expected to pave the way for increased efficiency and cost reduction in cross-border transactions, benefiting both India and the UAE.
About Reserve Bank of India (RBI)
The Reserve Bank of India (RBI) was established through the Reserve Bank of India Act 1934 and began operations on April 1, 1935.
The Government of India nationalised the RBI in 1949, and since then it is wholly owned by the government.
Under the Banking Regulation Act of 1949, RBI has the authority to regulate banks in India.
RBI is also empowered to regulate Non-Banking Financial Companies (NBFCs) under the RBI Act of 1934.
The Payment and Settlement Act of 2007 designates the RBI as the regulator for digital payment systems.
The headquarter of RBI is located in Mumbai, India.
8. 3 lakh 61 thousand crore rupees loan given to MSMEs under Emergency Credit Line Guarantee Scheme
Tags: Economy/Finance Government Schemes National News
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Micro, Small and Medium Enterprises (MSMEs) have so far been given a loan of Rs 3 lakh 61 thousand crore under the Emergency Credit Line Guarantee Scheme (ECLGS).
An overview of the news
Minister of State for Finance Dr. Bhagwat Kisanrao Karad gave this information in a written reply to a question in the Lok Sabha on March 14.
He informed that this scheme covers all sectors of the economy.
About Emergency Credit Line Guarantee Scheme
It was announced as part of the Atma Nirbhar Bharat Package in 2020.
Its objective is to help businesses including MSMEs to meet their operational liabilities and resume business in view of the distress caused by the COVID-19 crisis.
It provides 100 percent guarantee to lending institutions for any losses incurred due to non-payment of ECLGS funding by borrowers.
The scheme is under the operational domain of the Ministry of Finance, Department of Financial Services (DFS).
9. IREDA gets ‘Infrastructure Finance Company’ status from RBI
Tags: Economy/Finance National News
The Reserve Bank of India (RBI) has granted an ‘Infrastructure Finance Company (IFC)’ status to Indian Renewable Energy Development Agency (IREDA) on 13 March.
An overview of the news
It was earlier classified as ‘Investment and Credit Company (ICC)’.
With IFC status, IREDA will be able to take higher exposure in renewable energy financing.
The IFC status will help the company access a wider investor base to raise funds, resulting in competitive rates for raising funds.
This will boost investor confidence, enhance brand value and create a positive outlook in the market.
The awarding of IFC status is recognition of IREDA's 36 years of infrastructure financing and renewable energy development.
With IFC status, IREDA will contribute to the government's target of 500 GW of non-fossil fuel installed capacity by 2030.
Indian Renewable Energy Development Agency (IREDA)
It was incorporated as a Public Limited Company in the year 1987 as a 'Non-Banking Financial Institution'.
It is a Miniratna (Category 1) type company functioning under the administrative control of 'Ministry of New and Renewable Energy, Government of India.
Its function is to encourage projects related to new and renewable energy sources and to provide them financial assistance for their development.
It has been notified as a 'Public Financial Institution' under section 4'A' of the 'Companies Act, 1956'.
Chairman and Managing Director - Pradip Kumar Das
10. High Level Committee approves Rs 1,816.162 crore of additional Central assistance to five States
Tags: Economy/Finance National News
A High Level Committee meeting, chaired by Union Home Minister, Amit Shah on 13 March approved Rs 1,816.162 crore of additional Central assistance to five States.
An overview of the news
This additional central assistance has been given under the National Disaster Response Fund (NDRF) to five states affected by floods, landslides, cloud bursts during 2022.
This additional assistance is in addition to the funds released by the Center to the states in the State Disaster Response Fund (SDRF).
During the financial year 2022-23, the central government has released Rs 15,770.40 crore to 25 states in their SDRF and Rs 502.744 crore to 4 states from NDRF.
Additional central assistance to five states
Rs 520.466 crore to Assam
Rs 239.31 crore to Himachal Pradesh
Rs 941.04 crore to Karnataka
Rs 47.326 crore to Meghalaya
Rs 68.02 crore to Nagaland
National Disaster Response Fund (NDRF)
It is a fund managed by the Central Government.
It is used to meet the expenses of emergency response, relief and rehabilitation for any disaster situation.
It was earlier called National Disaster Contingency Fund (NCCF).
In 2005, the Disaster Management Act was enacted and its name was changed to National Disaster Response Fund (NDRF).
NDRF was established in accordance with Section 46 of the Disaster Management Act, 2005.
In June 2020, the Finance Ministry approved a proposal to allow individuals and institutions to contribute directly to the NDRF.
State Disaster Response Funds (SDRF)
It has been constituted under the Disaster Management Act, 2005.
It was constituted on the recommendations of the 13th Finance Commission.
It is the primary fund available with the State Governments to meet the expenditure for providing immediate relief for the response to notified disasters.
The Centre contributes 75% of the SDRF allocation for general category States and Union Territories.
The Centre contributes 90% for special category States and Union Territories (northeastern States, Sikkim, Uttarakhand, Himachal Pradesh, Jammu and Kashmir).
Disaster covered under SDRF are Cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloudburst, pest attack, frost and cold waves.
