1. ADB to provide $125 million loan to improve Urban Services in Tamil Nadu
Tags: Economy/Finance State News
_0mrwbJ6.jpg)
The Asian Development Bank (ADB) will provide USD 125 million loan to India to develop climate-resilient sewage collection and treatment, and drainage and water supply systems in three cities in the state of Tamil Nadu.
In 2018 ADB agreed to provide USD 500 million loan to build priority water supply, sewerage, and drainage infrastructure in strategic industrial corridors across 10 cities in Tamilnadu. The loan amount was to be provided in three tranches. Under the third tranche $125 million will be provided and the amount will be used to build priority water supply, sewerage, and drainage infrastructure in Coimbatore, Madurai and Thoothukudi.
Asian Development Bank (ADB)
It is a regional multilateral financial institution which focuses on the countries of Asia and Pacific region.
At present it has 68 members—of which 49 members are from within Asia and the Pacific and 19 outside.
President of ADB: Masatsugu Asakawa
Headquarters: Mandaluyong City, Manila, Philippines
2. NTPC inks pact with Italy based firm for green methanol production
Tags: Economy/Finance National News
India's largest power generation company 'National Thermal Power Corporation Limited' (NTPC) has signed a non-binding Memorandum of Understanding (MoU) with Technimont Pvt Ltd, the Indian subsidiary of Italy-based Maire Tecnimont Group, on 26 December.
Important facts
The objective of this MoU is to jointly evaluate and explore the possibility of developing a commercial scale green methanol production facility at NTPC's project in India.
This green methanol project involves capturing carbon from NTPC's power plants and converting it into green fuel.
This agreement will make a significant contribution to the energy transformation in India.
Green Methanol
Green methanol has a wide range of applications. It also includes use as a base material for chemical industries, storage of renewable electricity and as a transportation fuel.
It is also considered as a substitute fuel for maritime fuel applications.
The pilot scale green methanol project is in line with NTPC's commitment towards sustainability and renewable energy.
About NTPC
The NTPC which was earlier known as National Thermal Power Corporation of India is owned by the Government of India. It was set up in 1975.
The Vindhyachal Thermal Power Station in the Singrauli district of Madhya Pradesh, with an installed capacity of 4,760MW, is currently the biggest thermal power plant in India.
It is a coal-based power plant owned and operated by NTPC.
The total installed commercial capacity of the company was 69454 MW before the JPL deal.
Headquarters: New Delhi
Chairman and Managing Director: Gurdeep Singh
3. Indian Bank launches its flagship programme 'MSME Prerana 'in Rajasthan
Tags: Economy/Finance State News
Government of India owned Public Sector Bank, Indian Bank has launched its flagship business mentoring program for Micro Small and Medium Enterprises (MSME) entrepreneurs – ‘MSME Prerana’ – in the state of Rajasthan.
“MSME Prerana”, is a first-of-its-kind initiative for the MSME sector in the country by any bank.
It aims at empowering MSME Entrepreneurs through skill development and capacity building training in their local languages, assisting them in acquiring necessary financial and managerial skills, capacity to handle crisis in business, understanding of dynamics of credit rating and risk management.
Micro Small and Medium Enterprises (MSME)
MSMEs are regulated under the 'Micro, Small and Medium
Enterprises Development Act, 2006'. The law had defined MSME in India.
The enterprises or businesses which are engaged in either manufacturing or service sector are defined as Micro Small or Medium enterprises on the basis of their turnover (sales) and investment in plant and machineries.
Micro enterprises
Enterprises with an annual turnover of less than Rs 5 crore and the maximum investment in plant and machinery or equipment shall not be more than one crore rupees.
Small Enterprise:
The enterprises where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees;
Medium Enterprise:
The enterprises where the investment in plant and machinery or equipment does exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
Indian Bank
It is a public sector bank owned by the government of India.
The Indian bank was set up in 1907 as a private sector bank and it was nationalized by the government of India in 1969.
On 1 April 2020 Allahabad bank was merged with Indian Bank.
Bank’s Headquarters: Chennai
MD and CEO of Indian Bank: Shanti Lal Jain
Tagline of the bank: Your own Bank
4. India to become 3rd largest Economy in the world by 2037; CEBR
Tags: Reports Economy/Finance
The United Kingdom based economics consultancy firm Centre for Economics and Business Research (CEBR) has predicted that India will become the third-largest economy by 2037.
Its annual report titled ‘World Economic League Table’ tracks macroeconomic developments globally and countrywise. It presents forecasts for 191 countries of the world.
According to the 14th edition of the report released on 26 December 2022, it says that in the next five years India's annual economic growth is expected to average 6.4%. After that, the growth is expected to average 6.5% in the subsequent nine years.
It expects the Indian economy to grow by 6.8% in 2022-23.
The reported growth trajectory will see India rise from fifth place on the World Economic League Table’ in 2022 to third in the global rankings by 2037 after China and the United States of America.
According to the International Monetary Fund (IMF), India is expected to become the 3rd largest economy in the world by 2027-28. According to the SBI EcoWrap report India is likely to become the 3rd largest economy in 2029.
According to the IMF India is likely to overtake Great Britain and become the 5th largest economy in 2022-23 after the United States, China, Japan and Germany.
5. SBI, ICICI Bank and Axis Bank to launch Rupay based Credit card on UPI platform by March 2023
Tags: Economy/Finance
The leading credit card issuers in India State Bank of India (SBI), ICICI Bank and Axis Bank will soon issue RuPay credit cards on Unified Payment Interface (UPI) by March 2023. At present three Public sector banks Union Bank of India, Punjab National Bank and Indian Bank and private sector Bank HDFC bank have gone live on the RuPay credit card segment on the UPI platform.
In June, the Reserve Bank of India allowed linking of credit cards to UPI, which was thus far being used as a “pay now” facility. The move will provide additional convenience to users and enhance the scope of digital payments.
Credit cards are a type of unsecured loan provided by the banks to its account holder as well as non-account holders for purchasing goods and services. It provides a time period within which if the customer repay the amount then the customer will not have to pay interest to the bank.
RuPay is a technology platform which provides end to end security solutions for online financial transactions. RuPay does not provide credit cards. Credit cards can be issued only by banks in India. When a person uses a RuPay credit card issued by a bank then the bank will use the technology network of RuPay. Here RuPay is responsible for the end to end technology connection so that the transaction is done smoothly. The bank pays Ru Pay for every transaction done
RuPay and UPI has been developed by the National Payment Corporation of India. At the present moment transactions done on UPI are free and there are no charges levied on it.
6. RBI's revised bank locker rules to come into effect from 1st of January
Tags: Economy/Finance National News
The Reserve Bank of India (RBI) has amended the bank locker rules, which include providing customers with updated locker agreements. The rules will take effect from January 1, 2023.
What are the new guidelines?
- As per the Reserve Bank of India notification, the agreements should follow the model prepared by the Indian Banks' Association (IBA).
- All existing locker depositors are required to submit proof of eligibility for new locker arrangement.
- They need to sign a renewal agreement before the specified date.
- RBI has advised banks to install CCTV cameras at entry and exit points of strong rooms and common areas of operations.
- It will be mandatory for all banks to keep the recording of cameras safe for at least one hundred and eighty days.
- RBI has directed banks to ensure that there are no unfair provisions or conditions in bank agreements.
- As per the guidelines, if a customer makes a complaint to the bank about his locker being opened without his knowledge or any theft or security lapse, the bank will be required to preserve the CCTV recording till the completion of the police investigation and disposal of the case.
7. Railways plans to modernise 1,000 small stations under Amrit Bharat Station Scheme
Tags: National Economy/Finance Government Schemes
The Indian Railway will launch the “Amrit Bharat Station Scheme” under which 1000 small but important stations will be modernized. This scheme is different from the ongoing plan to revamp 200 railway stations.
According to the Indian Railways the stations will be selected not only on the passenger traffic but also on the cites they cater to. These stations will be redeveloped under what is called the ''Khurda model of redevelopment''.
Khurda station in Odisha was modernized for Rs 4 crore with all contemporary amenities for passengers. The main structure was renovated, the facade was redone and the number of railway tracks was also increased.
Under the “Amrit Bharat Station Scheme” the Divisional Railway Managers will be responsible for the redevelopment of the railway station. The DRMs have been instructed to review existing buildings in the station premises and release space for passengers near the entrances and enable relocation of rail offices to other places.
Modernisation of these stations would include improved station approaches to ensure smooth access by widening roads, removal of unwanted structures, properly designed signages, dedicated pedestrian pathways, well-planned parking areas, and improved lighting among others.
The station should also have a second entry station building and high-level platforms with a length of 600m.
Union Railway Minister: Ashwini Vaishnaw
8. PAN not linked with Aadhaar by end of March 2023 to be rendered inoperative: Income Tax Department
Tags: Economy/Finance
The Income Tax department on 24 December 2022 issued an advisory that those permanent account numbers (PAN) which are not linked with Aadhaar by the end of March next year will be rendered "inoperative".
According to the Income Tax department "As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with Aadhaar before 31 March 2023. From 1 April 2023, the unlinked PAN shall become inoperative,”
Exempt category
According to a notification issued by the Union Finance Ministry in May 2017, following persons are exempt from linking their PAN with Aadhaar;
- Individuals residing in the states of Assam, Jammu and Kashmir and Meghalaya;
- a non-resident as per the Income-tax Act, 1961;
- Person of the age of 80 years or more at any time during the previous year and a
- Person not a citizen of India.
Consequence of a PAN becoming inoperative
A circular issued by the Central Board of Direct Taxes (CBDT) on 30 March 2022 said once a PAN becomes inoperative, an individual shall be liable to all the consequences under the I-T Act and will have to suffer a number of implications.
- The person shall not be able to file I-T return using the inoperative PAN;
- pending tax returns will not be processed;
- pending tax refunds cannot be issued to inoperative PANs;
- Pending proceedings as in the case of defective returns cannot be completed once the PAN is inoperative and tax will be required to be deducted at a higher rate.
- The taxpayer might face difficulty at various other fora like banks and other financial portals as PAN is one of the important KYC (know your customer) criteria for all kinds of financial transactions.
While the 12 digit Aadhaar is issued by the Unique Identification Authority of India to a resident of India, PAN is a 10-digit alphanumeric number allotted by the Income Tax department to a person, firm or entity.
9. International Financial Corporation provides $400 million loan to HDFC to promote green housing
Tags: Economy/Finance
World Bank Group member International Financial Corporation (IFC) will provide a $400 million loan to India’s largest housing finance company, Housing Development Finance Corporation (HDFC).
HDFC will use around 75% of the loan amount ($300 million) to provide loans to the affordable green housing sectors in India.
Green Houses are built with sustainable, environmentally-friendly, energy-efficient, and recyclable resources. These houses are constructed in such a way that water, air, solar, and geothermal energy are optimally utilized, thus reducing energy waste. Affordable houses means that it will target Middle income groups.
According to the IFC “around 275 million people in India, which is 22 percent of the population, do not have access to adequate housing and rural housing shortage is twice that of urban areas.” The loan will support the government effort to provide Housing for All.
Mumbai based HDFC is the first specialized housing finance company in India. Incorporated in 1997, it provides finance to individuals and developers for the purchase, construction, development and repair of houses and commercial properties.
Current chairman: Deepak Parekh
International Finance Corporation
It is a part of the World Bank Group and was set up in 1956.
It does not provide loans to the government but invests in the private sector companies of the member countries. It invests in the shares and the debt instruments of private companies.
Headquarters: Washington DC, United States of America.
Director General: Makhtar Diop
Member Countries: 186
10. CCEA increases the Minimum Support prices for copra for 2023 season
Tags: National Economy/Finance
The Cabinet Committee on Economic Affairs(CCEA) chaired by the Prime Minister Narendra Modi on 23 December 2022 has approved an increase in the Minimum Support Prices (MSPs) for copra for 2023 season. The approval is based on recommendations of the Commission for Agricultural Costs and Prices (CACP).
The MSP for Fair Average Quality of milling copra has been fixed at Rs. 10860/- per quintal and for ball copra at Rs. 11750/- per quintal for 2023 season. This is an increase of Rs. 270/- per quintal for milling copra and Rs. 750/- per quintal for ball copra over the previous season.
The announced MSP of copra for 2023 season is in line with the principle of fixing the MSP at a level of at least 1.5 times all India weighted average cost of production as announced by the Government in the Budget 2018-19.
National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and National Cooperative Consumers’ Federation (NCCF) will continue to act as Central Nodal Agencies for procurement of copra and de-husked coconut under Price Support Scheme (PSS).
Price Support Scheme
- It has been launched by the government of India.
- Under this scheme when the prices of commodities fall below the Minimum Support price (MSP) , state and central notified procurement nodal agencies purchase commodities directly from the farmers at MSP under specified Fair Average Quality,
- This helps and protects the farmers against the economic loss in farming.
