1. India and 4 other South Asian countries set up Asian Palm Oil Alliance (APOA)
Tags: Economy/Finance International News
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The five palm oil importing countries of South Asia, India, Pakistan, Bangladesh, Sri Lanka and Nepal have announced the setting up of Asian Palm Oil Alliance (APOA) at Agra, to strengthen their bargaining power and make oil imports sustainable.
IMPORTANT FACTS -
First chairman of the APOA :
- Atul Chaturvedi, President, Solvent Extractors’ Association of India (SEA) has been appointed as the first chairman of the APOA.
Aim of the APOA :
- Elaborating the aim of the APOA, Chaturvedi said that “we aim at safeguarding the economic and business interests of the palm oil consuming countries and will work towards increasing the consumption of palm oil in member countries,”
- He said that membership of APOA would be further expanded to include companies or industry bodies associated with production or refining of palm oil across the continent.
- The next meeting of the APOA is expected to be held in Indonesia early next year.
- India is the largest importer of palm oil in Asia and in the world , accounting for 15% of global imports, followed by China (9%), Pakistan (4%) and Bangladesh (2%).
Palm Oil and India :
- Palm oil is used in a wide variety of products from cooking to making shampoos, breads, Ice creams etc.
- India imports about 8.3 million tonnes of palm oil including crude palm oil (CPO), Palmolein and PFAD (Palm Fatty Acid Distillate),
- Around 4 million tonnes of palm oil comes from Indonesia with Malaysia being the second largest source of palm oil (3.8 million tonnes) and Thailand accounting for the remaining half-a-million tonnes.
- Indonesia and Malaysia jointly produce 84 % of world palm oil.
- The largest producer of palm oil in India is Andhra Pradesh followed by Telangana.
2. ICICI Prudential mutual fund launches India’s first Nifty auto Index
Tags: Economy/Finance
The ICICI Prudential Mutual Fund has launched the country’s first auto index fund, the ICICI Prudential Nifty Auto Index Fund.
The fund will track the Nifty Auto Index which has been designed to reflect the performance of the automobiles sector. The index comprises 15 listed companies and represents auto-related sectors such as auto ancillaries and tyres too.
Nifty is an Index of the National Stock Exchange.
Mutual Funds are regulated by Securities Exchange Board of India (SEBI).
IMPORTANT FACTS -
ICICI Prudential Mutual Fund :
- ICICI Prudential mutual fund is one of the largest Asset management Company in India.
- It is a joint venture of ICICI Bank and United Kingdom’s Prudential Company.
- Chief executive officer: Nimesh Shah
- Headquarters: Mumbai
3. REC becomes the 12th ‘Maharatna’ CPSE
Tags: Economy/Finance
The Department of Department of Public Enterprises, under the Ministry of Finance has issued an order on 22 September 2022, granting the status of a ‘Maharatna’ Central Public Sector Enterprise (CPSE) to the Rural Electrification Corporation (REC). REC is the 12th CPSE to be granted Maharatna status.
Vivek Kumar Dewangan, CMD, REC said that REC achieved this feat owing to its adaptability, resilience, and consistent performance even during the global covid-19 pandemic
IMPORTANT FACTS -
About REC :
- Rural Electrification Corporation is a Non-Banking Finance Company (NBFC) under the Union Ministry of Power.
- It was set up in 1969 and it focuses on Power Sector Financing and Development across India. Its headquarters is in New Delhi.
What is Maharatna CPSE ?
- The Maharatna Scheme was introduced for Central Public Sector Enterprises (CPSEs) by the government of India in 2010 , in order to empower mega CPSEs to expand their operations and emerge as global giants.
- Central Public Sector Enterprises (CPSEs are those companies which are owned by the government of India.
Eligibility Criteria for grant of Maharatna status :
The CPSEs meeting the following criteria are eligible to be considered for grant of Maharatna status.
- Having Navratna status;
- Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations;
- An average annual turnover of more than Rs. 25,000 crore during the last 3 years;
- An average annual net worth of more than Rs. 15,000 crore during the last 3 years;
- An average annual net profit after tax of more than Rs. 5,000 crore during the last 3 years;
- Should have significant global presence/international operations.
Benefits of being a Maharatna :
- Maharatna status grants a company considerable financial and administrative autonomy .
- The Board of a ‘Maharatna’ CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15% of the Net Worth of the concerned CPSE, limited to ₹5,000 crores in one project.
- The Board can also structure and implement schemes relating to personnel and Human Resource Management and Training.
- The company can also enter into technology Joint Ventures or other strategic alliances.
ADDITIONAL INFORMATION -
Maharatna CPSE (as on 22 September 2022) :
- Bharat Heavy Electricals Limited
- Bharat Petroleum Corporation Limited
- Coal India Limited
- GAIL (India) Limited
- Hindustan Petroleum Corporation Limited
- Indian Oil Corporation Limited
- NTPC Limited
- Oil & Natural Gas Corporation Limited
- Power Finance Corporation
- Power Grid Corporation of India Limited
- Rural Electrification Corporation
- Steel Authority of India Limited
4. Sequoia Capital Rajan Anandan appointed as the new chairman of Venture Capital Council
Tags: Economy/Finance Person in news
Sequoia India Managing Director Rajan Anandan has been appointed as the chairman of the eight member VC Council for 2022-24 by the Indian Venture & Alternate Capital Association (IVCA), on 21 September 2022.
IMPORTANT FACTS -
- The Indian Venture & Alternate Capital Association (IVCA) is apex body of the Venture fund and Alternate capital fund in India.
- The council was formed to strengthen governance practices for VCs and start-ups and continue working with government and its agencies to improve the environment for venture capital in India.
- The Venture Capital and Alternate Investment Fund is regulated by Securities Exchange Board of India (SEBI).
5. ADB reduces India’s growth forecast to 7% for 2022-23
Tags: Economy/Finance
The Asian Development Bank (ADB) in its Outlook 2022 Supplement report released on 21 September 2022 has reduced India’s GDP growth forecast to 7% for the financial year 2022-23 from 7.2% projected in July 2022.
The reasons cited by the bank for the lower GDP forecast are the rising inflation and tight monetary policy to be followed by RBI and sluggish global growth.
ADB is the latest financial organization which has reduced the growth prospect of India in the current financial year.
Recently Fitch Ratings also reduced India’s growth rate to 7% from earlier projection of 7.8%
The Asian Development Bank also reduced the overall growth projections for Asia and the Pacific regions due to global challenges.
The report expects China to show an economic growth of 3.3 per cent in 2022.
IMPORTANT FACTS -
Asian Development Bank
- It was set up in 1966.
- Its headquarters is at Mandaluyong City, Manila, Philippines
- Total member countries : 68
- President of ADB : Masatsugu Asakawa of Japan
6. First Advance Estimates of production of major kharif crops released
Tags: National Economy/Finance National News
First Advance Estimates of production of major Kharif crops for 2022-23 have been released by the Ministry of Agriculture and Farmers Welfare on 21 September.
IMPORTANT FACTS -
- According to the Agriculture and Farmers Welfare ministry, foodgrain production of 149.92 million tonnes is estimated in the kharif season.
It is higher by 6.98 million tonnes than the average foodgrain production of previous five years’ from 2016-17 to 2020-21.
The total production of Kharif rice during 2022-23 is estimated to be 104.99 million tonnes, an increase of 4.40 million tonnes over the last five years.
Maize production in the country is estimated to be a record 23.10 million tonnes during 2022-23, which is higher by 3.21 million tonnes than the average maize production of 19.89 million tonnes.
The production of Kharif nut/coarse cereals is estimated at 36.56 million tonnes, which is higher by 2.92 million tonnes than the average production of 33.64 million tonnes.
First Advance Estimates of major kharif crops for 2022-23 :
Foodgrains - 149.92 million tonnes
Rice - 104.99 million tonnes
Nutri / Coarse Cereals - 36.56 million tonnes
Maize - 23.10 million tonnes. (record)
Pulses - 8.37 million tonnes
Tur - 3.89 million tonnes
Oilseeds - 23.57 million tonnes
Groundnut - 8.37 million tonnes
Soyabean - 12.89 million tonnes
Cotton - 34.19 million bales (of 170 kg each)
Jute & Mesta - 10.09 million bales (of 180 kg each)
Sugarcane - 465.05 million tonnes (record)
7. Amazon has chosen Rajasthan for its first its solar power plant in India
Tags: Economy/Finance State News
American e-commerce giant Amazon has announced that it will set up three solar farms in Rajasthan with a combined capacity of 420 megawatt (MW). This will be the first time that Amazon is setting up a solar farm in the country.
IMPORTANT FACTS -
The proposed power plants :
- The power plant will be developed by three companies .ReNew Power will develop 210 MW plant, Amp Energy India will set up 100 Mw and Brookfield Renewable Partners will develop 110 MW power plant .
- Amazon will also set up 23 new solar rooftop projects in 14 cities of India, with a capacity to generate an additional 4.09 MW of power.
Solar Power in India :
- The National Institute of Solar Energy has assessed the Country’s solar potential of about 748 GW.
- The Government of India has set a target to have an installed solar power capacity of 300 GW by 2030.
- According to the Government of India the total installed solar capacity was 48.55 GW at the end of November 2021.
- India has the 5th largest installed solar power capacity in the world after China, United States, Japan and Germany .
8. Bank of Baroda and HDFC Bank to be a service center for Defence ministry SPARSH pension system
Tags: Economy/Finance Defence
The Defence Accounts Department of the Union Ministry of Defence signed a Memorandum of Understanding (MoU) with Bank of Baroda and HDFC Bank, to onboard them as Service Centers under the System for Pension Administration (defence) (SPARSH) initiative on 21 September 2022.
Now defence pensioners having accounts with these banks can get their pension directly in their account.
Speaking on the occasion the defence secretary Dr Ajay Kumar said that the objective is to bring 17 Lakh pensioners out of the total 32 lakh defence pensioners on SPARSH by the end of September, 2022 and the remaining pensioners will be brought to SPARSH at the earliest.
He said that the average time in pension settlement has come down significantly to about 16 days.
IMPORTANT FACTS -
System for Pension Administration (SPARSH) :
- SPARSH is a web-based system for processing the pension claims and crediting the pension directly into the bank accounts of defence pensioners without any external intermediary.
- This system is administered by the Defence Accounts Department through the Principal Controller of Defence Accounts (Pensions), Prayagraj and caters to all the three Services and allied organizations.
9. CEA Nageswaran expects India to grow by 7% in this year and decade
Tags: Economy/Finance Person in news
According to the Chief economic Advisor, V Anantha Nageswaran, the India economy will grow at a sustained rate of 7% in 2023 and for the rest of the decade.
He said this while he was virtually addressing the Global Fintech Fest in Mumbai on 20 September 2022.
IMPORTANT FACTS -
- Nageswaran's forecast is lower than the estimate of 8-8.5% GDP growth rate in the 2022-23 provided by the government's economic survey in January 2022.
- RBI has estimated 7.2 % growth rate for India in 2022-23.
- In 2021-22 the Indian economy grew by 8.7%.
10. SCALE App launched for skill development in leather sector
Tags: place in news Economy/Finance Government Schemes
Union Minister for Education and Skill Development Dharmendra Pradhan launched the SCALE (Skill Certification Assessment for Leather Employees) app at Chennai on 20 September 2022.
He inaugurated the SCALE app while on a visit to the CSIR-Central Leather Research Institute, Chennai.
IMPORTANT FACTS -
The SCALE App
- The app has been developed by the Leather Skill Sector Council. It provides a one-stop solution for the skilling, learning, assessment, and employment needs of the leather industry.
- The app allows people from all age groups interested in leather craft to access online live streamed classes from the state-of-the-art studio of the Leather Skill Sector Council office.
Leather Industry in India :
- India is the second largest producer and consumer of footwear in the world after China.
- The Leather industry in India accounts for around 13% of the world’s leather production.
- The country accounts for 9% of the world’s footwear production.
ADDITIONAL INFORMATION -
The major production centers for leather and leather products in India are located in the states of :
- Tamil Nadu – Chennai, Ambur, Ranipet, Vaniyambadi, Vellore, Pernambut, Trichy, Dindigul and Erode.
- West Bengal – Kolkata.
- Uttar Pradesh – Kanpur, Agra, Noida, Saharanpur
- Maharashtra – Mumbai.
- Punjab – Jalandhar.
- Karnataka – Bangalore.
- Andhra Pradesh – Hyderabad.
- Haryana – Ambala, Gurgaon, Panchkula, Karnal and Faridabad.
- Delhi.
- Madhya Pradesh – Dewas.
- Kerala – Calicut and Ernakulam / Cochin.
- Rajasthan - Jaipur.
- Jammu & Kashmir - Srinagar.
- Data Source: Invest India, Ministry of Commerce and Industry
