General Affairs
Armed Forces Apolitical: Government In Lok Sabha
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The armed forces are "apolitical", the government today asserted in the Lok Sabha, weeks after Army chief Bipin Rawat's comment that the All India United Democratic Front (AIUDF) was growing faster than the BJP in Assam sparked a row.
"Armed forces in India are apolitical," Subhash Bhamre, Minister of State in the Defence Ministry, said in a written response to a question in Parliament.
BJP MPs Manoj Rajoria and Raghav Lakhanpal had asked the government if it was aware of any "attempts at the politicisation of the armed forces".
Mr Rawat's remarks last month that the All India United Democratic Front (AIUDF) had been growing faster than the BJP in Assam because of the support of Muslims, with Pakistan and China pushing Bangladeshi migrants into the northeastern part of the country to destabilise India, had stoked a political controversy.
AIUDF chief Badruddin Ajmal had then tweeted, "By making such a statement, the Army chief has indulged in politics which is against the constitutional mandate given to him."
"Armed forces in India are apolitical," Subhash Bhamre, Minister of State in the Defence Ministry, said in a written response to a question in Parliament.
BJP MPs Manoj Rajoria and Raghav Lakhanpal had asked the government if it was aware of any "attempts at the politicisation of the armed forces".
Mr Rawat's remarks last month that the All India United Democratic Front (AIUDF) had been growing faster than the BJP in Assam because of the support of Muslims, with Pakistan and China pushing Bangladeshi migrants into the northeastern part of the country to destabilise India, had stoked a political controversy.
AIUDF chief Badruddin Ajmal had then tweeted, "By making such a statement, the Army chief has indulged in politics which is against the constitutional mandate given to him."
Sale Of Gutka To Be Non-Bailable Offence In Maharashtra
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The Maharashtra government today told the Legislative Council that sale of gutka, banned in the state, would be made a non-bailable offence.
Punishment for the offence would be enhanced to three years in prison, the government said.
Leader of Opposition Dhananjay Munde alleged through a calling attention motion that though anti-gutka laws are in place, gutka -- a scented tobacco mix -- is smuggled from neighbouring states.
Smuggling happens with connivance of corrupt officials in the Food and Drug Administration (FDA), the NCP leader alleged, demanding an inquiry by the Criminal Investigation Department.
In response, Minister of State for Food and Drug Administration Madan Yerawar said gutka is manufactured in other states where it is not banned, and the Maharashtra FDA, since 2012-13, has seized gutka worth Rs. 114.2 crore.
Mr Munde said Maharashtra has the highest number of youth falling prey to cancer due to chewing of gutka. He demanded inquiry into continuing sale of gutka despite the ban.
FDA minister Girish Bapat said that currently the sale of gutka is a bailable offence with a punishment of a maximum of six months in prison.
The government has held discussions with the Director General of Police and the Law and Judiciary Department, and will make the offence non-bailable, he said.
"The centre has given us the permission to do so. Once the technicalities are sorted out (and the amendment made), those found guilty will have to face a rigorous imprisonment for three years," the senior minister said.
An inquiry by the vigilance squad of the FDA is underway into illegal sale of gutka, and the government will order a CID probe if the Leader of Opposition is still not satisfied with its report when it comes out, Mr Bapat assured.
Punishment for the offence would be enhanced to three years in prison, the government said.
Leader of Opposition Dhananjay Munde alleged through a calling attention motion that though anti-gutka laws are in place, gutka -- a scented tobacco mix -- is smuggled from neighbouring states.
Smuggling happens with connivance of corrupt officials in the Food and Drug Administration (FDA), the NCP leader alleged, demanding an inquiry by the Criminal Investigation Department.
In response, Minister of State for Food and Drug Administration Madan Yerawar said gutka is manufactured in other states where it is not banned, and the Maharashtra FDA, since 2012-13, has seized gutka worth Rs. 114.2 crore.
Mr Munde said Maharashtra has the highest number of youth falling prey to cancer due to chewing of gutka. He demanded inquiry into continuing sale of gutka despite the ban.
FDA minister Girish Bapat said that currently the sale of gutka is a bailable offence with a punishment of a maximum of six months in prison.
The government has held discussions with the Director General of Police and the Law and Judiciary Department, and will make the offence non-bailable, he said.
"The centre has given us the permission to do so. Once the technicalities are sorted out (and the amendment made), those found guilty will have to face a rigorous imprisonment for three years," the senior minister said.
An inquiry by the vigilance squad of the FDA is underway into illegal sale of gutka, and the government will order a CID probe if the Leader of Opposition is still not satisfied with its report when it comes out, Mr Bapat assured.
Yamuna Reduced To Sewer Line In Delhi, Says National Green Tribunal
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The National Green Tribunal today slammed the Delhi Jal Board (DJB) over its submission that Haryana was responsible for the high levels of ammonia in the Yamuna water being provided to the national capital and observed that the river has been reduced to a sewer line in the city.
Asking the DJB what it has done to clean the Yamuna water, a bench headed by Justice Jawad Rahim made it clear to the body that it was only concerned with the pollution in the river and would not go into the issue of water sharing dispute between the two states.
"Why are you picking up things here and there? We are only concerned with the pollution in Yamuna. You are coming up with a new plea each time. We are interested in the entire stretch of river Yamuna and not confined to segments. We are not going to compartmentalise the Yamuna as it is all one ecosystem.
"You want Haryana to give you more water for dilution of the pollutants in the river but show us what have you done. Yamuna in your territory has become a sewer line," the bench observed.
During the proceedings, which went for over an hour, senior advocate H S Phoolka, appearing for the DJB, said that Haryana should be directed to release more water in river Yamuna and it should be asked to treat the water being supplied to the national capital.
He said there was serious scarcity of the water in the national capital for drinking purposes and an immediate direction should be given to all the industries which are causing pollution in river Yamuna either in Haryana or Delhi.
The counsel for the Haryana government, however, opposed the submission and said the DJB should increase the capacity of water treatment plants instead of playing the blame game.
He alleged that he DJB has not complied with the tribunal's order as its chief secretary has not participated in the meeting to resolve the issue.
The hearing remained inconclusive and will continue on March 9.
Earlier, the tribunal had directed the Haryana government to submit an action plan to address the issue of ammonia and other pollutants in river Yamuna.
The green panel had asked it to file an affidavit stating short and long term measures which it proposes to combat the pollution in the river.
The NGT had directed the Delhi and Haryana governments to identify and address the sources of pollution in river Yamuna.
It had also ordered Delhi and Haryana governments to hold a meeting to resolve the issue of high ammonia content in the water being provided to the national capital.
The Delhi Jal Board (DJB) had moved a plea in the tribunal plea alleging high ammonia in water being provided by the Haryana government to Delhi.
The Central Pollution Control Board (CPCB) had submitted its analysis report of ammonia at Tajewala in Haryana, Wazirabad water treatment plant, Okhla and ITO barrage in Delhi.
According to the report, ammonia level at Hathnikund Barrage 0.6 mg per litre, 1.9 mg per litre at Wazirabad, 24.9 at ITO barrage on February 14 while at Okhla water treatment plant it was 0.8 mg per litre on February 15.
Acting on concerns over the health of the people of Delhi, the tribunal had directed the CPCB to analyse the samples of Yamuna water at the four points on DJB's plea alleging high ammonia content in the water being provided by Haryana to Delhi.
While the DJB had alleged that Haryana was supplying "poisoned sewage water" to the national capital which had 2.6 parts per million of ammonia, the counsel for Haryana had refuted the contention and said there was no breach of any agreement.
The DJB, which supplies water to the city, had approached the tribunal demanding that Haryana be asked to take urgent steps to check the "dangerous level of ammonia" in river Yamuna.
Claiming that the water being released by the state was so polluted that it cannot be treated for drinking, the DJB had said it may cause "a huge and irreparable loss to the citizens of Delhi and has a potential for a grave health crisis and water crisis in the National Capital Region (NCR)."
The petition also claimed that when the water enters Haryana, the ammonia level is nil and very much treatable, whereas when the water enters Delhi, the level is very high.
Asking the DJB what it has done to clean the Yamuna water, a bench headed by Justice Jawad Rahim made it clear to the body that it was only concerned with the pollution in the river and would not go into the issue of water sharing dispute between the two states.
"Why are you picking up things here and there? We are only concerned with the pollution in Yamuna. You are coming up with a new plea each time. We are interested in the entire stretch of river Yamuna and not confined to segments. We are not going to compartmentalise the Yamuna as it is all one ecosystem.
"You want Haryana to give you more water for dilution of the pollutants in the river but show us what have you done. Yamuna in your territory has become a sewer line," the bench observed.
During the proceedings, which went for over an hour, senior advocate H S Phoolka, appearing for the DJB, said that Haryana should be directed to release more water in river Yamuna and it should be asked to treat the water being supplied to the national capital.
He said there was serious scarcity of the water in the national capital for drinking purposes and an immediate direction should be given to all the industries which are causing pollution in river Yamuna either in Haryana or Delhi.
The counsel for the Haryana government, however, opposed the submission and said the DJB should increase the capacity of water treatment plants instead of playing the blame game.
He alleged that he DJB has not complied with the tribunal's order as its chief secretary has not participated in the meeting to resolve the issue.
The hearing remained inconclusive and will continue on March 9.
Earlier, the tribunal had directed the Haryana government to submit an action plan to address the issue of ammonia and other pollutants in river Yamuna.
The green panel had asked it to file an affidavit stating short and long term measures which it proposes to combat the pollution in the river.
The NGT had directed the Delhi and Haryana governments to identify and address the sources of pollution in river Yamuna.
It had also ordered Delhi and Haryana governments to hold a meeting to resolve the issue of high ammonia content in the water being provided to the national capital.
The Delhi Jal Board (DJB) had moved a plea in the tribunal plea alleging high ammonia in water being provided by the Haryana government to Delhi.
The Central Pollution Control Board (CPCB) had submitted its analysis report of ammonia at Tajewala in Haryana, Wazirabad water treatment plant, Okhla and ITO barrage in Delhi.
According to the report, ammonia level at Hathnikund Barrage 0.6 mg per litre, 1.9 mg per litre at Wazirabad, 24.9 at ITO barrage on February 14 while at Okhla water treatment plant it was 0.8 mg per litre on February 15.
Acting on concerns over the health of the people of Delhi, the tribunal had directed the CPCB to analyse the samples of Yamuna water at the four points on DJB's plea alleging high ammonia content in the water being provided by Haryana to Delhi.
While the DJB had alleged that Haryana was supplying "poisoned sewage water" to the national capital which had 2.6 parts per million of ammonia, the counsel for Haryana had refuted the contention and said there was no breach of any agreement.
The DJB, which supplies water to the city, had approached the tribunal demanding that Haryana be asked to take urgent steps to check the "dangerous level of ammonia" in river Yamuna.
Claiming that the water being released by the state was so polluted that it cannot be treated for drinking, the DJB had said it may cause "a huge and irreparable loss to the citizens of Delhi and has a potential for a grave health crisis and water crisis in the National Capital Region (NCR)."
The petition also claimed that when the water enters Haryana, the ammonia level is nil and very much treatable, whereas when the water enters Delhi, the level is very high.
India Tightens Curbs On Trade With North Korea
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The government has imposed new restrictions on trade with North Korea, an official statement said on Wednesday, in line with UN Security Council sanctions slapped on the reclusive country for its nuclear and missile programmes.
New Delhi has been cutting back on trade with North Korea but has maintained diplomatic links. It has given food aid in the past, but even that has been brought down to the minimum.
The new restrictions were mainly on "new or used vessels", food and farm products, electrical equipment and wood, the government said in the statement.
Curbs have also been toughened on the export of industrial machinery, transportation vehicles, iron, steel and other metals.
Washington has been leading diplomatic efforts to ramp up international pressure on North Korea. The US State Department said on Tuesday it had imposed the new sanctions.
Tensions had risen to the highest level in years over North Korea's weapons programmes, which it pursues in defiance of U.N. Security Council resolutions, with bellicose rhetoric coming from both North Korean leader Kim Jong Un and US President Donald Trump.
North Korea has boasted of its plans to develop a nuclear-tipped missile capable of reaching the mainland United States. But fears of all-out war eased last month, coinciding with North Korea's participation in the Winter Olympics in the South.
North Korea seems "sincere" in its apparent willingness to halt nuclear tests if it holds denuclearisation talks with the United States, Trump said on Tuesday, as US, South Korean and Japanese officials voiced scepticism.
New Delhi has been cutting back on trade with North Korea but has maintained diplomatic links. It has given food aid in the past, but even that has been brought down to the minimum.
The new restrictions were mainly on "new or used vessels", food and farm products, electrical equipment and wood, the government said in the statement.
Curbs have also been toughened on the export of industrial machinery, transportation vehicles, iron, steel and other metals.
Washington has been leading diplomatic efforts to ramp up international pressure on North Korea. The US State Department said on Tuesday it had imposed the new sanctions.
Tensions had risen to the highest level in years over North Korea's weapons programmes, which it pursues in defiance of U.N. Security Council resolutions, with bellicose rhetoric coming from both North Korean leader Kim Jong Un and US President Donald Trump.
North Korea has boasted of its plans to develop a nuclear-tipped missile capable of reaching the mainland United States. But fears of all-out war eased last month, coinciding with North Korea's participation in the Winter Olympics in the South.
North Korea seems "sincere" in its apparent willingness to halt nuclear tests if it holds denuclearisation talks with the United States, Trump said on Tuesday, as US, South Korean and Japanese officials voiced scepticism.
Despite Doklam, India-China Trade Hits Historic High Of $ 84 Billion
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The India-China bilateral trade has reached $ 84.44 billion last year, an historic high notwithstanding bilateral tensions over a host of issues including the Doklam standoff.
A rare novelty of the bilateral trade otherwise dominated by the Chinese exports was about 40 per cent increase of Indian exports to China in 2017 totalling to $ 16.34 billion, data of the Chinese General Administration of Customs accessed by PTI here showed.
The bilateral trade in 2017 rose by 18.63 per cent year-on-year to reach $ 84.44 billion. It is regarded as a landmark as the volume of bilateral trade for the first time touched $ 80 billion, well above the $ 71.18 billion registered last year.
The trade touched historic high despite bilateral tensions over a number of issues including the China-Pakistan Economic Corridor, China blocking India's efforts to bring about a UN ban on Jaish-e-Muhammad leader Masood Azhar, Beijing blocking India's entry into the Nuclear Suppliers Group (NSG) as well as the longest military standoff at Doklam lasting 73 days.
The bilateral trade stagnated around $ 70 billion for several years despite the leaders of both the countries setting $ 100 billion as target for 2015.
Though it is still about $ 20 billion short, officials on both sides expect trade and Chinese investments in India to pick up further this year as both the governments are trying to scale down tensions and step-up the normalisation process.
Prime Minister Narendra Modi is expected to visit China in June this year to take part in the Shanghai Cooperation Organisation (SCO) summit in Qingdao. Reciprocal visits by Chinese leaders too were expected to take place this year.
There were also expectations that the new Commerce Minister of China to be named later this week in government reshuffle was expected to visit India in the coming weeks for talks to improve bilateral trade.
While the bilateral trade reached a new landmark, the trade deficit too continues to remain high at USD 51.75 billion- registering a growth of 8.55 per cent year-on-year in 2017.
According to India's trade figures, the deficit had crossed USD 52 billion last year. India has been pressing China to open the IT and Pharmaceutical sectors for Indian firms to reduce the massive trade deficit.
As per the Chinese trade data, India's exports to China increased by 39.11 per cent year-on-year to $ 16.34 billion last year. India's imports from China increased by 14.59 per cent to $ 68.10 billion.
India has emerged as the seventh largest export destination for Chinese products, and the 24th largest exporter to China.
Significantly, diamonds along with copper, iron ore, organic chemicals and cotton yarn contributed to the increase Indian exports to China.
India's exports of diamonds grew 4.93 per cent totalling to $ 2.59 billion. India was the second largest exporter of diamonds to China with a market share of 33.06 per cent after South Africa.
Also, Indian exports of copper registered a significant increase of 115.78 per cent to reach $ 2.15 billion.
India's cotton including yarn and woven fabric exports to China showed an increase of 1.86 per cent to reach $ 1.30 billion. India was the second largest exporter of cotton to China with 15.04 per cent market share last year.
India's exports of Zinc to China showed a sharp increase of 802 per cent to reach $ 240 million.
China's exports on the other hand were dominated by electrical machinery and equipment registering an increase of 28.23 percent to $ 21.77 billion.
India was the largest destination for China's Fertilizers exports registering 16.98 per cent of its total Fertilizers worth $ 1.03 billion to India.
India was also the largest export destination for Chinese Antibiotics- with exports worth $ 783 million taking place in 2017.
A rare novelty of the bilateral trade otherwise dominated by the Chinese exports was about 40 per cent increase of Indian exports to China in 2017 totalling to $ 16.34 billion, data of the Chinese General Administration of Customs accessed by PTI here showed.
The bilateral trade in 2017 rose by 18.63 per cent year-on-year to reach $ 84.44 billion. It is regarded as a landmark as the volume of bilateral trade for the first time touched $ 80 billion, well above the $ 71.18 billion registered last year.
The trade touched historic high despite bilateral tensions over a number of issues including the China-Pakistan Economic Corridor, China blocking India's efforts to bring about a UN ban on Jaish-e-Muhammad leader Masood Azhar, Beijing blocking India's entry into the Nuclear Suppliers Group (NSG) as well as the longest military standoff at Doklam lasting 73 days.
The bilateral trade stagnated around $ 70 billion for several years despite the leaders of both the countries setting $ 100 billion as target for 2015.
Though it is still about $ 20 billion short, officials on both sides expect trade and Chinese investments in India to pick up further this year as both the governments are trying to scale down tensions and step-up the normalisation process.
Prime Minister Narendra Modi is expected to visit China in June this year to take part in the Shanghai Cooperation Organisation (SCO) summit in Qingdao. Reciprocal visits by Chinese leaders too were expected to take place this year.
There were also expectations that the new Commerce Minister of China to be named later this week in government reshuffle was expected to visit India in the coming weeks for talks to improve bilateral trade.
While the bilateral trade reached a new landmark, the trade deficit too continues to remain high at USD 51.75 billion- registering a growth of 8.55 per cent year-on-year in 2017.
According to India's trade figures, the deficit had crossed USD 52 billion last year. India has been pressing China to open the IT and Pharmaceutical sectors for Indian firms to reduce the massive trade deficit.
As per the Chinese trade data, India's exports to China increased by 39.11 per cent year-on-year to $ 16.34 billion last year. India's imports from China increased by 14.59 per cent to $ 68.10 billion.
India has emerged as the seventh largest export destination for Chinese products, and the 24th largest exporter to China.
Significantly, diamonds along with copper, iron ore, organic chemicals and cotton yarn contributed to the increase Indian exports to China.
India's exports of diamonds grew 4.93 per cent totalling to $ 2.59 billion. India was the second largest exporter of diamonds to China with a market share of 33.06 per cent after South Africa.
Also, Indian exports of copper registered a significant increase of 115.78 per cent to reach $ 2.15 billion.
India's cotton including yarn and woven fabric exports to China showed an increase of 1.86 per cent to reach $ 1.30 billion. India was the second largest exporter of cotton to China with 15.04 per cent market share last year.
India's exports of Zinc to China showed a sharp increase of 802 per cent to reach $ 240 million.
China's exports on the other hand were dominated by electrical machinery and equipment registering an increase of 28.23 percent to $ 21.77 billion.
India was the largest destination for China's Fertilizers exports registering 16.98 per cent of its total Fertilizers worth $ 1.03 billion to India.
India was also the largest export destination for Chinese Antibiotics- with exports worth $ 783 million taking place in 2017.
Business Affairs
Cabinet relief package for telecom sector to attract investment, enhance ease of doing business
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The Union Cabinet gave its nod to a relief package for the stressed telecom sector in India. During its meeting on Wednesday, the government agreed to allow more time to the telecom operators to pay for the spectrum bought in auctions, and relax the spectrum holding limit for telecom companies.
"The Union Cabinet chaired by Prime Minister Narendra Modi has approved two key measures in the telecom sector to facilitate investments, consolidation in the sector, and enhancing ease of doing business. These include restructuring the deferred payment liabilities of the spectrum auction of telecom service providers and revising the limit of the cap for spectrum holding for telecom service providers," an official statement said.
According to the new decision, the telecom operators will have a one-time opportunity to pay for the spectrum bought in auction within 16 years instead of the present limit of 10 years. Till now, a portion of spectrum auction amount was taken as upfront payment by the Department of Telecom (DoT). The balance, after a two-year moratorium, used to be paid out in 10 annual instalments.
The government expects to receive more than Rs 74,446 crore from this move by 2034-35. Restructuring the deferred payment liability will increase the cash flow for the telecom service providers in the immediate timeframe, providing them some relief.
The Cabinet, based on recommendations from the Telecom Commission and Trai, has agreed to remove every ceiling for individual or combined spectrum holding in above 1 GHz band. A cap of 50 per cent has been imposed on combined holding of sub-1GHz bands. The overall spectrum cap is revised from the current limit of 25 per cent to 35 per cent, a government statement said.
The revised spectrum caps limits may be revisited after Final Acts of World Radio-communication Conference (WRC) 2019. Revising the limit for spectrum holding is likely to facilitate consolidation of telecom operators and may encourage their participation in future auctions.
These decisions were taken on the basis of recommendations from the Inter-Ministerial Group (IMG) on the telecom sector. The group was formed in 2017 to come up with policy reforms and strategic interventions for the telecom sector, which has been going through a rough patch. The sector has been battered with decline in tariffs, falling profitability, and rising debt. Predatory pricing from new entrant Reliance Jio had made matters worse for other players.
The IMG had held eight meetings over a period of several months, but in its recommendations it had stayed away from suggesting overly disruptive reforms. Instead, its recommendations focused on easing the short-term pain points to give the sector time to rework its investments and business strategy.
The Indian telecom industry, which is locked in an intense tariff war, owes a staggering Rs 4.6-lakh crore to various financial institutions and banks. At the same time, large operators have been flagging pressure on revenue and profitability, blaming the rock-bottom data tariffs and free offerings of newcomer Reliance Jio for deteriorating financial health of the sector.
Telecom operators have traded charges on multiple occasions, blaming each other for the sector's financial difficulties. Reliance Jio accused incumbent operators of milking the sector using borrowed money while older players (Airtel, Vodafone and Idea) blamed free voice and data offering by the Mukesh Ambani's telecom firm for bleeding the sector.
"The Union Cabinet chaired by Prime Minister Narendra Modi has approved two key measures in the telecom sector to facilitate investments, consolidation in the sector, and enhancing ease of doing business. These include restructuring the deferred payment liabilities of the spectrum auction of telecom service providers and revising the limit of the cap for spectrum holding for telecom service providers," an official statement said.
According to the new decision, the telecom operators will have a one-time opportunity to pay for the spectrum bought in auction within 16 years instead of the present limit of 10 years. Till now, a portion of spectrum auction amount was taken as upfront payment by the Department of Telecom (DoT). The balance, after a two-year moratorium, used to be paid out in 10 annual instalments.
The government expects to receive more than Rs 74,446 crore from this move by 2034-35. Restructuring the deferred payment liability will increase the cash flow for the telecom service providers in the immediate timeframe, providing them some relief.
The Cabinet, based on recommendations from the Telecom Commission and Trai, has agreed to remove every ceiling for individual or combined spectrum holding in above 1 GHz band. A cap of 50 per cent has been imposed on combined holding of sub-1GHz bands. The overall spectrum cap is revised from the current limit of 25 per cent to 35 per cent, a government statement said.
The revised spectrum caps limits may be revisited after Final Acts of World Radio-communication Conference (WRC) 2019. Revising the limit for spectrum holding is likely to facilitate consolidation of telecom operators and may encourage their participation in future auctions.
These decisions were taken on the basis of recommendations from the Inter-Ministerial Group (IMG) on the telecom sector. The group was formed in 2017 to come up with policy reforms and strategic interventions for the telecom sector, which has been going through a rough patch. The sector has been battered with decline in tariffs, falling profitability, and rising debt. Predatory pricing from new entrant Reliance Jio had made matters worse for other players.
The IMG had held eight meetings over a period of several months, but in its recommendations it had stayed away from suggesting overly disruptive reforms. Instead, its recommendations focused on easing the short-term pain points to give the sector time to rework its investments and business strategy.
The Indian telecom industry, which is locked in an intense tariff war, owes a staggering Rs 4.6-lakh crore to various financial institutions and banks. At the same time, large operators have been flagging pressure on revenue and profitability, blaming the rock-bottom data tariffs and free offerings of newcomer Reliance Jio for deteriorating financial health of the sector.
Telecom operators have traded charges on multiple occasions, blaming each other for the sector's financial difficulties. Reliance Jio accused incumbent operators of milking the sector using borrowed money while older players (Airtel, Vodafone and Idea) blamed free voice and data offering by the Mukesh Ambani's telecom firm for bleeding the sector.
UltraTech moves NCLT questioning the rejection of its bid for Binani Cements
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NCLT-appointed resolution professionals are not a popular lot these days. Last month, UK-based Liberty House had moved the NCLT against the rejection of its bid for Bhushan Power and Steel by the Committee of Creditors arguing that the late submission of its bid was because the IRP did not intimate them about the deadline. This case will be heard tomorrow. And yesterday, UltraTech Cement, an Aditya Birla Group company, approached the bankruptcy court questioning the rejection of its bid for Binani Cement Ltd.
According to a Business Standard report, UltraTech had earlier served a notice to the resolution professional asking for details on the weight given to its bid compared to the winning bid. Last week, a Dalmia Bharat-Bain Piramal Resurgence Fund consortium had emerged victorious in the race for the beleaguered cement company. A source close to UltraTech told the daily that the company had not received any communication from the resolution professional barring a single-line email saying that its bid was rejected. "There was no transparency over how the bids were evaluated and why the UltraTech bid was rejected," the report quoted the source as saying.
To remind you, Bank of Baroda had dragged Binani Cement to NCLT last July after it failed to repay a loan of over Rs 97 crore debt - the total debt stands at Rs 3,884 crore - and the insolvency resolution process was being overseen by Deloitte's Vijaykumar Iyer. Apart from the Dalmia-led group and UltraTech, four other players had thrown their hats in the ring - Ramco Cement, Heidelberg, stockbroker Rakesh Jhunjhunwala and JSW Cement. The latter had won the first round, but the resolution professional had to call for rebids after new Binani liabilities emerged.
The report added that while Dalmia offered Rs 63 billion (approximately Rs 6,300 crore), UltraTech's offer was Rs 1 billion (Rs 100 crore) less. Since both bids were in the same range, UltraTech reportedly felt that the committee of creditors ought to have given both parties a chance to modify their offers. "UltraTech's offer was Rs 1 billion less, but that could have been matched with the Dalmia offer. Besides the Dalmia offer does not take care of over 3,000 unsecured creditors and small suppliers, while UltraTech offered to take care of all suppliers," the source claimed. While UltraTech offered a 30 percent haircut to all unsecured lenders, Dalmia's resolution plan offered to settle with only one unsecured lender, IDBI Bank. The hearing is expected to take place later this week.
Binani Industries, which holds 98 percent share capital of Binani Cements, is equally unhappy with Iyer. Last month the parent firm approached the Kolkata bench of NCLT alleging that the resolution professional had a "personal interest" in undervaluing the cement company so that it could be given to their "favourite company" and pegged the value of the beleaguered firm at Rs 17,300 crore, which is more than double the winning bid. This petition is scheduled to be heard by the NCLT on March 13.
With the upper limit of 270 days set by the bankruptcy code for resolution fast approaching amid all this litigation drama, will Binani Cement end up being liquidated?
According to a Business Standard report, UltraTech had earlier served a notice to the resolution professional asking for details on the weight given to its bid compared to the winning bid. Last week, a Dalmia Bharat-Bain Piramal Resurgence Fund consortium had emerged victorious in the race for the beleaguered cement company. A source close to UltraTech told the daily that the company had not received any communication from the resolution professional barring a single-line email saying that its bid was rejected. "There was no transparency over how the bids were evaluated and why the UltraTech bid was rejected," the report quoted the source as saying.
To remind you, Bank of Baroda had dragged Binani Cement to NCLT last July after it failed to repay a loan of over Rs 97 crore debt - the total debt stands at Rs 3,884 crore - and the insolvency resolution process was being overseen by Deloitte's Vijaykumar Iyer. Apart from the Dalmia-led group and UltraTech, four other players had thrown their hats in the ring - Ramco Cement, Heidelberg, stockbroker Rakesh Jhunjhunwala and JSW Cement. The latter had won the first round, but the resolution professional had to call for rebids after new Binani liabilities emerged.
The report added that while Dalmia offered Rs 63 billion (approximately Rs 6,300 crore), UltraTech's offer was Rs 1 billion (Rs 100 crore) less. Since both bids were in the same range, UltraTech reportedly felt that the committee of creditors ought to have given both parties a chance to modify their offers. "UltraTech's offer was Rs 1 billion less, but that could have been matched with the Dalmia offer. Besides the Dalmia offer does not take care of over 3,000 unsecured creditors and small suppliers, while UltraTech offered to take care of all suppliers," the source claimed. While UltraTech offered a 30 percent haircut to all unsecured lenders, Dalmia's resolution plan offered to settle with only one unsecured lender, IDBI Bank. The hearing is expected to take place later this week.
Binani Industries, which holds 98 percent share capital of Binani Cements, is equally unhappy with Iyer. Last month the parent firm approached the Kolkata bench of NCLT alleging that the resolution professional had a "personal interest" in undervaluing the cement company so that it could be given to their "favourite company" and pegged the value of the beleaguered firm at Rs 17,300 crore, which is more than double the winning bid. This petition is scheduled to be heard by the NCLT on March 13.
With the upper limit of 270 days set by the bankruptcy code for resolution fast approaching amid all this litigation drama, will Binani Cement end up being liquidated?
Paytm founder Vijay Shekhar Sharma youngest Indian billionaire with net worth of $1.7 billion
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Within just six years of its launch, Vijay Shekhar Sharma has taken the e-payment platform Paytm to a level where only a few Indian companies have reached. The 39-year-old billionaire, with a net worth of over $1.7 billion, has now made it to the prestigious Forbes list of billionaires. The entrepreneur is also the only Indian billionaire under 40 who has made it to the rich list. That's not all. Sharma's Paytm - acronym for 'Payment Through Mobile' - has over 13,000 employees with 3 million offline merchants across India. "One of the biggest beneficiaries of India's demonetisation, Paytm has notched up 250 million registered users and 7 million transactions daily. Sharma owns 16 per cent of Paytm, which is now valued at $9.4 billion," Forbes said in a statement.
Initially started as an e-commerce and digital payment and recharge app, Paytm has now ventured into multiple platforms, including Paytm Mall, Paytm Bank, and Paytm Wallet, among others. The app acts as a one-stop destination for services ranging from banking, shopping, recharge, bill payment to digital payments.
Paytm's rise to fame
The company shot to fame after the Narendra Modi government announced a country-wide ban on the old currency notes of Rs 500 and Rs 1,000 in November 2016. As people were asked to deposit old notes in banks before a specific deadline, they faced a huge crunch of new currency notes despite the government's efforts. Paytm provided an easy solution to the problem by connecting people having smartphones with traders. Just a month after the demonetisation, Paytm was making around Rs 120 crore a day through digital payments and other services. Soon, other mobile wallets also picked up the pace but Paytm was way ahead in the race. In March 2017, Paytm also launched its services in Canada.
Funding from investment giants
Chinese e-commerce major Alibaba Group Holding Ltd and investment firm SAIF Partners had pumped in $200 million in Paytm's online marketplace unit in 2017. Now the company's subsidiary Paytm Mall is in talks with Japanese investment group SoftBank to raise Rs 3,000 crore. This is in addition to its talks with Singapore's Temasek Holdings and China's Primavera Capital Group to raise another Rs 1,000 crore. Once the SoftBank deal goes through, Paytm Mall is likely to be valued at Rs 13,000 crore, putting it in the 'unicorn' bracket or a billion dollar startup. With the valuation of $10 billion, Paytm is also the second most valuable internet firm in India after Flipkart, which has a valuation of $12 billion.
Mukesh Ambani named 19th richest man
The Forbes' billionaires list also includes industrialist Mukesh Ambani as the 19th richest man in the world. The world's billionaires list has total 2,208 names, out of which 119 are Indians. After adding 18 new names to the group, India came in third after China with 373 names and USA with 585 names. In the list, 63 individuals named are under the age of 40, while 34 are self-made entrepreneurs.
Ninety two-year-old Samprada Singh, Chairman Emeritus of Alkem Laboratories, is the oldest Indian billionaire named in the list. Singh has been ranked 1,867th on the list with a fortune of $1.2 billion. She founded Alkem Laboratories 45 years ago. Singh worked in a chemist's store before venturing out on her own distributing pharmaceuticals. "Shares of the generics maker, known for its antibiotics Clavam and Taxim, have more than doubled since its November 2016 IPO. For the year ended March 2017, Alkem reported a 20 per cent rise in net earnings to USD 139 million on revenues of USD 913 million," Forbes said.
Initially started as an e-commerce and digital payment and recharge app, Paytm has now ventured into multiple platforms, including Paytm Mall, Paytm Bank, and Paytm Wallet, among others. The app acts as a one-stop destination for services ranging from banking, shopping, recharge, bill payment to digital payments.
Paytm's rise to fame
The company shot to fame after the Narendra Modi government announced a country-wide ban on the old currency notes of Rs 500 and Rs 1,000 in November 2016. As people were asked to deposit old notes in banks before a specific deadline, they faced a huge crunch of new currency notes despite the government's efforts. Paytm provided an easy solution to the problem by connecting people having smartphones with traders. Just a month after the demonetisation, Paytm was making around Rs 120 crore a day through digital payments and other services. Soon, other mobile wallets also picked up the pace but Paytm was way ahead in the race. In March 2017, Paytm also launched its services in Canada.
Funding from investment giants
Chinese e-commerce major Alibaba Group Holding Ltd and investment firm SAIF Partners had pumped in $200 million in Paytm's online marketplace unit in 2017. Now the company's subsidiary Paytm Mall is in talks with Japanese investment group SoftBank to raise Rs 3,000 crore. This is in addition to its talks with Singapore's Temasek Holdings and China's Primavera Capital Group to raise another Rs 1,000 crore. Once the SoftBank deal goes through, Paytm Mall is likely to be valued at Rs 13,000 crore, putting it in the 'unicorn' bracket or a billion dollar startup. With the valuation of $10 billion, Paytm is also the second most valuable internet firm in India after Flipkart, which has a valuation of $12 billion.
Mukesh Ambani named 19th richest man
The Forbes' billionaires list also includes industrialist Mukesh Ambani as the 19th richest man in the world. The world's billionaires list has total 2,208 names, out of which 119 are Indians. After adding 18 new names to the group, India came in third after China with 373 names and USA with 585 names. In the list, 63 individuals named are under the age of 40, while 34 are self-made entrepreneurs.
Ninety two-year-old Samprada Singh, Chairman Emeritus of Alkem Laboratories, is the oldest Indian billionaire named in the list. Singh has been ranked 1,867th on the list with a fortune of $1.2 billion. She founded Alkem Laboratories 45 years ago. Singh worked in a chemist's store before venturing out on her own distributing pharmaceuticals. "Shares of the generics maker, known for its antibiotics Clavam and Taxim, have more than doubled since its November 2016 IPO. For the year ended March 2017, Alkem reported a 20 per cent rise in net earnings to USD 139 million on revenues of USD 913 million," Forbes said.
Aadhaar linking to bank accounts, welfare services may be extended beyond March 31
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With 25 days to go before the deadline for mandatory Aadhaar linkages with everything from bank accounts and welfare schemes to SIM cards and PAN cards, procrastinators might have cause to rejoice. The Centre told the Supreme Court on Tuesday that it may push back the March 31 deadline since some more time would be needed to conclude the prolonged hearing of the Aadhaar case.
"We have extended the deadline in the past and we will extend the deadline again but we may do it by the end of month to enable the petitioners in the case conclude the arguments," said Attorney General K.K. Venugopal. The five-judge Constitution bench, comprising Chief Justice Dipak Misra and Justices A.K. Sikri, A.M. Khanwilkar, D.Y. Chandrachud and Ashok Bhushan, are hearing the petitions contesting the validity of the Aadhaar law agreed with his contention. "It is a very valid point raised by the Attorney General and the court would not allow repetitive arguments made by the petitioners' counsel in the matter," added the Bench.
Earlier, senior advocate Shyam Divan, who led the arguments challenging Aadhaar and its enabling Act, had asked that the deadline of March 31 be extended as it was highly unlikely that the hearing in the case would conclude. Justice Chandrachud, too, had pointed out that even if the court reserved its verdict on March 20, the banks and other institution would have only 10 days left, which might be difficult. The Bench then called the Attorney General for assistance in the issue.
This development comes just a couple of days after Industry body Assocham urged the government to relax the deadline for seeding bank accounts, especially the public sector banks. "Notwithstanding judicial scrutiny and government's well-intentioned moves, the banks, particularly those in the PSUs, may find it hard and challenging to complete the task of linking Aadhaar with the accounts of all the customers by March 31, 2018, thus necessitating relaxation of the deadline," Assocham had said in a statement. Following the unearthing of the massive fraud at Punjab National Bank and a few other banks, the PSBs are anyway fire-fighting to protect their core business and are hard pressed for human and other resources required to take up the job of Aadhaar linkage, it explained.
The body further noted that even those who have already submitted Aadhaar details are getting KYC reminders. "There is a lot of confusion which may lead to further problems as we approach the deadline ... It is best advised that the banks be allowed to come out of the crisis like situation before they are given the additional task of Aadhaar seeding to customer accounts," said Assocham.
The hearing in the apex court continues today.
As of March 2017, India issued 1.14 billion Aadhaar cards, covering 85% of the population, as per the State of Aadhaar Report 2016-17. A year on, over 1.2 billion residents have enrolled. According to the government, that's 99% of the country's adult population.
The deadline for Aadhaar-linking with PAN cards was initially extended from June 30, 2017 to end-August and then December 31. In that period, the number of linked Permanent Account Numbers (PANs) went up from around 20 percent of the total to 30 percent and then a whopping 47 percent. The figure is obviously higher now. Similarly, so far, around 80 percent of the estimated bank accounts have already been seeded, up from 70 percent in mid-December.
"We have extended the deadline in the past and we will extend the deadline again but we may do it by the end of month to enable the petitioners in the case conclude the arguments," said Attorney General K.K. Venugopal. The five-judge Constitution bench, comprising Chief Justice Dipak Misra and Justices A.K. Sikri, A.M. Khanwilkar, D.Y. Chandrachud and Ashok Bhushan, are hearing the petitions contesting the validity of the Aadhaar law agreed with his contention. "It is a very valid point raised by the Attorney General and the court would not allow repetitive arguments made by the petitioners' counsel in the matter," added the Bench.
Earlier, senior advocate Shyam Divan, who led the arguments challenging Aadhaar and its enabling Act, had asked that the deadline of March 31 be extended as it was highly unlikely that the hearing in the case would conclude. Justice Chandrachud, too, had pointed out that even if the court reserved its verdict on March 20, the banks and other institution would have only 10 days left, which might be difficult. The Bench then called the Attorney General for assistance in the issue.
This development comes just a couple of days after Industry body Assocham urged the government to relax the deadline for seeding bank accounts, especially the public sector banks. "Notwithstanding judicial scrutiny and government's well-intentioned moves, the banks, particularly those in the PSUs, may find it hard and challenging to complete the task of linking Aadhaar with the accounts of all the customers by March 31, 2018, thus necessitating relaxation of the deadline," Assocham had said in a statement. Following the unearthing of the massive fraud at Punjab National Bank and a few other banks, the PSBs are anyway fire-fighting to protect their core business and are hard pressed for human and other resources required to take up the job of Aadhaar linkage, it explained.
The body further noted that even those who have already submitted Aadhaar details are getting KYC reminders. "There is a lot of confusion which may lead to further problems as we approach the deadline ... It is best advised that the banks be allowed to come out of the crisis like situation before they are given the additional task of Aadhaar seeding to customer accounts," said Assocham.
The hearing in the apex court continues today.
As of March 2017, India issued 1.14 billion Aadhaar cards, covering 85% of the population, as per the State of Aadhaar Report 2016-17. A year on, over 1.2 billion residents have enrolled. According to the government, that's 99% of the country's adult population.
The deadline for Aadhaar-linking with PAN cards was initially extended from June 30, 2017 to end-August and then December 31. In that period, the number of linked Permanent Account Numbers (PANs) went up from around 20 percent of the total to 30 percent and then a whopping 47 percent. The figure is obviously higher now. Similarly, so far, around 80 percent of the estimated bank accounts have already been seeded, up from 70 percent in mid-December.
Sensex falls 284 points to 33,033, Nifty below 10,154 on heavy selling in banking sector stocks
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The BSE Sensex plunged over 284 points today to close at a three-month low of 33,033 on heavy selling in banking stocks amid negative global cues.Overseas markets were shaky as global trade war concerns intensified after the resignation of White House economic adviser Gary Cohn, brokers said.
The 30-share Sensex tumbled by 284.11 points or 0.85 per cent to end at 33,033.09, its lowest closing since December 7, after shuttling between 32,991.14 and 33,331.21 as infrastructure, power, capital goods, PSU, healthcare, banking, oil and gas and metal stocks nosedived.
The index had lost 1,128.55 points in the previous five sessions.
The broader NSE Nifty dipped below the 10,200-mark to finish at 10,154.20, down by 95.05 points, or 0.93 per cent.
Reliance Industries ended 2.03 percent down at its lowest close since Nov. 15, 2017 while ICICI Bank dropped 2.83 percent to its lowest close since Oct. 24, 2017.
Meanwhile, domestic institutional investors (DIIs) net sold shares worth Rs 734.33 crore, while foreign portfolio investors (FPIs) bought shares to the tune of Rs 620.08 crore yesterday
The 30-share Sensex tumbled by 284.11 points or 0.85 per cent to end at 33,033.09, its lowest closing since December 7, after shuttling between 32,991.14 and 33,331.21 as infrastructure, power, capital goods, PSU, healthcare, banking, oil and gas and metal stocks nosedived.
The index had lost 1,128.55 points in the previous five sessions.
The broader NSE Nifty dipped below the 10,200-mark to finish at 10,154.20, down by 95.05 points, or 0.93 per cent.
Reliance Industries ended 2.03 percent down at its lowest close since Nov. 15, 2017 while ICICI Bank dropped 2.83 percent to its lowest close since Oct. 24, 2017.
Meanwhile, domestic institutional investors (DIIs) net sold shares worth Rs 734.33 crore, while foreign portfolio investors (FPIs) bought shares to the tune of Rs 620.08 crore yesterday
General Awareness
Statutory, regulatory and various quasi-judicial bodies.
Animal Welfare Board of India
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Context: The headquarters of the Animal Welfare Board of India (AWBI) has been shifted from Chennai to Haryana’s Ballabhgarh for “better coordination” between the environment ministry and the board.
Rule 3 of the Animal Welfare Board (Administrative) Rules, 1962 reads as — ‘The Headquarter of the Board hall be at New Delhi or at such other place as the central government’.
About Animal Welfare Board of India:
Established in 1960 under Section 4 of The Prevention of Cruelty to Animals Act,1960, the Animal Welfare Board of India is a statutory advisory body advising the Government of India on animal welfare laws, and promotes animal welfare in the country of India.
The Board was initially within the jurisdiction of the Government of India’s Ministry of Food and Agriculture. In 1990, the subject of Prevention of Cruelty to Animals was transferred to the Ministry of Environment and Forests, where it now resides.
The Board consists of 28 Members, who serve for a period of 3 years.
It works to ensure that animal welfare laws in the country are followed and provides grants to Animal Welfare Organisations. The Board oversees Animal Welfare Organisations (AWOs) by granting recognition to them if they meet its guidelines.
Context: The headquarters of the Animal Welfare Board of India (AWBI) has been shifted from Chennai to Haryana’s Ballabhgarh for “better coordination” between the environment ministry and the board.
Rule 3 of the Animal Welfare Board (Administrative) Rules, 1962 reads as — ‘The Headquarter of the Board hall be at New Delhi or at such other place as the central government’.
About Animal Welfare Board of India:
Established in 1960 under Section 4 of The Prevention of Cruelty to Animals Act,1960, the Animal Welfare Board of India is a statutory advisory body advising the Government of India on animal welfare laws, and promotes animal welfare in the country of India.
The Board was initially within the jurisdiction of the Government of India’s Ministry of Food and Agriculture. In 1990, the subject of Prevention of Cruelty to Animals was transferred to the Ministry of Environment and Forests, where it now resides.
The Board consists of 28 Members, who serve for a period of 3 years.
It works to ensure that animal welfare laws in the country are followed and provides grants to Animal Welfare Organisations. The Board oversees Animal Welfare Organisations (AWOs) by granting recognition to them if they meet its guidelines.
Rule 3 of the Animal Welfare Board (Administrative) Rules, 1962 reads as — ‘The Headquarter of the Board hall be at New Delhi or at such other place as the central government’.
About Animal Welfare Board of India:
Established in 1960 under Section 4 of The Prevention of Cruelty to Animals Act,1960, the Animal Welfare Board of India is a statutory advisory body advising the Government of India on animal welfare laws, and promotes animal welfare in the country of India.
The Board was initially within the jurisdiction of the Government of India’s Ministry of Food and Agriculture. In 1990, the subject of Prevention of Cruelty to Animals was transferred to the Ministry of Environment and Forests, where it now resides.
The Board consists of 28 Members, who serve for a period of 3 years.
It works to ensure that animal welfare laws in the country are followed and provides grants to Animal Welfare Organisations. The Board oversees Animal Welfare Organisations (AWOs) by granting recognition to them if they meet its guidelines.
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