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The Union government on Thursday defended its approach to reforms, days after it succumbed to political pressure in parliament and delayed the passage of key land and tax reforms, a move that has tarnished Prime Minister Narendra Modi's first year in office. Investors had hoped that Modi's biggest majority in the Lok Sabha in 30 years would speed up economic reforms, but that assumption took a hit when he sent the proposed legislation to two different parliamentary panels for a review. While the move has delayed the measures until at least July, Finance Minister Arun Jaitley said on Thursday it was the fastest route to get parliament's approval. "I do believe that the road map that we have now developed of sending it to the joint committee is probably the fastest route to get the land bill approved," he said. The opposition Congress party, defeated by Modi's Bharatiya Janata Party (BJP) in a general election last May, has fought back against the land bill that seeks to make it easier for businesses to buy land, calling it "anti-farmer". The ruling BJP is dependent on Congress and other parties in the Rajya Sabha to pass the measure. The delay has also cast doubts on Jaitley's ability to meet his April 2016 launch deadline for the new goods and services tax (GST) that would harmonise a mosaic of state and central levies into a national sales tax. The GST bill, after its passage in parliament, also requires the approval of more than a half of India's 29 states. Jaitley said the government would have to work overtime to meet the launch deadline. "I am still hopeful, in fact very hopeful, that we will be able to achieve this," he said. Jaitley calls the GST the biggest tax reform since Independence in 1947, which could add as much as 2 percentage points to its economic growth. (Reuters)
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Finance Minister Arun Jaitley said on Thursday that the government's roadmap for reforms to make it easier for businesses to buy land was the fastest route to passing it. The government referred its Land Acquisition Bill to a committee after failing to pass it in the parliamentary session just ended, dealing a blow to Prime Minister Narendra Modi's almost a year-old government. The opposition Congress party, defeated by Modi's nationalist party in a general election last May, has fought back against the bill, calling it ‘anti-farmer’. The NDA government lacks the votes in the Rajya Sabha to pass the measure. Jaitley also said that foreign direct investment (FDI) into India had risen by 40% in the FY-2015 from a year ago. Addressing a news conference, Jaitley said the nearly one-year-old government faced challenges in increasing infrastructure spending and boosting manufacturing. (Reuters)
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Azure Power, an independent power producer, on Thursday said it has commissioned a 100 MW solar plant under National Solar Mission policy in Rajasthan. "Azure Power has announced the commissioning of its 100 MW solar plant under India's National Solar Mission policy in Jodhpur, Rajasthan," the company said in a statement. The company will supply power to Solar Energy Corporation of India for 25 years. With the completion of these projects Azure Power has become the largest investor of solar power in Rajasthan. "This is the largest capacity project under the NSM Phase-2, where the power is being sold to Solar Energy Corporation of India at Rs 5.45 per unit with Viability Gap Funding," Inderpreet Wadhwa, Founder and Chief Executive Officer of Azure Power said. The 100 MW solar plant is also a significant milestone for the “Make in India” solar power initiative of the company. Equipment for 60 MWs has been made in India. This is the first of its kind large capacity solar power project executed exclusively with Indian technology and manufacturing. Azure Power has several projects operating under various policies for grid connected, rooftops and off-grid systems in the country. (BW Bureau)
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Deflationary pressure continued for the sixth month in a row with inflation dropping to a new low of (-)2.65 per cent in April, mainly on account of decline in prices of fuel and manufactured items even as food prices increased. Inflation, as measured on the Wholesale Price Index (WPI), has been in the negative zone since November, 2014. In April last year, it was 5.55 per cent. The deflationary trend has bolstered the case for a rate cut by the Reserve Bank, as retail inflation has also eased and industrial production is down, experts said. Industrial output had slowed to 5-month low of 2.1 per cent in March. Inflation was (-)2.33 per cent in March, (-)2.17 per cent in February, (-)0.95 per cent in January, (-)0.50 per cent in December and (-) 0.17 per cent in November. In April this year, the manufactured products segment witnessed deflation for the second consecutive month as prices dropped to a record low of (-)0.52 per cent. Inflation in food articles category stood at 5.73 per cent, from 6.31 per cent in March. For fuel and power, it was (-)13.03 per cent in April. Potato prices saw the steepest fall at (-)41.14 per cent in April. For vegetables, the decline was (-)1.32 per cent.However, inflation in pulses was at 15.38 per cent, and for egg, meat and fish at 4.01 per cent during the month. The February WPI inflation data has been revised downwards to (-)2.17 per cent as against the provisional estimate of (-)2.06 per cent. The Consumer Price Index based inflation data, released earlier this week, showed retail inflation fell to a 4-month low of 4.87 per cent in April on account of easing food prices. ICRA Senior Economist Aditi Nayar said: “The data reinforces our expectation of a high probability of 0.25 per cent rate cut in June 2 RBI policy.” (Reuters)
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Prime Minister Narendra Modi and Chinese President Xi Jinping today began summit-level talks during which the two leaders are expected to discuss a host of issues, including the contentious boundary dispute and China's plans for infrastructure projects in PoK. Xi Jinping warmly welcomed Modi at the Shaanxi Guest House here as the two leaders shook hands for photographs. In his opening remarks, Modi appreciated the Chinese leader for warmly receiving him outside Beijing. "This is an honour to 125 crore Indians whom I am representing as Prime Minister," said Modi, who was wearing a black bandhgala suit. Recalling his visit to Ahmedabad in September last year, President Xi Jinping said, "You received me very warmly in your hometown. I am very glad to receive you in my hometown." While Modi spoke in Hindi, Xi Jinping made his remarks in Chinese. Embarking on the three-day visit to China that will take him to Beijing and Shanghai after Xi'an, Modi had expressed confidence that his trip would deepen mutual trust, work out a roadmap for upgrading bilateral economic ties and set a "new milestone" for Asia and developing nations. Modi, who is undertaking his first visit to China as Prime Minister, reached the ancient city of Xi'an this morning and was accorded a grand welcome. Xi Jinping is meeting Modi in his hometown of Xi'an in an unusual departure from normal protocol that is being seen as a reciprocal gesture by the Chinese leader who was hosted by Modi in Ahmedabad when he visited India. Irritants like the boundary issue and China's plans for infrastructure projects in Pakistan-occupied Kashmir (PoK) stand in the way of taking the bilateral ties forward and were likely to be discussed by the two leaders. Modi has met President Xi Jinping three times during the last one year and held extensive talks on a wide range of issues. The Prime Minister is being accompanied by National Security Advisor Ajit Doval, Foreign Secretary S Jaishankar and other senior officials. (PTI)
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Indian economy is likely to clock 8.1% growth in the current financial year, spurred by strong consumer spending amid low inflation, infrastructure projects and government's reform measures, says a UN report. Investment is also expected to rebound, although unevenly, given the still low capacity-utilisation rate at about 70%, it said. "Growth is forecast to accelerate to 8.1% in 2015 and 8.2% in 2016, benefiting from the acceleration of infrastructure projects, strong consumer spending due to lower inflation and monetary easing and gradual improvements in market sentiments," said the UN ESCAP report titled, 'Economic and Social Survey of Asia and the Pacific 2015. It said however that volatile capital flows that may follow monetary policy normalisation in the US remain the downside risk. The growth projection is in line with the estimates of the Finance Ministry. The International Monetary Fund (IMF) and the World Bank have projected India's growth at 7.5% for the current fiscal. However, the Reserve Bank of India (RBI) has forecast a growth rate of 7.8%. The report said, decline in inflation benefits from lower global energy prices, but structural factors that keep food prices remain high. These include post-harvest food waste that is up to 40%, lack of market competition, higher agricultural input prices and wages and an increase in minimum support prices. More than half of India's farming is rain-fed, so food prices are subject to weather conditions, it added. Talking about structural reforms, the report said these are gaining momentum since the new administration took office in May 2014. These include opening up of 120 million new bank accounts to promote access to finance and easing FDI restrictions in such sectors as defence equipment, railways and construction. That apart, it said: "The 'Make in India' initiative was launched in September 2014 to promote India as a global manufacturing hub. The success of this scheme would require broad-based policy actions in enhancing human capital, access to inputs and finance, and better connectivity." In this regard, the report said, the government introduced online services for environmental and forest-related clearances and launched an online system to replace cumbersome labour-related forms. On impediments to growth, it said, one of the key remaining challenges is to address labour market rigidities and generate enough jobs for 8 million new job-market entrants per year. According to the 2013 economic census, annual job growth was 4.3% on average during the period 2005-2013, up from 2.5% in the 2005 census. However, the UN ESCAP report said, as half of India's workers still work in agriculture, the country needs to raise its productivity by engaging more in higher value added production. This would help the country realise its potential for growth, which is supported by a high savings rate and emerging middle-class population, and further cut poverty, which remained high at 22% of the total population in 2012, it said. The report further said that weakness in infrastructure is one of the key factors holding back the India's economic growth potential. Significant investment in infrastructure is required, not least to meet the increasing demand due to growing incomes and populations together with the requirements of rapid urbanisation, it added. (PTI)
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The Supreme Court on Thursday dismissed the plea of a bank employee who had challenged framing of charges against him for publishing an alleged "vulgar and obscene" poem on Mahatma Gandhi in 1994 in an in-house magazine of which he was an editor. A bench comprising justice Dipak Misra and justice Prafulla C Pant said one cannot be allowed to use indecent language for "historically respected personalities like Mahatma Gandhi". The bench upheld the Bombay High Court's decision of not quashing charge of sale/publication of obscene books, framed against accused Devidas Ramchandra Tuljapurkar, saying freedom of speech and expression does not allow a person to cross "contemporaneous community parameters" on decency. "Freedom of speech has to be given a broad canvas but with limits," the apex court said. The bench asked Tuljapurkar, the then editor of in-house magazine of Bank of Maharashtra Employees Union, to express his points of view before the lower court during the trial. The court, however, quashed the criminal proceedings against the printers and publishers of the magazine in which the poem penned by Marathi poet Vasant Dattatraya Gurjar was published, saying they have already tendered an unconditional apology. On April 16, the apex court had reserved its verdict on the plea of Tuljapurkar, who was made an accused in 1994 for publishing the allegedly vulgar poem on Gandhi, for quashing of his prosecution under section 292 (sale, publication of obscene books) under the IPC. The court had said it would decide as to whether putting "indecent words" in the "mouth of Mahatma Gandhi" by the poet falls under ambit of freedom of speech and expression or not. "The issue of linguistic freedom qua Mahatma Gandhi is bothering us. It is a question of statutory or constitutional comfort," the bench had said. Referring to the poem 'Gandhi Mala Bhetala Hota', written by Gurjar in 1984, Tuljapurkars's lawyer had submitted that people, who know Marathi, say that the poem is "satirical". The accused had approached the apex court against the Bombay High Court order dismissing his plea seeking quashing of his prosecution. For a first-time offender, the penal provision prescribes maximum two years of jail term and a fine of Rs 2,000. (PTI)
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The Supreme Court on Thursday stayed a circular by Delhi government on filing defamation cases against media organisations for any news that causes damage to its reputation or that of chief minister Arvind Kejriwal and other ministers and asked him to explain why it was issued. "Issue notice (to Kejriwal). However, as an interim measure we direct stay of the circular dated May 6, 2015 till further order of this court. Accordingly, it is stayed," said a bench comprising justices Dipak Misra and Prafulla C Pant. Asking Kejriwal to explain why the directorate of information has issued "such circular", the court sought a reply within six weeks and listed the matter for further hearing on July 8. The court's order came on an application filed by senior advocate Amit Sibal seeking vacation of the stay granted by the apex court on the proceedings before a trial court in a defamation case. Sibal, who had filed a criminal defamation complaint against Kejriwal and others in the Patiala House court in Delhi, said that while the chief minister on one hand seeks setting aside of penal laws on defamation, on the other hand he has issued such a circular. "It is noteworthy that the petitioner (Kejriwal) in his affidavit...declares that he is working as chief minister of Delhi. However, the aforesaid circular directly contradicts and mitigates against the stand taken by him in the present petition," the plea said, adding that the stay on the trial court proceedings against Kejriwal be vacated. The circular, issued by state information and publicity department, says that if any officer associated with the Delhi government feels that a published or aired item has caused damage to his or the government's reputation, he should file a complaint with the principal secretary (home). The circular also states that after getting a go-ahead from the director (prosecution), the matter should be referred to the law department and after taking approval from the government, a case should be filed. Earlier, the Supreme Court had stayed proceedings in trial courts in a few criminal defamation cases against Kejriwal while deciding to hear his plea challenging "constitutional validity" of the penal provisions relating to defamation. A PIL was also filed on Wednesday in the Delhi high court seeking quashing of the city government's circular. (PTI)
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India's state-run National Buildings Construction Corporation (NBCC) is betting on the redevelopment of millions of square feet of vacant government property as it plans to grow its $3.4 billion order book by 25 per cent a year to 2020. That is roughly twice the rate of growth over the last few years, chairman and managing director, Anoop Kumar Mittal, told Reuters. NBCC, 90 per cent owned by the state, builds and redevelops real estate and infrastructure. It is seen as a major beneficiary of the current government's spending push, making its stock a the top performer among India's state-owned firms. (Reuters)
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The Supreme Court today dismissed a batch of petitions filed by various telecom companies, including Vodafone and Bharti Airtel, seeking extension of their spectrum licences. "We see no merit. The petitions are dismissed," a bench headed by J Chelameswar said. The Supreme Court had reserved its verdict on a bunch of similar petitions filed by Bharti Airtel, Idea Cellular, Vodafone Mobile Services and Loop Mobile India which had sought extension of their 20-year spectrum licences by another 10 years. The telecom operators had challenged the government's decision to reject their applications for extension of their licences and auction the spectrum surrendered by them. While telecom companies have argued that the terms and conditions of their 20-year licences state that they were extendable by another 10 years, the government has argued that the norms say it "may" extend the licence, and hence the matter was at its discretion. The operators had earlier sought a stay on the auction, saying the spectrum, for which the 20-year licence has expired, should not be put on the block. On March 23, the apex court had rejected the plea to stay the spectrum auction but agreed to hear the case expeditiously and ordered that the companies would participate in the auction without prejudice to the rights they claim on licence extension. (PTI)
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