The Election Commission has asked the government not to implement a Rs 2,600 crore scheme to provide a moratorium on interest payments on the education loans of 9 lakh students until the elections are completed. The interest-waiver scheme can be implemented by the Finance Ministry after the election process, sources said. It also asked the ministry to ensure that no publicity of the scheme is made during the election period, sources added. Voting in the Lok Sabha elections is scheduled to end on May 12 and counting will be taken up on May 16. In the February 17 interim Budget, Finance Minister P Chidambaram announced the waiver of interest on education loans taken before March 2009 that were outstanding at the end of December 2013. "Since interest concession is being given to borrowers (who have availed of loans) after April 1, 2009, what we are saying is if there is any outstanding interest on the loan you took as on December 31, 2013, I am willing to take over the interest burden," the Finance Minister had said. "Our calculations show Rs 2,600 crore is the outstanding interest as on December 31, 2013. We are wiping out that burden from the shoulders of families, we are taking over the burden. This is huge relief to 9 lakh families," he had said. However, borrowers are required to pay regular interest after January 1, 2014. As per the announcement, Rs 2,600 crore was transferred to the designated Central Scheme for Interest Subsidy (CSIS) banker Canara Bank. At the end of December 2013, public sector banks had 25,70,254 student loan accounts and the amount outstanding was Rs 57,700 crore. In the 2009-10 Budget, the government had announced the CSIS in respect of education loans disbursed after April 1, 2009, under which the government took over the burden of interest for the duration of the period of study and a little beyond. (PTI)
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With an aim of cooling tempers in Seemandhra region, the government has promised in the Telangana Bill selection of a capital of residuary Andhra Pradesh within 45 days and tax incentives to promote its economic growth.The controversial Andhra Pradesh Reorganisation Bill, which was introduced by Home Minister Sushilkumar Shinde in Lok Sabha on Thursday (13 February) amidst chaos, envisages that Hyderabad will be the common capital of Telangana and Seemandhra for ten years.The Centre will set up an apex council for the supervision of the Krishna and Godavari rivers management boards, amidst concerns about water problems if the state is divided.The common capital includes the existing area notified as Greater Hyderabad Municipal Corporation and the central government shall constitute an expert committee to give suggestions for a new capital of residuary Andhra Pradesh within 45 days.The Centre has also tried to address the grievances of Seemandhra region by promising to take appropriate fiscal measures, including offer of tax incentives to the successor states, to promote industrialisation and economic growth in both states.The central government will provide special financial support for creation of essential facilities in the new capital of the successor state of Andhra Pradesh, including the Raj Bhavan, High Court, government secretariat, Legislative Assembly, Legislative Council and such other essential infrastructure.The Union government will also facilitate creation of a new capital for the successor state of Andhra Pradesh, if considered necessary, by denotifying degraded forest land.The Andhra Pradesh Governor will be the Governor for both the successor states of Andhra Pradesh and Telangana and for the purpose of administration of the capital area, the Governor shall have special responsibility for security of life and property of all those live in it. The Bill says 25 Lok Sabha seats will be allocated to residuary Andhra Pradesh while 17 Lok Sabha seats to the Telangana.While residuary Andhra Pradesh will get 175 Legislative Assembly seats, Telangana to get 119 Legislative Assembly seats after bifurcation of Andhra Pradesh.In order to ensure equal opportunities for quality higher education to all students in the sucessor states, the existing admission quotas in all government or private, aided or unaided institutions of higher, technical and medical education shall continue for ten years during which common admission process shall continue.The central government promised to set up an apex council for supervision of the functioning of the Godavari River Management Board and Krishna River Management Board.The apex council shall consist of Union Water Resources Minister, Chief Ministers of residuary Andhra Pradesh and Telangana as members.The function of the council will include planning and approval of proposals for construction of new projects, resolution of any dispute and supervisiosn of the functioning of the Godavari River Management Board and Krishna River Management Board.The headquarters of Godavari Board will be located in Telangana while Krishna Board will be located in the residuary Andhra Pradesh.Polavaram Irrigation Project will be declared as a national project and central government will take under its control the regulation and development and the Tungabhadra Board will continue to monitor the release of water to high level canal, low level canal and Rajolibanda diversion scheme.(Agencies)
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Gold regained the psychological Rs 30,000 per ten gram level after three weeks in the national capital today on brisk buying by stockists for the ongoing wedding season amid firming global trend. Gold surged by Rs 220 to Rs 30,200, a level last seen on March 24, and silver by Rs 150 to Rs 43,900 per kg on increased offtake by industrial units and coin makers. Traders said brisk buying by stockists for the ongoing wedding season mainly led an upsurge in precious metal prices. They said firming global trend, as tension escalated in Ukraine, boosting demand for a haven also influenced the sentiment. Gold in Singapore, which normally sets price trend on the domestic front, rose by 0.9 per cent to $1,329.92 an ounce, the highest since March 24 and silver by 0.5 per cent to $20.09 an ounce. On the domestic front, gold of 99.9 and 99.5 per cent purity shot up by Rs 220 each to Rs 30,200 and Rs 30,000 per ten gram respectively, a level last seen on March 24. Sovereign, however, held steady at Rs 25,000 per piece of eight gram. Silver ready also advanced by Rs 150 to Rs 43,900 per kg while weekly-based delivery held steady at Rs 43,180 per kg, while silver coins ruled flat at Rs 82,000 for buying and Rs 83,000 for selling of 100 pieces. (PTI)
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Reserve Bank of India Governor Raghuram Rajan said on Tuesday (17 June) the next few quarters would be engaged in combating inflation.India's wholesale price inflation hit a five-month high in May, and prospects of weak summer monsoon rains and turmoil in Iraq have increased the risk of rising food and fuel prices.In May, wholesale prices rose a faster-than-expected 6.01 per cent as a 19 per cent increase in potato prices during the month pushed up food inflation to 9.50 per cent from 8.64 per cent in April.(Reuters)
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The rupee falls as much as 0.65 per cent to 60.55, its lowest level since 29 April, as escalating tensions in Iraq continue to fuel concerns over inflation while subdued equity markets also weighed.Brent crude futures held near $113 per barrel on Tuesday (17 June) with the United States considering air strikes in Iraq as the security situation worsens in the key oil producing country."Rupee can go test 60.80 levels on inflationary concerns," said Subramaniam Sharma, director at Greenback Forex.The Nifty is down 0.1 per cent while the BSE Sensex is also flat after overseas investors sold Indian shares worth $32.50 million on Monday, provisional exchange data shows.Caution also prevails ahead of the outcome of US Federal Reserve's two-day meet.The partially convertible currency is seen trading in a range of 60 to 60.85 during the session.(Reuters)
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The rupee weakened to its lowest level in more than a month on Monday as surging crude oil prices threatened to push up domestic inflation pressures and aggravate the country's current account deficit.Alongside, data showed wholesale price inflation in India accelerated to a five-month high of 6.01 percent in May, which further hurt the rupee and pulled it down intraday to 60.23 per dollar, a level last seen on May 6.Brent crude rose towards $113 a barrel on Monday after a strong rally last week, as Sunni insurgents advanced in Iraq, intensifying concerns over a potential disruption to oil exports from the second-largest OPEC producer.India imports nearly two-thirds of its oil needs, leaving its currency especially vulnerable to price swings.Traders were also seen buying the greenback as they looked to square off their short dollar positions."As long as the Iraq crisis continues, this should be the trend for the time being. And, if RBI doesn't intervene, and the Iraq crisis continues, it will definitely remain below 60 to the dollar," said Ashtosh Raina, head of forex trading at HDFC Bank.The central bank is expected to buy or sell dollars to prevent any excessive volatility in the currency.In recent months, the central bank has been aggressively buying dollars to prevent sharp gains in the rupee from hurting export growth while also building up its foreign exchange reserves.The partially convertible rupee ended at 60.1550/1650 per dollar versus its previous close of 59.76/77 on Friday.Equities also fell on Monday, to their lowest close in 1-1/2 weeks on risk aversion among investors due to tensions in Iraq and Ukraine.Traders will now focus on whether the dollar can gain more should the U.S. Federal Reserve provide new hints on the timing of interest rate hikes when it concludes its two-day policy meeting on Wednesday.For the near-term, traders expect the rupee to trade in a 59.90/60.20 range.In the offshore non-deliverable forwards, the one-month contract was at 60.52, while the three-month was at 61.11.(Reuters)
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Congress vice president Rahul Gandhi filed his nomination papers from the Amethi Lok Sabha constituency on Saturday (12 April). Gandhi, the incumbent member from Amethi, is locked in a three-cornered contest in Amethi, with the Bharatiya Janata Party fielding TV's 'favourite bahu' Smriti Irani and the Aam Aadmi Party Kumar Vishwas. While Vishwas has been camping in Amethi for the last two months, Irani has also been in town for the last few days. Both leaders have accused Rahul Gandhi of neglecting development in his constituency.Amethi is going to polls on May 7 and Rahul is contesting for the third consecutive time to retain the seat.Rahul also rejected criticism that he made a personal attack against Narendra Modi by referring to his marital status, saying he just stated that he had previously not mentioned about his wife in poll affidavits.No Personal Comment Agaiinst Modi"I did not get personal. I just stated that on his affidavits he had previously not mentioned something. So it's not a personal thing," Rahul told reporters here soon after filing his nomination papers for the Lok Sabha polls.He was responding to a question on his raking up the marital status of Modi while addressing a rally in Jammu and Kashmir on 11 April.Flanked by his mother Sonia Gandhi and sister Priyanka, the Congress Vice-President also rubbished the projection of opinion polls that his party will lose elections.He said Congress had been written off by the opinion polls in 2004 as well as 2009 but those did not prove to be correct."They (opinion polls) kept saying Congress will lose but you know what happened," he said, referring to his party's unexpected victories in last two Lok Sabha elections.Asked about polarising statements made by leaders of various political parties, he said attempts to polarise elections take place every time and Congress will take everybody alongPriyanka also said that Rahul had not made any personal attack on Modi."I don't think he made a personal attack. He made a point that something was missing from the affidavit before. Besides, I don't think they (BJP) are in a position to talk about personal attacks," she said.Rahul expressed confidence about victory from Amethi in Uttar Pradesh, the Nehru-Gandhi family pocketborough where BJP has fielded Smriti Irani and AAP has Kumar Vishwas.He said he has family relations with Amethi and "We will have a good victory."Rahul said he had focussed on three things for development of Amethi -- working with women bodies, connecting the area with national highways and railways and developing food park.He will focus on these issues in the future also to generate more employment for youths, he said.Rahul along with Sonia Gandhi, Priyanka and her husband Robert Vadra, reached Amethi after conducting a roadshow through adjoining Sultanpur where his cousin Varun Gandhi is contesting on a BJP ticket.The roadshow was conducted on a 42-km stretch between Amhart in Sultanpur and Gauriganj in Amethi.The event evoked curosity as this is for the first time Rahul is organising such a political campaign from Sultanpur constituency where another Gandhi family member if fighting against a Congress candidate.How Will Cong Fare At The Centre?Apparently resigned to a poor performance in this election, some Congress insiders have started trying to put a positive spin on a likely spell in opposition."Being in opposition in democratic politics gives a great opportunity to the party," Mani Shankar Aiyar, a senior Congress official and former government minister, told Reuters. "We need to democratise the party."Another senior party member said: "This is a tough election. At the moment, the BJP appears to have an advantage."Officially, Congress says the opinion polls have got it wrong and it will emerge as the single largest party."We're extremely confident," said party spokesman Sanjay Jha. "After Rahul Gandhi said we'll win, we've been especially upbeat. Poll findings will have no bearing."Nevertheless, some Congress members have said the inability of 43-year-old Gandhi, the scion of the Nehru-Gandhi political dynasty, to effectively counter Modi has led to its woes. And although Gandhi has vowed to revitalise the party, they doubt he has the acumen to eventually lead it back to power.Some senior members of Congress had favoured sister Priyanka and a newspaper report had quoted senior general secretary Janardan Dwivedi as saying that Priyanka Gandhi had been interested in "political developments and the language of politics" since an early age.In a party where Rahul Gandhi is at least publicly seen as the unquestioned heir, the report had created a storm.Priyanka has restricted her political activities to supporting her brother and campaigning in her mother Sonia Gandhi's constituency. But many Congress faithful see her easy campaign style and marked resemblance to her grandmother, former prime minister Indira Gandhi, as a sign that she could revive the party's fortunes.Doesn't Have ConfidenceOn the stump, Rahul Gandhi, the son, grandson and great-grandson of former prime ministers, draws crowds but even those in the audience do not fancy his chances.Kept waiting for hours, thousands of listless young supporters in Aurangabad, a down-at-heel district in Bihar state, come alive as Gandhi's helicopter descends, throwing up a plume of dust.With a designer stubble and wearing white cotton 'kurta' tunic over blue jeans, Gandhi strides onto a rickety stage. Pushing up his sleeves, he appeals in his speech to core Congress voters."We want the poor to feel that they are a part of this nation. This is our dream for India," Gandhi tells a crowd that appears enthused more by his celebrity appeal than his rhetoric.Despite criticism that his brand of Hindu nationalist politics is divisive, Modi has dominated the campaign. He has focused on effective government and creating jobs, which has resonated better with the country's 815 million voters.Congress, which has been in power for the last decade, has struggled to overcome a series of corruption scandals, slowing economic growth and an inability to push policy.At the election meeting, insurance agent Dharmendra Singh came early to get a ringside view of Gandhi. But he will cast his vote for Modi, impressed by a stint working in the western state of Gujarat which the Bharatiya Janata Party candidate has led for the past decade."There's no graft. There's 24-hour electricity," says the 25-year-old. "I want to see Narendra Modi as prime minister."Away from the rally, teacher Kamala Devi had come to Aurangabad to visit the district school office. A lifelong Congress voter, when asked about Rahul Gandhi, Devvi said: "He doesn't take a stand. He doesn't have confidence." says Devi, 56. "What they want to do is good. Their thinking is good, but they don't get things done."The turning point of the election campaign, many analysts say, was Gandhi's first major television interview in January, which he fluffed.Asked if he was afraid of losing the election to Modi, he replied in the third person: "Rahul Gandhi and millions of youngsters in this country want to change the way the system in this country works."Gandhi appeared nervous and ill-prepared and the interview was widely criticised as a public relations disaster. He has not given any others since."How can he reform the system that made him what he is?" said Mohan Guruswamy, a political analyst. "It would have been a smart strategy if he was an outsider. But now it looks contrived."Although any talk of a role Priyanaka Gandhi may have in Congress is nascent, it has begun. One strategist, however, described her as an ace in the sleeve, and not to be used now."There's the feeling that this is not the best election in terms of our prospects, so why waste our ace?" said the strategist, who, like others, spoke on condition of anonymity due the sensitivity of the matter. (Agencies)
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MAIT, the apex body representing India’s IT hardware, training and R&D services sectors, has come out with a recommendation document for the IT hardware industry for the upcoming Union Budget 2014. The budget is of paramount importance not only from a clear-mandate perspective where the Government can take decisive actions, but also the most anticipated policy thrust of the Narendra Modi Government setting expectations at the peak.Amar Babu, President of MAIT, said “This budget marks the first litmus test propelling the development agenda; the past years have witnessed an economic downturn and a downturn of domestic growth. The Budget should address the issues curtailing investment sentiment and bring renewed optimism for sustained economic growth, conversely the government should quickly amend the policy paralysis with regards to the ease of doing business.”Anwar Shirpurwala, Executive Director, MAIT opines, “The Hon’ble Finance Minister, Arun Jaitley should drive reforms around the ten point agenda that Mr. Modi has eloquently articulated. Recognising the multifaceted contribution of manufacturing and electronics on a war-footing basis, the government should prioritize reforms that can navigate the challenges the manufacturing and ICT industry face every day. It should give boost to local manufacturing,early implementation of goods and service tax and credible policies to attract investments.”Suggestions to overhaul manufacturing, electronics and ICT are as followsInverted Duty Structure for manufacturers of Information Technology HardwarePlugging the lacuna with respect to Inverted Duty Structures would encourage manufacturing in India. The government should exempt SAD on all components used by a manufacturer of IT hardware by necessitating amendments in Notification No 21/2012-Customs (T) dated March 17, 2012 and imposing necessary safeguards through specification of a condition of end use (in manufacturing/by a manufacturer) to create a level playing fieldConcessional rate of duty for Computers and TabletsReducing the rate of duty applicable on indigenous manufacture of laptops and tablets is a much-needed move to boost computer manufacturing in a country where manufacturing is disproportionate to demand. The rate could also be aligned to avoid unwarranted disputes o n the classification and treatment of goods in terms of features as well as composition at the stage of import. This also distincts the line of commonality in a tablet and smart-phone.MAIT also recommends that indigenously manufactured personal computers and tablets be extended concessional excise duty similar to mobile handset manufacturing in India by amending Notification no 12/2012 dated March 17, 2012 to provide for a concessional duty scheme in respect of goods classifiable under chapter 8471. An excise duty rate of 5 per cent with CENVAT and 1 per cent without CENVAT could be extended to personal computers and tablet computers by way of an amendment.Dual taxation on sale of packaged or canned: We recommend a clarification to be issued with regard to software licensors involved in sale of pre-packaged software which seeks to clarify that irrespective of whether software supplied to media is electronically is accompanied by a license of otherwise, this license entails transfer of right to use goods and is outside the purview of service tax.MAIT seems to clarify that distributors are carrying out sale of pre-packaged software without having any rights to issue licenses and therefore, transactions shall not be treated as service liable to service taxITA Products be included in the list of declared goods. Inconsistency in VAT rates for same goods in different states provides undue hardships for the manufacturer while calculating different rates for states. This difference in rates causes a diversion of trade discriminating free flow of trade within the country. The CST Act should be amended to specify ‘All ITA bound goods” to be ‘declared goods’ under the section 14 of the CST Act so that these goods attract uniform rate of VAT of 5 per cent across states. This ensures that same goods are not subject to a different rate of CAT and safe-guard against diversion of trade.ITA Products: MAIT advocates that the expression ‘computer and computer peripherals’ may be replaced with the expression ‘information technology and telecommunication hardware’ in Rule 3(5A)(a)(i) of the CENVAT Rules as well as in Notification 22/2003 – CE and Notification 52/2003 – Customs. MAIT expresses hope that a comprehensive list of all ITA products and telecommunication hardware (aligned to the list of 217 ITA bound goods specified under Notification Nos 24 and 25/ 2005 – Customs both dated March 1, 2005) be notified for the benefit of accelerated depreciation in the aforesaid Provisions/notifications. MAIT also presses that the rate of accelerated depreciation may be revised to 10 percent per quarter or part thereof in the aforesaid provisions/notificationsGST: MAIT sought clarity on the date of Implementation of GST with uniformity in procedures and documentation across the country. Also, uniformity in GST rate as well as threshold for levy across goods and services and across the centr and state laws may be published at the earliest.
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