GENERAL UPDATES 04.04.2019

GDP GROWTH LOWERED TO 7.2% FROM 7.4% EARLIER; CPI TARGET REVISED DOWNWARD TO 2.4%

RBI's monetary policy committee (MPC) on Thursday slashed repo rate by 25 basis points to 6 per cent in its first bi-monthly rate review of financial year 2020. The MPC voted 4:2 in favour of the decision, while keeping the stance ‘neutral’. Read full policy text here: On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today decided to:

• _reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.0 per cent from 6.25 per cent with immediate effect._

Consequently, the reverse repo rate under the LAF stands adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.25 per cent. The MPC also decided to maintain the neutral monetary policy stance. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth. The main considerations underlying the decision are set out in the statement below. Assessment

GLOBAL ECONOMY

Since the last MPC meeting in February 2019, global economic activity has been losing pace In the US, the subdued performance in the final quarter of 2018 appears to have continued into Q1:2019 as reflected in declining factory activity. The Euro area slowed down in Q4:2018 on soft domestic demand and contracting manufacturing activity. Of its constituents, the Italian economy contracted for two consecutive quarters in Q3 and Q4. In the UK, growth slowed down on Brexit uncertainty, with industrial production contracting during September-January. The Japanese economy rebounded in Q4 on increased domestic consumption expenditure and recovering investment spending. However, the latest data on manufacturing activity and business confidence suggest that growth lost momentum in Q1:2019. The monetary policy stances of the US Fed and central banks in other major advanced economies (AEs) have turned dovish. Economic activity also slowed down in some major emerging market economies (EMEs). The Chinese economy decelerated in Q4:2018 on subdued domestic and global demand impacting industrial activity. Much of this weakness seems to have continued into 2019 as reflected in low factory output in Q1, though the purchasing managers’ index (PMI) moved into expansion zone in March after three months of contraction. In Q1, the Russian economy continued to be impacted by both domestic and external headwinds. The Brazilian economy ended 2018 on a weak note; going into 2019, available economic indicators for Q1 suggest that economic activity remained restrained by both weak domestic and external demand. The South African economy slowed down in the final quarter of 2018. Subdued industrial activity and worsening external demand point to a further loss in momentum in Q1. Crude oil prices have risen on production cuts by OPEC and Russia as well as disruption in supplies due to US sanctions on exports from Venezuela. Gold prices weakened on expectations of positive outcomes of the China-US trade deal. Inflation continued to remain low in major AEs and many key EMEs due to slowing global growth and stable or falling commodity prices. Financial markets continued to be driven by monetary policy stances of key central banks and movements in crude oil prices. In the US, the equity market witnessed some selling pressure in the last week of March on weak economic data. Equity markets in EMEs gained, benefitting from country-specific factors and easing of global financing conditions. Bond yields in the US softened, slipped into negative territory in Germany and dipped further into negative territory in Japan as central banks signalled softer stances. Bond yields in most EMEs have been falling in tandem with those in AEs and on the improving inflation outlook. In currency markets, the US dollar has traded with an appreciating bias in recent weeks. EME currencies have traded with a depreciating bias on country-specific factors and on fears of a weakening economic outlook in China.

DOMESTIC ECONOMY

Turning to the domestic economy, the second advance estimates for 2018-19 released by the Central Statistics Office (CSO) in February 2019 revised India’s real gross domestic product (GDP) growth downwards to 7.0 per cent from 7.2 per cent in the first advance estimates. Domestic economic activity decelerated for the third consecutive quarter in Q3:2018-19 due to a slowdown in consumption, both public and private. However, gross fixed capital formation (GFCF) growth remained in double digits for the fifth consecutive quarter in Q3, with the GFCF to GDP ratio rising to 33.1 per cent in Q3:2018-19 against 31.8 per cent in Q3:2017-18, supported primarily by the government’s thrust on the road sector and affordable housing. The drag on aggregate demand from net exports also moderated in Q3 due to a marginal acceleration in exports and a sharp deceleration in imports led by a decline in crude oil prices. On the supply side, the second advance estimates of the CSO placed the growth of real gross value added (GVA) lower at 6.8 per cent in 2018-19 as compared with 6.9 per cent in 2017-18. GVA growth slowed down to 6.3 per cent in Q3 due to a deceleration in agriculture output from the record level achieved in the previous year. Industrial GVA growth remained unchanged in Q3, with manufacturing GVA growth slowing somewhat. Services GVA growth also remained unchanged in Q3; while growth in construction activity accelerated, there was some loss of momentum in public administration, defence and other services. Beyond Q3, the second advance estimates of foodgrains production for 2018-19 at 281.4 million tonnes were 1.2 per cent lower than the fourth advance estimates of 2017-18, but 1.4 per cent higher than the second advance estimates of 2017-18. According to the National Oceanic and Atmospheric Administration (NOAA) of the US, El Niño conditions strengthened during February 2019, which may affect the prospects of a normal south west monsoon. Of the high frequency indicators of industry, the manufacturing component of the index of industrial production (IIP) growth slowed down to 1.3 per cent in January 2019 due to automobiles, pharmaceuticals, and machinery and equipment. The growth of eight core industries remained sluggish in February. Credit flows to micro and small as well as medium industries remained tepid though they improved for large industries. Capacity utilisation (CU) in the manufacturing sector, however, as measured by the Reserve Bank’s order books, inventory and capacity utilisation survey (OBICUS), improved to 75.9 per cent in Q3 from 74.8 per cent in Q2 exceeding its long-term average; the seasonally adjusted CU rose to 76.1 per cent from 75.4 per cent. The business assessment index of the industrial outlook survey (IOS) points to an improvement in overall sentiments in Q4. The manufacturing purchasing managers’ index (PMI) remained in expansion zone for 20th month in March. The key indicators of investment activity contracted viz., production of capital goods in January and imports of capital goods in February. High frequency indicators of the services sector suggest significant moderation in activity. Sales of commercial vehicles contracted during February. Other indicators of the transportation sector, viz., port freight traffic and international air freight traffic, also contracted. However, indicators of the construction sector, viz., consumption of steel and production of cement, continued to show healthy growth. The hotels sub-segment showed some improvement in foreign tourist arrivals in January and international air passenger traffic in February. The services PMI continued to be in expansion zone for the tenth consecutive month in March 2019. Retail inflation, measured by y-o-y change in the CPI, rose to 2.6 per cent in February after four months of continuous decline. The uptick in inflation was driven by an increase in prices of items excluding food and fuel and weaker momentum of deflation in the food group. However, inflation in the fuel group collapsed to its lowest print in the new all India CPI series. 12. Within the food group, deflation in four sub-groups – vegetables, sugar, pulses and fruits – continued in February. Egg prices moved into inflation after remaining in deflation in previous three months, while inflation ticked up in all other food sub-groups. Inflation in the fuel and light sub-group collapsed from 4.5 per cent in December to 1.2 per cent in February. Prices of liquefied petroleum gas (LPG) declined sharply, pulled down by the lagged impact of the softening of international energy prices. The prices of firewood, with the second largest weight in the fuel group, also declined. Electricity slipped into deflation in January and February. Inflation in kerosene remained elevated, however, reflecting the impact of the calibrated increase in its administered price. CPI inflation excluding food and fuel declined to 5.2 per cent in January, but rose to 5.4 per cent in February, driven by a broad-based pick-up in inflation in the personal care and effects, and recreation and amusement sub-groups. However, inflation in the clothing and footwear, and transport and communication sub-groups fell, the latter reflecting the reduction in petrol and diesel prices. Inflation in the health and education sub-groups remained elevated, even though it moderated markedly during January-February vis-à-vis December. Inflation expectations, measured by the Reserve Bank’s survey of households, declined in the February round over the previous round by 40 basis points each for the three months ahead and for the one year ahead horizons. Firms participating in the Reserve Bank’s industrial outlook survey of manufacturing companies reported reduction in input price pressures, but they expected an increase in staff expenses in Q1:2019-20. Farm and industrial input costs increased at a slow pace in JanuaryFebruary 2019. Nominal growth in rural wages and staff costs in the organised manufacturing and services sectors remained muted in Q3:2018-19. From a daily net average surplus of Rs 27,928 crore (Rs 279 billion) during February 1-6, 2019, systemic liquidity moved into deficit during February 7 - March 31, reflecting the build-up of government cash balances. Currency in circulation expanded sharply in February-March. The liquidity needs of the system were met through injection of durable liquidity amounting to Rs 37,500 crore (Rs 375 billion) in February and Rs 25,000 crore (Rs 250 billion) in March through open market purchase operations (OMOs). Consequently, total durab factors, GDP growth for 2019-20 is projected at 7.2 per cent – in the range of 6.8-7.1 per cent in H1:2019-20 and 7.3-7.4 per cent in H2 – with risks evenly balanced. Anticipating the seasonal tightening of liquidity at end-March, the Reserve Bank conducted four longer term (tenor ranging between 14-day and 56-day) variable rate repo auctions during the month in addition to the regular 14-day variable rate term repo auctions. Furthermore, the Reserve Bank conducted long-term foreign exchange buy/sell swaps of US$ 5 billion for a tenor of 3 years on March 26, 2019, thereby injecting durable liquidity of Rs 34,561 crore (Rs 346 billion) into the system. Export growth remained weak in January and February 2019 mainly due to exports of petroleum products decelerating in response to a fall in international crude oil prices. Among non-oil exports, engineering goods, chemicals, leather and marine products recorded either sequentially lower or negative growth. As in the case of exports, lower international crude oil prices downsized the oil import bill. Non-oil non-gold imports declined sharply, dragged down by the subdued demand for pearls and precious stones, transport equipment, project goods and vegetable oils. The trade deficit narrowed in February 2019 – both sequentially and on a year-on-year basis – to its lowest level in 17 months. This, along with the increase in services exports and lower outgo of income payments, resulted in narrowing of the current account deficit sequentially. On the financing side, net FDI inflows were strong in April-January 2018-19. Foreign portfolio investors turned net buyers inthe domestic capital market in Q4:2018-19. India’s foreign exchange reserves were at US$ 412.9 billion on March 31, 2019.

OUTLOOK

In the sixth bi-monthly monetary policy resolution of February 2019, CPI inflation was projected at 2.8 per cent for Q4:2018-19, 3.2-3.4 per cent for H1:2019-20 and 3.9 per cent for Q3:2019-20, with risks broadly balanced around the central trajectory. Actual inflation outcomes averaged 2.3 per cent in January-February. The inflation path during 2019-20 is likely to be shaped by several factors. First, low food inflation during January-February will have a bearing on the near-term inflation outlook. Second, the fall in the fuel group inflation witnessed at the time of the February policy has become accentuated. Third, CPI inflation excluding food and fuel in February was lower than expected, which has imparted some downward bias to headline inflation. Fourth, international crude oil prices have increased by around 10 per cent since the last policy. Fifth, inflation expectations of households as well as input and output price expectations of producers polled in the Reserve Bank’s surveys have further moderated. Taking into consideration these factors and assuming a normal monsoon in 2019, the path of CPI inflation is revised downwards to 2.4 per cent in Q4:2018-19, 2.9-3.0 per cent in H1:2019-20 and 3.5-3.8 per cent in H2:2019-20, with risks broadly balanced. GDP growth for 2019-20 in the February policy was projected at 7.4 per cent in the range of 7.2-7.4 per cent in H1, and 7.5 per cent in Q3 – with risks evenly balanced. Since then, there are some signs of domestic investment activity weakening as reflected in a slowdown in production and imports of capital goods. The moderation of growth in the global economy might impact India’s exports. On the positive side, however, higher financial flows to the commercial sector augur well for economic activity. Private consumption, which has remained resilient, is also expected to get a fillip from public spending in rural areas and an increase in disposable incomes of households due to tax benefits. Business expectations continue to be optimistic. Taking into consideration the above factors, GDP growth for 2019-20 is projected at 7.2 per cent – in the range of 6.8-7.1 per cent in H1:2019-20 and 7.3-7.4 per cent in H2 – with risks evenly balanced. Beyond the near term, several uncertainties cloud the inflation outlook. First, with the domestic and global demand-supply balance of key food items expected to remain favourable, the short-term outlook for food inflation remains benign. However, early reports suggest some probability of El Niño effects in 2019. There is also the risk of an abrupt reversal in vegetable prices, especially during the summer months. Second, inflation in fuel group items, particularly electricity, firewood and chips saw unprecedented softening in H2:2018-19. There is, however, uncertainty about the sustainability of this softening in inflation in fuel items. Third, the outlook for oil prices continues to be hazy, both on the upside and the downside. On the one hand, continuing OPEC production cuts will reduce supplies. On the other hand, there is considerable uncertainty about demand conditions. Should there be a swift resolution of trade tensions, a pick-up in global demand is likely to push up oil prices. However, should trade tensions linger and demand conditions worsen, crude prices may fall from current levels, despite production cuts by OPEC. Fourth, inflation excluding food and fuel has remained elevated over the past twelve months with some pick up in prices in February. However, should the recent slowdown in domestic economic activity accentuate, it may have a bearing on the outlook for inflation in this category. Fifth, financial markets remain volatile reflecting in part global growth and trade uncertainty, which may have an influence on the inflation outlook. Sixth, the fiscal situation at the general government level requires careful monitoring. The MPC notes that the output gap remains negative and the domestic economy is facing headwinds, especially on the global front. The need is to strengthen domestic growth impulses by spurring private investment which has remained sluggish. Against this backdrop, the MPC decided to reduce the policy repo rate by 25 basis points and maintain the neutral stance of monetary policy. Dr. Pami Dua, Dr. Ravindra H. Dholakia, Dr. Michael Debabrata Patra and Shri Shaktikanta Das voted in favour of the decision to reduce the policy repo rate by 25 basis points Dr. Chetan Ghate and Dr. Viral V. Acharya voted to keep the policy rate unchanged. Dr. Chetan Ghate, Dr. Pami Dua, Dr. Michael Debabrata Patra, Dr. Viral V. Acharya and Shri Shaktikanta Das voted in favour of the decision to maintain the neutral stance of monetary policy. Dr. Ravindra H. Dholakia voted to change the stance from neutral to accommodative.

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RBI CUTS REPO RATE BY 25 BPS, STANCE REMAINS 'NEUTRAL'

Governor Shaktikanta Das-led six-member monetary policy committee (MPC) on Thursday announced a 25 basis points cut in the short-term lending rate also known as repo or repurchase rate, in its first bi-monthly meeting for FY20. The repo rate now stands at 6 per cent. The MPC said the policy stance stays ‘neutral.’ This was a back-to-back rate cut by the new governor-headed committee. It made India the only country among Asian peers, which has cut interest rate twice in the last three months.

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RBI TO CONTEST RTI QUERIES ON BANK AUDITS

The Reserve Bank of India (RBI) has taken a position that it will contest applications under right to information (RTI) seeking audit and inspection reports of banks despite a Supreme Court ruling in favour of disclosing the information. In a change of tack, the RBI has also decided to share information only with the RTI petitioner and not put the disclosures in public domain. Shailesh Gandhi said that 10 cases were decided by him, which were challenged by the RBI in the Supreme Court. The SC gave a long-detailed reasoning why they saw no reason to change. Yet the RBI says that even if we follow that, it will be only for that particular case and not others, said Gandhi. He said that now RTI applicants have filed a contempt petition because the RBI is denying information which Supreme Court has said that it should disclose. If the RBI is allowed this, every public authority can say that every case can go to Supreme Court, said Gandhi. The RBI is again facing multiple petitions seeking information on bank defaulters’ list, auditor reports and penalties levied on banks. However, the RBI has held back information despite earlier orders requiring it to disclose what is being sought. When he was the RBI governor three years ago, Raghuram Rajan had said that the central bank was not keen on divulging details of defaulters because it would hamper entrepreneurship and chill business activity. He said that defaults could take place for reasons beyond the control of the promoter and a layman reading the list would not understand the minor details. He also pointed out that defaults would include personal loans like credit cards. In a recent petition filed by Girish Mittal and Subhash Chandra Agarwal, the RTI applicants had cited the Supreme Court judgment in the RBI versus Jayantilal Mistry case, where the court held that the RBI has to uphold public interest and not just that of banks. The petitioner had filed a contempt petition, stating that the RBI was disobeying the Supreme Court’s order directing it not to hold back information. However, the stance of RBI’s counsel was that the judgment in the Jayantilal case would apply only to parties in that judgment.

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JUDGES’ APPOINTMENT INFO CAN’T BE REVEALED UNDER RTI, SAYS AG

Attorney General KK Venugopal on Wednesday told the Supreme Court that any information regarding judges’ appointments and correspondence with the government on it cannot be shared with information-seekers under the RTI as it would compromise the judiciary’s independence. But other information such as whether all judges have filed their assets with the CJI or not could be shared provided public interest outweighed the judge’s right to privacy and reputation, he said. The AG was arguing a petition of the Supreme Court Registrar General against a Delhi High Court order ruling that the CJI’s office was a public authority under the RTI and would hence have to share all information that it held with information-seekers. Among the other things, which the court is considering is whether information published in newspapers about alleged attempts to influence judges etc can be shared with the public. The judgement doesn’t seem to have considered the impact of revealing information under the RTI on the independence of the institution, the AG said. He completely ruled out sharing any sensitive information regarding appointments, supercessions, transfers, reasons behind rejection of candidatures for the post etc. He said that these would impinge on the independence of the judiciary as it would not only destroy a person’s reputation but also affect his judicial work. Besides, he said, it would have a chilling effect on consultations with the judges who might be involved in the process not holding forth their views at all for fear of being embarrassed later. Confidentiality cannot be placed ahead of privilege of the judicial office-holders to speak their mind.The AG, who’s arguing for the SC registrar general who had filed an appeal against the high court order, however, left the door open for other information such as who had filed their assets with the CJI’s office and who hadn’t on a case to case basis.

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GOVERNMENT MEETS FISCAL DEFICIT OF 3.4% IN 2018-19

The Finance Ministry is believed to have met the revised fiscal deficit target of 3.4 per cent in the last fiscal 2018-19 largely by cutting expenditure, withdrawals from small savings accounts to meet the food subsidy and higher GST collections. The direct tax collections fell short by Rs 50,000 crore. The GST collections, however, touched Rs 1.06 lakh crore in March and the gross GST revenues overshot the target of Rs 11.47 lakh crore, which also partly helped adjust for the shortfall on the direct taxes front. The fiscal deficit had exceeded the full year target for the last fiscal by 34.2 per cent at the end of February. Officials, however, said this is part of a trend of higher expenditures balancing out higher revenues towards the end of the fiscal. The government might have met the higher food subsidy bill by drawing from small savings to the tune of Rs 30,000-40,000 crore. In the Budget 2018-19, Finance Minister Arun Jaitley had allocated Rs 1.69 lakh crore towards food subsidy, which was increased to Rs 1.71 lakh crore in the revised estimates. The food subsidy bill was pegged higher in 2018-19 on account of rising procurement costs and the government's decision to keep selling prices unchanged in the National Food Security Act, under which highly subsidised food grains are provided. The Pradhan Kisaan Samman Nidhi that the government has announced for 2019-20 enabling the farmers to receive Rs 6,000 a year started in the last quarter of 2018-19. The scheme was allocated Rs 20,000 crore for that period. It is, however, now certain that more than half that amount has not been spent owing to the Election Commission's model code of conduct. The disinvestment target has also been exceeded by Rs 5,000 crore helping the revenue collection. Non-tax revenues like dividends and buybacks also pitched in to keep the fiscal deficit in check.

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INDIA'S SERVICES PMI DIPS TO SIX-MONTH LOW OF 52.0 IN MARCH ON WEAK DEMAND

India’s dominant services industry last month grew at its slowest pace since September, hampered by a weaker expansion in domestic demand that dragged the pace of hiring to a six-month low, a private survey showed. The Nikkei/IHS Markit Services Purchasing Managers’ Index fell to 52.0 in March from 52.5 the previous month but remained above the 50 mark separating growth from contraction for a 10th consecutive month. The index change was partly caused by waning new business growth with further increases to output prices perhaps contributing to the slide, noted Pollyanna De Lima. Although foreign demand improved last month after contracting slightly in February, a sub-index tracking overall demand slipped as firms raised prices more quickly - despite a decline in the rate of input price inflation. However, that is probably not enough to boost retail inflation to above the Reserve Bank of India’s medium-term target of 4 per cent, thus paving the way for more monetary policy easing. The RBI has a policy decision due later on Thursday, and it is widely expected to cut interest rates for a second consecutive meeting, according to a Reuters poll. A slowdown in the growth in services activity, alongside weaker manufacturing expansion, led the India composite index to fall to a six-month low of 52.7 in March - the lowest since September - from February’s 53.8. Digging deeper into the anecdotal evidence provided by surveyed firms, there are concerns about delayed payment from clients and a challenging economic situation, she added.

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BJP LARGEST AD SPENDER ON GOOGLE, REGIONAL PARTIES TAKE SECOND SPOT

Bharatiya Janata Party is the top advertiser for political ads on Google, followed by regional parties in Andhra Pradesh and Telangana, as India heads towards elections in a week, data from the technology giant shows. The ruling party BJP spent as much as Rs 1.21 crore on 554 political ads since February 19. Political parties and candidates have spent a total of Rs 3.76 crore for 831 political ads on Google in the past month and a half, the company’s Political Ad Transparency Report shows. With the role of social media and technology giants in influencing elections becoming a talking point the world over, Facebook, Google and Twitter have released ad transparency reports for political ads for India after doing so for the US and EU earlier. After the BJP, regional parties have been high spenders on Google. Andhra Pradesh and Telangana-based YSR Congress were the next high spenders with Rs 1.04 crore spent on 107 ads. Pramanya Strategy Consulting Pvt Ltd placed video and image ads for Chandrababu Naidu, amounting to Rs 85 lakh for 53 ads that were a mix of videos and images. The Indian National Congress spent Rs 54,100 for 14 ads, nearly all of which are images. Geographically, Andhra Pradesh was the largest spender on political ads, spending Rs 1.73 crore, followed by Bihar where ad spend stood at Rs 1.05 crore. Delhi ads amounted to Rs 9.96 lakh and Andaman and Nicobar Islands spent the lowest- Rs 800- on political ads.

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SC VERDICT ON RBI CIRCULAR MAY TRIGGER DOWNGRADES FOR PSBS

Public sector banks could see downgrades after Tuesday’s Supreme Court verdict that set aside the central bank circular on insolvency proceedings, likely giving a fresh lease of life to the erstwhile practice of negotiated debt-restructuring deals between companies and bankers. Analysts expecting better statistics from state-run lenders in the March and June quarter will now have to change their estimates as the verdict may further delay the resolution of stressed assets, particularly in industries such as power and sugar. Corporate-heavy banks could see earnings downgrades for the current quarter as analysts will have to increase provisioning estimates, said Ashutosh Mishra, head of institutional research, Ashika Stock Broking. Analysts estimate banks’ stressed power assets at $36 billion. Of this, banks have provided for at about 50 per cent. They estimate that auctioning these power sector non-performing loans (NPLs) will need a haircut of 75 per cent, or about $9 billion. If banks are allowed to roll-back NPL classifications, it would be regressive and bank balance sheets would become opaque again, said analysts. Analysts estimate State Bank of India’s earnings per share (EPS) at Rs 27.92 for FY20, while Bank of Baroda and Bank of India are expected to report EPS of Rs 17.13 and Rs 16.47, respectively, this financial year. The public sector bank group made Rs 85,400-crore in losses in FY18. Six of 21 public sector banks have seen the severest stress, with a fifth of their loan portfolio turning bad. Twelve of them made losses in the third quarter. The successive quarterly losses weakened their capital base and pulled down the capacity to lend. As per RBI’s filings to the Supreme Court, out of the 157 companies affected by the circular, not even one case has been resolved so far. So, it remains to be seen how effectively banks utilise this additional flexibility.

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CONGRESS PARTY'S MANIFESTO FAILS TO IMPRESS TRADERS; CAIT SAYS ISSUES CONCERNING TRADERS OVERLOOKED

The apex body for traders' in the country - Confederation of All India Traders (CAIT) - has expressed disappointment with the manifesto released by Congress party. Commenting on it, CAIT said the manifesto has not given any priority to traders and has sumned up the issues related to abolition of E-way Bill and applying one single rate of Goods and Services Tax (GST) in just two lines. CAIT said the traders are fraught with various burning issues which are totally overlooked by Congress. Issues like FDI in retail, e-Commerce, National Trade Policy for Retail Trade, better infrastructural facilities in markets, growth and development of domestic trade in the country, encouragement to traders for enhancement in exports are the subjects which must have received attention of Congress party. The trade leaders are highly disappointed with the manifesto of the Congress party and strongly condemn the approach of the party towards the business community of the country. About no permission required for first three years of conducting any business, CAIT said it is quite illogical and can’t be implemented as traders have to comply with various acts and rules passed by the Parliament under which different types of licenses, permissions are required to obtain.

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NOW THERE IS AN OMBUDSMAN FOR NON-DEPOSIT TAKING NBFCS TOO

The Reserve Bank of India (RBI) announced that it has extended the NBFC ombudsman scheme to cover non-deposit taking NBFCs as well. A year ago in February, the Reserve Bank of India (RBI) had announced an ombudsman scheme to handle grievances of NBFC customers. Up until now, the scheme was implemented for the customers of deposit taking non-banking finance companies (NBFCs). Today the central bank announced, in its 'Statement of Developmental and Regulatory Policies' the operation of the Scheme was reviewed and it has now been decided to extend its coverage to those non-deposit taking NBFCs having customer interface and asset size of Rs.100 crores (Rs.1 billion) and above, by the end of April 2019. If you are a customer with an NBFC, then here is everything you need to know about getting your grievances redressed by the ombudsman.

GROUNDS OF COMPLAINT

One primary difference between banks and NBFC is that the latter are unsecured deposits unlike the deposit in a bank which have the facility of deposit insurance. More importantly, NBFCs cannot offer a rate of interest on deposits more than that approved by RBI from time to time. Currently, no NBFC can offer an interest rate more than 12.5 percent across any tenure. Further, they cannot accept deposit for a period less than 12 months and more than 60 months. Examples of NBFCs include Bajaj Finance, LIC Housing Finance, Mahindra and Mahindra Finance, PNB Housing Finance and so on. As per the RBI notification from last year, as a depositor, here are some of the grievances for which you can file a complaint with the Ombudsman are:

a) Non-payment or inordinate delay in the payment of interest or the repayment of the deposits.

b) Non-presentation or inordinate delay in the presentation of post-dated cheques provided by the customer.

In addition, the ombudsman may also award compensation not exceeding Rs 1 lakh to the complainant, taking into account the loss of time, expenses incurred, harassment and mental anguish suffered by the complainant. The Award is not binding on the NBFC or the complainant as they have the option to appeal against the decision of the ombudsman before the Appellate Authority. In case the NBFC doesn't comply with the directions, RBI can be approached which may initiate action on its part.

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RBI ANNOUNCES COMMITTEES TO EXAMINE REFORMS, REPORTS EXPECTED BY AUGUST

Every time the Reserve Bank of India (RBI) announces its monetary policy, there is an accompanying document called Statement on Developmental and Regulatory Policies. On almost every occasion, these documents include announcements on new committees being formed to examine reforms This time, too, two new committees have been announced—one to examine the efficacy of introducing a secondary market in mortgages and another to study the development of a secondary market for corporate loans. Both the reports are expected in August 2019. The first is to examine. The central bank’s statement says, Globally, residential and commercial mortgages are supported by well-lubricated securitisation markets whereby mortgage originators package portfolios of mortgages and resell them in capital markets as mortgage-backed securities or covered bonds. Well functioning securitisation markets can enable better management of credit and liquidity risks on the balance-sheets of banks as well as non-bank mortgage originators and, in turn, help lower the costs of mortgage finance in the economy. However, in India, the secondary market is primarily characterised by banks directly buying the housing loan book of either a non-banking finance company or a housing finance company. The RBI committee will examine the state of the housing finance securitisation market in India, study best international best practices, including the lessons learnt from the 2008 financial crisis (which had its seed in the secondary market for mortgages). The second panel’s remit would include examining loan contract standards, digital loan contract registry, ease of due diligence and verification by potential loan buyers, online platform for loan sales/ auctions, and accessible archive of historical market data on bids and sale prices for loans.

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RBI DEFERS LINKING LOAN INTEREST RATES TO EXTERNAL BENCHMARK

The Reserve Bank of India in its Statement on Development and Regulatory policies has decided to defer the proposal of linking all new retails loans to external benchmark As per the policy statement, RBI said, Taking into account the feedback received during discussions held with stakeholders on issues such as

(i) management of interest rate risk by banks from fixed interest rate linked liabilities against floating interest rate linked assets and the related difficulties, and

(ii) the lead time required for IT system upgradation, it has been decided to hold further consultations with stakeholders and work out an effective mechanism for transmission of rates.

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E-WASTE MANAGEMENT TO CREATE 4.5 LAKH DIRECT JOBS: WORLD BANK GROUP MEMBER

The electronic waste sector will create 4.5 lakh direct jobs by 2025 and another 1.8 lakh jobs in the allied sectors of transportation and manufacturing, International Finance Corporation (IFC), a member of the World Bank group, said Wednesday. The IFC, which has been working in the e-waste sector since 2012, said under a programme launched by it in 2017, over 4,000 metric tons of e-waste has been collected from citizens and corporations and recycled responsibly under the programme. Electronic waste or e-waste is discarded electrical or electronic devices. Used electronics destined for reuse, resale, salvage, recycling, or disposal are also considered e-waste.

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I SPOKE MY MIND OUT AS ECONOMIST, NOT AS PART OF NITI AAYOG: RAJIV KUMAR TELLS EC ON NYAY REMARKS

Rajiv Kumar is learnt to have told the Election Commission that he spoke against Congress's Nyay scheme as an economist and not as part of the policy body In his reply to a show-cause notice submitted on Tuesday, Kumar is also learnt to have said that he can speak out his mind as an economist on important issues concerning policy and economy. He said that his remarks should not be construed as the stand of Niti Aayog On March 27, the poll panel had sought Kumar's response on his remarks in which he had attacked Congress over minimum income guarantee promise.

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INDIA TO MAINTAIN HIGH ECONOMIC GROWTH RATE TILL 2021, SAYS NAIDU

India would continue to grow at a higher economic growth rate until 2021, Vice President M Venkaiah Naidu said Wednesday while citing the World Bank estimates. While growth rates of developed economies and the entire world are expected to taper off, World Bank estimates suggest India would continue to grow at a high rate until 2021, Naidu said. India (in) 2019 (will grow at) 7.3 per cent, 7.5 per cent in 2020 and 7.5 per cent in 2021. That says that you (India) would move on. This is what experts have written today on World Bank estimates. So, there are opportunities, Naidu said. He pointed out that India has a demographic dividend as 65 per cent of the population is below 35 years of age. The worldwide average economic growth rate will be 2.9 per cent in 2019 and 2.8 per cent in 2020 as well as 2021, according to the estimate released by the World Bank, Naidu mentioned. For China, one of the powerful economies, the growth rate would be 6.2 per cent in 2019 as well as in 2020 and 6 per cent in 2021, he said. Naidu highlighted that India is being respected on account of three factors -- culture, peace-loving nature and its economy. Saying that promoting electric vehicles is a good idea, he pointed out that challenges are many and unprecedented. It is prudent that, experts from the industry, academia and policy makers have gathered here to find sustainable solutions to these problems.

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JET CRISIS: SURESH PRABHU RULES OUT INTERVENTION IN COMMERCIAL MATTERS OF AIRLINE

Suresh Prabhu Wednesday ruled out any interference in efforts to help cash-strapped Jet Airways, saying that the government should not be seen to be doing any kind of deals to help an airline Against the backdrop of lenders set to take control of Jet Airways under a debt resolution plan, he said banks are direct stakeholders and are dealing with commercial matters of the airline where the ministry would not like to intervene. Prabhu said, The ministry should not be dealing in any commercial transactions of any kind. Same thing I did for railways or for anywhere else. The issue is between banks and the management. In response to queries related to Jet Airways crisis, Prabhu said the ministry should not be seen to be doing any deals of any kind that would help in any way. It is always possible. You can help a company by bringing the other down, he said. However, Prabhu said the ministry would be looking at the safety aspects. Safety is ensured because we are telling banks that if you are taking over as management, then ensure that the safety is assured, and give enough funds for the safety, he added.

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JET AIRWAYS OPERATING AROUND 28 PLANES: AVIATION SECRETARY

Cash-strapped Jet Airways is operating 28 planes including 15 aircraft in the domestic routes, civil aviation secretary Pradeep Singh Kharola said on Wednesday. Kharola said that less than 15 planes of the airline were flying. Jet Airways, where the lenders are set to take control as part of a debt resolution plan, on Tuesday disclosed that it has grounded 15 more aircraft due to non-payment of lease rentals. Kharola, said, yesterday, it was 28. When told that the airline has announced grounding 15 more aircraft, he said that then the current fleet would be less than about 15. In the evening, Kharola clarified to PTI that Jet Airways is operating around 28 planes and out of them, about 15 are operating in the domestic routes.

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JET AIRWAYS DEFERS MARCH SALARY PAYMENT TO ITS 16,000 EMPLOYEES

Jet Airways Wednesday deferred the March salary payment to its employees, citing complexities involved in the finalisation of the debt-recast plan, under which the SBI-led consortium of lenders has taken over the management control of the airline. The company has over 16,000 employees on its payroll. Given the complexities of such (finalisation of the resolution plan) processes, it has taken us longer than expected. However, we continue to strive and are in continuous deliberations with the lenders and institutions to find a solution. In light of the current situation, please note that salaries for March 2019 will be deferred, Jet Airways chief people officer Rahul Taneja said in a communication to staff on Wednesday. Though the management did not give a specific date for payment, it said the company will provide an update on the issue on April 9.

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BSNL GIVES APPROVAL TO LAY OFF MORE THAN 50,000 EMPLOYEES, REDUCES RETIREMENT AGE TO 58 YEARS

The BSNL board has given its approval to lay off 54,000 employees Besides, in a further move to save costs, the state owned firm has also reduced the retirement age of its employees to 58 years. According to a report, the BSNL board approved three out of 10 suggestions by the board set up by the government. Meanwhile, the delay in salaries, which happened for the first time at BSNL, could be a blessing in disguise for the telecom firm. BSNL is expecting a payment of about Rs 2,900 crore from stuck government projects in April and May, along with revenue accruals from enterprise business at around Rs 500 crore and a soft loan of around Rs 3,500 crore. All of these put together will enable BSNL to tide through the storm for the next three-four months, a senior BSNL official told. Apart from this, around Rs 700 crore needs to be recovered from Reliance Communications, which has knocked the doors of National Company Law Tribunal for insolvency.

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WITH ELECTION AROUND THE CORNER, ₹2,000 NOTES GET SCARCE

You may have recently found those crisp pink ₹2,000 notes eluding you, both at ATMs and bank branches. Blame it on the elections. There has been pressure on the supply and availability of ₹2,000 notes in some areas — in the South and North — over the past three months, which has only gone up after the notification of elections, a senior executive at a major public sector bank told. The shortage has been attributed to two main factors — ‘hoarding’ of notes for illegal distribution to voters, and the absence of any significant additional supply of new notes of this denomination since March 2018. In reports of seizure of currency by enforcement agencies in recent weeks, ₹2,000 notes figure prominently. There seems to be an intrinsic link between elections and the availability of higher denomination notes. An IDBI Bank officer in Andhra Pradesh’s Krishna district said: Two thousand rupee notes are coming off and on, but in limited number. According to RBI data, there has been only a marginal increase in the total number of ₹2,000 notes over the past two years.

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'FAIR AND HANDSOME' AD DOES NOT DISPARAGE 'FAIR & LOVELY', RULES HC

The Delhi High Court has held that the television advertisement of Emami's fairness cream for men does not disparage Hindustan Unilever's 'Fair & Lovely' cream. Justice Jayant Nath said prima facie it cannot be concluded that Emami's TV commercial seeks to slander the goods of Hindustan Unilever Ltd (HUL). I conclude that there is no merit in the contention of the senior counsel for the plaintiff (HUL). In my opinion, over all the commercial advertisement does not leave an impression that in any manner disparages the product of the plaintiff. It cannot prima facie be concluded that the said TV commercial seeks to slander the goods of the plaintiff, the judge said. The court passed the order on an application by HUL seeking to restrain Emami from telecasting one of its commercials for the product 'Fair and Handsome', which allegedly disparaged the goodwill and reputation of HUL's product 'Fair & Lovely'. The interim application was filed in a pending suit of HUL of trademark infringement, disparagement and unfair trade practices allegedly by Emami. The court listed the main suit for hearing on July 11.

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NSIC PROVIDING INTEGRATED SUPPORT SERVICES TO MSMES IN NORTHEASTERN STATES

In the north-eastern states, National Small Industries Corporation (NSIC) is supporting and assisting Micro, Small and Medium Enterprises (MSMEs) through credit support, marketing support and skill development training to unemployed youths through incubation training centre. The information was shared during the Inter Media Publicity Coordination Committee (IMPCC) meeting for the month of April here. The IMPCC meetings, as decided by the Information & Broadcasting (I&B) Ministry, are conducted on the first Monday of every month. The meeting discussed the role of NSIC for development of the MSMEs and various schemes for the benefits of the enterprises, including SC, ST and female entrepreneurs. With the declaration of election, all the publicity programs of the ministry are now focused on increasing voter’s participation in the election through Systematic Voters' Education and Electoral Participation program (SVEEP), said Kuldeep Singh Dhatwalia

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JET AIRWAYS DELAYS MARCH SALARY OF ALL EMPLOYEES, ASSURES PAYMENTS SOON

Jet Airways has delayed March salary of all its employees While pilots, engineers, and senior management have been paid only till December 2018, other employees recei­ved salary till February 2019. But now with the delay in funding, salaries of all 14,500-plus employees have been deferred. In a staff email, Chief People Officer Rahul Taneja said the company will provide an update on April 9. We would like to assure you that we are making every possible effort to remit salaries at the earliest and we request you to bear with us through these difficult times. You have always stood by the company and have demonstrated exemplary patience and we seek your support yet again, Taneja said in his email.

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HAVE SIGNED ON THE DOTTED LINE TO ENSURE FUNDS FOR JET: NARESH GOYAL

Jet Airways former chairman Naresh Goyal on Wednesday said that he has signed on the dotted line to ensure the release of much-needed funds as a part of the bank-led resolution plan. Goyal's statement comes in the backdrop of funding delays and a day after Supreme Court struck down Reserve Bank of India's circular on the resolution of stressed assets. I have conscientiously taken some hard, personal decisions. In extending my fullest respectful co-operation to the consortium of Indian lenders I have agreed to each and every term and condition laid down by them in a timely manner. I have given all facilitation for the implementation of the resolution plan and signed on the dotted line as required to ensure the release of much-needed funds committed by the lenders in order to secure sustainable future of Jet Airways, Goyal said. I have agreed to sacrifice my every control and interest in the airline with the sole aim to ensure Jet family's lasting welfare, Goyal said as he also wished staff members quick return to normalcy and unending success in the years ahead. The statement was released within hours of Jet announcing salary delays for the month of March.

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JET AIRWAYS MISSES RESOLUTION DATE, MAY FLY TOWARDS NCLT

Bank-led resolution for the full-service domestic airline Jet Airways will be the first casualty of the Supreme Court’s sweeping order quashing the Reserve Bank of India (RBI) circular of February 12. The signing of the agreement to convert debt into 11.4 crore shares at Re 1 was scheduled on Wednesday (April 3, 2019). But now with the court cancelling the circular, bankers are unable to convert the debt into equity or take over the shares of Naresh Goyal at Re 1. Bankers are waiting for some clarity on the plan from both the government and RBI. Lenders were getting statutory and regulatory permissions when the SC order came on Tuesday and overturned their plans. Now the airline may head to NCLT, where it will be auctioned off or Etihad would need to come up with an offer. The situation is very fluid now. Now the only hope seems to be Etihad buying out Goyal’s shares. Heading for NCLT will only delay the process and ground the airlines, said a banker. We have not signed the agreement. The signing was scheduled for today, but now we cannot go ahead as the Supreme court can question us. We would be violating the Supreme court order. With the RBI circular cancelled, we will be unable to convert the debt into equity, so the majority shareholding in the airline continues to rest with Naresh Goyal, said another banker, who is part of the lenders’ consortium. Lenders had laid the ground for a new owner in Jet Airways after they had insisted on an undertaking from the shareholders that will trim founder-chairman Naresh Goyal’s stake to below 10%, while Abu Dhabi-based Etihad will have to agree to exit from the ailing airline. The lenders consortium was planning to call for open bids to sell Jet Airways after obtaining written agreements from Goyal and Etihad. Goyal, who currently owns 51% of Jet Airways, will not have voting rights. Etihad, whose holding is at 24%, according to the plan, has to agree to sell its entire stake if it does not bring in new capital. In the first stage, Goyal will own 25.5% of Jet Airways, down from 51%, after conversion of debt into equity at Re 1 a unit. Etihad’s stake will fall from 24% to 12%, while the banks will hold 50% of Jet Airways. Banks have set a deadline of June 30 to offload the stake.

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61 COMPANIES FACE HEAT FOR MISLEADING HEALTH ADS

Investigation against 61 companies manufacturing healthcare products, including Johnson & Johnson Private Limited for its cough syrup Benadryl, is under way for misleading product advertisements in violation of the guidelines of the Advertising Standards Council of India (ASCI). The ASCI investigated complaints against 415 advertisements in December 2018 and January 2019, and the advertisers ensured corrective action for 125 advertisements as soon as they received complaints from the council. The ASCI’s Consumer Complaints Council (CCC) upheld complaints against 230 advertisements among a total of 290 advertisements evaluated. Of these 230 advertisements, 106 belonged to the education sector, 61 to the healthcare sector, 32 to the food and beverages sector, nine to personal care, and 22 were from the ‘others’ category. The most common reason for upholding complaints was unsubstantiated and exaggerated claims that exploit consumers’ lack of knowledge. In order to create mass consumer awareness about objectionable advertisements, the ministry of information and broadcasting (MIB) issued an advisory for a scroll to be carried by all TV broadcasters in support of self-regulation for grievance against objectionable advertisements that refers to the ASCI, said D. Shivakumar. With more and more TV channels carrying the ASCI WhatsApp number 77100 12345 in a scroll, there has been over a tenfold increase in consumers reaching out to the ASCI, he said.

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SET UP EXPERT COMMITTEE TO PROBE CAUSE OF KERALA FLOOD: AMICUS CURIAE

The amicus curiae appointed by the High Court of Kerala to assist it in a slew of flood related cases, has recommended appointment of an independent expert committee headed by a superior court judge to ascertain what caused the floods of August 2018 and to come up with recommendations for strengthening dam management. In a report submitted to the High Court, Jacob P. Alex, amicus curiae, said that the formation of an expert committee consisting of hydrologists, dam management experts and engineers was essential in view of the severe magnitude of the flood. He suggested that the expert committee could be asked to find out whether a sudden release of water from the dams during heavy rainfall had worsened the situation and whether flood control zones of each dam were maintained as per the the National Water Policy norms and guidelines of the National Disaster Management Authority. It could also look into whether timely alert had been issued about the release of water from dams.

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NEW GOVT SHOULD COME OUT WITH A ROADMAP FOR EASING FINANCIAL CONSTRAINTS OF TELCOS: COAI

The telecom industry on Tuesday demanded that the new government should come out with a clear roadmap for easing financial stress in the sector in terms of rationalising various levies and spectrum fees. A clear roadmap would send a positive signal to the industry as well as the investors, Cellular Operators Association of India (COAI) director general Rajan S Mathews said. The definition of adjusted gross revenue (AGR) should be reviewed to include revenue from licensed activities only. Once you address the AGR (adjusted gross revenue)definition issue, it has cascading benefits. That is the first thing they should look at, he said. Trai has already given its recommendations to the Department of Telecommunications (DoT) on the issue of AGR, but DoT is yet to take a final call on it. Telecom Regulatory Authority of India (Trai) had recommended that spectrum usage charge (SUC) should come down to 1% and licence fees should also be reduced. The issue of double taxation is another major point The industry gives payment for spectrum upfront, but still is there is tax on spectrum usage charge and licence fees, he said. The income from interest, dividend, capital gains from sale of fixed assets, gains from forex fluctuation, income from rent, insurance claims and distributors' margin should not be included in the revenue of the telecom operators for the purpose of computation of licence fee and spectrum usage charges. Besides, revenue from sale of handsets and other subscriber terminals like routers should also be not included in the AGR. If the above issues are addressed by the new government post the general elections within a timeframe of six to nine months, it would result in sizable benefits for the industry, he said. The industry is reeling under high debt and its revenue continues to remain under pressure. For most players, the Ebitda (earnings before interest, tax, depreciation, and amortisation) generated is not enough to meet the interest expenses, he said.

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MONSOON RAINS SEEN BELOW NORMAL THIS YEAR, SAYS SKYMET

Monsoon rains in India are expected to be below normal this year, the country's only private weather forecasting agency said on Wednesday, dampening prospects of higher farm and economic growth in the $2.6 trillion economy. The Pacific Ocean has become strongly warmer than average. The model projections call for 80 per cent chance of El Nino during March-May, dropping to 60 per cent for June to August, Jatin Singh, told. This means, it is going to be a devolving El Nino year, though retaining threshold values all through the season. Thus, monsoon 2019 is likely to be below normal. The monsoon season delivers about 70 per cent of India's annual rainfall and is key to the success of the farm sector in Asia's third-biggest economy.

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MODI’S SOLAR MISSION FACES CHALLENGE FROM HIGH POWER CONSUMING SMALL BUSINESSES

Even as Modi government set a target of having 40 gigawatt (GW) of rooftop solar capacity by 2022, many small businesses are hesitant to install rooftop solar panels a survey said. Several high power-consuming SMEs perceive performance risks in using solar panels, according to a new report from Deloitte and Climate Investment Funds (CIF). The level of awareness about rooftop solar was quite low among the sample surveyed, many high-power consuming SMEs were hesitant to install rooftop solar because of the perceived performance risks, the report added. The report points towards introduction of supportive regulations, risk-bearing financing, and awareness building to scale up rooftop solar in the sector. Limited access to finance, need to strengthen awareness, and escalating energy expenses are impacting the long-term profitability, competitiveness, and sustainability of the sector. However, it presents great opportunity, and a multi-pronged approach involving supportive regulations, risk-bearing financing, and awareness building is needed to demonstrate viability and help scale up rooftop solar in the sector, says Abhishek Bhaskar.

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PASSENGER VEHICLE SALES IN INDIA MAY REACH 5 MILLION UNITS IN FY23: REPORT

The passenger vehicle (PV) market in India is likely to reach a sales figure of about five million units in FY 2023 from 3.3 million units in FY18, thereby clocking a compounded annual growth rate (CAGR) 7.7 per cent, according to a recent ASSOCHAM-Roland Berger joint study. Stronger preference for SUVs (sports utility vehicles) and crossover models is expected to continue in future as well leading to a CAGR of 12 per cent in FY18-23, noted the study. The study also noted that domestic sales of commercial vehicles in India is expected to cross one million units by FY23 from 832,000 units in FY18, thereby clocking a CAGR of 5.6 per cent. The report further said that stricter enforcement of overloading ban, implementation of scrappage policy from April 2020, and GST are all expected to positively impact M&HCV market demand. Terming the government’s intention to move from fossil fuel to clean fuel as a positive step towards positioning India at the forefront of global quest for clean mobility, the report said that the onus is not on the government alone.

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ASIAN ECONOMIES LAG AS TRADE TENSIONS DRAG ON GROWTH, SAYS REPORT

Trade tensions between China and the United States are putting a drag on economies in the region with growth likely to continue to slow in the coming two years, the Asian Development Bank says in a report released Wednesday. The Manila, Philippines-based regional lender’s latest economic outlook forecasts that growth in developing Asia will slow slightly to 5.7 per cent this year and 5.6 per cent in 2020. In 2017 growth was at 6.2 per cent. The main risk to the outlook is still the ongoing trade conflict, as heightened trade policy uncertainty can negatively affect investment and manufacturing activity it said. A sharper slowdown in the advanced economies or the PRC (People’s Republic of China) is another risk. The annual update comes as China and the U.S. prepare for another round of talks, this week in Washington, aimed at resolving their dispute over China’s industrial policies and acquisition of technology. Growth in industrial production also showed signs of weakness, the ADB report said. This is an added burden as the business cycle for major economies heads into a negative trend, said the ADB’s chief economist, Yasuyuki Sawada. The Asian Development Bank forecasts that growth in major economies will slip to 1.9 per cent in 2019 and 1.6 per cent in 2020 from 2.2 per cent last year. The U.S. economy is forecast to expand at a 2.4 per cent annual rate this year, slowing from 2.9 per cent in 2018, and to decelerate to 1.9 per cent growth in 2020. Japan’s growth will remain flat at 0.8 per cent this year, it estimates, and fall to 0.6 per cent next year. The bank expects growth in the area using the euro to fall to 1.5 per cent in 2019 and 2020 from 1.8 per cent in 2018. The report noted that 84 per cent of the 206 million people affected by natural disasters each year in 2000-2018 lived in developing Asian economies. More than half of the 60,000 deaths from such catastrophes each year were in this region, which suffers a large share of extreme weather events and earthquakes. The report says that a large share of the USD 1.7 trillion in annual investments in infrastructure needed over the coming decade should go to reducing risks from such disasters. One area of concern is insurance. Almost all direct damage is not covered by insurance, Sawada said.

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RELIEF TO L&T AS GUJARAT HIGH COURT QUASHES CUSTOMS LEVY OF RS 532 CRORE

In a major relief for corporate major Larsen and Toubro (L&T), the Gujarat High Court has saved it from customs duty demand of Rs 330 crore and an interest of Rs 202 crore for allegedly violating provisions of the Customs Act with regard to storage and release of imported goods from a private bonded warehouse in Hazira. The company is involved in the manufacturing of oil exploration platforms and related machinery, and ship building, at its Hazira facility. The demand notice for the period 1986-2012 was issued by customs department on the ground that the goods imported and stored in the private bonded warehouse were used for manufacturing in the warehouse and cleared from there after the stipulated expiry of one-year. The department claimed that the company never applied for extension of warehousing period and treated the same as ‘improperly removed goods’. It also claimed that some of the imported consignments were stored in the warehouse, used for manufacturing, and cleared from there after expiry of 90 days and before one-year, on which interest is recoverable as per the Act. A division bench of the court quashed and set-aside the demand notice by remarking it as illegal, belated, without authority and law and unreasonable. The court held that throughout the disputed period, there were sufficient checks and balances, where the officers of the department were in control and monitored the movement of goods at the warehouse. The court also held that once the goods were released in the manufacturing process, merely because the same private bonded warehouse was also the manufacturing site, the same cannot be termed as warehoused goods having been stored beyond the stipulated period. The court also held that when warehouse was also the manufacturing site, the restriction of removal from the warehouse within the stipulated period is immaterial. It also considered the fact that production cycle in ship manufacturing is a relatively long process. On the contrary, the customs department contended that the demand notice was as per law and the court does not need to interfere in it. It also contended that the company is supposed to pay interest on the imported goods which remained in the warehouse beyond a period of 90 days. It was also submitted that provisions of the Customs Act make it amply clear that when imported goods have not been removed from a warehouse within one-year, such goods are to be treated as improperly removed goods. However, its submissions failed to convince the court.

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CEMENT INDUSTRY GETS A LIMITED BOOST FROM PMAY 'HOUSING FOR ALL' SCHEME

A review of the government’s flagship scheme, Pradhan Mantri Awaas Yojana, or Housing for All, shows mixed results. In fiscal year 2019, while the progress in rural India was fairly good construction of homes in urban regions continued to lag. Houses completed under the PMAY urban scheme stood at 1.9 million at the end of the March quarter, rising sharply from 1.26 million at the end of the December quarter, analysts at Antique Stock Broking Ltd said in a report on 1 April. Despite that, the government has been able to achieve just about 75% of the target. Over the past three months, nearly 7.5 million houses have been completed under the PMAY. This seems impressive and should benefit central- and eastern-focused cement producers such as UltraTech Cement Ltd and Shree Cement Ltd. But it is not enough to move the needle on overall cement demand in India. According to analysts, there are various estimates of incremental cement demand arising from this scheme. But even if one considers that the scheme has achieved more than 80% success, it won’t be sufficient to absorb the large supply that is available. Secondly, housing demand—apart from the constructions under the PMAY scheme—remains subdued. Concerns over stress in rural India and a potential consumption slowdown could act as dampeners. With a contribution of more than 60%, the housing sector is among the key drivers of overall cement demand. This is followed by infrastructure and commercial property. As per DIPP data, industry volumes increased by 11% year-on-year to 30 million tonnes in January 2019—we note that strong volume growth was despite a high base. Management narratives indicate strong demand from the infrastructure sector even though demand from the trade segment is relatively subdued, Kotak Institutional Equities said in a report on 27 March. DIPP is now department for promotion of industry and internal trade. In short, given the inadequate demand growth, cement industry’s capacity utilization levels are unlikely to improve from the current 70% levels. As such, cement prices and profitability may remain under check.

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ASKED IF SHE WANTS TO BE PM, MAYAWATI SAYS: I'VE LOT OF EXPERIENCE

Bahujan Samaj Party (BSP) chief Mayawati said Wednesday she would use her experience as Uttar Pradesh's chief minister to give the best government at the Centre if we get an opportunity. I have a lot of experience. I will use that experience at the Centre and work for people's welfare, she said at a press conference in Visakhapatnam. If we get an opportunity at the Centre, we will adopt the UP pattern and give the best government in all aspects. At all levels, a good government, said Mayawati, who has led Uttar Pradesh four times. Asked if she would like to become the prime minister, Mayawati, however, said things would be clear when results of the general election are declared on May 23.

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WEST BENGAL TREATS ONLY 49% WASTE WATER BEFORE DUMPING IT IN GANGA: NGT

West Bengal treats only 49 per cent of the waste water before dumping it in the Ganga, the National Green Tribunal has said while directing the state government to submit quarterly report on the issue of solid waste management. The green panel noted that about 90 per cent of municipal solid waste generated in Bengal is being dumped in the open every day in violation of statutory pollution laws. A bench headed by NGT Chairperson Justice Adarsh Kumar Goel also noted that the state generates 1,311 million litres a day (mld) of waste water and while 34 sewage treatment plants have a total installed capacity of 457 mld, their actual utilisation is only 214 mld, which is only 49 per cent. The tribunal directed the state government to notify at least three major cities, towns and panchayats as model cities/towns/villages in every district within two weeks. It also directed that performance audit of all regulatory bodies may be conducted and remedial measures be taken, within six months.

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INDIAN RAILWAYS GETS 1ST INDIGENOUS 9,000 HP ELECTRIC LOCOMOTIVE

In an engineering feat for the national transporter, the Chittaranjan Locomotive Works (CLW) has rolled out Indian Railways’ first indigenous 9,000 HP electric locomotive Last year, Indian Railways got a 12,000 HP electric locomotive, but that was manufactured by French major Alstom in Bihar’s Madehepura in a joint venture with Indian Railways. This is the first time that Indian Railways’ own locomotive units have manufactured an electric locomotive of such high horsepower. Official said that the new 9,000 HP locomotive has been made by upgrading a 6,000 HP electric locomotive, and with this movement of both freight and passenger trains will speed up. The new locomotive has been upgraded at an incremental cost of Rs 1.06 crore. According to the CLW official, after successful validation and trials of the new 9,000 HP locomotive, the unit plans to manufacture 7 more such locomotive for freight operations. These new locomotives will be able to attain maximum speeds of 110 kmph when hauling freight. Additionally, CLW is also hoping to manufacture five passenger locomotives of 9,000 HP. These locos, of WAP-7 series, will be able to pull passenger trains at speeds of 140 kmph. The biggest benefits of the new 9,000 HP locomotives would be better acceleration reserve at higher speed and increased through-put. There is also a possibility of improving the speed potential going ahead, says CLW.

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RAILWAYS HAULS HIGHEST-EVER LOAD OF 1,223 MT IN FY19

Indian Railways loaded an additional cargo of 62 million tonnes (mt) in the year ended March 31, over the previous year, as per initial estimates, according to multiple Railway sources. With this, the Railways has hauled 1,223 mt cargo during the year, against 1,161.66 mt loaded last year. The freight loaded last fiscal is likely to be the maximum loaded ever. Coal continued to occupy the major chunk of incremental cargo moved by the national transporter. Of the 62 mt extra load, the largest chunk or close to 80 per cent was from coal. The Railways loaded 603 mt of coal in 2018-19, against 555 mt loaded in the previous fiscal, according to an official.

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ICC TO JOIN HANDS WITH INTERPOL TO FIGHT CORRUPTION

The International Cricket Council (ICC) Wednesday said it has sought closer working relations with the Interpol an organisation which facilitates worldwide police cooperation, to widen the scope of its fight against corruption in the sport. The cooperation was discussed during ICC Anti-Corruption Unit General Manger, Alex Marshall’s visit the Interpol headquarters in Lyon, France. The ICC and Interpol are keen on working together and our meetings in Lyon last week were productive. The ICC has an excellent relationship with law enforcement agencies in a number of countries but working with Interpol means we are connecting with their 194 members, Marshall said in a media release. Our focus is on education of players and prevention and disruption of corruptors. Where our enquiries reveal criminal offences have been committed, we will refer this to the relevant law enforcement organisations and this makes Interpol an important partner for us, he added.

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CHILDREN MOST ‘VULNERABLE’ IN WEST, NORTH: EY REPORT

Western and northern parts of the country are most susceptible to child vulnerability according to an EY report. The districts are segregated into four categories — least vulnerable, mid-vulnerable, vulnerable and most vulnerable. The far South, North and the North-East exhibited a relatively better performance, falling in the lowest 50th percentile on the vulnerability scale, according to the report. The education index displayed a larger distribution of vulnerability. The country’s central belt showed a relatively higher concentration of education-related vulnerabilities, while the South saw the least. The crime and health indices showed a similar pattern, with high crime- and health-related vulnerabilities in the Central parts.

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CLIMATE, CONFLICTS SET TO PLUNGE MILLIONS INTO FOOD CRISIS

Food crises will affect tens of millions of people across the world this year, researchers warned on Tuesday, after war, extreme weather and economic woes in 2018 left more than 113 million in dire need of help. Conflict and insecurity were responsible for the desperate situation faced by 74 million people, or two-thirds of those affected, in 2018, said the the Global Network against Food Crises in its annual report. Analysing 53 countries, it uses a five-phase scale with the third level classified as crisis, fourth as emergency and fifth as famine/catastrophe. Luca Russo, warned that millions more are now at risk of reaching level three and above The 113 million is what we call the tip of the iceberg. If you look at the numbers further down, you have people who are not food insecure but they are on the verge, Russo told. These people, a further 143 million, are so fragile that it just takes a bit of a drought for them to fall into food crisis, he said. Of countries that suffered food crises in 2018, the worst affected was Yemen, where nearly 16 million people needed urgent food aid after four years of war, followed by the Democratic Republic of Congo at 13 million and Afghanistan at 10.6 million. This is the third year running where the number of people in food crisis hit more than 100 million, but it is slightly lower than in 2017, when 124 million were in need of help. The decrease is mainly because in 2018, countries did not experience the same levels of drought, flooding, erratic rains and temperature rises they did in 2017, said report.

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OTT PLATFORM EROS NOW RELEASES ORIGINAL SERIES ON PM MODI

OTT platform Eros Now announced the release of a 10 part-original series on Prime Minister Narendra Modi called ‘Modi: Journey Of A Common Man’ on Wednesday. The series has been directed by filmmaker Umesh Shukla and written by Mihir Bhuta and Radhika Anand. The different phases of Modi’s life will be depicted by actors Faisal Khan, Ashish Sharma and Mahesh Thakur, the company said in a statement. The Eros Now original series is produced by Benchmark Pictures led by Umesh Shukla and Ashish Wagh. Recently, the Election Commission (EC) also gave its nod for the release of a biopic on Modi which is set to hit the screens on April 5.

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INDIA TO ACHIEVE 7.2% OF ETHANOL BLENDING WITH PETROL THIS SEASON

India is set to close in on the highest ever of 7.2 per cent of ethanol blending with petrol in the current season (December 2018 – November 2019). The current consumption of fuel sets 3300 million litres of ethanol requirement to achieve 10 per cent of blending target by 2022 for the entire country excluding J&K, North Eastern States and island territories. For the current season itself i.e. 2018-19, however, sugar mills in India have contracted for supply of 2370 million litres which works out to 7.2 per cent of the petrol consumption in India. Average all India ethanol blending with petrol achieved last year in 2017-18 was 4.22 per cent. Against a requirement of 3300 million litres of ethanol for 10 per cent ethanol blending in the country, ethanol supply contracts have been signed for 2370 million litres for the ethanol supply period 2018-19. If quantity as contracted is successfully blended, about 7.2 per cent of petrol consumption will get substituted by this environment friendly bio-ethanol, said Abinash Verma, Director General, Indian Sugar Mills Association (ISMA). Distilleries in India have offered 450 million litres of ethanol supply to be manufactured from ‘B’ heavy molasses and sugarcane juice, amounting to reduction of around 5 lakh tonnes of sugar production. Similarly, 165 million litres of ethanol has been contracted to be manufactured and supplied from damaged foodgrains, unfit for human consumption.

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46% OF TEA PRODUCED IN INDIA IS SUSTAINABLE AND SAFE, SAYS TRUSTEA

Trustea, a locally developed and owned Indian sustainability code and verification system for the Indian tea sector, has announced that it has verified 608 million kg of tea as being sustainable and safe The total verified commodity is almost half (46 per cent) of the total tea produced in the country. The code has reported a 38 per cent increase in 2018, indicating a clear transition towards changing production and business practices in the industry. The code ensures long-term sustainability of the industry by improving the tea growing practices of the fast-growing small-holder segment and main-streaming the bought leaf factories and small estates into the sustainability fold, said Rajesh Bhuyan. Trustea has been engaging with nearly 49,000 smallholder tea growers, three lakh female workers and 2.5 lakh male workers and certifying over 460 estates and bought leaf factories to demonstrate progress and improvements under the good agricultural and manufacturing practices of the Trustea code, he said. The need to adopt sustainable practices in the tea sector, S Soundararajan, Director — Tea Development, at the Tea Board of India, said India produces about 1,325 million kg of tea annually, making it the most consumed beverage.

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CIVIL SOCIETY GROUPS TO RALLY AGAINST MODI GOVT; 'SECULAR' PARTIES TO LEND SUPPORT

Over 200 civil society organisations are planning to publicly denounce the Modi led BJP government, seek its ouster and launch a door to door campaign for the same. The move comes days after activist Jean Dreze's temporary detention by Jharkhand police sparked an uproar among civil society groups. Several political parties also took up the issue. The groups will look to support ‘secular parties’ and also seek a commitment from them on about ten key issues related to education, Dalit rights, democratic institutions, minority rights, informal sector protection, employment and so on. Termed ‘Jan Sarokar’/ ‘People’s agenda’, the move has already won the blessings of the Opposition. The Jan Sarokar is expected to be launched at a mega gathering on 6th April at Delhi’s Talkatora stadium in the presence of UPA Chairperson Sonia Gandhi. CPI(M)’s Sitaram Yechury, former JDU leader Sharad Yadav, CPI’s D Raja, RJD’s Manoj Jha are among those expected to lend their support to the same. It is gathered that other opposition parties- Sharad Pawar led NCP, National Conference, Naidu’s TDP are also likely to join in. 21 major civil society networks and over 200 NGOs spanning all key sectors will join hands to lead the campaign.

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CHINA TO BUILD 6-8 NUCLEAR REACTORS A YEAR TO MEET 2030 DEVELOPMENT GOALS: OFFICIAL

China will be able to build six to eight nuclear reactors a year if project approval processes return to normal as expected in the near future, the chairman of the state-owned China National Nuclear Corporation (CNNC) told Reuters on Monday. That should be enough to meet our country's 2030 development plans, Yu Jianfeng said. China did not approve any new conventional nuclear projects for three years before giving the nod to two new reactor complexes in southeast China earlier this year. China originally planned to put 58 gigawatts of nuclear power into operation by 2020, with another 30 GW under construction. Total capacity stood at 46 GW by the end of last year, with 11 GW still being built. But the slowdown means it is unlikely to meet its 2020 goals, and industry executives have been calling on the state to accelerate the approval process in order to ensure that 2030 energy, climate and pollution targets can be reached. China aims to raise the share of non-fossil fuels to 20 per cent of its total energy mix by 2030, up from 15 per cent in 2020. It also aims to bring greenhouse gas emissions to a peak by around the end of the next decade.

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U.K.'S HOUSE OF COMMONS APPROVES BREXIT DELAY LAW

The lower house of the British Parliament on Wednesday approved a legislation which would force Prime Minister Theresa May to seek a Brexit delay to prevent a potentially disorderly departure on April 12 without a deal. The legislation, put forward by opposition Labour lawmaker Yvette Cooper, was rushed through all of its stages in the House of Commons in less than six hours. It was approved at the final stage by 313 votes to 312. It now has to pass the upper chamber, the House of Lords. Ms. May said on Tuesday she would seek another short extension to Brexit beyond April 12, in order to try and work with Labour leader Jeremy Corbyn to get her thrice-rejected Brexit deal approved by Parliament. Mr. Cooper said the legislation was still needed to set out a clear process for how decisions are taken over the length of any extension. The Bill requires Ms. May to get the Parliament's approval for the detail of any delay and allows lawmakers to propose a different length of extension. Perhaps crucially it would demonstrate to the EU parliamentary support for what the prime minister is asking for, she told parliament during the debate on the legislation. Any further delay to Britain's exit would need unanimous approval from EU leaders. To avoid an abrupt no-deal Brexit on April 12, Ms. May must present a summit of EU leaders next Wednesday with a plausible strategy to win approval in Parliament for the Withdrawal Agreement that she negotiated with Brussels. Ms. May has said that if she cannot agree a unified approach with Mr. Corbyn, then the government would come up with a number of options on the future relationship with the EU and put them to Parliament in a series of votes.

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ANOTHER INDIAN NATIONAL SENTENCED BY US COURT IN SOPHISTICATED CALL CENTRE SCAM

An Indian national has been sentenced to 16 months in jail in the US for his involvement in a sophisticated call centre scheme that victimised over 340 people, resulting in over USD 200,000 in losses in the latest crackdown on India-based call centre frauds in America. Call centre operators called US residents over the telephone and misled the potential victims into sending money utilising a number of different confidence scams, court documents showed. According to Treasury Inspector General for Tax Administration, J Russell George, since October 2013, more than 15,000 victims have suffered over USD 75 million in losses to the perpetrators of telephone scammers who impersonate Internal Revenue Service (IRS) employees. US investigation has identified 140 scammers who, have or are, facing federal criminal proceedings, the DoJ said.

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PAKISTAN AIRSPACE CLOSURE HITS AFGHAN, KAZAKH, RUSSIAN AIRLINES

Thousands of passengers travelling this summer are likely to face longer flights and pay higher airfares due to the closure of Pakistan airspace in place for more than a month now after the Balakot airstrike. Among the worst affected are airlines from West and Central Asia as their proximity to India and Pakistan means that they have to now take a much longer route to comply with the ban. Passenger demand between Kabul and Delhi is now a tenth of what it used to be before the ban as airfares have more than doubled – increasing from ₹18,000 to ₹42,000 for a return journey, according to the Ariana Afghan Airlines’ India head, Barun Birla. The fall in demand is despite SpiceJet and Air India cancelling their flights to Kabul and is an indication that a vast majority of those who travel from Afghanistan to India for medical treatment may be forced to delay their travel plans. The airspace closure forced the flights between Delhi and Kabul to take a longer route. As a result the flying time increased to five hours (from 2 hours and 10 minutes) and the airfare doubled. Considering the fact that a large number of Afghans travel to Delhi for treatment, this has caused the cost of travelling for them to go up, Mohammad Khairullah Azad, Charge d’affaires, Afghanistan Embassy told. With summer vacations around the corner, students returning from India will also be badly affected, he added. For every dollar earned, we are spending $2. Costs have increased in all areas - fuel, crew rotation, passenger handling, catering and other costs, Kazakhstan carrier Air Astana’s Regional General Manger for Gulf and Indian subcontinent Karlygash Omurbayeva said in an e-mail interview. Everyone is affected badly by this decision, said UAE Ambassador to India Ahmed Al-Banna, adding flights to Abu Dhabi and Dubai had become an hour longer and seen a 25% increase in fuel costs. This is an internal matter between India and Pakistan, but I hope this will be resolved soon, he added.

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BRUNEI INTRODUCES STONING TO DEATH FOR GAY SEX, ADULTERY

Brunei on Wednesday introduced harsh new sharia laws including death by stoning for adultery and gay sex, despite a storm of global criticism from politicians, celebrities and rights groups. The tough penal code in the tiny country on tropical Borneo island — ruled by Sultan Hassanal Bolkiah — fully came into force following years of delays. The laws, which also include amputation of hands and feet for thieves, make Brunei the first place in East or Southeast Asia to have a sharia penal code at the national level, joining several mostly Middle Eastern countries such as Saudi Arabia. Rape and robbery are also punishable by death under the code and many of the new laws, such as capital punishment for insulting the Prophet Mohammed, apply to non-Muslims as well as Muslims. The decision to push ahead with the punishments has sparked alarm around the world, with the United Nations labelling them cruel and inhumane and celebrities, led by actor George Clooney and pop star Elton John, calling for Brunei-owned hotels to be boycotted. In a public address to mark a special date in the Muslim calendar, the sultan called for stronger Islamic teachings but did not mention the new penal code.

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Thanks & Regards,
CS Meetesh Shiroya