GST listing in RS likely this week, Jaitley to meet state FMs

 New Delhi, Jul 24 (PTI) Government is likely to list the much-delayed GST Bill for discussion in the Rajya Sabha this week after Finance Minister Arun Jaitley meets state finance ministers on Tuesday.

Jaitley, who has been engaged in back-channel negotiations with Congress leaders to get the main opposition party on board, will discuss proposed amendments to the GST legislation passed by the Lok Sabha at the meeting of the empowered committee of state finance ministers.

The meeting may take up changes as demanded by the Congress in the constitutional amendment Bill, including one for scrapping of one per cent additional tax in hands of the states, official sources said.

The Goods and Services Tax (GST) Bill will be listed for discussion in the Rajya Sabha after taking on board views of the states.

On Friday, while listing out government business for the week beginning July 25, Minister of State for Parliamentary Affairs Mukhtar Abbas Naqvi told the Rajya Sabha that the GST Bill will come up for discussion next week.

"(This is for) further consideration and passing of the Constitution 122nd Amendment Bill, 2014, as passed by the Lok Sabha and as reported by the Select Committee of the Rajya Sabha," he said in the Upper House.

The Congress, which originally mooted GST in 2009 to replace all indirect taxes, has been demanding that the overall rate be capped at 18 per cent and scrapping of an additional 1 per cent tax designed to compensate manufacturing states that fear losing out on revenue. It also wants an independent mechanism to resolve disputes between states over revenue sharing.

While Jaitley has indicated his openness in scrapping the 1 per cent additional tax after a panel headed by Chief Economic Advisor Arvind Subramanian favoured it, the issue needs to be discussed with the manufacturing states.

In order to mobilise support from regional parties for the long-pending indirect tax reform, Jaitley met Bihar Chief Minister and JD(U) leader Nitish Kumar and courted senior leadership of Andhra Pradesh and Telangana over the weekend.

SC junks plea for action against Bollywood actor Aamir Khan

 New Delhi, Jul 22 (PTI) The Supreme Court today dismissed a plea seeking registration of an FIR against Bollywood super star Aamir Khan for allegedly making "improper" use of national emblem on his TV show 'Satyamev Jayate'.

A bench comprising Chief Justice T S Thakur and Justices F M I Kalifulla and A M Khanwilkar rejected the plea of Chandigarh-based NGO Arrive Safe Society and said if the petitioner has any grievances, the proper forum like police could be approached.

Harman S Sidhu, who runs the Chandigarh-based NGO, had approached the apex court after his plea was dismissed by the Punjab and Haryana High Court.

Sidhu in his plea argued that offences punishable under Emblems and Names (Prevention of Improper Use) Act, 1950 and The State Emblem of India (Prohibition of Improper Use) Act, 2005 has been committed by the actor by showing the emblem without due permission of the Union government.

He had also alleged that Khan and others made improper use of national emblem "for private commercial gains," which is illegal.

To buttress his claims, Sidhu had referred to an episode of the 'Satyamev Jayate' series in which Khan had highlighted how a majority of road accidents cannot be dismissed as accidents and should be termed murders.

Sensex ends 93 pts up on earnings lift, fund inflows

Mumbai, Jul 22 (PTI) Extending its consolidation phase, the BSE Sensex today recovered marginally by 93 points on selective buying by retail investors and sustained foreign inflows even as Asia ended weak, tracking a pullback in US markets from record highs.

The market opened positive on overnight earning numbers of FMCG major ITC, while subdued Asian cues weighed on trading momentum after Bank of Japan (BOJ) chief Haruhiko Kuroda's comments dashed hopes for so-called 'helicopter money'.

The indices moved between gains and losses till late afternoon, but saw emergence of buying on string of positive earning results and reports that Rajya Sabha will take up the GST Bill for discussion next week.

Besides, encouraging first quarter earning numbers by some bluechips buoyed trading sentiment.

However for the week, markets turned lower with Sensex and Nifty down 33.26 points and 0.20 points, respectively.

On the day, Biocon climbed 15.28 per cent to Rs 808.70 after the firm posted 17 per cent rise in net profit for the first quarter, while Cairn India ended 8.72 per cent up at Rs 192 after hitting a fresh 52-week high of Rs 198.40.

"Neither weak Asian markets nor Europe through the day failed to drag Indian stocks lower as a week long consolidation had already brought several stocks to lower levels, attracting value-buying and short covering," said Anand James Chief Market Strategist Geojit BNP Paribas FS.

The Sensex opened a shade higher at 27,721.72 and advanced to hit a high of 27,832.45, before settling at 27,803.24, a gain of 92.72 points or 0.33 per cent.

The 50-share NSE Nifty after hovering between 8,548.95 and 8,489.80, settled higher at 8,541.20, recording a gain of 31.10 points or 0.37 per cent.

Mortgage lender HDFC rose 1.78 per cent to Rs 1,355.65 on plans to raise Rs 2,000 crore via non-convertible debentures on a private placement basis.

Elsewhere, Japan's Nikkei ended 1.09 per cent down while Hong Kong's Hang Seng shed 0.16 per cent. Shanghai composite index lower by 0.86 per cent.

Besides, Europe was trading higher with London's FTSE rising 0.26 per cent, Paris up 0.41 per cent and Frankfurt 0.14 per cent in the green.

The US stocks snapped a nine-day string of gains, as a hot equity market cooled ahead of key central bank meets.

Brexit

Government has assessed the impact of Brexit on the Indian economy. Thus far, India has not only avoided adverse impacts, it has in fact emerged as a safe haven for investors around the world. 

For example, the rupee depreciated against the US dollar by around 1 per cent for one day post-Brexit referendum, while currencies of other emerging markets depreciated for many days. But on a cumulative basis, the rupee has actually appreciated by 0.3 per cent on 19th July 2016 over 23rd June 2016. Similarly, the Sensex fell only on one day by around 2 per cent while the equity index of many other developed and developing countries fell by a higher percentage for many days after Brexit referendum. On cumulative basis, the Sensex has risen by 2.9 per cent on 19th July 2016 over 23rd June 2016. The G-sec rate has also declined from 7.48 per cent to 7.28 per cent over this period. By virtue of its domestic policies, India is seen as a haven of stability and opportunity in these turbulent times. 

As a part of the global economy, India will obviously be affected if there is slowdown in growth in the UK and EU following Brexit. India’s exports in goods to the UK and EU (including UK) have been around 3 per cent and 17 per cent of our total exports. India also exports roughly $10 billion in software to both the UK and EU. Overall though, India’s exports to both UK and Europe have been on a downtrend in the past two years on account of subdued demand led by a frail and scattered recovery in the region. The forecast of global growth for 2016 has also been revised downward by the IMF from 3.2 per cent to 3.1 per cent in the aftermath of Brexit. 

However, these potential effects on India’s growth could be offset by the weaker price of oil, which will help maintain macro-stability, and by the likelihood of more policy support in the advanced economies. Moreover, the impact of Brexit on trade, if any, in the medium term, would also depend on bilateral trade negotiations that will determine India’s future market access to these countries. 

While the Government and the RBI are closely monitoring the situation, India’s macroeconomic fundamentals are strong. Besides, the strong forex reserves position can provide a buffer against any temporary episodes of volatility in the domestic foreign exchange market. Further, RBI’s proactive liquidity management could ensure stability and calm in money markets. As regards the stock market, the Government and Securities and Exchange Board of India (SEBI) are keeping a constant vigil. SEBI has laid down various regulations and guidelines for protecting investors’ interest and ensuring orderly functioning of the stock market. 

This information was given by Union Minister for Finance Shri. Arun Jaitley today in reply to a Lok Sabha question. 

Indian Navy puts its might in search operations for Missing air force aircraft AN-32

ENC deploys two P8i Long Range Maritime Patrol Aircraft with advanced Electro-optics and radars, two Dornier aircraft and twelve ships with integral helicopters to join the search operations initiated to locate the Indian Air Force AN-32 transport aircraft reported missing approx 300 km due East of Chennai this morning. The AN-32 was on a routine sortie from Air Force Station Tambaram to Port Blair and reported to have 29 personnel onboard including the crew. 

Four ships of ENC which were deployed in the Bay of Bengal on different missions, have been diverted to the search area and eight ships of Eastern Fleet with Fleet Cdr embarked onboard which are on return passage from the South China Sea are also proceeding at best speed to join the search operations. A submarine at sea is also diverted to the area for locating the transmissions from emergency locator beacon onboard the aircraft. 

Need mix of fiscal, monetary policies to deal with Brexit: FM

 Shanghai, Jul 21 (PTI) India has underlined the need for a judicious mix of fiscal, monetary and structural policies by major economies to deal with the heightened uncertainty on account of Brexit.

"Governments, Central Banks and regulators have to mitigate the pressure of such vulnerabilities through judicious mix of fiscal, monetary and structural policies," Jaitley said in his speech at the meeting of the Board of Governors of the New Development Bank (NDB).

In his speech, read out by Joint Secretary in the Finance Ministry Raj Kumar, Jaitley said that Britain's decision to exit from the European Union, commonly termed as Brexit has further heightened uncertainty, market volatility and risk-averse behaviour.

Kumar represented India at the first annual general body and board of governors meetings of the NDB which took place in Shanghai yesterday, as Jaitley could not attend it because of the ongoing Parliament session back home.

Outlining the challenges, he said the current global economic context is far from being robust and is marked by a modest pickup in some advanced economies from their low levels of growth.

He also said that decline in growth in emerging markets and developing economies, increased financial sector volatility, and, in general, a downward revision of global growth projections by the International Monetary Fund (IMF) also pose challenges.

IMF earlier this week has cut global growth forecast for 2017 by 0.1 percentage point to 3.4 per cent citing "substantial" increase in economic, political, institutional uncertainty on account of Brexit.

Jaitley said the structural problems of emerging markets and developing economies (EMDE) continue to affect their growth.

"The sluggish global trade and low commodity prices have also adversely affected commodity-exporting EMDEs, by aggravating their corporate and other economic vulnerabilities," he added.

India, Jaitley stressed, is following the approach of 'Reform to Transform' through far reaching structural reforms.

"We have taken several initiatives to boost investment climate and improve the ease of doing business," he said.

Referring to the initiates, he said setting up National Infrastructure Investment Fund would stimulate investment in infrastructure and Insolvency and Bankruptcy Code 2016, for easier exit of companies have been passed by Parliament.

Besides, programmes such as Make in India, Start-up India, and Skill India are focused on encouraging innovation, entrepreneurship and job creation.

The government has launched a massive financial inclusion programme and more than 20 crore bank accounts have been opened for the unbanked persons.

"We are now using Aadhaar, a unique identification system with statutory backing, as backbone for targeted delivery of financial and other subsidies, benefits and service," Jaitley said.

US companies consider India their next FDI frontier: Gadkari

 Washington, Jul 20 (PTI) US companies consider India their next FDI frontier and are keen to pump in billions of dollars into the country's infrastructure and transportation sector, Union Minister Nitin Gadkari has said.

"There is overwhelming enthusiasm among American companies and investors to invest in India. Results could be seen soon," Road Transport and Highways Minister Gadkari told PTI as he concluded his week-long trip to the US that took him to Washington, New York, St Louis, San Francisco and Los Angeles.

Acknowledging that India's infrastructure sector is lagging behind and it has a long way to go to match the international standards, Gadkari said that the modernisation and upgradation of the transport infrastructure has the potential to become driver of the country's growth.

Now that the Modi Government has taken several steps to facilitate smooth and hassle-free foreign direct investment in the infrastructure sector, Gadkari said based on his interaction and meetings in the US he is confident that billions of dollars would soon start flowing into India.

Gadkari said in addition to construction of a road network across the country, the ambitious Sagarmala project along with promoting use of green fuel and clean energy vehicles would create a large number of jobs in the country and provided an unprecedented boost to the Indian economy.

During his week-long trip, Gadkari held a series of productive interactions with investment bankers, fund managers and captains of trade and industry in infrastructure sector.

These meetings, he noted, helped in dispelled apprehensions with regard to bottlenecks and red-tape in the Indian government.

"Prime Minister Modi has made the infrastructure development top-most priority of his government, I told them," he said, adding that the US companies now consider India their next frontier of foreign direct investment.

"The Prime Minister remains committed to improving the country's road, highways, and port connectivity in a time-bound, result-oriented, corruption-free and transparent manner through e-governance and fast-tracking decision-making process," he said.

"I am returning home fully satisfied with his visit which has broken new grounds in the bilateral ties between India and the US and given the much needed impetus to cooperation in the field of infrastructure, particularly road transport, highways and shipping sectors," Gadkari said.

In his talks with the US Transportation Secretary Anthony Foxx, he sought cooperation in sharing intelligent traffic systems and transfer of technology in road engineering, use of IT in reducing road accidents, centrally controlled traffic light surveillance systems for road safety.

During his visit to Tesla, Gadkari asked it to make India their Asia manufacturing hub and offered land near major Indian ports to facilitate export of their vehicles to South and South East Asian countries.

Gadkari said India is committed to encouraging alternate pollution free transport in the country by providing incentives to bio-fuel, CNG, Ethanol and electric vehicles.

Govt releases Rs 23,000 cr to recapitalise 13 PSU banks

SBI gets the biggest chunk of Rs 7,575 cr followed by Rs 3,101 crore for Indian Overseas Bank

The government on Tuesday said it is releasing Rs 22,915 crore to recapitalise 13 public sector banks, including the biggest lender State Bank of India. The sum is about 92% of the budgeted provision of Rs 25,000 crore.

The highest sum of Rs 7,575 crore is being released for SBI, followed by Rs 3,101 crore for Indian Overseas Bank and Rs 2,816 crore for Punjab National Bank, a government statement said on Tuesday. 

The yardstick for allocation was capital requirements of the banks based on compounded annual growth rate for the last five years, banks' own projections of credit growth and an objective assessment of the potential for growth of each PSU bank.

Consequent upon the above exercise, 75% of the amount collected for each bank is being released now to provide liquidity support for lending operations as also to enable banks to raise funds from the market, the statement said.  

The remaining amount, to be released later is linked to performance, with particular reference to greater efficiency, growth of both credit and deposits and reduction in the cost of operations.  

In line with the announcements made under Indradhanush and the Budget, the government undertook an exercise to assess the capitalization needs of PSU Banks for 2016-17.  

Finance minister Arun Jaitley had said the government might release higher sum than provided in the Budget, if resources permit it.
 

S. No.	Name of Bank	Amount (in Rs crore)
1.	Allahabad Bank	44
2.	Bank of India	1,784
3.	Canara Bank	997
4.	Central Bank of India	1,729
5.	Corporation Bank	677
6.	Dena Bank	594
7.	Indian Overseas Bank	3,101
8.	Punjab National Bank	2,816
9.	State Bank of India	7,575
10.	Syndicate bank	1,034
11.	UCO Bank	1,033
12.	Union Bank of India	721
13.	United Bank of India	810
	Total	22,915

Merger of Nationalised banks

The guiding principle for the consolidation process of banking in India was suggested by Narasimham Committee. According to which any initiative with respect to merger of public sector banks has to come from the Boards of the banks concerned, the extant legal framework, keeping in view the synergies and benefits of merger and their commercial judgment. Government’s / Reserve Bank of India’s role in the merger of banks would be that of a facilitator. 

The Cabinet in its meeting on dated 15th June 2016 has approved the proposal of acquisition of assets and liabilities of subsidiary banks i.e. State Banks of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and Bhartiya Mahila Bank (BMB). 

The benefits for attempting the merger of 5 subsidiary banks and BMB with SBI include rationalization of resources, reduction of costs, better profitability, lower cost of funds leading to better rate of interests for public at large, improved productivity and customer services. Merger will also ensure that due to size and scale of economy, SBI will be able to better handle ensuing competition from new Banks. 

This information was given by Minister of State for Finance Shri. Santosh Kumar Gangwar today in reply to a Rajya Sabha question. 

Ex-Air Force chief Akin Ozturk takes responsibility for coup attempt in Turkey — Anadolu

General Ozturk was detained on July 16 at the Akinci air base near Ankara

Akin Ozturk

ANKARA, July 18. /TASS/. General Akin Ozturk, former commander of the Turkish Air Force, has confessed to prosecutors to plotting the military coup, Anadolu news agency said on Monday.

A group within the Turkish military attempted to stage a coup d’etat on Friday night, using tanks and helicopters. The attempt was botched as the plotters failed to seize any senior government officials and to gain major support among the Turkish military.

At least 208 people were killed and some 1,500 injured in the failed coup.

General Ozturk was detained on July 16 at the Akinci air base near Ankara.