General Affairs
Arun Jaitley Calls For Increased Public Spending On Rural Development
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NEW DELHI: Finance Minister Arun Jaitley on Tuesday called for increased public spending on rural development to boost domestic economic growth amid a global slowdown.
"Bad monsoon in the last two years has resulted in rural spending going down. In such a situation, the government needs to come forward and increase its spending. The pace of public spending has increased," Mr Jaitley said at an event organised to mark 10 years of the implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.
"If you look at the global situation, there is slow growth. The economies which were earlier compared with India, like South Africa, Brazil and Russia, are all growing slow. In a way, there is a negative growth rate, though the economies are recovering," he said.
"We cannot control global events that impact us, but increasing demand in rural areas is in our hands," the finance minister said. He said that revitalising the rural economy through road construction, electrification, irrigation and crop insurance is a priority for the government.
Speaking earlier, Rural Development Minister Birender Singh told the gathering that the decade-old MGNREGA scheme has been infused with a major dynamism by the NDA government.
"The Rs.33,000 crore allocation for the scheme in 2015-16 increased to almost Rs.37,000 crore. Ninety-four percent of the money for MGNREGA work has already been disbursed to the states," the minister said.
"Over eight crore families have been given employment under MGNREGA scheme, and we plan to target 11 crore families next year," he said.
NEW DELHI: Finance Minister Arun Jaitley on Tuesday called for increased public spending on rural development to boost domestic economic growth amid a global slowdown."Bad monsoon in the last two years has resulted in rural spending going down. In such a situation, the government needs to come forward and increase its spending. The pace of public spending has increased," Mr Jaitley said at an event organised to mark 10 years of the implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.
"If you look at the global situation, there is slow growth. The economies which were earlier compared with India, like South Africa, Brazil and Russia, are all growing slow. In a way, there is a negative growth rate, though the economies are recovering," he said.
"We cannot control global events that impact us, but increasing demand in rural areas is in our hands," the finance minister said. He said that revitalising the rural economy through road construction, electrification, irrigation and crop insurance is a priority for the government.
"The Rs.33,000 crore allocation for the scheme in 2015-16 increased to almost Rs.37,000 crore. Ninety-four percent of the money for MGNREGA work has already been disbursed to the states," the minister said.
"Over eight crore families have been given employment under MGNREGA scheme, and we plan to target 11 crore families next year," he said.
Avoid Support To Terror Groups In Kashmir: Pak Panel To Government
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ISLAMABAD: A Pakistani parliamentary panel has asked the government to avoid "encouraging" support to terror groups in Kashmir and take action against outfits involved in attacks there to dispel international concerns.
The Pakistan National Assembly Standing Committee on Foreign Affairs yesterday issued a four-page policy paper linked to Kashmir, the Express Tribune reported.
"Pakistan should not encourage calls for active support to armed, banned, militant groups in Kashmir," the paper, that has a series of policy recommendations on Indo-Pak ties, said.
India has been demanding that Pakistan act against terrorist groups operating from its soil.
The committee, headed by ruling Pakistan Muslim League- Nawaz (PML-N) lawmaker Awais Ahmad Leghari, proposed the government to take action against "violent armed outfits" to dispel international concerns that Pakistan was not doing enough against groups involved in attacks in Kashmir.
The panel suggested that Pakistan's policy towards India should be based on four key principles -- reciprocity, reduction, resumption and result.
"Pakistan should continue seeking comprehensive engagement with India on all outstanding issues," it said.
In the absence of this scenario, however, the committee recommended that the government engage with India on four key issues -- Kashmir, water, trade, and culture and communication.
On Kashmir, the panel recommended that Pakistan continue calling for resolution of the dispute as the core issue between the two countries.
"A key component of Pakistan's proactive involvement on the Kashmir issue should be lending solid diplomatic and moral support to the Kashmiris," it said.
On the water issue, the panel said the issues should be discussed holistically rather than focusing on particular projects. It called for highlighting issues related to the Indus Water Treaty in international forums.
On trade, the committee said Pakistan should focus more on reducing and controlling informal trade with India.
"This can be done through enhancing the capacity of the customs department and the border forces. Furthermore, by relaxing the process to acquire visa, informal trade can be controlled," it said.
The Pakistan National Assembly Standing Committee on Foreign Affairs yesterday issued a four-page policy paper linked to Kashmir, the Express Tribune reported.
India has been demanding that Pakistan act against terrorist groups operating from its soil.
The committee, headed by ruling Pakistan Muslim League- Nawaz (PML-N) lawmaker Awais Ahmad Leghari, proposed the government to take action against "violent armed outfits" to dispel international concerns that Pakistan was not doing enough against groups involved in attacks in Kashmir.
The panel suggested that Pakistan's policy towards India should be based on four key principles -- reciprocity, reduction, resumption and result.
"Pakistan should continue seeking comprehensive engagement with India on all outstanding issues," it said.
In the absence of this scenario, however, the committee recommended that the government engage with India on four key issues -- Kashmir, water, trade, and culture and communication.
On Kashmir, the panel recommended that Pakistan continue calling for resolution of the dispute as the core issue between the two countries.
"A key component of Pakistan's proactive involvement on the Kashmir issue should be lending solid diplomatic and moral support to the Kashmiris," it said.
On the water issue, the panel said the issues should be discussed holistically rather than focusing on particular projects. It called for highlighting issues related to the Indus Water Treaty in international forums.
On trade, the committee said Pakistan should focus more on reducing and controlling informal trade with India.
"This can be done through enhancing the capacity of the customs department and the border forces. Furthermore, by relaxing the process to acquire visa, informal trade can be controlled," it said.
India, Brunei To Boost Defence Ties, Sign 3 Agreements
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BANDAR SERI BEGAWAN, BRUNEI: India and Brunei today decided to boost defence ties by conducting joint military exercises as the two countries signed three agreements after Vice President Hamid Ansari held talks with the top leadership.
Mr Ansari, on the first high-level trip from India since the establishment of diplomatic ties with resource-rich Brunei, witnessed the signing of the agreements in the field of health, and youth and sports affairs, besides defence.
In the defence sector, the two countries agreed for bilateral cooperation through exchange of visits at different levels; exchange of experience, information, training and trainers; conduct of joint military exercises, seminars and discussions; and cooperation between the defence industries.
Cooperation in defence between India and Brunei already exists in the form of naval ship visits, training of senior military officers in staff colleges and exchange of experience.
The framework agreement seeks to institutionalise this cooperation.
The agreements were reached on the second day of Mr Ansari's visit at a ceremony also attended by Brunei's Culture, Youth and Sports Minister Awang Halbi, Health Minister Haji Zulkarnain and Deputy Minister of Defence Abdul Aziz.
The agreement on health aims to establish cooperation by means of pooling technical, scientific, financial, and human resources and to upgrade the healthcare, medical education, research between the two countries.
The areas identified for bilateral cooperation under the agreement are exchange of doctors, other professionals and experts; exchange of information on health; medical and health research development; regulations of pharmaceuticals, medical devices and cosmetics and to promote business development in these areas; and health promotion and disease prevention.
In the field of youth and sports affairs, the agreement provides a framework for exchanges of sports persons and sports teams; facilitate the exchange of expertise in coaching, sports talent identification, sports management and administration and exchange of information in the field of youth affairs.
Anil Wadhwa, Secretary (East), Ministry of External Affairs was the signatory on India's behalf in Brunei, the fourth largest producer of Liquefied Natural Gas (LNG) in the world.
BANDAR SERI BEGAWAN, BRUNEI: India and Brunei today decided to boost defence ties by conducting joint military exercises as the two countries signed three agreements after Vice President Hamid Ansari held talks with the top leadership.Mr Ansari, on the first high-level trip from India since the establishment of diplomatic ties with resource-rich Brunei, witnessed the signing of the agreements in the field of health, and youth and sports affairs, besides defence.
Cooperation in defence between India and Brunei already exists in the form of naval ship visits, training of senior military officers in staff colleges and exchange of experience.
The framework agreement seeks to institutionalise this cooperation.
The agreements were reached on the second day of Mr Ansari's visit at a ceremony also attended by Brunei's Culture, Youth and Sports Minister Awang Halbi, Health Minister Haji Zulkarnain and Deputy Minister of Defence Abdul Aziz.
The agreement on health aims to establish cooperation by means of pooling technical, scientific, financial, and human resources and to upgrade the healthcare, medical education, research between the two countries.
The areas identified for bilateral cooperation under the agreement are exchange of doctors, other professionals and experts; exchange of information on health; medical and health research development; regulations of pharmaceuticals, medical devices and cosmetics and to promote business development in these areas; and health promotion and disease prevention.
In the field of youth and sports affairs, the agreement provides a framework for exchanges of sports persons and sports teams; facilitate the exchange of expertise in coaching, sports talent identification, sports management and administration and exchange of information in the field of youth affairs.
Anil Wadhwa, Secretary (East), Ministry of External Affairs was the signatory on India's behalf in Brunei, the fourth largest producer of Liquefied Natural Gas (LNG) in the world.
Japan Extends Visa Validity For Indian Nationals To 10 Years
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TOKYO: Japan is set to relax visa norms for Indian nationals as multiple-entry visa terms are to be doubled for people from the country to 10 years, Foreign Minister Fumio Kishida said today.
The easing of visa rules, effective from February 15 and also for Vietnamese nationals, will initially benefit businesspeople, academics and artists from the two countries, Japanese Kyodo news agency reported.
The Japanese Foreign Ministry said that the move was part of the government's drive to increase the number of foreign tourists to the country, as well as people-to-people exchanges.
The 10-year validity of multiple-entry visas is the longest issued by the Japanese government, the ministry said.
"We hope that the relaxing of visa will increase repeat visits to Japan and enhance convenience in businesses," Mr Kishida said.
Holders of such multiple-entry visas will be restricted to visiting Japan for business and academic exchange purposes on their first visit but can enter Japan for tourism or to meet friends and families on subsequent trips, the ministry said.
Japanese Prime Minister Shinzo Abe announced the planned visa relaxation in his summit with Nguyen Phu Trong, general secretary of Vietnam's ruling Communist Party last September, and in his meeting with Prime Minister Narendra Modi last December.
In December, PM Modi had also announced that India will extend 'visa on arrival' to all Japanese citizens from March 1 this year.
TOKYO: Japan is set to relax visa norms for Indian nationals as multiple-entry visa terms are to be doubled for people from the country to 10 years, Foreign Minister Fumio Kishida said today.The easing of visa rules, effective from February 15 and also for Vietnamese nationals, will initially benefit businesspeople, academics and artists from the two countries, Japanese Kyodo news agency reported.
The 10-year validity of multiple-entry visas is the longest issued by the Japanese government, the ministry said.
"We hope that the relaxing of visa will increase repeat visits to Japan and enhance convenience in businesses," Mr Kishida said.
Holders of such multiple-entry visas will be restricted to visiting Japan for business and academic exchange purposes on their first visit but can enter Japan for tourism or to meet friends and families on subsequent trips, the ministry said.
Japanese Prime Minister Shinzo Abe announced the planned visa relaxation in his summit with Nguyen Phu Trong, general secretary of Vietnam's ruling Communist Party last September, and in his meeting with Prime Minister Narendra Modi last December.
In December, PM Modi had also announced that India will extend 'visa on arrival' to all Japanese citizens from March 1 this year.
Zika Virus: Centre Issues Guidelines; Warns Against Travel To Affected Areas
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NEW DELHI: A day after WHO declared emergency over the "explosive" spread of the mosquito-borne Zika virus, the Centre today issued detailed guidelines for combating the disease, including a travel advisory that asks pregnant women to either defer or cancel their travel to the affected areas.
The health ministry said that all international airports and ports will display signage with information on the disease. Travellers will be asked to report to customs if they are returning from affected countries and suffering from febrile illness, it added.
Zika virus, which is carried by mosquito and suspected to cause serious birth defects, has affected countries in the Americas.
In its guidelines, the ministry said that while the disease has not been reported in India, the mosquito which transmits Zika virus, namely Aedes aegypti, also transmits dengue virus, which is widely prevalent in the country.
Union Health Minister JP Nadda said he has asked for steps to be taken to prevent entry and transmission in India of the virus.
The health ministry said the overall situation would be monitored by a 'joint monitoring group' under Director General of Health Services (DGHS) while the Indian Council of Medical Research (ICMR) would identify the research priorities and take appropriate action.
Rapid Response Teams (RRTs) shall be activated at central and state surveillance units with each team comprising an epidemiologist or public health specialist, a microbiologist and a medical specialist, the ministry added.
The National Centre for Disease Control in Delhi would be the nodal agency for investigation of any outbreaks in India, it said.
"Non-essential travel to the affected countries to be deferred/cancelled. Pregnant women or women who are trying to become pregnant should defer/cancel their travel to the affected areas. All travellers to the affected countries/areas should strictly follow individual protective measures, especially during day time, to prevent mosquito bites.
"Persons with co-morbid conditions like diabetes, hypertension, etc. should seek advice from the nearest health facility, prior to travel to an affected country. Travellers having febrile illness within two weeks of return from an affected country should report to the nearest health facility," the guidelines said.
NEW DELHI: A day after WHO declared emergency over the "explosive" spread of the mosquito-borne Zika virus, the Centre today issued detailed guidelines for combating the disease, including a travel advisory that asks pregnant women to either defer or cancel their travel to the affected areas.The health ministry said that all international airports and ports will display signage with information on the disease. Travellers will be asked to report to customs if they are returning from affected countries and suffering from febrile illness, it added.
Zika virus, which is carried by mosquito and suspected to cause serious birth defects, has affected countries in the Americas.
Union Health Minister JP Nadda said he has asked for steps to be taken to prevent entry and transmission in India of the virus.
The health ministry said the overall situation would be monitored by a 'joint monitoring group' under Director General of Health Services (DGHS) while the Indian Council of Medical Research (ICMR) would identify the research priorities and take appropriate action.
Rapid Response Teams (RRTs) shall be activated at central and state surveillance units with each team comprising an epidemiologist or public health specialist, a microbiologist and a medical specialist, the ministry added.
The National Centre for Disease Control in Delhi would be the nodal agency for investigation of any outbreaks in India, it said.
"Non-essential travel to the affected countries to be deferred/cancelled. Pregnant women or women who are trying to become pregnant should defer/cancel their travel to the affected areas. All travellers to the affected countries/areas should strictly follow individual protective measures, especially during day time, to prevent mosquito bites.
"Persons with co-morbid conditions like diabetes, hypertension, etc. should seek advice from the nearest health facility, prior to travel to an affected country. Travellers having febrile illness within two weeks of return from an affected country should report to the nearest health facility," the guidelines said.
Business Affairs
What Raghuram Rajan conveyed to stock market via RBI monetary policy
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As widely expected, the sixth bi-monthly monetary policy statement of Reserve Bank of India (RBI) remained a non-event, yet a section of market which expected RBI governor Raghuram Rajan to take some measures to ease tight liquidity conditions felt disappointed as prospects of easy money policy doesn't seem likely anytime soon.
"The RBI has kept rates unchanged, as per our and consensus expectations. The stance remains accommodative. However, a part of the market which was expecting some measures to ease the current tight liquidity conditions was disappointed as there were no immediate relief measures for the same," said Mihir Vora, Director and Chief Investment Officer, Max Life Insurance.
Vora further added that RBI will look at the Union Budget in February for signs of continued fiscal consolidation before considering cutting interest rates and that Max Life Insurance do not expect further rate cuts before the end of financial year 2015-16."
While, the policy statement did not hold much for stock markets, below are six takeaways that directly or indirectly link to Dalal Street:
1) Global market scenario: The governor said that the global financial markets still remain vulnerable to volatility triggered by China and fall in commodity prices.
"December calm in global financial markets was dispelled in January 2016 by fears of further weakening of the Chinese economy and the depreciation of the Renminbi. Markets remain vulnerable to bouts of volatility and capital outflows from EMEs as an asset class. Bearish commodity price dynamics are also likely to impact investor sentiment," said Rajan in the policy statement.
2) Banking sector: The absence of negative news from the RBI policy helped banking stocks gain in the markets today. In a press conference post policy statement the governor said, "The RBI has not told banks what to do. We have actually discussed with them a range of (stressed) accounts. It's now in the banks' court to act on discussed accounts and move forward on them. I believe, over a period of time, banks' balance sheet will be fully provisioned. This process will create a basis for strong growth as banks will be focused more on new assets than legacy assets."
3) Manufacturing sector: Rajan acknowledged that stalled projects continue to remain high, and there is a decline in new investment intentions, perhaps on the back of low capacity utilization. But he was quick to add that the fall in costs, partly because of a decline in commodity prices, and partly because of improvements in manufacturing efficiency, have resulted in relatively stronger profitability. The Reserve Bank's industrial outlook survey suggests a modest expansion of activity likely in Q4.
4) Services: Lead indicators of the services sector are mixed. Construction activity is still tepid, as evidenced by weak growth in cement production, though the pick-up in road construction bodes well for future activity, especially if supported by construction in the major proposed industrial corridors. Railway freight growth is still weak, though it may reflect lower transport needs for inputs like coal, and competition from roadways.
5) Inflation: The RBI expects inflation to rule around 5 per cent by the end of fiscal 2016-17 under the assumption of a normal monsoon and the current level of international crude oil prices and exchange rates. He further noted that implementation of the seventh pay commission has not been factored into these projections and that he will again adjust forecast after the policy comes into being.
6) Revival of private investment: The governor though noted that the current momentum of growth is reasonable, but added it is below what should be expected over the medium term. He further said the private investment is one of the key growth drivers that need to be rekindled to place the economy durably on a higher growth trajectory.
"The Indian economy is currently being viewed as a beacon of stability because of the steady disinflation, a modest current account deficit and commitment to fiscal rectitude. This needs to be maintained so that the foundations of stable and sustainable growth are strengthened," said Rajan.
As widely expected, the sixth bi-monthly monetary policy statement of Reserve Bank of India (RBI) remained a non-event, yet a section of market which expected RBI governor Raghuram Rajan to take some measures to ease tight liquidity conditions felt disappointed as prospects of easy money policy doesn't seem likely anytime soon.
"The RBI has kept rates unchanged, as per our and consensus expectations. The stance remains accommodative. However, a part of the market which was expecting some measures to ease the current tight liquidity conditions was disappointed as there were no immediate relief measures for the same," said Mihir Vora, Director and Chief Investment Officer, Max Life Insurance.
Vora further added that RBI will look at the Union Budget in February for signs of continued fiscal consolidation before considering cutting interest rates and that Max Life Insurance do not expect further rate cuts before the end of financial year 2015-16."
While, the policy statement did not hold much for stock markets, below are six takeaways that directly or indirectly link to Dalal Street:
1) Global market scenario: The governor said that the global financial markets still remain vulnerable to volatility triggered by China and fall in commodity prices.
"December calm in global financial markets was dispelled in January 2016 by fears of further weakening of the Chinese economy and the depreciation of the Renminbi. Markets remain vulnerable to bouts of volatility and capital outflows from EMEs as an asset class. Bearish commodity price dynamics are also likely to impact investor sentiment," said Rajan in the policy statement.
2) Banking sector: The absence of negative news from the RBI policy helped banking stocks gain in the markets today. In a press conference post policy statement the governor said, "The RBI has not told banks what to do. We have actually discussed with them a range of (stressed) accounts. It's now in the banks' court to act on discussed accounts and move forward on them. I believe, over a period of time, banks' balance sheet will be fully provisioned. This process will create a basis for strong growth as banks will be focused more on new assets than legacy assets."
3) Manufacturing sector: Rajan acknowledged that stalled projects continue to remain high, and there is a decline in new investment intentions, perhaps on the back of low capacity utilization. But he was quick to add that the fall in costs, partly because of a decline in commodity prices, and partly because of improvements in manufacturing efficiency, have resulted in relatively stronger profitability. The Reserve Bank's industrial outlook survey suggests a modest expansion of activity likely in Q4.
4) Services: Lead indicators of the services sector are mixed. Construction activity is still tepid, as evidenced by weak growth in cement production, though the pick-up in road construction bodes well for future activity, especially if supported by construction in the major proposed industrial corridors. Railway freight growth is still weak, though it may reflect lower transport needs for inputs like coal, and competition from roadways.
5) Inflation: The RBI expects inflation to rule around 5 per cent by the end of fiscal 2016-17 under the assumption of a normal monsoon and the current level of international crude oil prices and exchange rates. He further noted that implementation of the seventh pay commission has not been factored into these projections and that he will again adjust forecast after the policy comes into being.
6) Revival of private investment: The governor though noted that the current momentum of growth is reasonable, but added it is below what should be expected over the medium term. He further said the private investment is one of the key growth drivers that need to be rekindled to place the economy durably on a higher growth trajectory.
"The Indian economy is currently being viewed as a beacon of stability because of the steady disinflation, a modest current account deficit and commitment to fiscal rectitude. This needs to be maintained so that the foundations of stable and sustainable growth are strengthened," said Rajan.
Sensex tanks 286 points, Nifty ends at 7,455 after RBI policy meet; Tata Steel top loser
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The S&P BSE Sensex shed 286 points to end below its crucial support level of 25,000 in trade on Tuesday, while broader CNX Nifty closes just a tad above its key 7,450-mark after Reserve Bank of India (RBI) monetary policy meeting.
The headline indices settled the day sharply lower after RBI governor Raghuram Rajan kept repurchase (repo) rate on hold at 6.75 per cent, as widely expected, opting to wait until after the government's annual budget statement at the end February to decide on whether to cut interest rates further.
The 30-share index ended at 24,539, down 285.83 points, while broad-based 50-share index quoted 7,455, down 100.40 points at close.
Market breadth turned sharply negative with 24 of the 30 Sensex components ending the day in red.
Tata Steel was the worst performing stock on Sensex and tumbled over 7 per cent.
Markets also took cues from mixed trend seen in Asian markets as crude oil prices continued their slide on rekindled oversupply fears and after downbeat manufacturing data from US and China raised concerns about global economic slowdown.
Among Asian markets, China's Shanghai Composite was trading 0.87 per cent higher, while Japan's Nikkei and Hong Kong's Hang Seng index shed 0.17 per cent and 0.45 per cent, respectively.
Overnight, US markets cut losses to stage a late-day rally backed by strong gains in shares of Facebook and Google with major indexes closing near the unchanged mark.
A lowdown on markets today
11:50 am
Sensex at 24,811, down 13.10 points
Nifty at 7,540, down 15.05 points
9:25 am
Sensex at 24,862, up 37.57 points
Nifty at 7,561, up 5.75 points
The S&P BSE Sensex shed 286 points to end below its crucial support level of 25,000 in trade on Tuesday, while broader CNX Nifty closes just a tad above its key 7,450-mark after Reserve Bank of India (RBI) monetary policy meeting.
The headline indices settled the day sharply lower after RBI governor Raghuram Rajan kept repurchase (repo) rate on hold at 6.75 per cent, as widely expected, opting to wait until after the government's annual budget statement at the end February to decide on whether to cut interest rates further.
The 30-share index ended at 24,539, down 285.83 points, while broad-based 50-share index quoted 7,455, down 100.40 points at close.
Market breadth turned sharply negative with 24 of the 30 Sensex components ending the day in red.
Tata Steel was the worst performing stock on Sensex and tumbled over 7 per cent.
Markets also took cues from mixed trend seen in Asian markets as crude oil prices continued their slide on rekindled oversupply fears and after downbeat manufacturing data from US and China raised concerns about global economic slowdown.
Among Asian markets, China's Shanghai Composite was trading 0.87 per cent higher, while Japan's Nikkei and Hong Kong's Hang Seng index shed 0.17 per cent and 0.45 per cent, respectively.
Overnight, US markets cut losses to stage a late-day rally backed by strong gains in shares of Facebook and Google with major indexes closing near the unchanged mark.
A lowdown on markets today
11:50 am
Sensex at 24,811, down 13.10 points
Nifty at 7,540, down 15.05 points
9:25 am
Sensex at 24,862, up 37.57 points
Nifty at 7,561, up 5.75 points
RBI keeps interest rates on hold; says Budget 2016 key to more easing
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RBI governor Raghuram Rajan kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.75 per cent in its sixth bi-monthly monetary policy statement of 2015-16.
The cash reserve ratio (CRR) of scheduled banks was also left unchanged at 4.0 per cent of net demand and time liability (NDTL).
The central bank will continue to provide liquidity under overnight repos at 0.25 per cent of bankwise NDTL at the LAF repo rate and liquidity under 14-day term repos as well as longer term repos of up to 0.75 per cent of NDTL of the banking system through auctions.
RBI will continue with daily variable rate repos and reverse repos to smooth liquidity.
Consequently, the reverse repo rate under the LAF now remains unchanged at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 7.75 per cent.
Having cut the policy repo rate by 125 basis points in 2015, RBI Governor Raghuram Rajan warned on Friday against straying from the path of fiscal consolidation or relaxing the fight against inflation.
Rajan, in his statement on Tuesday, said the central bank would stay "accommodative" but would look forward to the government's budget on February 29, saying it needed to be one that supports growth and controls spending.
How the government implements a planned 24 per cent pay hike in salaries and pensions for some 10 million current and former government employees will also be key in determining the path of inflation, he noted.
"The Reserve Bank continues to be accommodative even as it leaves the policy rate unchanged in this review, while awaiting further data on the development of inflation," Rajan said in his statement.
"Structural reforms in the forthcoming Union Budget that boost growth while controlling spending will create more space for monetary policy to support growth," added Rajan.
RBI governor Raghuram Rajan kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.75 per cent in its sixth bi-monthly monetary policy statement of 2015-16.
The cash reserve ratio (CRR) of scheduled banks was also left unchanged at 4.0 per cent of net demand and time liability (NDTL).
The central bank will continue to provide liquidity under overnight repos at 0.25 per cent of bankwise NDTL at the LAF repo rate and liquidity under 14-day term repos as well as longer term repos of up to 0.75 per cent of NDTL of the banking system through auctions.
RBI will continue with daily variable rate repos and reverse repos to smooth liquidity.
Consequently, the reverse repo rate under the LAF now remains unchanged at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 7.75 per cent.
Having cut the policy repo rate by 125 basis points in 2015, RBI Governor Raghuram Rajan warned on Friday against straying from the path of fiscal consolidation or relaxing the fight against inflation.
Rajan, in his statement on Tuesday, said the central bank would stay "accommodative" but would look forward to the government's budget on February 29, saying it needed to be one that supports growth and controls spending.
How the government implements a planned 24 per cent pay hike in salaries and pensions for some 10 million current and former government employees will also be key in determining the path of inflation, he noted.
"The Reserve Bank continues to be accommodative even as it leaves the policy rate unchanged in this review, while awaiting further data on the development of inflation," Rajan said in his statement.
"Structural reforms in the forthcoming Union Budget that boost growth while controlling spending will create more space for monetary policy to support growth," added Rajan.
India's farm sector imports on a rise: Key facts
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India's farm sector imports are on a rise pushed by two back to back droughts and untimely rainfall. Prime Minister Narendra Modi has been trying to revive rural India but agricultural imports are seeing an upward trend. Last week Modi held a late night meet with the farm officials to address the concerns.
Here are some key facts about the rising farm imports:
- For the first time in 16 years, India made purchases of corn last month. India exported 2.8 million tonnes in the fiscal year to March 2015 and now the government is likely to import 2 million tonnes of corn in 2015/16 and again in 2016/17. Domestic corn prices have shot up by about a quarter in the past six months.
- Oilmeals production is falling short. After exporting 4.5 million tonnes of oilmeals to countries such as Iran, Japan, Korea and Taiwan in 2014/15, traders have clinched deals for less than a million tonnes in April-December. Oilmeal exports are not expected to cross a million tonnes in 2016/17.
- Sugar stocks have been depleting on a fast pace. India might also be forced to buy sugar in the next season beginning October 1, 2016 due to lower output of sugarcane. The world's No.2 sugar producer last imported in 2009/10, buying 4 million tonnes.
- Lentils domestic produce is falling short of the demand. Imports of protein-rich lentils are expected at a record 5 million tonnes this fiscal year, with similar volumes expected next year.
- Wheat stocks in warehouses are depleting fast. The stocks are enough for now, but expectations of lower output this year after a poor crop in 2015 has meant a 25 per cent drawdown from state warehouses.
India's farm sector imports are on a rise pushed by two back to back droughts and untimely rainfall. Prime Minister Narendra Modi has been trying to revive rural India but agricultural imports are seeing an upward trend. Last week Modi held a late night meet with the farm officials to address the concerns.
Here are some key facts about the rising farm imports:
- For the first time in 16 years, India made purchases of corn last month. India exported 2.8 million tonnes in the fiscal year to March 2015 and now the government is likely to import 2 million tonnes of corn in 2015/16 and again in 2016/17. Domestic corn prices have shot up by about a quarter in the past six months.
- Oilmeals production is falling short. After exporting 4.5 million tonnes of oilmeals to countries such as Iran, Japan, Korea and Taiwan in 2014/15, traders have clinched deals for less than a million tonnes in April-December. Oilmeal exports are not expected to cross a million tonnes in 2016/17.
- Sugar stocks have been depleting on a fast pace. India might also be forced to buy sugar in the next season beginning October 1, 2016 due to lower output of sugarcane. The world's No.2 sugar producer last imported in 2009/10, buying 4 million tonnes.
- Lentils domestic produce is falling short of the demand. Imports of protein-rich lentils are expected at a record 5 million tonnes this fiscal year, with similar volumes expected next year.
- Wheat stocks in warehouses are depleting fast. The stocks are enough for now, but expectations of lower output this year after a poor crop in 2015 has meant a 25 per cent drawdown from state warehouses.
Total corporate funding in wind sector jumps a record $15.4 billion in 2015: Mercom Capital Group
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Total global corporate funding raised by public companies in the wind sector shot up to $15.4 billion, compared to $11.8 billion in 2014, according to a report by Mercom Capital Group. This includes venture capital/private equity (VC/PE), debt financing and public market financing. Global VC investments rose to $520 million in 14 deals in 2015, compared to $311 million in 15 deals in 2014. Wind downstream companies accounted for most of the VC funding with $505 million of the $520 million raised.
The top VC funded company in 2015 was ReNew Power Ventures, an independent power producer, which raised $265 million. Eren Renewable Energy, a renewable energy project developer, raised $114 million, followed by Apex Clean Energy, an independent renewable energy company, which secured $80 million in two separate deals, and UrbanWind, a wind project developer, raised $45 million.
Public market financing in the wind sector was down this year with $2.8 billion in 20 deals, compared to 16 deals for $3.7 billion in 2014. There were three IPOs in 2015, including two yieldcos, raising a total of $1.3 billion, the report added.
According to the consulting firm, the wind corporate M&A activity in 2015 accounted for 48 transactions of which only 30 were disclosed, compared to 28 transactions (12 disclosed) in 2014. Of the 48 M&A transactions, wind downstream companies accounted for 32 this year compared to 20 transactions in 2014. The top three M&A transactions this year involved wind downstream companies. The top M&A transaction in 2015 was the acquisition of Pacific Hydro by China's State Power Investment Corporation for $2 billion.
There were 154 wind project acquisitions in 2015 for nearly 30 giga watt (GW) compared to 154 transactions, for about 25 GW of wind projects, the report added. Investment funds once again led project acquisitions with 9 GW in 2015, followed by project developers with 8 GW, utilities with 7 GW and yieldcos with 5 GW of wind project acquisitions.
Total global corporate funding raised by public companies in the wind sector shot up to $15.4 billion, compared to $11.8 billion in 2014, according to a report by Mercom Capital Group. This includes venture capital/private equity (VC/PE), debt financing and public market financing. Global VC investments rose to $520 million in 14 deals in 2015, compared to $311 million in 15 deals in 2014. Wind downstream companies accounted for most of the VC funding with $505 million of the $520 million raised.
The top VC funded company in 2015 was ReNew Power Ventures, an independent power producer, which raised $265 million. Eren Renewable Energy, a renewable energy project developer, raised $114 million, followed by Apex Clean Energy, an independent renewable energy company, which secured $80 million in two separate deals, and UrbanWind, a wind project developer, raised $45 million.
Public market financing in the wind sector was down this year with $2.8 billion in 20 deals, compared to 16 deals for $3.7 billion in 2014. There were three IPOs in 2015, including two yieldcos, raising a total of $1.3 billion, the report added.
According to the consulting firm, the wind corporate M&A activity in 2015 accounted for 48 transactions of which only 30 were disclosed, compared to 28 transactions (12 disclosed) in 2014. Of the 48 M&A transactions, wind downstream companies accounted for 32 this year compared to 20 transactions in 2014. The top three M&A transactions this year involved wind downstream companies. The top M&A transaction in 2015 was the acquisition of Pacific Hydro by China's State Power Investment Corporation for $2 billion.
There were 154 wind project acquisitions in 2015 for nearly 30 giga watt (GW) compared to 154 transactions, for about 25 GW of wind projects, the report added. Investment funds once again led project acquisitions with 9 GW in 2015, followed by project developers with 8 GW, utilities with 7 GW and yieldcos with 5 GW of wind project acquisitions.
General Awareness
Archana Ramasundram becomes 1st woman DG of Sashastra Seema Bal
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Archana Ramasundram is appointed as the Director General (DG) of Sashastra Seema Bal (SSB) and now she became the first woman DG of Sashastra Seema Bal.The decision was issued by Department of Personnel and Training (DoPT).
About Archana Ramasundram
- She is 1980-batch IPS officer of Tamil Nadu Cadre.
- Currently Ramasundram is working as the director of National Crime Records Bureau (NCRB).
- She also works as the main organizer of an ongoing biometrics conference in Bhopal.
- Now she is appointed as DG in SSB.
About Sashastra Seema Bal
- Sashastra Seema Bal (SSB) is one of India’s Central Armed Police Forces.
- SSB is under the administrative control of the Ministry of Home Affairs (MHA), Government of India.
- It was formally known as Special Service Bureau.
- Motto of SSB is Service, Security and Brotherhood.
- The Sashastra Seema Bal was established on 20 December 1963.Headquarters of SSB is in New Delhi India.
- It is frequently referred to as aparamilitary force but it is not one of the three officially defined paramilitary forces of India. Three forces are Assam Rifles, Special Frontier Force and Indian Coast Guard.
- The primary task of the force was to provide armed support for theResearch and Analysis Wing (RAW)
Other Appointments
Name Department K Durga Prasad Director Generals of CRPF K K Sharma Director Generals of BSF M K Singla Special Secretary, Internal Security Home Ministry
Archana Ramasundram is appointed as the Director General (DG) of Sashastra Seema Bal (SSB) and now she became the first woman DG of Sashastra Seema Bal.The decision was issued by Department of Personnel and Training (DoPT).About Archana Ramasundram- She is 1980-batch IPS officer of Tamil Nadu Cadre.
- Currently Ramasundram is working as the director of National Crime Records Bureau (NCRB).
- She also works as the main organizer of an ongoing biometrics conference in Bhopal.
- Now she is appointed as DG in SSB.
About Sashastra Seema Bal- Sashastra Seema Bal (SSB) is one of India’s Central Armed Police Forces.
- SSB is under the administrative control of the Ministry of Home Affairs (MHA), Government of India.
- It was formally known as Special Service Bureau.
- Motto of SSB is Service, Security and Brotherhood.
- The Sashastra Seema Bal was established on 20 December 1963.Headquarters of SSB is in New Delhi India.
- It is frequently referred to as aparamilitary force but it is not one of the three officially defined paramilitary forces of India. Three forces are Assam Rifles, Special Frontier Force and Indian Coast Guard.
- The primary task of the force was to provide armed support for theResearch and Analysis Wing (RAW)
Other AppointmentsName Department K Durga Prasad Director Generals of CRPF K K Sharma Director Generals of BSF M K Singla Special Secretary, Internal Security Home Ministry
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