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CCI approves Five Oil,CCI approves Five Oil,CCI approves Five Oil,CCI approves Five Oil,CCI approves Five Oil,
Gas Blocks OperationsGas Blocks OperationsGas Blocks OperationsGas Blocks OperationsGas Blocks Operations
The Cabinet Committee on
Investment (CCI) on 21 March 2013cleared Reliance Industries (RIL)
KG-D6 and NEC-25 blocks for oil
and gas exploration along with threeother areas. The work on these
blocks, which has an investmentclose to 10.7 billion has dollars, was
having difficulties because of inter-
ministerial differences, particularlyrelating to Defence issues. Eight
blocks, including RILs KrishnaGodavari basin KG-D6 block and gas
discovery area of NEC-25 in the
North East Coast (NEC) region, weredeclared No-Go zones for reasons
relating to defence issues raised bythe Indian Navy, and the Indian Air
EconomyForce. An approval for eight blocks,
was Sought by the Petroleum andNatural Gas Ministry of which one
was al ready renounced by thecontractor, Reliance Industries Ltd.
Out of the remaining seven,
conditional clearance for fourblocks two of Reliance Industries,
one each of ONGC consortium and
Cairn India were sought. The
Ministry had also sought CCI
approval to declare three blocks asno go areas. Two blocks belonged
to the ONGC-led consortium andone to the Oil India Ltd-led
consortium. The CCI, headed by
Prime Minister Manmohan Singh,was set up to fast-track clearances
to infrastructure projects involvinginvestments of over 1000 crore
rupees.
AuthorizedAuthorizedAuthorizedAuthorizedAuthorized
Capital of NABARD RaisedCapital of NABARD RaisedCapital of NABARD RaisedCapital of NABARD RaisedCapital of NABARD Raised
The Union Cabinet of India
approved raise in the authorizedcapital of National Bank for
Agriculture and Rural Development,Nabard to 20000 crore rupees from
5000 crore rupees.
The authorized capital was
increased with the aim to enlarge
the operations and broadening theactivities of NABARD.
10 Rupees10 Rupees10 Rupees10 Rupees10 Rupees
Plastic Notes in 5 CitiesPlastic Notes in 5 CitiesPlastic Notes in 5 CitiesPlastic Notes in 5 CitiesPlastic Notes in 5 Cities
The Union Government and
RBI on 12 March 2013 decided tointroduce one billion pieces of 10
Rupees bank notes made of plastic
on a field trial basis in five. A 10
Rupees note in polymer/plastic ona field trial basis will be introducedfirst; Minister of State for Finance
Namo Narain Meena said it in a
written reply to the Rajya. The fieldtrail is supposed to be conducted
in five cities of Kochi, Mysore,Jaipur, Bhubhaneswar and Shimla
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with varied geographical locations
and climatic. As per the RBI, the
primary objective of introduction ofpolymer notes is to increase its life,
it could also help in combating
counterfeiting. Various agenciessuch as the RBI, Ministry of Finance,
Ministry of Home Affairs, Securityand Intelligence Agencies of the
Centre and States, Central Bureau ofInvestigation are already working in
tandem to thwart the illegal
activities related to Fake IndianCurrency Notes (FICN). The work of
these agencies is periodicallyreviewed by a nodal group set up
for this purpose.
RBI CutsRBI CutsRBI CutsRBI CutsRBI Cuts
Repo Rate by 25 Base PointsRepo Rate by 25 Base PointsRepo Rate by 25 Base PointsRepo Rate by 25 Base PointsRepo Rate by 25 Base Points
The Reserve Bank of India (RBI)
on 19 March 2013 cut the repo rate
by 25 basis points to 7.57.57.57.57.5 per centfrom 7.75 percent in its mid-quarter
review of the monetary policy. Thechange of the Repo rate is aimed to
prompt growth and revive
investment. Consequently, thereverse repo rate under the LAF
stands adjusted to 6.5per cent fromthe earlier 6.75 per cent and the
marginal standing facility (MSF) rate
and the Bank Rate to 8.5 per centwith immediate effect. The Cash
Reserve Ratio (CRR) has been
retained at 4 per cent. It is for the
second time since the start of the
year RBI has cut down the repo ratein a bid to help revive flagging
growth in Asias third-largesteconomy. RBI has also warned that
its scope for further policy easing is
limited. The RBI will continue to
actively manage liquidity through
various instruments, including open
market operations, so as to ensureadequate flow of credit to
productive sectors of the economy.
With the change in Repo rate, theReserve Bank of India also
announced infusion of 10000 crorerupees into the financial system by
purchasing government securities aspart of its liquidity injection
measure. The Indian economy
expanded at a 25-quarter low of4.5% in October-December 2012
quarter, and the 2.4% rise inindustrial production in January
2013 after two months of
contraction suggests the recovery is
still weak. The current accountdeficit hit a record-high 5.4 per centin the September quarter and is
expected to end the 2012/13 fiscal
year at its highest level ever.
What is Repo Rate?
The rate at which the RBI lends
money to commercial banks iscalled repo rate. It is an instrument
of monetary policy. Whenever bankshave any shortage of funds they canborrow from the RBI. A reduction
in the repo rate helps banks get
money at a cheaper rate and vice
versa.What is Reverse Repo rate?What is Reverse Repo rate?What is Reverse Repo rate?What is Reverse Repo rate?What is Reverse Repo rate?
Reverse Repo rate is the rate atwhich the RBI borrows money from
commercial banks. An increase inreverse repo rate can prompt banks
to park more funds with the RBI to
earn higher returns on idle cash. Itis also a tool which can be used by
the RBI to drain excess money outof the banking system.
What is cash Reserve Ratio?What is cash Reserve Ratio?What is cash Reserve Ratio?What is cash Reserve Ratio?What is cash Reserve Ratio?
Cash reserve Ratio (CRR) is theamount of funds that the banks have
to keep with the RBI. If the centralbank decides to increase the CRR,
the available amount with the banks
comes down. The RBI uses the CRRto drain out excessive money from
the system.
Highlights of the RBI QuarterlyHighlights of the RBI QuarterlyHighlights of the RBI QuarterlyHighlights of the RBI QuarterlyHighlights of the RBI Quarterly
Monetary Policy Review:Monetary Policy Review:Monetary Policy Review:Monetary Policy Review:Monetary Policy Review: Repo rate changed to 7.5
Percent from 7.75 Percent CRR Remain Unchanged at 4
Percent Reverse repo rate changed to
6.75 percent from earlier 6.5Percent
Marginal standing facili ty(MSF) rate 8.5 Percent
Bank Rate to 8.5 per cent
CCEA approvedCCEA approvedCCEA approvedCCEA approvedCCEA approved
Increase of MSP of CopraIncrease of MSP of CopraIncrease of MSP of CopraIncrease of MSP of CopraIncrease of MSP of Copra
The Cabinet Committee on
Economic Affairs approved
increase in the Minimum SupportPrice (MSP) for 2013 season of both
Milling and Ball Copra by 150 rupeesper quintal over the MSP that was
regulated in 2012. The MSP for the
Fair Average Quality (FAQ) ofMilling Copra is fixed at 5250 rupees
per quintal, and for the Ball Copra itis 5500 rupees per quintal. The
decision from government of India
may ignite the interests of thefarmers to invest in cultivation of
coconut to increase itsproductivity. Government also
cleared that National Agricultural
Cooperative Marketing Federationof India Ltd. (NAFED) is the body
that will act as the nodal agency for
undertaking the price supportoperation at the minimum support
prices in the coconut growingstates.
Exports ofExports ofExports ofExports ofExports of
India Increased By 0.8 Per CentIndia Increased By 0.8 Per CentIndia Increased By 0.8 Per CentIndia Increased By 0.8 Per CentIndia Increased By 0.8 Per Cent
The exports of India increased
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by 0.8 percent in the month of
January 2013 to 25.58 billion US
dollars. Comparatively, exports inJanuary 2012 were 25.37 billion US
dollars. Imports on the other hand,
increased by 6.12 percent to 45.5billion US dollars. During April to
January 2012-2013, the overseasshipments of India dropped by 4.86
percent to 239.6 billion US dollars.The main concern for the country is
however to widen the trade
deficit. As a cumulative result, theexports depicted an arrest in
decreasing exports. Now, the resultis -4.9 percent. Import of crude oil
was growing at a faster pace. Oil
imports in January 2013 increased
by 6.91 percent to 15.89 billion USdollars in comparison to 14.87billion US dollars in January 2012.
BHEL and GAIL GrantedBHEL and GAIL GrantedBHEL and GAIL GrantedBHEL and GAIL GrantedBHEL and GAIL Granted
Maharatna StatusMaharatna StatusMaharatna StatusMaharatna StatusMaharatna Status
The Union Government ofIndia gave the Maharatna status to
two PSUs- BHEL and GAIL on 1
February 2013. Granting Maharatnastatus to BHEL and GAIL will
provide them with better functionaland financial freedom and will also
guarantee them with better
valuation of the shares. Ideally anyMaharatna firm has a capacity to
take investment decision of around
5000 crore Rupees without taking
assistance from the government. On
the other hand, forms with Navratnastatus have the capability of 1000
crore Rupees. However, both BHELand GAIL do not have enough non-
official directors on the board,
which is why they cannot exercise
their Maharatna powers. Even
though all other conditions of
Maharatna status were met by boththese PSUs but their boards do not
have requisite number of board
members. While GAIL is short of 4independent directors, BHEL, on
the other hand is short of 6 non-official directors. In terms of
turnover, networth as well as netprofit, both these companies meet
all the eligibility criterions.
Eligibility of a Company to get aEligibility of a Company to get aEligibility of a Company to get aEligibility of a Company to get aEligibility of a Company to get a
Maharatna StatusMaharatna StatusMaharatna StatusMaharatna StatusMaharatna Status
For any company to qualify forMaharatna status, the annual
turnover should be over 25000
crore Rupees in past threeyears, as per the guidelinesissued by Department of
Public Enterprises. The net worth of the PSU
should be more than 15000crore Rupees in past three
years. The net profit should be over
5000 crore Rupees during pastthree years.
At present, there are seven
Maharatna companies, after
inclusion of BHEL and GAIL andthese companies are - ONGC, IndianOil, SAIL, NTPC and CIL. Also, there
are 14 Navratna companies,
including Rashtriya Ispat NigamLimited and NMDC.
Price Pooling Mechanism on CoalPrice Pooling Mechanism on CoalPrice Pooling Mechanism on CoalPrice Pooling Mechanism on CoalPrice Pooling Mechanism on Coal
The Cabinet Committee onEconomic Affairs (CCEA) gave its
principle approval for the pricepooling mechanism of coal. The
mechanism includes cost blending
of the domestic coal with the
imported one to counterbalanceprice hike. Basic principles andparameters of the price pooling
mechanism have been identified
and a specific data on the samewould be created by the Power and
Coal Ministries. The mechanism hasbeen created before government
decided to put on sale the 9.5
percent stake of the National
Thermal Power Corporation (NTPC)from its present holding of 84.50
percent. The sale of the stake was
approved by the EmpoweredGroup of Ministers on disinvestment
chaired by Finance Minister PChidambaram on 5 February 2013.
This disinvestment of NTPC wouldfetch about 12000 crore rupees for
the exchequer.
World Bank Estimated a growthWorld Bank Estimated a growthWorld Bank Estimated a growthWorld Bank Estimated a growthWorld Bank Estimated a growth
of over 6 Percentof over 6 Percentof over 6 Percentof over 6 Percentof over 6 Percent
The World Bank in the month
of March 2013 forecasted that the
Indian economy is estimated togrow over 6 per cent during 2013-
14. World Bank Chief Jim YoungKim, who is on a three-day visit to
India asserted that India is estimated
to have grown 5 percent in thecurrent fiscal and the growth rate is
likely to improve to 6.1-6.7 percentin 2013-14. The Indian economy, like
any other economy, is subject to
global slowdown. It has effect hereand at the same time, the export
market has started doing better. Onthe positive node, it also had be
seen that share of India in global
economy almost doubled in fiveyears between 2005 and 2010. Kim
is on his first visit to India after taking
over as President of World Bank
Group in July 2012.
Penalty on Rajasthan RoyalsPenalty on Rajasthan RoyalsPenalty on Rajasthan RoyalsPenalty on Rajasthan RoyalsPenalty on Rajasthan Royals
The Enforcement Directorate
(ED) slapped the IPL team Rajasthan
Royals with a penalty notice ofaround 100 crore Rupees for
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violating the Forex laws. ED issued
this penalty notice after investigating
the matter for 2 years under theForeign Exchange Management Act
(FEMA).
Three notices in all were sentacross to the IPL franchise whichtotaled to 98.5 crore Rupees. The
Jaipur IPL Cricket Private Limited(JIPL) as well as its directors was
sent a penalty notice of 50 croreRupees. Apart from this, 34 croreRupees penalty notice was issued
against EM Sporting Holding,Mauritius and its directors for
evading the Forex duties. A noticeof 14.5 crore Rupees was also issuedadditionally against the Ms ND
Investments, United Kingdom andits directors. All these three parties
are free to appeal against the penaltyorder in appellate authority of
FEMA. According to the order, IPL
team needs to make the payment in45 days. This is said to be the first
biggest order against any teamissued by the ED. According to the
penalty order, it was found that theforeign investment in JIPL wasconducted in flagrant contravention
of FEMA. The first penalty orderwas is sued by ED agai ns t the
Rajasthan Royals in mid-2011. Now,it issued the final orders after itmoved to FEMA Adjudicating
Author ity in De lh i in or der toexamine investigations in the case.
Coal India signed Fuel SupplyCoal India signed Fuel SupplyCoal India signed Fuel SupplyCoal India signed Fuel SupplyCoal India signed Fuel Supply
Pacts with 56 Power PlantsPacts with 56 Power PlantsPacts with 56 Power PlantsPacts with 56 Power PlantsPacts with 56 Power Plants
The Union government on 12March 2013 informed that state-
run Coal India Ltd. (CIL)Coal India Ltd. (CIL)Coal India Ltd. (CIL)Coal India Ltd. (CIL)Coal India Ltd. (CIL)signed fuelsupply pacts with 56 power plants
so far. Minister of state for coal,
Pratik Prakashbapu Patil in his
wr it ten repl y to Lok Sabhamentioned that, Coal India Ltd hassigned 56 fuel supply agreements
(FSAs) with the power plants as on
2 March 2013. It is important to notethat the deadline set by the PrimeMinisters Office (PMO) for signingof FSAs between CIL and power
producers expired in January 2013.Chief vigilance officer replying to a
question regarding CILs highlightedirregularities in awarding of FSAs.
CIL observed certain
inadequacies in the documents of11 cases, during verification of thedocuments in respect of milestone
achievement of LoAs (letter ofassurance). It was also affirmed by
the minister that appropriate action
would be taken in this regard byCILs subsidiaries to ensure that all
due procedures are observed.Minister of state for coal stated that
there is a proposal to engage anindependent third party samplingagency by CIL for consumers having
FSAs.
Indias Trade Deficit wasIndias Trade Deficit wasIndias Trade Deficit wasIndias Trade Deficit wasIndias Trade Deficit was
estimated at 167168.12 Millionestimated at 167168.12 Millionestimated at 167168.12 Millionestimated at 167168.12 Millionestimated at 167168.12 Million
US DollarsUS DollarsUS DollarsUS DollarsUS Dollars
As per the data released by
Union Ministry of Commerce and
Industry on 13 February 2013, Indias
performance in export and importare as following:
ExportsExports during January, 2013
were valued at 25587.24 million USdollars. (138981.70 crore rupees)
which was 0.82 per cent higher inDollar terms (6.67 per cent higher
in Rupee terms) than the level of
25379.05 million US dollars(130294.02 crore rupees) during
January 2012. Cumulative value ofexports for the period April-January
2012 -13 was 239687.01 million US
dollars (1305420.39 rupees) as
against 251930.14 million USdollars (1196962.33 crore rupees)registering a negative growth of
4.86 per cent in Dollar terms and
growth of 9.06 per cent in Rupeeterms over the same period 2011-
12 .
Imports
Imports during January, 2013were valued at 45583.25 million USdollars (247593.63 crore rupees)
representing a growth of 6.12 percent in Dollar terms and 12.28 per
cent in Rupee terms over the levelof imports valued at 42952.47million US Dollars ( 220514.54 crore
rupees) in January 2012. Cumulativevalue of imports for the period April-
January 2012-13 was 406855.13million US dollars (2215115.46 crorerupees) as against 406820.28 million
US dollars (1934946.96 crorerupees) registering a positive growth
of 0.01 per cent in Dollar terms andgrowth of 14.48 per cent in Rupeeterms over the same period 2011-
12.
Crude Oil andCrude Oil andCrude Oil andCrude Oil andCrude Oil and
Non-oi l ImportsNon-oi l ImportsNon-oi l ImportsNon-oi l ImportsNon-oi l Imports
Oil imports during January,2013 were valued at 15899.3 million
US dollars which was 6.91 per cent
higher than oil imports valued at14871.2 million US Dollars in the
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corresponding period last year. Oil
imports during April-January, 2012-
13 were valued at 140420.1 millionUS dollars which was 11.56 per cent
higher than the oil imports of
125874.2 million US dollars in thecorresponding period last year.
Non-oil imports during January 2013were estimated at 29684.0 million
US dollars which was 5.71 per centhigher than non-oil imports of US
28081.3 million in January 2012.
Non-oil imports during April January 2012-13 were valued at
266435.0 million US dollars whichwas 5.17 per cent lower than the
level of such imports valued at
280946.1 million US dollars in April
- January 2011-12.
Trade Finance
The trade deficit for April -
January 2012-13 was estimated at167168.12 million US dollars which
was hi gher than the de fi ci t of154890.14 million US dollars during
April -January 2011-12.
Economic Growth of IndiaEconomic Growth of IndiaEconomic Growth of IndiaEconomic Growth of IndiaEconomic Growth of India
Estimated to Fall To 5 Percent inEstimated to Fall To 5 Percent inEstimated to Fall To 5 Percent inEstimated to Fall To 5 Percent inEstimated to Fall To 5 Percent in
2012-2013 FY2012-2013 FY2012-2013 FY2012-2013 FY2012-2013 FY
The Central Statistics Office
(CSO) on 7 February 2013 revealed
that the economic growth of Indiais estimated to fall to 5 percent in
2012-2013 financial year, which is a
lowest figure in 10 years. A fall inthe economic growth is because of
the poor performance of theservices, agriculture and
manufacturing sectors. The Central
Statistics Office (CSO) in its advanceforecast of the national income
chopped off the gross domesticproduct (GDP) growth estimate to
5 percent for financial year whichwill end on 31 March 2013. This ismuch less than the GDP of 6.2
percent in 2011-2012 financial year.This is said to be the worst
performance of economy of India
since 2002-2003 when the economicgrowth was 4 percent. The major
share of Indias GDP comes from the
services sector. The services sector
is estimated to record a growth of5.2 percent in 2012-2013 fiscal year
against 7 percent of 2011-2012 fiscal
year.As far as the industry sector is
concerned, it is expected that the
growth would decrease to 1.9percent in 2012-2013 FY. The farmsector growth will fall down to 1.8
percent. It is important to note thatthe official projection of the
economic growth of India is muchlower than budgetary estimate as
well as projections of the central
bank of India and otherorganisations. In the union budget
for financial year 2012-2013 whichwas presented in March 2012, thegovernment pegged Indias
economic growth at 7.6 percent.Also in the quarterly monetary
policy review which took place inthe first week of February 2013, theReserve Bank of India projected the
growth of 5.5 percent for 2012-2013financial year. In the meanwhile,
Finance Minister P. Chidambaramhad projected the economic growthof 5.7 percent. In first half of 2012-
2013 FY, the economy of India grewby 5.4 percent. However, as per the
latest estimate, the growth would bearound 4.6 percent in second halfof 2012-2013. Industry bodies in
the meanwhile asked thegovernment to press for the reform
process in order to revive theeconomic growth.
Memu Coaches ManufacturingMemu Coaches ManufacturingMemu Coaches ManufacturingMemu Coaches ManufacturingMemu Coaches Manufacturing
Facility at BhilwaraFacility at BhilwaraFacility at BhilwaraFacility at BhilwaraFacility at Bhilwara
Memorandum of
Understanding (MoU) was signed
on 25 February 2013 between IndianRailways and Bharat HeavyElectricals Ltd (BHEL) for setting up
of Greenfield MEMU coaches
manufacturing facility by BHEL atBhilwara in Rajasthan. Main Line
Electric Multiple Unit Trains,popularly known as MEMU trains
were first introduced in Indian
Railways in the Year 1994-95, as a
mode of rapid transit system, tocater to non-suburban passengers,
residing in small towns and villages
surrounding urban and industrialcentres.
MEMU trains have higher
passenger carrying capacity andhigher average speed as comparedto conventional loco hauledpassenger trains due to faster
acceleration and brakingcharacteristics. These rakes are now
being manufactured with toiletfacilities to take care of passengerneeds. MEMU trains increase the
line capacity utilisation, andtherefore are more suitable for
running on high traffic densityroutes.
These MEMU trains have
gained rapid popularity over theyears. Currently, there are about 160
MEMU services running. There aredemands coming from all over thecountry for running more and more
MEMU trains. The demand for thesecoaches will further increase as
Indian Railways have plans toElectrify approximately 15000 routekilometre during the next 10 years,
in addition to the existing 22000route kilometre of electrified track.
There was a shortfall in acquisition
of 800 MEMU coaches during XIthPlan Period due to capacity
constraints at Rail Coach Factory,Kapurthala, where these MEMU
coaches are produced. Overall it isexpected that the requirement ofMEMU coaches will grow to nearly
9000 coaches during the next 10
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year period. Setting up of factory for
conventional MEMU coaches will goa long way in meeting this demand.
Bharat Heavy ElectricalsLimited (BHEL) is a Maharatna
Central Public Sector Unit (CPSU)company, which is a partner of
Indian Railways for a period
spanning more than 40 years. It hasbeen manufacturing and supplying
electric rolling stock includingEMUs and MEMUs; as well as sub-
assembly and equipment for rolling
stock being manufactured at IRsown production units. The
proposed facility for production ofMEMU coaches will be set up by
Bharat Heavy Electricals Limited
(BHEL) at Bhilwara in the State ofRajasthan. The entire cost will be
borne by BHEL. Government ofRajasthan will provide land to
Railways, for setting up the project.
In order to make the project viable,Ministry of Railways will give
Assured Off- Take orders to BHEL.
Railway Revenue EarningsRailway Revenue EarningsRailway Revenue EarningsRailway Revenue EarningsRailway Revenue Earnings
Increased by 20.38 Per CentIncreased by 20.38 Per CentIncreased by 20.38 Per CentIncreased by 20.38 Per CentIncreased by 20.38 Per Cent
The total approximate earnings
of Indian Railways on originating
basis during 1 April 2012 to 31January 2013 were 101223.95 crore
rupees compared to 84083.74 crorerupees during the same period last
year, registering an increase of 20.38
per cent, as per the data releasedby Ministry of Railways.
The total goods earnings havegone up from 56163.30 crore
rupees during 1 April 2011 31st January 2012 to 70067.36
crore rupees during 1 April2012 31 January 2013,
registering an increase of24.76 per cent.
The total passenger revenue
earnings during 1 April 2012 31 January 2013 were
25924.29 crore rupeescompared to 23344.42 crore
rupees during the same periodlast year, registering an
increase of 11.05 per cent. The revenue earnings from
other coaching amounted to2617.19 crore rupees during
Apri l 2012 - January 2013compared to 2353.54 crore
rupees during the same periodlast year, an increase of 11.20
per cent. The total approximate
numbers of passengers
booked during 1st April 2012 31st January 2013 were7150.60 million compared to
6910.00 million during thesame period last year,
showing an increase of 3.48per cent. In the suburban and
non-suburban sectors, thenumbers of passengers
booked during April 2012 -January 2013 were 3753.32
million and 3397.28 millioncompared to 3651.70 million
and 3258.30 million during thesame period last year,
showing an increase of 2.78per cent 3.48 per cent
respectively.
Indian Financial RegulatorsIndian Financial RegulatorsIndian Financial RegulatorsIndian Financial RegulatorsIndian Financial Regulators
signed pact to Monitorsigned pact to Monitorsigned pact to Monitorsigned pact to Monitorsigned pact to Monitor
ConglomeratesConglomeratesConglomeratesConglomeratesConglomerates
The countrys top four financial
regulators on 8 March 2013 signedan agreement among each other forco-operation on consolidated
supervision and monitoring of
financial groups identified asfinancial conglomerates- large banksand other key players. Thedecisivenesses were taken at a sub-
committee meeting of the FinancialStability and Development Council
(FSDC) held in the Reserve Bank.The regulators who signed the pact
were the Reserve Bank of India
(RBI), Securities and ExchangeBoard of India (SEBI), InsuranceRegulatory and Development
Au thor ity and Pens ion Fund
Regulatory and DevelopmentAuthor ity. The FSDC (FinancialStability and Development Council)meeting, chaired by RBI Governor
D Subbarao also approvedformulating a national strategy for
financial education by incorporatingthe feedback received from publicconsultations and from a global peer
review, RBI said without providingdetails. RBI had on 22 February 2013
released rules on allowingcompanies to start banks in India
and such coordination amongregulators is needed for effectivesupervision.
Inflation goes Down to ThreeInflation goes Down to ThreeInflation goes Down to ThreeInflation goes Down to ThreeInflation goes Down to Three
Years LowYears LowYears LowYears LowYears Low
The inflation rate of Indiadropped down to the three year lowin the chart to 6.62 percent in
January 2013 from the 7.18 percent,measured in December 2012. The
inflation was measured based uponmonthly Wholesale Price Index.The official Wholesale Price Index
for All Commodities (Base: 2004-05= 100) in January, 2013 rose by 0.4
percent to 169.2 (Provisional) from168.6 (Provisional) for the previousmonth. Slowing exports and decline
in investments and low demand inthe domestic market have been a
major factor in slipping down thegrowth rate of India. The two factorshave affected the manufatruing as
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well as service sectors of India. The
growth forecast for the runningfiscal year that would end on 31March 2013 was lowered by the
Indias Statistical Office to 5 percent.
The Reserve Bank of India alsochanged its forecast from 5.8percent to 5.5 percent. To revive afresh air in the slowing down
economic conditions of India, theReserve Bank took a major step of
lowering the key interest rate from8 percent to 7.75 percent; this wasthe first step in nine months. The
Policy makers have also taken afreshsteps to revive the slowing
economic conditions of the nation.
Teledensity declined by 25.97Teledensity declined by 25.97Teledensity declined by 25.97Teledensity declined by 25.97Teledensity declined by 25.97
MillionMillionMillionMillionMillion
As ce llphone operator scontinued disconnecting inactive
SIM cards, Indias total telecomsubscriber base declined by 25.97
million to 895.51 million in
December. In November, the
country had 921.47 million telecom
subscribers. Telecom Regulatory
Authority of India(TRAI) stated thattotal wireless subscriber base
decreased from 890.60 million in
November 2012 to 864.72 million atthe end of December 2012. TRAI
reasoned that this decline is majorlydue to large scale disconnections of
inactive SIMs by some of the serviceproviders. With this, the overall
teledensity in India decreased to
73.34 per cent at the end ofDecember, 2012 from 75.55 per cent
in the previous month.
Export of Additional 5 MillionExport of Additional 5 MillionExport of Additional 5 MillionExport of Additional 5 MillionExport of Additional 5 Million
Tonnes of Wheat approvedTonnes of Wheat approvedTonnes of Wheat approvedTonnes of Wheat approvedTonnes of Wheat approved
The Union Government ofIndia on 7 March 2013 approved
export of extra five million tonnes
of Wheat from its Godowns. Thegroup of ministers in its meeting also
decided that the added quantity of5 million tonnes of wheat shall be
exported by the private traders. It
also cleared that the public sector
trading firms will not be aparticipant in export of the
additional quantity of wheat.
The GoM (Group of Ministers)have also decided that bidding
process would be used by the
Private traders to export the 2011-12 crop and the floor price decided
for per quintal is 1480 rupees. Forthe present fiscal, the permitted
export of wheat from the godowns
of the Food Corporation of Indianow stands at 9.5 million tonnes.
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