Arun Jaitley takes charge as FM after a three-month break due to surgery

A little more than three months after Arun Jaitley underwent a successful kidney transplant surgery, he took back charge of Finance and Corporate Affairs Ministry at 11 am on Thursday. Piyush Goyal, who was the caretaker Finance Minister in Jaitley’s absence, will continue as Railways and Coal Minister.

“The President of India, as advised by the Prime Minister, has directed to assign the portfolios of the Minister of Finance and Minister of Corporate Affairs to Arun Jaitley,” an official statement said.

Jaitley underwent surgery at the All India Institute of Medical Sciences (AIIMS) on May 14. He had been keeping unwell since early April due to kidney-related problems and chest infection. The initial assessment by the doctors post-surgery was that he would take at least eight weeks to recover.

The Finance Minister was discharged on June 4 and underwent post-operative recovery at his official residence under the most strict of conditions imposed by the doctors. He wasn’t meeting anyone but close family members and doctors.

Shatrughan joins Yashwant Sinha's farmer protests in MP, questions Modicare

Joining fellow disgruntled BJP leader Yashwant Sinha in a protest over farmers' issues, MP Shatrughan Sinha today questioned viability of the health insurance scheme announced in the Union Budget.

The actor-turned-politician today reached Narsinghpur in Madhya Pradesh, where former finance minister Yashwant Sinha has launched a sit-in protest for farmers whose lands would be acquired for a thermal power plant.

The National Health Protection Scheme announced by finance minister Arun Jaitley would require Rs 1.25 trillion for premium payment, which is more than the allocation for health sector in the budgets of the Centre and the states put together, Shatrughan Sinha said.

Stressed power projects: FM Arun Jaitley holds review meeting with lenders

Finance Minister Arun Jaitley on Saturday held a review meeting with lenders and senior officials on the financial stress faced by some of the power projects, including that of Tata Power and Adani Group in Gujarat.
The high-level meeting was also attended by Principal Secretary to the Prime Minister Nripendra Misra, senior officials of power ministry, SBI chairman Rajnish Kumar, among others, sources said.
It is to be noted that Tata Power last year offered to sell 51 per cent stake in its 4,000 MW Mundra power project for Re 1 to states like Gujarat, which gets electricity from it, to tide over the financial crisis facing this business.

Besides, there were allegations that Adani Group charging exorbitant electricity tariff in Gujarat.
However, the company refuted the charges saying it sold power to the state at a "very attractive" price of Rs 2.65 per unit over the last four years.
Coastal Gujarat Power Ltd (CGPL), the Tata Power unit which operates the Mundra project, wrote to Gujarat Urja Vikas Nigam Ltd offering to retain only 49 per cent stake and operate the project as a contractor provided the procurers buy all the power at higher tariffs.
In the letter, copies of which were marked to the principal secretary to the Prime Minister and Union power secretary, CGPL CEO Krishna Kumar Sharma said Mundra has accumulated losses of Rs 64.57 billion against a paid-up equity of Rs 60.83 billion.
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News digest: Bank branch additions, Sebi on MCX insider trading, and more

Branch additions drop as Modi govt's digital push changes banking sector

The government’s digital push, the rising use of technology in back-end processes, and the growing market for financial technology products have changed the banking landscape.

The Reserve Bank of India’s (RBI’s) May 2017 guidelines shifted the focus from branches to banking outlets, which include banking correspondents along with branches. The revised guidelines work well with the banking sector’s tilt towards partnerships.

After 'hiatus', Arun Jaitley sees green shoots of economic recovery

Finance Minister Arun Jaitley said on Saturday that structural changes brought in by measures such as the introduction of the goods and services tax (GST) had created a “hiatus” in the economy. But the economy was already showing signs of revival, he added. The FM also sent out a strong message to the banks asking them to perform after the Union government pumps in money to recapitalise them. “Resilience of the banking system is under test,’’ he said.
Sebi revokes penal order against 7 in MCX insider trading case

The Securities and Exchange Board of India (Sebi) has revoked its last year’s interim order against seven individuals in an insider trading case pertaining to share trading of the Multi Commodity Exchange of India (MCX).

The markets regulator found no violation of insider trading guidelines by the “seven notices”. A few of them were also denied cross-examination opportunities, it observed.
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News digest: GST revenue collection, green number plate on e-cars, and more

Taxman plans to match GST invoices to plug revenue leakage

The GST Council may move the sales and purchase invoice matching system to the back end. It will do so to keep tabs on missing transactions and check over-claim of input tax credits in the goods and services tax (GST). Read more

Ola, Uber focus on tie-ups with mass transit firms to tap new users in 2018

After witnessing slowing growth over the past 18 months, India’s ride-hailing bigwigs are partnering mass transit companies. Both Ola and Uber have been tying up with mass transit companies, setting up easy-booking kiosks at metro stations and airports to grow user base. Read more

Modi's aim to contain fiscal deficit: Two options exist, both are painful

Prime Minister Narendra Modi wanted minimum slippage from the fiscal deficit target of 3.2 per cent of gross domestic product (GDP) for 2017-18, sources said. Read more

Electric cars may soon sport green number plates

Indian roads may see a new colour on the number plates of cars — a green one, with the NITI Aayog planning such a move for electric vehicles. Read more
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News digest: Tweaks in IBC code, clouds over Rafale deal, and more

Tweaks in IBC code to block wilful defaulters

Wilful defaulters, dubious promoters as well as those involved in fraudulent transactions would not be able to bid for companies going insolvent, with the Centre deciding to amend the Insolvency and Bankruptcy Code.

The Cabinet approved an ordinance on Wednesday. The amendments would come in force with immediate effect (after the President promulgates it), Finance and Corporate Affairs Minister Arun Jaitley said after the meeting.

Jio & Airtel to use customer bank to challenge Paytm

Reliance Jio and Bharti Airtel are set to declare war on Paytm — king of mobile wallet business that launched its payments bank in May. The telcos are leveraging their mobile customer base and distribution network in trying to compete with Paytm.  Jio is already signing up a large number of merchants on its soon-to-be-launched payments bank.

Task force to draft new direct tax law

The government has brought back the main author of the now junked Direct Taxes Code (DTC) as a convenor of the task force to review the decades-old provisions of the Income-Tax Act and draft a replacement. The government has, however, already implemented many provisions of the draft DTC, such as the General Anti-Avoidance Rules (GAAR) and on Place of Effective Management.
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News digest: M&M-Ford pact, PM to review economic situation today, and more

M&M partners Ford in drive for e-cars

Homegrown utility vehicle major Mahindra & Mahindra (M&M) and Ford have decided to collaborate again, after a 1995 tie-up to facilitate the American carmaker’s entry into India ended in 2005. This time, the firms would explore joint development of products, especially electric and connected vehicles. The partnership will look to expand Ford’s reach in the fast-growing Indian market and improve M&M’s access to global markets. At present, both have a single-digit share in a market dominated by Maruti Suzuki and Hyundai Motor.
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GST Council may finalise e-way rules today

The Goods and Services Tax (GST) Council is likely to lower tax rate on Saturday on job works making fabric to garments to 5 per cent and put in place a mechanism for online registration of goods above a certain value before they can be transported. The Council, headed by Finance Minister Arun Jaitley, will also review at its meeting the implementation of the GST regime since July 1 and may finalise a mechanism to operationalise anti-profiteering provision to protect consumer interest.

Central Board of Excise and Customs (CBEC) Chairperson Vanaja Sarna said the movement of goods between states has smoothened with 25 out of 29 states abolishing check posts.

"About 25 states have removed those check posts. So far, it has been going all right," she told PTI.

This would further smoothen after e-way bill in GST that requires any goods more than Rs 50,000 in value to be pre- registered online before it can be moved is implemented.

"As the e-way bill process for the whole of India gets panned out, we should be able to do something which will be better," Sarna said.
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Sebi evolving according to the economy's needs: Arun Jaitley

Latest News - Finance Minister Arun Jaitley on Saturday credited the Securities and Exchange Board of India (Sebi) for being a professional organisation which has been evolving as per the needs of the economy and the markets.

Jaitley's comments on the evolution of the Sebi's role came after he addressed its board at a post-Budget meet.

"Sebi is a professional organisation with considerable experience," Jaitley said adding that it has been evolving according to the needs of the economy and the markets.

According to the minister, during the meet, discussions on various issues relating to the securities markets were held.

The meeting was attended by (Read More)

Rail stocks slide 4% ahead of Rail Budget

Latest News - Shares of most of the railway sector related companies declined as much as four per cent ahead of presentation of the first Rail Budget subsumed in the General Budget tomorrow.

Titagarh Wagons settled 4.06 per cent down at Rs 115.90 on BSE today, while Kalindee Rail Nirman (Engineers) ended 3.27 per cent down at Rs 113.95 from the previous close.

Texmaco Rail & Engineering lost 3.22 per cent and closed at Rs 106.65. Stone India went down by 2.94 per cent to settle at Rs 69.30.

Kernex Microsystems tumbled 3.27 per cent and was (Read More)

Budget 2017: After Health Minister's warning, health budget likely to be up

Latest News - India's health ministry is likely to see a substantial increase in funding, after it warned that its programmes were short of cash and sought more than $1.2 billion in additional money, according to government officials and documents seen by Reuters.

The final numbers could change when Finance Minister Arun Jaitley presents the budget for fiscal 2017-18 on Wednesday. But one official familiar with the numbers said the health ministry is expected to get a $1.5 billion, or 27 per cent, increase in funding to around $7 billion.

The health and finance ministries did not respond to requests for comment.

An increase in the (Read More)

Demonetisation was a 'hoax', it won't kill black money: Chidambaram

Latest News - Dubbing the government's claim that demonetisation would weed out black money and corruption as "hoax", former union finance minister P Chidambaram has said that such issues are likely to persist since the November 8 decision was not "notebandi", rather it was a "notebadli."

"Demonetisation will not kill black money and corruption. Earlier, they asked and took bribes in old notes. Now they will take in new notes. The change of notes will not make any difference to these things. It is a complete hoax to say that demonetisation will kill corruption," Chidambaram said while delivering a lecture on demonetisation at Srimanta Sankardev Research Centre in Guwahati.

Throwing a challenge to Prime Minister Narendra Modi, the Congress leader said, "Let me throw a simple challenge to the government, please guarantee to me that next time I go to a Tehsildar he will not ask bribe from me. Let the Prime Minister give the guarantee to (Read More)

Budget 2017: Centre may scrap Rs 4,500-cr PDS sugar subsidy

Latest News - Finance Minister Arun Jaitley might not offer Rs 18.50 per kg subsidy for purchase of sugar to states for selling at a subsidised rate via ration shops in his February 1 Budget and save about Rs 4,500 crore.

The Centre's contention is that there is no demarcation for BPL families in the new Food Law and there are apprehensions that state governments may divert subsidised sugar, which explains the current line of thinking, sources said.

At present, the scheme has a target of 40 crore beneficiaries of BPL (below poverty line) families. About 2.7 million tonnes of sugar per annum are required for PDS sale.

According to the existing scheme, states purchase sugar to be supplied through the public distribution system (PDS), popularly known as ration shops, from the open market at wholesale rates and sell at a subsidised rate of (Read More)

Revenue body asks FM not to implement GST in hurry; threatens legal action

Latest News - Claiming that demonetisation has affected country's growth, a major central revenue body has asked Finance Minister Arun Jaitley not to implement Goods and Services Tax (GST) in a hurry and threatened to take legal recourse in case their concerns are not addressed.

It termed as "illegal" certain decisions taken by Jaitley-headed GST Council and demanded a correction. It also sought that the officer's body be consulted before any final decision is taken.

The council in its meeting on January 16, had agreed to give states the powers to levy tax on economic activity within 12 nautical miles of territorial waters.

Also, it was decided that the states will have powers to assess and administer 90 per cent of the (Read More)

GST now set for July 1 roll-out, dual control hurdle finally over

Latest News - The Goods and Services Tax (GST) Council on Monday broke a deadlock over issues of administrative control over assessees and broadly agreed to roll out the GST from July 1, instead of the earlier deadline of April 1. 

Whether a state or the Centre will assess an entity would be decided by a computer programme. The Council also resolved a logjam over the right to tax economic activities within 12 nautical miles from India’s coasts.

Against the earlier proposals of reserving administration of assessees up to Rs 1.5 crore in annual turnover for states, or of allowing both the Centre and states to jointly administer these, the Council decided to blend the two suggestions. The entire tax base would be shared between the (Read More)

Budget 2017 wishlist: Five expectations from infrastructure sector

Latest News - The Union Budget 2017 is expected to give an impetus to infrastructure sector in order to boost industrial growth amid global slowdown and lower corporate spending at home. 

A Business Standard report said Finance Minister Arun Jaitley might announce a third straight year of record capital spending, which could be 12-14% higher than the 2016-17 Budget Estimates of Rs 2.47 lakh crore. That would put(Read More)