Day: September 21, 2012

Mail News Service
New Delhi, Sep 21 : Prime Minister, Dr Manmohand Singh addressed the nation today at 8 pm. He said, “My dear brothers and sisters,

I am speaking to you tonight to explain the reasons for some important economic policy decisions the government has recently taken. Some political parties have opposed them. You have a right to know the truth about why we have taken these decisions.

No government likes to impose burdens on the common man. Our Government has been voted to office twice to protect the interests of the aam admi.

At the same time, it is the responsibility of the government to defend the national interest, and protect the long term future of our people. This means that we must ensure that the economy grows rapidly, and that this generates enough productive jobs for the youth of our country. Rapid growth is also necessary to raise the revenues we need to finance our programmes in education, health care, housing and rural employment.

The challenge is that we have to do this at a time when the world economy is experiencing great difficulty. The United States and Europe are struggling to deal with an economic slowdown and financial crisis. Even China is slowing down.

We too have been affected, though I believe we have been able to limit the effect of the global crisis.

We are at a point where we can reverse the slowdown in our growth. We need a revival in investor confidence domestically and globally. The decisions we have taken recently are necessary for this purpose.

Let me begin with the rise in diesel prices and the cap on LPG cylinders.

We import almost 80% of our oil, and oil prices in the world market have increased sharply in the past four years. We did not pass on most of this price rise to you, so that we could protect you from hardship to the maximum extent possible.

As a result, the subsidy on petroleum products has grown enormously. It was Rs. 1 lakh 40 thousand crores last year. If we had not acted, it would have been over Rs. 200,000 crores this year.

Where would the money for this have come from? Money does not grow on trees. If we had not acted, it would have meant a higher fiscal deficit, that is, an unsustainable increase in government expenditure vis-a-vis government income. If unchecked, this would lead to a further steep rise in prices and a loss of confidence in our economy. The prices of essential commodities would rise faster. Both domestic as well as foreign investors would be reluctant to invest in our economy. Interest rates would rise. Our companies would not be able to borrow abroad. Unemployment would increase.

The last time we faced this problem was in 1991. Nobody was willing to lend us even small amounts of money then. We came out of that crisis by taking strong, resolute steps. You can see the positive results of those steps. We are not in that situation today, but we must act before people lose confidence in our economy.

I know what happened in 1991 and I would be failing in my duty as Prime Minister of this great country if I did not take strong preventive action.

The world is not kind to those who do not tackle their own problems. Many European countries are in this position today. They cannot pay their bills and are looking to others for help. They are having to cut wages or pensions to satisfy potential lenders.

I am determined to see that India will not be pushed into that situation. But I can succeed only if I can persuade you to understand why we had to act.

We raised the price of diesel by just Rs. 5 per litre instead of the Rs 17 that was needed to cut all losses on diesel. Much of diesel is used by big cars and SUVs owned by the rich and by factories and businesses. Should government run large fiscal deficits to subsidise them?

We reduced taxes on petrol by Rs. 5 per litre to prevent a rise in petrol prices. We did this so that the crores of middle class people who drive scooters and motorcycles are not hit further.

On LPG, we put a cap of 6 subsidised cylinders per year. Almost half of our people, who need our help the most, actually use only 6 cylinders or less. We have ensured they are not affected. Others will still get 6 subsidised cylinders, but they must pay a higher price for more.

We did not touch the price of kerosene which is consumed by the poor.

My Dear Brothers and Sisters,

You should know that even after the price increase, the prices of diesel and LPG in India are lower than those in Bangladesh, Nepal, Sri Lanka and Pakistan.

The total subsidy on petroleum products will still be Rs. 160 thousand crores. This is more than what we spend on Health and Education together. We held back from raising prices further because I hoped that oil prices would decline.

Let me now turn to the decision to allow foreign investment in retail trade. Some think it will hurt small traders.This is not true.

Organised, modern retailing is already present in our country and is growing. All our major cities have large retail chains. Our national capital, Delhi, has many new shopping centres. But it has also seen a three-fold increase in small shops in recent years.

In a growing economy, there is enough space for big and small to grow. The fear that small retailers will be wiped out is completely baseless.

We should also remember that the opening of organised retail to foreign investment will benefit our farmers. According to the regulations we have introduced, those who bring FDI have to invest 50% of their money in building new warehouses, cold-storages, and modern transport systems. This will help to ensure that a third of our fruits and vegetables, which at present are wasted because of storage and transit losses, actually reach the consumer. Wastage will go down; prices paid to farmers will go up; and prices paid by consumers will go down.

The growth of organised retail will also create millions of good quality new jobs.

We recognise that some political parties are opposed to this step. That is why State governments have been allowed to decide whether foreign investment in retail can come into their state. But one state should not stop another state from seeking a better life for its farmers, for its youth and for its consumers.

In 1991, when we opened India to foreign investment in manufacturing, many were worried. But today, Indian companies are competing effectively both at home and abroad, and they are investing around the world. More importantly, foreign companies are creating jobs for our youth — in Information Technology, in steel, and in the auto industry. I am sure this will happen in retail trade as well.

My Dear Brothers and Sisters,

The UPA Government is the government of the aam aadmi.

In the past 8 years our economy has grown at a record annual rate of 8.2 per cent. We have ensured that poverty has declined much faster, agriculture has grown faster, and rural consumption per person has also grown faster.

We need to do more, and we will do more. But to achieve inclusiveness we need more growth. And we must avoid high fiscal deficits which cause a loss of confidence in our economy.

I promise you that I will do everything necessary to put our country back on the path of high and inclusive growth. But I need your support. Please do not be misled by those who want to confuse you by spreading fear and false information. The same tactics were adopted in 1991. They did not succeed then. They will not succeed now. I have full faith in the wisdom of the people of India.

We have much to do to protect the interests of our nation, and we must do it now. At times, we need to say “No” to the easy option and say “Yes” to the more difficult one. This happens to be one such occasion. The time has come for hard decisions. For this I need your trust, your understanding, and your cooperation.

As Prime Minister of this great country, I ask each one of you to strengthen my hands so that we can take our country forward and build a better and more prosperous future for ourselves and for the generations to come.

Jai Hind.”

Read more / Original news source: http://manipur-mail.com/pm-defends-decisions-on-diesel-gas-fdi/

MNS:- Shri J.M. Garg, Vigilance Commissioner, Central Vigilance Commission (CVC) emphasized that there is a need to reduce negative connotation of vigilance. For this, Shri Garg said that there is an urgent need to promote preventive, predictive and pro-active vigilance so that offenders are caught before commission of the offence. He advised CBEC officers that the delay in vigilance proceedings should be avoided. He also called upon the disciplinary authorities to set example by being transparent, diligent and dedicated to work. Shri Garg was speaking after inaugurating the two day seminar on “Transparent and Robust Vigilance Mechanism” here yesterday. Revenue Secretary Shri Sumit Bose, Chairperson, CBEC Ms. Praveen Mahajan and all Members of CBEC, Chief Commissioners and Director Generals of the CBEC and other senior officials also attended the said seminar.
Central Board of Excise & Customs (CBEC) organised the aforesaid two day interactive Seminar at India Habitat Centre, New Delhi on 20th & 21st September, 2012. The objective was to improvise the vigilance mechanisms to make it more responsive, transparent, efficient and robust system, by having open dialogue and interaction amongst senior officials of CBEC, CVC and CBI.
Today on the second day of the Seminar, Shri A P Singh, Director, CBI and Shri Wazahat Habibullah, Chairman, National Commission for Minorities and former Chief Information Commissioner addressed the CBEC officers among others.
Addressing the officers, Shri A.P.Singh, Director, CBI, expressed concern over falling rank of India in Transparency International Index. He stressed that bonafide decisions should not be pursued from vigilance angle, as one gets wiser on hindsight. He highlighted about phenomenon of collusive corruption and methods to check it. He expressed that transparency can be enhanced by introducing e-tendering, putting all the websites, disclosure of information etc. He also stressed upon the need for expeditious disposal of vigilance cases.
Shri Wajahat Habibullah, Chairman, National Commission for Minorities spoke at length about relevance of RTI in improving the in-house system of department and containing the menace of corruption. He explained to the participating CBEC officers that the RTI act was only a means to meet the end result of weeding out corruption. He emphasized the need to enhance transparency and accountability in the system.
Revenue Secretary Shri Sumit Bose while concurring with the need for use of technology for improved systems, reduced human interface and transparency also highlighted the need for creating an enabling environment where honest administrators can work without fear and are duly rewarded. He stressed that the bonafide mistakes should be distinguished from the malafide mistakes and genuine decision makers must be encouraged and protected, while guilty should be quickly punished. In this regard, there should be regular interaction with the CVC and CBI, and action plans may be worked out, he added.
Addressing the officers, Ms. Praveen Mahajan, Chairperson, CBEC highlighted the measures taken by CBEC to make it a simple, transparent and non-adversarial tax administration through usage of ICT. She emphasized the continued need for constantly being vigilant and diligent as the stakes are high which has a direct bearing on the economic health of the nation and billions of people, hence there is a need for ‘zero tolerance’ for corruption in the department. She stressed upon that while there are stringent anti- corruption laws, but they can be significant only when they are reflected in our attitude and approach.

Read more / Original news source: http://manipur-mail.com/active-vigilance-to-ensure-offenders-are-caught-before-commission-of-the-offence-says-vigilance-commissioner/

MNS:- The Election Commission of India today started a two-day consultation with Civil Society Organizations on ‘Inclusive Voting and Electoral Participation’ in New Delhi. This is first formal consultation by the ECI at the national level with civil society groups from across the country. In his key note address at the consultation, Shri V S Sampath, Chief Election Commissioner called for active support of civil society organizations for higher registration and higher voter turnout. He said ECI’s goal is to build wider social support in favour of participatory democracy and to promote and sustain it through election education and voter participation.
Shri H S Brahma, Election Commissioner said that civil society organisations should sensitise people about the issues to help them make informed choices during elections. Shri Brahma said CSOs could be of great value in spreading the ECI’s message of informed and ethical voting. Ms Caitlin Wiesen, Country Director, UNDP India, commended ECI’s initiative to partner with CSOs in promoting inclusive Voter participation and said ‘It would stregthen participatory democratic governance.’
Shri Nasim Zaidi, Election Commissioner and senior officials of ECI and UNDP also attended the function. Shri Akshay Rout, Director General of the Commission highlighted the record participation of voters achieved during the assembly elections earlier this year through comprehensive outreach measures. Later, civil society organizations held intense consultation on various aspects of inclusion and participation.
The consultation is being organised by the Systematic Voters Education and Electoral Participation (SVEEP) Division of ECI in association with UNDP. Around 40 Civil Society Organisations from across the country working in the field of Voter Education, Women empowerment, inclusion and other related fields are participating in this national consultation. The consultation aims at coming up with recommendations on six important issues in elections viz meeting gender gap, fighting urban apathy, overcoming youth disconnect, inclusion of marginalised and weaker section, ethical voting-beyond intimidation and inducements, and electoral services support by NGOs. The consultation also aim at preparing a framework for Commission and civil society organizations to work together.

Read more / Original news source: http://manipur-mail.com/eci-holds-first-consultation-with-civil-society-organisations/

MNS:- Ministry of Health & Family Welfare, in consultation with the Ministry of Information & Broadcasting, has agreed to amend the Notification issued vide GSR 786(E) dated 27.10.2011 regarding steps to be taken by the film industry while depicting smoking scenes in their films.
As per provisions of the amended draft notification agreed to by the two Ministries, anti-tobacco health spots of minimum 30 seconds shall be displayed at the beginning and middle of the films displaying tobacco products or their use. Also, an audio-visual disclaimer of minimum 20 seconds on the ill-effects of tobacco use shall be displayed at the beginning and middle of the films displaying tobacco products or their use. Ministry of Health & Family Welfare has agreed to bear all the costs relating to production of such health spots and disclaimers. These health spots and disclaimers prepared by the Ministry of Health & Family Welfare will be provided to the Central Board of Film Certification in digital beta format for distribution to the filmmakers at the time of their application for certification.
In addition to the health spots and disclaimers, the films showing use of the tobacco products shall also be required to display an anti-tobacco health warning in the form of a static message during the period of display of the tobacco products or their use in the films.
It has been agreed between the two Ministries to drop the clause that necessitated “UA” Certification for the films showing tobacco products or their use. Films showing use of tobacco products will now not be considered for “UA” certification on this ground alone. Ministry of Health & Family Welfare has issued revised Notification in this regard.

Read more / Original news source: http://manipur-mail.com/ministry-of-ib-and-mo-health-to-amend-notification-regarding-depiction-of-smoking-scenes-in-films/

MNS:- The Union Finance Minister Shri P. Chidambaram approved a new tax saving scheme called “Rajiv Gandhi Equity Saving Scheme“(RGESS),exclusively for the first time retail investors in Securities Market. This Scheme would give tax benefits to new investors who invest up to Rs. 50,000 and whose annual income is below Rs. 10 lakh.
The Scheme not only encourages the flow of savings and improves the depth of domestic capital markets, but also aims to promote an ‘equity culture’ in India. This is also expected to widen the retail investor base in the Indian securities markets.
Salient features of the Scheme are as under:
a. Scheme is open to new retail investors, identified on the basis of their PAN numbers. This includes those who have opened the Demat Account but have not made any transaction in equity and /or in derivatives till the date of notification of this Scheme and all those account holders other than the first account holder who wish to open a fresh account.
b. Those investors whose annual taxable income is = Rs. 10 lakhs are eligible under the Scheme.
c. The maximum Investment permissible under the Scheme is Rs. 50,000 and the investor would get a 50% deduction of the amount invested from the taxable income for that year.
d. Under the Scheme, those stocks listed under the BSE 100 or CNX 100, or those of public sector undertakings which are Navratnas, Maharatnas and Miniratnas would be eligible. Follow-on Public Offers (FPOs) of the above companies would also be eligible under the Scheme. IPOs of PSUs, which are getting listed in the relevant financial year and whose annual turnover is not less than Rs. 4000 Crore for each of the immediate past three years, would also be eligible.
e. In addition, considering the requests from various stakeholders, Exchange Traded Funds (ETFs) and Mutual Funds (MFs) that have RGESS eligible securities as their underlying and are listed and traded in the stock exchanges and settled through a depository mechanism have also been brought under RGESS.
f. To benefit the small investors, the investments are allowed to be made in instalments in the year in which tax claims are made.
g. The total lock-in period for investments under the Scheme would be three years including an initial blanket lock-in period of one year, commencing from the date of last purchase of securities under RGESS.
h. After the first year, investors would be allowed to trade in the securities in furtherance of the goal of promoting an equity culture and as a provision to protect them from adverse market movements or stock specific risks as well as to give them avenues to realize profits.
i. Investors would, however, be required to maintain their level of investment during these two years at the amount for which they have claimed income tax benefit or at the value of the portfolio before initiating a sale transaction, whichever is less, for at least 270 days in a year. The calculation of 270 days includes those days pursuant to the day on which the market value of the residual shares /units has automatically touched the stipulated value after the date of debit.
j. The general principle under which trading is allowed is that whatever is the value of stocks / units sold by the investor from the RGESS portfolio, RGESS compliant securities of at least the same value are credited back into the account subsequently. However, the investor is allowed to take benefits of the appreciation of his RGESS portfolio, provided its value, as on the previous day of trading, remains above the investment for which they have claimed income tax benefit.
k. For the purpose of valuation of shares, the closing price as on the previous day of the date of trading will be considered so that new investors are certain about their debits and credits into the account.
l. In case the investor fails to meet the conditions stipulated, the tax benefit will be withdrawn.
Like all financial products which have reached out substantially to the retail investors (post office savings, life insurance policies etc) through tax benefits, this tax break for direct investment in equity is expected to substantially encourage the retail participation in securities market as well as to enhance their participation in the growth of Indian industry. Entry of more retail investors are expected to further deepen the securities markets as they bring in long-term stable funds, which can counteract the volatility created by the liquidity providers of the market. The Scheme, thus, also furthers the goal of financial stability and promotes financial inclusion. Since Exchange Traded Funds and Mutual Funds have also been brought under the Scheme, the Scheme should provide encouragement and re-assurance to the first time investors. The broad provisions of the Scheme and the income tax benefits under it have already been incorporated as a new Section – 80CCG – of the Income Tax Act, 1961, as amended by the Finance Act, 2012.
Department of Revenue will notify the Scheme and SEBI will issue the relevant circulars to operationalize the Scheme in the next two weeks.

Read more / Original news source: http://manipur-mail.com/finance-minister-approves-the-operational-features-of-the-rgess/

MNS:- Union Minister of Civil Aviation Shri Ajit Singh has said that providing affordable air connectivity to remote and interior areas of the country, the North Eastern Region and Tier-II & III cities of India is high on his priorities. For this new and innovative solution in the form of Route Dispersal Guidelines, aircraft acquisition and development of low cost airports will be put in place. He was addressing the 5th ASSOCHAM International Conference on Indian Civil Aviation in New Delhi today.
The Minister outlined a number of important action points needed to develop civil aviation sector in India. The agenda that he narrated in the Conference to develop the sector included getting ATF declared as notified product to bring transparency in its pricing and reduction of VAT on ATF by the States; creation of Civil Aviation Authority to manage the phenomenal growth of air traffic with safety; development of world class ANS infrastructure to manage the coming growth phase safely and efficiently; development of low cost airports to keep the tariff at its minimal at smaller airports which in turn would help in making air travel affordable; restructuring of Airports Authority of India into ANS & Civil Wing to make it more effective, efficient and professional body; creation of a separate Civil Aviation Security Force which is professionally trained and exclusively meant for the work of civil aviation and skill augmentation in civil aviation sector through a vibrant, world class aviation education and training.
Shri Singh expressed concern over the financial health of airline carriers in India despite the high growth rate of passengers. Stating that the approximate losses of airlines in the last financial year 2011-12 have been over Rs. 10,000 crores, the Minister said that one of the major challenges of the air traffic industry in India is the high and growing debt burden of the carriers. He said nearly half of the debt is aircraft related and the rest is accounted for by working capital loans, dues to airport operators and fuel companies. Shri Singh said that while there are number of structural factors that are responsible for this phenomenon, the operating cost environment is adversely impacting the financials of the airline sector.
Shri Singh emphasised the need to develop India as an international hub for the passengers. He said that action in this regard has been initiated, which includes revisiting the policy regarding bilateral air service agreements with different countries and also rationalisation of all bilaterals and traffic entitlements on international routes to Indian carriers and rationalisation of traffic on domestic routes. The Minister outlined the major actions taken in the last nine months in this direction which included allowing 49% FDI by foreign airlines in Indian carriers, allowing Indian carriers to import ATF, allocation of traffic rights to domestic private carriers to fly on International routes and creation of separate Air Accident Bureau for effective analysis of causes and taking corrective measures. Shri Singh also touched upon the steps taken to bring turnaround of Air India including equity infusion, conversion of short term loans to long term loans and issue of Government guaranteed NCDs to raise funds.
The Minister said India needs to make lot of efforts and significant investments in the field of development of airport infrastructure (construction of new airports, expansion and modernization of existing airports), improvement in connecting infrastructure (road, metro, sea, link etc.) and better air space management. He called upon the industry to come forward with innovative & implementable ideas for the development of civil aviation sector in India.

Read more / Original news source: http://manipur-mail.com/ajit-singh-says-air-connectivity-to-remote-areas-is-high-on-his-priorities/