Skip to main content

THOUGHT-PROVOKING ANNOUNCEMENTS BY THE GOVERNMENT

 The government announcements on September 15,2021 will certainly take India one step ahead towards attaining the $5 trillion economy goal by the year 2025.

(1) PLI Scheme for Auto, Ancillaries & Drones  

     The Government has approved Rs.26000 crore production linked incentives for Automobile and Ancillary Sectors and Rs.120 crore for drones.  For the Auto sector, this is expected to attract more than Rs.42500 crore in the production of environmentally cleaner electric and hydrogen fuel cell vehicles over a five-year period.  The incentives are available to both existing automotive companies as well as new investors. Vehicles powered by traditional internal combustion engines, including those running on petrol, diesel, CNG, and ethanol are also eligible for any new-age technologies that they may bring to the automotive ecosystem. This will generate Rs.2,30,000 crore of incremental production and 76000 new jobs. 

The PLI scheme for drones will run for three years offering Rs.120 crore incentives.  This will trigger an investment of Rs.5000 crore and yield output of Rs.1,500 crore and create 10,000 new jobs

(2) BAD BANK to be set up

    The Government will also set up a 'Bad Bank' to resolve the problem of Bad debts or  NPAs in banks'  that has constrained the easy flow of credit in the economy. Bank's gross non-performing assets are likely to exceed Rs.10 lakh crore by March-end 2022. The Bad Bank will be set up by comprising an asset reconstruction company(ARC) and an asset management company (AMC) to consolidate and take over the stressed debt of banks.  The government will provide guarantees to support the bad bank to the extent of Rs.31000 crore.  Full government guarantees may not be invoked keeping in view an upside recovery of bad debts by banks of late. It plans to return bank guarantees worth Rs. 14000 crore to Vodafone Idea(VI) and Rs. 8000 crore to Bharti Airtel if they opt for a four-year moratorium.  

(3) Moratorium to Telcos on AGR & Spectrum Dues

ARANTEESO RETURN BANK GU  Another good step taken by the government is the announcement of a 4-year moratorium on adjusted gross revenue (AGR) and spectrum payments by Telcos. The AGR has been redefined to exclude 'non-telecom items and cut the spectrum usage charges (SUC) to zero.  This will improve the health of the debt-laden telecom sector and also ensure that at least three private players remain in the sector for healthy competition. Not only this, the government has been finding a mechanism to give stressed Vodafone  Idea and other telcos an opinion of converting interest accrued on dues over the four-year moratorium into equity to be owned by the centre. 

In the light of these developments, one may be prompted to give his views in the form of a write-up. Economic Challenger will publish such write-ups of any length in the forthcoming issues free of cost. editor@econoomicchallenger.net




Comments

Popular posts from this blog

ISSUE 73 Oct-Dec 2016

Notification- Publication in UGC Listed Journals Is Not Mandatory

According to the latest  UGC regulations published in July 2018 , minimum research publications in UGC listed journals is no more a mandatory, but optional. According to the revised regulations, publications in peer-reviewed journals will also be considered for the appointment of academic faculty (Assistant / Associate / Professor / Vice Principal / Principal).  These regulations are issued for minimum qualifications for appointment and other service conditions of University and College teachers and cadres of Librarians, Directors of Physical Education and Sports for maintenance of standards in higher education and revision of pay-scales. Provided further that for appointment to the post of Assistant Professor and equivalent positions pertaining to disciplines in which the National Eligibility Test (NET), conducted by the University Grants Commission or Council of Scientific and Industrial Research as the case may be, or State level Eligibility Test (SLET) or the State Eligibi

Issue 65 to Issue 34

Issue 65 Oct-Dec 2014   Friday, November 28, 2014, 03:36 AM * GOODS & SERVICES TAX (GST) WAITING FINALISATION * BUDGET 2014-15: A BIT FOR EVERY ONE AND DUCKING BRONCO OF INDIA’S ECONOMY--Mithilesh Kumar Sinha * ECONOMY IN LIMELIGHT - ONLINE RETAIL CAUSING WORRIES - GOVERNMENT TO REVIVE & SUSTAIN HIGHER GDP GROWTH - E-COMMERCE FIRMS ATTRACTIVE EMPLOYEES FROM BRICK & MORTAR RETAILERS - DEVELOPMENT OF INFRASTRUCTURE GOVT’S TOP PRIORITY. - USE OF BIO-DIESEL TO CUT CRUDE IMPORTS - PRIVATISATION OF SICK PSUs ON CARDS * Perceived Outcomes of brand Endorsements : A field study conducted in Kolkata -Kisholoy Roy & Dr. Saumya Singh * Foodgrain off take by beneficiaries of Public Distribution System : A Rural - Urban Study in Odisha -Dr. Jnanaranjan Mohanty * Analytical Evaluation of the extent of customer satisfaction with RAK airways- - Sharad Nair & Dr. Harsh Purohit * Frauds: An Indian Banking Perspective : Geetika Gupta & Ashish Gupta * IS