11.07.2014
Government's first budget promotes solar energy, safety for women
NEW DELHI (Thomson Reuters Foundation) - Funds to help farmers adapt to climate change, ultra-modern solar power plants and schemes to promote women's safety in cities are among pledges the new government made in its first budget on Thursday.
Prime Minister Narendra Modi's government, which swept to power in May, said in its 2014/15 budget that it would establish a National Adaptation Fund to help millions of farmers adapt to changing weather patterns resulting from global warming.
"Climate change is a reality which all of us have to face together. Agriculture as an activity is most prone to the vagaries of climate change," Finance Minister Arun Jaitley told parliament.
"To meet this challenge, I propose to establish a National Adaptation Fund for climate change. As an initial sum an amount of 100 crore (rupees) ($18.5 million) will be transferred to the fund."
Farming makes up makes up almost one-sixth of India's GDP, but the sector is highly reliant on monsoon rains which are becoming increasingly erratic.
NEW DELHI (Thomson Reuters Foundation) - Funds to help farmers adapt to climate change, ultra-modern solar power plants and schemes to promote women's safety in cities are among pledges the new government made in its first budget on Thursday.
Prime Minister Narendra Modi's government, which swept to power in May, said in its 2014/15 budget that it would establish a National Adaptation Fund to help millions of farmers adapt to changing weather patterns resulting from global warming.
"Climate change is a reality which all of us have to face together. Agriculture as an activity is most prone to the vagaries of climate change," Finance Minister Arun Jaitley told parliament.
"To meet this challenge, I propose to establish a National Adaptation Fund for climate change. As an initial sum an amount of 100 crore (rupees) ($18.5 million) will be transferred to the fund."
Farming makes up makes up almost one-sixth of India's GDP, but the sector is highly reliant on monsoon rains which are becoming increasingly erratic.
Jaitley said the ruling coalition - led by the Bharatiya Janata Party (BJP) - would also promote clean energy, and announced plans to build solar power plants in four states.
"New and renewable energy deserves a very high priority. It is proposed to take up ultra mega solar power projects in Rajasthan, Gujarat, Tamil Nadu, and Ladakh in Jammu and Kashmir. I have set aside a sum of 500 crore rupees ($93 million) for this," said Jaitley.
He said the government also planned to launch a $74 million scheme for solar power-driven agricultural water pumping stations for 100,000 pumps and to spend a further $18.5 million on developing 1 MW Solar Parks on canal banks.
India is desperate for power, and coal is expected to remain at the heart of its energy security for decades. Seventy million households – up to 40 percent of the country's 1.2 billion people - have no access to electricity.
Jaitley listed a series of tax breaks for renewable sources of energy, including exemptions from excise duty on components used in the manufacture of solar photovoltaic cells and wind-operated generators.
Environmentalists were sceptical.
"The recognition that climate change is real and that the need to 'adapt' is urgent is a very important message of Budget 2014," said Sunita Narain, director of the Centre for Science and Environment.
"The FM (finance minister) provides $18.5 million for a national adaptation fund. While it can be argued that this is too little, … this is a first step to recognise the need to invest in building resilience of poor communities against climate change. The question now is, what will this money be used for?"
"New and renewable energy deserves a very high priority. It is proposed to take up ultra mega solar power projects in Rajasthan, Gujarat, Tamil Nadu, and Ladakh in Jammu and Kashmir. I have set aside a sum of 500 crore rupees ($93 million) for this," said Jaitley.
He said the government also planned to launch a $74 million scheme for solar power-driven agricultural water pumping stations for 100,000 pumps and to spend a further $18.5 million on developing 1 MW Solar Parks on canal banks.
India is desperate for power, and coal is expected to remain at the heart of its energy security for decades. Seventy million households – up to 40 percent of the country's 1.2 billion people - have no access to electricity.
Jaitley listed a series of tax breaks for renewable sources of energy, including exemptions from excise duty on components used in the manufacture of solar photovoltaic cells and wind-operated generators.
Environmentalists were sceptical.
"The recognition that climate change is real and that the need to 'adapt' is urgent is a very important message of Budget 2014," said Sunita Narain, director of the Centre for Science and Environment.
"The FM (finance minister) provides $18.5 million for a national adaptation fund. While it can be argued that this is too little, … this is a first step to recognise the need to invest in building resilience of poor communities against climate change. The question now is, what will this money be used for?"
GENDER EDUCATION
Jaitley also announced proposals to address the rise in violence against women in India.
"Women’s safety is a concern shared by all the honourable members of this House. We need to test out different approaches that can be validated and scaled up quickly," he said.
The government plans to spend $9 million on a pilot scheme to improve women’s safety on public transport, and an additional $28 million in large cities.
"Crisis Management Centres" will also be set up in all government and private hospitals in the capital, to provide support to victims of crimes such as rape and domestic violence.
The number of crimes against women in India reported to the police such as rape, dowry deaths, abduction and molestation increased by 26.7 percent in 2013 from a year earlier, rising to 309,546 from 244,270, the National Crime Records Bureau says.
"It is a shame that while the country has emerged as a major player amongst the emerging market economies, the apathy towards female children is still quite rampant in many parts of the country," said Jaitley.
"Therefore I propose to launch Beti Bachao, Beti Padhao Yojana (Save Our Daughters, Educate Our Daughters Scheme) which would help in generating awareness and also help in improving the efficiency of delivery of welfare services meant for women."
Gender sensitisation campaigns are also required to bring about greater public awareness and stem discrimination and abuse against women and girls, the minister said, adding that school curriculums would have a separate chapter on gender issues.
No random retrospective tax, says Jaitley
Finance Minister Arun Jaitley Thursday said retrospective taxation, which evoked much criticism from domestic and overseas investors, notably Britain's Vodafone, remained any sovereign government's prerogative but assured that India will not resort to it randomly.
"The sovereign right of the government to undertake retrospective legislation is unquestionable," the finance minister said during the course of his two-hour budget speech in the Lok Sabha.
"However, this power has to be exercised with extreme caution and judiciousness, keeping in mind the impact of each such measure on the economy and the overall investment climate," he said.
"This government will not ordinarily bring about any change retrospectively which creates a fresh liability."
The finance minister acknowledged that after some retrospective amendments to the Income Tax Act, 1961, in 2012, a few cases had come up in various courts and other legal arenas, which are awaiting verdicts.
"At this juncture I would like to convey to this august house and also the investors community at large that we are committed to provide a stable and predictable taxation regime that would be investor friendly and spur growth."
He said all fresh cases of retrospective amendments in indirect transfers and coming to the notice of the assessing officers will be scrutinised by a high level tax committee before any action is initiated in such cases.
"I hope the investor community both within India and abroad would repose confidence on our stated position and participate in the Indian growth story with renewed vigour."
Reacting to Jaitley's comments, Vodafone, which was slapped with a Rs.20,000 crore retrospective capital gains tax after it acquired the telecom assets of an Indian company in 2007, said it will continue with the ongoing international arbitration to resolve the dispute.
"We note the finance minister's announcement that existing cases arising from the 2012 retrospective tax law should follow the lawful process in which they are currently being adjudicated," the company said in a statement.
"Vodafone will, therefore, continue the process of international arbitration initiated under the India-Netherlands Bilateral Investment Treaty."
Colour TVs to be cheaper, radio taxis costlier
New Delhi, July 10 (IANS) Finance Minister Arun Jaitley Thursday proposed exempting colour picture tubes and LCD/LED televisions of less that 19 inches from basic customs duties to increase their domestic manufacture and employment opportunity.
"The duty concession will help revive manufacturing of TVs in the SME (small and medium enterprises) sector and create employment opportunities," Jaitley said.
The duty exemption is expected to make the old model colour TVs cheaper.
In order to encourage production of LCD and LED TVs less than 19 inches in India, Jaitley proposed to reduce the basic customs duty on them to zero from the current 10 percent.
"Further, to encourage manufacture of LCD and LED TV panels, I propose to exempt from basic customs duty specified inputs used in their manufacture," he said.
In order to spur the domestic stainless steel industry, Jaitley proposed to hike the basic customs duty on imported flat-rolled stainless steel products to 7.5 percent from the current five percent.
The finance minister also proposed customs duty concessions for some solar power equipment and on machinery needed for setting up of projects for solar energy production.
Jaitley said that to promote wind energy, customs duty is proposed to be reduced to five percent on forged steel rings used in manufacture of bearings used in wind energy generators.
He also proposed to exempt raw materials and components needed for making wind operated generators from four percent special additional duty (SAD).
"Further, I propose to prescribe a concessional basic customs duty of 5 percent on machinery and equipment required for setting up of compressed biogas plants (Bio-CNG)," he said.
Jaitley also proposed rationalisation of duties that would benefit the ship breaking/coal sectors.
In the case of excise duties, Jaitley proposed to reduce it for footwear, food processing and machinery manufacturers.
In order to widen the service tax net, Jaitley proposed to prune the negative list to include sale of space or time on online and mobile advertising and radio taxis.
According to Jaitley, the indirect tax proposals are expected to yield Rs.7,525 crore.
Veteran actress Zohra Sehgal dies at 102
New Delhi, July 10 (IANS) Veteran actress Zohra Sehgal died here Thursday of cardiac arrest at the age of 102, a family member said.
A heart patient, Sehgal was admitted to the Max Hospital in south Delhi's Saket area after being diagnosed with pneumonia Wednesday. She died of a heart attack at 4.30 p.m. Thursday.
She was staying here with her daughter, renowned Odissi danseuse Kiran Sehgal.
Her cremation will take place Friday.
In 1994, Sehgal was diagnosed with cancer, but she fought it off and did not let illness or age dampen her spirit.
A theatre veteran, Sehgal was well-versed with the Hindi film industry and is one of the few actors who worked with four generations of Bollywood's famous Kapoor family - Prithviraj Kapoor to Raj Kapoor, Rishi Kapoor to Ranbir Kapoor.
She is best remembered for her appearances in "Bhaji on the Beach" (1992), "Hum Dil De Chuke Sanam", "Bend It Like Beckham" (2002), and "Dil Se..." (1998). And who can forget her role as Amitabh Bachchan's impish mother in "Cheeni Kum"!
Her last big screen appearance was in "Saawariya".
Among several awards, she was honoured with the Padma Shri, Padma Bhushan and Padma Vibhushan.
Nepal teenager commits suicide after Brazil defeat
KATMANDU, Nepal (AP) — A teenager in eastern Nepal committed suicide after her favorite team Brazil lost badly to Germany in the World Cup semifinals, police said Thursday.
Police said the 10th grade student was depressed and hanged herself from the ceiling on Wednesday morning in Bharaul village located 400 kilometers (250 miles) east of the capital Katmandu.
The teenager was identified as Pragya Thapa. Her mother found her hanging from the ceiling in her room. She was living with her mother and grandparents while her father was abroad working.
Police said they were investigating and the body had been sent for autopsy.
Brazil lost 7-1 to Germany in the semifinal on Tuesday.
Poor monsoon threatens first drought in five years
NEW DELHI (Reuters) - Weak rainfall in India since the start last month of the monsoon season, crucial to the country's agricultural earnings, has raised concerns of a first drought in five years, although weather experts are hopeful rains will revive in the next week.
A poor monsoon cuts exports, stokes food inflation and leads to lower demand for products ranging from cars to consumer goods, while a slow start could delay exports of somecrops and increase the need for imports.
Rains last week spread to soybean areas in central parts of India and cane areas in the north, but overall rains stood at 43 percent below the seasonal average, a weather office update showed.
In 2009 the worst drought in nearly four decades forced India, the world's top sugar consumer, to buy large quantities of the sweetener from top producer Brazil, driving benchmark New York futures to a 30-year high.
The farm sector accounts for around 14 percent of India's nearly $2 trillion economy, and two-thirds of its 1.2 billionpopulation live in rural areas.
Jaitley also announced proposals to address the rise in violence against women in India.
"Women’s safety is a concern shared by all the honourable members of this House. We need to test out different approaches that can be validated and scaled up quickly," he said.
The government plans to spend $9 million on a pilot scheme to improve women’s safety on public transport, and an additional $28 million in large cities.
"Crisis Management Centres" will also be set up in all government and private hospitals in the capital, to provide support to victims of crimes such as rape and domestic violence.
The number of crimes against women in India reported to the police such as rape, dowry deaths, abduction and molestation increased by 26.7 percent in 2013 from a year earlier, rising to 309,546 from 244,270, the National Crime Records Bureau says.
"It is a shame that while the country has emerged as a major player amongst the emerging market economies, the apathy towards female children is still quite rampant in many parts of the country," said Jaitley.
"Therefore I propose to launch Beti Bachao, Beti Padhao Yojana (Save Our Daughters, Educate Our Daughters Scheme) which would help in generating awareness and also help in improving the efficiency of delivery of welfare services meant for women."
Gender sensitisation campaigns are also required to bring about greater public awareness and stem discrimination and abuse against women and girls, the minister said, adding that school curriculums would have a separate chapter on gender issues.
No random retrospective tax, says Jaitley
Finance Minister Arun Jaitley Thursday said retrospective taxation, which evoked much criticism from domestic and overseas investors, notably Britain's Vodafone, remained any sovereign government's prerogative but assured that India will not resort to it randomly.
"The sovereign right of the government to undertake retrospective legislation is unquestionable," the finance minister said during the course of his two-hour budget speech in the Lok Sabha.
"However, this power has to be exercised with extreme caution and judiciousness, keeping in mind the impact of each such measure on the economy and the overall investment climate," he said.
"This government will not ordinarily bring about any change retrospectively which creates a fresh liability."
The finance minister acknowledged that after some retrospective amendments to the Income Tax Act, 1961, in 2012, a few cases had come up in various courts and other legal arenas, which are awaiting verdicts.
"At this juncture I would like to convey to this august house and also the investors community at large that we are committed to provide a stable and predictable taxation regime that would be investor friendly and spur growth."
He said all fresh cases of retrospective amendments in indirect transfers and coming to the notice of the assessing officers will be scrutinised by a high level tax committee before any action is initiated in such cases.
"I hope the investor community both within India and abroad would repose confidence on our stated position and participate in the Indian growth story with renewed vigour."
Reacting to Jaitley's comments, Vodafone, which was slapped with a Rs.20,000 crore retrospective capital gains tax after it acquired the telecom assets of an Indian company in 2007, said it will continue with the ongoing international arbitration to resolve the dispute.
"We note the finance minister's announcement that existing cases arising from the 2012 retrospective tax law should follow the lawful process in which they are currently being adjudicated," the company said in a statement.
"Vodafone will, therefore, continue the process of international arbitration initiated under the India-Netherlands Bilateral Investment Treaty."
Colour TVs to be cheaper, radio taxis costlier
New Delhi, July 10 (IANS) Finance Minister Arun Jaitley Thursday proposed exempting colour picture tubes and LCD/LED televisions of less that 19 inches from basic customs duties to increase their domestic manufacture and employment opportunity.
"The duty concession will help revive manufacturing of TVs in the SME (small and medium enterprises) sector and create employment opportunities," Jaitley said.
The duty exemption is expected to make the old model colour TVs cheaper.
In order to encourage production of LCD and LED TVs less than 19 inches in India, Jaitley proposed to reduce the basic customs duty on them to zero from the current 10 percent.
"Further, to encourage manufacture of LCD and LED TV panels, I propose to exempt from basic customs duty specified inputs used in their manufacture," he said.
In order to spur the domestic stainless steel industry, Jaitley proposed to hike the basic customs duty on imported flat-rolled stainless steel products to 7.5 percent from the current five percent.
The finance minister also proposed customs duty concessions for some solar power equipment and on machinery needed for setting up of projects for solar energy production.
Jaitley said that to promote wind energy, customs duty is proposed to be reduced to five percent on forged steel rings used in manufacture of bearings used in wind energy generators.
He also proposed to exempt raw materials and components needed for making wind operated generators from four percent special additional duty (SAD).
"Further, I propose to prescribe a concessional basic customs duty of 5 percent on machinery and equipment required for setting up of compressed biogas plants (Bio-CNG)," he said.
Jaitley also proposed rationalisation of duties that would benefit the ship breaking/coal sectors.
In the case of excise duties, Jaitley proposed to reduce it for footwear, food processing and machinery manufacturers.
In order to widen the service tax net, Jaitley proposed to prune the negative list to include sale of space or time on online and mobile advertising and radio taxis.
According to Jaitley, the indirect tax proposals are expected to yield Rs.7,525 crore.
Veteran actress Zohra Sehgal dies at 102
New Delhi, July 10 (IANS) Veteran actress Zohra Sehgal died here Thursday of cardiac arrest at the age of 102, a family member said.
A heart patient, Sehgal was admitted to the Max Hospital in south Delhi's Saket area after being diagnosed with pneumonia Wednesday. She died of a heart attack at 4.30 p.m. Thursday.
She was staying here with her daughter, renowned Odissi danseuse Kiran Sehgal.
Her cremation will take place Friday.
In 1994, Sehgal was diagnosed with cancer, but she fought it off and did not let illness or age dampen her spirit.
A theatre veteran, Sehgal was well-versed with the Hindi film industry and is one of the few actors who worked with four generations of Bollywood's famous Kapoor family - Prithviraj Kapoor to Raj Kapoor, Rishi Kapoor to Ranbir Kapoor.
She is best remembered for her appearances in "Bhaji on the Beach" (1992), "Hum Dil De Chuke Sanam", "Bend It Like Beckham" (2002), and "Dil Se..." (1998). And who can forget her role as Amitabh Bachchan's impish mother in "Cheeni Kum"!
Her last big screen appearance was in "Saawariya".
Among several awards, she was honoured with the Padma Shri, Padma Bhushan and Padma Vibhushan.
Nepal teenager commits suicide after Brazil defeat
KATMANDU, Nepal (AP) — A teenager in eastern Nepal committed suicide after her favorite team Brazil lost badly to Germany in the World Cup semifinals, police said Thursday.
Police said the 10th grade student was depressed and hanged herself from the ceiling on Wednesday morning in Bharaul village located 400 kilometers (250 miles) east of the capital Katmandu.
The teenager was identified as Pragya Thapa. Her mother found her hanging from the ceiling in her room. She was living with her mother and grandparents while her father was abroad working.
Police said they were investigating and the body had been sent for autopsy.
Brazil lost 7-1 to Germany in the semifinal on Tuesday.
Poor monsoon threatens first drought in five years
NEW DELHI (Reuters) - Weak rainfall in India since the start last month of the monsoon season, crucial to the country's agricultural earnings, has raised concerns of a first drought in five years, although weather experts are hopeful rains will revive in the next week.
A poor monsoon cuts exports, stokes food inflation and leads to lower demand for products ranging from cars to consumer goods, while a slow start could delay exports of somecrops and increase the need for imports.
Rains last week spread to soybean areas in central parts of India and cane areas in the north, but overall rains stood at 43 percent below the seasonal average, a weather office update showed.
In 2009 the worst drought in nearly four decades forced India, the world's top sugar consumer, to buy large quantities of the sweetener from top producer Brazil, driving benchmark New York futures to a 30-year high.
The farm sector accounts for around 14 percent of India's nearly $2 trillion economy, and two-thirds of its 1.2 billionpopulation live in rural areas.
"The monsoon appears to be more unpredictable," Finance Minster Arun Jaitley said, presenting his maiden budget onThursday.
India, one of the world's top producers and consumers of rice, corn, cooking oil, sugar and cotton, relies heavily on thesummer rains as nearly half its farmland lacks irrigation.
The lacklustre monsoon could push up edible oil imports bythe world's top palm oil buyer. That in turn could underpin benchmark Malaysian prices of the tropical oil that have plunged more than a tenth this year.
The monsoon this year arrived five days late on the southernKerala coast, and then covered half of India four days laterthan the usual date of June 15. Usually, the monsoon covers theentire country around mid-July.
"The water-stressed western region is expected to receive good rainfall next week as conditions have become favourable for a revival," said M. Rajeevan, a senior meteorological scientistwith the ministry of earth sciences.
DROUGHT CONCERNS
Delayed progress of monsoon rains towards the grain belt of northwest India and oilseed-growing regions of central and western India has prompted concerns about a shortfall in grains output, causing prices of some food items to rise.
Jaitley said last week there was no cause to panic about the possibility of higher inflation, after a private forecasting agency said there was a 60 percent chance India would face a drought this year.
"Even if due to inadequate rainfall there is a marginaldecline in agricultural production, stocks in the central poolare adequate to meet any exigency (emergency)," Jaitley said..India's government under new Prime Minister Narendra Modihas moved to ease market concerns over supply shortages and price speculation with a number of steps, including raids against hoarders.
Policy makers in New Delhi fear a failure of this year's monsoon could push up retail food inflation by at least one percentage point.
Soaring prices of basic goods such as milk and potatoes lifted retail food inflation in May to 9.4 percent and the poor monsoon has fanned fears of worse to come.
India, one of the world's top producers and consumers of rice, corn, cooking oil, sugar and cotton, relies heavily on thesummer rains as nearly half its farmland lacks irrigation.
The lacklustre monsoon could push up edible oil imports bythe world's top palm oil buyer. That in turn could underpin benchmark Malaysian prices of the tropical oil that have plunged more than a tenth this year.
The monsoon this year arrived five days late on the southernKerala coast, and then covered half of India four days laterthan the usual date of June 15. Usually, the monsoon covers theentire country around mid-July.
"The water-stressed western region is expected to receive good rainfall next week as conditions have become favourable for a revival," said M. Rajeevan, a senior meteorological scientistwith the ministry of earth sciences.
DROUGHT CONCERNS
Delayed progress of monsoon rains towards the grain belt of northwest India and oilseed-growing regions of central and western India has prompted concerns about a shortfall in grains output, causing prices of some food items to rise.
Jaitley said last week there was no cause to panic about the possibility of higher inflation, after a private forecasting agency said there was a 60 percent chance India would face a drought this year.
"Even if due to inadequate rainfall there is a marginaldecline in agricultural production, stocks in the central poolare adequate to meet any exigency (emergency)," Jaitley said..India's government under new Prime Minister Narendra Modihas moved to ease market concerns over supply shortages and price speculation with a number of steps, including raids against hoarders.
Policy makers in New Delhi fear a failure of this year's monsoon could push up retail food inflation by at least one percentage point.
Soaring prices of basic goods such as milk and potatoes lifted retail food inflation in May to 9.4 percent and the poor monsoon has fanned fears of worse to come.