THE ANALYSIS OF THE HINDU AND ECONOMIC TIMES DATED 15 AND 16 TH SEPTEMBER 2019

• NEWS PAPER ANALYSIS IN HINDI
  THE HINDU AND ECONOMIC TIMES DATED 15 AND 16 TH SEPTEMBER 2019
  DR SHASHI AGGARWAL
• GOVT UNVEILS PACKAGE TO BOOST EXPORTS.REVIVE HOUSING SECTOR (1)
  15/9/2019 ( THE HINDU)

1. UNION FINANCE MINISTER NIRMALA SITHARAMAN ANNOUNCED A THIRD SET OF GOVERNMENT DECISIONS TO REVIVE THE ECONOMY INCLUDING RS 50,000 CRORE EXPORT INCENTIVE SCHEME AND A RS 10,000 CRORE SPECIAL WINDOW TO PROVIDE LAST MILE FUNDING FOR UNFINISHED HOUSING PROJECTS.
2. THIRD SET OF ANNOUNCEMENT FOCUSED ON PROVIDING A FILLIP TO EXPORTS WHICH CONTRACTED 6.05% IN AUGUST AND EASING THE PLIGHT OF HOME BUYERS.

• EXPORT PACKAGE:-

1. NEW SCHEME FOR REMISSION OF DUTIES OR TAXES EXPORT PRODUCT WHICH WILL REPLACE THE MERCHANDISE EXPORTS FROM INDIA SCHEME. THE SCHEME IS AIMED AT THE OFFSETTING THE AMOUNT EXPORTER PAYS AS DUTIES ON EXPORT
2. REVENUE FORGONE IS 50,000 CRORES PER YEAR
3. ELECTRONIC REFUND MODULE FOR QUICK AND AUTOMATED REFUND OF INPUT TAX CREDITS TO EXPORTERS BY THE END OF THE SEPTEMBER
4. BANKS TO BE PROVIDED HIGHER INSURANCE COVER FOR WORKING CAPITAL LOANS TO EXPORTERS
5. RBI TO MODIFY THE PRIORITY SECTOR LENDING NORMS TO INCREASE CREDIT TO EXPORTERS BY 36000 TO 68,000 CRORES

• HOUSING PACKAGE

1.  A SPECIAL FUND TO PROVIDE LAST MILE FUNDING FOR UNFINISHED HOUSING UNITS
2. THIS WILL BE AVAILABLE FOR NON NPA,NON NCLT AFFORDABLE AND MIDDLE INCOME PROJECTS
3. GOVT WILL PROVIDE 10,000 CRORE EITHER INVESTORS WILL PUT IN ROUGHLY THE SAME AMOUNT
4. EXTERNAL COMMERCIAL BORROWING GUIDELINES WILL BE RELAXED TO FACILITATE FOR HOME MAKERS WHO ARE ELIGIBLE UNDER THE PRADHAN MANTRI AWAS YOJNA
5. INTEREST ON HOUSE BUILDING ADVANCES TO BE LOWERED.

1. THE EDIT PAGE 10 ( ET)
   A SPECIAL FUNDS TO FINISH NPA PROJECTS
2. WELCOME MOVE THE GOVERNMENT KEEPS UP THE MOMENTUM OF ITS EFFORTS TO SHORE UP FLAGGING GROWTH IN A SITUATION WHERE SENTIMENTS MATTER AT LEAST MUCH AS ACTUAL DATA
3. FINANCE MINISTER ‘S THIRD BOOSTER SHOT FOR THE ECONOMY COMPRISED A HOUSING WORTH RS 20,000 CRORES AND AN EXPORT PACKAGE WORTH 50,00 CRORE
4. THE EXPORT PACKAGE IMAGINATIVELY CALLED REMISSION OF DUTIES OR TAXES ON EXPORT PRODUCT( RoDTEP)  AND CLAIMED TO WORLD TRADE ORGANIZATION COMPLIANT WILL REIMBURSE TAXES,DUTIES,CESS ON PETROLEUM PRODUCT AND ELECTRICITY AND OTHER EMBEDDED NON GST LEVIES THAT ADD ON TO THE VALUE OF THE EXPORT.
5. THE EXPORTER COULD CLAIM A SEPARATE ROUND OF GST REFUNDS
6. THE HOUSING PACKAGE ALSO TURNS OUT TO BE LESS ATTRACTIVE ON CLOSER EXAMINATION OF THE CONDITIONS
7. FUNDS FROM SPECIAL FACILITY OF 20,000 CRORS WOULD BE AVAILABLE TO HOUSING PROJECTS PROVIDED NOT DEFAULTED ON PAYMENT AND HAVE NOT BECOME THE NPA
8. HOUSE WHICH IS COMPLETE 60% WHY DOES IT NEED SPECIAL FACILITY
9. CONCLUSION:

• SIGNIFICANT LARGER SPECIAL FACILITY IS NEEDED TO TAKE OVER AND COMPLETE PROJECTS THAT HAVE DEFAULTED ON LOANS AND STUCK
• THE EDITORIAL PAGE 8
  THE HINDU
  WAITING FOR THE REFORMS

1. THE THIRD ROUND OF STIMULUS MEASURES TO RUSTICATE THE STRUGGLING ECONOMY BUT ONCE AGAIN THEY HAVE LARGELY FAILED TO LIVE UP TO THE INITIAL HYPE AROUND THEM
2. THE PREVIOUS TWO ROUNDS FOCUSING PRIMARILY ON REVIVING THE AUTOMOBILE SECTOR,BOOSTING THE CONFIDENCE OF FOREIGN INVESTORS AND IMPROVING THE HEALTH OF BANKS
3. THIS TIME THE FOCUS IS ON UNDER PERFORMING EXPORT AND REAL ESTATE SECTOR
4. NEW TAX BREAKS TO THE EXPORT SECTOR CAUSE DENT UP TO 50,000 CRORES TO THE GOVT REVENUE
5. EXTERNAL COMMERCIAL BORROWING NORMS HAVE BEEN EASED AND EASY FOR INDIAN REAL ESTATE COMPANIES TO TAP FUNDS FROM BOARD AND FUNDS WORTH 10,OOO CRORES HAVE BEEN ALLOCATED TO AID THE COMPETITION OF AFFORDABLE HOUSING PROJECTS
6. PROBLEM IS OF LACK OF DEMAND
7. OVER ALL CUTTING ACROSS ALL THREE STIMULUS ROUND ANNOUNCED,HAS BEEN RELYING ALMOST ENTIRELY ON PROVIDING FISCAL RELIEF IN THE FORM OF TAX CUTS AND A TINY AMOUNT OF GOVT SPENDING
8. EXPECTATION WAS OF STRUCTURAL REFORMS

• 16/09/2019 PAGE 1
  ET: GOVT PANEL MAY STUDY MERGER OF NRI AND FPI ROUTES
• THE GOVT PLANS TO APPOINT HIGH LEVEL COMMITTEE TO LOOK INTO THE MERGER OF THE NON RESIDENT AND FOREIGN PORTFOLIO INVESTOR ROUTES
• THE ISSUES :

1. THE RBI HAD EXPRESSED CONCERNS OVER A MERGER OWING TO UNCERTAINTY OWING TO UNCERTAINTY OVER NRE ( NON RESIDENT EXTERNAL ACCOUNT
2. NRI ARE ELIGIBLE TO OPEN RUPEE DENOMINATED NRE ( NON RESIDENT EXTERNAL )  BUT FPI NOT ELIGIBLE
3. NRI INVEST IN STOCKS VIA PORTFOLIO MANAGEMENT
4. IT WILL HAMPER THE MERGER

• MERGER IS RECOMMENDED BY A COMMITTEE SET UP BY SEBI

1. THE PROPOSED COMMITTEE WILL CONSIST OF
2. OFFICIALS OF THE RBI,DEPARTMENT OF ECONOMIC AFFAIRS AND SEBI
3. IF NRI TURN INTO FPI THEY WILL HAVE TO CREATE CORPORATE ENTITIES FOR TRUST

4.    EXPERT OPINION:-

5. NRI SHOULD HAVE LOWER COMPLIANCE REQUIREMENTS
6. SHOULD THEY BE ALLOWED TO MAKE SAVING DEPOSITS EVEN AFTER BECOMING FPI

• PAGE 1
  CLICK WAIT FOR ECOMM AS CONSUMER PUT OFF BUYS

1. CONSUMER SPENDING ON LINE SHOPPING SITES IS ESTIMATED TO BE  DOWN BY ABOUT A FIFTH IN THE FIRST HALF OF THE YEAR TO JUNE AS RETAILER HAVE CUT DISCOUNTS AND GROWTH SLUMP HAS HIT BUYING SENTIMENTS ACROSS SECTORS AS PER THE REPORT OF KANTAR
2. THE COMPANY EXPECTS BOUNCE BACK IN THE FESTIVE SEASON

• REASONS
• PAGE 2
  GOVT PLANS AMENDMENT TO DEFINE OFFICE OF PROFIT

1. CONSIDERATION OF CONSTITUTIONAL AMENDMENT TO DEFINE THE TERM OFFICE OF PROFIT AND THE EXEMPTED CATEGORIES
2. THE PROPOSED AMENDMENT SEEKS TO DEFINE OFFICE OF PROFIT AS ANY OFFICE UNDER THE CONTROL OF THE UNION GOVERNMENT OR THE STATE GOVERNMENT WHETHER OR NOT SALARY  OR REMUNERATION FOR SUCH OFFICE IS PAID OUT BY THEM FROM THE PUBLIC REVENUE ; ANY BODY/ORGANIZATION WHICH MAY BE WHOLLY OR PARTIALLY OWNED BY THE CENTRAL GOVERNMENT AND PAYS FOR THE SALARY OR REMUNERATION FOR THE HOLDERS OF SUCH AN OFFICE IS ALSO INCLUDED IN THE PROPOSED DEFINITION; ANY OFFICE IN WHICH IS THE OCCUPANT/HOLDER IS CAPABLE OF EXERCISING EXECUTIVE POWERS DELEGATED BY THE GOVERNMENT INCLUDING DISBURSEMENT OF FUNDS,LAND ALLOTMENT,ISSUING OF LICENCES OR PERMIT,MAKING PUBLIC APPOINTMENT OR GRANTING FAVOUR OF A SUBSTANTIAL NATURE WHICH MAY BE LEGISLATIVE,JUDICIAL OR QUASI JUDI CAL
3. THE DRAFT BILL PROPOSES TO BRING IN CLEAR DEFINITION WITH THE AMENDMENTS TO SUBCLAUSES 1(a) OF ARTICLE 102 WHICH DEALS WITH DISQUALIFICATION.
4. WHILE THE CURRENT CLAUSE SAYS THAT A UNION MINISTER OR STATE MINISTER SHALL NOT BE DEEMED AS OFFICE OF PROFIT
5. THE AMENDMENT PROPOSES TO INCLUDE THOSE HOLDING AN ADVISORY OFFICE FOR THE UNION OR STATE OR AN OFFICE FOR THE UNION OR STATE LEGISLATURE
6. AN OFFICE IN PARLIAMENT OR STATE LEGISLATURE MEANS THE OFFICES WHICH ARE DIRECTLY CONNECTED WITH THE DISCHARGE OF LEGISLATIVE FUNCTION SUCH AS THE OFFICE OF THE LEADER OF OPPOSITION,DEPUTY LEADER OF A PARTY ,CHIEF WHIPS AND DEPUTY CHIEF WHIPS SO ON
7. ALSO SEEKS TO DEFINE TERMS SALARY AND REMUNERATION AND COMPENSATORY ALLOWANCE
8. IF THE HOLDER OF THE OFFICE IS ENTITLED TO DRAW SALARY/REMUNERATION,WILL BE SEEN AS AN OFFICE OF THE PROFIT IRRESPECTIVE OF WHETHER HE ACTUALLY RECEIVES IT
9. THE AMENDMENT PROPOSES TO DEFINE SALARY OR SALARY OR SCALE O F PAY ATTACHED TO THE OFFICE WHETHER OR NOT SUCH SALARY IS DRAWN
10. THE REMUNERATION MEANS ANY PECUNIARY GAIN COMMENSURATE WITH THE STATUS, AND RESPONSIBILITIES ATTACHED TO OFFICE BUT SHALL NOT INCLUDED THE EXPENDITURE INCURRED ON THE STAFF AND INFRASTRUCTURE FOR RUNNING OFFICE.
11. GOVT PLANS AMENDMENT TO DEFINE OFFICE OF PROFIT
12. CORRESPONDING AMENDMENT HAVE BEEN PROPOSED TO ARTICLES 191 OF THE CONSTITUTION AS WELL

• THE HINDU
  PAGE 1
  VOICES GROW LOUDER AGAINST PITCH TO PUSH HINDI

1. UNION MINISTER AMIT SHAH’S ASSERTION THAT HINDI AS THE MOST SPOKEN LANGUAGE COULD WORK TO UNITE THE COUNTRY CONTINUED TO DRAW SHARP REACTION FROM THE OPPOSITION PARTIES
2. THE POLIT BUREAU OF CPI(M) STRONGLY OPPOSES THESE EFFORTS
3. CONTRARY TO THE SPIRIT OF THE CONSTITUTION ‘S LINGUISTIC DIVERSITY
4. ALL LANGUAGES LISTED IN THE EIGHTH SCHEDULE OF THE CONSTITUTION ARE NATIONAL LANGUAGE AND MUST BE TREATED EQUALLY. ANY ATTEMPT TO IMPOSE ANY ONE LANUAGE WILL LEAD TO DISRUPTION OF OUR COUNTRY’S UNITY AND INTEGRITY