A brief on news, tie-ups, appointments and awards
Pariwartan ARC to tackle power NPAs
Lenders weighed down by exposure to stressed assets in the power sector may soon find relief. An asset restructuring company (ARC) under the Power Asset Revival through the Warehousing and Rehabilitation (Pariwartan) scheme is to be incorporated by October. The ARC will allow lenders to park stressed power assets facing liquidation proceedings under the National Company Law Tribunal (NCLT) route. The scheme is for projects that do not have power purchase or fuel supply agreements some may be commissioned, while some are likely to be commissioned. The scheme is meant to bail out these projects for four to five years.
PM unveils world's largest health cover scheme
The world's largest government-funded healthcare programme, the Pradhan Mantri Jan Arogya Yojana (PMJAY), or Ayushman Bharat, was launched by Prime Minister Narendra Modi in Ranchi last month. Over 10 crore families - both urban and rural poor - will be provided an annual health cover of Rs 5 lakh each under the PMJAY. The scheme will benefit over 50 crore people: the poor, deprived rural families and identified occupational categories of urban workers' families. The PMJAY will provide comprehensive health insurance, covering 1,300 illnesses, including serious ones, such as cancer and diseases of the heart. Private hospitals will also be a part of the scheme.
Demat must for shares of unlisted public cos
The Centre has set October 2 as deadline for issue and transfer of shares of all unlisted public companies in
dematerialised or demat form (shares in electronic form). According to the Companies Act, 2013, a public company is formed by seven persons or more, while for a private
company, this number is two or more. If shares of such companies are not traded on a stock exchange, they are normally called unlisted companies. According to the Corporate Affairs Ministry, the decision for mandatory dematerialisation has been taken for "further enhancing transparency, investor protection and governance in the corporate sector".
Ethanol price hiked to help sugar mills
In a bailout for the sugar sector battling with surpluses, the Centre has announced a massive hike in the price of ethanol produced directly from sugarcane juice. The procurement price of ethanol derived from 100 per cent sugarcane juice has been fixed at Rs 59.13 per litre against the existing rate of Rs 47.13 per litre. The price of ethanol produced from B-heavy molasses has been hiked to Rs 52.43 a litre from
Rs 47.13. But the price of ethanol produced from Cheavy molasses has been reduced marginally to Rs 43.46 from Rs 43.70. The decision is expected to help sugar mills saddled with surplus stock of the sweetener to divert the cane juice for ethanol production.
3 schemes launched to boost farmers' income
The government has launched a new umbrella scheme, the Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), which aims to provide minimum support price (MSP) assurance to farmers. The new scheme has three components - Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Pilot of Private Procurement & Stockist Scheme (PPPS). PDPS has been framed on the lines of the Madhya Pradesh government's Bhavantar Bhugtan Yojana (BBY) to protect oilseed farmers. The other existing schemes of the Department of Food and Public Distribution for
procurement of paddy, wheat, nutricereals and coarse grains and those of the Ministry of Textile for cotton and jute will be continued to provide MSP to farmers for these crops.
Tamil Nadu unveils new ICT policy
After a gap of ten years, the Tamil Nadu government has come up with the Information and Communication Technology (ICT) Policy, 2018. The policy offers a slew of incentives and exemptions to IT and ITeS companies, MSMEs and start-ups. Tamil Nadu Chief Minister Edapaddi K Palaniswami released the policy last month at a conference on skill development and placement opportunities for engineers at the Secretariat in Chennai. The policy provides standard fiscal incentives.
Saridon among 328 fixeddose drugs banned
Painkiller Saridon and skin cream Panderm are among
328 fixed-dose combination (FDC) drugs banned by the government to stop their "irrational use". The Health Ministry notes that the ingredients in these medicines do not markedly add to the benefits that people can get from taking them. The order immediately bans manufacture, marketing and sale of several common cough syrups, painkillers and cold and flu drugs. The country's drug advisory body, the Drug Technical Advisory Board has said that there is no therapeutic justification for the ingredients in these drugs, and they must be banned in public interest.
India jumps one spot up in HDI ranking
India has moved one spot up in the Human Development Index (HDI) to 130 from 131 last year, according to latest rankings of 189 countries released by the United Nations Development Programme (UNDP) last month. Among the other South Asian countries, Sri Lanka and Maldives were ahead of India at 76 and 101 HDI ranks respectively. On the other hand, neighbours Bangladesh and Pakistan were ranked at 136 and 150 respectively. India's HDI value is above the average of 0.638 for the region. HDI measures progress in key dimensions of human development, such as education, health and living standards.
SEBI slashes mutual fund expense ratio
The SEBI has reduced total expense ratio (TER) by 25 basis points in the top slab for both equity and debt mutual funds. For assets under management (AUM) of Rs 0-500 crore, TER for equity-oriented schemes is 2.25 per cent, for AUM of Rs 500-700 crore it will be 2 per cent, for Rs 750-2,000 crore, it will be 1.75 per cent and for Rs 2,000-5,000 crore, it will be 1.60 per cent. The SEBI has asked the mutual fund industry to adopt the full trail model of commission in all schemes without payment of any upfront commission or upfronting of any trail commission.