‘Neeti Ayog’ Replaces Planning Commission

Making his promise to restructure the 64 year old Planning Commission, Prime Minister Narendra Modi announced on New Year’s Day that it will replaced by a new body named 'Neeti Ayog’.

The decision was taken at the Cabinet meeting. Earlier, PM Modi held consultations with Chief Ministers at a meeting where most favored restructuring of the Socialist-era body.

The new body will replace the five-decade old Planning Commission and will be headed by a vice-chairman, not deputy chairman as was the case in the Commission.

Modi had announced in his Independence Day speech that the Planning Commission would be replaced by a new body which is in-sync with the contemporary economic world.

Addressing the Chief Ministers on December 7, Modi had invoked former Prime Minister Manmohan Singh who had said on April 30 last year that the current structure has "no futuristic vision in the post-reform period".

Modi had pushed for an effective structure which strengthens "cooperative federalism" and the concept of "Team India".

There were indications that the new structure will have the Prime Minister, some Cabinet Ministers and some Chief Ministers along with technocrats and experts in various fields.

Manappuram Finance Plans Portfolio Expansion

As part of its portfolio expansion, Kerala based Manappuram Finance, with a market share of around 12 per cent in the gold loan business, might acquire a commercial vehicles (CV) loan company.

V P Nandakumar, managing director and chief executive officer of the company said its CV portfolio has an asset under management (AUM) of below Rs 5 crore. “If a good opportunity comes up, we will acquire a CV loan company. The AUM of that company should be below Rs 1000 crore because we can currently look for only that much. We started offering CV loans a few months earlier because our customers wanted these. We want to expand this business gradually. These loans are treated as priority sector lending (PSL), which will be good since we are eyeing a small finance bank licence.

He added the company might gradually think of even applying for a universal bank licence. The company may have to cut branches to become a small finance bank. “A bank is a more stable model than an NBFC, but there will be challenges in transition. Our customer base is currently 30 lakh and we have 3,200 branches. We may face challenges in getting people to run the bank. Besides, the RBI may not allow all our branches to be converted into bank branches so we may have to rationalize them. Branches may have to be merged for rationalization. Even technology may be a challenge,” said Nandakumar.

For conversion into small finance banks the Reserve Bank of India (RBI) has put a condition that the promoter's minimum initial contribution to the paid-up equity capital of such banks should be at least 40 per cent. “Considering this, the possibility of other players coming up is very minimal. But if RBI can relax this condition, more players can come. In most companies, the promoter’s stake is less than 10 per cent,” added Nandakumar.

De Beers Has No Plans to Open India Trading Office

Luxembourg based De Beers, the global diamond mining company, says it has no plan to open a trading office in India as auction sales customers in India are serviced out of either Dubai or Antwerp.

India’s Gems and Jewellery Export Promotion Council (GJEPC) had been pressing the central government to declare a large office at the Bharat Diamond Bourse in the Bandra Kurla Complex of this city as a ‘Special Notified Zone’, to enable global miners such as De Beers to bring rough diamonds tax-free for auctioning in India.

Currently, small diamond processors travel to Dubai, Belgium and Antwerp for inspection of rough diamond lots and again for participating in auctions.

At the recent ‘Make in India’ meeting of business people and policy makers with Prime Minister Narendra Modi, GJEPC urged the government to introduce a conducive taxation regime, at par with other global gem and jewellery hubs such as Belgium, Israel, UAE, Thailand and China.

The industry wants the government to introduce a Benign Assessment Procedure for the diamond industry and to reduce the tax rate from the existing six per cent to 2.5 per cent, in addition to a reduction in import duty on cut and polished coloured gemstones from 2.5 per cent to nil.

Goods sold in a special notified zone come in the form of consignments. In transporting unsold quantities back to Dubai, Antwerp or London, the value of goods is added to the turnover, on which income tax is levied. Therefore, global rough diamond miners have been apprehensive on opening offices in India.

Major global trading centres such as Dubai, Singapore and Belgium have already extended such a facility. De Beers contributes around 25 per cent of India’s rough diamond supply. Well over 90 per cent of all rough diamonds mined in the world are processed in this country. Rough diamond import into India was estimated at $11,878 million in April–November, the first seven months of this financial year, compared with $16,716 mn in the corresponding period last year, 8.5 per cent higher.

E-Commerce Sector Provides More Jobs in 2014

E-commerce companies remained one of the top job providers in 2014 and hiring by these sector expected to climb by 20-30 per cent in next few years on the back of entry of domestic online start-ups and e-commerce multinationals into India, analysts said.

Industry insiders say e-commerce companies are offering around Rs 10 lakh to Rs 25 lakh annual compensation coupled with other benefits that are way ahead of what jobs across other sectors offered. Start-ups flocked to campuses to recruit double the number of fresh graduates they did in 2013.

E-commerce becoming favorites among job seekers as fresher’s as well as middle-level and senior managers joined companies like Flipkart, Amazon, Olacabs and Zomato.

Job creation has been one of the key agendas of the new government as one million youth enter our workforce every month. The year 2014 started on a sober note as businesses were uncertain about the future.

This reflected in their hiring, which stagnated and even declined in some cases. The overall net employment between October 2013 and March 2014 declined by three per cent. Hiring for entry and junior levels remained flat as companies were interested in engaging a more productive workforce.

Also, a large number of recruiters started using social media sites such as Facebook and LinkedIn extensively for hiring. The year also saw a lot of start-ups with interesting recruitment models. This varied from referral hiring platforms, social media management for hiring and niche databases portals.

Hyderabad Metro Test Runs Driverless Mode

Creating history, Hyderabad Metro Rail has successfully test run a train in Automatic Train Operation (ATO) mode for the first time on Indian soil.

The metro is the first Indian project to implement communication-based train control system. In this mode, the train operates independently and controls its movement, speed, performance etc.

The function of the driver is only to press a button to close the doors at stations and it is a prelude to completely driverless mode which Hyderabad Metro can upgrade any time it wants.

Hyderabad Metro is the first Indian Metro which is implementing Communication-based Train Control (CBTC) system, a very sophisticated and latest railway signaling system.

Several sophisticated sub-systems like Automatic Train Protection (ATP), Automatic Train Supervision (ATS), Vehicle on Board Controller, Zone Controller, Data Communication System, Solid State Interlocking (SSI), etc ensure absolutely fail-safe protection mechanism against train collisions, speed regulation, programmed stopping, door control and other functions. Automatic monitoring of train movement and performance remove any possibility of human error and prevent train collisions due to driver passing train beyond danger signal, which can happen in normal railway working.

The hi-tech CBTC system adopted by Hyderabad Metro facilitates running of trains with one and a half minute (90 sec) frequency with very high reliability. It has built in redundancies to take care of failure of any component.

Most of the important Metros in the world have switched over to CBTC technology and after Hyderabad Metro, the next phase of Delhi Metro has also opted for this technology. Hyderabad Metro is using the latest version of CBTC technology.

India’s Credit Card Base Soars

India is emerging as a top destination for credit card users as country’s credit card base is nearing the pre-crisis level as plastic money to gains acceptance in non-urban geographies also.

The outstanding number of credit cards was 19.95 million at the end of October 2014, the Reserve Bank of India (RBI)'s latest data showed. Bankers claimed the card base had probably topped 20 million in the last two months, for the first time since February 2010.

The exponential growth in India's e-commerce space has helped. The country's 213-million internet population, as on 2013, saw five million additions every month. Consumers are now buying almost everything online - groceries, apparel, furniture, jewellery - and on most occasions are using cards for payments.

The entry of credit information companies has helped banks access comprehensive data of credit history of consumers. A study showed the average credit limits on credit cards had gone up in 2014 across the top 10 cities.

India Jewellery Demand to Climb 10% In 2015

World’s second largest gold consumer India’s jewellery demand in the domestic market is expected to rise by 10 per cent to $32 billion in 2015 on the back of improving consumer sentiments, said ICRA.

In a report named ‘Indian Gold Jewellery Retail Industry’, the independent and professional investment information and credit rating agency said Indian demand for gold jewellery to rise 10 per cent in calendar year 2015 to $32 billion on the back of subdued pick up during 2014.

The demand has been stable since Q4 of CY13 and lower prices, easing regulations and improving consumer sentiment are likely to provide impetus in the coming months, it said.

The last quarter of CY2014 is likely to make up for the initial demand slump and the aggregate demand for the year is estimated at $29 billion, the report added.

Indian domestic gold jewellery in the retail segment had seen the demand at $31 billion in CY2013.

India, amongst the two largest consumers globally along with China, would witness sustained growth owing to cultural affinity, demographic diversity, rising disposable and preferred investment vehicle that are seen as the main growth drivers for the retail jewellery industry, it added.

However, sustained pressure on prices that resulted into postponement of purchases is one major concern of jewelers, as some also believe that any re—introduction of restrictive policies and plateauing of demand sentiment are other possible concerns over the near term.

The industry expects to record robust volume growth driven by improving industry sentiments amid easing regulatory norms and envisaged expansion plans by jewelers during the next 12 months, the report said.

Tata’s Cyrus Mistry Backs ‘Make in India’ Initiative

Modi government’s ‘Make in India’ initiative likely got the backing from Cyrus Mistry, chairman, Tata Group as he highlighted it in his New Year letter to over six lakh Tata Group employees besides highlighting the challenges that the conglomerate faces.

“Recent policy measures and strategic direction defined by the new government, especially it ambitious Make in India campaign hold the promise of re-igniting growth in the years to come,” says Mistry.

Mistry, the new chairman who completed his second year as group head, has laid out a long-term growth strategy plan called Vision 2025. In the letter he says that emerging technologies in the digital and physical space are transforming businesses at a pace never seen before.

“We must deepen our understanding in several areas such as digitisation and big data analytics, and develop an innovation and technology road map to effectively serve evolving customer needs,” he said in the letter. He further emphasised on the need to collaborate and learn as the challenging economic and competitive pressure is putting pressure on profit margins.

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Microsoft Sues India Firm for Trademark Infringement

Internet and operating system giant Microsoft has sued an Indian company along with several other entities alleging that they misused its name and registered trademarks while providing fraudulent technical support services to unsuspecting consumers.

Microsoft's Digital Crimes Unit filed a civil lawsuit earlier this month in federal court in the Central District of California for unfair and deceptive business practices and trademark infringement against C-Cubed Solutions, which is a "private business company formed under the laws of India", Omnitech Support based in California and Florida-based Anytime Techies along with two other individuals.

According to the lawsuit, C-Cubed is a "private company associated under the laws of India." Its directors include Marc Haberman, Rachel Eilat Haberman and Jay Wurzberger.

C-Cubed is a subsidiary of California-based Customer Focus Services (CFS) and "operates the mail server by which CFS' fraudulent technical support businesses communicate with customers," according to the lawsuit.

Microsoft is demanding a jury trial and seeking permanent injunction to restrain and enjoin the defendants from infringement of Microsoft's registered trademarks and from directly or indirectly engaging in false advertising or promotions regarding the quality or security of Microsoft software.

The technology giant alleged in the lawsuit that the defendants used and misused the Microsoft name and its registered trademarks without authorization in connection with the provision of phony technical support services.

Since May 2014, Microsoft has received over 65,000 customer complaints regarding fraudulent tech support scams. It said tech support scammers do not discriminate and will go after anyone and not surprisingly senior citizens have been among the most vulnerable.

Railways to Launch Gandhi Express

Railways Minister Suresh Prabhu said the Railways is keen to launch Gandhi Express, which would take domestic and foreign travellers to various points in Gujarat like Porbandar, Dandi, Sabarmati, Rajkot, Bhavnagar et al which dotted the Mahatma's early life.

Globally, there is huge interest in the Mahatma's early life and the Railways will plug and play into this by taking a train to all the destinations where he spent his formative years.

The minister reiterated that the national transporter would not be privatized and the ownership of it will always remain with the government but need funds for various pending projects and future projects. Vigorous efforts are being made to mobilize investment in Railways sector.

While Prabhu agreed that the public-private partnership model is the best way forward to build competencies in the Railways, he argued that the trade-off between private capital and public interest needs to be maintained at all times.

TRAI Sets 2100 MHz Spectrum Base Price at Rs 2720 Cr

India’s telecom regulator, Telecom Regulatory Authority of India (TRAI) recommended a base price of Rs 2,720 crore per megahertz (MHz) for 2100MHz spectrum in 22 telecom zones.

TRAI reiterated its earlier suggestion that spectrum in the 2100MHz band should be auctioned along with other bands – 800, 900 and 1800MHz – that are scheduled for February 2015.

TRAI has kept the price for 2100MHz band about 14% lower than the price it had recommended for 800MHz band. However, the price is lower than 900MHz, but is much higher than the base price of 1800 MHz band.

TRAI had earlier recommended the base price for 1800MHz spectrum at Rs 2,138 crore per MHz (in 20 circles), 900MHz at Rs 3,004 crore per MHz across 18 circles where existing licenses will be due for renewal, and 800MHz spectrum at Rs 3,104 crore per MHz pan India.

TRAI's recommendations have been sent to the Department of Telecom for final approval. TRAI has also said that Defence Ministry has in-principle agreed to vacate 15 Mhz spectrum in the 2100 Mhz spectrum band. Therefore, this spectrum should be put up for auction along with spectrum in the 1800 Mhz and 900 Mhz bands.

This is good news for telecom companies as they will now have more spectrum bands to bid for.

Govt Asks SpiceJet to Resolve Issues on Its Own

Indian government made it clear that troubled airliner SpiceJet will have to itself resolve its financial woes as the carrier extended its cancellations till January 31, affecting over 300 flights.

"We will have to put SpiceJet on cash-and-carry mode from January 1 if we don't receive further orders from the government on the 15-days payment facility by tomorrow," a senior government official said.

The airline will have to furnish bank guarantee for the Airports Authority of India dues, which stand at Rs 200 crore, to avail parking and landing facilities at various government-run airports from Thursday, the official said.

Over 300 flights have been cancelled till January 31, 2015, which include mostly domestic flights and a few connecting Nepal and Afghanistan.

SpiceJet could resume its operations, which remained grounded almost for the entire day on December 17 due to the oil companies refusing to supply jet fuel to the airline for want of cash, after the government lent a helping hand by asking the oil firms and AAI to extend to it 15-days credit facility till December 31.

Meanwhile in a related development, Civil Aviation Minister Ashok Gajapathi Raju said the Ministry was looking forward to suggestions from the state governments and discussions were underway with all the stakeholders to arrive at a policy which would bring back growth in the aviation sector.

"Policy is a continuously evolving process," he said, adding it would be put in place once the responses from the state governments and other stakeholders were received.

Noting that jet fuel prices contributed majorly to an airline's operating cost, the Minister said that while some states have brought down taxes on the aviation turbine fuel, others have not done so.

Connaught Place among World’s Expensive Office Locations

Real estate consultancy CBRE included New Delhi’s Connaught Place among world’s most expensive prime office market places.

According to a report by CBRE, Connaught Place is even ahead of Shanghai, Tokyo and Manhattan in New York with a rent rate of $160 per sq ft per annum.

As per the list the central business district of Connaught Place in New Delhi has emerged as the sixth most expensive prime office market in the world. Rising economic activities around that place helped it to be a preferred office destination.

The list of 50 most expensive office spaces across the world also had three Indian localities, two in Mumbai and one in Delhi.

Bandra Kurla Complex in Mumbai is the 16th most expensive office location with an annual per sq ft rental of $103, followed by Nariman Point at $76.5 per sq ft per annum.

Asia continued to dominate the world’s most expensive office locations, accounting for three of the top five markets.

GCC Pipes, Tubes Output Hits 14 Million In 2014

The GCC produced 14 million tons of pipes and tubes with a domestic consumption of 2.5 million tons used for energy, infrastructure development, construction projects, water and air conditioning supply.

However, imports from China, India and Europe still accounted for more than 25% of tube and pipe consumption in the GCC region in 2013.

These figures were released in connection with the announcement of Tube Arabia 2015 from January 10 to 13, 2015 at the Dubai International Convention & Exhibition Centre. 

The show comes at a time Gulf’s tubes, pipes and steel industries are enhancing collaboration in logistic operations and human resource development, thus boost the competitive abilities of their products in the international markets.

Hailing the cooperation among GCC countries, Satish Khanna, General Manager, Al Fajer Information and Services, co-organizers of Tube Arabia with German exhibition organizer Messe Dusseldorf said that it would help avoid harmful competition and enhance their negotiation power with importers.

Now Post Offices to Issue ATM Cards

In a significant move, the government has amended the Post Office Savings Bank General Rules to allow Post offices to issue ATM cards to savings bank account holders to help them to operate through ATMs.

This facility, however, will be available only in post offices that are on core banking solution (CBS) platform. A notification said: “In case of an account standing at any post office with a core banking solution platform in place, the Post office Savings Bank shall issue ATM or debit card to the account holder on payment of such fee as may be prescribed by the Central Government.”

Currently, 676 post offices are on CBS. Four head post offices (Delhi, Mumbai, Kolkata and Chennai) have gone live on ATM.

This entire project is part of the Rs 4,909-crore IT modernization project of the Department of Posts. The department aims to take the ATM network to 2,800 by 2015.

The notification also mentioned that a savings account holder at a post office linked to the CBS platform will be allowed to deposit money in his or her account at “any other post office with CBS platform within the limits prescribed”.

Deposits can be made through the electronic mode as well. New rules also provide for giving a statement of account in lieu of the passbook, but only as an option to the customer.

The IT project also aims to provide customer interaction through multiple channels such as call centre’s, internet, ATM, mobile banking and net banking for PO savings bank customers.

It will provide an electronic and secure mode of money transfer, including doorstep delivery even in rural areas.

Govt Brings Back Full Excise Duty on Automobiles

Hoping to collect about Rs 2500 crore a month, the centre government ended the excise duty cuts on automobiles and consumer durables from December 31, 2014, resulting in price hike for these products in 2015.

However, the move will benefit the exchequer and help it to meet the Budget target of reining in the Centre’s fiscal deficit at 4.1 per cent of gross domestic product.

Former government had reduced the excise duty on small cars, scooters, motorcycles and commercial vehicles to eight per cent from 12 per cent. For sports utility vehicles, it was cut to 24 per cent from 30 per cent, for mid-sized cars, to 20 per cent from 24 per cent and for large cars, from 27 per cent to 24 per cent.

For consumer durables, the excise was reduced to 10 per cent from 12 per cent. The sops were given till June 30. In that month, Finance Minister Arun Jaitley had extended the concessions by six months, to December 31.

Various trade bodies and business chambers had approached the finance ministry to extend the duty cuts on automobiles. The Confederation of Indian Industry sought an extension till March 31, 2015. That would have cost the exchequer another Rs 750 crore, sources said. For the first seven months of this financial year, the Centre’s fiscal deficit has already totaled about 90 per cent of the Budget estimate for the full year.

Maruti Suzuki India Chairman R C Bhargava said, “The government has to take these decisions, considering all aspects of the economy. It could have a short-term impact on automobile sales but the government has to take into account the health of the entire economy.”

India Plans Global Tax Regime to Revive Manufacturing

After the successful launch of the ‘Make in India’ programme, India is likely to introduce a globally compatible tax regime to revive the manufacturing sector.

Finance Minister Arun Jaitley on Monday indicated that easing of entry norms for manufacturing as an idea being mulled. He said there had to be a shared vision between the Centre and states, political parties, regulators and allied institutions to put India back on a growth track.

He also nudged the Reserve Bank of India (RBI) to cut the policy rate. The high cost of capital, he said, was the most important factor in the slowing of manufacturing growth in the recent past. 

 “Our regime has to be competitive. People purchase goods; they don’t like to purchase taxes along. Unless our taxation regime is internationally compatible, the cost of our products is going to be more. Competition is going to be international.

He identified cost of capital as a single factor which had slowed manufacturing. Though he did not directly name RBI, it is a fact that the central bank has consistently refused the finance ministry’s expressed desire to a lower policy rate.

Modi government expects growth in gross domestic product to be 5.5 per cent in 2014-15, up from 4.7 per cent the year before.

Amitabh Bachchan plans HBV Awareness Campaign

Bollywood Megastar Amitabh Bachchan is planning to start a new campaign for infectious disease caused by the hepatitis B virus (HBV).

The 72-year-old actor, who is also a UNICEF Global Ambassador for polio eradication since 2005, took his concern for the disease to social media Monday, saying that he met doctors recently to plan strategies to cure it.

 “Wish to start a campaign on awareness of Hepatitis B… Met some committed doctors and shall strategise… Detect and cured asap!,” Bachchan posted on Twitter.

Cabinet Eases Norms for Land Acquisition

Granting a much needed demand from India Inc, the government allowed easier norms for acquiring land in five key sectors including security and defense, infrastructure, power and affordable housing.

The Union cabinet used its executive powers to make the new changes even as it left the level of compensation unchanged. Indian industry has been lobbying for dilution of the so-called restrictive rules defined by the land acquisition law put in place by the previous government.

With this decision, the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) has once again reiterated its intent to create an environment that’s friendly for business.

Addressing a press conference after a meeting of the Union cabinet, finance Minister Arun Jaitley said projects in defense, rural electrification, and housing for the poor and industrial corridors would not require the approval of 80% of affected landowners. Nor would they need a social impact study involving public hearings, as prescribed in the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. “The cabinet recommended to the President the promulgation of ordinance to amend the Land Acquisition, Rehabilitation and Settlement Act,” Jaitley added.

The government said that urgency of the land acquisition ordinance was because under Section 105 of the Act, 13 pieces of legislation—including the Atomic Energy Act 1962, Railways Act 1989, National Highways Act 1956, and Metro Railways (Construction of Works) Act, 1978—needed clarity on which provisions of the Act applies to them. And their exclusion deadline ends on 1 January 2015.

The amendment in Section 105 has included the provision that compensation and rehabilitation for the land that is acquired will be applicable in the 13 exempted Acts as well. The government has inserted a new provision that will ease the process of acquiring lands for the five key sectors.​

PM Says Nation to Develop ‘Brand India’ Globally

By making products with “zero defect” and no environmental effect through the ‘Make in India’ programme, the country needs to make ‘Brand India’ popular globally, said Prime Minister Narendra Modi.

Addressing industrialists and Government officials at the Make in India meet, PM said “One cannot stop at just ‘Make in India’. We have to develop ‘Brand India’ globally. For that, we have to manufacture products that have global demand with ‘zero defect and zero effect’ (on the environment)”.

India has to concentrate on developing five ‘M’s—man, material, machine, money and minerals—and there can be no stagnation in these areas, Modi said. A financial sector meeting in the first week of January, which will mostly be related to banking, will concentrate on what role this sector should play for the fast development of these five ‘M’s, said the Prime Minister.

The one-day workshop on ‘Make in India’, attended by industrialists and senior Central and State Government officials, focussed on preparation of short-term (one-year) and long-term (three years) growth plans for 25 identified sectors, such as aviation, auto, textiles, cement, food processing, chemicals and entertainment.

Stressing on the need for development of human resources, greater innovation and more research and development, the Prime Minister said these three should be part of one process and not isolated.

“We have to look forward and see what kind of skills we want, and develop our workforce accordingly. For instance, if we want to manufacture bullet trains, we have to ask ourselves if we have the engineering force to achieve that,” he said. Despite performing well in the IT sector, India has not been able to do any remarkable innovation in the area. “We have not been able to make a Google. Our talented manpower has gone outside. The best in the world should be born in India,” Modi said, adding India’s space scientists are showing the way toward excellence, and others should follow.

Make In India: PM Promises ‘ROAD’ From ‘ABCD’

Reiterating his government’s investor friendly policies, Prime Minister Narendra Modi said the government must move away "from the culture of avoid, bypass, confuse and delay" (ABCD) and move to one of "responsibility, ownership, accountability and discipline."( ROAD).

Talking at a 'Make in India' event, Modi promised to address all concerns of investors under his 'Make in India' plan, which aims at smoothening processes to give a big boost to manufacturing in the country.

Talking of bureaucratic hurdles and red tape that led to what was called a policy paralysis that depressed investor sentiment, the PM said "We are ready to change laws, hasten approvals", suggesting a "public-private partnership also in decision making, not just in project investments."

He emphasised on "going beyond Make in India and developing India as a global brand by producing zero defect and zero environment effect products," saying brand India must reach every corner of the globe.

 The PM also stressed on balanced growth. Calling for balanced development in the country, PM Modi said there should be maximum movement of man, material, money, machine and mineral across the country.

"During the day-long effort, responsibilities have been fixed, roadmap has been prepared, required changes in policies have been decided... Now I don't think there is any requirement for paperwork. Now, things will be implemented automatically," PM Modi said.

Speaking at the same event earlier in the day, Finance Minister Arun Jaitley pledged to remove entry barriers to business and ensure a competitive tax regime to push manufacturing growth.

"The entry point into the manufacturing sector itself has to be eased. Our initial barriers have to be lowered and perhaps even removed. If we keep the doors closed, investments won't come in," he said.

FM Rejects RBI Governors Criticism on ‘Make In India’

Defending governments Make In India policy and rejecting RBI Governor Raghuram Rajan’s criticism of the programme, Finance Minister Arun Jaitley said it is about manufacturing of quality products at low costs and it was not relevant whether they are sold in India or abroad.

“Whether Make in India is made for consumers within India or outside is not so relevant. The principle today says that consumers across the world like to purchase products which are cheaper and are of good quality. They hire services which are cheaper and good quality,” Jaitley said.

Earlier, Rajan had sounded a word of caution about the new government’s ‘Make in India’ campaign, saying it assumes an export-led growth path of China and it should rather be ‘Make for India’ with a focus on manufacturing products for the domestic market.

Speaking at a “Make in India’ event here this morning, Jaitley said manufacturing sector will continue to face challenges unless it transitions itself while keeping the quality and price in mind.

Rajan had said he was “cautioning against picking a particular sector such as manufacturing for encouragement, simply because it has worked well for China.

“India is different, and developing at a different time, and we should be agnostic about what will work.”

China’s Shenzhen Restricts Car Sales

Following Beijing and Shanghai, Shenzhen became the third Chinese city to restrict sales of new cars in an escalating war against smog and snarling traffic.

More Chinese cities are expected to follow suit, adding woe to China's already slowing auto market, and increasing pressure on carmakers such as General Motors Co and Volkswagen AG to accelerate expansion in China's less affluent, but less crowded western cities.

The government of Shenzhen said through its official micro blog that it would cap the number of new cars to be sold in the city at 100,000 a year.

Shenzhen is the latest Chinese city to place restrictions on new car sales, following a similar move earlier this year by Hangzhou, a city in eastern China, near Shanghai. Other cities that have placed restrictions include Shanghai, Beijing, Tianjin, Guangzhou and Guiyang.

Consultancy McKinsey has forecast that by 2020, more than 20 Chinese cities would exceed a burdensome car-density threshold of 250 vehicles per kilometer of roads, promoting officials to implement similar car sales restrictions.

India Plans 3 Lakh Crore Investments in Power Sector

As part of its efforts to fulfil the ambitious target to give 24X7 electricity to all, India government said it planned investments of Rs 3 lakh crore in the Transmission &Distribution sector and have already started the Deen Dayal Grameen Jyoti Yojana and Integrated Power Development Scheme.

Power Minister Piyush Goyal said his ministry gears up to free the sector from a gridlock of fuel scarcity, regulatory clogs and other issues. He said the ministry is confident that the results would start showing in the New Year and a right foundation has been laid to 'power up' the power sector since the new government took over.

The mass cancellation of coal mines was a big 'shock' for India’s power sector in 2014, but the sector is hopeful that this thorny issue of fuel supply has been put to rest with the launch of a transparent auction process for coal mines.

India’s First Smart City Takes Shape in Gujarat

India’s first smart city project is going great in Gujarat, one of India's largest manufacturing hubs and Prime Minister Narendra Modi's home state.

Launched in 2007, Gujarat International Finance Tec-City (GIFT) is Modi's dream project and a joint venture between the Gujarat state government and Infrastructure Leasing & Financial Services.

The $12 billion smart city, located 12km from Ahmedabad international airport and 8km from the state capital, Gandhinagar, aims to become a global financial hub, offering international companies world-class infrastructure.

GIFT city has made it onto a list of the world's 100 most inspirational and innovative projects, compiled by international accounting firm KPMG, which said the mega project in Gujarat combines state-of-the-art connectivity, infrastructure and transportation with sustainable and environmentally sensitive growth.

Smart cities is the catchphrase as Prime Minister Narendra Modi's government lays the groundwork for his ambitious programme aimed at setting up 100 such urban settlements nationwide.

The PM wants to take big city living to a new level where 24/7 utilities services becomes an essential in public service delivery.

Modi's vision for advanced cities that benefit from the latest technology has finally begun to take shape with the Ministry of Urban Development identifying almost all the locations where they will be built. In the Union Budget, Finance Minister Arun Jaitley had promised allocation of a sum of Rs.7,060 crore for the development of the smart cities.

Govt Clears Rs 6,000 cr Electronic Manufacturing

Indian government has approved Electronic Manufacturing Proposals worth Rs 6,000 crore in the last six months from proposals of about Rs. 18,000 crores. Telecom Minister Ravi Shankar Prasad handed over first reimbursement cheque to Bosch Electronics on December 25.

According to Department of Electronics and Information Technology, the companies who have come up with investment proposals include Nidec, Continental, Motherson Sumi, Calsonic Kansei, Tissol, Tata SED, Tejas, Panasonic and others.

Investments have come from most of the electronics segments like electronic components, telecom network equipments, LED, consumer electronics, automotive and strategic electronics.

Under Modified Special Incentive Package (MSIPS), government provides subsidy for investments in capital expenditure with a limit of 20 percent for investments in Special Economic Zone (SEZ) and 25 per cent in non-SEZs.

"About 25-30 new companies across various segments have come with investment proposals. Now people across geographies are very sure about the electronics manufacturing push of Indian government. Reimbursement of MSIPS benefit has further boosted confidence," the Department said.

Last year, only companies who were present in India came up with proposals to expand their facilities but in the past six months proposals came from both existing and new firms, the department added.

Credai Urges Govt for New Reforms in Real Estate

The Confederation of Real Estate Developers' Association of India (Credai) urged the government to introduce new reforms and ensure their prompt implementation to revive the real estate sector.

In a statement, the industry body said it need fast implementation of reforms in the New Year or else there is a risk of losing steam and sought "political will" for reforms. Credai also called for government's intervention to facilitate low-cost funding for home buyers as well as developers.

Rising prices of steel and cement continue to be a cause for concern and the Centre needs to take steps to regulate the prices, it said.

"The continuous fall in fuel prices is not translating into price reduction of cement, steel and even transport. In spite of slowdown in consumption, we saw a huge rise in cement and steel prices. The government needs to regulate steel and cement prices just as the power regulators monitor tariff," Credai said.

"Besides rising prices, high lending rates by banks have hit the realty sector severely. With a lot of positive outlook and hopes shown by the new government, we anticipate that land, administrative tax and banking reforms will be executed without further delay," it added.

TRAI to Review HD Channel Subscription Charges

Good news awaiting millions of Indian TV viewers as country’s telecom and broadcast regulator TRAI is planning to review the freedom given to direct-to-home (DTH) service providers in deciding subscription charges for high definition (HD) channels.

According to reports, Telecom Regulatory Authority of India is mulling reviewing forbearance regime on HD channels and the consultation paper on the same will be floated in January 2015 month.

The report said the decision in this regard has been taken as the regulator does not find much difference between the SD and HD viewing experience and there is also little difference in the number of advertisements between the two.

There are about 40 HD channels available in the country and DTH operators charge a premium price for them compared to normal standard definition (SD) channels.

In 2013, TRAI had issued directions that TV channels should show only 12 minutes of advertisements in an hour-long programme but the same has been challenged by industry. The matter is sub-judice.

Mars Launch Marks Glorious Year for India Space Sector

India witnessed yet another glorious year in Space technology with many credits including the successful inter-planetary Mars Orbiter Mission launch, the first country to achieve this feat in its maiden attempt.

Year 2014 was not only a momentous year for the space sector but a very busy one as the ISRO saw two successful launches of GSLVs and five foreign satellites in the orbit in 2014.

The country’s space agency also tested the atmospheric re-entry of a crew module towards realizing its ambition to send humans into space.

At the start of the year, ISRO launched GSLV-D5 through use of indigenous cryogenic technology and injected GSAT-14 communication satellite into the intended orbit, announcing India’s entry into the heavy satellite launch market.

Launching a GSLV with an indigenous cryogenic engine has been a major challenge for ISRO since 2001 after multiple unsuccessful attempts.

Only two of a total of seven attempts succeeded, four were a failure and another partial success. In April, it successfully launched its IRNSS 1B, its second navigational satellite, onboard PSLV-C24 from Sriharikota.

IRNSS-1B, the second of the seven satellites planned under the Indian Regional Navigation Satellite System (IRNSS). In June, ISRO launched five foreign satellites for four countries on board PSLV-C23 rocket which placed them in orbit, an achievement described by Prime Minister Narendra Modi as an ‘endorsement’ of the country’s space capabilities.

Besides its primary payload of 714 kg French Earth Observation Satellite SPOT-7, the rocket carried and placed in orbit 14 kg AISAT of Germany, NLS7.1 (CAN-X4) and NLS7.2 (CAN-X5) of Canada, each weighing 15 kg, and the 7 kg VELOX-1 of Singapore.

India Unlikely To Impose Gold Restrictions In 2015

Indian government is unlikely to bring any more restrictions on gold imports in 2015 as imports dropped sharply in December despite easing of some curbs by RBI.

In the first fortnight of December, the gold imports have fallen to about 25 tones, from 150 tons during entire November. In December 2013, gold imports stood at around 30 tones.

On November 28, RBI abolished the controversial ’80:20′ gold import scheme, which was put in place in August last year to curb high gold inflows as it was felt that rising imports of the precious metal were contributing significantly to the widening current account deficit.

Under the scheme, at least 20 per cent of the imported gold had to be mandatorily exported before bringing in new lots. This scheme was relaxed for certain entities earlier this year, but this led to concerns that undue benefits were accruing a select few.

While there have been demands from certain quarters to put some fresh restrictions on gold imports, the government is of the view that the inbound shipments have come under control and the earlier prevalent anomalies have been addressed by scrapping of the 80:20 rule, sources said.

It was also suggested recently that the entities that imported gold prior to the scrapping of the scheme should not be subject to the restrictive provisions.

AirAsia Faces First Crisis on Flight Disappearance

AirAsia, one of the low cost airliners of the world is facing its biggest ever challenge after one of its flight, Airbus 320-200 with 162 people on board went missing during a flight from the Indonesian city of Surabaya to Singapore on Dec 28.

According to Indonesia's National Search and Rescue Agency, the Airbus with 162 people on board is likely at the bottom of the sea after a possible engine failure or accident.

AirAsia was built up from two planes in 2001 to an airline industry titan that operates more than 180 jets in just over a decade but now faces its biggest ever challenge.

Indonesia AirAsia is 49 percent owned by Malaysia-based AirAsia Bhd with local investors holding the rest.

The AirAsia group of airlines has had a virtually unblemished safety record until Dec 28 compared with competitors like Malaysia Airlines and Indonesian carriers such as Lion Air and Garuda Indonesia which have lost several planes in crashes over the last decade.

The AirAsia group, which includes affiliates in Thailand, the Philippines and India, has become a major competitor to regional carriers such as Malaysia Airline , Singapore Airlines and Qantas.

With 475 aircraft ordered or delivered, AirAsia has emerged as the biggest Asian customer of Airbus. The orders have been so large they have earned a footnote in the world's largest trade dispute between Airbus and Boeing over mutual accusations of illegal subsidies.

Instagram Now Worth $35 Billion

Social network firm Instagram’s  valuation now worth $35 billion as Citigroup raised the valuation of the photo and video sharing network from $19 billion to right on the heels of Instagram announcing that it now has 300 million monthly active users.

The photo-sharing network recently announced it had surpassed 300 million active users, and has taken steps toward cleaning up spam accounts, as well as adding new filters and features in an update this week. By comparison, Twitter has 284 million monthly active users, and after going public, its market cap is $23 billion.

Instagram was acquired by Facebook back in April of 2012 for $1 billion. The acquisition came at a time when Instagram only had around 27 million users on iOS. However, the company saw over a million downloads n the first day of launching on Android, and Facebook put the pedal to the metal and closed the deal.

Railways to Shift Energy Portfolio to Green Energy

Indian Railways, one of the world’s largest railway systems, has decided to diversify its energy portfolio and align with new India Government's policy of using green energy.

Inaugurating a 30 kilowatt solar power plant at the Rail Bhawan in New Delhi, Railways Minister Suresh Prabhu said "The entire thrust of government of India's policy is to move towards green energy, which will bring in energy security and ecological security. With this as priority and railway being the largest consumer, railway has decided to diversify its energy portfolio to ensure that we contribute towards using green energy and reduce the carbon footprint. We have decided to generate as much renewable energy as possible".

"India is blessed with 300 days of sunshine in about 90 percent of the areas of the country. That being the case we should use more green energy like solar energy, wind energy and so on," he added.