Political and Social Issues

Recent Supreme Court order has in effect allowed Department of Telecom to collect licence fee from the operators on revenues earned from non-telecom activities.
TRAI and the (Telecom Dispute Settlement Appellate) Tribunal had no jurisdiction to decide on the validity of the definition of Adjusted Gross Revenue (AGR) in the licence agreement and to exclude certain items of revenue which were included in the definition of AGR in the licence agreement between the licensor and the licensee
At present, operators pay between 6 and 10 per cent of their annual revenues as licence fee to the Government.
According to the DoT regulation, revenues earned by the operators from activities such as handset sales, interest earned from bank deposits, sale of assets and other corporate receipts are also included in the amount on which the revenue share is calculated. The telecom industry protested against the DoT policy and filed a petition with TDSAT.

The Cabinet Committee on Economic Affairs (CCEA) is likely to take a call on the price policy for Rabi crops, including wheat, during the 2011-12 season. The crops will be marketed in 2012-13.
The price policy, better known as the Minimum Support Price (MSP), is based on the recommendations of the Commission for Agricultural Cost and Prices.
The Union Cabinet is also expected to consider the recommendation of the wage board for working and non-working journalists
The Cabinet is likely to discuss the new Companies Bill, which will replace the Companies Act 1956.
The road has also been cleared for the Cabinet to take a decision on the Justice G.R. Majithia wage board recommendations for journalists and non-journalists
At present, wages comprise 10-14 per cent of total operational costs.

Commerce and Industry Ministry has reportedly circulated a draft Cabinet note for inter-ministerial consultations recommending allowing foreign airlines to pick up stake in domestic carriers with a 26 per cent foreign direct investment (FDI) cap.
The proposal could come as a major breather to some of the airlines such as Vijay Mallya-led Kingfisher airlines, which are cash strapped and struggling for survival. However, domestic players, including Jet Airways, are opposing any kind of FDI in the aviation sector.
foreign players are least interested in to invest in an Indian entity with a 24 per cent equity cap suggested by the Aviation Ministry. For foreign players, such a low stake will not be acceptable as it would not give a right to block a special resolution in a company. Any equity holding greater than 25 per cent gives a right to block a special resolution.
Major players in the domestic sector feel that fledgling Indian carriers would be susceptible to hostile takeovers if enhanced FDI is allowed.
Those opposing entry of foreign carriers feel that these airlines, with deep pockets, could play havoc with the domestic market. They could also artificially lower the price of air travel to kill domestic competition.
The U.S. limits the amount of foreign ownership in its domestic airlines to a maximum of 25 per cent.

The proposed National Manufacturing Policy, after having got the nod from the Group of Ministers (GoM) headed by Agriculture Minister Sharad Pawar, will come up for consideration and approval before the Union Cabinet
The new policy aims at developing mega industrial zones with the world-class infrastructure and flexibility in labour and environment laws.