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NRIs can hedge currency risks with banks
- The NGOs (non-Government organisations) engaged in microfinance activities have been permitted to avail themselves of ECBs designated in Indian rupee under the automatic route from overseas organisations and individuals as per the ECB guidelines.
Centre plans to borrow Rs.40,000 cr more now
- The Central Government is looking at borrowing around Rs.40,000 crore more to make up for the shortfall in revenue receipts and poor disinvestment realisation in the current fiscal.
- If approved, it would be the second additional borrowing.
- As per the revised target, gross market borrowing for the current fiscal is pegged at Rs.4.70 lakh crore
- The government was finding it difficult to meet the direct tax target due to industrial slowdown
- Besides, slowdown in the economic activities due to domestic and global factors, the government's subsidy bill on petroleum and fertilizers is likely to increase further.
No drawback benefit for non-mega power projects
- The government, to prevent misuse of benefits, has abolished the deemed export drawback benefit available for equipment supplier for setting up of non-mega power projects (1,000 MW or less).
- Henceforth, the deemed export drawback benefits will only be available for mega power projects of the capacity of 1,000 MW or more.
- Deemed exports refer to those transactions in which goods supplied do not leave the country and payment for such supplies is received either in Indian rupees or in free foreign exchange.
- “The decision will increase the cost of non-mega power projects, though the withdrawal of the benefit was aimed at preventing misuse of the provision by unscrupulous elements,” Federation of Indian Export Organisations (FIEO)
- Goods imported for setting up mega power projects enjoy full customs duty exemption, whereas goods imported for setting up non-mega power projects attract 5 per cent basic customs duty and additional duty of customs.
