สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 7 สิงหาคม 2556

Govt panel to suggest steps to tighten auto testing norms
A panel constituted by the government to probe the recall of Tavera by General Motors is set to evaluate the conformity-of-production (CoP) processes followed by testing agencies and automobile companies and recommend measures to tighten those. "The panel will look into the GM recall to ascertain how the lapse (in testing procedures) had taken place. It will also suggest measures to strengthen CoP requirements," said a senior government official.

In one of the largest vehicle recalls in India, General Motors India had on Wednesday announced it was recalling 1,14,000 units of its multi-purpose vehicle, Chevrolet Tavera, manufactured between 2005 and 2013.

To probe the matter, the Department of Heavy Industry, along with the Ministry of Road Transport and Highways, had constituted a committee headed by Nitin Gokarn, chief executive officer, National Automotive Testing and R&D Infrastructure Project (Natrip). The three-member committee might also examine the former leadership of General Motors India to ascertain what led to executives in the company flouting regulations and re-fitting pre-approved engines on new Tavera models sent for inspection. In a letter to authorities on July 18, the company had admitted an internal probe revealed that to meet emission norms, executives had tinkered with the weight of the BS-III and BS-IV variants of the Tavera sent for testing.

(Source: Business Standard)

Bihar plans to invest Rs. 2,000-cr on power infrastructure
Bihar Government under the leadership of Nitish Kumar has decided to put major emphasis on renovation of the rackety power infrastructure in the state. It has sanctioned more than Rs. 2,000 crore for this purpose in the current fiscal.

The money would come from various centrally sponsored schemes such as Backward Region Grant Fund (BRGF), Rajeev Gandhi Grameen Vidyutikaran Yojna (RGGVY) and Accelerated Power Development and Reforms Programme (APDRP) along with funding from various other multilateral organizations and state's own plans.

Apart from that, the state government has also planned to spend Rs. 150 crore on generation, according to the first supplementary budget of the state government. The budget document also reveals that the South Bihar Power Distribution Company Ltd. will be the major beneficiary in this planning, as it is set to receive more than Rs. 800 crore in current fiscal. The money will be spent in strengthening the distribution network in southern part of the power deprived state. The North Bihar Power Distribution Company Ltd has also been allotted more than Rs. 500 crore in the current fiscal. Meanwhile, the state government has also allotted Rs. 500 crore for improving transmission lines, which are no longer sufficient to meet the power requirement

(Source: Business Standard)

Self-declaration of info allowed for double
The Central Board of Direct Taxes (CBDT) has notified a set of information requirements that could be declared by foreign investors in a specified form for availing treaty benefits. It is said that foreign investors are allowed the flexibility to make self-declaration of information that their home countries do not certify for seeking benefits under double tax-avoidance agreements with India.

In the 2002 Finance Act, the government had insisted that investors furnish a tax-residency certificate (TRC) from their home country governments containing all the information that India wants. This requirement, however, was eased early this year, making it sufficient to give the TRC in the format issued by various governments. India also made it clear that any further details it wants can be furnished by the investor separately.

As per CBDT's notification on Tuesday, the status of a foreign investor as an individual or as an incorporated entity, a tax identification number or any other identification number, nationality or place of incorporation and duration of tax residence could be declared by the investor if these are not part of the TRC issued by the investor's home country. The investor shall keep and maintain such documents as are necessary to substantiate the information given as self-declaration, the notification also said.

(Source: the Financial Express)

IFAD to provide livelihood opportunity to Uttarakhan Villagers
The International Fund for Agricultural Development will provide livelihood opportunities to villagers of calamity-hit Uttarakhand at an expenditure of Rs. 700 crore.

The funds will be provided under the Integrated Livelihood Support project. In the first phase, Rs. 20 crore has been sanctioned, Chief Secretary Subhash Kumar said here today. This will help in purchase of livestock, purchase of mules and milk animals, as well as seeds according to the requirement of the season, he said.

The objective of this project is to improve the conditions of the economically weaker sections in the hill areas, he said. The project will be first started in nine hill districts and 38 blocks. It was decided that the preparations for the project would conclude by September. Providing support to 93,000 households has been targeted. Planning is also being done to increase the income of villages through dairy, production of crops, vegetables, spices, fruits, poultry, as well as tourism activities.

(Source: the Economic Times)

Centre mulls annuity model
The government is planning to award infrastructure projects on an annuity basis to hasten these, with an eye on limiting its fiscal deficit. This will also help meet the target of spending $1 trillion between 2012-13 and 2016-17 in infrastructure development.

The main advantage with annuity-based public-private-partnership (PPP) model is that the question of making the payments would come up only after a particular project is completed. The payment can be spread over a period of 20 years or so, according to official sources. In addition, an official said that the Centre is planning to implement the same model in an effort to push the National Manufacturing Policy. This can be done in any sector. This is a big idea that is emerging. The government is trying to find out smarter ways for creating more demand for the domestic industry. In terms of environmental clearances, all public sector projects are cleared now. He said that they are now pushing for private sector clearances to fast-track the pending projects.

In fact, the idea was mooted by the National Manufacturing Competitiveness Council (NMCC) in a meeting on manufacturing chaired by Prime Minister Manmohan Singh on July 4. It was subsequently discussed when the PM convened the trade and industry council meeting on July 29, as an effective mechanism to revive growth.

Fiscal deficit stood 4.9 per cent of the gross domestic product in FY13. The target for this financial year is 4.8 per cent.

(Source: Business Standard)

Economic Section
Royal Thai Embassy