Daily News - Monday, 30 September 2024
₹ steady against $ in CY24, weakens vs euro, pound (Business Standard)
In 2024, the Indian rupee has remained stable against the US dollar, depreciating just 0.59%, while it weakened more significantly against the euro (1.6%) and the pound (5.6%) due to both currencies strengthening against the dollar. The depreciation of the US dollar, driven by the Federal Reserve's rate cuts, has brought the dollar index down to around 100, with the Reserve Bank of India's timely interventions preventing further rupee volatility against the dollar. However, the RBI's focus on stabilizing the rupee-dollar exchange rate, due to India's trade and reserves being dollar-denominated, explains the limited interventions in the euro and pound markets.
Centre may ease public sourcing for some sectors (Business Standard)
The Indian government is working to liberalize public procurement rules to promote new and innovative products, aligning with the Make in India initiative. Proposed changes include relaxing prior experience requirements for manufacturers producing goods locally for the first time, with eligibility based on laboratory testing. Investments in the 14 sectors under the production-linked incentive (PLI) scheme are projected to reach ₹2 trillion by next year, driving significant job creation, exports, and growth, with the government facilitating approvals and market access for these industries.
REC to fund nuclear power projects in energy switch (mint)
REC Ltd plans to invest ₹1 trillion annually in green energy through 2030, with a total target of ₹6 trillion, and is open to financing nuclear projects as part of India's energy transition. The company is also exploring financing cross-border transmission projects, like the India-Sri Lanka grid, as regional interconnections gain momentum. REC aims to grow its renewable energy loan book to ₹3 trillion by 2030, while maintaining a balanced borrowing strategy, combining domestic corporate bonds, term loans, and capital gain-saving 54EC bonds.
Export Remission Scheme to Continue Beyond Sept (The Economic Times)
Amid a slowdown in India's goods exports, the government has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme beyond its original September 30 deadline, with a review scheduled for December. The scheme refunds various taxes and duties not covered by other programs like GST, with current benefit rates ranging from 0.3% to 4.3%, and a budget allocation of ₹16,575 crore for 2024-25. Meanwhile, discussions are ongoing between the commerce and finance ministries regarding the extension of the interest equalization scheme on export credit, which is crucial for exporters facing global economic challenges.
Refund Provision Likely to be Removed Under ELI Schemes (The Economic Times)
The government is considering simplifying its employment-linked incentive schemes by removing the refund provision that requires employers to return subsidies if an employee quits within a year, potentially discontinuing the incentive instead. The labor ministry is consulting stakeholders to finalize three schemes, including subsidies for new hires and EPFO contributions, aimed at boosting first-time employment and bulk hiring in the manufacturing sector. These initiatives are part of a broader government plan to create jobs and skill development opportunities for 41 million youths over five years, with a budget of ₹2 lakh crore.
