Daily News - Friday, 28 March 2025

Duty cuts a continuous process, not linked to global scenario: FM (mint)

⁠India has been steadily reducing basic customs duties to boost self-reliance and industrial growth, with Finance Minister Nirmala Sitharaman clarifying that these reductions are part of a long-term strategy rather than a response to US tariff measures; the rationalization process has brought down customs tariff rates from 21 to 8, while exemptions have been extended to 35 capital goods for EV battery production and 28 for mobile phone batteries, along with critical minerals like cobalt powder, lithium-ion battery scrap, and lead. The government has also streamlined taxation by ensuring that either a cess or a surcharge applies to a product, not both, while exempting the social welfare surcharge on 82 tariff lines already subject to cess, reinforcing India’s ambition to become a global manufacturing hub, especially in battery and mobile phone production. Sitharaman reiterated that these measures, implemented consistently since 2023, are independent of global trade disputes and will continue in future budgets to enhance India’s manufacturing and technological capacities.

Govt upgrading its vaccine storage infrastructure to aid other countries (mint)

⁠India is expanding the National Cold Chain and Vaccine Management Resource Centre (NCCVMRC) into an International Centre for Excellence in Immunization and Supply Chain, aiming to strengthen global vaccine logistics by providing technical support to developing nations, especially in South-East Asia and Africa, through capacity building, research, and IT-driven cold chain management; with over 30,400 vaccine storage points and ₹3,137.82 crore spent on vaccine procurement in 2024, India’s immunization programme, targeting 29 million pregnant women and 26 million newborns annually, is among the world’s largest. This initiative leverages India’s expertise in immunization logistics to enhance vaccine potency, reduce infant mortality, and improve vaccine management in partner countries, reinforcing India’s soft power through health diplomacy. By integrating smart technology and management information systems, India aims to position itself as a global leader in immunization supply chain excellence, ensuring effective vaccine distribution even in remote regions.

Govt plans to raise ₹8 tn from market in Apr-Sep (mint)

The Centre plans to raise ₹8 trillion through dated securities in the first half of FY26 (April-September 2025), constituting 54% of the annual borrowing target, including ₹10,000 crore via Sovereign Green Bonds (SGrBs), through 26 weekly auctions covering maturities from 3 to 50 years, with the highest allocation to 10-year securities (26.2%). The borrowing mix includes allocations of 5.3% for 3-year, 11.3% for 5-year, 8.2% for 7-year, 14% each for 15-year and 40-year, and 10.5% each for 30-year and 50-year securities, while the government retains the right to use the greenshoe option to raise an additional ₹2,000 crore per auction. Additionally, the government will conduct security switching and buybacks to manage debt redemption, ensuring a smooth borrowing and repayment structure. 

⁠Centre puts 28 coal mines on the block (Financial Express)

⁠The Ministry of Coal has launched the 12th round of commercial mine auctions, offering 28 mines, including two lignite reserves, with 13 fully explored and 12 partially explored mines, aiming to boost domestic coal production and reduce imports; the 11th round in December 2024 successfully auctioned 12 mines, achieving a record-high average revenue share of 36.27%. The 12 auctioned mines hold geological reserves of 5,759.23 million tonnes and a peak rated capacity of 15.46 MTPA (excluding partially explored mines), with commercial coal mining since 2020 having auctioned 125 mines with a combined production capacity of 273.06 MTPA, expected to generate ₹38,767 crore in annual revenue and attract ₹40,960 crore in investments. Coal production from commercial mines has surged to 22.35 million tonnes in FY25, marking a 78.14% increase from 12.55 MT in FY24, as the government continues to work with state authorities to streamline approvals for mine operators.

⁠Restaurant Services in Hotels with Tariff over ₹7.5k per Day to Attract 18% GST from April (Financial Express)

The CBIC has clarified that hotels opting for ‘specified premises’ classification—where room tariffs did not exceed ₹7,500 in the previous fiscal year—will have their restaurant services taxed at 18% GST with input tax credit (ITC), while standalone restaurants outside such premises will be taxed at 5% GST without ITC, effective April 1. This decision, taken at the 55th GST Council meeting, eliminates the need for annual filings, allowing hotels to voluntarily declare their classification, with separate declarations required for each premises. The move resolves a long-standing dispute in the hospitality sector and ensures GST rates on restaurant services in hotels are aligned with accommodation pricing, providing greater clarity for businesses.