Daily News - Tuesday, 3 December 2024

Climate change was not caused by us, Goyal tells summit (mint)

At the 29th CII Partnership Summit in New Delhi, Union Commerce Minister Piyush Goyal emphasized the “polluter pays” principle, advocating for equitable responsibilities in sustainable development, with greater accountability for developed nations that historically contributed to environmental damage. Goyal highlighted that developing and less-developed countries, particularly in the Global South, were not primary contributors to environmental degradation and should not bear a disproportionate burden, especially with measures like the EU’s carbon tax on imports. Stressing shared but differentiated responsibilities, he called for collective action on sustainability, stable policies, and improved supply chains to address global environmental challenges. 

Govt scraps windfall tax on local crude sales, ATF export (mint)
•⁠ ⁠The Union government has officially scrapped the windfall tax on domestic crude oil and exports of aviation turbine fuel (ATF), petrol, and diesel, citing its redundancy due to softening global crude oil prices, which have remained in the $70-75 per barrel range. The windfall tax, introduced in 2022 to curb excess profits during a surge in oil prices, had already been reduced to nil on domestic crude since September 2024 and on petroleum products since February 2024, reflecting weak global demand, particularly from China. Analysts, including ICRA, predict the move will have minimal impact on oil companies, as muted crack spreads and a tepid global oil market outlook signal a deceleration in crude demand growth. 

⁠India has contributed $2 billion to BRICS Bank: Finance Ministry (The Indian Express)

⁠India has contributed $2 billion to the BRICS New Development Bank (NDB) across seven instalments (2015-2022) and is implementing 20 ongoing projects worth $4.867 billion in areas such as transportation, water conservation, and rural connectivity. In response to concerns about a potential joint BRICS currency, Minister of State for Finance Pankaj Chaudhary clarified that BRICS does not aim to replace the US dollar but seeks to improve the global financial system by promoting alternative mechanisms to enhance market efficiency. A Russian-led BRICS report emphasized the inefficiencies of the current cross-border payment infrastructure and highlighted the need for diversified, competitive systems beyond centralized settlement mechanisms. 

ONGC looks at foray into offshore mining (Financial Express)

State-owned ONGC is exploring offshore mineral mining opportunities, leveraging its expertise in subsurface and offshore drilling, as India aims to boost domestic production of critical minerals like lithium, copper, and rare earth elements to meet its net-zero targets by 2070. Although ONGC is not participating in the first tranche of offshore mineral auctions (13 blocks), it plans to pursue future opportunities and collaborate with the government to develop a holistic approach to mining critical minerals. ONGC is also expanding its renewable energy portfolio and, through its subsidiary ONGC Videsh, has signed an MoU with UAE’s International Resources Holding to strengthen the global supply chain for critical minerals, aligning with India’s expected eightfold increase in lithium demand and the government’s upcoming Critical Mineral Mission.

Customs duty overhaul likely in FY26 Budget (Financial Express)

The government is planning a significant overhaul of basic customs duties on over 100 items in the FY26 Budget to address the inverted duty structure, which imposes higher taxes on raw materials than on finished products. Key sectors, including IT hardware, textiles, automobile parts, and electronics, are expected to benefit, with recommendations suggesting raw material duties be reduced to 0-2.5%, intermediates to 2.5-5%, and finished goods to 7.5-10%, aligning with industry feedback and global trade dynamics. This reform, aimed at boosting domestic manufacturing and reducing import dependency, could enhance India’s competitiveness, particularly in critical sectors like steel, solar batteries, and polymers, as India targets $500 billion in electronics output by 2030 from the current $100 billion.