สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 8 พฤษภาคม 2555
Path clear for foreign bank subsidiaries
Foreign banks in India seeking to convert their local operations into subsidiaries will not be required to pay taxes on the assets transferred to the new entities, finance minister Pranab Mukherjee said in Parliament on Monday.
The RBI favours operating foreign banks to expand by opening wholly owned local units rather than opening branches, to shield them from liquidity shocks and capital constraints in their home markets.
However, foreign banks operating in India have cited high stamp duty and capital gains tax as a hindrance to floating local subsidiaries.
Existing laws require overseas lenders to pay up to 30 % of the market value of their assets as capital gains and stamp duty while converting branches to a new entity.
(Source: Livemint, Economic Times, Times of India, Business Standard)
Assam to create 2, 00,000 skilled manpower needed to meet industry demand
Faced with the acute shortage of skilled manpower in the state, required by the industry, Assam government has decided to provide vocational and skill training to at least 2, 00,000 youths by the end of 12th five year plan.
The state government has decided to set up vocational training centres in each development block of the state. This year at least four such training centres, one each in Tinsukia, Karimganj, Dhubri and Nagaon districts, will be set up, said Assam’s industry minister Pradyut Bordoloi. He said another 23 such centres will be set up in rest of the development blocks in the next fiscal.
The upcoming Brahmaputra Cracker and Polymer Ltd (BCPL) in Dibrugarh district in Upper Assam, also known Assam Gas Cracker Project, is presently facing shortage skilled manpower, resulting in delays in commissioning.
(Source: Hindu Business Line, Indianews24, Business Standard)
FICCI calls for privatisation of Coal India
The Federation of Indian Chambers of Commerce and Industry (FICCI) president RV Kanoria calls for privatisation of Coal India Limited (CIL), the world’s largest coal producer and India’s public sector unit. To reduce the threat of current energy crisis in India, CIL needs to have a comprehensive policy framework for the energy sector, he said.
Power generation is afflicted by an uncertain fuel supply situation, both in terms of availability and quality, rising prices of coal and monopolistic behaviour of Coal India Limited (CIL).
Ficci has approached the government to come up with a comprehensive power policy to ensure reducing the power crisis situation in the country. Some recommendations include setting up of coal regulator and redistribution of coal linkages to decrease cost of logistics.
(Source: the Hindu, Hindu Business Line, Economic Times, Times of India, Business Standard)
Finance Minister Pranab Mukherjee defers GAAR by a year, soothes investors
Finance Minister Pranab Mukherjee rolled back a slew of measures that had riled investors and consumers but appeared to defy intense international pressure by sticking to his guns on a retrospective change in law allowing the government to tax overseas deals, which many feel, is primarily targeted at Vodafone.
Mukherjee, cheered markets when he announced that rules aimed at deterring tax avoidance - known as the General Anti-Avoidance Rules (GAAR) - would be implemented from April 1, 2013, in his speech opening the debate on Finance Bill, 2012, in the Lok Sabha.
Mukherjee said the burden of proving tax evasion would lie with the authorities rather than with overseas investors, and added that a government panel would come up with recommendations on the implementation of GAAR provisions by the end of the month.
(Source: Hindu Business Line, Economic Times, Indian Express, Reuters India)
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