Model Text for the Indian Bilateral Investment Treaty
Model Text for the Indian
Bilateral Investment Treaty
The
Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its
approval for the revised Model Text for the Indian Bilateral Investment Treaty.
The revised Indian model text for Bilateral Investment Treaty (BIT) will
replace the existing Indian Model BIT. The revised model BIT will be used
for re-negotiation of existing BITs and negotiation of future BITs and
investment chapters in Comprehensive Economic Cooperation Agreements (CECAs)/
Comprehensive Economic Partnership Agreements (CEPAs) / Free Trade Agreements
(FTAs).
The
new Indian Model BIT text will provide appropriate protection to foreign
investors in India and Indian investors in the foreign country, in the light of
relevant international precedents and practices, while maintaining a balance
between the investor's rights and the Government obligations.
A BIT
increases the comfort level and boosts the confidence of investors by assuring
a level playing field and non-discrimination in all matters while providing for
an independent forum for dispute settlement by arbitration. In turn, BITs help
project India as a preferred foreign direct investment (FDI) destination as
well as protect outbound Indian FDI.
The
essential features of the model BIT include an "enterprise" based
definition of investment, non-discriminatory treatment through due process,
national treatment, protections against expropriation, a refined Investor State
Dispute Settlement (ISDS) provision requiring investors to exhaust local
remedies before commencing international arbitration, and limiting the power of
the tribunal to awarding monetary compensation alone. The model excludes
matters such as government procurement, taxation, subsidies, compulsory
licenses and national security to preserve the regulatory authority for the
Government.
Background
The
first BIT was signed by India on March 14, 1994. Since then, till date, the
Government of India has signed BITs with 83 countries. These BITs were largely
negotiated on the basis of the Indian Model BIT of 1993.
Considerable
socio-economic changes have taken place since 1993 when the Model text of BIT
was first approved. The nature of government regulation concerning foreign
investment has evolved. A wide variety of laws now regulate investments both at
the central and the state levels. During the last few years, significant
changes have occurred globally regarding BITs, in general, and investor-state
dispute resolution mechanism in particular.
***
Year End Review: Highlights of
the Acheivements of the Department of Economic Affairs, Ministry of Finance
During the current fiscal,
Department of Economic Affairs (DEA), Ministry of Finance has undertaken
various initiatives for enhancing the Economic Growth and ensuring the Fiscal
Stability of the economy.
The major highlights of
the achievements of the Department are as follows:
INFLATION
Wholesale Price Index (WPI): WPI inflation has declined
from 6.0 per cent in 2013-14 to 2.0 per cent in 2014-15 and -3.5 per cent
during April to October 2015. WPI has been negative since November 2014
and is placed at -3.8 per cent in October 2015. WPI Food inflation has also
shown steady decline from 6.0 per cent in January 2015 to 1.7 per cent in
October 2015. Inflation in Fuel & power stood at -16.3 per cent in
October 2015 compared to -17.7 per cent in the previous month and -11.0 in
January 2015. Inflation for Manufactured products decreased to -1.7 per cent in
October 2015 as compared to 1.0 per cent in January 2015.
Consumer Price
Indices (CPIs): CPI-New Series
inflation for 2014-15 declined to 5.9 per cent from 9.5 per cent in 2013-14,
has remained below 5.5 per cent since January 2015. During 2015-16 (Apr-Oct),
average CPI inflation was 4.7 percent and stood at 5.0 per cent in October
2015. Inflation in terms of Consumer Food Price Index (CFPI) has come down to
5.2 per cent in October 2015 from a high of 6.9 per cent as reported in
February 2015.
Inflation based on CPI-Industrial Workers for September
2015 stood at 5.1 per cent as compared to 7.2 reported in January 2015.
Inflation based on CPI-Agricultural Labour and CPI-Rural Labour
declined to 3.5 per cent and 3.7 per cent respectively in September 2015 as
compared to 6.2 per cent and 6.5 per cent in January 2015.
Measures taken to control inflation
The
measures taken by the Government along with decline in global oil and commodity
prices have contributed towards achieving low inflation. The measures taken by Government
include, advising states to allow free movement of fruits and vegetables by
delisting them from the APMC Act, banning of export of all pulses (except
kabuli channa and organic pulses and lentils upto certain quantity), zero
import duty on pulses and onion, empowering States/UTs
to impose stock limits in respect of onion, pulses, edible oil, and edible
oilseeds under the Essential Commodities Act, modest
increase in minimum support prices in last two years etc. The vigilant monetary
policy stance by the RBI and adoption of a Monetary Policy Framework agreement
between Government and RBI has also led to moderation in inflation by bringing
in an element of certainty of action by the RBI.
MONETARY POLICY
During 2015,
policy (Repo) rate has been cut by 125 basis points, signalling a period of
easing of monetary policy. Taking into account the continuous decline in
inflation and with a view to spur growth, the last cut in the policy rates by
50 basis points to 6.75 percent was undertaken by the RBI on September 29,
2015.Overall, the RBI stance continues to be accommodative.
Government of
India and RBI have signed a Monetary Policy Framework agreement in February
2015. The objective of this framework is to primarily maintain price stability,
while keeping in mind the objective of growth. As per the agreement, RBI would
set the policy interest rates and would aim to bring inflation below 6 percent
by January 2016 and within a band of 4 percent with (+/-) 2 percent for 2016-17
and all subsequent years. The agreement has brought in an element of certainty
for the market with regard to action by the RBI in managing inflation.
BANKING
Permission has been accorded by RBI for setting up Payment Banks
and Small Finance Banks to improve financial inclusion. RBI has accorded in
principle approval to 11entities to form Payment Banks in August 2015 to 10
entities to form ‘Small Finance Banks’ in September 2015. The minimum paid-up
equity capital for Payments Banks shall be Rs. 100 crore, of which the
promoter’s contribution would be minimum 40 percent of paid-up equity capital
for the first 5 years of commencement of the business.
· For recapitalizing the public sector banks,
Government has already provided adequate funds in this financial year. An
amount of Rs.12,000 crore has already been provided n the Supplementary Demand
passed by the Parliament, in addition to Rs.7,940 crores already provided in
the budget of FY 2015-16.
· Government announced Mission Indradhanush in August 2015, which attempts to revamp public sector banks and
to address problems impacting their performance including governance,
accountability and capitalization. This includes:
v A seven-member Bank Board
Bureau, which will oversee the appointments process at public sector banks and
provide advisory services.
v On the basis of best global
practices, to separate the post of Chairman and Managing Director by
prescribing that in the subsequent vacancies, CEO will get the designation of
MD & CEO and there would be another person who would be appointed as
non-Executive Chairman of PSBs.
v Government proposes to make
available Rs.70,000 crores out of budgetary allocations for bank capitalization
in the next four years.
v De-stressing public sector
banks by strengthening risk control measures and NPA disclosures.
v No interference from
Government and Banks are encouraged to take their decision independently
keeping the commercial interest of the organisation in mind.
v New framework for measuring
performance of public sector banks.
v Continuing with the governance
reforms.
FINANCIAL SECTOR
· Approval accorded
for setting up of the proposed Rs 20,000-crore National Investment and
Infrastructure Fund (NIIF).
· Approval given for foreign
investment in the Alternative Investment Funds (AIF). Foreign investment will
now be permitted in AIFs, which are set up as registered trust, incorporated
company or limited liability partnership.
· With the objective of having a
more predictable regime for investment by the foreign portfolio investors
(FPI), RBI has set out the medium term framework (MTF) for FPI limits in debt
securities. The limits for FPI investment in debt securities will
henceforth be announced/ fixed in rupee terms. The limits for FPI investment in
the central government securities will be increased in phases to 5 per cent of
the outstanding stock by March 2018. In aggregate terms, this is expected to
open up room for additional investment of ₹1,200 billion in the limit for
central government securities by March 2018 over and above the existing limit
of ₹1,535 billion for all government securities (G-sec).Additionally, there
will be a separate limit for investment by FPIs in the State Development Loans
(SDLs), to be increased in phases to reach 2 per cent of the outstanding stock
by March 2018. This would amount to an additional limit of about ₹500 billion by
March 2018.
· Forward Market Commission
(FMC) was merged with Securities Exchange Board of India (SEBI) on September
28, 2015 with a view to strengthen the regulation of commodity forward markets.
TAX-FREE BONDS
Government of India has
allowed the issuance of Tax-free bonds of Rs 40000 crore during the Financial
Year 2015-16, by Central Public Sector Enterprise (CPSE) such as National
Highways Authority of India (NHAI), Indian Railways Finance Corporation (IRFC),
Housing and Urban Development Corporation (HUDCO), Indian Renewable Energy
Development Agency (IREDA), Power Finance Corporation Limited (PFC), Rural
Electrification Corporation Limited (REC), National Thermal Power Corporation
Limited (NTPC).The following categories of investors can subscribe to these
Bonds:
Retail Individual Investors
(RIIs),Qualified Institutional Buyers (QIBs),Corporates (including statutory
corporations), trusts, partnership firms, Limited Liability Partnerships,
co-operative banks, regional rural Banks and other legal entities, subject to compliance
with their respective Acts, and High Networth Individuals (HNIs).These Bonds
are issued for ten (10) or fifteen (15) or twenty (20) years. Further details
of terms & conditions of Tax Free Bonds for the FY 2015-16 can be
accessible at:
THE 11TH INDIA- SAUDI ARABIA JOINT
COMMISSION
The 11th India-
Saudi Arabia Joint Commission Meeting (JCM) was held during 26-28th May,
2015 at New Delhi. A wide range of issues, including cooperation in trade and
commerce, higher education, health, communication, culture and IT were
discussed. Both sides also acknowledged the need to explore investment
opportunities in both countries.
ENABLING ENVIRONMENT FOR
PUBLIC PRIVATE PARTNERSHIPS (PPPS)
IN INDIA
Initiatives by Government of
India for promoting PPPs: Government of India (GoI) has been placing strong
emphasis on the use of Public Private Partnerships (PPPs) as a strategy for
expanding the provision of infrastructure services. Several initiatives have
been taken to create an enabling framework for PPPs:
Ø The appraisal mechanism for
the PPP projects has been streamlined to ensure speedy appraisal of projects,
eliminate delays, adopt international best practices and have uniformity in
appraisal mechanism and guidelines.
Ø The Public
Private Partnership Appraisal Committee (PPPAC) set up for the
appraisal of PPP projects posed by Central Line Ministries and Departments has
so far in 2015 approved 13 central projects proposal with TPC of
Rs.21817.03crore (USD 3636.17 million).
Ø The Government had created a Viability
Gap Funding Scheme for PPP projects. Infrastructure projects are
often not commercially viable on account of having substantial sunk investment
and low returns. However, they continue to be economically essential.
Accordingly, the Viability Gap Funding Scheme has been formulated which
provides financial support in the form of grants, one time or deferred, to
infrastructure projects undertaken through public private partnerships with a
view to make them commercially viable. The Scheme provides total Viability Gap
Funding up to twenty percent of the total project. The Government or statutory
entity that owns the project may, if it so decides, provides additional grants
out of its budget up to further twenty percent of the total project cost. Viability
Gap Funding. During the current calendar year i.e. 2015, so far
Empowered Institution has granted in-principle approval for 5 projects with a
Total project cost of 901.00 crore (USD 150.16 million). Like-wise, EI also
granted Final Approval to 9 projects of 1119.66crore (USD 186.61 million)[1] in various sectors with VGF component of Rs. 166.7
crore (USD 27.78 million).
Ø Municipal Borrowing- Government has initiated a
pilot project for developing a framework to build capacities of Urban
Local Bodies ( ULBs) to raise financing through the Capital Markets for
financing infrastructure projects (normally PPPs). The pilot initiative aims to
develop a replicable model and related documents and demonstration of the
model through a successful pilot transaction for an ULB. Guidelines for
issuance of Municipal Bonds in India have been notified
Ø Knowledge Resources: As part of wide ranging
efforts for knowledge dissemination on PPPs, DEA has developed tool kits and
knowledge products for use of PPP practitioners. These include:
(i) Post Award Contract
Management: Department of
Economic Affairs (DEA) has developed Post-Award Contract Management Guidance
Material for Highways, Ports and Education sectors. The material is aimed at
providing guidance and support to Project Authorities, especially in ensuring
routine monitoring and also management of key risks that can emerge during the
post-award phase of the project. Further, the Manuals are accompanied by
user-friendly, interactive Online Toolkits that can be used by Project
Authorities for practical application-oriented assistance in project management
activities. The Guidance Material and the Online Toolkits will be available to
users on the Department’s website for PPPs, i.e., www.pppinindia.com.
(ii) Framework for Renegotiation of
PPP Contracts: A report on a
suggested framework for renegotiation of PPP contracts has been developed,
which focuses on changes that may need to be made in the contractual and
institutional arrangement post award of the projects. Work on the
identification of the legal clauses in the concession agreement is underway.
The well researched guidance note for Renegotiation Framework particular focus
on the National Highway and Major Port concessions. The model clauses based on
established thresholds for renegotiation are being drafted, to distinguish
quantified bid percentages and qualitative “materiality” type considerations.
FINANCIAL STABILITY AND
DEVELOPMENT COUNCIL (FSDC)
The Financial Stability and
Development Council (FSDC) under the Chairmanship of Finance Minister with
Heads of Financial Sector regulatory authorities, and Secretaries of concerned
Departments and Chief Economic Adviser (CEA) as members, monitors macro prudential
supervision of the economy including functioning of large financial
conglomerates, and addresses inter-regulatory coordination and financial sector
development issues, including issues relating to financial literacy and
financial inclusion.
From January 2015 to
November, 2015 the Council had held two meetings on May 15, 2015 and 5th November,
2015. In these meetings, important issues concerning financial stability and
development inter regulatory coordination and also challenges facing the economy
were deliberated. The major issues include external sector vulnerabilities,
focus on future financial sector reforms, Corporate Bond Market Development,
Prevention & detection of Fraud in banks & building effective
deterrence, rising bank NPAs and corporate sector balance sheet stress, and
harmonization and convergence of regulations relating to securities market
& commodity derivatives market.
The FSDC Sub-committee set-up
under the chairmanship of Governor, RBI met two times and deliberated on issues
such as Account Aggregation for Financial Assets, global and domestic
developments impinging on financial stability, Corporate Bond Market Development,
Foreign Account Tax Compliance Act (FATCA), developing a comprehensive
financial resolution regime etc. Various Technical Groups have been set-up
under FSDC Sub-Committee such as Inter Regulatory Technical Group (IRTG),
Technical Group on Financial Inclusion and Financial Literacy (TGFIL), Inter
Regulatory Forum on Financial Conglomerates (IRF-FCs) and Early Warning Group
(EWG) met during the period to discuss issues in accordance with their mandate.
FSB Peer Review of India
As a part of FSB commitment,
India has volunteered to undergo FSB peer review, for the first time, in 2015,
the Terms of Reference (TOR) for which has been finalized. The topics being
covered under the review are (i) macro prudential policy framework and (ii)
regulation and supervision of NBFCs.
ESTABLISHMENT OF NEW
DEVELOPMENT BANK (NDB)
New Development Bank has been
established by BRICS countries in Shanghai, China. The Bank will mobilize
resources for infrastructure and sustainable development projects in BRICS
countries, other emerging economies and developing countries. It will
complement the existing efforts of multilateral and regional financial
institutions. Mr. K.V. Kamath, has taken over as the first President of the
Bank. NDB is expected to make its first lending by April, 2016.
ESTABLISHMENT OF BRICS
CONTINGENT RESERVE ARRANGEMENT (CRA)
Most of the foundation work for the establishment of CRA by BRICS countries has
been completed in 2015. The Governing Council Procedural Rules and Standing
Committee Procedural Rules were approved by the Governing Council in its
inaugural meeting held on September 4, 2015. The establishment of a
self-managed contingent reserve arrangement would have a positive precautionary
effect, help BRICS countries forestall short-term liquidity pressures, provide
mutual support and further strengthen financial stability. It would also
contribute to strengthening the global financial safety net and complement
existing international arrangements as an additional line of defense.
SAARC and SDF Meetings
(i) The 7th Meeting of SAARC
Finance Ministers and Finance Secretaries were held on 19th and 20th of August,
2015. The Indian delegation for these Meetings were led by Shri Jayant Sinha,
Minister of State (Finance). Some of the major issues that were deliberated in
these meeting were currency swap arrangements among SAARC member nations,
facilitating greater flow of capital and intra-regional investment and
developments in SAARCFINANCE.
(ii) The 4th Meeting of the SDF
Governing Council was held on 20th August, 2015. The meeting mainly discussed
on the ways of strengthening SAARC Development Fund and establishing its ways
forward.
(iii) The 21st and 22nd Board
Meetings of SAARC Development Fund were held in April and August 2015
respectively.
(iv) The Union Cabinet on 18th of
November 2015 has approved the extension of the validity of the Framework on
Currency Swap Arrangement for SAARC Member Countries with amendments for two
more years up to November 2017.
INTRODUCTION OF SCHEME TO SUPPORT COMPANIES BIDDING
ABROAD
Government of India has on 16th September,
2015 approved a scheme for providing a concessional financing scheme to support
Indian companies bidding for strategically important infrastructure projects
abroad. This scheme is aligned with the ‘Make in India’ programme of
Government.
INDIA BECOMES A SIGNATORY TO AIIB
India along with other countries signed the Articles of
Agreement of the Bank on June 29th, 2015. AIIB
is a multilateral development bank proposed to be located in Beijing which will
foster sustainable economic development, create wealth and improve
infrastructure connectivity in Asia by investing in infrastructure and other
productive sectors. The process of ratification of the Articles of Agreement is
underway.
G20 SUMMIT 2015
The G20 Summit 2015 was held on 15-16 November 2015 in
Antalya, Turkey. Prime Minster led the Indian delegation. The Summit marks the
culmination of a year long process of inter-governmental meetings led by the
Finance Minister Arun Jaitley, Sherpa Dr Panagariya, and official
representatives from Government of India. G20 focuses on issues of economic and
financial cooperation. At this year’s Summit in Antalya, Leaders committed to
undertake a number of concrete actions to strengthen the global economy, make
global growth more inclusive, enhance the resilience of the international
financial system, mobilize investment to raise long-term growth, strengthen
multilateral trading system and implement previous commitments on economic
reform and labour markets.
GOLD SCHEMES
Introduction of Gold Monetization Schemes
The scheme was
announced in Budget 2015-16 with the aim of mobilizing the gold lying idle with
households and trusts and deploying it for productive use. The scheme was
launched by the Prime Minister of India on 5th November, 2015.
The scheme will benefit the manufacturers of gold jewellery who are largely
small and medium scale enterprises, by making gold available to them. It will
also benefit the common man by allowing him/her to earn interest on their
holdings of gold.
Introduction
of Sovereign Gold Bond Scheme
The scheme was
announced in Budget 2015-16 with the view to provide a new financial instrument
of investment to public at large and for reducing the demand for physical gold.
The scheme was launched by the Prime Minister of India on 5th November,
2015.In the long-run, this scheme will help in reducing the country’s demand
for import of gold, to a large extent. In the first tranche issuance of the
bonds which was open from 6th November, 2015 to 30thNovember,
2015 approximately 250 crore worth SGBs were subscribed to.
Introduction of
Indian Gold Coin
The scheme was
announced in Budget 2015-16 with the view to promote indigenously minted
national gold coins. The scheme is aligned with the ‘Make in
India’ programme of the Government. The scheme was launched by the Prime
Minister of India on 5th November, 2015.
CREATION OF “NATIONAL INVESTMENT AND INFRASTRUCTURE FUND”
(“NIIF”)
The Government of India has put investment in
infrastructure as one of the core elements of its economic programme. The Union
Finance Minister Shri Arun Jaitley made the announcement of setting-up of a
National Investment and Infrastructure Fund (NIIF)
in his Budget Speech 2015-16 .To maximize economic impact mainly through
infrastructure development in commercially viable projects, both greenfield and
brownfield, including stalled projects, NIIF has been created with the aim to
attract investment from both domestic and international sources. The NIIF
will be established as one or more Alternate Investment Funds (AIF) under the
Securities and Exchange Board of India (SEBI) Regulations. The initial
authorized corpus of NIIF would be Rs. 20,000 crore, which may be raised from
time to time. Government’s contribution/share in the corpus will be 49 per cent
in each entity set up as an AIF and will neither be increased beyond, nor allowed
to fall below 49%. The whole of 49 per cent would be contributed by Government
directly.
NIIF would solicit equity participation from strategic
anchor partners. The contribution of Government of India to NIIF would enable
it to be seen virtually as a sovereign fund and is expected to attract overseas
sovereign/quasi-sovereign/multilateral/bilateral investors to co-invest in it.
Government’s funds, each year, to each entity set-up as an AIF for executing
its functions based on its annual plan, would be provided as required.
Cash-rich Central Public Sector Enterprises could contribute to the Fund which
would be over and above the Government’s 49%. Similarly, domestic pension and
provident funds and National Small Savings Fund may also provide funds to the
NIIF.
The NIIF will be established as a Trust/other legal
entity from both the point of view of taxation and flexibility. To oversee
the activities of the NIIF, it has
been decided to constitute a Governing Council with the following composition:-
(i) Finance
Minister
- Chairman
(ii) Secretary,
DEA
- Member
(iii) Secretary,
Financial
Services
- Member
(iv) Ms
Arundhati
Bhattacharya
- Member
(v) Shri
Hemendra
Kothari
- Member
(vi) Shri
T.V. Mohandas Pai
- Member
The mandate of the Governing Council includes the approval of the following
matters:
a.
Guidelines for Investment of Trust property/Corpus of NIIF;
b.
Parameters for appointment and performance of investment managers/ advisors;
c. Any
other matter related or incidental thereto.
Government recently invited
applications for the post of CEO for NIIF who would be responsible for the
overall management and operations of the Fund.
ODA PLUS LOANS – A new loan instrument
namely “ODA Plus” was approved by the Hon’ble Finance Minister to meet
additional financial needs for large infrastructure projects which do not fall
within the agreed priority areas under Indo-German Bilateral Development
Cooperation. Following two projects have been approved/posed to German side for
funding under “ODA Plus”:
ü Chennai Water Production and
Demand Management Programme at Nemmeli, Chennai – Euro 100 million
ü Nagpur
Metro Rail Project – Euro 500 million
ONE WORLD WITHOUT
HUNGER – A SPECIAL INITIATIVE launched by G/o Germany was approved to support the
eradication of malnutrition and hunger and the securing of long-term food
security for a growing global population, and this initiative will be
implemented through bilateral/multilateral development cooperation and through
partnerships with private sector and civil society. Under this initiative total
four projects, totaling Euro 21.05 million, have been identified, 3 projects
(euro 11.05) million are under technical cooperation and 1 under financial
cooperation (euro 10 million on grant basis).
SOLAR ENERGY PARTNERSHIP : A Memorandum of
Understanding was facilitated and signed between MNRE and German government to
support Solar Energy Partnership based concessional loans in the range of 1
billion euro over the next five years.
LOAN/ AGREEMENT SIGNED DURING THE YEAR:
a) ‘Green Energy Corridors’
project in r/o Himachal Pradesh Power Transmission Corporation Limited (Euro 57
million)–Loan Agreement – with KfW (German Development Bank)
b) ‘Green Energy Corridors’ project
in r/o APTRANSCO (Euro 68 million) – with KfW (German Development Bank)
c) ‘Promotion of Microfinance and
Micro Enterprises’ (Euro 55 million without sovereign guarantee) – Signed b/w
SIDBI and KfW (German Development Bank)
d) Bangalore Metro Rail Project
Phase II (Euro 200 million) – with AFD (French Development Bank)
BILATERAL TECHNICAL AND FINANCIAL COOPERATION :
Annual Negotiation Meetings with Germany and France (AFD)
were successfully held respectively on 28-29 September, 2015 and 8-9 October,
2015. Germany has committed EUR 1,490.60 million (approx. Rs. 11,000 crore) for
bilateral Technical and Financial Cooperation for the period of 2015. French
assistance would be around 250 million for this year.
Extension of the Indian Development and Economic
Assistance Scheme:
The Government of India has been extending Lines of
Credit to Africa and other developing countries since 2005-06. The
scheme has been granted second extension for another five years i.e. from
2015-16 to 2019-20 with the approval of CCEA.
Review of Policy on Bilateral Official Development
Assistance for Development Cooperation with
Bilateral Partners:
India has a requirement to accelerate growth through
creation of additional infrastructure which requires extensive capital
investment. It has therefore been decided that Official Development
Assistance may be accepted from other countries also besides the existing
bilateral partners. Finance Minister and External Affairs Minister, with
the approval of Prime Minister, are authorized to accept any such
proposal. It has also been decided to accept offers for bilateral
assistance in the form of special loans in addition to the assistance on the
normal route.
Agreement on Urban Water, Sanitation and Hygiene (WASH):
An agreement in this regard was signed between Department
of Economic Affairs and U.S. Government (through USAID) on 30th September,
2015. Under this agreement, the Govt. of India and USAID will work
together to share expertise, best practices, innovation and technologies in
support of India’s efforts to strengthen access to clean water, sanitation and
hygiene in urban areas.
MoU on Financial Inclusion:
A Memorandum of Understanding to support ‘Financial
inclusion’ under Pradhan Mantri Jan Dhan Yojana (PMJDY) was signed between
Department of Economic Affairs and U.S. Government (through USAID) on 4th November,
2015. The MoF and USAID are now working towards signing of an agreement
in this regard. Under this agreement, the Government of India and USAID
will work together to support financial inclusion through expanded payments
acceptance networks and other efforts.
Grant Agreements signed with U.S. Trade and Development
Agency (USTDA):
Following three (03) grant agreements were signed
recently with USTDA:-
(i) USTDA grant to Airports
Authority of India to partially fund the technical assistance cost of goods and
services required for a technical assistance on the ‘Provision 2 Body Scanner
System Pilot’ project in India.
(ii) USTDA
grant to partially fund the cost of goods and services required for feasibility
study on the ‘Bottom Upgrading Project of Bharat Petroleum Corporation Ltd. at
Mumbai Refinery in India’.
(ii) USTDA grant to partially fund
the cost of goods and services required for developing PPP framework in Indian
Railway.
New loans negotiated and signed with the World Bank and
ADB during 2015
With a view to providing a fillip to the infrastructure
sector, several new loans have been negotiated and signed with the World Bank
and ADB during 2015. This includes IBRD loan of US$ 650 million
negotiated with the World Bank for the third phase of the EDFC project.
The total loan committed by the World Bank for the 3-phased EDFC project is US$
2725 million. This project will augment freight carriage throughout the
eastern dedicated freight corridor between Ludhiana and Kolkata. Another project
negotiated and signed is the Tamil Nadu Road Sector Project for World Bank loan
of US$ 300 million. Besides the Tamil Nadu Sustainable Urban Development
Project for World Bank loan of US$ 300 million has been signed on 3.6.2015.
PROJECTS INCLUDING NATIONAL INITIATIVES SWACHH
BHARAT AND SMART CITIES MISSIONS
(i) A
strong pipeline of urban projects fully aligned with the Government of India’s
strategy in Power, urban and Solar sector and national initiatives like Swachh
Bharat and Smart Cities Missions have been developed. These projects once
delivered will significantly strengthen urban service delivery and power sector
in project States, such as UP, MP, Jharkhand and Karnataka.
(ii) The World Bank would provide financial assistance to
Swachh Bharat Mission (Gramin) to the tune of US $ 1500 million. It would help
the country in reducing open defecation in rural areas, achieving and
sustaining Open defecation Free (ODF) status of villages, and enhancing access
to solid and liquid based management. The project has been negotiated with the
World Bank, and is likely to be implemented in a few months.
(iii) There has been significant
focus on Education and Skill Development sector. A robust pipeline for
education projects, particularly in the areas of skill development has been
developed with National level programme like Skill and Employability
Enhancement Programme (SEEP), Nai Manzil programme for minority youth and State
level Skill Development programs in Jharkhand and Uttarakhand. Projects for
providing Solar infrastructure & installation at rooftop PV has also been
posed to World Bank and ADB.
*****
Change in Tariff Value of
Crude Palm Oil, RBD Palm Oil, Others – Palm Oil, Crude Palmolein, Rbd Palmolein,
Others – Palmolein, Crude Soyabean Oil, Brass Scrap (All Grades), Poppy Seeds,
Areca Nuts, Gold and Silver Notified
In exercise
of the powers conferred by Sub-section (2) of Section 14 of the Customs Act,
1962 (52 of 1962), the Central Board of Excise & Customs (CBEC), being
satisfied that it is necessary and expedient so to do, hereby makes the
following amendment in the notification of the Government of India in the
Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated
the 3rd August, 2001, published in the Gazette of India,
Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E),
dated the 3rd August, 2001, namely:-
In the said
notification, for TABLE-1, TABLE-2 and TABLE-3, the following
Tables shall be substituted namely:-
TABLE-1
|
Sl. No.
|
Chapter/ heading/ sub-heading/tariff item
|
Description of goods
|
Tariff value US $
(Per Metric Tonne)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
|
1
|
1511 10 00
|
Crude Palm Oil
|
553
|
|
2
|
1511 90 10
|
RBD Palm Oil
|
587
|
|
3
|
1511 90 90
|
Others – Palm Oil
|
570
|
|
4
|
1511 10 00
|
Crude Palmolein
|
599
|
|
5
|
1511 90 20
|
RBD Palmolein
|
602
|
|
6
|
1511 90 90
|
Others – Palmolein
|
601
|
|
7
|
1507 10 00
|
Crude Soya bean Oil
|
770
|
|
8
|
7404 00 22
|
Brass Scrap (all grades)
|
2874
|
|
9
|
1207 91 00
|
Poppy seeds
|
2722
|
TABLE-2
|
Sl. No.
|
Chapter/ heading/ sub-heading/tariff item
|
Description of goods
|
Tariff value
(US $)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
|
1
|
71 or 98
|
Gold, in any form, in respect of which the
benefit of entries at serial number 321 and 323 of the Notification No.
12/2012-Customs dated 17.03.2012 is availed
|
347 per 10 grams
|
|
2
|
71 or 98
|
Silver, in any form, in respect of which the
benefit of entries at serial number 322 and 324 of the Notification No.
12/2012-Customs dated 17.03.2012 is availed
|
448 per kilogram
|
TABLE-3
|
Sl. No.
|
Chapter/ heading/ sub-heading/tariff item
|
Description of goods
|
Tariff value
(US $ Per Metric Tons )
|
|
(1)
|
(2)
|
(3)
|
(4)
|
|
1
|
080280
|
Areca nuts
|
2558”
|
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