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Rate of basic customs duty on certain specified medical device increased from 5% to 7.5%;



Rate of basic customs duty on certain specified medical device increased from 5% to 7.5%; 
Simultaneously, exemption from additional customs duty (SAD) on these medical devices has also been withdrawn, and they will now attract 4% SAD; Further, to give fillip to domestic manufacturing, basic customs duty is being reduced to 2.5% along with full exemption from SAD on raw materials, parts and accessories for manufacture of medical devices, falling under headings 9018 to 9022.

In line with its ‘Make in India’ campaign, the Government of India had constituted a Task Force to examine various issues concerning the domestic Medical Devices Sector. The said Task Force had made certain recommendations regarding rationalization of customs duty structure for the sector, so as to promote domestic manufacturing of medical devices.
            Taking into consideration the recommendations of the Task Force, the Government has increased the rate of basic customs duty on certain specified medical device from 5% to 7.5%. Simultaneously, the exemption from additional customs duty (SAD) on these medical devices has also been withdrawn, and they will now attract 4% SAD. Further, to give fillip to domestic manufacturing, basic customs duty is being reduced to 2.5% along with full exemption from SAD on raw materials, parts and accessories for manufacture of medical devices, falling under headings 9018 to 9022.
            Notification Nos. 4/2016-Customs and 5/2016-Customs, both dated 19.01.2016 have been issued in this regard.
            These changes are expected to provide impetuous to the domestic medical devices sector, support Make in India campaign of the Government and generate employment.
            The concessional basic customs duty on hospital equipment for use in hospitals run by Central or State Government or registered societies, and specified assistive devices, rehabilitation aids and other goods for disabled will, however, continue.

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IDFC Bank Limited included as a Receiving Office for the Second Tranche of Sovereign Gold Bond Scheme 2016 
Government of India, in consultation with Reserve Bank of India (RBI), has issued Notification for the Second Tranche of Sovereign Gold Bond Scheme 2016 on January 14, 2016. It has been decided to include IDFC Bank Limited as a Receiving Office. The Annexure-I of the Notification dated January 14, 2016 stands amended to the effect. The other terms and conditions of the Notification shall remain unchanged. 
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Extension of time-line upto 31st March, 2016 for Government Co-contribution under the Atal Pension Yojana (APY) 
To address the longevity risks among the workers in unorganised sector and to encourage the workers in unorganised sector to voluntarily save for their retirement, the Government had launched a new initiative called Atal Pension Yojana (APY) with effect from 1st June, 2015. Under the APY, the Central Government’s co-contribution of 50% of the subscriber’s contribution upto Rs. 1000 per annum, was available to each eligible subscriber, for a period of 5 years, i.e. from 2015-16 to 2019-20, who join APY before 31st December, 2015.

After careful consideration of feedback received from various quarters, the Government has decided that the co-contribution by the Central Government of 50% of the total prescribed contribution upto Rs. 1,000 per annum, will be available for those eligible subscribers, who join APY before 31st March, 2016. This measure is likely to benefit substantial number of people who have not been able to join APY and therefore have failed to avail the benefit of co-contribution by the Government till 31st December, 2015. 
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Government approves proposal of M/s Firefly Networks Ltd and recommends the proposal of M/s HDFC Standard Life Insurance Company Ltd for the approval of CCEA, involving an FDI of Rs. 1705 crore 

            Based on the recommendations of Foreign Investment Promotion Board in its 230th meeting held on 29th December 2015, the Government has approved the proposal of M/s Firefly Networks Ltd and has also recommended the proposal of M/s HDFC Standard Life Insurance Company Ltd for the approval of CCEA, which involves Foreign Direct Investment (FDI) of Rs. 1705 crore.

The following one (01) proposal has been approved:

S. No.
Item No
Name of the applicant
Gist of the proposal
Sector
FDI (in Rs. Crore)
1
7
M/s  Firefly Networks Ltd
Approval has been sought by M/s FireFly Networks Limited for approval of the existing foreign investment (50% indirect) and to permit commencement of activities as a Telecom Infrastructure Provider Category-I (IP1).
Telecom
Nil

            The following one (01) proposal has been recommended for approval by the Cabinet Committee on Economic Affairs (CCEA) under para 5.2.3 of the FDI Policy 2015:

S. No
Item No
Name of the applicant
Gist of the proposal
Sector
FDI (in Rs. Crore)
1
8
M/s  HDFC Standard Life Insurance Co. Ltd
Approval for transfer of its shares currently held by Housing Development Finance Corporation Limited (HDFC) to Standard Life (Mauritius Holdings) 2006 Limited, thereby increasing foreign shareholding in HDFCSLI from 26% to 35%.
Insurance
Rs.1705 cr


The following four (04) proposals have been deferred:

S. No.
Item No
Name of the applicant
Gist of the proposal
Sector
1
1
M/s Quantum Simulators Pvt Ltd
Approval to set up a stimulator Manufacturing Company in India for various applications including military and commercial uses in technical collaboration with leading US Company M/s Textron with US $ 15 Billion revenue. Further  M/s Quantum Simulator has a JV agreement with a Indian company who would be holding 51% and the balance 49% by Quantum
Defence
2
2
M/s Sharekhan Limited
Acquisition of up to 100% of the share capital of Sharekhan Limited other than the shares held in Sharekhan Limited by Human Value Developers Private Limited by BNP Paribas SA France and/or one or more of BNPs French subsidiaries. II. Acquisition of 100% capital of Human Value Developers Private Limited by BNP and/ or one or more of BNPs French subsidiaries.
NBFC
3
6
M/s Aviva Life lnsurance Co lndia Ltd
Approval has been sought by Aviva Life Insurance Company India Limited to increase the foreign shareholding from 26% to 49% by Aviva International Holdings Limited, UK by way of transfer of 23% shareholding currently held by Dabur Investment Corp.
Insurance 
4
9
M/s Tata Sikorsky Aerospace Limited
Approval has been sought for
non-resident to non-resident transfer of 26% of the shares of Tata Sikorsky Aerospace from M/s United Technologies International Corporation - Asia Private Limited to M/s Lockheed Martin Global, Inc. (USA).
Defence



The following one (01) proposal has been rejected:

S. No.
Item No
Name of the applicant
Gist of the proposal
Sector
1
5
M/s Software is Correct, Inc.
Approval has been sought for infusing fresh funds of up to USD 15 million in its wholly owned Indian subsidiary
IT/ITES

            The following one (01) proposal does not lie before FIPB:

S. No.
Item No
Name of the applicant
Gist of the proposal
Sector
1
3
M/s P C Ghadiali and Co LLP
Nexus Flight Operation Services India Pvt. Ltd.
P C Ghadiali and Co LLP, a CA firm has been appointed by Mazav Management LLC, USA to apply on their behalf to FIPB for the acquisition of 24% shareholding in Nexus Flight Operation Services India Pvt. Ltd, held by Sovika Aviation Services Private Limited.
Ground Handling Services

            The following one (01) proposal was withdrawn by the applicant:

S. No.
Item No
Name of the applicant
Gist of the proposal
Sector
1
4
M/s SunE Solar B.V.

Approval is sought by SunE Solar B.V., a company registered in Netherlands, to set up a LLP in India along with SunEdison Energy India Private Limited and SunEdison Solar Power India Private Limited, both private limited companies incorporated in India.

LLP



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