A convoluted tariff regime, under-recoveries, power theft, and unpaid subsidies are threatening the sustainability of the Delhi discoms Delhi Government is looking at various options to address twin problems facing its three power distribution companies (discoms) namely BSES Rajdhani Power Limited (BRPL), discom for South & West Delhi; BSES Yamuna Power Limited (BYPL) — discom for Central & East Delhi; and Tata Power Delhi Distribution Limited or TPDDL – discom for North Delhi. These are (i) “Regulatory Assets” or RAs of Rs 27,200 crore lying in the books of these discoms; (ii) an equally staggering amount of Rs 26,500 crore they owe to power generation and transmission companies viz. Indraprastha Power Generation Co. Ltd (IPGCL), Pragati Power Corporation Limited (PPCL)...
More
Comments are closed
Category: Pioneer
Are e-commerce giants violating FDI norms?
As policymakers consider future regulatory steps, the ongoing ED investigation may serve as a pivotal moment in clarifying the regulatory framework for e-commerce operations in India Reportedly, on October 7, 2024, the Enforcement Directorate (ED) raided the offices of half a dozen sellers operating on the e-commerce platforms of Amazon and Walmart-owned Flipkart for alleged violations of Foreign Investment norms and Prevention of Money Laundering Act (PMLA). The intent behind the searches was to gather evidence on complaints that these sellers have been importing products from China but routing them through other locations to avoid paying higher import duties and longer time in getting the consignment cleared at the ports (that would be the case if the products were imported...
More
Comments are closed
Nutrient-based subsidy: Support and scrutiny balance
While companies have the flexibility to set their MRP, these prices remain under close government scrutiny, ensuring affordability without undermining competition Just around the time when the Rabi Crops season (October 2024 – March 2025) has commenced, there was a shortage of di-ammonium phosphate (DAP) in many parts of the country. DAP is a widely used complex fertiliser that supplies 46 per cent Phosphate or ‘P’ nutrients besides 18 per cent Nitrogen or ‘N’ (a ton of DAP contains 180 kg ‘N’ and 460 kg ‘P’). The annual consumption of DAP is around 10 to 11 million tons. Against this, domestic production is less than half at around 4.5 – 4.8 million tonnes. The deficit is made up of imports...
More
Comments are closed
Food subsidy reforms: Can Govt tackle mounting costs
Timely disbursement of funds to FCI would go a long way to streamline the Pradhan Mantri Garib Kalyan Anna Yojana, which provides free food grains to the people The Ministry of Finance (MoF) has released Rs 97,000 crore towards food subsidy expenses in the first half of the current financial year (FY) to the Food Corporation of India (FCI). This is over two-thirds of the required fund support of Rs 147,000 crore to FCI during the current FY. The MoF is expected to release the balance amount by December 31, 2024. Under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), the Centre asks the FCI and other state agencies to procure food from the farmers at MSP (minimum support price)...
More
Comments are closed
Rising import reliance amid regulatory challenge
Despite Government efforts to boost domestic production, policy constraints and pricing caps continue to stifle the energy sector’s growth According to the Petroleum Planning and Analysis Cell under the Ministry of Petroleum and Natural Gas (MPNG), during the first six months of the current financial year (FY) September 2024, India’s consumption of natural gas (NG) increased by almost 12 per cent to 36.850 billion metric standard cubic meters (bmscm) over the corresponding period last FY. However, the import of NG (it is imported in a liquefied form commonly known as LNG) increased by 23 per cent to 18.975 bmscm during this period. Taken as a proportion of consumption, imports were 51.5 percent during April-September 2024 up from 46.8 percent during...
More
Comments are closed
Unlocking the full potential of GatiShakti
The PM GatiShakti initiative is revolutionising India’s infrastructure by integrating digital planning tools to expedite project completion and improve multimodal connectivity According to the Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), Amardeep Singh Bhatia, as many as 208 big-ticket infrastructure projects including roads (101), railways (73), urban development (12) and oil and gas (4) worth Rs 1539,000 crore have been recommended for approval under the PM GatiShakti initiative so far. These projects have been recommended by an inter-ministerial group known as the Network Planning Group (NPG) constituted under the PM GatiShakti National Master Plan (NMP). Launched in October 2021, the PM Gati Shakti NMP is a transformative Rs 100 lakh crore initiative aimed at revolutionising the...
More
Comments are closed
Why RBI should not look at food inflation
Concerns over persistent food price volatility and the need for economic growth support have prompted the Reserve Bank of India to keep its options open On October 9, 2024, the Reserve Bank of India (RBI) Governor Shaktikanta Das announced the decisions taken by the six-member Monetary Policy Committee (MPC) in its fourth bi-monthly meeting of the current financial year (FY). It has kept the policy rate (the interest rate at which the RBI lends to banks) unchanged at 6.5 per cent. However, it has altered its policy stance from “withdrawal of accommodation” to a neutral stance. In 2016, the Union Government put in place an institutionalised framework to enable the MPC to formulate monetary policy and determine the key interest...
More
Comments are closed
Will the three farm laws be revived?
Were the laws a missed opportunity to address the deep-seated issues faced by millions of India’s struggling farmers and consumers? Recently, a BJP Member of Parliament talked of resurrecting the three national Farm Laws. Faced with criticism from the opposition parties, a spokesperson of the BJP clarified that ‘her statement does not represent the party view’. Modi – The government doesn’t intend to bring back these laws. What were those laws? Enacted in September 2020, the most far-reaching of these laws was the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020. It allowed the Centre to regulate inter-State trade and intra-State trade, providing for freedom of choice to the farmer or trader to conduct trade and commerce while...
More
Comments are closed
Can India become a manufacturing hub?
Growth is driven by strong domestic demand, export potential, government infrastructure efforts, private sector investment, and initiatives like ‘Make in India’ According to a Study Report by IDBI Capital, India is set to add US$ 1 trillion to its gross domestic product (GDP) every 18 months over the next six years. It goes on to say that “with this momentum, the country is on track to become a US$ 10 trillion economy positioning itself as the world’s third-largest economy by 2030”. Currently, India has a GDP of US$ 4 trillion. The report has also highlighted that “India’s accelerated growth will be driven primarily by the manufacturing sector, which is projected to contribute 32 per cent to the incremental Gross Value...
More
Comments are closed
GST cess extension: Is it Justified Beyond 2026?
With loans likely to be repaid by January 2026, the question arises—can the continued levy of the cess be logically justified in light of buoyant tax collections In its meeting held early this month, the GST Council had decided to set up a Group of Ministers (GoM) to suggest ‘how to go about the GST compensation cess, which is levied on luxury, sin and demerit goods such as automobiles, aerated drinks and tobacco, after the loans taken to meet the shortfall in revenue of states during Covid-affected years are repaid. The GoM will be headed by Union Minister of State for Finance Pankaj Chaudhary and include members from states. The statement ‘how to go ……’ together with reports suggesting that...
More
Comments are closed