FDI in multi-brand retail comes into effect, India Inc euphoric

September 20, 2012

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New Delhi, September 20: Showing resolve for reforms, the government on Thursday notified its decision to allow global retail giants like Wal-Mart to open stores in India, on a day several political parties called Bharat bandh to protest against the policy.

With this notification, multinational retailers can invest up to 51 per cent to open stores in 10 states and UTs which, till date, have agreed to implement the decision.

"51 per cent FDI in multi-brand retailing, in all products, will be permitted ... " a notification by the department of industrial policy and promotion (DIPP) said. It said the decision will take immediate effect.

The DIPP also operationalised September 14 Cabinet decisions to relax the sourcing norms for foreign retailers investing beyond 51 per cent in single-brand retail and allow 49 per cent FDI by foreign airlies in the domestic carriers.

Besides, the decisions on permitting 49 per cent FDI in power exchanges and increase in foreign equity cap from 49 per cent to 74 per cent in the service providers like DTH in broadcasting sector have also been notified.

In the most controversial area of FDI in multi-brand, the DIPP said the state governments and UTs would be free to take their own decisions.

"Therefore, retail sales outlets may be set up in those States\UTs which have agreed, or agree in future, to allow FDI in MBRT (multi-brand retail trading) under this policy".

Minimum amount to be brought in by the foreign investor would be USD 100 million and outlets may be set up only in cities with a population of more than 10 lakh.

At least 50 per cent of FDI should be invested in 'back-end infrastructure' within three years of the first tranche.

To protest against the government's decision, NDA, Left and SP called Bharat Bandh. The parties were also protesting against the diesel price hike and cap on subsidised LPG.

India Inc euphoric

Hailing the Centre's decision to implement FDI in multi-brand retail, the industry today said this will give a strong message to investors that the government means business and stands firm on its initiatives.

Industry body Assocham complimented the government on its firm decision on economic reforms.

"This will give a strong message to investors inside as well as outside the country that the government means business," Assocham secretary general D S Rawat said.

The politicians must distinguish between politics and economics in the interest of the country. Though not much investments will be flowing from investors immediately but the message it carried is huge, he added.

The government today notified FDI in multi-brand retail operationalizing the Cabinet decision.

The Department of Industrial Policy and Promotion also operationalized September 14 Cabinet decisions to relax the sourcing norms for foreign retailers investing beyond 51 per cent in single-brand retail and allow 49 per cent FDI by foreign airlines in the domestic carriers.

Besides, the decisions on permitting 49 per cent FDI in power exchanges and increase in foreign equity cap from 49 per cent to 74 per cent in the service providers like DTH in broadcasting sector have also been notified.

The development comes on a day when a nation-wide bandh was called by BJP, Left parties and UPA's outside supporter SP to protest diesel price hike and FDI in multi-brand retail evoked mixed response with life and trade being disrupted in some states.

CII said it is important to stay on track on reforms. "The entire decision on multi-brand retail will go a long-way in capital infusion in the country and also leads to strengthening of linkages including benefits to farmers," CII director general Chandrajit Banerjee said.

This is an important reform for India for both growth and development, he added.

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News Network
February 19,2020

New Delhi, Feb 19: India will switch to the world's cleanest petrol and diesel from April 1 as it leapfrogs straight to Euro-VI emission compliant fuels from Euro-IV grades now - a feat achieved in just three years and not seen in any of the large economies around the globe.

India will join the select league of nations using petrol and diesel containing just 10 parts per million of sulphur as it looks to cut vehicular emissions that are said to be one of the reasons for the choking pollution in major cities.

Sanjiv Singh, Chairman of Indian Oil Corp (IOC) - the firm that controls roughly half of the country's fuel market, said almost all refineries began producing ultra-low sulphur BS-VI (equivalent to Euro-VI grade) petrol and diesel by the end of 2019 and oil companies have now undertaken the tedious task of replacing every drop of fuel in the country with the new one.

"We are absolutely on track for supplying BS-VI fuel from April 1. Almost all refineries have begun supplying BS-VI fuel and the same has reached storage depots across the country," he said.

From storage depots, the fuel has started travelling to petrol pumps and in the next few weeks all of them will only have BS-VI grade petrol and diesel, he said. "We are 100 per cent confident that fuel that will flow from nozzles at all the petrol pumps in the country on April 1 will be BS-VI emission compliant fuel."

India adopted Euro-III equivalent (or Bharat Stage-III) fuel with a sulphur content of 350 ppm in 2010 and then took seven years to move to BS-IV that had a sulphur content of 50 ppm. From BS-IV to BS-VI it took just three years.

"It was a conscious decision to leapfrog to BS-VI as first upgrading to BS-V and then shifting to BS-VI would have prolonged the journey to 4 to 6 years. Besides, oil refineries, as well as automobile manufacturers, would have had to make investments twice - first to producing BS-V grade fuel and engines and then BS-VI ones," he said.

State-owned oil refineries spent about Rs 35,000 crore to upgrade plants that could produce ultra-low sulphur fuel. This investment is on top of Rs 60,000 crore they spent on refinery upgrades in the previous switchovers.

BS-VI has a sulphur content of just 10 ppm and emission standards are as good as CNG.

Originally, Delhi and its adjoining towns were to have BS-VI fuel supplies by April 2019 and the rest of the country was to get same supplies from April 2020.

But oil marketing companies switched over to supply of BS-VI grade fuels in the national capital territory of Delhi on April 1, 2018.

The supply of BS-VI fuels was further extended to four contiguous districts of Rajasthan and eight of Uttar Pradesh in the National Capital Region (NCR) on April 1, 2019, together with the city of Agra.

BS-VI grade fuels were made available in 7 districts of Haryana from October 1, 2019.

Singh said the new fuel will result in a reduction in NOx in BS-VI compliant vehicles by 25 per cent in petrol cars and by 70 per cent in diesel cars.

The switchover, he said, is a tedious task as every drop of old, higher-sulphur content fuel has to be flushed out in depots, pipelines and tanks before being replaced by BS-VI.

"We are confident of disruption-free switchover to BS-VI supplies across the country," he said. "What we will be supplying is the best quality available anywhere in the world. You don't have any better fuel that is supplied in any part of the world. Perhaps our BS-VI fuel will be better than equivalent fuel in some parts of the US and Europe."

India adopted a fuel upgradation programme in the early 1990s. Low lead gasoline (petrol) was introduced in 1994 in Delhi, Mumbai, Kolkata and Chennai. On February 1, 2000, unleaded gasoline was mandated nationwide.

Similarly, BS-2000 (Euro-I equivalent, BS-1) vehicle emission norms were introduced for new vehicles from April 2000. BS-II (Euro-II equivalent) emission norms for new cars were introduced in Delhi from 2000 and extended to the other metro cities in 2001.

Benzene limits have been reduced progressively from 5 per cent in 2000 to 1 per cent nationwide. Lead content in gasoline was removed in phases and only unleaded gasoline is being produced and sold from February 1, 2000.

The octane number of gasoline signifies the improved performance of the engine. Loss in octane number due to phasing out of lead was made up by installing new facilities in the refinery and changes in refinery operation. RON (Research Octane Number) of gasoline for BS-2000 spec was increased to 88. This has over time been increased to 91.

Singh said sulphur reduction will reduce Particulate Matter (PM) emissions even in the in-use older generation diesel vehicles.

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News Network
August 6,2020

New Delhi Aug 6: In a new twist in the Vijay Mallya case, a certain document connected with the case in the Supreme Court has gone missing from the apex court files. 

A bench comprising Justices U.U. Lalit and Ashok Bhushan adjourned the hearing to August 20.

It was hearing the review plea filed by Mallya against a July 14, 2017 judgment wherein he was found guilty of contempt for not paying Rs 9,000 crore dues to banks despite repeated directions, although he had transferred $40 million to his children.

The bench was looking for a reply on an intervention application, which it seemed has gone missing from the case papers.Parties involved in the case sought more time to file fresh copies.

On June 19, the Supreme Court sought explanation from its registry regarding Mallya's appeal against the May 2017 conviction in the contempt case for not repaying Rs 9,000 crore dues to banks not listed for the last 3 years.

A bench comprising Justices Lalit and Bhushan had asked the Registry to furnish all the details including names of the officials who had dealt with the file concerning the Review Petition for last three years.

The bench said according to the record, placed before it, the review petition was not listed before the court for last three years. "Before we deal with the submissions raised in the Review Petition, we direct the Registry to explain why the Review Petition was not listed before the concerned Court for last three years," said the bench.In May 2017, the apex court held him guilty of contempt of court for transferring $40 million to his children, and ordered him to appear on July 10 to argue on the quantum of punishment.

The bench said let the explanation be furnished within two weeks. "The Review Petition shall, thereafter, be considered on merits," it added.In 2017, the apex court passed the order on a contempt petition against Mallya by a consortium of banks led by the SBI. 

The banks claimed Mallya transferred $40 million from Daigeo to his children's accounts, and did not use this money to clear his debt. Banks cited this as violation of judicial orders.

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News Network
July 14,2020

Kathmandu, Jul 14: After staking claim to Indian territories of Lipulekh-Kalapani in  a new controversial map,  Nepal Prime Minister KP Sharma Oli on Monday claimed that Ayodhya, the birthplace of Lord Rama, is in Nepal and Lord Rama was Nepali.

“Although real Ayodhya lies at Thori, city in the west of Birgunj, India has claimed that Lord Rama was born there. Due to these continuous claims, even we have believed that deity Sita got married to Prince Rama of India. However, in reality, Ayodhya is a village lying west of Birgunj,” Oli claimed at an event organised at Prime Minister's residence in Kathmandu.

The Prime Minister also blamed India of cultural encroachment by “creating a fake Ayodhya.”

“Balmiki Ashram is in Nepal and the holy place where King Dashrath had executed the rites to get the son is in Ridi. Dashrath’s son Ram was not an Indian and Ayodhya is also in Nepal,” he claimed.

In an attempt to save self from criticism, Oli questioned how Lord Rama could come to Janakpur to marry Sita when there were "no means" of communication. He further said that it to be impossible for Lord Rama to come to Janakpur from present Ayodhya that lies in India.

“Janakpur lies here and Ayodhya there and there is talk of marriage. There was neither telephone nor mobile then how could he know about Janakpur,” Oli said.

Comments

Ahmed Ali Kulai
 - 
Tuesday, 14 Jul 2020

New controversy

 
BJP got next election Muddah

Farhan
 - 
Tuesday, 14 Jul 2020

Ab Ram Mandir Kaha Banega???

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