Govt raises gold import duty by 50 pc; prices shoot up

January 22, 2013

gold_priceNew Delhi, Jan 22: The government on Monday slapped higher import taxes on gold, raising it from 4 to 6 per cent, a move expected to moderate its import and also curb India's passion for the yellow metal which has put tremendous strain on state finances.

The government also proposed to make changes in the gold deposit schemes and make it more attractive for people to deposit their gold with banks.

Shortly after news of the duty hike, gold prices shot up by Rs 315 to Rs 31,250 per 10 grams and markets sources say it may go up to Rs 700 per 10 grams in the short term.

An estimated 20,000 tonnes of gold is lying idle with Indian households. “The government will link Gold Exchange Traded Fund (ETF) with gold deposit scheme, which will enable mutual funds to unlock their physical gold and invest in gold-linked schemes offered by banks.

The proposed changes will help moderate import of gold and help bridge the current account deficit,” Department of Economic Affairs Secretary Arvind Mayaram said here. He, however, added that the duties will be reviewed if there is moderation in the quantity of gold imported into the country.

India’s gold import is estimated at $38 billion in 10 months up to December 2012 from $56.5 billion in fiscal 2011-12. A 50 per cent rise in import duty is seen important to curb the current account deficit, which has widened to $38.7 billion or 4.6 per cent of the GDP in the first half of the current financial year.

The move to link Gold ETF with deposit schemes will help increase physical availability of gold in the market, as a part of the gold lying in stock will be brought into circulation to meet the demand of gems and jewellery trade, the secretary said.

Gold futures traded 1 per cent higher immediately after the announcement.The government also made some changes in the quantity and tenure for the gold deposit scheme in order to make it attractive to individuals.

The minimum quantity of gold to be deposited into gold deposit schemes will now be reduced and the minimum tenure would be brought down to six months from the present three years.

Market regulator Sebi and the Reserve Bank are expected to come out with notifications on gold ETF and gold deposit schemes in two to three weeks.

Gold ETF is provided by mutual funds, in which the units are backed by physical gold held by the MFs. Gold deposit schemes are offered by banks, in which gold deposited by client is lent by the banks to the gems and jewellery trade.

Finance Minister P Chidambaram had recently expressed concern over rising gold imports and the consequent overflow of foreign exchange which was putting pressure on the current account deficit which widened 5.4 per cent in the second quarter of current fiscal ending September 2012.

But, analysts said gold still looked more attractive to Indian consumers with nearly 13 per cent rise in domestic prices, while the interest rates offered by the bank were around 9 per cent and inflation hovered above 7 per cent.

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Agencies
August 5,2020

Ayodhya,  Aug 5: The Saryu Ghat was seen decorated ahead of the foundation stone-laying ceremony of the Ram Temple in Ayodhya on Wednesday.

In wake of the COVID-19 pandemic, sanitisation work was also done at the Hanuman Garhi temple in the morning ahead of the Prime Minister's visit. Strict security and COVID-19 protocols will be followed at the temple.

Prime Minister Modi will perform 'pooja' at Hanuman Garhi and Shree Ramlala Virajman before performing 'bhoomi pujan' of the Ram Temple in Ayodhya, the Prime Minister's Office (PMO) had informed on Tuesday.

He will unveil a plaque to mark the laying of the foundation stone and also release a commemorative postage stamp on 'Shree Ram Janmabhoomi Mandir'.

Around 175 eminent guests have been invited for the ‘bhoomi pujan’ of the Ram Janmbhoomi Mandir. Besides Prime Minister Modi, RSS chief Mohan Bhagwat, Mahant Nritya Gopaldas Maharaj, Uttar Pradesh Governor Anandiben Patel and Uttar Pradesh Chief Minister Yogi Adityanath will be present on stage.

"175 eminent guests have been invited for the ‘bhoomi pujan’ of Shri Ram Janmbhoomi Mandir. 135 Pujya Sants belonging to 135 spiritual traditions will be present in the programme. Some eminent citizens of Ayodhya have also been invited," as per Shri Ram Janmbhoomi Teerth Kshetra.

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News Network
March 28,2020

New Delhi, Mar 28: The total number of coronavirus positive cases in the country has risen to 918 that include foreign nationals, the Ministry of Health and Family Welfare said on Saturday.

The ministry said: "The total positive cases of coronavirus are 918. The active COVID-19 cases are 819. Cured and discharged are 79. While 19 deaths have occurred so far. One person with COVID-19 migrated. As many as 15,24,266 passengers were screened at airports."

Prime Minister Narendra Modi on Tuesday announced a 21-day lockdown in the entire country to deal with the spread of coronavirus, saying that "social distancing" is the only option to deal with the disease, which spreads rapidly.

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News Network
July 26,2020

New Delhi, Jul 26: Nidan Singh Sachdeva, the Afghan Sikh who was kidnapped a month ago and released recently, arrived here earlier in the day and narrated the ordeals that he faced at the hands of abductors and also thanked the Indian government for bringing him back to his 'motherland'.

Facing threats from Pakistan-backed Taliban, eleven members of Sikh community from Afghanistan, who were granted short-term visas by Indian Embassy in Kabul, including Sachdeva, who was abducted from a gurudwara in Paktia province last month, touched down in New Delhi on Sunday afternoon.

Speaking to news agency on his return, an emotional Sachdeva, said, "I don't know what to call Hindustan -- whether it is my mother or my father -- Hindustan is Hindustan."

"I was abducted from the gurudwara and 20 hours later, I was covered with blood. I was tied to a tree as well. They used to beat me and ask me to convert into a Muslim. I repeatedly told them that why should I convert, I have my own religion," he said while describing
Nidan Singh thanked Government of India for bringing him here.

"I am more than thankful to the Indian government for bringing us here to our motherland. I have no words to describe my feelings here. I arrived here after much struggle. The atmosphere of fear prevails there.

Gurudwara is where we can be safe but a step outside the Gurdwara is fearful," he said.
"They used to beat me every day and every night," he said further and added, "It is because of sheer happiness, I am speechless. I am very grateful to them."

Ministry of External Affairs recently announced that India has decided to facilitate the return of Afghan Hindu and Sikh community members facing security threats in Afghanistan to India.
The decision comes four months after a terror attack at a gurdwara in Kabul's Shor Bazaar killed at least 25 members of the community.

India has condemned the "targeting and persecution" of minority community members by terrorists in Afghanistan at the behest of their external supporters remains a matter of grave concern.

Leaders of the Afghan Sikh community have appealed to the Indian government to accommodate the Sikhs and Hindus from Afghanistan and grant them legal entry with long term residency multiple entry visas.

Once a community of nearly 250,000 people, the Sikh and Hindu community in Afghanistan has endured years of discrimination and violence from extremists, and the community is now estimated to comprise fewer than 100 families across the country.

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