IMPORT DUTY ON SUGAR RAISED

IMPORT DUTY ON SUGAR JACKED UP TO 40 PER CENT, OTHER INCENTIVES FOLLOW SUIT

 In a major boost to crumbling sugar sector, government has increased import duty on sugar from 15 per cent to 40 per cent. Seen as a big relief to sugar millers, who are already reeling under cane prices pressure, the government’s move will surely bring some cheers to the industry. Food minister Ram Vilas Paswan took the decision in this regard recently at a high level meeting. In addition to this millers are also given few other benefits to come out of woods.

 These include extension in sugar export incentives till September 2014 and hike in limit of ethanol blending with petrol to 10 per cent. Also sugar millers will get additional interest free loan up to `4400 crore, but for that they first have to repay farmers dues worth over Rs11000 crore. Industry players now expect prices to go up by at least `3-4 per kg in the domestic market. In fact soon after the decision prices have been jacked by `2 per kg in Delhi and Mumbai markets. Post this decision sugar stocks saw a decent spurt on the bourses.

 REC EXTENDS SUPPORT TO ‘ABHAYANAND SUPER 30’ INITIATIVE

 Rural Electrification Corporation Limited (REC) IMPORT DUTY ON SUGAR JACKED UP TO 40 PER CENT, OTHER INCENTIVES FOLLOW SUIT In a major boost to crumbling sugar sector, government has increased import duty on sugar from 15 per cent to 40 per cent. Seen as a big relief to sugar millers, who are already reeling under cane prices pressure, the government’s move will surely bring some cheers to the industry. Food minister Ram Vilas Paswan took the decision in this regard recently at a high level meeting. In addition to this millers are also given few other benefits to come out of woods. These include extension in sugar export incentives till September 2014 and hike in limit of ethanol blending with petrol to 10 per cent. Also sugar millers will get additional interest free loan up to `4400 crore, but for that they fi rst have to repay farmers dues worth over Rs11000 crore. Industry players now expect prices to go up by at least `3-4 per kg in the domestic market. In fact soon after the decision prices have been jacked by `2 per kg in Delhi and Mumbai markets. Post this decision committed further financial assistance under CSR initiatives to provide free one-year residential coaching and mentoring programme to further 45 students for admission into IITs, NITs and other engineering colleges. This support is being funded by REC after the recent success of the CSR assisted programme of providing coaching of 20 students, including girl students, largely from underprivileged and rural backgrounds under ‘Abhayanand Super 30’ initiative during FY14. Under this initiative four students competed successfully in IIT advance and one student achieved the all-India first rank in the Physically Handicapped category. On the whole, 16 students have qualified for IIT mains.

 This initiative, co-founded by present DGP of Bihar Abhayanand for providing free coaching to 30 students of Bihar, has achieved high success rates. Over the years, it has expanded to become the ‘National Super 100’ including ‘Kashmir Super-30’, covering coaching of over 400 students from underprivileged sections of society in 10 centers across the country in FY15, with the vision of transforming the lives of deserving children with little or no means. The selection of the students is done through transparent procedure. The Memorandum of Agreement (MoA) in this regard was executed by P J Thakkar, Director (Technical), REC, and S.K. Shahi, Director, CSRL signed the MoA in the presence of other senior officials of REC and CSRL for supporting 45 students.

 NTPC ORGANISES FOREIGN LENDERS MEET

 India’s biggest generator NTPC organised its 12th foreign lenders meet in Mumbai recently. The meet is organised every year to appraise foreign banks and financial institutions about the company’s operational and financial performance, growth plans and funding requirement. This seems important considering the efforts of the company for mobilisation of resources at an optimum cost in view of its massive growth plans. Participants from India and abroad representing banks and financial institutions, including KfW Germany, Japan Bank for International Cooperation and Export-Import Bank of Korea attended the event. Presentations were made by international credit rating agencies Standard & Poor and Fitch Ratings, on the company’s credit quality on the backdrop of India’s economic environment and sovereign ratings. On the occasion K.Biswal, Director (Finance) NTPC addressed the participants.

STEEP HIKE IN RAILWAY FREIGHTS AND FARES

 In a bid to give financial support to transport life line of the country, the Modi government has ultimately bitten the bullet by administering a steep railway freight and fare hike even before the budget. In one of the steepest hikes of recent times, Railways fare has been increased up by whooping 14.2 per cent, while freight rates has gone up by staggering 6.5 per cent. Experts feel that this was long due considering the size of Indian railways and money needed to ramp up the railway infrastructure and facilities to commuters that has been crippled by shortage of funds and huge subsidy burden. On the other hand some experts are equally concerned about the impact of this hike on the crucial inflation index, as freight is an integral part of cost of many essential commodities. As per an assessment there would be an increase of 10 basis points in consumer price index due to passenger fare hike, while freight hike would fuel wholesale price index further. Also government is all set to open railways for foreign investments, which till now is the only forte, remained isolated by it. This seems quite positive for country’s biggest transport infrastructure.