Ø In a major step in validation of indigenous
defence technologies, the Indian built nuclear-powered ballistic missile
submarine Arihant completed its harbour trials and entered the
sea. Built under the highly secretive Advanced Technology Vessel project monitored
directly by the Prime Minister’s Office, the nuclear-powered submarine emerged
from the breakwaters of the Visakhapatnam Harbour under the watchful gaze of a
low flying helicopter. The 112 metre, 6000 tonne partially submerged Arihant
glided into the Bay of Bengal as part of its sea trials, sailing north along
the coast before disappearing into the mist. Powered by 83 MW pressurised light
water reactor, it would have to undergo comprehensive validation sea trials
before it is commissioned into the Navy.
Ø Union Minister of State for Home Kieran Rijiju
pushed for the re-opening of the ‘Stillwell road’, as a trade route from Assam
to China’s Yunnan province. When the Stillwell Road was closed in 1962 [after
the Sino-Indian war], the movement of border trade was also restricted.
Re-opening this road would open up numerous options. The statement is
significant as the government has so far been silent on progress of the ‘BCIM’ corridor that
runs from India to China via Bangladesh and Myanmar, and could run over the
‘Stillwell’ route built during the Second World War. The issue was
raised by Chinese President Xi Jinping during his visit to India, but only
found a passing reference in the India-China joint statement. Tensions over the
LAC between India and China since then have also slowed progress on discussions
over the trade route. The Minister, speaking at Pune’s Symbiosis
University on the Modi Government’s ‘Look East Act East’ policy, stressed the
need for closer integration of the States of the north-east with the rest of
the country.
Ø The Gujarat government announced a relief
package of Rs. 1,100 crore for farmers in the State. The package
includes Rs. 600 crore worth of subsidy on interest for agriculture loans and
Rs. 500 crore on power bills. This year, the district cooperative banks
and nationalized banks have disbursed loans to the tune of Rs. 2,100 crore. The
interest on this amount is Rs. 1,200. The State government has decided to cover
50 per cent of the interest by paying Rs. 600 crore to the banks. Similarly, it
would give Rs. 500 crore to power companies to cover 50 per cent of the total
electricity bill of farmers, which stands at Rs. 900 crore.
Ø Foreign companies selling goods worth over
Rs.300 crore to the government or public sector undertakings would have to
source part of their supplies from domestic manufacturers, according to the new
draft National Offset Policy (NOP). According to the draft policy prepared by the Commerce
Ministry, the minimum value of the offsets obligation will be 30 per cent of
the estimated cost of the import, meaning the company will have to procure this
percentage from local players to boost domestic manufacturing. This was
proposed by the Ministry in the draft policy, which would be considered the
Committee of Secretaries, headed by the Cabinet Secretary, by the end of this
month and then it would be approved by the Union Cabinet. Besides, it
would help in attracting investments; transfer and acquisition of new
technology; acquisition of raw material and assets; improving balance of
payment; increasing capacity for R long-term supply pacts; and enhancing
exports. Sectors which will be covered under the NOP include civil
aerospace, power, fertilizer, railways and other transportation, ports and
shipyards, mining, medical equipment, medicine and telecom. However sectors
including defence, atomic energy and space would not be covered under the
policy. The defence sector has a separate policy while atomic energy and
space would pursue offsets in their contracts independently. For smooth
operation of the NOP, a 10-member National Offsets Authority (NOA) is also
proposed. It would be headed by the Cabinet Secretary and comprise
secretaries of commerce, expenditure, foreign, economic affairs and Directorate
General of Foreign Trade.
Ø As industry opposition mounts against new
delisting norms wherein promoters planning to take their company private have
to secure the consent of 25 per cent of public shareholders, the Securities and
Exchange Board of India (SEBI), on Monday, indicated that it was ready to have
a re-look at them. The SEBI norms issued last month, which mandate
participation of at least 25 per cent public shareholders in the delisting
process, has also drawn criticism from market participants.
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