Economy News-Daily Digest: 5 Key Updates
1. Public, private banks ink pact for faster resolution of stressed assets
Leading public and private sector banks agreed to put in place an Inter Creditor Agreement to ensure faster resolution of stressed assets, as this document will put the onus of deciding action in cases of stressed assets on the respective lead banks. This was decided in a day-long meeting of the leading banks, which was also attended by Finance Minister Piyush Goyal and representatives of the Indian Banks Association.Banks have used the voting shares presented in the Insolvency and Bankruptcy Code (IBC) to structure the Inter Creditor Agreement. Accordingly, if 66 per cent of the lenders agree to any particular decision with regard to a stressed asset, it will be enforceable on the other banks. The pact is likely to be used for accounts outside IBC framework.
Through the pact, financial institutions will authorise the lead bank to implement a resolution plan in 180 days. The lead bank would then prepare a resolution plan including empanelling turnaround specialists, and other industry experts for operational turnaround of the stressed asset.
A Committee headed by Mehta to study feasibility of setting up an Asset Management Company to deal with bad loans, had suggested the idea of an Inter Creditor Agreement in its report released. The government subsequently announced a banks-led, five-pronged plan named Sashakt, for the resolution of stressed assets with public-sector banks (PSBs), including creation of one or more widely held asset management firms for loans above Rs 500 crore.
Mehta said the Committee the Committee is working on the creation of AMC and next steps will be discussed in the future. The measures are being taken to contain the non performing assets (NPA) in the banking system, which are expected to rise further.
2. Indore Municipal Corporation lists its bonds on NSE
After municipal corporations of Hyderabad and Pune, Indore Municipal Corporation (IMC), the civic governing body of the city of Indore, ranked as the cleanest city in the country had its municipal bonds listed on the debt securities platform of the National Stock Exchange of India (NSE).
Indore Municipal Corporation issued bonds aggregating Rs 100 crore with green shoe option of Rs 70 crore on June 29 and received an overwhelming response with an over-subscription of 1.26 times.
The municipal bonds of the Indore Municipal Corporation have earned the distinction of being the first-ever municipal bonds to list on the debt market platform of the NSE.
Indore Municipal Corporation will be the third in the country to issue the municipal bond for implementation of the Central government scheme – AMRUT and Swacch Bharat Mission.
3. CBIC launches GST ‘Verify App’ to protect interest of consumers
The Central Board of Indirect Taxes and Customs (CBIC) has developed a mobile app ‘GST Verify’ to protect interest of consumers.
It is an android app to verify if the person collecting GST from the consumer is eligible to collect it or not. It also provides the details of the person/ company collecting GST.
It further said that a Composition Tax Payer should not collect the tax from his consumer.
This app, developed by B Raghu Kiran joint commissioner GST Hyderabad, can be used all across the country.
4. Agartala airport to be renamed as “Bir Bikram Kishore Manikya” owing a gift to the people of Tripura
Agartala Airport in Tripura will now be termed as ‘Maharaja Bir Bikram Manikya Kishore Airport, Agartala. The decision comes in the wake of the long pending demand of people of Tripura as well as the Tripura government for paying tribute to Maharaja Bir Bikram Manikya Kishore.
Manikya Kishore, who ascended the throne of the erstwhile Tripura Princely State in 1923, was an enlightened and benevolent ruler. Agartala Airport was constructed in 1942 on the land donated by Maharaja Bir Bikram Manikya Kishore.
As a visionary ruler, who had traveled extensively across the globe, he took several steps for the all-round development of Tripura. Due to his initiative, an airport at Agartala was constructed that has evolved as the second busiest airport in the North East and provides crucial air connectivity to Tripura. It is apt to rename the Agartala Airport after his name, which will be a befitting tribute to Maharaja Bir Bikram Manikya Kishore.
5. Shri Piyush Goyal launches the Coal Mine Surveillance & Management System (CMSMS) and ‘Khan Prahari’ App
Union Minister of Coal, Railways, Finance & Corporate Affairs, Shri Piyush Goyal launched the Coal Mine Surveillance & Management System (CMSMS) and Mobile Application ‘Khan Prahari’ developed by CMPDI, Ranchi a Subsidiary of CIL and Bhaskarcharya Institute of Space Application and Geo-informatics (BISAG).
The basic objective of CMSMS is reporting, monitoring and taking suitable action on unauthorised coal mining activities. The CMSMS is a web based GIS application through which location of sites for unauthorised mining can be detected. The basic platform used in the system is of Ministry of Electronics & Information Technology’s (MeiTY) map which provides village level information. The leasehold boundary of all the coal mines are displayed on this map. The system will use satellite data to detect changes by which unauthorised mining activity extending beyond the allotted lease area can be detected and suitable action can be taken on it. It is the working of the concept of ‘cooperative federalism’ in action. The complaint originating from coal mines allotted to Coal India will go to Coal India Offices and those originating from coal blocks not allotted to Coal India will go straight to the State Government Officers and for each complaint the alert will also go to the District Magistrate and SP of the district.
The system also uses information provided by responsible citizens using smartphones using the mobile application “Khan Prahari’. Khan Prahari is a tool for reporting any activity taking place related to illegal coal mining like rat hole mining, pilferage etc. One can upload geo-tagged photographs of the incident along with textual information directly to the system. Hence, both satellite data and human information will be used to capture information on the unauthorised mining activities. Once reported, the information will be automatically directed to the nodal officers to take suitable action on those activities. The complainant can also track his complaint through the system. The identity of the complainant shall not be revealed. This app can easily be downloaded in Android and IOS.
The uniqueness of the system is that it uses satellite data as well as public input to capture information on unauthorised coal mining activities and also take appropriate action on them with due transparency.
The CMSMS will also provide other important information like reclamation work being done by Coal India Limited which is being monitored every year by CMPDI using satellite data. Status of Environmental Clearances /Forest Clearances etc. are also linked for information in this system.