Economy News- Daily Digest: 6 Key Updates
1. 1% tax at source under GST likely for online sellers
The Centre and states are likely to each impose a 0.5% tax collected at source on sellers of products on e-commerce websites such as Flipkart and Amazon under the goods and services tax (GST) regime. This proposal would be taken up at the two-day meeting of the GST Council. The tax will be collected by the e-commerce marketplaces: They will deduct 1 %while paying the sellers.
2. Govt to revise PMUY target to 80 mn connections in 3 yrs
The petroleum ministry has sought additional budgetary support of Rs 4,800 crore for adding another 30 million customers to its scheme for providing cooking gas to the poor, the Pradhan Mantr Ujjwala Yojana (PMUY). The ministry wants to revise the target of providing 50 million gas connections in the PMUY in three years, for which the government has allocated Rs 8,000 crore, to 80 million. The government pays Rs 1,600 for liquefied petroleum gas (LPG) connections to families below the poverty line in this scheme.
3. India ranks second in EY renewables list
India has been placed in the second spot in the renewable energy country attractiveness index by Ernst and Young.
Over 10 gigawatt (Gw) of solar power was added between 2015 and 2017 and wind energy capacity grew to 5.4 Gw in 2017-18. This growth is in the context of the government’s ambitious targets – 175 Gw of renewables by 2022, with 40% installed capacity from renewables by 2030 and the dramatic price falls in photovoltaic technology.
The report cites that China, which has been ranked first in the index, and India have surpassed the US, which fell for the first time since 2015 to third place in the ranking of top 40 countries, follows a marked shift in the US policy under the new administration.
4. BHEL bags Rs. 233-cr order from Ramagundam Fertilizers
Bharat Heavy Electricals Ltd has bagged an order for supply of a steam and power generation package from Ramagundam Fertilizers and Chemicals Ltd, a project which is being revived. The Rs. 233-crore order was bagged by the state-owned public sector undertaking amidst stiff international competitive bidding process, the company informed in a statement.
The order has been placed on BHEL for setting up the package at RFCL’s fertiliser plant at Ramagundam in Telangana.
The scope of BHEL’s contract includes design, engineering, manufacture, supply erection and commissioning of a 32.5-MW gas turbine, 125 TRH Heat Recovery Steam Generator, 85 TPH Utility Boiler and Balance of Plant package along with associated auxiliaries.
5. LIC rolls out Jeevan Umang, a new assured benefit plan
Life Insurance Corporation of India launched ‘Jeevan Umang’, a plan which, among others, offers cover up to the age of 100, annual survival benefits from the end of the premium-paying term till the age of 99, and a lumpsum payment at the time of maturity or on death of the policyholder.
The guaranteed survival benefit is payable on the life assured surviving to the end of the premium-paying term, provided all due premiums have been paid or the paid up value is Rs. 2 lakh or more.
The survival benefit will be equal to 8% of basic sum assured and paid up sum assured, respectively. The first survival benefit payment is payable at the end of the premium-paying term and thereafter on completion of each subsequent year till the life assured survives or till the policy anniversary prior to the date of maturity, whichever is earlier.
Jeevan Umang is available from age 90 days to 55 years. There is no upper limit to the basic sum assured but it has to be in multiples of Rs. 25,000, with premium paying term options of 15, 20, 25 and 30 years.
6. KVG Bank loan for integrated farming
Karnataka Vikas Grameen Bank (KVGB) has launched a new loan product, Vikas Krishi Samruddhi, to help farmers to take up integrated farming.
A maximum loan of up to Rs. 2 lakh will be provided under the scheme. The loan is repayable over a period of five years in half-yearly or yearly instalments.
Though the scheme is well-suited for farmers with marginal holdings, all farmers are eligible under the scheme. Farmers can take up construction of ponds and undertake intensive cultivation.