OPINION, P6 ECONOMY, P2 EDITORIAL Making 75% of welfare-spend via DBT is a big feat INTERNATIONAL, P4 A GULATI & S SAINI TELECOM TUNING TARIFF TRIGGER Modi’s plan to double farmers’ income by 2022 is nothing but a pipe dream Govt harmonising spectrum for 5G, says Aruna Sundararajan Xi-led China says it does not want a trade war with US MUMBAI, MONDAY, MARCH 5, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XXXXXV NO. 297, 16 PAGES, `6.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E Govt, Oppn set to lock horns as Budget session resumes today SC ORDER ON MMDR ACT Miners staring at debilitating fines TAKING CUE FROM the ONGC buyout of HPCL, the government may now look at replicating the same in the insurance sector by asking a cash-rich PSU general insurer to buy out the smaller ones, reports PTI. A finance ministry official said apart from buy out by cash-rich general insurers, a share-swap could also be considered for smaller insurers. Recovery sought from four Coal India arms by Odisha and Jharkhand; Odisha's demand for `20,169 crore contested by Mahanadi Coalfields; others file review plea with coal ministry ~`20,000 crore Amount sought from a large cross-section of non-coal miners, public and private; `11,000 crore already paid by them or a statutory requirement.” Curiously, even though the court hasn’t expressly said the judgmentwouldextendtocoal mining — the orderwas issued on a PIL filed in the context of the MP Shah Commission of Inquiry on illegal mining of iron ore and manganese —, state-run Coal India’s arms too have received show-cause notices by the two states, asking why they are not (collectively)liabletopayfinesofover `41,000 crore, under the Section 21 (5) of the Mines & Mineral Development Regulations (MMDR) Act, 1957. Mahanadi Coalfields has been asked by Odisha to pay `20,169 crore, while Jharkhand authorities SAIL 1,694 Tata Steel 614 OMC 2,178 Sarada 1,939 BPMEL 862 Rungta 764 RP Sao 1,127 Mid East 925 Serajuddin 755 are learnt have demanded several thousands of crores from Coal India’s three other subsidiaries — ECL,BCCLand CCL. Forperspective,India’scash reserves are now around `38,000 crore; the company reported a net profit of `9,266 crore in FY17; and profits of `2,352 crore, `369 crore and `3,005 crore in Q1,Q2 and Q3 in FY18,respectively. Tomaketheorderapplicable tocoalmining,statesarerelying onanaffidavitbytheministryof mines to the court, which the lattercited in the judgment. Continued on Page 2 Goa may lose `3,500 crore, 2 lakh jobs on SC order, Page 3 SAUBHAGYA IMPRESSIVE... Special Features Cyber crime: Hidden dangers of the digital age Ransomware, which is the fastest growing cyber crime, is set to increasingly target mobile systems, with Android ransomware kits already beginning to appear on marketplaces. ■ EFE, P8 PFRDA proposes 75% equity cap for NPS active choice A PFRDA concept note says returns given by life cycle fund in auto choice having equity cap at 75% is maximum as compared to the other two life cycle funds ■ Personal Finance, P9 QuickPick Major ports to form SPVs to develop 111 rivers as NWs IN A special move aimed at promoting inland water transport, India's top 12 major ports will create SPVs to develop 111 rivers across India, Union minister Nitin Gadkari said, reports PTI. "Given the vast potential of rivers for inland transport, we have decided that 12 major ports will constitute special purpose vehicles to develop rivers," Gadkari said. PAGE 3 ... but slack progress in other two major electricity schemes ANUPAM CHATTERJEE New Delhi, March 4 EVEN THOUGH THE government’s household electrification programme (Saubhagya) has kicked off on a relatively encouraging note — 26.3 lakh householdshavegotelectrified under this since its launch in September 2017 —, its other schemes meant for addressing thecountry’sricketyelectricity infrastructure have made only tardyprogress so far. For instance, under the Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY), which waslaunchedinJuly2015with an objective to improve rural electrification,only15,244circuitkm(ckm)offeedersegregation has been achieved so far, while the target was to put in place 1.6 lakh ckm before the start of 2018-19.Feeder segregationismeanttopreventmisuse of subsidised agricultural power supply and improve the distribution companies’aggregate technical and commercial (AT&C) losses. Only 35.4 lakh Under-performing schemes Target (by March 2018) Achievement DDUGJY Feeder segregation (ckm) 1,59,801 15,244 Metering (households) 150 lakh 35.4 lakh IPDS Sub-stations 1,097 155 Smart/prepaid meters 3.12 lakh 1,181 out of the 150 lakh DDUGJY consumers have been metered so far,and a mere 215 newsubstations have been constructed versus a target of 1,825. Continued on Page 2 TURN OF CYCLE Puri: Loan, deposit rates set to go further up SHAYAN GHOSH Mumbai, March 4 IN A CLEAR indication that the rate cycle has turned,loan and deposit rates are all set to go further up, HDFC Bank managing directorAditya Puri told FE. “Deposit rates will go up so will loan rates. As soon as our asset-liability committee (ALCO) meets, we will look at the situation,” he said, adding that the cycle is changing and interest rates will go up; bond rates will also go up and the yield on the 10-year govern- ment security will be in the range of 7.7-7.8%. Some large lenders like State Bank of India (SBI),ICICI Bank and Punjab National Working capital demand has picked up... On project finance too, greenshoots visible. — ADITYA PURI HDFC BANK MD Bank (PNB) have raised oneyear marginal cost of fundsbased lending rate (MCLR) in the range of 10-20 basis points (bps). Some lenders like SBI have also raised their retail deposit rates by 10-15 bps. Interestingly, HDFC Bank raised its MCLR by 10 bps in February signalling an upward trend in loan rates. While the lowest one-year MCLR is at 8.15%,a deposit of the same tenure earns an interest of 6.4% in SBI and 6.75% in HDFC Bank. According to Puri,working capital demand has already picked up and it will largely remain with the banks. Continued on Page 2 Frame by frame I&B minister Smriti Irani at the Ficci-Frames 2018 inaugural ceremony, in Mumbai on Sunday EXPRESS PHOTO: KEVIN DSOUZA Reports on Page 5 Details on Page 14 CENTRE'S WELFARE PAYMENTS Massive 75% to be on DBT platform in FY19 PRASANTA SAHU New Delhi, March 4 THE CENTRE WILL have managed to make direct benefit transfer (DBT) payments — 80% in cash and the balance under in-kind schemes — of around `1,50,000 crore in 2017-18, almost double the amount lastyear and 35% of its annual spending of `4,00,000 crore on subsidies and various other doles. While this is moderate progress,three-fourths of the Theft is out, DBT is in 75% of central subsidies/benefits could be distributed via DBT in FY19 (` crore) FY18 ` ~300,000 IN THE NEWS Cash-rich PSU insurer may be asked to buy out smaller ones DEMANDS ON SOME FIRMS (` cr) ~400,000 SEVERALSTATE-RUNANDprivate companies with principal orincidentalinterestinmining are being forced to cough up huge sums, potentially aggregating soon to `1 lakh crore,as mineral-richOdishaandJharkhand have slapped recovery notices on them for “illegal mining”. In some cases the amount being demanded is big enough to wipe out the entire cash reserves of the firm concerned and substantially erode its net worth, besides crippling its mining activities. These state governments are now armed with a broader definition of “illegal mining” thanks to an August 2017 Supreme Court judgment which, among other things, said: “Illegal mining takes withinitsfoldexcessextraction of a mineral over the permissible limit even within the mining lease area which is held under lawful authority, if that excess extraction is contraryto theminingscheme/plan/lease >`41,000 crore ~150,000 SURYA SARATHI RAY New Delhi, March 4 BEING ILLEGAL, EASILY ~400,000 Aggregate demands by Jharkhand, Odisha, others to touch `1 lakh cr; >`11,000 cr already paid; CIL arms too face hefty penalties THE RULING BJP, buoyed by its impressive performance in threestatepolls,andtheOpposition, armed with the issue of banking scam,are likelyto lock horns over a number of contentiousmattersinParliament which reconvenes on Monday. Both houses of Parliament will meet after a month-long recess in the Budget Session, duringwhichthepassageofthe Fugitive Economic Offenders Bill,whichseeksconfiscationof assetsofabscondingfraudsters andloandefaulters,willbehigh on the government’s agenda. FY19 In addition, states also moving to distribute part of their annual `300,000 cr subsidies via DBT Total subsidy, other benefits by Centre via DBT Centre’s welfare budget — subsidies plus other sops under the likes of job guarantee and scholarship schemes — will likely be disbursed through the DBT platform in 2018-19. This assumes, on the basis of field data,that food and fertiliser subsidy distribution will have almost fully shifted to the Aadhaar-enabled platform well before the start of the year. Continued on Page 2
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