saturday pli schemes for 10 sectors to be notified by march
TRANSCRIPT
................CMYK
CHENNAI
BusinessLineSATURDAY • FEBRUARY 6 • 2021 3NEWS
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OUR BUREAU
New Delhi, February 5
India has so far administeredthe fi��rst dose of Covid19 vaccine to close to 53 lakh benefi��ciaries, including 3.31 lakh vaccinated on Friday, according tothe Health Ministry.
Till 6 pm on Friday, a total of52,90,474 benefi��ciaries havebeen vaccinated in 1,04,781 sessions since January 16, the Ministry said. As many as 22 deathshave been reported among thevaccinated people, includingone in the last 24 hours. Thelatest death was from Agrawhere a 77yearold man, whowas vaccinated seven days ago,died of shock. He also had a preexisting condition of diabetes.
Apart from healthcare work
ers, frontline workers,too, arebeing given the vaccine shotssince early this week. Answering a supplementary questionin the Lok Sabha, the government said the third leg of thecurrent phase of vaccination,where people above 50 yearsand those with comorbiditiesto be inoculated, will com
mence next month. The Ministry said there were a total of27 vaccinationrelates hospitalisations so far which wascontrary to what was mentioned by the Health Secretary Rajesh Bhushan onThursday. Bhushan had saidthat there were 34hospitalisations.
Close to 53 lakh have received the fi��rst dose of Covid19 vaccine
A total of 52,90,474 benefi��ciaries have been vaccinated in
1,04,781 sessions
MAMUNI DAS
New Delhi, February 5
The Railways’ operating ratiohas crossed 100 in fi��scal 2020and fi��scal 2021 due to revenuepressure, given that the publictransporter has to bear not justthe staff�� salaries but also pension expenses.
The operating ratio is theamount of money the Railwayshas to spend to earn ₹��100. A
lower operating ratio impliesbetter fi��nancial health.
“If the Railways were to setaside funds for its pensionfund from its own revenues in201920 and 202021, the operating ratio would worsen to
114.19 per cent and 131.49 percent respectively,” according tooffi��cial documents.
Indian Railways, which hasabout 12 lakh government employees and equal number ofpensioners, continues to meetits pension cost, though itsbudget was merged withUnion Budget, making it theonly such government body todo so.
Pandemic impact“The required appropriationto pension fund in 201920 is₹��48,350 crore at Revised Estimates, and ₹��51,000 crore in202021,” the Railways said in
the budget documents. Supported by a Covid19 loan of₹��79,398 crore from the FinanceMinistry, the Railways has estimated an operating ratio of96.96 for the ongoing fi��scal.
The Budgetary support forthe Railways in the currentfi��scal is at ₹��1.08lakh crore,which includes the specialloan for ‘Covid19related resource gap’.
The operating ratio in theongoing fi��scal is better than98.36 in fi��scal 201920, a yearwhen facing a drop in demand,the Railways had to slash itsfreight rates midyear to bringmore goods into its fold.
Pension expenses of
public transporter
widen Covid-related
resource gap
Railways’ operating ratio slips to114% in FY20 and 131% in FY21
Appropriation to pension fund is
₹��51,000 crore in 202021
OUR BUREAU
New Delhi, February 5
The Centre is hopeful that theProduction Linked Incentive(PLI) schemes for all 10 sectors approved by the UnionCabinet late last year will receive required clearancesfrom the Expenditure FinanceCommittee (EFC) and a subsequent nod from the Cabinet and be duly notifi��ed byMarch 31, Department ofPolicy for Investment and Internal Trade (DPIIT) SecretaryGuruprasad Mohapatra hassaid.
The PLI proposal for AirConditioners and LEDs, underthe DPIIT, has already beenapproved by the EFC with anoutlay of ₹��6,238 crore andwill extend an incentive of46 per cent on incrementalsale to eligible companies. Onthe Budget decision of increasing FDI limit in insurance companies to 74 percent from 49 per cent, Mohapatra said that onceamendment in the InsuranceAct is moved, the changes canbe notifi��ed.
Addressing a press briefi��ng
on Friday, he added that allnecessary safeguards that theInsurance Regulatory and Development Authority feels relevant would be incorporatedto protect the sensitive sector.Elaborating on the PLIscheme, Mohapatra said thatwhile individual schemes for
all ten sectors – ACC battery,electronic tech, auto and autocomponents, pharma drugs,telecom, textile, food, solar PVmodules, LED & ACs and speciality steel – were expected toget notifi��ed by the end of thefi��nancial year, it could takeanother twothree months forbenefi��ciaries to be identifi��ed.
‘Game changer’The government has committed nearly ₹��1.97lakh crore inthe next 5 years starting in202122 to help bring scaleand size . “The PLI scheme willbe a game changer in termsof promoting global champions. The focus is to promotemanufacturing not only for
the domestic market but alsofor the world by achieving acertain scale and quality,” hesaid.
A systematic exercise tominimise regulatory compliance burden through simplifi��cation, rationalisation, digitisation and decriminalisationin the current regulatory regime is also likely to makesignifi��cant headway acrossCentral Ministries and Statesby August 15, the DPIIT Secretary said.
Mohapatra said that thePrime Minister himself wasmonitoring the exercise. TheDPIIT was also coordinatingminimising of regulations being undertaken by States.
Identification of beneficiaries, who could enjoy
4-6% incentives, to take another 2-3 months
PLI schemes for 10 sectors to benotified by March 31: DPIIT Secretary
Officials say the scheme will be
a game changer in terms of
promoting global champions
OUR BUREAU
New Delhi, February 5
The Finance Ministry on Fridayclaimed that the Direct Tax disputeresolution scheme Vivad se Vishwas has helped to settle casesworth over ₹��97,000 crore. It received so far 15 times better response compared to 2016’s similarsScheme
Under the scheme, so far 125,144cases have opted for the Vivad seVishwas (VsV) Scheme which is24.5 percent of the entire longpending over 5.10 lakh cases thatwere in various tax disputes at different legal fora.
Sources said that the Vivad seVishwas Scheme has received 15times better response in comparison to Direct Tax Dispute Resolution Scheme, 2016 (DTDRS) andwith regard to the settled disputedamount it is 153 times of DTDRS. Itmay be noted that earlier such taxdispute resolution schemes likeKar Vivad Samadhan Scheme, 1998(KVSS) and DTDRS could not gathermuch momentum. The 1998’s KVSScheme could gather merely ₹��739crore with just a few thousand
cases while the 2016’s DTDRScheme resolved just 86 hundredand odd cases only worth anamount of ₹��631 Crore.
Unlike its earlier counterparts,Vivad se Viswas scheme has underits ambit all appeals or SLPs till Supreme Court pending as onJanaury 31, 2020. It allows coveringmatters pending before DisputeResolution Panel (DRP) or wheredirections have been issued but order not passed by DRP on or beforeJanuary 31, 2020. Even the Revisionpetitions (under section 264) fi��ledon or before the said date are alsocovered.
DR CommitteeSources said that the setting up ofthe Dispute Resolution Committee (DRC) announced in the recentbudget presented in the Parliament on Monday is very much infurtherance of the VsV Scheme. Un
der DRC, further impetus is to beprovided to resolve the litigationsin the best interest of the small taxpayers in a Tax Lok Adaalat formatwhich would bring transparencyand accountability in a facelessmanner. It may be noted that it isdue to this huge response the lastdate to opt for VsV has been furtherextended till February 28.
The Scheme was introducedwith the objective to reducepending income tax litigation,generate timely revenue for theGovernment and to benefi��t taxpayers by providing them peace ofmind, certainty and savings on account of time and resources thatwould otherwise be spent on thelongdrawn and vexatious litigation process. The Direct Tax Vivadse Vishwas Act, 2020 was enactedon March 17.
Receives better
response than similar
scheme in 2016
‘1.25 lakh cases, amounting ₹��97, 000 cr,settled under Vivad se Vishwas Scheme’
Vivad se Viswas scheme has under
its ambit all appeals or SLPs
OUR BUREAU
Mumbai, February 5
The cut in import duty is expected to exert pressure ofsteel companies to reducedomestic prices. To protectthe interests of the enduserindustries of steel, theBudget announced a reduction in custom duty on fl��atsteel products to 7.5 per centfrom 12.5 per cent and onlong products to 7.5 per centfrom 10 per cent.
ResistanceSteel prices was increased inJanuary to a record high of₹��58,000 a tonne and was
rolled back to ₹��56,000 atonne due to strong resistance from the enduser industries. The duty reductionon steel products wouldmake their imports morecompetitive and in turn exert nearterm pricing pressures on domestic steelmakers, said ICRA in astatement.
Domestic hotrolled coil
prices witnessed a steep riseof about 54 per cent from₹��36,250 a tonne since lastJune on back of strong recovery in the domestic demandand increase in internationalsteel prices.
‘Won’t affect imports’Jayanta Roy, Senior VicePresident, ICRA said the reduction in duties will not aff��ectimports from countries likeSouth Korea and Japan, withwhich India has a Free TradeAgreement. However, imports from China and othernonFTA countries would become more costcompetitivenow.
At the current duty structure, Chinese export HRCprices are at 10 per cent dis
count to domestic prices.Considering the lead time ofabout two months for the imports to arrive at the Indianshores, domestic HRC pricescould correct by up to 10 percent by Marchend, he said.
ICRA, however, expects domestic steel demand to remain favourable on the backof several positive announcements made in the Budget.This in turn is likely to keepdomestic steel prices buoyant unless the internationalprices correct signifi��cantlyfrom the current levels. Domestic steel consumptionwould receive a boost fromthe GoI’s continued thruston infrastructure with a 26per cent higher capitaloutlay.
Imports from China
are now 10% cheaper
Domestic steel prices to come under pressure
Steel prices increased in Jan to a
record high of ₹��58,000 a tonne
SHISHIR SINHA
New Delhi, February 5
A manufacturer will now be ableto use imported raw material foroutsourced work also with thelatest Union Budget proposingto ease the norms.
The Budget has amended Customs (Import of Goods at Concessional Rate of Duty) Rules,2017 to allow jobwork of the materials (except gold and jewellery and other preciousmetals) imported under concessional rate of duty. Also, it will allow 100 per cent outsourcing formanufacture of goods onjobwork.
Helping smaller unitsA senior offi��cer of Central Boardof Indirect Taxes and Custom(CBIC) explained that this willhelp a big industrial organisation to support smaller units engaged in outsourcing work andthese smaller units will not berequired to spend resources oncompliance. The existing norm
stipulated use within the ownfactory premise. Further, an effort has been made to lower therelease time of goods from port.It will now be mandatory barring ‘short haul cases’ to fi��le billof entry before the end of theday preceding the day (including holidays) of arrival of goods.
“Advance fi��ling will help inbetter risk management besideascertaining whether goodsneed to be scanned. Also, importer can pay the duty in advance,” the offi��cer explained.However, consignment comingfrom, say Sri Lanka, or someother neighbouring countrymay be exempted as sailing timeis a day or two. Also, there havebeen instances that ship hasreached, but paper takes time.
There will also be complete
online system for trades. According to the Finance Bill, “theBoard may notify a commonportal, to be called the CommonCustoms Electronic Portal, for facilitating registration, fi��ling ofbills of entry, shipping bills,other documents and forms prescribed under this Act or underany other law for the time beingin force or the rules or regulations made thereunder, paymentof duty and for such other purposes, as the Board may, by notifi��cation, specifi��ed.”
One of the key concerns oftrades have been timely completion of investigation. “Earlier,there was no fi��xed time framefor completion of investigationand thus causing problems forbusinesses,” he said. Now, it hasbeen decided to fi��x a time frameof two years with extension inspecial situation.
Accordingly, a new section isbeing introduced prescribing atwoyear timelimit, further extendable by one year by theCommissioner, for completionof any proceedings under thisact which would culminate in issuance of a notice under section28 of the Customs Act, 1962.
Advance intimation of
import consignment
to be mandatory
Efforts being made to lower release
time of goods from port
Manufacturers can now use imported raw materials for outsourced work
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S.SARAVANAN, B.E., L.L.B., ADVOCATEC-36, 5th Cross (West Extn), Thillai Nagar, Trichy - 620 018.