Bereft of funds, the Finance Ministry wants Oil &amp; Natural Gas Corp (ONGC) and Oil India Ltd (OIL) to initially spend the Rs 3,200 crores ($390mn)&nbsp;required for drilling wells to find oil and natural gas in the high seas.

“ONGC and OIL will take up this work on behalf of the Ministry of Petroleum &amp; Natural Gas and the cost for drilling of these wells would be initially borne by ONGC and OIL,” says the Expenditure Finance Committee (EFC) order.

The Petroleum Ministry had sought budgetary support to drill four stratigraphic wells in Category II and Category III basins in India’s offshore region to obtain critical data for a robust modelling of petroleum reserves. Usually, the Directorate General of Hydrocarbons conducts such searches through budgetary support.

Though the Expenditure Department had approved the ministry’s hydrocarbon hunt, the EFC – headed by Finance Secretary -- decided that ONGC and OIL bear the expedition cost and their losses, if any, in this venture be reimbursed through gross budgetary support.

<a href="https://www.wionews.com/india-news/india-starts-oil-production-from-delayed-5-billion-deep-water-project-in-krishna-godavari-basin-677894">Also read |&nbsp;India starts oil extraction from $5 billion deep-water project in Krishna Godavari basin</a>

The onus of initial spending was shifted onto ONGC and OIL as the EFC said that fiscal constraint was a major issue and that the “fiscal situation had changed post presentation in the Budget”.

Officials said that subsequent to the budget announcement, there has been substantial increase in the expenditure on the revenue side which was not envisioned in the budget. As a result, there was not much fiscal space available.

The EFC has therefore ordained that “ONGC and OIL will take up this work on behalf of government. They will engage international expertise for the determination of well location. The cost&nbsp;incurred for drilling these wells would be borne by ONGC and OIL”.

“In case a discovery is made, the drilling cost would be recovered from successful bidders. However, when no discovery is made (in case of dry well), 90 percent of the estimated cost of Rs 3,200 Crores or the actuals, whichever is lower, will be borne by the government through gross budgetary support,” it said.

What that means is that if a discovery is made, 150 per cent of the drilling cost of the discovered well shall be recovered from the successful bidder whenever the block is awarded through the Open Acreage Licensing Policy regime.

In case no discovery is made, or the well is found dry, data from the well would be differentially priced so that at least 10 per cent of the cost is recovered from the purchasers of the well data from the National Data Repository.

For calculating the unrecovered expenditure on the drilling, the total cost of all four wells and the total recovery from all four wells shall be considered and the shortfall will be treated as “unrecovered actual expenditure”.

This expenditure will be reviewed by a committee under the chairmanship of Petroleum Secretary along with officials of NITI Aayog and Office of Chief Advisor Cost, and it will work out the amount to be reimbursed to the two national oil companies.

The committee will submit its recommendation to the Petroleum Minister who would approach the Budget Division in the Department of Economic Affairs for budgetary support.

Also watch |&nbsp;PM Modi in Goa: Key projects to be unveiled

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/pm-modi-in-goa-key-projects-to-be-unveiled-687411/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

India’s&nbsp;primary objective of drilling these wells is to gather stratigraphic information of the basin and to understand the depth of play systems so that private operators are encouraged to take up exploration and production in them.

Stratigraphy is&nbsp;a branch of geology concerned with the study of rock layers (strata) and layering (stratification). It is primarily used in the study of sedimentary and layered volcanic rocks. It is used for preparing property maps to get a possible regional trend which can give the components of depositional environment.

&nbsp;

Bereft of funds, the Finance Ministry wants Oil & Natural Gas Corp (ONGC) and Oil India Ltd (OIL) to initially spend the Rs 3,200 crores ($390mn) required for drilling wells to find oil and natural gas in the high seas.

Bereft of funds, the Finance Ministry wants Oil & Natural Gas Corp (ONGC) and Oil India Ltd (OIL) to initially spend the Rs 3,200 crores ($390mn) required for drilling wells to find oil and natural gas in the high seas. “ONGC and OIL will take up this work on behalf of the Ministry of Petroleum & Natural Gas and the cost for drilling of these wells would be initially borne by ONGC and OIL,” says the Expenditure Finance Committee (EFC) order. The Petroleum Ministry had sought budgetary support to drill four stratigraphic wells in Category II and Category III basins in India’s offshore region to obtain critical data for a robust modelling of petroleum reserves. Usually, the Directorate General of Hydrocarbons conducts such searches through budgetary support. Though the Expenditure Department had approved the ministry’s hydrocarbon hunt, the EFC – headed by Finance Secretary -- decided that ONGC and OIL bear the expedition cost and their losses, if any, in this venture be reimbursed through gross budgetary support. Also read | India starts oil extraction from $5 billion deep-water project in Krishna Godavari basin The onus of initial spending was shifted onto ONGC and OIL as the EFC said that fiscal constraint was a major issue and that the “fiscal situation had changed post presentation in the Budget”. Officials said that subsequent to the budget announcement, there has been substantial increase in the expenditure on the revenue side which was not envisioned in the budget. As a result, there was not much fiscal space available. The EFC has therefore ordained that “ONGC and OIL will take up this work on behalf of government. They will engage international expertise for the determination of well location. The cost incurred for drilling these wells would be borne by ONGC and OIL”. “In case a discovery is made, the drilling cost would be recovered from successful bidders. However, when no discovery is made (in case of dry well), 90 percent of the estimated cost of Rs 3,200 Crores or the actuals, whichever is lower, will be borne by the government through gross budgetary support,” it said. What that means is that if a discovery is made, 150 per cent of the drilling cost of the discovered well shall be recovered from the successful bidder whenever the block is awarded through the Open Acreage Licensing Policy regime. In case no discovery is made, or the well is found dry, data from the well would be differentially priced so that at least 10 per cent of the cost is recovered from the purchasers of the well data from the National Data Repository. For calculating the unrecovered expenditure on the drilling, the total cost of all four wells and the total recovery from all four wells shall be considered and the shortfall will be treated as “unrecovered actual expenditure”. This expenditure will be reviewed by a committee under the chairmanship of Petroleum Secretary along with officials of NITI Aayog and Office of Chief Advisor Cost, and it will work out the amount to be reimbursed to the two national oil companies. The committee will submit its recommendation to the Petroleum Minister who would approach the Budget Division in the Department of Economic Affairs for budgetary support. Also watch | PM Modi in Goa: Key projects to be unveiled India’s primary objective of drilling these wells is to gather stratigraphic information of the basin and to understand the depth of play systems so that private operators are encouraged to take up exploration and production in them. Stratigraphy is a branch of geology concerned with the study of rock layers (strata) and layering (stratification). It is primarily used in the study of sedimentary and layered volcanic rocks. It is used for preparing property maps to get a possible regional trend which can give the components of depositional environment.

Exclusive: FinMin asks ONGC, OIL to fund India’s hydrocarbon hunt; promises to reimburse losses

Get ready for a New Year bonanza. With the general elections due in the first half of 2024, Prime Minister Narendra Modi’s government is working on huge cuts – upwards of Rs 8 per litre -- in the retail prices of petrol and diesel that would be announced before the calendar year ends.

According to sources, the Petroleum Ministry has prepared a proposal incorporating the cuts ranging from Rs 8 to Rs 10 per litre in both fuels for the Prime Minister’s approval which could come on Thursday.

The rationale for the ministry’s proposal for the huge reductions is the sharp drop in the purchase price of imported crude oil that goes into refineries to produce these two fuels, among others.

Crude oil price&nbsp;during financial 2023-24 (April-March) so far was at an average of $77.14 per barrel with only two months -- September at $93.54 and October at $90.08 – witnessing a spike. The average crude oil price in 2022-23 was $93.15 a barrel.

With ex-refinery prices of the two fuels unchanged since 6 April 2022, the current fiscal’s low crude oil prices have yielded large profits for the three government-run oil marketing companies -- Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL). In the first six months of this fiscal year, IOC, BPCL and HPCL made a combined net profit of Rs 58,198 crore.

<a href="https://www.wionews.com/business-economy/global-oil-demand-faces-sharp-slowdown-as-economic-woes-bite-iea-warns-669940">Also read |&nbsp;Global oil demand faces sharp slowdown as economic woes bite, IEA warns</a>

For the losses in the last fiscal 2022-23 due to $90-plus crude prices, the Union Budget for 2023-24 announced a support of Rs 30,000 crore for the three government-run oil marketing companies as equity infusion under the guise of funding their green carbon initiatives but the money was not devolved due to this fiscal year’s bounty.

Sources said that the price cuts could also be a clarion call from the ruling party of its intention to announce the elections early to ride on the landslide victories in three of the four big states. It would surely help quell the Opposition’s agenda to project inflation as the government’s biggest failure, they added.

On May 22, 2022, the central government reduced the central excise duty on petrol and diesel by Rs 8 and Rs 6 per litre, respectively, to bring down inflation as the two automotive fuels impact the Wholesale Price Index (WPI) with respective weightage of 1.60 per cent and 3.10 per cent in the WPI.

Get ready for a New Year bonanza. With the general elections due in the first half of 2024, Prime Minister Narendra Modi’s government is working on huge cuts – upwards of Rs 8 per litre -- in the retail prices of petrol and diesel that would be announced before the calendar year ends.

Get ready for a New Year bonanza. With the general elections due in the first half of 2024, Prime Minister Narendra Modi’s government is working on huge cuts – upwards of Rs 8 per litre -- in the retail prices of petrol and diesel that would be announced before the calendar year ends. According to sources, the Petroleum Ministry has prepared a proposal incorporating the cuts ranging from Rs 8 to Rs 10 per litre in both fuels for the Prime Minister’s approval which could come on Thursday. The rationale for the ministry’s proposal for the huge reductions is the sharp drop in the purchase price of imported crude oil that goes into refineries to produce these two fuels, among others. Crude oil price during financial 2023-24 (April-March) so far was at an average of $77.14 per barrel with only two months -- September at $93.54 and October at $90.08 – witnessing a spike. The average crude oil price in 2022-23 was $93.15 a barrel. With ex-refinery prices of the two fuels unchanged since 6 April 2022, the current fiscal’s low crude oil prices have yielded large profits for the three government-run oil marketing companies -- Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL). In the first six months of this fiscal year, IOC, BPCL and HPCL made a combined net profit of Rs 58,198 crore. Also read | Global oil demand faces sharp slowdown as economic woes bite, IEA warns For the losses in the last fiscal 2022-23 due to $90-plus crude prices, the Union Budget for 2023-24 announced a support of Rs 30,000 crore for the three government-run oil marketing companies as equity infusion under the guise of funding their green carbon initiatives but the money was not devolved due to this fiscal year’s bounty. Sources said that the price cuts could also be a clarion call from the ruling party of its intention to announce the elections early to ride on the landslide victories in three of the four big states. It would surely help quell the Opposition’s agenda to project inflation as the government’s biggest failure, they added. On May 22, 2022, the central government reduced the central excise duty on petrol and diesel by Rs 8 and Rs 6 per litre, respectively, to bring down inflation as the two automotive fuels impact the Wholesale Price Index (WPI) with respective weightage of 1.60 per cent and 3.10 per cent in the WPI.

Exclusive: Indian PM to announce massive cuts in petrol, diesel prices before year end

Worried over mixed results in the growth of digital payments ecosystems, the Indian Finance Ministry plans to extend the incentives on low-value transactions through RuPay Debit Cards and BHIM-UPI, India’s digital payement system, for the third year while nearly doubling the budgetary outlay to attract more players.

The ministry plans to infuse Rs 50 billion during fiscal year 2023-24, up from Rs 26 billion in 2022-23, to compensate for the discontinued “merchant discount rate” (MDR) that was to be collected as transaction charge by the merchants and paid to the acquirer bank.

Under the scheme, for low-volume transactions that use RuPay cards at point-of-sale or in e-commerce, the merchant’s acquirer bank will get 0.4 per cent, capped at Rs 100, as an incentive.

In case of industry programmes that involve use of RuPay cards in insurance, mutual funds, government, education, railways, agriculture, fuel, jewellery, hospitals, telecom, utility payments, and business/personal services, the incentive will be 0.15 per cent of the transaction, capped at Rs 6.

Similarly, for person-to-merchant (P2M) payments that use BHIM-UPI for transactions up to Rs 2,000, the acquirer bank will get 0.25 per cent of the transaction amount as incentive. For industry programmes, the incentive would be 0.15 per cent of the transaction.

The scheme was introduced in fiscal 2021-22 with an outlay of Rs 14.5 billion to offset the lost MDR, which an acquirer bank subsequently shares with the card-issuing bank (issuer bank) and the network operator.

In the case of BHIM-UPI, the acquirer bank shares the MDR with issuer banks as well as the payer’s payment service providers, third party app providers and other system participants.

Digital payment transactions in India have been expanding but the results have been mixed with UPI growing massively in both volume and value terms, up by 82 per cent and 105 per cent respectively, in fiscal 2022-23 over the previous year, while RuPay has been witnessing a sharp decline of 13.7 per cent in volume terms even though it ticked up 4.2 per cent in value terms during the same period.

The mixed results have spurred the ministry to tweak the scheme on RuPay debit card as well as to add UPI Lite, UPI LiteX, UPI Conversational Payments- Hello UPI in app and UPI 123Pay on BHIM-UPI platform with the stipulation that at least 5 per cent of BHIM-UPI P2M transactions be on UPI Lite and UPI LiteX during the last quarter of the scheme.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/paytm-lays-off-more-than-1000-employees-across-various-departments-report-673430">Paytm lays off more than 1,000 employees across various departments: Report</a>

UPI Lite offers a wallet in BHIM-UPI app for an amount of up to Rs 2,000 on a smartphone, eliminating the need for the user to first obtain electronic authorisation from his bank while making the payment. UPI LiteX enables users to make transactions even in areas with no internet connectivity, such as remote location etc.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/microsofts-windows-10-end-of-support-plan-may-lead-to-massive-pc-disposal-672434">Microsoft's Windows 10 end-of-support plan may lead to massive PC disposal</a>

Sources say the scheme has been approved by the Expenditure Finance Committee and is now awaiting the Cabinet’s approval before disbursement begins on a quarterly mode. However this time, it is being executed by the Department of Financial Services as “Promotion of Digital Payments” after it was transferred from the Ministry of Electronics and Information Technology in July 2023, they said.

&nbsp;

Worried over mixed results in the growth of digital payments ecosystems, the Indian Finance Ministry plans to extend the incentives on low-value transactions through RuPay Debit Cards and BHIM-UPI, India’s digital payement system, for the third year while nearly doubling the budgetary outlay to attract more players.

Worried over mixed results in the growth of digital payments ecosystems, the Indian Finance Ministry plans to extend the incentives on low-value transactions through RuPay Debit Cards and BHIM-UPI, India’s digital payement system, for the third year while nearly doubling the budgetary outlay to attract more players. The ministry plans to infuse Rs 50 billion during fiscal year 2023-24, up from Rs 26 billion in 2022-23, to compensate for the discontinued “merchant discount rate” (MDR) that was to be collected as transaction charge by the merchants and paid to the acquirer bank. Under the scheme, for low-volume transactions that use RuPay cards at point-of-sale or in e-commerce, the merchant’s acquirer bank will get 0.4 per cent, capped at Rs 100, as an incentive. In case of industry programmes that involve use of RuPay cards in insurance, mutual funds, government, education, railways, agriculture, fuel, jewellery, hospitals, telecom, utility payments, and business/personal services, the incentive will be 0.15 per cent of the transaction, capped at Rs 6. Similarly, for person-to-merchant (P2M) payments that use BHIM-UPI for transactions up to Rs 2,000, the acquirer bank will get 0.25 per cent of the transaction amount as incentive. For industry programmes, the incentive would be 0.15 per cent of the transaction. The scheme was introduced in fiscal 2021-22 with an outlay of Rs 14.5 billion to offset the lost MDR, which an acquirer bank subsequently shares with the card-issuing bank (issuer bank) and the network operator. In the case of BHIM-UPI, the acquirer bank shares the MDR with issuer banks as well as the payer’s payment service providers, third party app providers and other system participants. Digital payment transactions in India have been expanding but the results have been mixed with UPI growing massively in both volume and value terms, up by 82 per cent and 105 per cent respectively, in fiscal 2022-23 over the previous year, while RuPay has been witnessing a sharp decline of 13.7 per cent in volume terms even though it ticked up 4.2 per cent in value terms during the same period. The mixed results have spurred the ministry to tweak the scheme on RuPay debit card as well as to add UPI Lite, UPI LiteX, UPI Conversational Payments- Hello UPI in app and UPI 123Pay on BHIM-UPI platform with the stipulation that at least 5 per cent of BHIM-UPI P2M transactions be on UPI Lite and UPI LiteX during the last quarter of the scheme. Also read | Paytm lays off more than 1,000 employees across various departments: Report UPI Lite offers a wallet in BHIM-UPI app for an amount of up to Rs 2,000 on a smartphone, eliminating the need for the user to first obtain electronic authorisation from his bank while making the payment. UPI LiteX enables users to make transactions even in areas with no internet connectivity, such as remote location etc. Also read | Microsoft's Windows 10 end-of-support plan may lead to massive PC disposal Sources say the scheme has been approved by the Expenditure Finance Committee and is now awaiting the Cabinet’s approval before disbursement begins on a quarterly mode. However this time, it is being executed by the Department of Financial Services as “Promotion of Digital Payments” after it was transferred from the Ministry of Electronics and Information Technology in July 2023, they said.

Exclusive: Indian government plans Rs 50 billion incentive to promote RuPay, BHIM-UPI

The Empowered Group of Secretaries (EGoS) has asked the Department for Promotion of Industry &amp; Internal Trade to amend guidelines in the Production Linked Incentive (PLI) scheme for some sectors – Automobile/Auto Components (AUTO), Advance Chemistry Cells (ACC) and Textiles among them – to bring them up to speed.

For PLI-AUTO, the EGoS headed by the Cabinet Secretary approved that the initial year of its implementation be extended by one year to start from fiscal 2023-24 because though the scheme’s performance period began from April 2022, the firms were onboarded only in March 2022.

“Since it was non-feasible to meet the performance criterion of minimum 50 per cent domestic value addition in a month’s time, it was decided that the scheme start date be shifted to April 2023 for all parameters, except investment,” said an official.

In PLI-ACC, the Ministry of Heavy Industries (MHI) has been directed to earmark 10 GWh capacity for grid scale stationery storage application out of the residual 20 GWh while seeking bids under the second round. The PLI-ACC scheme aims at setting up manufacturing capacity of 50 GWh of which 30 GWh capacity was allocated in the first round.

The official said that successful bidders who got production capacity below 20 GWh in the first round would be eligible to participate in the second round where all selected companies would get two years for gestation and five years for claiming the incentives as in the first round.

The MHI, through a letter in October 2023, had opposed such segregation saying that “bid for 20 GWh ACC capacity under PLI-ACC scheme should be floated without demarcating part capacity for any specific end-use applications".

PLI projects for Textile Products, which fell behind due to delays in securing statutory approvals, would get a one-year extension of gestation period for investment from&nbsp; March 31, 2024 to March 31, 2025 and hence, the last year of incentive release would be extended to March 31, 2030.

Textiles, like IT Hardware and Specialty Steel, has been struggling to get the PLI scheme going as investments have not been forthcoming. Textiles Ministry has had to twice extend the application period for second PLI round which targets investment of nearly Rs 1100 billion.

Extensions would also be given in PLI Scheme for Bulk Drugs as incentive funds lie unutilised either because there are no investors or due to project delays. For chemical synthesis products, the tenure is being extended from fiscal 2027-28 to fiscal 2028-29 and for fermentation-based products, it would be extended from fiscal 2028-29 to fiscal 2029-30.

Out of 41 products under the PLI scheme for bulk drugs, there were no takers for eight products whereby an incentive outlay of Rs 1.6 billion lies unallocated. In the case of chemical synthesis and fermentation-based products, many applicants are unable to claim incentives due to the delay in commissioning of projects.

The PLI scheme for Medical Devices schemes is also being extended from fiscal 2027-28 to fiscal 2028-29 as there have been delays in commissioning of projects leading to under achievement of targets.

Through DPIIT changes, the Ministry of New &amp; Renewable Energy would be empowered to utilize the estimated Rs 5.5 billion saving in PLI for High-Efficiency Solar Photo Voltaic modules to promote the production of polysilicon and ingots-wafers required in the manufacturing of Solar PV modules.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/india-contributes-over-16pc-to-global-growth-imf-report-reveals-strong-economic-performance-671140">India contributes over 16% to global growth, IMF report reveals</a>

Similarly, the Department of Food Processing would get to utilize savings of nearly Rs 10&nbsp;billion to implement PLI Scheme for Millet Based Products 2.0 from fiscal 2024-25, handing out 10 per cent incentive on incremental sales for the first four years, 9 per cent for the&nbsp;fifth and 8 per cent in the last year.

PLI schemes are a crucial part of Prime Minister Narendra Modi’s vision of making India a $5 trillion economy by strengthening the nation’s manufacturing sector by incentivising domestic and foreign investments.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/chennai-rains-armed-forces-join-rescue-efforts-imd-predicts-further-heavy-rainfall-671143">Chennai rains: Three dead, 800 stranded on railway station; IMD predicts more rainfall</a>

Through these schemes, the government encourages companies to increase their manufacturing capabilities by spending on plant, machinery, associated utilities, R&amp;D and transfer of technology. It provides incentives for five years on the increased manufacturing where the percentage varies for different sectors.

It currently targets 14 sectors of strategic and economic importance. As of November 2023, investments of nearly Rs 950 billion had materialised resulting in creation of nearly 450,000&nbsp;direct jobs, production of Rs 7.8 trillion and exports Rs 2.8 trillion.

&nbsp;

The Empowered Group of Secretaries (EGoS) has asked the Department for Promotion of Industry & Internal Trade to amend guidelines in the Production Linked Incentive (PLI) scheme for some sectors – Automobile/Auto Components (AUTO), Advance Chemistry Cells (ACC) and Textiles among them – to bring them up to speed.

The Empowered Group of Secretaries (EGoS) has asked the Department for Promotion of Industry & Internal Trade to amend guidelines in the Production Linked Incentive (PLI) scheme for some sectors – Automobile/Auto Components (AUTO), Advance Chemistry Cells (ACC) and Textiles among them – to bring them up to speed. For PLI-AUTO, the EGoS headed by the Cabinet Secretary approved that the initial year of its implementation be extended by one year to start from fiscal 2023-24 because though the scheme’s performance period began from April 2022, the firms were onboarded only in March 2022. “Since it was non-feasible to meet the performance criterion of minimum 50 per cent domestic value addition in a month’s time, it was decided that the scheme start date be shifted to April 2023 for all parameters, except investment,” said an official. In PLI-ACC, the Ministry of Heavy Industries (MHI) has been directed to earmark 10 GWh capacity for grid scale stationery storage application out of the residual 20 GWh while seeking bids under the second round. The PLI-ACC scheme aims at setting up manufacturing capacity of 50 GWh of which 30 GWh capacity was allocated in the first round. The official said that successful bidders who got production capacity below 20 GWh in the first round would be eligible to participate in the second round where all selected companies would get two years for gestation and five years for claiming the incentives as in the first round. The MHI, through a letter in October 2023, had opposed such segregation saying that “bid for 20 GWh ACC capacity under PLI-ACC scheme should be floated without demarcating part capacity for any specific end-use applications". PLI projects for Textile Products, which fell behind due to delays in securing statutory approvals, would get a one-year extension of gestation period for investment from March 31, 2024 to March 31, 2025 and hence, the last year of incentive release would be extended to March 31, 2030. Textiles, like IT Hardware and Specialty Steel, has been struggling to get the PLI scheme going as investments have not been forthcoming. Textiles Ministry has had to twice extend the application period for second PLI round which targets investment of nearly Rs 1100 billion. Extensions would also be given in PLI Scheme for Bulk Drugs as incentive funds lie unutilised either because there are no investors or due to project delays. For chemical synthesis products, the tenure is being extended from fiscal 2027-28 to fiscal 2028-29 and for fermentation-based products, it would be extended from fiscal 2028-29 to fiscal 2029-30. Out of 41 products under the PLI scheme for bulk drugs, there were no takers for eight products whereby an incentive outlay of Rs 1.6 billion lies unallocated. In the case of chemical synthesis and fermentation-based products, many applicants are unable to claim incentives due to the delay in commissioning of projects. The PLI scheme for Medical Devices schemes is also being extended from fiscal 2027-28 to fiscal 2028-29 as there have been delays in commissioning of projects leading to under achievement of targets. Through DPIIT changes, the Ministry of New & Renewable Energy would be empowered to utilize the estimated Rs 5.5 billion saving in PLI for High-Efficiency Solar Photo Voltaic modules to promote the production of polysilicon and ingots-wafers required in the manufacturing of Solar PV modules. Also read | India contributes over 16% to global growth, IMF report reveals Similarly, the Department of Food Processing would get to utilize savings of nearly Rs 10 billion to implement PLI Scheme for Millet Based Products 2.0 from fiscal 2024-25, handing out 10 per cent incentive on incremental sales for the first four years, 9 per cent for the fifth and 8 per cent in the last year. PLI schemes are a crucial part of Prime Minister Narendra Modi’s vision of making India a $5 trillion economy by strengthening the nation’s manufacturing sector by incentivising domestic and foreign investments. Also read | Chennai rains: Three dead, 800 stranded on railway station; IMD predicts more rainfall Through these schemes, the government encourages companies to increase their manufacturing capabilities by spending on plant, machinery, associated utilities, R&D and transfer of technology. It provides incentives for five years on the increased manufacturing where the percentage varies for different sectors. It currently targets 14 sectors of strategic and economic importance. As of November 2023, investments of nearly Rs 950 billion had materialised resulting in creation of nearly 450,000 direct jobs, production of Rs 7.8 trillion and exports Rs 2.8 trillion.

Exclusive: PLI schemes for auto, battery, textiles, among others, to be tweaked to spur investments

To boost foreign inflows into India’s manufacturing and industrial sectors, New Delhi plans to liberalise foreign investments in the ‘non-services sector’ by offering safeguards against future political and economic risks to potential investors on their pre-investment activities.

Sources said the Department for Promotion of Industry and Internal Trade (DPIIT) could soon be deployed to negotiate a chapter on investment liberalisation in the ‘non-services sector’ in the ongoing Free Trade Agreement (FTA) discussions.

The chapter could include ‘pre-establishment’ protection in ‘non-services sector’ whereby investors would get bilateral treaty protection through State-State Dispute Settlement (SSDS) on their pre-investment activities before the venture is established in the territory of either country, they said.

This is a major turnaround from India’s stand since 2015 when New Delhi decided to shun ‘pre-establishment’ obligations to investments in the non-services sector as it risked limiting the country’s policy space, and it revised the Model Bilateral Investment Treaty (BIT) to allow treaty protection to investments only after the ventures were established.

Model BIT 2015 says: "…nothing in this Treaty shall extend to any pre-investment activity related to establishment, acquisition or expansion of any investment, or to any measure related to such pre-investment activities, including terms and conditions under such measure which continue to apply post-investment to the management, conduct, operation, sale or other disposition of such investments”.

Presently, India provides liberalisation commitments in the pre-establishment phase only in the ‘services sector’ while its post-establishment protection is covered in the BIT.

Traditionally, investment treaties have been protective (post-establishment) but as the global trade evolved, these treaties came to encompass liberalisation (pre-establishment) elements as well such as the North American Free Trade Agreement (NAFTA) in 1994.

Development of new consumption trends, altered patterns of international production, emergence of global value chains, more and easier access to market information, and a tougher international competitive environment have affected the way nations negotiate investment treaties.

Sources said India’s thinking is to replace the present Investor-State Dispute Settlement Mechanism which has been the major cause for the country’s cautious 2015 BIT due to adverse arbitration awards against it. Instead, dispute resolutions would be through State-State Dispute Settlement Mechanism.

They said the bilateral treaties would explicitly list the specific sectors where investment commitments would be protected, rather than issue a negative list where each side is considered to have liberalised all sectors, except those highlighted as ‘No Go’ areas.

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India’s attempts to conclude international investment agreements (IIAs) have yielded limited success as FTAs with&nbsp;Australia,&nbsp;Mauritius, and the&nbsp;United Arab Emirates (UAE) do not contain provisions for overall protection and the standalone BITs with Brazil, Belarus and Kyrgyzstan are not yet in force. FTA negotiations with the United Kingdom, the European Union (EU) and Canada, including for an investment chapter, are ongoing.

Also watch |&nbsp;G20 Summit 2023: How much financial loss will Delhi's most popular markets bear due to closures?

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/g20-summit-2023-how-much-financial-loss-will-delhis-most-popular-markets-bear-due-to-closures-633831/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The Parliamentary Consultative Committee of the Ministry of Commerce &amp; Industry on ‘New Foreign Trade Policy 2021-26’ found&nbsp;“the number of BITs/Investment Agreements signed post 2015 and the number under negotiations as inadequate and not commensurate with the growth of India’s interest in this domain and her rising stature in global affairs”.

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To boost foreign inflows into India’s manufacturing and industrial sectors, New Delhi plans to liberalise foreign investments in the ‘non-services sector’ by offering safeguards against future political and economic risks to potential investors on their pre-investment activities.

To boost foreign inflows into India’s manufacturing and industrial sectors, New Delhi plans to liberalise foreign investments in the ‘non-services sector’ by offering safeguards against future political and economic risks to potential investors on their pre-investment activities. Sources said the Department for Promotion of Industry and Internal Trade (DPIIT) could soon be deployed to negotiate a chapter on investment liberalisation in the ‘non-services sector’ in the ongoing Free Trade Agreement (FTA) discussions. The chapter could include ‘pre-establishment’ protection in ‘non-services sector’ whereby investors would get bilateral treaty protection through State-State Dispute Settlement (SSDS) on their pre-investment activities before the venture is established in the territory of either country, they said. This is a major turnaround from India’s stand since 2015 when New Delhi decided to shun ‘pre-establishment’ obligations to investments in the non-services sector as it risked limiting the country’s policy space, and it revised the Model Bilateral Investment Treaty (BIT) to allow treaty protection to investments only after the ventures were established. Model BIT 2015 says: "…nothing in this Treaty shall extend to any pre-investment activity related to establishment, acquisition or expansion of any investment, or to any measure related to such pre-investment activities, including terms and conditions under such measure which continue to apply post-investment to the management, conduct, operation, sale or other disposition of such investments”. Presently, India provides liberalisation commitments in the pre-establishment phase only in the ‘services sector’ while its post-establishment protection is covered in the BIT. Traditionally, investment treaties have been protective (post-establishment) but as the global trade evolved, these treaties came to encompass liberalisation (pre-establishment) elements as well such as the North American Free Trade Agreement (NAFTA) in 1994. Development of new consumption trends, altered patterns of international production, emergence of global value chains, more and easier access to market information, and a tougher international competitive environment have affected the way nations negotiate investment treaties. Sources said India’s thinking is to replace the present Investor-State Dispute Settlement Mechanism which has been the major cause for the country’s cautious 2015 BIT due to adverse arbitration awards against it. Instead, dispute resolutions would be through State-State Dispute Settlement Mechanism. They said the bilateral treaties would explicitly list the specific sectors where investment commitments would be protected, rather than issue a negative list where each side is considered to have liberalised all sectors, except those highlighted as ‘No Go’ areas. Also read | Nvidia, India's Reliance strike AI partnership for apps, language models India’s attempts to conclude international investment agreements (IIAs) have yielded limited success as FTAs with Australia, Mauritius, and the United Arab Emirates (UAE) do not contain provisions for overall protection and the standalone BITs with Brazil, Belarus and Kyrgyzstan are not yet in force. FTA negotiations with the United Kingdom, the European Union (EU) and Canada, including for an investment chapter, are ongoing. Also watch | G20 Summit 2023: How much financial loss will Delhi's most popular markets bear due to closures? The Parliamentary Consultative Committee of the Ministry of Commerce & Industry on ‘New Foreign Trade Policy 2021-26’ found “the number of BITs/Investment Agreements signed post 2015 and the number under negotiations as inadequate and not commensurate with the growth of India’s interest in this domain and her rising stature in global affairs”. WATCH WION LIVE HERE:

Excl: India may liberalise foreign investment in non-services sector through ‘pre-establishment’ protection

The Indian shipping ministry has significantly jacked up its fund demand for the production-linked incentive (PLI) scheme that it plans to float for encouraging shipping container manufacturing in India to compete with China as a source country for global supplies.

The ministry’s askance, said officials, has been raised to Rs 110 billion ($1.3 billion approx.) with spending spread over nine years. Of these nine years, incentive outlays for the first five years will be fixed while incentive for the last four years will be tapering or in decreasing order.

The ministry’s fund demand is nearly 13 times higher than the budget outlay of Rs 8 billion ($96 million) that the Expenditure Finance Committee had indicated last November based on the limited utility of the scheme for catering to the small domestic market.

Besides rewarding annual increments in manufacturing, officials said the scheme is aimed at bridging the price gap between domestically manufactured and imported containers. Compared to the Indian ones which cost about Rs1,46,000 per box, the Chinese containers cost a paltry Rs 75,000 apiece.

Officials said the higher budget outlay, as suggested by the Indian Institute of Foreign Trade (Kolkata) that was hired for the feasibility study, could help India wean away at least 10 per cent share of demand from global container liners on grounds that most of them are looking at ‘China plus One’ policy for importing goods.

The policy has gained prominence due to global supply chain disruptions during Covid-19 and the recent trade tensions whereby businesses and governments are increasingly aware of the vulnerabilities that arise from relying on a single nation for manufacturing or sourcing essential goods.

<h2>India central bank nudges banks to settle UAE trades in Rupee, Dirham</h2>

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Officials said that by including containers as the 15th sector in the PLI scheme, the ministry hopes to build it as a new indigenous industry. At present, a handful of small domestic producers fail to meet the demand for rail and shipping operators so much so that the country’s largest operator — public sector Container Corporation of India —has its entire fleet from China.

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According to officials, the scheme would be open only for containers of size 20 and 40 feet, including standard and high cube containers. It encompasses dry storage, flat rack, open-top and open-side storage containers as well as refrigerated ISO containers.<v:rect filled="f" id="Rectangle_x0020_4" o:gfxdata="UEsDBBQABgAIAAAAIQC75UiUBQEAAB4CAAATAAAAW0NvbnRlbnRfVHlwZXNdLnhtbKSRvU7DMBSF
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" stroked="f"> <o:lock aspectratio="t" v:ext="edit"> <w:wrap type="none"> <w:anchorlock> </w:anchorlock></w:wrap></o:lock></v:rect><img id="_x0000_i1025" src="" />

However, the beneficiary company would only be those that are registered in India as a partnership firm, limited liability partnerships, proprietorship firm and limited company under the Companies Act 2013 or joint ventures that are engaged in end-to-end manufacturing of shipping containers.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/india-jumps-to-11th-position-in-global-direct-selling-ranking-627664">India jumps to 11th position in global direct selling ranking</a>

In the first year, the PLI scheme would give incentives to match the existing price differential. Therefore, the proposal is to provide support for the cost differential component of container manufacturing, regardless of the level of production, based on two factors: the differential price and the incremental production.

Subsequently, the scheme would reward incremental production. If incremental production targets are unmet in the following year, the company will only be eligible for incentives based on the differential price component and will not receive the incremental production component.

Twelve months before the end of the ninth year, a review shall be carried out by a committee —formed for implementing the scheme — to decide whether the scheme is to be continued in the same form and modalities or not.

The ready availability of containers in time is the key for the sustenance and growth of India's export industries. In the logistics supply chain, availability and turnaround time of shipping containers affect freight charges for products requiring containers for transportation.

Therefore, to keep the logistic supply chain in efficient and economical manner, the availability of shipping containers at an affordable rate is essential for the Indian export-oriented market.

With price competitiveness, it would help boost the capacity of indigenous container manufacturing facilities in India. Self-reliance, in turn, will ensure the steady supply of shipping containers, even in case of global scarcity or difficult geopolitical scenarios, like the pandemic, regional conflict, trade embargo, etc.

Keeping in view India's vision of becoming 'Atmanirbhar' or self-reliant, PLI schemes for 14 key sectors have been announced with an outlay of Rs. 1.97 lakh crore to enhance India's manufacturing capabilities and exports.

&nbsp;

The Indian shipping ministry has significantly jacked up its fund demand for the production-linked incentive (PLI) scheme that it plans to float for encouraging shipping container manufacturing in India to compete with China as a source country for global supplies.

The Indian shipping ministry has significantly jacked up its fund demand for the production-linked incentive (PLI) scheme that it plans to float for encouraging shipping container manufacturing in India to compete with China as a source country for global supplies. The ministry’s askance, said officials, has been raised to Rs 110 billion ($1.3 billion approx.) with spending spread over nine years. Of these nine years, incentive outlays for the first five years will be fixed while incentive for the last four years will be tapering or in decreasing order. The ministry’s fund demand is nearly 13 times higher than the budget outlay of Rs 8 billion ($96 million) that the Expenditure Finance Committee had indicated last November based on the limited utility of the scheme for catering to the small domestic market. Besides rewarding annual increments in manufacturing, officials said the scheme is aimed at bridging the price gap between domestically manufactured and imported containers. Compared to the Indian ones which cost about Rs1,46,000 per box, the Chinese containers cost a paltry Rs 75,000 apiece. Officials said the higher budget outlay, as suggested by the Indian Institute of Foreign Trade (Kolkata) that was hired for the feasibility study, could help India wean away at least 10 per cent share of demand from global container liners on grounds that most of them are looking at ‘China plus One’ policy for importing goods. The policy has gained prominence due to global supply chain disruptions during Covid-19 and the recent trade tensions whereby businesses and governments are increasingly aware of the vulnerabilities that arise from relying on a single nation for manufacturing or sourcing essential goods. India central bank nudges banks to settle UAE trades in Rupee, Dirham Officials said that by including containers as the 15th sector in the PLI scheme, the ministry hopes to build it as a new indigenous industry. At present, a handful of small domestic producers fail to meet the demand for rail and shipping operators so much so that the country’s largest operator — public sector Container Corporation of India —has its entire fleet from China. In fact, not just India, almost 90 per cent of global needs for container liners is met by Chinese companies .The global shipping container market size is close to $7 billion and is expected to be more than $12 billion by 2028. Also read | Soon, you can buy Indian rupee bond from BRICS Bank According to officials, the scheme would be open only for containers of size 20 and 40 feet, including standard and high cube containers. It encompasses dry storage, flat rack, open-top and open-side storage containers as well as refrigerated ISO containers. However, the beneficiary company would only be those that are registered in India as a partnership firm, limited liability partnerships, proprietorship firm and limited company under the Companies Act 2013 or joint ventures that are engaged in end-to-end manufacturing of shipping containers. Also read | India jumps to 11th position in global direct selling ranking In the first year, the PLI scheme would give incentives to match the existing price differential. Therefore, the proposal is to provide support for the cost differential component of container manufacturing, regardless of the level of production, based on two factors: the differential price and the incremental production. Subsequently, the scheme would reward incremental production. If incremental production targets are unmet in the following year, the company will only be eligible for incentives based on the differential price component and will not receive the incremental production component. Twelve months before the end of the ninth year, a review shall be carried out by a committee —formed for implementing the scheme — to decide whether the scheme is to be continued in the same form and modalities or not. The ready availability of containers in time is the key for the sustenance and growth of India's export industries. In the logistics supply chain, availability and turnaround time of shipping containers affect freight charges for products requiring containers for transportation. Therefore, to keep the logistic supply chain in efficient and economical manner, the availability of shipping containers at an affordable rate is essential for the Indian export-oriented market. With price competitiveness, it would help boost the capacity of indigenous container manufacturing facilities in India. Self-reliance, in turn, will ensure the steady supply of shipping containers, even in case of global scarcity or difficult geopolitical scenarios, like the pandemic, regional conflict, trade embargo, etc. Keeping in view India's vision of becoming 'Atmanirbhar' or self-reliant, PLI schemes for 14 key sectors have been announced with an outlay of Rs. 1.97 lakh crore to enhance India's manufacturing capabilities and exports.

India's shipping ministry wants $1.3 billion over nine years to float PLI scheme for containers

Mahanadi Coalfields Ltd, a subsidiary of Coal India Ltd, is seeking government approval to invest Rs 34,072 crores in an integrated greenfield aluminium project in Odisha comprising a two-million-tonne alumina refinery, a 0.5-million-tonne aluminium smelter and a 1,400-megawatt captive power plant.

The planned investment in aluminium complex includes acquiring a bauxite block at Sijimali or Kutrumali in Odisha to mine six million tonnes of bauxite per annum. Initially, the end-product would be primary aluminium ingots with value-added products introduced later.

Since MCL plans to pump in Rs 10,222 crore as equity considering a debt-equity mix of 70:30 for the project, it has sought an exemption from the investment limit fixed by the Department of Public Enterprises which stipulates that a miniratna can only invest 15 percent of its net worth in a project - limited to Rs 500 crore, with an overall investment cap of 30 percent of net worth in all projects put together.

With net worth after dividend estimated at Rs 9,716 crore, 30 percent would be a paltry Rs 2,914.8 crore as permissible equity. Crossing this limit requires the approval of Department of Investment and Public Asset Management (DIPAM) which administers all matters pertaining to capital structure or net worth of a central public sector undertaking, said an official.

Initially, Coal India had planned a joint venture along with National Aluminium Corp. Ltd (NALCO), wherein MCL would hold 74 percent and NALCO the rest. However, the joint venture plan was dropped in August 2022 and the MCL board decided last January to form a special-purpose vehicle for the project complex.

MCL’s new venture comes amidst India’s commitment in COP-26 at Glasgow to make the country Net-Zero Carbon Emissions by 2070 after which Coal India decided to shift from its current core business of coal mining to embark on the process of diversification into non-fossil fuel areas to ensure a sustainable source of income from other businesses.

Since coal and alumina are the critical inputs in the production of aluminium, the project was a natural choice for forward integration, the official said.

Moreover, India’s demand for aluminium has grown at a CAGR of 10 percent in the last five years driven by strong growth of automobile, construction and power sectors. MCL’s feasibility study showed that domestic demand presented a vast opportunity to set up an aluminium smelter as there would be an expected demand-supply gap of about 2.25 million tonnes in 2030 by when the project would be up and running.

Also Read | <a href="https://www.wionews.com/india-news/through-the-lens-of-retd-naval-officer-celebrating-kaleidoscope-of-human-experiences-at-sea-and-beyond-it-626904">Through the lens of Retd Naval officer: Celebrating 'kaleidoscope of human experiences' at sea and beyond</a>

The project is also aimed at realizing the goal of ‘Atmanirbhar Bharat’ by encouraging domestic manufacturing, reducing import dependence, increasing exports with investment in backward area of the country. The entire complex is expected to generate an employment of 5,000 with direct employment pegged at 1,600.

Coal India is the world’s largest coal mining company and accounts for more than 80 percent of India’s coal production.

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Mahanadi Coalfields Ltd, a subsidiary of Coal India Ltd, is seeking government approval to invest Rs 34,072 crores in an integrated greenfield aluminium project in Odisha comprising a two-million-tonne alumina refinery, a 0.

Mahanadi Coalfields Ltd, a subsidiary of Coal India Ltd, is seeking government approval to invest Rs 34,072 crores in an integrated greenfield aluminium project in Odisha comprising a two-million-tonne alumina refinery, a 0.5-million-tonne aluminium smelter and a 1,400-megawatt captive power plant. The planned investment in aluminium complex includes acquiring a bauxite block at Sijimali or Kutrumali in Odisha to mine six million tonnes of bauxite per annum. Initially, the end-product would be primary aluminium ingots with value-added products introduced later. Since MCL plans to pump in Rs 10,222 crore as equity considering a debt-equity mix of 70:30 for the project, it has sought an exemption from the investment limit fixed by the Department of Public Enterprises which stipulates that a miniratna can only invest 15 percent of its net worth in a project - limited to Rs 500 crore, with an overall investment cap of 30 percent of net worth in all projects put together. With net worth after dividend estimated at Rs 9,716 crore, 30 percent would be a paltry Rs 2,914.8 crore as permissible equity. Crossing this limit requires the approval of Department of Investment and Public Asset Management (DIPAM) which administers all matters pertaining to capital structure or net worth of a central public sector undertaking, said an official. Initially, Coal India had planned a joint venture along with National Aluminium Corp. Ltd (NALCO), wherein MCL would hold 74 percent and NALCO the rest. However, the joint venture plan was dropped in August 2022 and the MCL board decided last January to form a special-purpose vehicle for the project complex. MCL’s new venture comes amidst India’s commitment in COP-26 at Glasgow to make the country Net-Zero Carbon Emissions by 2070 after which Coal India decided to shift from its current core business of coal mining to embark on the process of diversification into non-fossil fuel areas to ensure a sustainable source of income from other businesses. Since coal and alumina are the critical inputs in the production of aluminium, the project was a natural choice for forward integration, the official said. Moreover, India’s demand for aluminium has grown at a CAGR of 10 percent in the last five years driven by strong growth of automobile, construction and power sectors. MCL’s feasibility study showed that domestic demand presented a vast opportunity to set up an aluminium smelter as there would be an expected demand-supply gap of about 2.25 million tonnes in 2030 by when the project would be up and running. Also Read | Through the lens of Retd Naval officer: Celebrating 'kaleidoscope of human experiences' at sea and beyond The project is also aimed at realizing the goal of ‘Atmanirbhar Bharat’ by encouraging domestic manufacturing, reducing import dependence, increasing exports with investment in backward area of the country. The entire complex is expected to generate an employment of 5,000 with direct employment pegged at 1,600. Coal India is the world’s largest coal mining company and accounts for more than 80 percent of India’s coal production. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Mahanadi Coalfields aluminium project to cost USD 4 billion: Seeks equity limit exemption

Atmanirbhar Bharat under Prime Minister Narendra Modi has decided to obliterate the legal remnants of the British colonial rule and has instructed all departments to identify and replace all pre-Independence acts with new&nbsp;laws.

“The Government desires that the entire legal code of India should remain purely Indian and there is a need to remove traces of or references to British ties and subject matter of British Statutes, etc. Thus, existing laws made by legislature of pre-Constitution era should be replaced with laws made by the legislature which is in place post-independence,” the Legislative Department told all government departments on March 23.

Watch | Indian PM Modi to travel to Indonesia in the first week of September

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The directive came at a review of pre-Independence laws from the point of view of their suitability and relevance in the present circumstances and amendments, where required, for their simplification. This was a step forward from the government’s recent move to repeal all irrelevant, redundant and obsolete laws, irrespective of their enactment date, in several tranches.

Also Read | <a href="https://www.wionews.com/india-news/under-new-export-policy-kashmiri-saffron-to-be-exported-to-over-60-countries-626467">Under new export policy, Kashmiri saffron to be exported to over 60 countries</a>

The first significant step in throwing off the British yoke was the Jan Vishwas (Amendment of Provisions) Bill which has become an act after the Rajya Sabha passed it on August 2. Under the Act, 42 laws would be changed and 183 provisions revised to minimise the number of cases in the courts, make doing business easier, and keep people out of jail for small offences.

Besides decriminalisation of minor offences -- that is abolishing the use of incarceration as a punishment for minor offences -- the Jan Vishwas Act envisages rationalisation of monetary penalties, depending on the gravity of the offence, bolstering trust-based governance. 
 
Among the British era acts that are being amended under it are the Indian Post Office Act of 1898, Agricultural Produce (Grading and Marking) Act of 1937, Drugs and Cosmetics Act of 1940 and Public Debt Act of 1944.

The second set of laws to replace the colonial acts was introduced by Home Minister Amit Shah on August 11 to replace the Indian Penal Code (IPC) of 1860, Code of Criminal Procedure (CrPC) of 1898, and the Indian Evidence Act of 1872. The three bills, simplified and updated, are named Bharatiya Nyaya Sanhita Bill; Bharatiya Nagarik Suraksha Sanhita Bill; and Bharatiya Sakshya Bill, respectively.

While the move is hailed as a historical push to remove the British hangover, its timing and intent has raised a controversy whether axing these British-era laws were a step towards justice or a political manoeuvre.

An official said there were 45 such pre-Constitution central acts in the Central List, 21 in the State List and 58 in the Concurrent List that required re-enactment or repeal under the new guidelines. Among the Central List are the Petroleum Act and the Reserve Bank of India Act, both of 1934, he said.

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

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&nbsp;

Atmanirbhar Bharat under Prime Minister Narendra Modi has decided to obliterate the legal remnants of the British colonial rule and has instructed all departments to identify and replace all pre-Independence acts with new laws.

Atmanirbhar Bharat under Prime Minister Narendra Modi has decided to obliterate the legal remnants of the British colonial rule and has instructed all departments to identify and replace all pre-Independence acts with new laws. “The Government desires that the entire legal code of India should remain purely Indian and there is a need to remove traces of or references to British ties and subject matter of British Statutes, etc. Thus, existing laws made by legislature of pre-Constitution era should be replaced with laws made by the legislature which is in place post-independence,” the Legislative Department told all government departments on March 23. Watch | Indian PM Modi to travel to Indonesia in the first week of September × The directive came at a review of pre-Independence laws from the point of view of their suitability and relevance in the present circumstances and amendments, where required, for their simplification. This was a step forward from the government’s recent move to repeal all irrelevant, redundant and obsolete laws, irrespective of their enactment date, in several tranches. Also Read | Under new export policy, Kashmiri saffron to be exported to over 60 countries The first significant step in throwing off the British yoke was the Jan Vishwas (Amendment of Provisions) Bill which has become an act after the Rajya Sabha passed it on August 2. Under the Act, 42 laws would be changed and 183 provisions revised to minimise the number of cases in the courts, make doing business easier, and keep people out of jail for small offences. Besides decriminalisation of minor offences -- that is abolishing the use of incarceration as a punishment for minor offences -- the Jan Vishwas Act envisages rationalisation of monetary penalties, depending on the gravity of the offence, bolstering trust-based governance. Among the British era acts that are being amended under it are the Indian Post Office Act of 1898, Agricultural Produce (Grading and Marking) Act of 1937, Drugs and Cosmetics Act of 1940 and Public Debt Act of 1944. The second set of laws to replace the colonial acts was introduced by Home Minister Amit Shah on August 11 to replace the Indian Penal Code (IPC) of 1860, Code of Criminal Procedure (CrPC) of 1898, and the Indian Evidence Act of 1872. The three bills, simplified and updated, are named Bharatiya Nyaya Sanhita Bill; Bharatiya Nagarik Suraksha Sanhita Bill; and Bharatiya Sakshya Bill, respectively. While the move is hailed as a historical push to remove the British hangover, its timing and intent has raised a controversy whether axing these British-era laws were a step towards justice or a political manoeuvre. An official said there were 45 such pre-Constitution central acts in the Central List, 21 in the State List and 58 in the Concurrent List that required re-enactment or repeal under the new guidelines. Among the Central List are the Petroleum Act and the Reserve Bank of India Act, both of 1934, he said. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Government replacing all colonial acts to remove British Raj traces

The Indian government on Wednesday approved the selling price as well as the royalty on lithium and rare earth elements (REEs), thereby enabling the first auction of their recently-discovered blocks, and kept royalty at “reasonable” rates to encourage private sector participation in their commercial mining.

For lithium, the Indian Cabinet approved a royalty rate of three percent based on the London Metal Exchange price chargeable on the “contained lithium metal”, since the newly-discovered resources would require proper technology and quantum investment to profitably extract lithium from its ore.

The royalty on REE has been fixed at one percent of the average sale price of rare earth oxide (REO) chargeable on the REO contained in the produced ore. This is in line with the international practice where REE royalty is half of the royalty on ilmenite, rutile and zircon (two percent).

Both lithium and REE were not exclusively specified in the Second Schedule of the Mines and Minerals (Development and Regulation) Act of 1957. This meant that they attracted royalty rates of 12 per cent. The new rates would be applicable for the next three years. Wednesday’s fixation of average sale price and royalty would enable state governments to auction the newly-found blocks.&nbsp;

The Mines Ministry had proposed that royalty may “initially be kept at a reasonable level” to encourage more participation. It said that in prescribing royalty for minerals to be mined for the first time in the country, factors such as ease in royalty administration, fair revenue to the states and investor interest to mine the minerals must be considered.&nbsp;

“Encouraging indigenous mining of lithium and REE is in the national interest. It would lead to a reduction in imports and would also help in the efforts of making Atmanirbhar Bharat,” it argued.

India meets about 70 percent of its lithium - the key element for manufacturing electric vehicle batteries - through imports even as it seeks to increase the EV penetration from current 1 percent to 30 percent by 2030.

India depends on China and Hong Kong for about 70 percent of its lithium imports and more than 90 percent for lithium-ion. Australia is the world’s top lithium producer followed by the ‘Lithium Triangle’ of Argentina, Chile and Bolivia.

Recently, 5.9 million tonnes of lithium deposits were discovered in Salal-Hamina areas of Reasi district of Jammu &amp; Kashmir by the Geological Survey of India (GSI).&nbsp;

As for REE, Karnataka had informed that the Mincheri REE block in Raichur district was explored by the Geological Survey of India up to G3 level. Since the atomic minerals reported in this block were below the notified threshold value, the state government had been authorised to auction the block.

GSI has also conducted exploration and finalised the geological reports for nine other blocks with three in Bihar, two each in Gujarat and Maharashtra, one each in Jharkhand and Uttar Pradesh.

The Indian government on Wednesday approved the selling price as well as the royalty on lithium and rare earth elements (REEs), thereby enabling the first auction of their recently-discovered blocks, and kept royalty at “reasonable” rates to encourage private sector participation in their commercial mining.

The Indian government on Wednesday approved the selling price as well as the royalty on lithium and rare earth elements (REEs), thereby enabling the first auction of their recently-discovered blocks, and kept royalty at “reasonable” rates to encourage private sector participation in their commercial mining. For lithium, the Indian Cabinet approved a royalty rate of three percent based on the London Metal Exchange price chargeable on the “contained lithium metal”, since the newly-discovered resources would require proper technology and quantum investment to profitably extract lithium from its ore. The royalty on REE has been fixed at one percent of the average sale price of rare earth oxide (REO) chargeable on the REO contained in the produced ore. This is in line with the international practice where REE royalty is half of the royalty on ilmenite, rutile and zircon (two percent). Both lithium and REE were not exclusively specified in the Second Schedule of the Mines and Minerals (Development and Regulation) Act of 1957. This meant that they attracted royalty rates of 12 per cent. The new rates would be applicable for the next three years. Wednesday’s fixation of average sale price and royalty would enable state governments to auction the newly-found blocks. The Mines Ministry had proposed that royalty may “initially be kept at a reasonable level” to encourage more participation. It said that in prescribing royalty for minerals to be mined for the first time in the country, factors such as ease in royalty administration, fair revenue to the states and investor interest to mine the minerals must be considered. “Encouraging indigenous mining of lithium and REE is in the national interest. It would lead to a reduction in imports and would also help in the efforts of making Atmanirbhar Bharat,” it argued. India meets about 70 percent of its lithium - the key element for manufacturing electric vehicle batteries - through imports even as it seeks to increase the EV penetration from current 1 percent to 30 percent by 2030. India depends on China and Hong Kong for about 70 percent of its lithium imports and more than 90 percent for lithium-ion. Australia is the world’s top lithium producer followed by the ‘Lithium Triangle’ of Argentina, Chile and Bolivia. Recently, 5.9 million tonnes of lithium deposits were discovered in Salal-Hamina areas of Reasi district of Jammu & Kashmir by the Geological Survey of India (GSI). As for REE, Karnataka had informed that the Mincheri REE block in Raichur district was explored by the Geological Survey of India up to G3 level. Since the atomic minerals reported in this block were below the notified threshold value, the state government had been authorised to auction the block. GSI has also conducted exploration and finalised the geological reports for nine other blocks with three in Bihar, two each in Gujarat and Maharashtra, one each in Jharkhand and Uttar Pradesh.

India's El Dorado: All eyes set on first lithium, rare earth elements auctions

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