dfa-17-dec

Daily Financial News Analysis – 17th Dec’20 – Free PDF Download

 

Telecom Gear Trusted Source

  • National Security Directive on Telecommunication Sector
  • The government will soon declare a list of ‘trusted sources’ for acquiring gear for telecom networks and amend permits accordingly.
  • The move is aimed at keeping Chinese gear suppliers Huawei and ZTE out of India’s Future telecom expansion as well as its 5G technology rollout.

  • “Under the provisions of the Directive, in order to maintain the integrity of the supply chain security, the government will declare a list of ‘trusted sources/trusted products’ for the benefit of the telecom service providers.”
  • A list of ‘designated sources’ from which no procurement can be done may also be created said telecom minister Ravi Shankar Prasad
  • The new directive kicks in within 180 days from the date of approval.
  • Telecom companies won’t need to replace existing gear, and can continue with software upgrades on existing equipment as well as with existing annual maintenance contracts (AMCs).
  • The list of equipment to be covered under the directive and the methodology to designate ‘trusted products’ will be devised by the National Cyber Security Coordinator (NCSC) Rajesh Pant.
  • The NCSC in turn will make its list based on approval of a committee headed by Deputy NSA.
  • The committee will be called the National Security Committee on Telecom (NSCT) and will have members from relevant departments.

December Deceleration

  • Credit growth, business volumes, digital transactions, credit card spends all slowed down in the first fortnight of December.
  • The festive spending mood is fizzling out.
  • Banks and payment companies – they are bracing for tepid consumer activity in the coming months.
  • A rebound, they reckon, may happen after more clarity on availability and distribution of vaccines.
  • RBI’s data on card spending at PoS terminals shows somewhat subdued retail spends.
  • The first 14 days of December recorded 6.8 crore credit card transactions worth ₹20,911 crore, against 7.4 crore transactions worth ₹23,752 crore in the same period of last month.
  • RBI’s daily data on Immediate Payment Service (IMPS) and ATM withdrawals shows degrowth in the first fortnight of December
  • All prominent retail payment channels operated by the NPCI recorded degrowth in both value and volume of transactions in the first fortnight of December, against the same period of November.

MEA launches new Site

  • www.indbiz.gov.in
  • India on Wednesday launched a digital interface for foreign investors to connect directly with farmers.
  • The first economic diplomacy portal under the Ministry of External affairs, launched by minister S Jaishankar, is likely to “boost incomes of the farming community as it will enable them to connect directly with the global agricultural market”.
  • The website will serve as a two-way funnel, connecting interested investors to relevant agencies in India such as Agricultural and Processed Food Products Export Development Authority.
  • As per sources, www.indbiz.gov.in will be a one-stop window for farmers to acquire investments and market their products abroad.

Landlord-Tenant Issues

  • The Supreme Court has said tenant-landlord disputes under the Transfer of Property Act can be resolved through arbitration instead of time-consuming and expensive litigation.
  • The apex court held that arbitral tribunals have the power to decide such disputes under the Transfer of Property Act, 1882.
  • The verdict, which overruled the SC’s own 2017 judgment, was pronounced by a division bench headed by Justice NV Ramana and including Justice Sanjiv Khanna and Justice Krishna Murari on December 14 in a case between Vidya Drolia and Others versus Durga Trading Corporation.
  • Arbitration is a fair, responsive and efficient dispute resolution mechanism to meet contemporary requirements of the leasing industry.
  • This decision of the Supreme Court will pave the way for speedy disposal of such tenancy disputes to a greater extent and will de-stress the judicial system, which is struggling to clear the backlog of such cases.
  • The verdict assumes significance in the backdrop of the government’s efforts to push rental housing across the country and allow tenants more flexibility in terms of legal recourse in case of disputes with their landlords.
  • The Transfer of Property Act, like other laws, has a public purpose — to regulate landlord-tenant relationships — and the arbitrator would be bound by the provisions, including those that protect tenants, according to the 243-page court order.

Sugar Export Subsidy

  • The government on Wednesday announced a ₹3,500 crore subsidy for export of six million tonnes of sugar for 2020-21 marketing year, which has started in October, to help cash-strapped mills liquidate surplus sugar and clear sugarcane arrears to farmers.
  • The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA).
  • The subsidy will be transferred directly to the accounts of 50 million sugarcane farmers on behalf of the mills against cane price dues.
  • Mills will have to provide account details to the government for transferring the money in proportion to the cane bought by the farmers.
  • The subsidy, however, is 44% lower than last year when government had given export subsidy of ₹6,268 crore for six million tonnes.
  • The production of sugar this year is around 31 million tonnes while domestic consumption is estimated at 26 million tonnes.
  • Farmers will also get ₹5,368 crore in their accounts this week itself, which has been due as subsidies of past years.

 

 

 

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