With elections in sight, low food prices are a budget problem for PM Modi

A low inflation spell in an election year should be good news for any government, right? Wrong.

For Prime Minister Narendra Modi, the subdued inflation numbers, due largely to low food prices, may present a budget problem. His government may have to shell out more to compensate farmers for low market prices of some crops under a plan announced this year with a view to double farm incomes by 2022.

“India’s falling food prices could become a bane for Modi,” said Soumya Kanti Ghosh, chief economic adviser at the nation’s largest lender State Bank of India. “A bumper harvest that’s led to crashing of food prices will increase the burden on the government to compensate farmers.”

In July, the government raised support prices of crops such as cotton, soybeans and paddy rice to ensure farmers get at least 50 per cent more than the estimated production costs. That means in the event of a crash in market prices, the government would have to chip in and ensure the sale of the produce by farmers at guaranteed prices.

Aadhaar database can be misused and abused: Edward Snowden

A day after the Unique Identification Authority of India (UIDAI) denied that there was any breach of the Aadhaar database, American whistleblower Edward Snowden said on Friday that the Aadhaar database conceived and introduced by the Indian government can also be misused and abused.

Retweeting CBS journalist Zack Whittaker's response on a BuzzFeed report on the breach of Aadhaar database in India, Snowden said, "It is the natural tendency of government to desire perfect records of private lives. History shows that no matter the laws, the result is abuse."

Whittaker had earlier said, "ICYMI. India has a national ID database with the private information of nearly 1.2 billion nationals. It's reportedly been breached. Admin accounts can be made and access can be sold to the database, reports BuzzFeed."

The UIDAI on Thursday said the Aadhaar data including biometric information is fully safe and secure.

It termed The Tribune report titled 'Rs 500, 10 minutes, and you have access to billion Aadhaar details' a case of misreporting.

"There has not been any Aadhaar data breach. The Aadhaar data including biometric information is fully safe and secure," the UIDAI said in a statement.

This development has come at a time when the Supreme Court is set to begin the final hearing of petitions challenging the legality of Aadhaar programme based on privacy concerns on January 17.

In August 2017, the Supreme Court held that privacy is a fundamental right under the Constitution of India.

Tata Motors flags off first batch of Tigor electric cars from Sanand plant

Tata Motors on Wednesday rolled out the first batch of the Tigor electric vehicle (EV) from its Sanand facility in Gujarat.

The vehicles are part of the tender floated by the Energy Efficiency Services Ltd (EESL) for 10,000 EVs.

"This occasion is a significant milestone for Tata Motors and a proud moment for the entire team," Tata Group Chairman N Chandrasekaran said in a statement.

He further added: "As we work together to build the future of e-mobility in India, I am confident that our customers will respond very favourably to this electric model.

Tata Motors CEO & MD Guenter Butschek said with Tigor EV, the company has begun its journey in boosting e-mobility and offering a full range of electric vehicles to the Indian customers.

"This tender (EESL) has effectively paved way for connecting our aspirations in the e-mobility space with the vision of the government," he added.

In September, Tata Motors had emerged as the lowest bidder for 10,000 electric cars tender issued by EESL.

For phase one, Tata Motors is required to deliver 250 Tigor EVs to EESL.

When our soldiers fought the Chinese, you hugged their envoy: Modi to Rahul

In a stinging attack on the Congress in poll-bound Gujarat, Prime Minister Narendra Modi on Monday said the upcoming Assembly election is a fight between trust on development and dynastic politics.

He was addressing a BJP rally in Kutch district's Bhuj town ahead of the first phase of the elections on December 9.

He also alluded to allegations thrown at him during the campaign by Congress leaders, including party vice-president Rahul Gandhi.

"This Gujarat son has no stains in his public life. You come to the state and level baseless allegations on the son of the soil... the people of the state will not forgive you," he said.

During his campaign in the state in the last few days, Gandhi had trained his guns at the Modi-led government over the Rafale fighter aircraft deal.

"The Gujarat election is a contest between trust on development and dynastic politics," the prime minister said at the rally.

Taking another dig at the opposition party, which is making all-out efforts to dislodge the long-ruling BJP in Gujarat, Modi asked, "When our soldiers were standing eye-to-eye in Dokalam for 70 days, why were you hugging the Chinese ambassador."

The Prime Minister will address a series of campaign meetings on Monday and on Wednesday in Saurashtra and South Gujarat, which go to the polls on December 9.

The elections to the 182-member Gujarat Assembly will be held in two phases on December 9 and 14. The counting of votes will be on December 18.

It's a shame Indians don't want to pay taxes: SC talks tough on Aadhaar

The Supreme Court on Wednesday asked why there was no objection from lawmakers on the government’s decision to make Aadhaar mandatory for making permanent account number (PAN) cards, a move which was given effect by the latest budget from July 1.

“542 persons are sitting in Parliament, why do they not object to it? If they are not objecting, why should we go into it,” a Bench comprising Justices A K Sikri and Ashok Bhushan said.

When it was told that the Centre has earlier made a statement in the apex court that it would not make Aadhaar mandatory, the Bench said, “They cannot be bound by it. It cannot preclude Parliament from enacting a statutory provision.”

The court was hearing three petitions challenging the constitutional validity of section 139AA of the Income Tax (IT) Act. Section 139AA, introduced through the latest Budget and the Finance Act, 2017, provides for mandatory quoting of Aadhaar or enrolment ID of Aadhaar application form for filing of I-T returns and making application for allotment of PAN with effect from July 1, 2017.

The Bench also observed that tax evasion existed in India and it was a “shame” that citizens do not want to pay taxes.

The court said there was no doubt that Aadhaar should be voluntary and observed since tax evasion existed, the government could bring in new statute to stop such “leakage”.

Defending the Centre’s stand to make Aadhaar mandatory for filing of income tax returns and to apply for PAN, Attorney-General Mukul Rohatgi referred to around 10 lakh fake PAN cards and said Aadhaar was the only system which could prevent duplication or fake cards.

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Govt raises Rs 6,700 cr from 2% stake sale in ITC

India has sold a 2 per cent stake in consumer goods and cigarettes maker ITC Ltd, raising about Rs 6,700 crore ($995 million) for the government, three sources with direct knowledge of the deal said on Tuesday.

State-owned Specified Undertaking of Unit Trust of India (SUUTI), which owned 11.12 per cent of ITC as of end-December, pared the stake via block deals in the market, the sources said.

Life Insurance Corp (LIC), which typically invests heavily in government divestments, bought the stake, the sources added. While LIC is fully owned by the government, its financials are independent of the government's budget.

ITC shares rose as much as 5.5 per cent in early trade to a record high of Rs 292.15 after news of the sale.

Neeraj Gupta, the top bureaucrat looking after state stake sales, confirmed a deal had happened, but declined to give details. India plans to raise Rs 45,500 crore from asset sales in the year to March to help fund its fiscal deficit.(Read More)

Budget 2017: IBF seeks 'Infrastructure Status' for brodcasting industry

Budget 2017 - Ahead of the Union Budget, a top body of broadcasters has written to the government seeking "Infrastructure Status" for the broadcasting industry.

According to sources, the Indian Broadcasting Foundation (IBF), a body which has leading broadcasters as its members, has in a representation to the Finance Ministry said the Indian broadcasting industry is a mass employment creator which as of date has employed nearly 10 million people across the value chain.

Given its large size and revenue projections, the sector is expected to contribute Rs 30,000 crore to Rs 35,000 crore in the form of direct and indirect taxes by 2020.

The broadcasters have argued that in the present era of convergence of telecommunication, information technology (IT) and broadcasting technology, the distinction between telecom services and broadcasting services has got blurred.

They have also mentioned that by way of a notification January 9, 2004 issued by the Ministry of Communication and Information Technology (Department of Telecommunications), the Centre has notified broadcasting services and cable services to be Telecommunication Service under TRAI Act 1997.

Yet it is inexplicable that whereas the telecom is considered as infrastructure sector and thus entitled to various benefits and incentives, the same is denied to Broadcasting and Content Distribution Sector, the IBF is learnt to have conveyed.(Read More)

Failed expectations? Tax mop-up may decline in new amnesty scheme

Breaking News - The government might receive Rs 5,500 crore as tax by those declaring hitherto undisclosed in the amnesty scheme that closes next March.

The government received Rs 6,800 crore as tax in a scheme that ended in September, lower than the initially expected Rs 7,500 crore.

Those declaring unaccounted wealth till September were allowed to pay 25% of the tax amount in two installments by November 30 and March 31 and 50% in a third installment by September 30, 2017. Many evaders paid the entire tax due by using demonetisation Rs 500 and Rs 1,000 notes, an official said. “Many people have overpaid the first instalment. 

Some have even paid the full amount due, while others have paid 50% or 70%. They used this as an opportunity to discard their old notes,” the official added.

Those declaring undisclosed income in the previous scheme had to pay 45% of the declared amount as taxes, penalty and surcharge. Although the government earlier said it had verified disclosures of Rs 67,382 crore, declarations of over Rs 10,000 crore were cancelled. This was higher than the Rs 65,250 crore announced by the government a day after the scheme closed.(Read More)