English Release 24-July 2014
- President's Secretariat
- President of India condoles the loss of lives of school children in a bus accident in Telangana
- President of India inaugurates bank and post office at their new locations in the President’s estate
- Prime Minister's Office
- Nagaland Governor calls on PM
- PM condoles loss of lives in accident in Medak district
- Delegation from Aga Khan Foundation meets PM
- Department of Atomic Energy
- Production of Atomic Energy in Gujarat
- Preparation of Nuclear and Radiation Safety Policy
- Facilities for Workers in Atomic Projects
- Concern Over Nuclear Liability Law
- Rare Earths in Kollam
- Department of Space
- Launching of Mars Orbiter Mission Spacecraft
- Launching of SAARC Satellite
- Problem of Waste Deposits in Space
- Space Projects Initiated/Pending Completion
- Min of Civil Aviation
- Civil Aviation Minister Directs Officials to Improve
Maintenance at Chennai Airport
- Min of Coal
- Import Policy for Coal
- Projects of CIL
- Min of Defence
- MALABAR – 2014
- Min of External Affairs
- Strengthening of India-Asean ties
- Revisiting of nuclear liability bill
- Hiring of consultants for business promotion
- Complicated procedure for passports
- Text of the Statement on Calling Attention Motion on "Situation Arising out of Indians Stranded in Iraq and Steps Taken by the Government in this Regard" in the Lok Sabha by the Minister
- Ministry of Finance
- Indirect Tax Revenue (Provisional) Collections During April-June 2014 Increase from Rs 1,08,639 Crore to Rs.1,13,570 Crore Registering an Increase of 4.5 % over the Corresponding Period in last Financial Year
- Government Approves 19 Proposals of Foreign Direct Investment (FDI) Amounting to about Rs. 2326.72 Crore
- Special Arrangements Made for Accepting Returns of Income
- Min of Minority Affairs
- Social and Educational Uplift of Minorities
- Scholarship to Students of Minority Community
- Setting up of Minority Commission
- Min of New and Renewable Energy
- Setting up of Biogas Plants
- Production of Bio-Compressed Natural Gas
- Jawaharlal Nehru National Solar Mission
- Installation of Solar Water Pumps
- Min of Overseas Indian Affairs
- Support to Indian workers overseas
- Problem due to weak immigration laws
- Legal assistance to overseas Indians
- Complaints against fraudulent recruiting agents
- Centre to help Indian workers abroad
- Min of Personnel, Public Grievances & Pensions
- Combined Medical Services Examination, 2014
- Special Cadre for Super Specialist Doctors
- Award to Industrious Government Staffers
- Min of Petroleum & Natural Gas
- Delhi MPs meet the Petroleum and Natural gas Minister to discuss PNG issues
- Global crude oil price of Indian Basket decreased to US$ 105.56 per bbl on 23.07.2014
- Min of Power
- Privatisation of Electricity Production
- Power for All
- Steps Taken To Increase Power Production
- Ministry of Railways
- Advance Booking of Reserved Train Tickets
- Advance Booking of Reserved Train Tickets
- Modernisation of Railway Network
- Running of Summer Special Trains
- Development of Railway Stations for Tourism
- Emergency Medical Facilities in Trains
- Min of Social Justice & Empowerment
- National Commission for Backward Classes
- National Overseas Scholarships for SC's
- Legislature on Eradication of Manual Scavenging
- Drug Abuse among Citizens
- Min of Statistics & Programme Implementation
- Review of Function of MPLADS
- Ministry of Water Resources
- Narmada Canal Project
- Ganga Manthan
- Areas under Water Bodies
- Water Logging and Salinity in
- Availability of Surface and Ground Water
- Indo-Nepal Joint Ministerial Commission
on Water Resources
- Flood Management
- Min of Women and Child Development
- Two lakh Anganwadi Centre Buildings approved for construction by Government in 12th Plan
- Logo Design Competition launched for ‘Beti Bachao Beti Padhao’ Campaign
Prime Minister's Office02-January, 2009 17:33 IST
|Additional Government Measures for Stimulating the Economy|
|The Government is committed to taking steps for minimizing the impact of the global financial crisis on the Indian economy. To this end, Government has taken a number of steps since October 7, the most recent being the measures announced on 7.12.2008. These included:
(i) Additional plan expenditure upto Rs. 20,000 cr. in the current year mainly for critical rural, infrastructure and social security schemes such as Pradhan Mantri Gram Sadak Yojana (PMGSY), Jawaharlal Nehru National Urban Renewal Mission (JNNURM), National Rural Employment Guarantee Scheme (NREGS), Indira Awas Yojana, Accelerated Irrigation Benefit Programme and National Social Assistance Programme (NSAP).
(ii) An across-the-board cut of 4% in ad-valorem Cenvat rate except for petroleum products.
(iii) Several other measures to support exports, housing, Micro, Small & Medium Enterprises (MSME) and textile sectors.
(iv) Authorising India Infrastructure Finance Company Limited (IIFCL) to raise Rs. 10,000 cr. to refinance bank lending for infrastructure projects.
Subsequently, other measures have also been taken such as removal of ban on export of cement.
.2. Additional steps are being taken on the monetary, credit and fiscal front to further strengthen the contra-cyclical stance of policy. The Reserve Bank has today announced a set of measures. In addition, with a view to further liberalizing the policy on External Commercial Borrowing (ECB), the Government and the RBI have decided:
(a) The ‘all-in-cost’ ceilings on such borrowing would be removed, under the approval route of RBI;
(b) To facilitate access to funds for the housing sector, the ‘development of integrated townships’ would be permitted as an eligible end-use of the ECB, under the approval route of RBI;
(c) NBFCs, dealing exclusively with infrastructure financing, would be permitted to access ECB from multilateral or bilateral financial institutions, under the approval route of RBI.
(d) In order to give a boost to the corporate bond market, FII investment limit in rupee denominated corporate bonds in India would be increased from US $ 6 bn to US $ 15 bn.
The decisions at points (a) to (c) would be reviewed after June 30, 2009.
3. The flow of credit to the economy will be further enhanced by the following:
(i) An SPV will be designated shortly to provide liquidity support against investment grade paper to Non Banking Finance Companies (NBFCs) fulfilling certain conditions. Details will be announced separately. The scale of liquidity potentially available through this window is Rs.25,000 crores.
(ii) An arrangement will be worked out with leading Public Sector Banks to provide a line of credit to NBFCs specifically for purchase of commercial vehicles.
(iii) Credit targets of Public Sector Banks are being revised upward to reflect the needs of the economy in the present difficult situation. Government will closely monitor, on a fortnightly basis, the provision of sectoral credit by public sector banks.
(iv) Special monthly meetings of State Level Bankers’ Committees would be held to oversee the resolution of credit issues of micro, small and medium enterprises by banks. Department of MSME and Department of Financial Services will jointly set up a Cell to monitor progress on this front. Matters of MSMEs remaining unresolved with the Banks- SME Helpline for more than a fortnight may be brought to the notice of this Cell.
(v) Recently the guarantee cover under Credit Guarantee Scheme for micro and small enterprises on loans was extended from Rs.50 lakh to Rs.1 crore with a guarantee cover of 50%. In order to enhance flow of credit to micro enterprises, it has been further decided to increase the guarantee cover extended by Credit Guarantee Fund Trust to 85% for credit facility upto Rs.5 lakh. This will benefit about 84 per cent of the total number of accounts accorded guarantee cover.
4. State Governments are facing constraints in financing expenditure because of slower revenue growth. To help maintain the momentum of expenditure at the state government level, states will be allowed to raise in the current financial year additional market borrowings of 0.5% of their Gross State Domestic Product (GSDP), amounting to about Rs 30,000 crore, for capital expenditures.
5. India Infrastructure Finance Company (IIFCL), which has already been authorized to raise Rs.10,000 cr. through tax free bonds by 31.03.2009 for refinancing bank lending of longer maturity to eligible infrastructure bid based PPP projects, will be accessing the market next week for raising the first tranche of the amount. This will enable the funding of mainly highways and port projects on hand of about Rs.25,000 crore. To fund additional projects of about Rs.75,000 crore at competitive rates over the next 18 months, IIFCL is being enabled to access in tranches an additional Rs.30,000 crores by way of tax free bonds once funds raised in the current year are effectively utilized.
6. Exporters are especially hit by recessionary conditions globally. To support exports a number of steps have been taken. As a further measure:
(i) Taking into account the fact that the rupee has appreciated nearly four per cent against the dollar since November 2008, it has been decided to restore DEPB rates to those prevailing prior to November 2008. In order to provide predictability and stability of regime in the short term for future contracts, the DEPB Scheme would be extended till 31.12.2009.
(ii) Duty drawback benefits on certain items including knitted fabrics, bicycles, agricultural hand tools and specified categories of yarn are being enhanced. These changes will take effect retrospectively from September 1, 2008.
(iii) Exporters have raised a number of procedural issues where modification of procedures could reduce delays faced by exporters. To consider these and similar problems, Government has decided to constitute a Committee under the chairmanship of the Finance Secretary including Secretaries of the Departments of Revenue and Commerce to look into and resolve these issues on a fast-track basis.
(iv) EXIM Bank has obtained from RBI a line of credit of Rs.5000 crore and will provide pre-shipment and post-shipment credit, in rupees or dollars, to Indian exporters at competitive rates.
7. Other measures designed to counter recessionary trends are the following:
(i) Exemptions from CVD on TMT bars and structurals, and from CVD and Special CVD on cement, which were given to contain inflation, are being withdrawn. Full exemption from basic customs duty on zinc and ferro alloys, which was also provided to contain inflation, is being similarly withdrawn.
(ii) GOI will work with State Govts. to encourage them to release land for low income and middle income housing schemes.
(iii) States, as a one time measure upto 30.06.2009, will be provided assistance under the JNNURM for the purchase of buses for their urban transport systems. A scheme towards this end will be announced shortly.
(iv) Accelerated depreciation of 50% will be provided for commercial vehicles to be purchased on or after 1.1.2009 upto 31.03.09.
8. Government is closely monitoring its spending to expedite the pace of expenditure for all schemes and programmes. Government will set up a fast track monitoring committee to ensure expeditious approval and implementation of central projects. Chief Ministers are being advised to do the same.
9. The measures outlined above taken together with steps taken earlier constitute a substantial counter-cyclical stimulus in the current year. Government does not envisage any further measures in the current fiscal year. However, Government is aware that the measures required to provide an economic stimulus to the economy have to extend beyond the current financial year. Towards this end, it is finalising Plan and Non-Plan expenditure that will be required in the next financial year to maintain the tempo. The Plan for the next year will include proposals for recapitalization of the public sector banks. The recapitalization is expected to be of the order of Rs.20000 crore over the next two years. This will help to ensure that the banking system will not suffer from capital adequacy constraints in order to provide credit growth needed to sustain the economic momentum in 2009-10.
(Release ID :46360)