| 15

BUSINESS

HYDERABAD

THE HINDU THURSDAY, DECEMBER 31, 2015

The incubation centres will have plug and play

facilities and all the 8 Centres of Excellence for
technical textiles have established the centres
KAVITA GUPTA, Textile Commissioner

SENSEX
30.12.15 25,960
29-12-15 26,079

119

POINTS

GOLD
30.12.15
29-12-15

25,650
25,650

/10gm

RUPEE
30.12.15 66.39
29-12-15 66.40

Governments clean fuel drive in reverse gear

A consensus couldnt be arrived at the meeting chaired by Road Transport and Highways Secretary, Vijay Chibber
SOMESH JHA

/$

0.96
$/bbl

Green light for

Rs. 5,000 crore sop for
rooftop solar power

The Centre may set

the new deadlines
for implementation
of Euro-V emission
standards

he Union governments crackdown on air pollution, by implementing stricter vehicular emission standards, is facing a delay
due to unavailability of suitable
fuel to support its clean
technology.
The government is now considering to postpone the implementation of Euro-V norms by a year to
2020 and that of Euro-VI norms to
2022, government officials said.
The implementation of Euro-V
emission standards for all vehicles
might take place by 2020 and of
Euro-VI by 2022, sources said. A final decision in this regard will be
taken in the next few days.
An inter-ministerial meeting,
attended by officials of Ministry of
Road Transport and Highways,
Petroleum, Heavy Industries and Environment, was held on
Wednesday. A conAUTO
sensus couldnt be arSECTOR
rived at the meeting
chaired by Road
emission
Transport and Highways Secretary, Vijay
Chibber.
Sources said the
Ministry of Petroleum officials expressed their inability to comply
with the early deadline to implement the clean fuel technology
which the government had earlier
mooted. The Ministry of Road
Transport and Highways was
pushing to implement the clean
fuel technology by the deadline of
2019 but the Ministry of Petroleum
wasnt ready to implement the
norms.
We are awaiting a response
from the Petroleum Ministry. The
officials wanted the BS-V (Bharat
Stage) norms to be postponed to
2020 as they said they are not
ready to supply these fuels, said
sources present in the meeting.
Another senior government official said there is a plan to implement BS-V norms from 2020 and
BS-VI norms from 2022 for all vehicles instead of separate deadlines for new and old vehicles. We

0.01

BRENT OIL
30.12.15 36.70
29-12-15 37.66

The Ministry of Road Transport and Highways is pushing to implement the clean fuel technology by the
deadline of 2019 but the Ministry of Petroleum is not ready to implement the norms.

may merge the separate deadlines

earlier proposed for new and existing vehicles. The BS-V norms
will be effective from 2020 for all
vehicles and BS-VI norms from
2022, the official said.
According to the draft notification issued by Ministry of Road
Transport and Highways in November, the Euro-V and Euro-VI
norms for new vehicles was to be
introduced from 2019 and 2021 respectively. The existing vehicles
need to switch to Euro-V and EuroVI norms from April 1, 2020 and
April 1, 2022 respectively.
Governments earlier roadmap
had proposed implementing BS-V
norms from April 1, 2022 and BSVI from April 1, 2024.
In view of deteriorating air
quality, it is agreed to take on a
more challenging task of compressing the timelines, Minister
of State Heavy Industries and Public Enterprises, G. M. Siddeshwara, had said in a written reply to a

Lok Sabha question earlier this

month.
However, sources said the Ministry of Heavy Industries officials
present in the meeting said they
wanted to implement BS-V norms

by 2020. The automobile industry

said the delay in implementing
clean fuel standards is not a good
sign.
As far as the industry is concerned, the situation hasnt

changed much with this proposal. We had welcomed the

implementation of BS-V
norms by 2019. We will be delaying cleaner vehicles by
one year which is not a good
situation to be in, said K. K
Gandhi, Executive Director
(Tech), Society of Indian Automobiles Manufacturers.
There has been growing
debate regarding rising air
pollution due to vehicles. Supreme Court recently banned
the registration of diesel cars
and SUVs with 2000 CC engine capacities in the Delhi
and the National Capital Region till March 31, 2016.
The Delhi government also
announced its plan to keep a
check on the rising air pollution by restricting the number of vehicles that can ply in
the national capital beginning January 1, 2016.
At present, BS-IV auto
fuels are being supplied in
over 30 cities, and the rest of
the country has BS-III fuels.

Two-wheelers face stricter emission norms

SOMESH JHA
NEW DELHI: Even as the Union
government is yet to issue a
final notification for adopting
clean fuel technology for
four-wheelers, it will soon
issue a draft notification for
stricter emission standards
for two-wheelers.
Two-wheelers will need to
upgrade to Euro-V and EuroVI emission standards from
2020 and 2022 respectively,
sources said. We are

examining the final

notification for fourwheelers.
Meanwhile, we will soon
issue a draft notification to
implement Euro-V and EuroVI for two-wheelers from
2020 and 2022 respectively.
It has been observed that
two-wheelers are more
polluting than the fourwheelers, said a senior
official in the Ministry of
Road Transport and
Highways.

The two-wheelers account

for 75 per cent of the total
vehicular population of the
country.
Earlier last year, the
government had notified
BS-IV norms for twowheelers and said it will
become effective from April
2016 for new models and April
2017 for the existing models.
The official said India is far
behind Europe in
implementing the BS-IV
norms for two-wheelers.

Higher allocation will support installation of 4,200 MW solar

rooftop systems in next five years.
YUTHIKA BHARGAVA
NEW DELHI: The Cabinet Com-

mittee on Economic Affairs

on Wednesday approved an
increase in the budget for implementation of grid-connected solar rooftop systems
to Rs.5,000 crore from Rs.600
crore up to the financial year
2019-2020.
This will support installation of 4,200 MW solar rooftop systems in the country in
next five years, according to
an official statement.
The capital subsidy of 30
per cent will be provided for
general category States and
Union Territories and 70 per
cent for special category
States, including Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Lakshadweep,
Andaman & Nicobar Islands
and those in the North-East.
There will be no subsidy for
commercial and industrial establishments in the private
sector since they are eligible
for other benefits such as accelerated depreciation, custom duty concessions, excise
duty exemptions and tax
holiday.
The capacity of 4,200 MWp
will come up through the resi-

There will be no
subsidy for
commercial
establishments in
the private sector
dential, government, social
and institutional sector, according to the statement, adding industrial and commercial sector will be encouraged
for installations without
subsidy.
This will create the market, build the confidence of
the consumers and will enable the balance capacity
through market mode to
achieve the target of 40,000
MWp by 2022, according to
the statement.
Revised target
The government has revised the target of National
Solar Mission (NSM) from
20,000 MWp to one lakh
MWp by 2022. Of that, 40,000
MWp is to come through grid
connected solar rooftop systems. This approval, according to the government, will
boost the installations in a big
way and will act as a catalyst
to achieve this goal.

Odisha seeks
more LPG
connections

AirAsia and Vistara pitch for Global growth to be disappointing in 2016: IMF
complete abolition of 5/20 rule

NATIONAL BUREAU

SOMESH JHA

NEW DELHI: Oil Minister Dhar-

NEW DELHI: Vistara, AirAsia India and Air India officials met
the Union Civil Aviation Secretary, R. N. Choubey on
Wednesday, to discuss the
draft civil aviation policy.
The incumbent airlines
represented by its body Federation of Indian Airlines
(FIA) didnt turn up for the
meeting and asked for another extension to express their
views on the draft civil aviation policy, sources said.
The civil aviation industry
is divided in their views on
the
international
flying
norms, also known as the 5/20
rule. While the new airlines
have demanded complete
abolition of the 5/20 rule, the

mendra Pradhan on Wednesday asked oil marketing companies to add 40 lakh new
LPG consumers by 2019 in
Odisha alone.
This would mean an addition of 10 lakh LPG consumers per year between 2016 and
2019.
The OMCs informed the
minister that they had added
7.5 lakh new customers this financial year.
Mr. Pradhan also directed
the OMCs in Odisha to set up
two new bottling plants in the
western part of the State to
meet the LPG requirements
of consumers. He also reviewed the current status of
various infrastructure projects, related to other petroleum products, being undertaken by the OMCs in the
state.

Exchange Rates
Indicative direct rates in rupees a unit
except yen at 4 p.m on December 30

TT
TT
Currencies
Buying Selling
U.S. Dollar
66.19 66.51
Euro
72.32 72.68
Pound Sterling
98.06 98.56
Jap Yen (100 Units) 54.93
55.21
Chinese Yuan
10.18
10.26
Swiss Franc
66.81
67.17
Singapore Dollar
46.85 47.09
Australian Dollar
48.28 48.53
Canadian Dollar
47.72
47.96
Swedish Kroner
7.89
7.93
Danish Kroner
9.69
9.74
New Zealand Dollar 45.38 45.63
Hongkong Dollar
8.54
8.58
Malaysian Ringitt
15.34 15.50
Kuwaiti Dinar
217.71 219.48
UAE Dirham
18.01
18.11
Bahraini Dinar
174.23 177.64
Qatari Riyal
18.21
18.25
Saudi Riyal
17.66
17.71
Omani Riyal
171.28 173.35
Source: Indian Bank

Bullion Rates
December 30 rates in rupees with
previous rates in brackets

Chennai
Bar Silver (1 kg)
Retail (1 g)
24 ct gold (10 g)
22 ct gold (1 g)
Delhi
Silver
Standard gold
Sovereign

33,370 (33,565)
35.70
(35.90)
25,540 (25,600)
2,388 (2,394)
33,550 (33,650)
25,650 (25,650)
22,200 (22,200)

CM
YK

The civil aviation

industry is divided
in their views on
the international
flying norms
private incumbent airlines,
including IndiGo, SpiceJet, Jet
Airways and GoAir, have opposed any move to relax the
rule.
According to the 5/20 rule,
any airline with five years of
domestic flying experience
and 20 aircrafts in its fleet is
allowed to fly on international
routes.
We shared our feedback
on the draft civil aviation policy in the meeting. The ministry heard our views on 5/20

BERLIN:
Global
economic
growth will be disappointing next year, the head of the
International Monetary Fund
rule, said AirAsias CEO and (IMF) said in a guest article
Managing Director Mittu for
German
newspaper
Chandilya.
Handelsblatt published on
Sources said the Union civil Wednesday.
aviation ministry asked the
IMF Managing Director,
airlines their views on what Christine Lagarde, said the
could be the best replacement prospect of rising interest
to 5/20 if the rule is not abol- rates in the U.S. and an ecoished completely. However, nomic slowdown in China
the new airlines called for were contributing to uncercomplete scrapping of the 5/ tainty and a higher risk of eco20 rule which is restricting nomic
vulnerability
them from flying abroad.
worldwide.
Even as FIA asked for postIn addition, growth in globponing the date to present its al trade has slowed consideraviews, sources said the Union bly and a decline in raw matecivil aviation ministry is keen rial prices is posing problems
to send the draft civil aviation for economies based on these,
policy for inter-ministerial while the financial sector in
comments in the first week of many countries still has weaknesses and financial risks are
January.
The draft policy was re- rising in emerging markets,
Ms. Lagarde added.
leased in October this year.

productivity, ageing populations and the effects of the

global financial crisis were
putting the brakes on growth.
She said the start of normalisation of the U.S. monetary policy and Chinas shift towards
consumption-led
growth were necessary and
healthy changes but needed
to be carried out as efficiently
and smoothly as possible.

Low productivity, ageing

populations and the effects of
the global financial crisis
were putting the brakes on
growth, says IMF Managing
Director, Christine Lagarde

All of that means global

growth will be disappointing
and uneven in 2016, Ms. Lagarde said, adding that low

Govt. works on steps to prop up sagging exports

ARUN. S
NEW DELHI: With merchandise
exports falling for an unprecedented 12th consecutive
month in November, the government is working on a slew
of measures to prop up export-oriented institutions, including Special Economic
Zones (SEZ) in the forthcoming Union Budget, official
sources told The Hindu.
Separately, the Centre has
called for a meeting (likely on
January eight) of representatives of all the State governments for the first time to expedite the notification of a
separate foreign trade policy
for each state and to push
through infrastructure creation measures that can support exports.
The Union Budget is likely
to have a package for SEZs to
ensure they are the focal point
of the Make In India initiative. In addition, to encourage
domestic manufacturing, the
Budget would address the inverted duty structure (where
the duty on inputs/raw materials / components is greater
than that on the finished
product) on several items, including on electronic hardware. The inverted duty
structure leads to higher imports of finished products.

Centre-State
Council on Trade
may meet on
January 8 for
discussing steps
Lowering of duties on inputs
will rectify this anomaly in
turn
benefiting
local
producers.
The Budget may also ease
guidelines for the Assistance
to States for Infrastructure
Development of Exports
(ASIDE) scheme to enable
the commerce ministry to
take up more projects such
as setting up of testing labs as
well as cold chain infrastructure at ports and airports in
partnership with the States.
Also, service tax on overseas
services (such as on testing
products, advertisements and
commission paid to agents)
availed by exporters may be
removed. The government
may also provide sops for
manufacturers / producers
(and not traders) particularly
in sectors such as engineering, gems and jewellery, leather and textiles (barring apparels) within the framework of
the Foreign Trade Policy.
Interest subvention (of
three per cent) is also likely to
be extended to large manufac-

Gradual tightening
The U.S. Federal Reserve
hiked interest rates for the
first time in nearly a decade
earlier this month and made
clear that was a tentative beginning to a gradual tightening cycle.
There are potential spillover effects with the prospect of increasing interest
rates there already having
contributed to higher financing costs for some borrowers,

Cabinet nod for

Railways, States JV

the North East, Tamil Nadu,

Maharashtra and Madhya
NATIONAL BUREAU
Pradesh.

Interest subvention (of three per cent) is also likely to be

extended to large manufacturers in some segments like
engineering and merchant exporters in sectors such as
carpets and agriculture.

turers in some segments like

engineering and merchant exporters in sectors such as carpets and agriculture. This is
because rate of export credit
in India is 11-12 per cent as
against 2-3 per cent in the euro area (except Greece), 2.6
per cent in Taiwan, 4.6 per
cent in Thailand, 5.5 per cent
in China and 6.2 per cent in
Malaysia, according to a study
by exporters body FIEO.
Meanwhile, the January
eight meeting of the CentreState Council on Trade-

chaired by Commerce Minister, Nirmala Sitharaman,

will look at trade-related ease
of doing business measures
including matters of local taxes and their waivers / timely
refunds, (lack of) availability
of land and uninterrupted
electricity as well as problems related to telecom and
road network. This is to reduce costs and enhance the
competitiveness of Indias exports. In this regard, the Centre has already held meetings
with states such as those in

SEZ revival package

The SEZ revival package is
likely to include incentives to
investors, including those
from overseas, to make use of
the land and other facilities
lying unused in the existing
zones. Other sops may include removal / lowering of
Minimum Alternate Tax and
Dividend Distribution Tax on
SEZs (that was imposed in the
FY12 Budget), as well as permission for SEZ units to sell in
the domestic tariff area (DTA
or domestic market) by paying the same duty as applicable to imports from countries
with which India has a free
trade agreement (FTA).
SEZs (which are duty/tax
free enclaves) have to currently shell out regular duties
for sales in the domestic market making their products
costlier when compared to
imports from FTA partner
countries that come in at zero
or lower than regular duties.
Meanwhile, a proposal that
was being considered by the
finance ministryto abolish
direct tax benefits for SEZs
not operationalised before
April, 2017is also likely to
be shelved.

including in emerging and developing markets, Ms. Lagarde said.

She added that while countries other than highly developed economies were generally better prepared for higher
interest rates than they had
been in the past, she was concerned about their ability to
absorb shocks.
Most highly developed
economies except the U.S.
and possibly Britain will continue to need loose monetary
policy but all countries in this
category should comprehensively factor spillover effects
into their decision-making,
Ms. Lagarde said.
She warned that rising U.S.
interest rates and a stronger
dollar could lead to firms defaulting on their payments
and that this could then infect
banks
and
states.Reuters

NEW DELHI: The Union Cabinet

on Wednesday gave approval

to form joint venture companies with state governments
to mobilise resources for various rail infrastructure projects in a bid to give push to
the infrastructure sector.
To improve connectivity
between India and Myanmar,
the Union Cabinet gave its
nod for the construction of 69
bridges including approach
roads on the Tamu-KyigoneKalewa (TKK) road section of
the Trilateral Highway in
Myanmar. It also cleared the
setting up of a multi-modal
park in Visakhapatnam.
In the railways joint venture, the Union Cabinet decided to limit the initial paid
up capital of Ministry of Railways to Rs.50 crore for each
state.
Rail projects
The JVs are aimed at financial participation of the states
as well as faster decisionmaking process to ensure
speedy implementation of rail
projects in respective states.
At present, many rail projects are delayed due to financial crunch.

Multi Modal
Logistics Park by
CONCOR at
Visakhapatnam
also got approval
In another move, the Union
cabinet approved the exchange of Airports Authority
of Indias (AAI) land measuring 11.45 acres at Visakhapatnam Airport with an equivalent area of land offered by
Visakhapatnam Port Trust for
setting up of Multi Modal Logistics Park (MMLP) by the
Container Corporation of India
(CONCOR)
at
Visakhapatnam.
Double taxation
The Cabinet also approved
the signing of a protocol to
amend the convention between India and Slovenia for
the Avoidance of Double Taxation and the Prevention of
Fiscal Evasion with respect to
Taxes on Income.
Further, the Cabinet Committee on Economic Affairs
gave nod to the signing and
ratification of an Agreement
for the exchange of information between India and Maldives with respect to taxes.
HY-TG