1. Important Cabinet Approvals- 10th January 2018
i. The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given the following set of approvals. The important Cabinet Approvals are given as follows-
The Cabinet has approved-
1. MoU between India and Canada for cooperation in the field of Science & Technology. The MoU will provide a mechanism and help to foster scientific cooperation between R&D and academic institutions of India and Canada.
2. Implementation of CCEA decision on the closure of Tungabhadra Steel Products Limited.
3. Fixed term for Chairperson and Members of the National Trust- Cabinet approved the proposal to amend Section 4(1) and Section 5(1) of the National Trust for the Welfare of Person with Autism, Cerebral Plasy, Mental Retardation and Multiple Disabilities Act, 1999 to fix the term of the Chairperson and Members of the Board of National Trust for three years.
2. Karnataka Tops States with Investment Intentions of Rs. 1.49 lakh crore
i. Karnataka topped all states with investment intentions of Rs. 1.49 lakh crore till October 2017, according to R V Deshpande, Karnataka Minister for Large, Medium Industries and Infrastructure Development
ii. The investment was 43 percent of the country’s total investment intentions. Karnataka has topped in FDI inflows and has performed well in exports, contributing about 40 percent in electronics and software services.
- Karnataka CM- Siddaramaiah, Governor- Vajubhai Vala.
3. India’s 1st All-Women Railway Station in Mumbai Enters Limca Records
i. The Matunga suburban station on the Central Railway (CR) has found its way into the Limca Book of Records for having an all-woman staff.
ii. The achievement comes six months after Matunga became the first railway station in the country to be run by an all-woman staff. The station is being manned exclusively by women staffers since July 2017, a first on the Indian Railways.
- Matunga station is situated in Mumbai, Maharashtra.
4. Paytm Launches Investment Arm, to Invest $10 million
i. Paytm has set up a new entity called Paytm Money Ltd that will offer investment and wealth management products and will invest close to $10 million upfront in the new entity.
ii. Paytm Money is the fourth product from One97’s stable after Paytm Mall, Paytm Payments Bank and Paytm wallet. It will be available as a separate mobile application to users.
- Paytm is run by One97 Communications Ltd.
- Vijay Shekhar Sharma is the founder of One97 Communications.
5. Cabinet Approves Amendments in FDI Policy, Policies Further Liberalized
i. In the financial year 2016-17, total FDI of US $ 60.08 billion has been received, which is an all-time high. The Cabinet chaired by PM Narendra Modi has approved amendments in FDI Policy and further liberalized few of the policies of FDI.
ii. Key Highlights-
- 100% FDI under automatic route for Single Brand Retail Trading.
- 100% FDI under automatic route in Construction Development.
- Foreign airlines allowed to invest up to 49% under approval route in Air India.
- FIIs/FPIs allowed to invest in Power Exchanges through primary market.
- Definition of ‘medical devices’ amended in the FDI Policy.
Government approval no longer required for FDI in Single Brand Retail Trading (SBRT)
Extant FDI policy on SBRT allows 49% FDI under automatic route, and FDI beyond 49% and up to 100% through Government approval route. It has now been decided to permit 100% FDI under automatic route for SBRT.
As per the extant policy, foreign airlines are allowed to invest under Government approval route in the capital of Indian companies operating scheduled and non-scheduled air transport services, up to the limit of 49% of their paid-up capital. However, this provision was presently not applicable to Air India, thereby implying that foreign airlines could not invest in Air India. It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49% under approval route in Air India.
Construction Development: Townships, Housing, Built-up Infrastructure and Real Estate Broking Services
It has been decided to clarify that real-estate broking service does not amount to real estate business and is, therefore, eligible for 100% FDI under the automatic route.
The extant policy provides for 49% FDI under automatic route in Power Exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010. It has now been decided to do away with this provision, thereby allowing FIIs/FPIs to invest in Power Exchanges through the primary market as well.