ISSUE: 560 2024 19 June 2024

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Union Cabinet approves MSP for 14 Kharif

crops including paddy, ragi, bajra, jowar,
maize, and cotton: The Union Cabinet on June
19 approved Minimum Support Prices (MSP) for 14
Kharif season crops, including Paddy, Ragi, Bajra,
Jowar, Maize, and Cotton, announced Information
& Broadcasting Minister Ashwini Vaishnaw during
a Cabinet briefing. The highest absolute increase in
MSP over the previous year has been recommended for oilseeds and
pulses -- nigerseed hiked by Rs.983 per quintal, followed by sesamum by
Rs 632 per quintal and tur/arhar by Rs 550 per quintal. Vaishnaw, who is
also the Railway minister, affirmed that the government is dedicated to
ensuring farmers receive prices set at 50 percent above the input cost,
with all decisions aimed at achieving this goal. The MSP for paddy has
been set at Rs 2,300 per quintal, ensuring that rice farmers receive fair
compensation for their yield. The MSP for cotton has been set at Rs 7,121
per quintal for medium staple and Rs 7,521 per quintal for long staple.
(Moneycontrol)Govt monetises Rs 1.56 trn assets in FY24, falls
short of Rs 1.8 trn target: The government monetised assets worth Rs
1.56 trillion under the National Monetisation Pipeline (NMP) in 2023-24,
lower than the target of Rs 1.8 trillion , an official statement said on
Wednesday. Under the NMP, the aggregate monetisation potential of the
central government's brownfield infrastructure assets has been estimated
at Rs 6 trillion over a four-year period, from FY22 to FY25. During the
financial year 2023-24, against the target of Rs 1.8 trillion , the
achievement has been around Rs 1.56 trillion.
(Business Standard)
Net FDI in India improves to $4 billion in April, says RBI
bulletin: The net foreign direct investment (FDI) in India, inflows minus
outflows, improved to $4.0 billion in April 2024 from $2.82 billion a year
ago primarily on account of moderation in repatriation of capital.
According to Reserve Bank of India data, the direct investment into India
rose to $4.89 billion in the first month of the current financial year from
$3.92 billion in April 2023. The outward FDI by India declined
marginally to $932 million in April 2024 from $1.09 billion a year ago.
(Business Standard)

RBI invites applications for recognition of

SROs for NBFCs: The Reserve Bank of India (RBI)
has invited applications for Self-Regulatory
Organisations (SROs) to oversee non-banking
financial companies (NBFCs), including Investment
and Credit Companies (NBFC-ICCs), Housing
Finance Companies (HFCs), and Factors. The SRO
may also include other NBFC categories. RBI
emphasizes a diverse membership including smaller NBFCs, requiring at
least 10% representation from the total in the Base Layer of its Scale
Based Regulatory Framework. As per the SRO application rules, the
applicant will have to achieve a minimum net worth of Rs 2 crore within a
period of one year after recognition as an SRO by the Reserve Bank, or
before commencement of operations as an SRO.
(Economic Times)
Axis Bank entities to up stake in Max Life Insurance at Rs 336
crore: Axis Bank and its various subsidiaries' boards have approved
raising their stake in Max Life Insurance to 19.99 per cent at Rs 336 crore
in a cash deal, the private lender said in a stock exchange filing on
Wednesday. Axis Bank, its subsidiaries Axis Securities and Axis Capital,
together previously held 19.02 per cent stake in the life insurance
company. "The Acquisitions, Divestments and Merger Committee of the
Board of Directors of the Bank at its meeting held on June 19, 2024, has
approved a proposal for acquisition of additional equity shares of Max
Life by the Bank for an amount of upto Rs. 336 crore, thereby increasing
the aggregate shareholding of the Axis Entities from T19.02 per cent to
19.99 per cent," the statement read.
(Economic Times)
New UPI-enabled Rupay credit card launched by Federal Bank:
Federal Bank, in collaboration with National Payments Corporation of
India (NPCI), has launched RuPay Wave Credit Card that empowers
customers with the convenience of UPI-powered transactions on robust
RuPay network, according to the bank press release. This offering will
seamlessly integrate the benefits and features of RuPay credit cards with
the experience of UPI payments, ushering in a new era of simplicity and
efficiency in digital transactions, the bank said.
(Economic Times)
Indian deposit insurer way behind global peers in processing
reimbursements: RBI Deputy Governor: RBI deputy governor
Michael Patra highlighted that India's deposit insurer DICGC lagged
behind international counterparts in processing reimbursements, taking
over a month compared to IADI's target of seven days. Challenges such as
data quality, identification issues, and lack of alternative bank accounts
hinder quick payouts. India mandates deposit insurance for all banks,
covering 1,997 institutions, with a coverage limit of Rs 5 lakh per
depositor. Patra emphasised the need or improved risk management and
crisis frameworks in light of evolving challenges, such as climate change
impacting financial systems.
(Economic Times)
Gautam Adani to invest $100 billion in energy transition over
the next decade: Adani group has plans to invest over $100 billion in
energy transition projects and manufacturing
capability to produce every major component
required for the green energy generation,
Chairman of the group Gautam Adani said on June
19. Speaking at the 'Infrastructure - the Catalyst
for India's Future' event organized by Crisil,
Gautam Adani underscored India's immense
potential of energy transition and digital
infrastructure. “The next decade will see us invest more than $100 billion
in the energy transition space and further expand our integrated
renewable energy value chain that today already spans the manufacturing
of every major component required for green energy generation,” he
added.
(Moneycontrol)
Separate authority for India’s Expressways on cards: The Centre
is working on a proposal to establish a separate authority dedicated to the
development and management of expressways, government sources have
told Business Today TV. The idea is part of the Road Transport and
Highways Ministry’s 100-day agenda and is being discussed internally at
this stage. While the National Highway Authority of India (NHAI) focuses
on the construction of national highways, the new expressway authority
would specifically handle expressways, which have different construction
codes and tolling systems. This move is seen as essential to cater to the
growing focus on expressway infrastructure. The national masterplan for
the development of the national highways, and expressways network for
2047 is expected to significantly expand the transportation infrastructure
network across India. Under this plan, a total of 50,000 kilometers of
access-controlled expressways are proposed to be built across India in a
manner that ensures that any location is within 100-125 kilometers of an
expressway.
(Business Today)
Cabinet approves development of Rs 76k
crore all-weather port in Maharashtra's
Vadhavan: The Union Cabinet on June 19
approved the development of an all-weather deep-
water port at Vadhavan near Dahanu in
Maharashtra. "In Maharashtra's Dahanu of Palghar
district, a project of Rs 76,200 crore has been
approved for Vadhavan Port. The project will create
a cumulative capacity of 298 million metric tons (MMT) per annum,
including around 23.2 million TEUs (Twenty-foot equivalents) of
container handling capacity," Information & Broadcasting Minister
Ashwini Vaishnaw said during the Cabinet briefing. Upon completion, the
Vadhavan port will be one of the top 10 ports in the world. The capacities
created will also aid EXIM trade flow through IMEEC (India Middle East
Europe Economic Corridor) and INSTC (International North South
Transportation Corridor). The port, to be helmed by Jawaharlal Nehru
Port Trust (JNPT), would come up in the eco-sensitive Dahanu taluka in
Maharashtra’s Palghar district, around 150 km from Mumbai.
(Moneycontrol)
Union Cabinet announces economic decisions worth over
₹2.88-lakh crore: The Union Cabinet on Wednesday took 5 economic
decisions with an estimated expenditure of over ₹2.88-lakh crore. These
include raising the Minimum Support Price (MSP) for 14 Kharif crops,
setting up a green field port, and expanding Varanasi airport, among
others. Talking about MSP, he said that MSPs have been raised between
₹117 and ₹983 for Kharif crops for marketing season 2024-25, to ensure
remunerative prices to the growers for their produce. “The hike is
expected to give a total benefit of ₹2-lakh crore to farmers. The estimated
financial outgo for Varanashi International Airport will be over ₹2,800
crore for enhancing the passenger handling capacity of the airport to 9.9
million passengers per annum (MPPA) from the existing 3.9 MPPA. In an
effort to boost renewal energy, the cabinet approved the Viability Gap
Funding (VGF) scheme for offshore wind energy projects at a total outlay
of ₹7,453 crore. This will include an outlay of ₹6,853 crore for the
installation and commissioning of 1 GW of offshore wind energy projects
and a grant of ₹600 crore for the upgradation of ports to meet logistics
requirements for offshore wind energy projects. In order to help with the
implementation of three new criminal laws, the cabinet approved the
proposal of the Home Ministry for Central Sector Scheme “National
Forensic Infrastructure Enhancement Scheme (NFIES) with a total
financial outlay of ₹2,254.43 crore during the period from 2024-25 to
2028-29.
(Business Line)

RBI KEY RATES FOREX EQUITY

(RBI REF. ) /COMM. MARKET
Repo Rate: 6.50% INR / 1 USD : 83.4251 Sensex: 77337.59 (+36.45)
SDF: 6.25% INR / 1 GBP : 106.1573 NIFTY: 23516.00 (-41.90)
MSF /Bank Rate: 6.75% INR / 1 EUR : 89.5496 Bnk NIFTY: 51398.05 (+957.15)
CRR: 4.50% INR /100 JPY: 52.8700
SLR: 18.00%
BUSINESS/FINANCIAL CONCEPTS
GIG ECONOMY
 A gig economy is a labor market that relies heavily on temporary and part-time
positions filled by independent contractors and freelancers rather than full-time
permanent employees.
 Gig workers gain flexibility and independence but little or no job security. Many
employers save money by avoiding paying benefits such as health coverage and paid
vacation time. Others pay for some benefits to gig workers but outsource the benefits
programs and other management tasks to external agencies.
 Examples of gig workers include freelancers, independent contractors, project-based
workers and temporary or part-time hires. Gig apps and digital technology are often
used to connect customers and gig workers. The gig economy is a recent trend, with a
number of factors contributing to its rise. The two most important factors are; The
workforce has become more mobile and Work is increasingly done remotely via
digital platforms.
 The gig economy provides consumers with an alternative to commercial products and
industries. They turn to the gig economy for convenience, better service or both. This
is the case with ride-hailing apps, like Uber, and food delivery services, like Grubhub.
Gig apps have also met consumer demand where a service is in short supply or
expensive. This is a role Airbnb has played in places where hotel rooms are in short
supply, making more temporary accommodations available, sometimes at lower
prices.

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