ISSUE: 324 2023 16 Sep 2023

India's trade deficit narrows to $24.16

billion in August: India's merchandise trade
deficit narrowed to $24.16 billion in August as
compared to $24.86 billion in the same month
last year, down 2.8 percent, said Commerce
Secretary Sunil Barthwal on September 15. The
merchandise exports stood at $34.48 billion,
while imports were $58.64 billion in August, government data showed. In
the previous month, merchandise exports were $32.25 billion, while
imports stood at $52.92 billion. However, exports fell when compared
year-on-year when it was $37.02 billion last year. Barthwal said that low
petroleum prices are affecting overall export fall. Further, exports to US
have fallen from $35.15 billion to $31.55 billion (yoy) in August.
(Moneycontrol)
Millets production set to triple by 2030: Nabard Chairman:
Setting the tone for the future of millets in the International Year of
millets, Shaji KV, Chairman, National Bank for Agriculture and Rural
Development (Nabard) said the target is to triple their production to 45
million tonnes by 2030 and it is possible to do it. “We are trying to bring
back the area under millets which has dwindled,” he said. The millets
production target for the current year is at 17 million tonnes and is set to
reach 45 million tonnes by 2030.“Millets have a crucial role to play in the
nutritional security of the country... With food security not a major
concern now, we are looking at sustainability. Millets are efficient in
fixing carbon and don‟t need that much water and are also heat resistant
..the duration of the millets crop is less by 60 per cent compared to other
cereals so the risk to the farmer is less and it‟s time to renew millets
cultivation,” he said
(Business Line)
ECB hikes interest rates by 25 bps to 4% as threat of recession
grows: The European Central Bank piled on a 10th straight interest rate
increase Thursday, pressing forward in its fight against stubbornly high
inflation that has been plaguing consumers even as worries grow that
higher borrowing costs could help push the economy into recession. The
increase of a quarter-percentage point comes as central banks around the
world, including the US Federal Reserve, try to judge how much anti-
inflation medicine is too much — and what's the right point to halt their
swift series of rate rates before the economy tips into a downturn and
people lose their jobs.
(Business Standard)
Swachhata Hi Seva- 2023 launched today: As a prelude to Swachh
Bharat Diwas, the annual Swachhata Hi Seva (SHS) fortnight is being
jointly organised by Swachh Bharat Mission-Urban and Grameen
between 15th Sept to 2nd Oct „23. The fortnight aims to mobilize the
participation of crores of citizens across the country via various activities
such as Indian Swachhata League 2.0, SafaiMitra Suraksha Shivir and
mass cleanliness drives.
(PiB)

Rs 14 lakh crore added in 11 sessions, Sensex

records longest winning streak since 2007:
The BSE Sensex has recorded its longest gaining
streak since 2007, with 11 straight days of gains,
ending the week at new all-time high. The index
gained 4.63 percent during the rally, with 1.86
percent coming in during the week gone by.
(Moneycontrol)
Breaking records: PSBs set to surpass ₹1-lakh crore profits this
fiscal too, say analysts: Public sector banks‟ (PSBs) profitability would
remain strong this fiscal as well with the aggregate profits in all likelihood
expected to exceed the record ₹1-lakh crore recorded last fiscal, say
analysts and banking sector experts. “We think absolute expansion will be
there because the loan book growth we are again expecting it to grow. So,
the expansion of the loan book will translate into higher operating profits
despite lower net margin and that will flow into bottomline,” Anil Gupta,
Senior Vice-President & Co Group Head—Financial Sector Ratings, ICRA
Ltd, told businessline when asked if PSBs are expected to better last
fiscal‟s performance on the bottomline front. Credit expansion till August
11 this fiscal stood at ₹5.8-lakh crore, substantially higher than ₹3.7-lakh
crore in the same period last fiscal. Last fiscal, the 12 PSBs in aggregate
recorded a net profit of ₹1,04,649 crore, up 57 per cent over net profit of
₹66,539 crore in 2021-22.
(Business Line)
IndusInd Bank launches ‘Virtual Commercial Credit Card’ to
allow cross-border payments for corporates and travel agents:
IndusInd Bank announced the launch of the „Virtual Commercial Card‟, a
credit card to allow cross-border transactions for corporates and travel
agents. In a tie-up with Visa and Juspay, this virtual card has additional
layers of security that can be defined for each transaction, which grants
the users complete control over their international expenses, making it a
safe and hassle-free experience for the customers. With the Virtual
Commercial Cards, these commercial users can generate virtual cards or
credentials in foreign-denominated currencies as well, safeguarding the
parent card number, ensuring utmost security for transactions,” IndusInd
Bank said in a statement.
(Financial Express)

Tata Steel to receive 500 million

pounds from UK govt to decarbonise
Port Talbot: The UK government has
agreed to give a grant of 500 million pounds
to help Tata Steel decarbonise its Port Talbot project at Wales, after
months of negotiations to save the project, the company said in a
statement on September 15. Tata Steel and the UK government jointly
announced the agreement to invest in state-of-the-art Electric Arc
Furnace steelmaking at the Port Talbot site with a capital cost of 1.25
billion pounds, which will include the government grant of 500 million
pounds. Tata Steel had sought a more substantial sum from the
government to support the project during early negotiations.
(Business Standard)
Ashok Leyland to invest Rs 1,000 cr to set up its first plant in
Uttar Pradesh: Ashok Leyland, a flagship company of the Hinduja
group, will invest Rs 1,000 crore to establish a bus manufacturing facility
in Uttar Pradesh. The company has signed a Memorandum of
Understanding with the state government to build the plant near
Lucknow, which will focus on clean mobility. Initially, the facility will
have the capacity to produce 2,500 buses per year, with plans to expand
to 5,000 vehicles annually over the next decade. This investment is in line
with Ashok Leyland's mission to achieve net Zero by 2048.
(Economic Times)
Adani Projects to get money from French major: TotalEnergies
SE is in talks to invest in renewable energy projects developed by Adani
Green Energy Ltd., people familiar with the matter said, potentially
marking the first public deal between the French oil giant and Gautam
Adani since a short-seller leveled fraud allegations against the Indian
billionaire‟s business empire. Total is looking to buy stakes in some of
Adani Green‟s projects as part of its drive to expand its portfolio of clean
energy projects, said the people, who asked not to be identified as the
discussions are private. The French group could invest about $700
million in total into the projects, one of the people said.
(Economic Times)
Apply for Aadhaar, driving license only
with birth certificate from October 1: From
October 1, birth certificates will be the only
document you will need to produce to avail of
several crucial services including admission to an
educational institution, registration of marriage,
and applying for an Aadhaar card. The
development comes after Parliament passed the Registration of Births
and Deaths (Amendment) Act, 2023, in the last monsoon session and
President Droupadi Murmu gave her assent on August 11. “It will help
create a database of registered births and deaths which eventually would
ensure efficient and transparent delivery of public services and social
benefits and digital registration,” stated the Union Ministry of Home
Affairs while announcing the rollout of Registration of Births and Deaths
(Amendment) Act, 2023. Just birth certificates will also be enough for
voter list preparation, applying for a driving license, and government job
appointments.
(Moneycontrol)
PM Vishwakarma scheme covering 18 traditional crafts to be
launched on Sunday: The PM Vishwakarma scheme will cover 18
traditional crafts in urban and rural areas across the all country, the
Government said on Friday. The scheme will be launched on Sunday,
September 17, which is also celebrated as Vishwakarma Jayanti. The
scheme will cover traditional crafts of carpenters; boat makers;
armourers; blacksmiths; hammer and tool kit makers; locksmiths;
goldsmiths; potters; sculptors, stone breakers; cobblers (Shoesmith/
Footwear artisan); masons (Rajmistri); Basket/Mat/Broom Makers/Coir
Weavers; Doll & Toy Makers (Traditional); barbers; garland makers;
washermen; tailors; and fishing net makers. Under the Rs 13,000-crore
Central Sector Scheme (fully funded by the Centre), Vishwakarmas will be
registered free of charge through Common Services Centres. They will be
given the PM Vishwakarma certificate and ID card, skill upgradation
involving basic and advanced training, toolkit incentive of ₹15,000,
collateral-free credit support up to ₹1 lakh (first tranche) and ₹2 lakh
(second tranche) at a concessional interest rate of 5 per cent, incentive for
digital transactions and marketing support.
(Business Line)

RBI KEY RATES FOREX EQUITY

(RBI REF. ) /COMM. MARKET
Repo Rate: 6.50% INR / 1 USD : 83.0557 Sensex: 67838.63 (+319.63)
SDF: 6.25% INR / 1 GBP : 103.2299 NIFTY: 20192.30 (+89.20)
MSF /Bank Rate: 6.75% INR / 1 EUR : 88.5662 Bnk NIFTY: 46231.50 (+230.70)
CRR: 4.50% INR /100 JPY: 56.2800 Gold: 58,811.00 (+223.00)
SLR: 18.00% Silver: 72,132.00 (+1150.00)
FINANCIAL CONCEPTS
VIABILITY GAP FUNDING (VGF)
 The Viability Gap Funding Scheme of the Government of
India for Financial Support to Public Private Partnerships in
Infrastructure, provides financial support (Capital grant) of
up to 40% of the Total Project Cost in the form of grant (one
time or deferred) to infrastructure projects undertaken
through public private partnerships with a view to making them commercially viable.
Administered by the Ministry of Finance, budgetary provisions are made in the
Annual Plans on a year-to-year basis for the Scheme.
 The scheme aims at supporting infrastructure projects that are economically justified
but fall marginally short of financial viability. Support under this scheme is available
only for infrastructure projects where private sector sponsors are selected through a
process of competitive bidding. The total Viability Gap Funding under this scheme
will not exceed twenty percent of the Total Project Cost; provided that the
Government or statutory entity that owns the project may, if it so decides, provide
additional grants out of its budget, upto a limit of a further twenty percent of the Total
Project Cost.
 In order to be eligible for funding under VGF Scheme, a PPP project should meet the
following criteria: The project should be implemented (i.e. developed, financed,
constructed, maintained and operated) for the Project Term by a Private Sector
Company to be selected by the Government or a statutory entity through a process of
open competitive bidding; provided that in case of railway projects that are not
amenable to operation by a Private Sector Company, the Empowered Committee may
relax this eligibility criterion.

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