Nanar will be Konkan farmers' 'genocide': Shiv Sena warns BJP | WeForNews | Latest News, Blogs Nanar will be Konkan farmers’ ‘genocide’: Shiv Sena warns BJP – WeForNews | Latest News, Blogs
Connect with us

Business

Nanar will be Konkan farmers’ ‘genocide’: Shiv Sena warns BJP

Spread across over 15,000 acres in Ratnagiri, the Nanar complex is being jointly set up by three Oil Marketing Companies — BPCL, HPCL and IOCL in collaboration with Saudi Arabia’s Aramco and Abu Dhabi National Oil Company.

Published

on

Uddhav Thackeray

Mumbai, June 29 (IANS) The Shiv Sena on Friday warned that the upcoming Nanar refinery-petrochemicals complex in Maharashtra’s Ratnagiri would prove to be “a poisonous gas chamber and lead to a genocide of the Konkan farmers”, one akin to Hitler’s mass-execution of the Jews.

Terming the ally Bharatiya Janata Party’s decision to go ahead with the estimated $44 billion (Rs 300,000-crore) refinery-cum-petrochemicals complex, the Sena said this is “an Emergency-like situation in Konkan” perpetrated by the “dictatorship” of Prime Minister Narendra Modi and Chief Minister Devendra Fadnavis.

The party’s strong views came in edits in its mouthpieces “Saamana” and “Dopahar Ka Saamana” — a day after Shiv Sena President Uddhav Thackeray snubbed Petroleum Minister Dharmendra Pradhan by refusing to meet him on the Nanar issue.

Spread across over 15,000 acres in Ratnagiri, the Nanar complex is being jointly set up by three Oil Marketing Companies — BPCL, HPCL and IOCL in collaboration with Saudi Arabia’s Aramco and Abu Dhabi National Oil Company.

It will have the capacity to process 60 million tonne annually or 1.20 million barrels per day of crude when it kicks off by 2022.

Pointing at Fadnavis’ assurance a few months ago that if the people of Konkan were opposed, the project would not be permitted here, the Sena said if “views of the majority are ignored, then it is a dictatorship”.

All villages in the vicinity of Nanar have passed resolutions saying “no to such a toxic project” and handed over to the Chief Minister, but these were bypassed and the government signed the agreement after which “Pradhan came running to Mumbai for a compromise”, it said.

“This is a conspiracy to kill all our Konkan brothers and their families with their fertile lands in the poisonous gas chamber, just like Hitler had shocked the world by slaughtering millions of Jews. We will oppose Nanar completely,” the Sena reiterated its earlier stance.

“Now, a rumour is being spread that the Prime Minister faces death threats, so all ministers, BJP leaders and officials cannot meet him as anybody could pose a risk.

“But the lives of millions of farmers in the Konkan are like worthless insects, so they can be killed, to ensure safety of the ‘king’ installed on the Delhi throne by these very people,” the Sena edit said sharply.

Konkan farmers would be annihilated by poisoning their air, water and fertile farms, while the army soldiers are being killed at the country’s borders – “So, this is the death of the ‘Jai Jawan, Jai Kisan’ slogan”, it said.

Promising that since the opposition to Nanar project will never cease, the Sena asked “whether Fadnavis will now summon the Indian Army to crush the farmers” protests in the Konkan.

Attacking the Chief Minister’s statements that the project could be shifted out of the state, the Sena said “why not Vidarbha”, since claims that such a project can only come up in coastal areas are “misleading”.

Dismissing the government’s contention that it would provide huge employment opportunities, the Sena hit back saying that “nobody in Konkan wants your jobs, they have enough work…”

It appealed to the government “to refrain from going ahead with the Nanar project as it will kill the people and environment of the beautiful Konkan dotted with lush orchards of fruits like mangoes, jackfruits, cashew, clean air and water, abundant fish in the rivers and the Arabian Sea and its huge tourism industry”.

“The people of Konkan are very happy without the project, don’t poison their joy… If you go ahead, you will bite the dust not only in Konkan, but entire Maharashtra. Implementing it will be like imposing Emergency. We dare you to do it,” the Sena challenged.

Blog

Column: Helping Indian SMEs to achieve scale – Behind Infra Lines

Published

on

By

Stock Market Down

As the Indian economy deals with the economic impact of the Corona induced slowdown, an opportunity to make constructive changes to the economic policies has arisen.

India needs a long hard look at ways to deregulate the economy and businesses. Deregulation pertains to not just the legal frameworks at play but the overarching tax, law and business frameworks that drive business decisions and policies. Changes that can help reduce the regulatory burdens and hindrances to business will help businesses in India achieve the elixir of “creating scale” to help them take advantage of economies of scale.

In a recent article, Paula Mariwala refers to the fact that if Adam Smith or Napoleon who referred to England as “a nation of shopkeepers” were to stereotype India, they would arguably refer to us as “a nation of entrepreneurs”. The article further goes on to state that 80 per cent of Indians find livelihoods in the informal sector. The two biggest takeaways from the article are both the importance of small businesses to the Indian economy and the need to help support small businesses.

While a lot is written and said about helping SMEs and MSMEs, the critical point that needs attention is how to assist businesses in India to scale to a larger size. Taking advantage of the concept of ‘economies of scale’ is probably the most significant need for companies across the spectrum in India. While lack of access to credit has been a large contributing factor to the hindrances faced by small businesses in India, a more effective and less complicated regulatory regime is equally important, if not more.

A closer look at the issue will show that a lack of access to credit and complex regulatory ecosystem that hampers the growth of small businesses are closely interlinked. As has been oft-repeated, Indian businesses suffer from the vicious cycle of not being able to formalise due to the complexity of the regulatory regime and, therefore, lacking access to credit and thereby remaining small are unable to achieve economies of scale.

Essentially, the inability to achieve scale today inhibits the ability to achieve scale in the future. Therefore, the critical question is how does the government turn this vicious cycle to a virtuous one in which small businesses are incentivised to formalise, access credit more easily, achieve scale and generate returns and get the ever-important tax revenue that is needed? Essentially, when making policy changes, one question that policymakers must keep in mind is whether the policy change will assist small businesses to achieve scale. While achieving ‘economies of scale’ cannot be the only determinant of policy decisions, it must surely be a major one.

For instance, for smaller businesses the concept of ‘job work’ whereby a larger business outsources some of its work to a smaller unit or a small unit outsources parts of the product creation to another small unit sounds routine but is of prime importance. Job work allows for economies of scale through specialisation. As India moves ahead, especially intending to boost manufacturing, the ability of small businesses to achieve scale will be driven through their ability to specialise that will allow them to scale and add technology. In this case, compliances around concepts such as ‘job work’ must get more attention in terms of ease and compliance burdens on businesses.

While the concept of jobwork and related regulation at the surface seems standard, a searching look on how Indian small businesses will grow will reveal the importance of rules around concepts such as jobwork. As mentioned earlier, scale is needed for businesses to thrive as the classic economic theory dictates. It is only after a threshold of scale is achieved that businesses can start enjoying the fruits of lower costs, greater profits, formalisation and access to credit, thereby further boosting growth. Indian SMEs have historically struggled for scale and the concomitant advantages that scale brings.

Therefore, as India emerges from the economic slowdown, significant attention must be paid towards the need of businesses to achieve scale. Capital flows, job creation and demand creation are all factors that revolve around the success and scalability of millions of businesses in India. Policy creation and changes that keep a close eye on assisting Indian businesses to scale amongst other factors will have a significant contribution to putting the wheels back on India’s growth story.

(The author heads Development Tracks, an advisory firm. You can contact him at [email protected] The views expressed in this article are personal and that of the author)

Continue Reading

Business

‘Economic disruption to deter RBI from quantifying FY21 growth forecast’

The RBI’s MPC (Monetary Policy Committee) is expected to release its resolution on the monetary policy after their meet on September 29 to October 1, 2020.

Published

on

By

Reserve Bank of India RBI

New Delhi, Sep 27 : The dynamic economic upheaval unleashed by Covid-19 pandemic might hinder the Reserve Bank of India (RBI) from giving a pin-pointed growth as well as inflation forecast in the upcoming monetary policy report, experts opined.

The existing legislations mandate the RBI to come out with a growth and inflation forecast twice in an interval of six-months in the monetary policy report.

Expectedly, the report is slated to be issued with the upcoming policy review on October 1. The report was last issued in February.

“Given the continuing uncertainty on the economic revival, it is difficult to say whether RBI will come out with clear forecasts on the GDP print for FY21,” said Suman Chowdhury Chief Analytical Officer at Acuite Ratings and Research.

“It has, however already highlighted the risks of a material contraction in economic output in the previous MPC report. As regards inflation, it is likely to reiterate its expectation of a moderation in the CPI inflation over the next few months due to lesser supply constraints, higher crop output in kharif season and also the favourable base effect kicking in.”

According to Brickwork Ratings said: “With uncertainty regarding the pandemic looming large, the RBI may not provide a GDP forecast for FY21 in the upcoming MPC meeting. As in the previous statements, the RBI may continue to talk about economic contraction without quantifying the magnitude.”

“Given the continued surge in Covid-19 cases in the country’s major hubs, which is hindering the recovery process, we expect the Q2FY21 GDP to shrink by 13.5 per cent.”

In April, the RBI’s Monetary Policy Report said that the global economy may slump into recession in 2020.

The report noted that the the coronavirus pandemic, lockdown and the expected contraction in global output will weigh heavily on the growth outlook. The actual outturn would depend upon the speed with which the outbreak is contained and economic activity returns to normalcy, said the Monetary Policy Report for April 2020.

As per the report, due to the highly fluid circumstances in which incoming data produce shifts in the outlook for growth on a daily basis, forecasts for real GDP growth in India are not provided in the Monetary Policy Report, awaiting a clear fix on the intensity, spread and duration of Covid-19.

It is widely expected that persistently high inflation fanned in part due to supply side disruptions along with seasonal factors will deter the Reserve Bank to administer a dose of lending rate cut during the upcoming monetary policy review.

Notably, the expected move will come at a time when industrial output is at historic low due to the Covid-19 pandemic.

The RBI’s MPC (Monetary Policy Committee) is expected to release its resolution on the monetary policy after their meet on September 29 to October 1, 2020.

Continue Reading

Business

Temporary retention, not diversion: FinMin on CAG audit of GST cess

Time taken in reconciliation of compensation receipts can’t be termed as diversion of GST cess fund when the dues to states were fully released by the central government, they said

Published

on

Nirmala Sitharaman

Finance ministry sources have countered CAG audit finding of central government wrongly retaining Rs 47,272 crore of GST compensation cess meant for states, saying temporary retention cannot be termed as diversion.

Days after the Comptroller and Auditor General (CAG) flagged that the Centre in first two years of the GST implementation wrongly retained GST compensation cess that was meant to be used specifically to compensate states for loss of revenue, ministry sources said compensation due for the year 2017-18 and 2018-19 was fully paid to states.

Time taken in reconciliation of compensation receipts can’t be termed as diversion of GST cess fund when the dues to states were fully released by the central government, they said.

Sources said that in 2017-18, Rs 62,611 crore was collected, out of which the government released full compensation dues of Rs 41,146 crore to the states and union territories (UTs).

In 2018-19, an amount of Rs 95,081 crore was collected, out of which Rs 69,275 crore was paid as full compensation dues to states and UTs.

They said an amount of Rs 47,271 crore collected in the 2017-18 and 2018-19 had remained unutilised for reconciliation post full payment of GST compensation dues.

For the year 2019-20, the central government released Rs 1,65,302 crore as GST compensation against a cess collection of Rs 95,444 crore which it could do so with the unutilised cess of Rs 47,271 crore.

The GST (Compensation to States) Act guarantees all states an annual growth rate of 14 per cent in their GST revenue in the first five years of implementation of GST beginning July 2017. It was introduced as a relief for states for the loss of revenues arising from the implementation of GST.

If a state’s revenue grows slower than 14 per cent, it is supposed to be compensated by the Centre using the funds specifically collected as compensation cess. To provide these grants, a GST compensation cess is levied on certain luxury and sin goods.

The collected compensation cess flows into the consolidated fund of India (CFI), and is then transferred to the Public Account of India, where a GST compensation cess account has been created. States are compensated bi-monthly from the accumulated funds in this account.

However, instead of transferring the entire GST cess amount to the GST compensation fund during 2017-18 and 2018-19, the CAG found that the Centre retained these funds in the CFI and used it for other purposes.

The finance ministry sources said the compensation receipt in the CFI was subject to reconciliation in the coming months, as usual, in the forthcoming financial year.

If for that reason the amount remained in the CFI, how can that be treated as diversion, they asked adding even the CAG in its report has not said so.

The amount collected under compensation cess fund has been regularly and fully distributed to states as per their dues and budgetary provisions and by the end of July 2020, everything has been accounted for and released, source added.

The CAG in its report tabled in Parliament earlier this week said out of the Rs 62,612 crore GST Compensation Cess collected in 2017-18, Rs 56,146 crore was transferred to the non-lapsable fund.

In the following year (2018-19), Rs 54,275 crore out of Rs 95,081 crore collected was transferred to the fund.

The short transfer in 2017-18 was Rs 6,466 crore and in 2018-19 it was Rs 40,806 crore, the CAG said adding the Centre used this money for “other purposes” which “led to an overstatement of revenue receipts and understatement of fiscal deficit for the year”.

Sources explained that all amounts including taxes and cess that are collected by the Centre should, under the Article 266 of the Constitution, get credited first to the CFI and then only it could be transferred to any other fund through a budget head in Union Budget.

The government makes all efforts to transfer all amounts collected by the end of every financial year into the fund by making necessary budget provisions, they said.

In case of compensation cess, since the final accounts of amounts collected are known only after the end of financial year, any amount collected over and above the estimate will remain in the CFI temporarily, they said adding after reconciliation, the amount is transferred to Compensation Fund and from that fund to states as per their compensation formula.

Therefore, such temporary retention of GST cess in CFI pending reconciliation cannot be treated as diversion by any stretch of imagination, sources said.

Since the cess collected by the Government has been used for full payment of due compensation, then it cannot be alleged that unutilizedcess amount has been diverted for other purposes, they insisted.

Continue Reading
Advertisement

Most Popular

Corona Virus (COVID-19) Live Data

COVID-19 affects different people in different ways. Most infected people will develop mild to moderate illness and recover without hospitalization.