PFC, REC may restrict funding to power projects based on Chinese equipment | WeForNews | Latest News, Blogs PFC, REC may restrict funding to power projects based on Chinese equipment – WeForNews | Latest News, Blogs
Connect with us

Business

PFC, REC may restrict funding to power projects based on Chinese equipment

The minister has already indicated that the basic customs duty of 15-20 per cent on solar modules, including solar cells, will be introduced from August which may rise to 35-40 per cent in the second year of operation.

Published

on

china india flag

New Delhi, June 29 : The government”s economic response against China may see public sector financiers restricting funding of projects that ise equipment from the neighbouring country, sources said on Monday.

The practice would first be adopted in the power sector, where state-owned Power Finance Corporation (PFC), Rural Electrification Corporation (REC) and Indian Renewable Energy Development Agency (IREDA) propose to restrict financing to states that are developing projects in power generation, transmission and distribution that use Chinese equipment.

As bulk of the funds to the power sector is provided by these three institutions, the restriction is expected to be effective in checking large-scale import of Chinese gear. The move is likely to affect solar sector projects the most where Chinese import is to the extent of 80 per cent.

Sources in the Power Ministry said that public sector financiers have been told to devise funding schemes that discourage imports, especially in case of equipment that is being manufactured in the communist country. This could be done by either completely restricting funding to projects based on imports or such projects could command a premium interest rate.

“We are looking at how this can be achieved. Various things are being worked out that would be conveyed to agencies looking for funds,” said an official source from one of three public sector power financiers.

Last week, power and Renewable Energy Minister R K Singh had said that state-owned power sector is looking to structure financing in such a manner that lower rates of interest will be charged on developers who use India-manufactured equipment. This would promote the idea of Atmanirbhar Bharat and also give further boost to domestic manufacturing.

Financing restrictions even to states developing projects through Chinese equipment is expected to give a big boost to domestic manufacturing that has failed to take off in the absence of a large dedicated captive market. Some of the struggling manufacturing would also get a fresh leave of life.

Apart from the solar sector where China plays big, almost 50,000 ME of thermal capacity is being development using Chinese equipment. Moreover, firms use supervisory control and data acquisition (Scada) systems from China in electricity distribution and transmission space.

Restriction on funding of projects being constructed on the basis of imports is one of the several measures that power ministry is looking forward to to check the practise. It is also looking at restricting imports by financial and approved vendors for all overseas supplies while putting another layer of check at the Power Ministry level for any decision on imports. This would mean decision to import would be first vetted by the ministry before the process moves further.

Moreover, the practice of issuing concessional custom certificates for certain import items in the renewable sector will be discontinued from a date to be specified separately. This is likely to dissuade importers and force them to look within the country for equipment, a move that will help promote the governments objective of Atmanirbhar Bharat.

The minister has already indicated that the basic customs duty of 15-20 per cent on solar modules, including solar cells, will be introduced from August which may rise to 35-40 per cent in the second year of operation.

Business

WhatsApp rolls out first-ever global brand campaign in India

Published

on

By

whatsapp

New Delhi, July 4 : WhatsApp on Saturday launched its first brand campaign in India that narrates real stories about how Indians communicate daily on WhatsApp with their closest relationships.

The campaign called ”It”s Between You” gives thrust on WhatsApp”s commitment to privacy, the company said in a statement.

“With WhatsApp”s end-to-end encryption, we come closest to replicating real-life interactions and that”s when we can truly be ourselves. The conversations you have, the jokes you tell and the memories you relive belong to you and deserve to stay between you,” said Avinash Pant, Director, Marketing at Facebook India.

WhatsApp collaborated with Gauri Shinde, a celebrated Indian Bollywood director along with BBDO India to create two 60-seconds ads, each highlighting how WhatsApp”s features like texts, video calls or even a voice message, help replicate in-person conversations and bring people closer.

One ad is based on a true story about an elderly woman and her caregiver, who are now separated from each other.

“From how to bring together the cast and crew that were right for the part and happened to be living together, and directing over a WhatsApp video call, to doing all the post production work without being physically present, it”s been really rewarding,” said Shinde.

The second story is at the other end of the spectrum of emotion, which is a light and fun film about a younger sister giving joyful courage to her elder one through a WhatsApp video call, when the latter feels vulnerable and hesitant to give her a haircut at home.

“WhatsApp is designed to help friends and family communicate as well as help users connect with a business that is important to them,” said the company.

Continue Reading

Business

Govt to levy interest on late payment to MSMEs for GeM purchase

Published

on

By

Nirmala Sitharaman

New Delhi, July 3 : Government departments and agencies will have to pay interest on late payment to vendors, largely MSMEs, for products procured through the Government e-Martketplace (GeM), starting October 1.

Through an office memorandum, the Department of Expenditure of the Ministry of Finance on Friday said that if the payment is not made within 10 days of the Consignee Receipt and Acceptance Certificate (CRAC) being auto generated or issued by the buyer, the concerned department will have to pay interest at the rate of one per cent per month for the delayed payment.

However, this very interest will not go to the MSMEs concerned and instead, will deposited in an account maintained by the GeM, which will be used only for the education of buyers and sellers or public procurement with the prior approval of the Department of Expenditure, said the office memorandum.

“ln order to promote greater discipline and timeliness in payment to vendors, especially #MSMEs, the government has issued an order to levy interest on late payment to vendors on the government e-marketplace. #AatmaNirbharBharat,” said a tweet by Finance Minister Nirmala Sitharaman”s office.

The order will be effective on orders made from October 1, 2020.

Continue Reading

Business

Tomato prices skyrocket to Rs 70/kg in Delhi-NCR

He attributed the hike in the prices of all vegetables and fruits, not only tomatoes, due to the increase in diesel prices, which led to an increase in the transportation cost of vegetables.

Published

on

By

Tomato

New Delhi, July 3 : With the onset of the monsoon tomato prices soared to Rs 70 per kg in New Delhi and its surrounding areas on Friday.

Crop failure in the rainy season and the late arrival of tomatoes in the mandis (wholesale markets) have led to the price hike. However, the prices are expected to fall after the arrival of the new crop from Himachal Pradesh next week.

A month ago, the price of tomatoes in Delhi’s Azadpur mandi was between Rs 1.25 and Rs 4.75 per kg, while the wholesale price on Friday was Rs 6.44 per kg.

The model rate of tomato was Rs 3 per kg in Azadpur mandi on June 3, which has increased by 10 times to Rs 29 per kg. On July 2, the wholesale price of tomatoes rose to Rs 52 per kg in the mandi, which means there has been an increase of about 995% in the last one month. Due to the rise in wholesale prices, tomatoes were sold at Rs 80 per kg on Thursday in Delhi-NCR and Rs 50.70 per kg in Greater Noida.

Azadpur Agricultural Produce Marketing Committee (APMC) chairman Adil Ahmad Khan said prices have gone up due to late arrival of tomatoes. The quantity of tomatoes received at Azadpur mandi was 528.2 tonne on June 3 while on July 3 it was 281.6 tonne. The quantity has thus been reduced by nearly 50 per cent in a month. Only 241.9 tonne were received on July 2 due to which the wholesale price was Rs 6.52 per kg while the model rate was Rs 32 per kg, Khan added.

He attributed the hike in the prices of all vegetables and fruits, not only tomatoes, due to the increase in diesel prices, which led to an increase in the transportation cost of vegetables.

From next week, the arrival of the new crop from Himachal Pradesh will lead to a decline in the prices of tomatoes. He said at present 90 per cent of the tomatoes in Delhi arrive from Himachal Pradesh while only 10 per cent are received from Haryana and Karnataka.

The consumption of all green vegetables, tomatoes and onions has declined during the past few months because of the shutdown of hotels, restaurants, canteens and dhabas following the nationwide lockdown in the wake of the corona pandemic. This led to a marked fall in prices. The wholesale price of tomatoes had come down to less than one rupee per kg.

Continue Reading
Advertisement

Most Popular