DBT for LPG to be extended to 289 districts by Jan 1

New Delhi: After the success of the pilot programme in 20 districts, the scheme to pay domestic cooking gas (LPG) consumers cash subsidy will be extended to 289 districts in the country by January 1.

Under the scheme, Rs 435 is deposited in bank accounts of household LPG consumers in advance so as to help them purchase a 14.2-kg LPG cylinder at market price, which is more than double of Rs 410 per bottle rate in Delhi.

The moment the refill is bought, the subsidy prevalent on that day will be credited to Aadhaar-linked bank account of LPG consumer for another cylinder. In all, cash subsidy is provided for nine refills in a year under the Direct Benefit Transfer for LPG (DBTL) Scheme.

An official statement said DBTL has been extended to 34 districts like West Godavari in Andhra Pradesh, West Goa, Shimla in Himachal Pradesh, Kottayam in Kerala, Hoshangabad in Madhya Pradesh, Amravati in Maharashtra and Ludhiana in Punjab.

"Government has decided to extend the DBTL Scheme in 235 more districts by January 1, 2014 in phases depending on Aadhaar penetration. With this roll out, almost half the country, covering 289 districts, will get covered," it said.

The DBTL in 54 districts currently covers 21.9 million LPG consumers and as much as Rs 222 crore subsidy has been transferred through 5.3 million transactions into the bank accounts of the LPG consumers so far.

"In order to avail transfer of cash subsidy into the bank account, Aadhaar number of the LPG consumer has to be linked to the LPG consumer number and bank account for which a three months grace period from date of launch is being provided," the statement said.

A three month grace period has been given to get Aadhaar number and link it with their bank accounts. After the grace period, only consumers with Aadhaar number-linked bank accounts will get cash subsidy, it said.

By January, almost all the state capitals will be covered under the scheme. This would mean more than half of the 14 crore LPG consumers in the country will come under DBTL. An estimated Rs 27,000 crore will be transfered to consumers through DBTL in a year.

The statement said during the grace period all consumers will continue to get LPG cylinders at subsidised rate. After the grace period is over, all LPG consumers have to pay for LPG cylinders at market rate. Linkage via Aadhaar number is required for the transfer of cash subsidy.

"Thus, only those who have linked their Aadhaar numbers to both their bank account and LPG consumer number will be able to receive cash subsidy in their bank accounts. After the grace period is over, consumers will receive cash subsidy as and when they link their Aadhaar numbers for the balance entitlement," it said.

From next month, 44 districts including Vizag in Andhra Pradesh, Chandigarh, Ambala in Haryana, Kinnaur in Himachal Pradesh, Ranchi in Jharkhand, Udupi in Karnataka, Lakshadweep, Bhopal and Indore in Madhya Pradesh, Nagput and Thane in Maharashtra, Amritsar and Bathinda in Punjab, Ajmer in Rajasthan and Ariyalur in Tamil Nadu will be covered.

In the Phase-VI from November 1, 46 districts including Daman, Faridabad in Haryana, Dhanbad in Jharkhand, Uttara Kannada in Karnataka, Dewas in Madhya Pradesh, Pune in Maharashtra, Puri and Cuttack in Odisha, Yanam in Puducherry, SAS Nagar (Mohali) in Punjab, Udaipur in Rajasthan, Madurai in Tamil Nadu and Kolkata in West Bengal.

From December 1, 40 districts including Porbandar in Gujarat, Karnal in Haryana, Bangalore in Karnataka, Ujjain in Madhya Pradesh, Kolhapur in Maharashtra, Firozpur in Punjab, Jaipur in Rajasthan, Cuddalore in Tamil Nadu and Hugli in West Bengal will be covered.

In the last phase beginning January 1, 105 districts including nine in Delhi, Ahmedabad in Gujarat, Gurgaon in Haryana, Belgaum in Karnataka, Gwalior in Madhya Pradesh, Mumbai, Jodhpur in Rajasthan, Thanjavur in Tamil Nadu, Lucknow in Uttar Pradesh and Murshidabad in West Bengal will be covered.

Story Indian rupee recovers, BSE Sensex surges as Raghuram Rajan takes charge at RBI

Indian markets today staged a smart pullback with the Indian rupee rebounding 56 paise to 67.07 and the Sensex surging 333 points on apparent hopes pegged on Raghuram Rajan taking over as RBI Governor. The BSE Sensex opened higher and moved in a range of 18,188.43 to 18,612.60 before settling at 18,567.55, a rise of 332.89 points or 1.83 per cent. Gains were led by metal, healthcare and auto stocks. Investors became richer by around Rs 1 lakh crore as overall 1,347 stocks rose on BSE.
New RBI Governor Raghuram Rajan: Quotes
Markets were relieved that reports of missile firings yesterday turned out to be tests carried out jointly by Israel and the US. Yesterday, Sensex fell 651 points to 1-week lows.
On the currency side, suspected intervention by the central bank helped the rupee retreat from near record lows and end at 67.07 against the dollar, up 56 paise. The rupee had lost 193 paise in previous two sessions.
Raghuram Rajan takes over as 23rd Governor of Reserve Bank of India
The strong show in the markets was a positive sign for
Raghuram Rajan, who took over at the helm of the RBI, which has been combating a currency slump, high inflation, low growth and a widening current account deficit.
Market participants are hopeful the new RBI Governor will draw upon his global experience to bring the economy back to a higher growth path and mount a more effective defence of the

Story Lok Sabha nod to Pension Bill

The long-pending Pension Bill, a key economic legislation assuring minimum returns to subscribers, was today approved by the Lok Sabha, with the government saying it is based on the principle that "you save while you earn". The Pension Fund Regulatory and Development Authority (PFRDA) Bill, 2011, provides for market based returns and wide coverage based on several investment options in the pension sector with an aim to building confidence in the subscribers.
Govt to hike DA by 10%; to benefit 80L staffers, pensioners
It will have provision for withdrawals for limited purposes from Tier-I pension account, an incentive for subscribers to join the New Pension Scheme (NPS).
Replying to a brief debate, Finance Minister P Chidambaram said the government has accepted most of the recommendations of the Standing Committee.
Editorial: Pensioning off EPFO
The NPS, beneficial for employees in the long run, is based on the principle that "you save while you earn" especially for retirement period and is mainly for those who have a regular income, he said.
The corpus of the NPS having 52.83 lakh subscribers (including those of 26 state governments) was about Rs 35,000 crore.
PFRDA allows pension funds to invest in IDFs with caution
The bill also seeks to grant statutory status to the Pension Fund Regulatory and Development Authority.
"....Rs 35,000 crore should not be used by unstatutory authority...All this Bill does is make unstatutory authority (into) a statutory authority," Chidambarm said, adding the statutory authority will have powers to penalise.
The bill would also provide

Raghuram Rajan takes charge as new RBI Governor, unveils 'big package', vows more

New RBI Governor Raghuram Rajan today came out with a slew of measures, including more trade settlement in Indian rupees to rescue the battered financial markets and hinted at a shift in focus from inflation control, doggedly pursued by his predecessor, to boosting growth. Shortly after he took over as the 23rd Governor of the the reserve Bank of India (RBI), Raghuram Rajan, 50, addressed the media with a prepared statement in which he laid out a detailed road map for his innings in the short term, which he called a "big initial package."
He also rescheduled by a few days the date for his much-anticipated first monetary policy statement to September 20.
The new Governor set up a number of committees for revising and strengthening monetary policy framework, financial stability, financial inclusion, NPAs and an outside panel of experts headed by former Governor Bimal Jalan to screen applications for new bank licenses.
Rajan said the new bank licences will be issued around January next year.
Apparently reflecting a shift in the approach from his predecessor D Subbarao, who had serious differences with the government of late, Raghuram Rajan said the primary role of the bank is monetary stability to sustain confidence in the value of the Indian rupee.
"Ultimately, this means low and stable expectations of inflation, whether that inflation stems from domestic sources or from changes in the value of the currency, from supply constraints or demand pressures.
"...but we have two other important mandates; inclusive growth and development, as well as financial stability,"

PM-speak on rupee tumble does not have enough currency

SBI Life Insurance Plans - 1 Cr Life Cover @ Rs 543* pm Only Save upto 50%, Get Free Quotes Now!
www.policybazaar.com/Tax_Saving

One area where policymakers have failed in recent years is their inability in continuing to attract long-term capital.

September 1, 2013:  

As Prime Minister Manmohan Singh embarks on an overseas visit this week to attend the G-20 Saint Petersburg Summit, he may pray and hope that the likely US action on Syria will delay the tapering of US stimulus.

The hope being that developments on Syria may prompt the US Federal Reserve to think twice about tapering in September.

For this past month, when rupee hit a record low against the dollar, Indian policy makers have tended to lay the blame for the fall in rupee on “external factors” such as the May 22 announcement of likely US stimulus tapering.

Seldom had one seen Indian policymakers and political leaders take ownership for their policy goof ups or for that matter even their policy inactions.

In this backdrop, the Prime Minister’s recent statement in Parliament on the rupee slide was seen more in the nature of excuses given by a failed student.

It was quite perplexing to note that he went the extra mile to remind the developed countries – in pursuing their fiscal and monetary policies – that they should take into account the repercussions on emerging economies.

What about India’s own domestic policy failings that had led to the current situation? ask experts from the international policy community.

This is even as they took comfort from the Prime Minister’s reassurance to the international community on his commitment to reforms and restraint from capital controls.

One area where policymakers have failed in recent years, is their inability in continuing to attract long-term capital.

India has been relying on short-term capital flows to fund its deficits.

After sleeping on the wheel for nearly four years, the UPA Government is now, in the last year of its term, pushing for several reforms that may not be fiscally prudent.

The Food Security Bill has political engineering all over it, say economy watchers. The Food Security Bill is another way of distorting prices, mis-allocating resources and adding to the fiscal burden in the longer term, says Peter Drysdale, a Professor of Economics at Australian National University.

“India’s progress through reforms has been impressive in the last two decades. But this (Food Security Bill) sends a wrong signal to the reform process.

“This and recent hardening of approach to FDI signals that a caution is needed about India’s deep commitment to the reform process.”

Lack of confidence in policy commitment is the main reason for the short-term shock now experienced by India. Any wise Government should recognise this, says Drysdale.

Fiscal discipline, commitment to openness on capital and commitment to leaving the exchange rate do its proper job are the need of the hour.

It’s not clear that the latter commitment is being taken seriously. Defending the currency may not be a right approach or a long-term solution.