Law ministry to give opinion on spectrum allocation for private captive networks
The telecom department will seek the opinion of the law ministry over allocation of spectrum to enterprises for rolling out private captive networks. The department will ask if spectrum can be given administratively or through auction. While the Cabinet had approved direct allocation to enterprises in June, it did not spell out the specifics around the methodology.
Why it’s important: Direct allocation of spectrum to enterprises is contentious. Telcos have opposed direct allocation, fearing it would give technology firms a backdoor entry to provide 5G services to enterprises. Tech companies want spectrum directly from the government, not wanting to depend on telcos.
Vedanta-Foxconn semiconductor factory may get government approval
Only one of the three semiconductor manufacturing proposals submitted to the government to get financial support under the $10 billion incentive scheme is likely to make the cut. The Vedanta-Foxconn joint venture’s $20 billion proposal in Gujarat is expected to be the first to secure government approval, while the other two by the International Semiconductor Consortium and Singapore’s IGSS Ventures lag behind, with the latter one almost out of the race.
Why it’s important: India is offering financial incentives, infrastructure development and streamlined regulations for firms to set up semiconductor fabs in the country. Local production will reduce its dependence on imports and boost the nation’s resilience to global supply chain disruptions.
India cannot reach net-zero target with electric vehicles alone, says Suzuki
Electric vehicles alone cannot help India achieve its net-zero target by 2070 due to the existing power supply situation, and the country must tap other options as well, Toshihiro Suzuki, president of Suzuki Motor Corporation, has said. “Although the global focus is on EVs, if we look at the power supply situation in India, the country must have alternative solutions,” he said. “In order to meet the challenge of making India carbon neutral, EVs are one of the solutions. Flex fuel, hybrid, ethanol, and hydrogen-driven cars can also be solutions.”
Why it’s important: India’s transition to a low-carbon economy will depend on electric mobility as well as increasing the use of renewables in its energy mix. The country is aggressively pursuing both goals.
Bad bank gets guarantee worth Rs 15,300 crore to tackle non-performing assets
The central government has approved a Rs 15,300 crore blanket guarantee for the National Asset Reconstruction Company, clearing hurdles for the keenly awaited transfer of doubtful advances to the state-sponsored bad bank. The guarantee was approved after all legal and procedural formalities were completed. The guarantee will be valid for five years and will be invoked in case of resolution or liquidation of a bad loan. It will cover the shortfall between the face value of security receipts and actual realization from the account when NARCL finds a buyer.
Why it’s important: The approval means banks can now fall back on government guarantees, which will backstop security receipts to be issued by the bad loan aggregator while taking over doubtful debt.
Upcoming budget may allow PAN to be the single business ID
The 2023-24 budget is likely to roll out the legal and operational framework for adopting the permanent account number (PAN) as a single business identification. This will apply to all businesses securing approvals. An enabling provision may be introduced in the Finance Act, 2023, ensuring the legal backing for PAN is used as the primary identifier of an entity. The provision will also ensure the mapping of PAN of an entity with multiple existing identifications.
Why it’s important: Currently there are some 20 different identifiers at the central and state levels such as GSTIN, TIN and a plethora of other IDs. A single ID will improve the ease of doing business and ensure better compliance to norms.
Samsung India gets show-cause notice to explain duty evasion of Rs 1,728 crore
The Directorate of Revenue Intelligence has issued a show-cause notice to Samsung India Electronics, asking why the agency should not recover Rs 1,728.47 crore as duty along with interest from the subsidiary of South Korea’s Samsung Electronics for alleged customs duty evasion. Based on a case registered by DRI, the notice was issued by Nhava Sheva Customs. The agency also asked why a penalty should not be imposed against the senior management.
Why it’s important: The extent of duty evasion is quite large, but the Indian arm of the South Korean company is not expected to contest it fiercely as it has already fired an expat employee in this regard.
Chartered accountancy regulator to issue new rules to make tax audits foolproof
The Institute of Chartered Accountants of India will soon issue fresh instructions to professionals to make tax audits foolproof. The institute will issue a specific guidance note on tax audits of charitable institutions at either the end of this month or early next month, followed by another guidance note on tax audits in general, incorporating changes in the reporting obligations and formats that could come up in the national budget.
Why it’s important: The guidance on charitable institutions is significant since the income tax department has been tightening reporting obligations for getting tax exemptions. It wants to prevent abuse of tax exemptions given to genuine charitable organizations.
Electric vehicles, cleaner fuel tech grab spotlight at Auto Expo in Delhi
Automakers have unveiled plans for a cleaner battery-powered future on the first day of India’s premier auto show, which returned after a three-year gap due to the pandemic disruption. Leading the charge, Tata Motors announced its ambitious goal of reaching net-zero emissions by 2040, showcasing technologies to make mobility more environment-friendly, and reducing its reliance on fossil fuel-burning engines. Commercial vehicle makers and parts suppliers displayed technologies such as hydrogen fuel cell vehicles and hydrogen-internal combustion engines.
Why it’s important: Electric mobility is gaining increasing traction in India, which is reflected in the company plans in the sector. The expo misses the presence of two-wheeler makers and Mahindra.
Supreme Court will hear Google appeal against anti-trust order on January 16
The Supreme Court has agreed to hear an appeal by Google on January 16 against the order by India’s competition regulator requiring extensive changes to the search giant’s Android mobile platform by January 19. A bench led by Chief Justice DY Chandrachud directed the case to be listed after Google’s lawyers argued that extraordinary directions have been passed by the Competition Commission of India without finding any abuse of dominance by Google.
Why it’s important: The top court hearing assumes importance since the National Company Law Appellate Tribunal has denied interim relief to Google in its appeal against the penalty of Rs 936.44 crore levied by the competition watchdog for alleged abuse of its dominant position in Play Store policies.
Declare end of Covid pandemic and limit jabs, task force requests government
India should recommend Covid vaccines only for people with comorbidities or those who have never been infected, a joint task force of medical experts from three leading health organizations has said in a report. The task force of medical experts from the Indian Public Health Association, Indian Association of Preventive and Social Medicine and Indian Association of Epidemiologists has said it was time to declare an end to the pandemic and reassure the population.
Why it’s important: The recommendations come at a time when there is a resurgence of case globally. IKt is unlikely that the government will act on the suggestions in the short term.
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