Daily PIB Summary & Analysis for RBI Grade B 2022, NABARD Grade A 2021, and SEBI Grade A Exam. In this Article we will discuss Press Information Bureau (PIB) Programs and their Summary for RBI Grade B Economics and Social Issue Section.
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On September 15, 2021, the Union Cabinet chaired by Prime Minister Narendra Modi approved the following proposals which were briefed by Union ministers Ashivini Vaishnav (Railway and MeiTY) and Anurag Singh Thakur, Minister of Information and Broadcasting
Cabinet clears production linked incentives for auto, drone industries
- The Union Cabinet on Wednesday approved a ₹26,058 crore scheme to incentivize the production of automobiles, auto components and drones in the country.
- Out of the total outlay of ₹26,058 crore, the auto sector will get ₹25,938 crore, while the drone industry will receive ₹120 crore.
- It is estimated that in five years about ₹47,500 crore additional investments will come to these sectors, creating about 760,000 new employment opportunities
- This is part of the 13 sectors the government identified for promoting local production by giving incentives amounting Rs. 1.97 Lakh Crore in Union Budget 2021-22.
Cabinet approves Memorandum of Understanding (MoU) between India and Italian Republic on Cooperation in the field of Disaster Risk Reduction and Management
- The MoU on Cooperation in the Field of Disaster Risk Reduction and Management which was signed between the NDMA of the Republic of India and the Department of Civil Protection of the Presidency of the Council Ministers of the Italian Republic.
Cabinet approves major Reforms in Telecom Sector
These are expected to protect and generate employment opportunities, promote healthy competition, protect interests of consumers, infuse liquidity, encourage investment and reduce regulatory burden on Telecom Service Providers (TSPs).
- The spectrum auction will be held in the last quarter of the financial year
- 100 per cent FDI (Foreign Direct Investment) in telecom via the automatic route was approved by the Cabinet.
- All KYC will be digitized and no form-paper work is required now. No more repeat KYCs to go from prepaid to postpaid or vice versa
- The Cabinet has approved a four-year moratorium on payment of statutory dues by telecoms.
- They have to pay interest on the moratorium period, which will be SBI's MCLR plus 2 per cent
- In future Auctions, tenure of spectrum increased from 20 to 30 years.
Nine structural reforms and Five procedural reforms plus relief measures for the Telecom Service Providers are as below:
Structural Reforms
- Rationalization of Adjusted Gross Revenue: Non-telecom revenue will be excluded on prospective basis from the definition of AGR.
- Bank Guarantees (BGs) rationalized: Huge reduction in BG requirements (80%) against License Fee (LF) and other similar Levies. No requirements for multiple BGs in different Licensed Service Areas (LSAs) regions in the country. Instead, One BG will be enough.
- Interest rates rationalized/ Penalties removed: From 1st October, 2021, Delayed payments of License Fee (LF)/Spectrum Usage Charge (SUC) will attract interest rate of SBI’s MCLR plus 2% instead of MCLR plus 4%; interest compounded annually instead of monthly; penalty and interest on penalty removed.
- For Auctions held henceforth, no BGs will be required to secure instalment payments. Industry has matured and the past practice of BG is no longer required.
- Spectrum Tenure: In future Auctions, tenure of spectrum increased from 20 to 30 years.
- Surrender of spectrum will be permitted after 10 years for spectrum acquired in the future auctions.
- No Spectrum Usage Charge (SUC) for spectrum acquired in future spectrum auctions.
- Spectrum sharing encouraged- additional SUC of 0.5% for spectrum sharing removed.
- To encourage investment, 100% Foreign Direct Investment (FDI) under automatic route permitted in Telecom Sector. All safeguards will apply.
Procedural Reforms
- Auction calendar fixed - Spectrum auctions to be normally held in the last quarter of every financial year.
- Ease of doing business promoted - cumbersome requirement of licenses under 1953 Customs Notification for wireless equipment removed. Replaced with self-declaration.
- Know Your Customers (KYC) reforms: Self-KYC (App based) permitted. E-KYC rate revised to only One Rupee. Shifting from Prepaid to Post-paid and vice-versa will not require fresh KYC.
- Paper Customer Acquisition Forms (CAF) will be replaced by digital storage of data.
- SACFA clearance for telecom towers eased. DOT will accept data on a portal based on self-declaration basis. Portals of other Agencies (such as Civil Aviation) will be linked with DOT Portal.
The Cabinet approved the following for all the Telecom Service Providers (TSPs):
Moratorium/Deferment of upto four years in annual payments of dues arising out of the AGR judgement, with however, by protecting the Net Present Value (NPV) of the due amounts being protected.
Moratorium/Deferment on due payments of spectrum purchased in past auctions (excluding the auction of 2021) for upto four years with NPV protected at the interest rate stipulated in the respective auctions.
Option to the TSPs to pay the interest amount arising due to the said deferment of payment by way of equity.
At the option of the Government, to convert the due amount pertaining to the said deferred payment by way of equity at the end of the Moratorium/Deferment period, guidelines for which will be finalized by the Ministry of Finance.
News Source : Multiple PIB Articles
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