1. Himachal Pradesh’s Kangra tea gets European GI Tag
Kangra Tea, hailing from Himachal Pradesh, was granted a Geographical Indication (GI) Tag by the European Union (EU) on March 29th, 2023. This opens up new possibilities for Kangra tea to be introduced to the European market.
About Kangra Tea :
Kangra tea, a variety of tea grown in the Himachal Pradesh region of India, has undergone significant improvements in cultivation and development in the Kangra region (also known as the 'Valley of Gods') since 1999.
The tea is grown at elevations ranging from 900-1,400 meters above sea level, with an annual rainfall of 270-350 centimeters, on the slopes of the Dhauladhar mountain range in the Western Himalayas.
There has been a growing demand for Kangra tea, which has been exported to Kabul and Central Asia via Peshawar. In 2005, Kangra tea was granted the Indian Geographical Indication (GI) tag.
About GI Tag :
Geographical indications (GIs) are a type of Intellectual Property (IP) Right that applies to agricultural, natural, or manufactured products (including handicrafts and industrial goods) that originate from a specific geographic location.
In the European Union, the GI tag is used to protect agricultural products, foodstuffs, spirit drinks, wines, and aromatized wines.
The GI tag serves as an assurance of quality and distinctiveness that is inherently linked to the product's place of origin. Once a product is granted a GI tag, no individual or company can sell a similar item under the same name. The tag remains valid for a period of 10 years, after which it may be renewed.
2. IRDAI Releases Liberalised Commission Regulations Benefitting Insurers & Distributors
The Insurance Regulatory and Development Authority of India (IRDAI) recently introduced three new regulations that are expected to significantly impact market participants, including insurers and intermediaries.
The new rules are as follows :
(i) IRDAI (Expenses of Management of Insurers transacting General or Health Insurance business) Regulations, 2023
(ii) Insurance Regulatory and Development Authority of India (Payment of Commission) Regulations, 2023
(iii) IRDAI (Expenses of Management of Insurers transacting life insurance business) Regulations, 2023
The previous practice of "product-wise capping" of commission payable to intermediaries has been replaced by IRDAI's overall 'expenses of management' (EOM) limits, which must be adhered to by insurers. These changes are expected to have significant economic implications for all parties involved.
* The Regulations for Expenses of Management of Insurers transacting General or Health Insurance Business, 2023, as issued by IRDAI
Aim : The purpose of these regulations is to grant insurers flexibility in managing their expenses within the overall limits set based on their gross written premium and to efficiently use their resources to enhance policyholder benefits. These regulations will come into effect on April 1, 2023, and will remain in effect for three years. They will apply to insurers operating in either the general insurance or health insurance sectors.
Important :
Under this regulation -
(i) Standalone health insurers can incur expenses of management (EOM) up to 35% of the gross written premium during a financial year in India, while general insurers can incur EOM up to 30% of the gross written premium in India during a financial year.
(ii) The new regime has eliminated the previous method of calculating allowed limits based on segmented products and replaced it with a single limit based on the total gross written premium of general and health insurers.
(iii) These regulations impose more restrictions on management expenses, encouraging insurers to concentrate on increasing insurance penetration.
** Insurance Regulatory and Development Authority of India (Payment of Commission) Regulations, 2023
Aim : The aim of these regulations is to grant insurers the flexibility to manage their expenses according to their growth objectives and changing insurance requirements, with the aim of increasing insurance penetration. These regulations will come into effect on April 1, 2023. They must be reviewed every three years from the date of notification, unless an earlier review, repeal, or amendment is deemed necessary.
Important :
The IRDAI has introduced new regulations to provide insurers with greater flexibility in managing their expenses, which include an overall cap on commission payments to agents, brokers, and other intermediaries for both life and non-life insurance companies.
The previous product-specific cap has been replaced by a board-approved cap that falls within the permissible expenses. Under the earlier regime, insurers were allowed to pay up to 22.5% of the total premium on two-wheelers and 19.5% of the total premium on other vehicles, such as cars and SUVs.
*** IRDAI (Expenses of Management of Insurers transacting life insurance business) Regulations, 2023
The purpose of these regulations is to allow insurers operating life insurance business in India to manage their expenses effectively within the overall limits based on their gross written premium, while also optimizing their resources to benefit policyholders.
These regulations will become effective on April 1, 2023, and will remain in force for three years.
3. IRDAI Identified LIC, GIC & New India Assurance as D-SIIs for FY23
The Insurance Regulatory and Development Authority of India (IRDAI) has once again identified Life Insurance Corporation of India (LIC), General Insurance Corporation of India Limited (GIC Re), and New India Assurance as Domestic Systemically Important Insurers (D-SIIs) for the Financial year 2022-23. This annual identification and public disclosure of D-SIIs by IRDAI align with the Reserve Bank of India's benchmarking to consider these insurers 'too big (or too important) to fail.'
LIC, GIC, and New India Assurance have been identified as D-SIIs for the second consecutive year, as they were also identified as D-SIIs in the Financial year 2020-21.
D-SIIs :
(i) D-SIIs are insurers that are of significant size, importance in the market, and have domestic and global connections. The failure or distress of these insurers could have a major impact on the domestic financial system.
(ii) As a result, the continuous operation of D-SIIs is crucial to ensure uninterrupted access to insurance services for the national economy.
(iii) In the event of a future crisis, D-SIIs may receive some form of government support.
(iv) D-SIIs are also subject to additional regulatory measures to address systemic risks and moral hazard issues.
(v) Accordingly, they are subject to enhanced regulatory supervision.
4. BharatPe Group Partners with WEP to foster Women Entrepreneurship in India
Bharatpe Group, a prominent fintech company in India, has collaborated with the Women Entrepreneurship Platform (WEP) to assist women entrepreneurs throughout India in their efforts to achieve self-sufficiency and business expansion.
The partnership, which is part of the "BharatPe Cares" Corporate Social Responsibility (CSR) program by the BharatPe Group, is aligned with the company's brand mission of "empowering lives through inclusive fintech solutions."
This initiative is a part of BharatPe's CSR program called PAYBACK.
(i) According to the 6th economic census by the Ministry of Statistics and Programme Implementation(MoSPI), women account for only 13.76% of the total entrepreneurs (8.05 million out of the total 58.5 million entrepreneurs) in India.
(ii) This highlights the need to empower women entrepreneurs in India.
Aim : The objective is to create a supportive environment that brings together women entrepreneurs from all over India and provides them with the necessary expertise and financial and technical skills needed to attain their business objectives.
Focus areas : To facilitate the development of an aggregator platform that gives access to peer support, mentorship, networking channels and a range of learning resources.
Important :
(i) The partnership between WEP and BharatPe aims to empower women entrepreneurs and create a level playing field by addressing the challenges they face and providing equal growth opportunities.
(ii) The partnership will also develop a plug-and-play digital infrastructure to bridge existing gaps and support the growth of women entrepreneurs.
Industry reports show that women entrepreneurs in India have the potential to create 150-170 million jobs by 2030, which is more than 25% of the new jobs required for the working-age population.
Promoting women’s entrepreneurship is critical for building a USD 5 trillion economy and will boost the economy through job creation.
5. Sarbananda Sonowal launches Sagar Setu Mobile App of National Logistics Portal Marine
On March 31, 2023, the Union Minister Sarbananda Sonowal, Ministry of Ports, Shipping, and Waterways (MoPSW), unveiled the mobile application version of the National Logistics Portal (Marine) called "SAGAR SETU" in New Delhi, Delhi. Minister of State (MoS) Shripad Yesso Naik, MoPSW Sudhansh Pant, Secretary, and other senior officials were present during the launch.
Important :
(i) The SAGAR SETU app is equipped with various features such as Login Module, Service Catalogue, Common Application Format, Letter of Credit, Bank Guarantee, Certification, Track and Trace, etc. to provide real-time information to importers, exporters, and customs brokers.
These features give access to vessel-related details, gate information, container freight stations, and transactions, which can be easily accessed through the app.
(ii) The app enables digital transactions for payments required for import and export clearance processes.
(iii) The SAGAR SETU app aims to reduce the turnaround time for approval and compliances, enabling custodians to easily access functionalities on their handheld devices. The app will benefit service providers by allowing them to track records and transactions, receive notifications of service requests, and help in the tracking of records and transactions.
6. Union Budget 2023-24: Union Minister Nirmala Sitharaman announces Revamping of Credit Guarantee Scheme for MSE from 1st April
The Union Minister of Finance, Nirmala Sitharaman, announced in the 2023-2024 union budget that the Credit Guarantee Scheme for Micro & Small Enterprises (MSE) would be revamped starting from April 1, 2023.
The scheme will be infused with Rs 9,000 crore to the corpus to enable an additional Rs 2 lakh crore in collateral-free guaranteed credit, and the credit cost will be reduced by about 1%. On March 30, 2023, the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) received an infusion of Rs 8,000 crore into its corpus.
During the financial year 2022-23, CGTMSE approved guarantees totaling Rs 1 lakh crore, creating a new landmark. The ceiling limit for guarantees has been enhanced from Rs 2 crore to Rs 5 crore. Legal proceedings will no longer be required for the settlement of claims in respect of guarantees for loans outstanding up to Rs 10 lakh, according to guidelines issued by CGTMSE in this regard.
7. CBDT signs 95 Advance Pricing Agreements in FY 2022-23
In FY 2022-2023, Indian taxpayers signed a record 95 Advance Pricing Agreements (APAs) with the Central Board of Direct Taxes (CBDT) of the Department of Revenue, Ministry of Finance. This is the highest number of APA signings in any FY since the launch of the programme.
Out of the total, 63 were Unilateral APAs (UAPAs), and 32 were Bilateral APAs (BAPAs). On 24th March 2023, a record was created with the largest number of single-day signings in the programme's history, totaling 21 APAs. The total number of APAs since the beginning of the programme has now reached 516, including 420 UAPAs and 96 BAPAs.
The APA Scheme's objective is to provide clarity to taxpayers on transfer pricing by defining pricing methodologies and determining the arm's length price of international transactions for up to 5 years in the future.
8. Chennai’s WABAG bags Rs 4,400 crore Seawater Desalination Project in Tamil Nadu
VA Tech Wabag Ltd (WABAG), a Chennai-based company, has secured a Rs 4,400 crore project to build a Sea Water Reverse Osmosis (SWRO) plant in Tamil Nadu (TN), which upon completion will be the biggest sea-water desalination project in the South East Asia region. The project will be executed on a design, build, operate (DBO) model in partnership with Metito Overseas Limited, a company based in the United Arab Emirates (UAE).
Important :
(i) VA Tech Wabag Ltd (WABAG) and Metito Overseas Limited have been awarded a Sea Water Reverse Osmosis (SWRO) project by Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB).
(ii) The project, worth Rs 4,400 crore and with a 400 MLD capacity, will be the largest seawater desalination plant in South East Asia, funded by the Japan International Cooperation Agency (JICA).
(iii) The project will be implemented on a design, build, operate (DBO) model, with a 42-month DBO period and WABAG will operate and maintain it for 20 years.
(iv) The desalination process involves Lamella Clarifiers, Dissolved Air Flotation System, Gravity Dual Media Filters followed by Reverse Osmosis, and Re-mineralization to produce clean drinking water. The water will be distributed by CMWSSB to the residents of south Chennai.
(v) This project will be a significant milestone for Chennai and India as it will be the largest desalination plant in Southeast Asia.
(vi) Chennai will become the "Desalination Capital of India" with a production capacity of about 750 MLD of desalinated water along the coast of Chennai, TN.
(vii) WABAG will produce around 70% of the water used by desalination units in Chennai, TN with the 400 MLD SWRO desalination plant.
9. MoF Increases Interest Rates on Most Small Savings Schemes, Except PPF, for Q1 FY24
The Ministry of Finance (MoF), Department of Economic Affairs (DEA), has announced an increase in interest rates on several Small Savings Schemes for the first quarter of the financial year 2023-24 (Q1 FY24), which runs from April 1, 2023, to June 30, 2023. This is the third consecutive quarter of rate hikes.
These Small Savings Schemes have approximately 40 crore subscribers and include 12 instruments such as the National Savings Certificate (NSC), Public Provident Fund (PPF), Kisan Vikas Patra (KVP), Sukanya Samridihi Account (SSA), Monthly Income Savings Scheme, and all post office time deposits.
The interest rates for these savings instruments have been increased by 10-70 basis points (bps). (One percentage point is equal to 100 bps). However, the interest rate for the PPF scheme remains unchanged at 7.1% for Q1 FY24, and its returns have remained constant for the past three years.
Important :
(i) The National Savings Certificates (NCS) have seen the highest increase in interest rates, rising from 7% to 7.7% from January to June.
(ii) The interest rates on various small savings schemes have been hiked by 10-70 basis points and now range from 4% to 8.2%.
(iii) Following the revision, the interest rate on a one-year term deposit at the post office will increase from 6.6% to 6.8%, while for a 2-year term deposit, it will increase from 6.8% to 6.9%. Additionally, for a 3-year term deposit, the interest rate will increase from 6.9% to 7%, and for a 5-year term deposit, it will increase from 7% to 7.5%. The interest rate on 5-year recurring deposits has also been increased from 5.8% to 6.2%.
(iv) The interest rate on the Monthly Income Account Scheme has been increased from 7.1% to 7.4%.
(v) Senior Citizen Savings Schemes' interest rate has been increased from 8% to 8.2%.
(vi) The Kisan Vikas Patras' interest rate has been hiked from 7.2% to 7.5%. The scheme will now mature in 115 months instead of the previous 120 months.
From April to June 2023, the interest rate for the Sukanya Samriddhi Account scheme, designed for girl children, will increase from 7.6% to 8%.
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