Efforts on to revive effluent plant project in Edayar industrial area
The much-delayed project was expected to get a push after the government had earmarked around ₹30 crore towards a ₹250-crore assistance promised by the Small Industries Development Bank of India (SIDBI) for setting up CETPs in various industrial estates in the State. However, the Centre's borrowing restrictions on the State had delayed its implementation.
Industries Minister P. Rajeeve said on Tuesday that the restrictions on taking loans had impacted the CETP project under assistance from the SIDBI. However, the government was looking at whether it could be included under the Guarantee Redemption Fund (GDR), which was meant to cover government guarantees offered for loans availed by public sector entities and cooperatives, he said.
The monthly progress report on the updated status of the short- and long-term projects for the rejuvenation of the Periyar submitted before the Ministry of Jal Shakthi for May had quoted a decision taken at a meeting called by the Chief Secretary on February 9, 2023 saying that the CETP project might be dropped. All the units may be advised to have their own facilities for treatment of effluents. The fund allotted for the project may be utilised for any other liquid waste treatment project, it said.
According to the detailed project report for the CETP in Edayar, the proposed plant will have the capacity to treat two million litres per day. A preliminary report prepared by the Kerala Water Authority said that the site identified for the project was close to the north-western portion of the industrial estate, which was previously occupied by the now defunct Periyar Chemical Industries. There was sufficient land with a facility to discharge to the downstream of the Pathalam regulator-cum-bridge of the Periyar, it said.
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Indian Express
23 minutes ago
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S&P rating upgrade: how India earned it and what lies ahead
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'The rating of India did not capture India's fundamentals for almost a decade,' Soumya Kanti Ghosh, State Bank of India's Group Chief Economic Adviser, said in a note on August 14. So, what has convinced S&P that now is a good time for India to be given an upgrade? Steady economic improvement The primary reason is clarity on the government's finances. While the Centre has had a law called the Fiscal Responsibility and Budget Management Act since 2003 — it demands reducing the annual fiscal deficit to 3 per cent of GDP — it has rarely been met. In fact, only once since the Act's enactment has the Centre's fiscal deficit fallen below 3 per cent, in 2007-08, and that was primarily due to some financial jugglery. It was in January 2007 that S&P had last upgraded its rating on India. However, post the coronavirus pandemic, the fiscal deficit has been reduced aggressively from 9.2 per cent in 2020-21 to a targeted 4.4 per cent in 2025-26. Going forward, the Centre will start targeting a reduction in its debt-to-GDP from 57.1 per cent in 2024-25 to 49-51 per cent by 2030-31. Then there is growth. Despite GDP growth falling to a four-year low of 6.5 per cent in 2024-25, India remains one of the fastest growing large economies in the world — or in S&P's words, 'among the best performing economies in the world'. And this is real, or inflation-adjusted, growth; nominal growth — which is the actual increase in the GDP in today's prices — is even higher. When it comes to calculating the debt-to-GDP ratio, it is the nominal GDP that matters. As such, as long as nominal GDP growth is higher than the pace with which the debt is increasing, the debt-to-GDP ratio will keep falling. Another key factor has been the fairly low and stable domestic inflation, with S&P praising the Reserve Bank of India's inflation management record. 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Mint Explainer: Will fewer slabs in GST 2.0 finally fix India's tax maze?
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an hour ago
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Next-Gen GST step towards a single tax slab GST
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The proposed two-slab regime, if approved by the GST Council, will replace the current four slabs in the Goods and Services Tax (GST) regime, doing away with the 12 per cent and 28 per cent it the "next Gen GST', a government official said, "It is a game changer reform. In the pantheon of economic reforms seen in India, it's right up there". The officials spoke on the condition of sources said the new structure would mean that almost all of the common-use items will move to the lower tax bracket, leading to price cuts, which in turn would boost consumption. Terming the overhaul as "reformed and refined GST", a source said the Centre did not want a short-term solution in the tax rate rationalisation and, with the Compensation Cess coming to an end, a Next Gen GST was necessary."Lower taxes mean it will put more money in people's pockets. It will obviously lead to more consumption," the official Centre's proposal for a 5 and 18 per cent tax rate on merit and standard goods and a 40 per cent tax for sin goods has been a "large canvas exercise" to ensure stability in tax rates, officials said, explaining the rationale behind the changes that have come about after nearly six months of deliberations and dozens of meetings have been conceived in a way to ensure that demand for tax tweaks does not arise, and also that input tax credit (ITC) does not get accumulated in the the Centre's proposal is accepted by the Group of Ministers (GoM) and is approved by the GST Council, it will end the flux of tax rates and ensure stability, the officials said."What we have suggested is a 'Next Gen GST' keeping the needs of the middle class, poor, farmers, and MSMEs in mind. Also, it has been ensured that tax on daily use items is low," the official told PTI."Once the system is put in place and India becomes a developed nation, we can think about a single rate GST," the official said, adding that a single rate structure is suitable for developed countries where income and spending capacities are uniform."The ultimate aim is to move to a single slab structure," the official said, adding that the time, however, is not right at to the official, during the process of overhaul, every due process is being followed. The Centre has taken the steering role but is protecting constitutional obligations by sharing it with the Group of Ministers (GoM) on rate rationalisation."We have looked at every item, item by item and in some cases, we have gone back and forth 3-4 times. Whether it is pesticides for use by farmers or pencils for students or some raw material or intermediaries for MSMEs, every item has been discussed threadbare and categorised in the merit or standard slab," the official many as 99 per cent of items in the 12 per cent category, such as butter, fruit juices and dry fruits, would move to a 5 per cent tax rate. Similarly, electronic items like ACs, TVs, fridges, and washing machines, as well as other goods like cement, will be among the 90 per cent of the items that will move from 28 per cent to a lower 18 per cent move comes after US President Donald Trump imposed a 25 per cent tariff on all goods India exports to the US, and planned doubling of the levy to 50 per cent from August 27 to punish New Delhi for its oil purchases from Russia. The tariffs are likely to impact USD 40 billion of non-exempt Indian exports such as gems and jewellery, textiles and footwear. Prime Minister Narendra Modi, in his Independence Day address to the nation on Friday, emphasised that India should become self-reliant and consume what is made in India. The tax slabs that the Union Finance Ministry has proposed will go to a group of ministers from different states, and after their concurrence, will be placed before the all-powerful GST Council, which is headed by the Union Finance Minister and comprises representatives of all states and council is expected to meet next month to deliberate on the tax reform 20 per cent of items, including packaged food and beverages, apparel and hotel accommodation, are currently taxed at 12 per cent GST and account for 5-10 per cent of consumption and 5-6 per cent GST revenue. Moving them to a lower 5 per cent slab may lead to loss of revenue, but the Central government is hopeful that a boost in consumption would be able to make up for the deficit in the next few months.
