Banking, Financial and Economic Awareness of 22, 23 and 24 November 2020

Topic: Indian Economy/Financial Market

1. Inverted duty structure making domestic rubber industry non-competitive in international markets

• Inverted duty structure in India is making its domestic rubber industry non-competitive in international markets.
• Inverted duty structure means import duty on raw materials is high and import duty on finished products is low. Inverted duty structure causes rise in imports and negatively affects domestic industry.
• Under Free Trade Agreement with ASEAN countries, import duty on natural latex liquid is 70%. But, import duty on latex products is only 5%.
• It is easier to import finished products than to manufacture them domestically. The duty on rubber products is between 0 to 10%.
• Duty on raw materials for rubber industry is between 5 to 70%. Non-tyre segment of domestic rubber industry is being particularly affected by inverted duty structure.
• Non-tyre segment of rubber industry comprises of latex products and other rubber products like ancillary parts, foot wear, hoses, rubberized rollers, and molded goods.

Topic: Indian Economy/Financial Market

2. DIPAM invites proposal for appointing a consultant to give advice on stake sale in PSBs and insurance companies

• Department of Investment and Public Asset Management (DIPAM) has invited proposal for appointing a consultant to give advice on stake sale in PSBs and insurance companies.
• The consultant will also help DIPAM in planning the processes and procedures for different modes of disinvestment.
• The consultant should have maximum 30 years of experience in banking, insurance and financial institutions and should not be over 65 years of age.
• The tenure of the consultant will be one year. It can be extended for maximum of two years.
• Currently, government owns 12 PSBs and seven insurance companies. Their names are given in the following table:

• Government may also bring a policy on Public Sector Enterprises after consideration by Cabinet. 
• As per the proposal, the government will own only one enterprise in strategic sectors and allow the private sector to own enterprises in strategic sectors.
• Government’s disinvestment target is Rs2.10 lakh crore for the current fiscal. Out of this, Rs 90,000 crore is to come from stake sale PSBs and financial institutions (including LIC and IDBI Bank). The remaining will come from stake sale in Public Sector Enterprises.
• Department of Investment and Public Asset Management (DIPAM) was formed in 2016. It comes under the Ministry of Finance.

(Source: The Hindu BusinessLine)

Topic: Infrastructure and  Energy

3. Coal India plans to invest Rs. 5,650 crore for setting up solar power projects of 3,000 MW capacity by FY’24

• Coal India has plans to invest Rs. 5, 650 crore for setting up solar power projects of 3,000 MW capacity by FY’24.
• Out of the total investment of Rs. 5,650 crore, the investment of Rs. 3,650 crore will be done as part of capital expenditure and the rest investment will be done through joint ventures.
• 10-MW capacity would be added during the current fiscal year. 220-MW capacity would be added in 2021-22 (FY22) and 1,293 MW would be added during FY23. 1,340 MW would be added in 2023-24 (FY24).
• CIL has already formed a joint venture with Neyvelli Lignite Corporation (NLC) to set up 1,000-MW solar power projects.
• It has also formed a joint venture with NTPC and signed MoU with Solar Energy Corporation of India to set up solar projects of 1,000 MW each.
• Coal India Limited (CIL):
  • Coal India Limited is a coal mining and refinery company owned by the government of India.
  • It is the world’s largest coal producer. This Maharatna PSU accounts for about 82% of the coal production in India.
  • It is headquartered in Kolkata, West Bengal.

Topic: Regulatory Bodies and Financial Institutions

4. CCI allows Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited to acquire Future Group’s businesses

• CCI has allowed Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited to acquire Future Group’s retail, wholesale, logistics & warehousing businesses.
• Amazon has appealed to SEBI, BSE and NSE against the Rs. 24,713-crore acquisition of Future Group’s businesses.
• On 25 October, Singapore International Arbitration Centre (SIAC) has ordered interim stay on the selling of Future Retail Limited’s assets to Reliance Retail.
• Amazon then requested SEBI to consider the interim judgement of Singapore International Arbitration Centre (SIAC).
• In 2019, Amazon acquired 49% stake in Future Coupons Pvt. Ltd. This included a condition preventing the sale of Future’s assets or its alliance with 30 retail entities and Reliance was one of them.
• Kishore Biyani is the founder and CEO of Future Group.
• Competition Commission of India (CCI):
  • CCI is a statutory body responsible for implementing the Competition Act, 2002. It was formed on 14 October 2003.
  • It has a chairman and not less than 2 members and not more than 2 members. The chairman and members are appointed by the central government.
  • Chairman: Ashok Gupta

Topic: World Economy

5. Crude oil prices rise due to successful coronavirus vaccine trials

• Crude oil prices have increased due to successful coronavirus vaccine trials.
• Both benchmarks (Brent crude futures and US West Texas Intermediate crude) gained 5% last week.
• The rise in prices is also because the OPEC+ meeting on 30 November and 1 December is likely to continue crude output cuts for 3-6 months.
• Brent crude futures rose by 0.5% and US West Texas Intermediate crude jumped by 0.2%.
• US Food and Drug Administration (FDA) may approve the distribution of vaccine produced by Pfizer Inc and German partner BioNTech in mid-December.
• In May 2020, US government has initiated Operation Warp Speed for faster development, manufacturing and distribution of Covid-19 vaccines.

Topic: Infrastructure and Energy

6. 40% of Dedicated Freight Corridor (DFC) route to be completed in FY 202-21

• 40% of Dedicated Freight Corridor (DFC) route will be completed in FY 202-21 and freight trains will start funning on 40% of DFC by 2021.
• The overall cost of DFC is Rs 81,459 crore. It has two corridors. They are the western corridor and the eastern corridor.
• The length of western corridor is 1,504 kms. It extends from J N Port in Mumbai to Dadri in Uttar Pradesh.
• The length of eastern corridor is 1,856 kms. It extends from Sahnewal near Ludhiana in Punjab to Dankuni in West Bengal.
• DFCCIL managing director R N Singh has said that complete eastern and western corridors will be commissioned by June 2022.
• Government will also complete three more DFCs by 2030. They are East Coast Corridor, the East-West Corridor and the North-South Sub-Corridor.

• Dedicated Freight Corridor Corporation India Limited (DFCCIL) is a public sector undertaking formed in 2006. It is headquartered in New Delhi. Vinod Kumar Yadav is the chairman of DFCCIL.
• It plans and mobilizes financial resources for dedicated freight corridors. It also constructs, maintains and operates dedicated freight corridors.

Topic: Appointments

7. Mary Kom appointed as brand ambassador of Gourav Luminaries Pvt Ltd

• Mary Kom has been appointed as the brand ambassador of Gourav Luminaries Pvt Ltd.
• Gourav is a fast-moving consumer electrical goods brand. Gourav will also launch its new logo.
• Mary Kom was honored with Padma Vibhushan in January 2020. 
• In October 2019, she was named as the female representative of boxing’s athlete ambassadors group for 2020 Summer Olympics or Tokyo 2020 to be organized from 23 July to 8 August 2021.

Read Banking Awareness PDF - 22, 23 and 24 November 2020