Page 15 - Banking Finance October 2020

ROUNDUP

acquiring seismic data on the shallow While railway ministry officials said that property ownership rights play a
water blocks AN-OSHP-2018/1 and AN- trains running at less speed will con- big role in a country's development,"
OSHP-2018/2, which the company had tinue to have the sleeper coaches, the Modi said while launching the scheme
won in the third round of open acre- railways has set the December 2023 via video conference.
age licensing policy. The results of the deadline to complete the upgradation The scheme will pave the way for resi-
seismic survey would help the firm de- of Delhi-Mumbai and DelhiHowrah to dents in villages to use property as a
cide on drilling of wells on the block enable trains to run at 160 kmph. This financial asset for taking loans, Modi
that could yield oil and gas. means most of the future long distance said, adding that it is necessary for a
trains on these corridors won't have developing country like India to have
Covid-19 school closure sleeper coaches. clear land ownership rights.
may cost India over $400 Sources said though the railways have
had this plan for quite some time, this Govt decides to waive in-
bn: World Bank
has gained pace recently and more
The prolonged closure of schools due particularly when the Indian Railways terest on interest for loans
to the Covid-19 pandemic in India may is finalising the zero-based time table up to Rs 2 cr
cause a loss of over $400 billion in the for future trains. Stating that a complete waiver of in-
country's future earnings, besides sub- terest for loan repayments during the
stantial learning losses, according to a A railway ministry spokesperson said moratorium period would affect the
World Bank report. the ticket prices of such trains will be
affordable and it should not be "mis- very survival of banks and create prob-
South Asia region stands to lose $622 construed" that all non-AC coaches will lems for depositors, the Centre has told
billion from the school closures in the be made into AC coaches. the Supreme Court that it has decided
present scenario or up to $880 billion to waive compound interest on MSME
in a more pessimistic scenario, it said, Officials said that the new AC coaches and personal loans up to Rs 2 crore for
adding while the regional loss is largely will be economical as their tickets will the six-month period.
driven by India, all countries will lose be priced between AC 3 and sleeper In an affidavit filed in the top court, the
substantial shares of their GDP. The coaches. Compared to 72 berths in a Union Finance Ministry said that "af-
report titled "Beaten or Broken? Infor- sleeper coach, this new AC coach will ter careful consideration and weighing
mality and Covid-19 in South Asia" have 83 berths, but the number of all possible options, the… Govern-
claims that South Asia is set to plunge berths in a coupe will remain the ment… has decided that the relief on
into its worst-ever recession in 2020 as same. waiver of compound interest during
the devastating impacts of Covid-19 on the six-month moratorium period shall
the region's economies linger. PM launches property be limited to the most vulnerable cat-
"Temporary school closures in all South cards, says will end dis- egory of borrowers".
Asian countries have had major impli- "This category of borrowers…would be
cations for students. They have kept putes, enable loans MSME loans and personal loans up to
391 million students out of school in Prime Minister Narendra Modi Rs. 2 crore" and would include educa-
primary and secondary education, fur- launched the Survey of Villages and tion, housing, auto, consumption and
ther complicating efforts to resolve the Mapping with Improvised Technology, consumer durable loans, personal
learning crisis," said the report. or Svamitva, a new scheme to distrib-
loans to professionals and credit card
ute property cards that will enable
Only AC coaches on trains beneficiaries to take loans and resolve dues of up to Rs 2 crore.
running at over 130 kmph land disputes.
SEBI imposes Rs. 6 crore
Railways will phase out sleeper coaches "With the help of property cards, a lot
on mail and express trains that will run of disputes in villages can get resolved. fine on NSE
at 130 kmph or above on its tracks. No one needs to be worried about is- The Securities and Exchange Board of
Such trains will have only AC coaches as sues like encroachment anymore… Ex- India (Sebi) has slapped a penalty of Rs
it plans to upgrade the network. perts across the world have stressed 6 crore on the National Stock Ex-

BANKING FINANCE | OCTOBER | 2020 | 15