Page 13 - Banking Finance February 2021

ROUNDUP

Govt aims to set up a MP becomes first State to with respect to extension of due date
of GST Annual Return and audit/
development finance give power subsidy reconciliation statement".
institution in 3-4 months through DBT
The government plans to set up a Madhya Pradesh has become the first Exports grow 11% in first
Development Finance Institution (DFI) State to give electricity subsidy half of Jan
in the next three to four months with through Direct Benefit Transfer. India's exports rose around 11% to
a view to mobilise the Rs. 111 lakh "The State has started DBT of electricity $11.8 billion during the first fortnight
crore required for funding of the subsidy to farmers in one district with of 2021, while imports went up about
ambitious national infrastructure effect from December 2020. Thus, the 6.6% to $18 billion, resulting in a trade
pipeline, according to Financial State has successfully implemented one deficit of over $6 billion.
Services Secretary Debasish Panda.
out of the three stipulated reforms in Exports climbed 5.6% during the
"We need a development financial the power sector," said a statement
institution as infra financing needs issued by the Finance. second week of January after an over
patient capital, and banks are 16% rise during the previous seven-day
currently not suited for lending for The scheme has been implemented in period, led by a jump of more than
long-term projects which do not Vidisha district of the State, where 20% in the shipments of drugs, pharma
generate any cash for years," he told. electricity is bring supplied through the and engineering goods - two
MP Madhya Kshetra Vidyut Vitaran Co traditional strong points for the
Even deepening the bond market with Ltd with effect from December 2020. country.
regard to infrastructure financing was Under the scheme, an amount of Rs.
a matter receiving the Centre's 32.07 crore was transferred to the In fact, engineering goods contributed
attention and there was a need to do bank accounts of 60,081 beneficiaries over 82% of the increase during the
something more in order to have a in December. second week, led by a surge in exports
robust bond market for infrastructure to the US and the UK.
financing, he said. This made the State eligible to mobilise But a large chunk of the rise was offset
additional financial resources
"To provide funding, to enhance credit equivalent to 0.15 per cent of its Gross by a fall in export of petroleum
rating of projects, a DFI is needed, and State Domestic Product (GSDP). products, which fell 91% due to lower
we are actively working on it, and soon Accordingly, the Expenditure demand from the UAE and the
such an institution will be in place. We Department under the Finance Netherlands.
are in the process of finalising details Ministry gave a go-ahead to borrow During the second week, imports grew
such as shareholding of the 12.3% or by $1 billion due to a surge
additional Rs. 1,423 crore through
government and whether such a body in gold consignments, which shot up by
Open Market Borrowings.
will be formed through a statute. 144%, partly due to higher prices. The
yellow metal contributed to 44% of the
Paytm to sell personal GST still an unstable law increase.
loans With 927 notifications and circulars in
the last three years, the GST is as yet Special I-T dept unit to
Paytm has launched a new vertical - "an unstable law", says The Western
Paytm Lending - to distribute personal Maharashtra Tax Practitioners' prove undisclosed foreign
loans to customers through its app. Association (WMTPA). The "highly assets
Paytm said that the new service is built disappointed" association has said in a
on its tech platform, which enables letter to the Finance Minister that the A special unit has been created by the
partner banks and non-banking due date, February 28, for filing GST government in the countrywide
financial companies (NBFCs) to process investigation wings of the Income Tax
annual return "is impossible even to
loans end to end in less than 2 department for focused probe in cases
God".
minutes. The company has said that it of undisclosed assets held by Indians
aims to have a million users by the end The strongly-worded letter says that abroad and possession of black money
of March 2021. "government has made a joke/blunder in foreign shores, officials said.

BANKING FINANCE | FEBRUARY | 2021 | 13