Page 14 - Banking Finance February 2018

ROUNDUP

Government imposes Honda plans to make batteries in India
Honda Motor Co. Ltd plans to set up a lithium ion battery manufacturing unit in
30% import duty on
India as it seeks to tap the emerging, potentially lucra-
gram, lentils tive electric vehicle opportunity in the country. Honda
Cars India Ltd, the Indian unit, will next identify the type
of electric vehicles the company would want to make
locally, a person with direct knowledge of the develop-
ment said on condition of anonymity.

The National Democratic Alliance government wants only electric vehicles to ply
on India's roads by 2030 as part of its commitment to reduce greenhouse gas
emissions under the global agreement on climate change, and to reduce spend-
ing on oil imports, which, according to one estimate, could double to an annual
Government imposed a 30% import $300 billion by that year.
duty on chana (gram) and masoor
(red lentil) to support domestic grow- Central Government may allow 100% FDI in telecom
ers. Earlier, both these pulse variet-
The government is finalising a plan to allow 100% FDI for telecom services through
ies could be imported freely.
the automatic route, which allows firms to attract
The latest decision follows a hike in foreign funds without its approval, sources said.
import duties on edible oils like palm
The proposal is likely to be considered by the Telecom
oil and soybean, and on pulses like
Commission. "The Commission is likely to consider
yellow peas announced in November, raising FDI limit up to 100 per cent for all telecom
besides freeing up exports of all vari-
services, including infrastructure, through the auto-
eties of pulses.
matic route," a source said. At present 100 per cent FDI is allowed, of which up
"To protect interests of farmers, the to 49 per cent investment in a company can be done through the automatic
government has decided to impose route.
30% import duty on chana and
masoor with immediate effect," the Major ports see 3.6% volume growth
finance ministry said, adding, "pro- The major ports, have recorded a growth of 3.64 per cent and together handled
duction is expected to be high during 499.41 million tonnes (mt) of cargo during the period
the forthcoming rabi (winter crop) April to December 2017 against 481.87 mt handled
season and cheap imports, if allowed during the corresponding period of previous year. The
unabated, are likely to adversely af- growth rate is marginally higher than that for the April-
fect the farmers." September 2017, when the major ports in India have
While the decision to hike import recorded a growth of 3.24 per cent.
duty on edible oils came ahead of the For the period from April-December 2017, eight ports (Kolkata - including Haldia,
state elections in Gujarat, which is a Paradip, Visakhapatnam, Chennai, Cochin, New Mangalore, JNPT and Kandla)
major producer of groundnut, the have registered positive growth in traffic. The highest growth was registered by
latest decision to support domestic Cochin Port (17.27 per cent), followed by Paradip (14.59 per cent), Kolkata [in-
chana farmers comes ahead of state cluding Haldia] (12.45 per cent), New Mangalore (6.6 per cent) and Jawaharlal
elections in Madhya Pradesh, Nehru Port Trust (5.94 per cent).
Karnataka and Rajasthan next year.
Farmers in these three states grow Forex reserves touches $3.53 billion
over 60% of India's chana output, The country's foreign exchange reserves surged by $3.53
while Madhya Pradesh grows nearly billion to touch a new lifetime high of $404.921 billion in
40% of the lentils produced in the the week to December 22, aided by an increase in foreign
country. currency assets, Reserve Bank data showed.

14 | 2018 | FEBRUARY | BANKING FINANCE

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