News in Numbers, Mar 30, 2017: Bills and losses

14 paise/minute

What is it? The least possible retail price for calls according to leading mobile players Bharti Airtel, Vodafone India and Idea Cellular.

Why is it important? Telecom Regulatory Authority of India (Trai) has rejected the claim. This puts a spanner in the works of embattled telecom players. They had rallied around to protest call charges lower than the interconnect charge of 14 paise a minute. This is paid by the operator on whose network a call originates to the recipient network operator. At the centre of the storm is Reliance Jio, whose pricing is being termed as predatory as its ‘free’ consumer offers involves paying other networks the interconnect charge. It has ardently lobbied for dropping of even the interconnect charges to be able to price its products even lower. But it would hit the income of other networks for connecting Jio’s calls.

Tell me more: Trai will present its argument of rejecting interconnect charges as the minimum retail price to the Telecom Disputes Settlement and Appellate Tribunal this week.

 

213 megawatts

What is it? India’s net exported power in April-February, 2017, turning it into a net exporter for the first time since exports began the mid-80s.

Why is it important? Even as states like Bihar continue to reel from scarce power supply, India turns net exporter, after commissioning new power lines through parts of Bihar, Uttar Pradesh and Nepal. It exported 5,798 megawatts to Nepal, Bangladesh and Myanmar, and imported 5,585 megawatts from Bhutan.

Tell me more: India started exporting electricity in the mid-80s but remained a net importer so far. More cross-border linkages with higher voltage will raise the quantity.

 

4

What is it? The number of money bills, part the last GST-related statutes batch, passed by the Lok Sabha on Wednesday, during the ongoing budget session of the Parliament.

Why is it important? The seminal tax reform, Goods and Services Tax, could now see the light of day as early as July 1, across India. GST will create a uniform indirect tax structure and making the states and Centre equal stakeholders in it through the GST council. With the last four bills — central GST bill, the integrated GST bill, the Union Territory GST bill, and the GST (compensation to states) bill — passed by the lower house, the Rajya Sabha has 14 days to make recommendations only on the laws (money bills).

Tell me more: Between April and May, the GST council will have to categorise goods and services in the four taxation slabs for GST — 5%, 12%, 28% and 28%.

 

5

What is it? The number of amendments with which the finance bill was passed in Rajya Sabha.

Why is it important? The amendments included those relating to additional powers to income tax officials and political funding by companies. These moves by the government were not only criticised for giving too much power to tax officials and reducing transparency, they were also criticised for using Finance Bill to pass far reaching reforms. Rajya Sabha has limited power over Money Bill, it can suggest changes, but Lok Sabha need not accept them. BJP has a majority in Lok Sabha.

Tell me more: Three amendments were moved by Digvijaya Singh of Congress and the remaining two by Sitaram Yechury of CPI(M)

 

Rs 12,000 crore

What is it? The projected loss to automobile sector, including manufacturers and dealers, if the sale of BS-III (those complying to Bharat Stage 3 emission norms) vehicles are stopped from April.

Why is it important? Supreme court banned the sales of all the BS-III vehicles effective April, saying emissions from these vehicles impact the health. Manufacturers still have 8.24 vehicles that comply to BS-III norms, and junking them would result in the losses. However, the Supreme Court said the deadline was set 6 years ago, and the industry was given enough time to prepare for the transition. The vehicles in stock include 96,724 commercial vehicles, 6,71,308 two-wheelers, 40,048 three-wheelers and 16,198 cars. They are now rushing to clear these inventories now.

Tell me more: BS III corresponds to Euro III norms. BS IV – corresponding to Euro IV – is slated to be imposed from April 1st 2017, and BS VI, with even higher standards is expected to come into force by 2020.

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