Around the market.

Several challenges to GPS-based tolling plans

Several challenges to the government's plan to implement a GPS-based tolling system on highways to ensure easy payment and vehicular movement on national highways have raised concerns and delayed its launch. Ministry of Road Transport is discussing this issue. A GPS-based tolling system, which will replace u FASTags, is proposed to end the role of toll plazas. The new system will require geo-fencing of highways which will then use Global Positioning System (GPS) or Radio Frequency Identification (RFID) to create a virtual geographic boundary. The Ministry of Road Transport has amended the National Highway Fees (Determination of Rates and Collection) Rules, 2008 to allow for toll-free collection based on the distance traveled by a vehicle on national highways. This will facilitate introduction of GPS based tolling system.

States' debt reached record highs

The total debt accumulated by state governments and Union Territories has reached a record high during the financial year 2022-23, with states like Tamil Nadu, Uttar Pradesh, Maharashtra, West Bengal and Rajasthan recording huge year-on-year increases in their liabilities. According to the latest data released by the government, Tamil Nadu has reduced its debt by Rs. 6320320 crores was increased. Similarly, during 2022-23, the debt of Uttar Pradesh increased to Rs. 710,210 crores. Maharashtra's debt during 2022-23 increased to Rs. 680,357 crores. West Bengal's net liabilities in 2022-23 increased to Rs. 608,313 crores. During this time the net debt of Rajasthan increased to Rs. 537,013 crores. Interestingly, Odisha was the only state to spend Rs. 129,356 crore in 2022-23 from its liabilities to Rs. 113,856 crore was reduced. Other states that increased their debt during the last financial year include Andhra Pradesh (Rs 442,442 crore), Gujarat (Rs 423,711 crore), Kerala (Rs 390,860 crore).

Rs. 2.09 lakh crore bad loan write off

Banks during the year ended March 2023 Rs. 2.09 lakh crore (about 25.50 billion US dollars) bad loans were written off, which in the last five years the total loan by the banking sector is Rs. 10.57 lakh crore (about 129 billion dollars), the Reserve Bank of India (RBI) said in response to an RTI. In March 2023, this huge loan write-off was done to bring down gross non-performing assets or loans defaulted by borrowers to a 10-year low. The gross NPA of banks had decreased from Rs 10.21 lakh crore to Rs 1520 lakh crore by March 2023. However, one thing to note is that the loans written by the banks will remain as uncollected loans in the books of the banks. Banks have recovered only Rs 109,186 crore of loans of Rs 586,891 crore in the last three years, indicating that they have been able to recover only 18.60 per cent write-off during the three-year period. Total defaulted loans (including write-offs but excluding loans recovered from write-offs within three years) amounted to Rs. 10.32 lakh crores. Including write-offs, the total NPA ratio would have gone up to 7.47 per cent of advances, against 3.9 per cent reported by banks.

Small farmers need more funds for mechanization

The parliamentary panel in its report said that the government should increase investment in research and development for agricultural mechanization especially for small and marginal farmers as it plays an important role in increasing agricultural production and productivity. According to the report, between FY20 and FY23, the Ministry of Agriculture allocated 30 percent less funds for research and development for the Agricultural Mechanization Scheme. The Department of Agriculture should impress upon the Ministry of Finance about the need of the hour to invest money in IGH for farm mechanization as it plays a key role in improving agricultural production and productivity.

Reduction in India's trade deficit with Australia

The India-Australia Interim Free Trade Agreement (FTA), in force for six months, has reduced India's trade deficit with Australia by 15 per cent on the back of increased exports of medicines, electrical machinery and iron and steel products. India's exports to Australia fell more than 32 percent in the five months to May from a year ago, while imports fell 25 percent, resulting in a trade gap of $3.87 billion, down 15 percent from a year earlier, according to official data. is Excluding the energy basket, such as oil and coal, trade figures show that India's exports grew by 3.3 percent during the period.

490 cases of fraud related to NPA

Directorate of Enforcement under the provisions of Prevention of Money Laundering Act, 2002 in the last five years Rs. 490 bank fraud cases related to non-performing assets (NPAs) of Rs 20 crore or more have been registered, till July 20, approximately Rs. 26,732.68 crore has been attached/frozen, 82 persons have been arrested, 80 prosecution complaints have been filed before the PMLA, Minister of State for Finance Bhagwat Karde said in a written reply in the Rajya Sabha that in this case, Rs. 15,113 crore assets have been seized and reinstated as NPAs in public sector bank accounts.

Outstanding credit to MSME sector is Rs. 20.11 lakh crore increased by 12 percent

Outstanding credit to the MSME sector by scheduled commercial banks in FY 2022-23 increased by 12.3 percent to Rs 22.6 lakh crore from Rs 20.11 lakh crore in FY22, according to the data, outstanding in FY2021 and FY2020 respectively. . 17.83 lakh crore and Rs. 16.13 lakh crores. During the five-year period, outstanding credit to the MSME sector stood at Rs. 15.10 lakh crore has increased by 49.6 percent. According to Reserve Bank of India's latest sectoral deployment data, under priority sector lending Rs. 20.20 lakh crore bank credit-Rs. 14.5 percent of India's total non-food bank credit worth Rs 138.5 lakh crore was deployed in the MSME sector in May 2023.

Relief to SpiceJet...free from surveillance

SpiceJet Airlines, which has been facing multiple difficulties, was recently placed under surveillance. Spice Jet was placed under increased surveillance in view of past observations of inadequate maintenance and incidents during the monsoon season last year. 51 spot checks were conducted at 11 locations across India on the company's fleet of Boeing 737 and Bombardier DHC Q-400 aircraft, where a total of 23 aircraft were inspected and 95 observations were made. These findings were routine in nature and were not considered significant. Adequate maintenance measures were taken by the airline to maintain the findings as per DGCA guidelines. As a result SpiceJet was removed from the surveillance regime by the DGCA.