Plan and Policy

Plan & Policy

Govt mulls credit guarantee, interest subsidy on loans for electronic manufacturers

The government is considering credit guarantee for term loans of up to Rs 100 crore as well as interest subsidy on loans up to Rs 1,000 crore for electronic manufacturing companies under the new policy in works.

According to official sources, the Ministry of Electronics and IT has proposed "credit guarantee fund" (CGF) scheme and "interest subvention scheme" (ISS) to boost electronics manufacturing ecosystem in the country under new National Policy on Electronics in works.

Automakers staring at production stoppage due to curbs on steel imports: Siam

Automobile industry body SIAM Monday said vehicle manufacturers are staring at production stoppage if there is no resolution of the issues over restrictions imposed on domestic manufacturers using imported steel. Last month, the government had extended the deadline for automobile makers to use Bureau of Indian Standards (BIS) certified locally produced high-grade steel till February.

December retail inflation drops to 18-month low

Continued decline in food prices pulled down retail inflation to an 18-month low of 2.19 per cent in December 2018, creating headroom for the RBI to cut interest rate in its monetary policy review next month.

Ananth Narayanan resigns from Myntra

After months of speculations, Ananth Narayanan has decided to step down as CEO of Myntra and Jabong.  Amar Nagaram, who was vice president, consumer shopping experience of Flipkart has been named as Head of Myntra and Jabong and he will be reporting to Kalyan Krishnamurthy, CEO of Flipkart Group.

Coming soon: Kalia to ease farm distress

As the Centre weighs various options to boost farmer’s income, the mandarisn have hit upon the farmer livelihood scheme, Krushak Assistance for Livelihood and Income Augmentation, or Kalia, announced by the Odisha government. The scheme may be launch nationwide in a new avatar well before the start of the election process.

Finmin for caution on Mudra loans without stifling credit

In order to dispel fears about a build-up of bad loans in Mudra loan schemes, the finance ministry is likely to ask banks to take the usual precautions on disbursals of such loans to the refinancing agencies, but by ensuring that lending to the targeted beneficiaries are not choked.

Identified challenges in revival

The challenges facing BSNL can be classified into three major heads:

1. Technological/ market: These include the rapid evolution of technology (5G, IOT), fast evolving consumer needs of data consumption, changing demographics patterns and increasing role of content in driving businesses. Such a combination of technology/market characteristics requires organisations to have agility, build partnerships, reduce costs,

Suggestions by IIM-A for restructuring BSNL

While not completely within the purview of the IIMA MOU for this project, our analysis suggests that the government and DoT need a more refined policy on the sector structure and mergers in the sector. This is more relevant when number of effective operators reduce from 4 to 3. Other key initiatives include review of MTNL and its relationship to BSNL and articulating the role of a public telecommunication service provider in the current context.

The key areas for transformation of BSNL.

Transformational steps to revive BSNL

With mounting losses and almost fading chances of any survival with competition heightening up after Reliance Jio's entry, the Department of Telecom mandated IIM- Ahemdabad to give a report on the PSU's road map for survival. The report has been coordinated by Prof Rekha Jain and prepared by Prof Vishal Gupta and Prof Ajay Pandey of IIM-A . Here is the executive summary of the report.

Executive summary

The Indian telecom sector has gone through consolidation and has a high degree of rivalry , especially with the entry of Reliance‘Jio’.