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Roadmap for Financing for India (Behind Infra Lines)

Roadmap for the next phase of growth

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The efficiency in the financial management of government resources deserves more attention. Pixabay

As India celebrated its 73rd Independence Day, the roadmap for the next phase of growth is of prime importance and much interest across the spectrum. While the details are being debated upon, the three focus areas of greater details on the financing of new investments, efficient allocation of government funds and innovative steps around the privatisation of government assets deserve increased attention.

Greater clarity must emerge around the actual financing path of the large-scale investments that the government plans to undertake to boost investor sentiment. For instance, the “Jal Shakti Abhiyan” on the creation of water assets in India is a well-thought-out and vital idea. As various estimates will emerge in regarding the total investment required, concurrently more significant details must start appearing about how exactly the multiple components such as access to piped water, river linking and water conservation projects of the much-required and ambitious water projects will be delivered.

Financial details, as discussed above, are essential since not all projects will have financial viability utilising project generated cashflows, and perhaps certain large projects will have significant economic value with no cashflows at all. Therefore, a clear roadmap that lays out the financing plan in terms of investments, revenue generation and sources of financing is vital. As more important details regarding the sources, utilisation and timelines emerge regarding the large-scale infrastructure projects, investor sentiment will get a significant boost. A gradual but detailed delineation of the financing path will both provide related sectors with a good idea of the capital inflow
and more importantly allow investors to brace themselves for imminent opportunities.

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As per GST law implemented in 2017, the coal cess is to be utilised for compensating states for revenue loss. Pixabay

As the clarion call for higher government spending, tax-cuts and rebates picks up momentum to boost the economy, the efficiency in the financial management of government resources deserves more attention. True, that asset monetisation, greater tax compliance, and privatisation are all essential elements of the investment scenario, better efficiency in utilising available government funds is as important. For instance, of the funds collected through the coal cess, amounting to RS 86,440 crore between 2010 and 2018, approximately Rs 29,645 crore has been transferred to the National Clean Energy Fund (NCEF) and the rest is sadly idling.

As per GST law implemented in 2017, the coal cess is to be utilised for compensating states for revenue loss. Now a well-thought-out policy is needed to balance out both the requirements that are of importance. While some stakeholders have strongly advocated the utilisation of coal cess only for financing a clean energy transformation for India, a balanced approach that also understands the importance of stable state financing for growth is needed. The critical lesson from the unused coal cess is that greater clarity about the utilisation of government resources to achieve intended outcomes is as crucial as levying the cess. As India looks to garner huge investments, especially in a high-energy consuming economy, the utilisation of available funds is as important as identifying new sources of finances.

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The talk around asset monetisation and listing of assets has been in the news of late and is a topic of prime importance. Pixabay

The talk around asset monetisation and listing of assets has been in the news of late and is a topic of prime importance. Recent news suggests that the government might consider listing Airports Authority of India (AAI). While this is the right thing to do to unlock value and much-needed capital, India also needs to look far beyond and innovate further by considering whether instead of AAI, the listing of individual airports or a pool of airports is possible. The aim must be greater clarity and transparency around the listing process that listing individual airports, or a pool of such airports might provide, in addition to kickstarting a process of listing valuable government assets to generate capital.

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Perhaps the most critical aspect of the listing process besides the details of the assets being listed is the fund utilisation from the proceeds that accrue to the government. A transparent method of the implementation of bespoke asset listing, fund utilisation and management of the listed asset will be needed for the listing process to flourish. Another important point that needs to be kept in mind is that the process being utilised for the listings must create a template that can be both used and improved upon to be applied to other sectors of the economy. As India looks to boost the economy, the country needs a roadmap that lays out the source, path and utilisation of capital. The positive multiplier effect on private investment, incomes and consumption that such a roadmap can provide is vital for the next phase of growth. (IANS)

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The Challenges, Growth and Prospects of Olive Oil Industry in India

Discussing the growth, prospects of olive oil in India

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Olive oil
For the first time in the country, experts in India will hold a panel discussion about the olive oil industry. Pixabay

BY PUJA GUPTA

For the first time in the country, experts in India will hold a panel discussion on the challenges, growth and prospects of the olive oil industry on the 13th of December at PHD Chamber of Commerce & Industry.

Rahul Upadhyay, President and Akshay Modi, Vice-President at The Indian Olive Association (IOA) will be hosting the Annual Public at the Lakshmipat Singhania Auditorium. The session will discuss the transition of olive oil from being a foreign oil to a homegrown oil with which the citizens of India can now reckon with.

The panel moderated by senior food and travel writer Rupali Dean will spearhead the session on Olive Oil In India-2.0. The panel of speakers will include noted restaurateurs, chefs, nutritionists, food researchers and biologists, entrepreneurs, retailers, food, health and fitness experts.

Olive oil india
The Indian Olive Association focuses on the problems confronting the emerging sector of olive oil and table olives in India. Pixabay

Upadhyay said, “The Indian Olive Association focuses on the problems confronting the emerging sector of olive oil and table olives in India. With Annual Public Session, we attempt to bring together the doyens from the food and health industry to discuss the problems and offer solutions that will accelerate the growth of olive oil in India.”

Akshay Modi, Vice-President at The Indian Olive Association (IOA). “The Annual Public Session is a platform that brings together all the diverse stakeholders to speak a unified voice for the greater good of the category of olive oil in India.”

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The Indian Olive Association (IOA), the national apex association of olive oil producers, growers, distributors, importers, users and consumers in India works to promote consumption and expand the market for olive oil and table olives. The association focuses on the problems confronting this emerging sector in India. Macro-economic factors like GST, Import Duty and issues with respect to the import of both table olives and olive oil are taken up by IOA with multiple authorities to streamline the import process and ensure a steady growth for this category. (IANS)