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Political update – Winter session of parliament
The winter session of the parliament is set for a fresh start today, as yesterday’s
opening session ended up in troubled waters, driven by disruptions led by various
political parties. The winter session is of prime importance as far as market
sentiments are concerned, as policy making initiatives will weigh on certain key
sectors of the economy. Thirty-one bills are lined up for approval, some of which
can have hot-n-sour effects to the economy.
Key bills for consideration and passage include:
Pension Fund Regulatory and Development Authority Bill, 2011
The bill aims to establish a statutory Pension Fund Regulatory and Development
Authority (PFRDA) to promote old age income security by establishing, developing
and regulating pension funds and to protect the interests of subscribers to schemes
of pension funds. The union cabinet recently allowed 26% FDI in pension fund.
National Food Security Bill, 2011
The UPA-II legislation of UPA-II seeks to cover up to 75% of the rural population
and 50% of urban households, proposing a right to seven kilograms of food grain
per person, at `3 per kg for rice, `2 per kg for wheat and `1 per kg for coarse
grain to priority beneficiaries. It also aims at revamping the public distribution
system, which provides subsidized ration to the beneficiaries. The bill also
incorporates provision for free meals, besides a monthly allowance of `1,000 for
six months to all pregnant women and lactating mothers. However, the move
could add to the government’s burden on finances, as the implementation of the
proposed law would lead to a rise in the Food Subsidy Bill to over `100,000cr
from the current `60,000cr.
The Mines and Minerals (Development and Regulation) Bill, 2011
This bill is to be introduced which proposes to set up a benefit sharing regime for
mining companies. The bill makes it mandatory for coal miners to share 26% of
their profit after tax with project-affected people. Furthermore, the draft bill
proposes that companies mining other resources (such as limestone, iron ore,
copper and bauxite) should pay amount equivalent to 100% of the royalty on their
production to the local population of the project site.
On the policy front, a crucial cabinet meeting to consider FDI in multi-brand retail
will also be on the investor’s radar. The proposal before the government to allow
FDI in the multi-brand retail sector has swayed the political opinion – many
opposition parties including BJP are strongly opposing it. Opposition parties firmly
foresee fatal effects, including huge unemployment and wiping of small and
mid-scale retailers.
Markets will closely track the developments on the economic policies and look for
positives cues from the parliamentary round-tables.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Political update – Winter session of parliament
The winter session of the parliament is set for a fresh start today, as yesterday’s
opening session ended up in troubled waters, driven by disruptions led by various
political parties. The winter session is of prime importance as far as market
sentiments are concerned, as policy making initiatives will weigh on certain key
sectors of the economy. Thirty-one bills are lined up for approval, some of which
can have hot-n-sour effects to the economy.
Key bills for consideration and passage include:
Pension Fund Regulatory and Development Authority Bill, 2011
The bill aims to establish a statutory Pension Fund Regulatory and Development
Authority (PFRDA) to promote old age income security by establishing, developing
and regulating pension funds and to protect the interests of subscribers to schemes
of pension funds. The union cabinet recently allowed 26% FDI in pension fund.
National Food Security Bill, 2011
The UPA-II legislation of UPA-II seeks to cover up to 75% of the rural population
and 50% of urban households, proposing a right to seven kilograms of food grain
per person, at `3 per kg for rice, `2 per kg for wheat and `1 per kg for coarse
grain to priority beneficiaries. It also aims at revamping the public distribution
system, which provides subsidized ration to the beneficiaries. The bill also
incorporates provision for free meals, besides a monthly allowance of `1,000 for
six months to all pregnant women and lactating mothers. However, the move
could add to the government’s burden on finances, as the implementation of the
proposed law would lead to a rise in the Food Subsidy Bill to over `100,000cr
from the current `60,000cr.
The Mines and Minerals (Development and Regulation) Bill, 2011
This bill is to be introduced which proposes to set up a benefit sharing regime for
mining companies. The bill makes it mandatory for coal miners to share 26% of
their profit after tax with project-affected people. Furthermore, the draft bill
proposes that companies mining other resources (such as limestone, iron ore,
copper and bauxite) should pay amount equivalent to 100% of the royalty on their
production to the local population of the project site.
On the policy front, a crucial cabinet meeting to consider FDI in multi-brand retail
will also be on the investor’s radar. The proposal before the government to allow
FDI in the multi-brand retail sector has swayed the political opinion – many
opposition parties including BJP are strongly opposing it. Opposition parties firmly
foresee fatal effects, including huge unemployment and wiping of small and
mid-scale retailers.
Markets will closely track the developments on the economic policies and look for
positives cues from the parliamentary round-tables.
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