As the government looks to improve relations with the UK, India is thinking of settling its long-standing demand for billions of dollars in past-due fees from Vodafone Group Plc’s struggling local business once and for all, according to people familiar with the situation.
As per various media reports, a compromise on the principle and a waiver of interest and penalties might resolve the financial issue worth around 2 trillion rupees ($22.5 billion). According to the reports, officials are working on the framework and considering ways to make sure that any agreement won’t lead to legal challenges from other telecom companies that owe money.
Vodafone Idea Ltd. has been plagued by the arrears and hasn’t posted a quarterly profit since 2016. According to the people, a settlement might open the door for the third-largest telecom provider in India to draw in new investors.
Free Trade Agreement Between India and UK
New Delhi will especially profit from strengthening connections between the UK and India, which just inked a free trade agreement, at a time when ties with the US have worsened following President Donald Trump’s return to the White House. The argument for giving priority to already-thriving partnerships is further supported by the fact that attempts to restore relations with neighbouring China are barely getting started.
Reports further stated that the endeavour is even more urgent because British Prime Minister Keir Starmer is expected to visit India this week. The local branch of the British company and Idea Cellular Ltd., owned by billionaire Kumar Mangalam Birla, merged to establish Vodafone Idea.
By strengthening the UK’s position as a partner, its revival would benefit India internationally and assist in maintaining competition in the nation’s telecom industry.
Indian Government’s Strong Support to Vodafone
Through a debt-to-equity swap this year, the Indian government acquired a 49% stake in Vodafone Idea and has openly recognised the need for a solution. Last month, a government lawyer informed the Supreme Court that since public funds are already invested in the carrier, “some solution may be required.”
India’s yearly adjusted gross revenue (AGR), of which a portion is paid in licence and spectrum fees, is the subject of the dispute. Even though telecom companies have been contesting the approach for years, if the government changes its position, the court might be more accommodating this time.
Since the Tata Group’s wireless carrier and Sunil Mittal’s Bharti Airtel Ltd. have also been requesting relief, officials will undoubtedly need to make sure that all telecom operators receive equitable treatment during the AGR relief process. To ensure that Vodafone Idea isn’t given an unfair edge over competitors, one idea being discussed is to ask all operators to offer revival plans in exchange for any concessions.
Quick Shots
•India considers settling Vodafone
dues dispute worth ₹2 trillion ($22.5 billion) to strengthen ties with the
UK.
•Possible settlement could include
waiver of interest and penalties to resolve the long-standing AGR issue.
•Vodafone Idea, India’s
third-largest telecom operator, hasn’t posted a profit since 2016.
•Move comes ahead of UK PM Keir
Starmer’s visit to India this week.
Bharat Electronics Limited (BEL) and Larsen & Toubro (L&T) have partnered strategically to support the Indian Air Force’s Advanced Medium Combat Aircraft (AMCA) development.
The consortium intends to respond to the Government of India’s (GoI) Aeronautical Development Agency’s notice of expression of interest within the next few weeks. In order to jointly contribute to India’s fifth-generation fighter aircraft, the alliance will make use of BEL’s experience in defence electronics and systems and L&T’s proficiency in creating strategic defence and aerospace platforms.
In keeping with the GoI’s goal of an Atmanirbhar Bharat, the partnership represents a critical turning point in the development of India’s defence capabilities. According to a statement from L&T, the alliance aims to provide a state-of-the-art, superior solution by fusing the strengths of the two top defence technology suppliers.
L&T and BEL Playing Strong on Defence Indigenisation
L&T and BEL had already contributed significantly to India’s domestic Light Combat Aircraft programme by creating mission-critical avionics and electronic systems and supplying significant aerostructure modules.
The consortium will build on this history by contributing demonstrated knowledge and a dedication to providing the Indian Air Force with top-notch defence and aerospace platforms on schedule.
The cooperation with BEL represents a major step forward in L&T’s dedication to modernising India’s defence capabilities, according to remarks made by S N Subrahmanyan, chairman and managing director of L&T. It is a privilege for L&T and BEL to collaborate on providing the Indian Air Force with cutting-edge technologies. As leaders in their fields, the two organisations’ combined efforts will be vital to strengthening national security and promoting defence technology self-reliance.
India’s expanding defensive technology capabilities are exemplified by the AMCA project. In order to achieve this goal, BEL’s partnership with L&T is essential.
Manoj Jain, the chairman and managing director of BEL, went on to explain that working with L&T is an essential step in achieving this goal. With BEL’s defensive electronics experience and L&T’s engineering and systems integration skills, the companies are sure to provide the Indian Air Force with a top-notch solution that will last for many years.
Quick
Shots
•The consortium will respond to ADA’s
Expression of Interest (EoI) in the coming weeks.
•Collaboration leverages BEL’s
expertise in defence electronics and L&T’s strength in aerospace and
strategic defence platforms.
•Partnership aligns with the
‘Atmanirbhar Bharat’ vision for defence indigenisation.
•Both companies have previously
contributed to India’s Light Combat Aircraft (LCA) programme.
•The alliance aims to deliver
advanced, high-quality solutions to the Indian Air Force on time.
A trade deal worth an estimated £6 billion was signed by Keir Starmer and his Indian counterpart, Narendra Modi. The UK prime minister hailed the momentous accord as a “historic day” for Britain and India.
Following more than three years of negotiations, the trade agreement will significantly lower tariffs on automobiles and whisky sent by British companies to India in exchange for Britain opening up its labour market to Indian workers.
The bilateral agreement, which will reduce the average tax on Indian imports from Britain from 15% to 3%, is regarded as one of the most beneficial of its kind to the UK economy. It is anticipated that the agreement will eventually increase bilateral trade between the two nations by £25.5 billion annually.
Key Terms of the UK-India Trade Agreement
The agreement, which was first announced in May, will reduce about 90% of all tariffs on UK-made goods transported to India, and within ten years, 85% of tariff lines will have no trade duties at all. UK-made whisky and gin import duties will be cut in half, to 75%, right away, and then reduced to 40% over the course of the following ten years.
In a similar vein, British automakers will have their export duties reduced from 110% to 10% over the same time period. However, similar to the UK’s previous trade agreement with the US, quotas will be imposed to limit the quantity of cars eligible for the reduced tax. Starmer praised the agreement as potentially having “huge benefits to both of our countries” during a press conference held at Chequers, the prime minister’s opulent country home.
He added, “The UK-India deal is now signed, sealed, and ready to be delivered.” “I’m really pleased and privileged to welcome you here today on what I consider to be a historic day for both of our countries and the delivery of the commitment that we made to each other,” he said.
Labour Mobility and Payroll Tax Controversy
However, political rivals have cautioned that a deal to eliminate employer national insurance for Indian employees in the UK and vice versa runs the risk of undercutting British employees and eroding any financial gains.
The agreement will exempt British companies from paying payroll taxes on Indian employees who transfer within the UK, raising concerns that, in light of the April increase in UK national insurance, hiring Indian employees would be more desirable than hiring UK employees.
Financial Sector Left Out of Trade Gains
Although both nations committed to keep working to reduce economic barriers to the city’s linkages with the quickly expanding Indian economy, the accord has also come under fire for failing to make any headway in the UK’s world-class financial and professional services industries.
“This isn’t just paving the way for economic partnership but also a blueprint for our shared prosperity,” Modi remarked as he stood next to Starmer. The agreement marked “the dawn of a new golden era in the relationship between these two vibrant nations,” according to Amarjit Singh, founder and CEO of the India Business Group.
“This partnership goes beyond conventional ideas of trade in today’s more interconnected yet complex global landscape; it embodies a collaborative effort to shape a sustainable and prosperous future together,” he continued. “It is now the business community’s responsibility to take advantage of these opportunities and implement the framework in tangible ways.”
According to media reports, the union administration intends to introduce an incentive programme later this year to promote the recycling of 24 essential minerals, such as cobalt and lithium. According to a media outlet, the sops can be in the form of production-linked incentives (PLI) or “subsidies on capital expenditure”. The plan aims to increase India’s capacity to recycle lithium-ion batteries and is expected to run for four to five years. The National Critical Mineral Mission (NCMM), which has a total budget of INR 16,300 Cr, was approved by the Union Cabinet in January of this year. Accordingly, 24 minerals have been designated by the government as “critical” to achieving the nation’s net zero greenhouse gas emissions goals by 2070. Additionally, INR 1,500 Cr has been allocated by the mission to provide incentives for the establishment of recycling facilities. To uncover India’s vital mineral reserves, VL Kantha Rao, the secretary in the ministry of mines, made a pitch on April 8 for an exploration licence regime.
Empowering Private Entities
“Such a policy shift would shift the focus from passive ownership to active exploration,” Rao said at an event in New Delhi. He also added that the regime will “empower” private entities to conduct large-scale early-stage exploration for minerals like lithium and platinum group elements (PGEs), among others. Sanjay Lohiya, the ministry’s additional secretary, also affirmed that the government was committed to fostering an exploration ecosystem that was competitive, technologically advanced, and investment-friendly. The remarks take place when the Centre is making every effort to acquire vital minerals required for the switch to green energy. These metals, which are utilised in solar panels, semiconductors, cell phones, and electric vehicle (EV) batteries, are the fundamental components of contemporary technology.
Expanding India’s Capacity to Recycle Lithium-ion Batteries
The programme should contribute to increasing India’s annual lithium-ion battery recycling capacity from the present 75,000 metric tonnes. In February, the government eliminated customs duties on the trash and scrap of twelve essential materials, such as lithium-ion batteries and powdered lead, zinc, and cobalt, in an effort to increase availability. Some of these are necessary for the development of electric vehicles, which India is attempting to promote in order to lessen its dependency on fossil fuels. Although they only made about 2.5% of the 4.3 million cars sold in India in 2024, EV sales increased by 20% compared to just 5% for the entire auto industry. Due mostly to new launches, analysts predict that sales will quadruple to over 200,000 in 2025.
Possession of land has always been and continues to be, viewed as an indication of social status and authority. The pursuit of more territory has been the cause of numerous conflicts and the downfall of many empires throughout history. On the one hand, land has been vital to human advancement since it has been utilized to construct homes, houses of worship, and institutions like schools and factories. Conversely, this highly sought-after organization has been the subject of several scandals, frauds, and property disputes. With a total area of almost 32,87,590 square kilometers, land becomes even more important in a nation like India. The most land owned in India belongs to the government, followed by major entities like the Indian Railways and large corporate groups.
The fundamental inquiry is whether there is sufficient land to accommodate all individuals or even a single individual. It seems not.
Here is a list of the biggest landowners in India, ranked by size and assumed worth, to give you a general impression.
The Indian government owns more land than any other entity in the nation. Over fifty-one Union Ministries and eleven hundred and sixty-six public sector firms in India have disclosed ownership of at least 15,531 square kilometers of land to the Government Land Information System (GLIS) website as of February 11, 2021. Land ownership rights, geo-positioning maps, and total land area can be found in the GLIS, a centralized database system developed by the Ministry of Electronics and Information Technology and administered by the Prime Minister’s Office. The government of India is the largest land owner in India as it owns most land in the country.
Indian Armed Forces
Landowner
Indian Armed Forces
Total Land Ownership
17.99 lakh acres (approx 7280.29 sq km)
Biggest Landowners in India – Indian Armed Forces
According to the Directorate General of Defence Estates, the Ministry of Defence owns 17.99 lakh acres making it one of the biggest land owners in India. Curiously, just 1.61 lakh acres of land can be found within the 62 cantonments that have been notified making it one of the biggest land holders in India. Including difficult terrains, the remaining 16.38 lakh acres are distributed among 4900 pockets across India. Sites such as field fire ranges, training areas, and defense establishments are located outside of cantonments.
As of March 31, 2022, the Indian Railways owns a total of 4.86 lakh hectares of land. The Northeast Frontier Railway zone, which is headquartered in Assam and spans certain districts of eastern Bihar and northern West Bengal, has the greatest landholding at 48,357.51 hectares. Northern Railways and Southeastern Railways follow with 44,005.53 and 42,850.92 hectares, respectively and are among the top 3 landholders in India.
Church Properties
Landowner
Catholic Church
Total Land Ownership
17.29 crore acres
Biggest Landowners in India – Church Properties
Among the biggest non-governmental landowners in India, the Catholic Church is a prominent figure. The church acquired territory mostly through the Indian Churches Act of 1927, which transferred land for the propagation of Christianity. It functions through a network of trusts and charity societies. Seven crore hectares, or 17.29 crore acres, of land in India is supposedly owned by the Catholic Church which makes it one of the highest landowners in India. Churches, universities, and schools sit on these pieces of land, which are worth an estimated Rs 20,000 crore altogether and is one of the top 5 largest land owner in India.
The Waqf Act of 1954 established independent agencies called Waqf boards to oversee Muslim-owned properties. Muslims make up a significant religious minority. Muslim kings typically donated or built these sites, which include madrasas, graveyards, graves, and mosques. Owning about 610,000 immovable properties throughout multiple states in India, Waqf Properties are said to be worth lakhs of crores of rupees, yet the state has no say in how they are managed. With a holdings of almost 6 lakh acres, Waqf Properties are the third-biggest landowner in India.
Godrej & Boyce’s nationwide land holdings remain a mystery, yet the Group is thought to possess over 3,400 acres in Vikhroli, a suburb of Mumbai located in the eastern part of the country. The 14 business divisions of unlisted Godrej & Boyce, which generated INR 14,573.9 crore in sales in FY23, encompass consumer appliances, storage and security solutions, electrical and electric motors, and more. Its production facilities are located in four different Indian states: Gujarat, Uttarakhand, Punjab, Tamil Nadu, and Maharashtra. A statement from Crisil, a rating agency, states that the business earned approximately INR 300 crore in rent in 2023 from the leasing of its commercial real estate. Godrej properties is said to one of the largest land owners in India.
When Chaudhary Raghvendra Singh established DLF in 1946, he began by establishing 22 urban colonies in Delhi. When the firm first set up shop in the relatively uncharted area of Gurugram in 1985, it was to provide first-rate housing and office facilities for the emerging class of Indian global professionals. Across 15 states and 24 cities, DLF manages residential, commercial, and retail properties, making it the largest publicly listed real estate company in India today. DLF’s net profit recently increased 27% year-on-year to INR 655.71 crore, thanks to stronger income and fewer expenses.
L&T Realty
Landowner
L&T Realty
Founder
Anupam Kumar (CEO and MD)
Founded
2007
Website
lntrealty.com
Products
Residential buildings, Commercial Complex, Township, Retail
Biggest Landowners in India – L&T Realty
Among the real estate developers in India, L&T Realty is a trendsetter and was established in 2011. It is the real estate part of Larsen and Toubro, which is a $33 billion company. The company is currently active in Mumbai, Navi Mumbai, the National Capital Region (NCR), Bengaluru, Hyderabad, and Chennai. Its broad portfolio encompasses residential, commercial, and retail developments that total 6.50 million square meters, which is equivalent to 70 million square feet. It is one of the India’s biggest landowners.
Indiabulls Real Estate
Landowner
Indiabulls Real Estate
Founder
Sameer Gehlaut
Founded
2006
Website
indiabullsrealestate.com
Products
Residential, Commercial, SEZ Projects
Biggest Landowners in India – Indiabulls Real Estate Limited
One of the major real estate businesses in India, Indiabulls Real Estate Limited has a well-diversified presence in residential real estate development across the spectrum, from inexpensive to mid-income to premium to super-luxury space. In addition to having 17 ongoing projects with a total saleable area of 12.4 million square feet, the company is one of the largest real estate companies in the world. As of the 31st of March in 2023, the company had a gross development value of Rs 30,130 crore and a net worth of Rs 6,740.23 crore. Additionally, it is currently in the process of constructing a commercial complex that will have a leasable area of 25.5 million square feet. In addition, the company owns a land bank that spans 1,846 acres and 1,424 acres of special economic zone property in Nasik, which is located in the state of Maharashtra.
In addition to the National Capital Region, Prestige Group has a presence in cities such as Bengaluru, Chennai, Hyderabad, Mangaluru, Kochi, Kozhikode, Goa, Ooty, Mumbai, and Pune. The company was established in 2016. To date, the group has completed around 288 real estate projects, which encompass a total area of approximately 172 million square feet, and is now one of the biggest landowners in India. These projects include residential developments, such as apartment complexes, row houses, and villas, as well as commercial developments, such as offices, technological parks, special economic zones plotted development, retail, and hospitality. There are currently 56 existing projects totaling around 86 million square feet that are in various phases of development, and there are 43 forthcoming projects that will span approximately 45 million square feet combined.
Conclusion
India’s land resources are at the center of the issues that it will face in the future. From the Land Governance Assessment report published by the World Bank, it is anticipated that by the year 2030, India will require between 4 and 8 million hectares of land solely for residential use. As a result of this increased demand, agricultural land may be subjected to substantial pressure, which may result in social dislocation, food insecurity, inequality, environmental problems, and possibly even violence. Even though the land ecosystem is still being shaped by both government and non-governmental organizations, it is necessary to implement sustainable land management methods to strike a balance between development, environmental preservation, and social fairness.
The Indian government owns more land than any other entity in the nation. Over fifty-one Union Ministries and eleven hundred and sixty-six public sector firms in India have disclosed ownership of at least 15,531 square kilometers of land to the Government Land Information System (GLIS) website as of February 11, 2021.
What are the major products of Indiabulls Real Estate?
The major products of Indiabulls Real Estate include Residential, Commercial, and Special Economic Zone projects.
Who owns most land in India after government?
Indian Armed Forces, Indian Railways, Church Properties, Waqf Properties, Godrej Properties, DLF, L&T Realty own most land in India after government.
According to government sources, public consultations on the draft Digital Personal Data Protection (DPDP) laws are now complete, and the final version could be released in the next eight weeks or so. The draft will not significantly alter anything. There won’t be another extension for receiving the remarks, according to reports. According to a media report, the administration has conducted numerous in-person meetings and received a significant amount of feedback, but no requests for extensions have been made. Officials don’t anticipate significant changes from the previous government publications.
According to the official, several industry concerns around consent management—such as who would be the manager and other issues—as well as concerns with parental control, verifiable parents, and data localisation were received but have since been resolved. The report went on to say that the government will consider all of the concerns and suggestions and conduct a thorough analysis before releasing the final version. Before the final edition, everything needed to be put together, and input from other ministries, departments, and states was sought for any clarifications.
Why MeitY is Conducting Back and Forth Communication?
The official added that MeitY conducted a meeting with Nasscom, a trade association for the software industry, and that their input on “expected lines” would be taken into consideration. The sector requested that MeitY extend the time for comments on the proposed DPDP guidelines from January 3 to February 18. As a result, the deadline was moved to March 5. In August 2023, Parliament passed the DPDP Act, and the regulations were eagerly anticipated. It is also anticipated that the final regulations would provide clarity on the establishment of the Data Protection Board as well as the appointment and terms of service of the Chairperson and other Board members.
Concerns Over Data Transfer
Speaking about data transfer, one of the main issues facing the software industry, Ashwini Vaishnaw, Minister of Electronics and IT, stated that any restrictions on data movement under the DPDP rules will be implemented following stakeholder and committee consultation, as well as external sectoral experts, before a final decision is made. According to his statement, the government will operate in accordance with sectoral requirements because, in some cases, there may be no need for restrictions (on data transfer), while in other cases, such as the financial sector, there may be strict requirements; therefore, before making any decisions, stakeholders will be consulted.
The rules, Vaishnaw previously told a media outlet, were a practical approach to regulation that aimed to strike a balance between innovation, regulation, and citizen rights. According to him, the main goal was to keep the regulations from becoming overly restrictive while still allowing for creativity.
To make matters worse, Ola Electric Mobility has apparently received a notice from the Ministry of Heavy Industries (MHI) for not fulfilling its obligations under the National Programme on Advanced Chemistry Cell (ACC) Battery Storage PLI program. In addition to Ola, the notifications were also sent to Reliance and Rajesh Exports, two other businesses that benefitted from the battery PLI scheme. Ola Electric would be penalised INR 12.5 lakh per day beginning January 1, 2025, until it fulfils its obligations under the PLI scheme, according to a media report. ACC Energy Storage, which bid as Rajesh Exports, and Reliance New Energy Limited (RNEL), owned by Mukesh Ambani, will pay INR 5 lakh every day.
Response from Ola Electric
A representative for Ola Electric responded to the notice by saying that its purpose is to encourage businesses to meet the PLI program’s battery manufacturing goals as soon as possible. According to a senior official quoted in a media report, “The scheme’s goal is not to collect penalties.” The official did add, though, that the businesses are free to argue their case and request a waiver of this rule. Ola Electric has previously declared that it will start producing its cells commercially in Q1 of FY26, and the company is on track to satisfy the deadlines. Under the government’s ACC PLI program, Ola Electric will be the first company in India to produce lithium-ion cells on a commercial basis.
What is PLI Scheme?
With an INR 18,100 Cr budgeted investment, the PLI Scheme seeks to increase indigenous battery manufacturing capacity and lessen dependency on imports. In addition to the incentives, the MHI offered the companies capacities through the PLI Program. Ola Electric agreed to produce advanced chemistry cells for EVs under the ACC PLI project in 2022. The plan prioritises indigenous value addition and global competitiveness in battery manufacture, with a goal manufacturing capacity of 50 GWh. It is important to remember that Ola Electric has benefitted from other government programs like PM E-Drive and FAME-II, which mandate that businesses maintain service centres and offer warranties.
Trouble Continues for Ola Electric
In addition to the aforementioned incident, a media outlet also reported that Ola Electric’s Roadster X is still delaying delivery due to unresolved technical concerns and the ongoing homologation process. Bhavish Aggarwal stated at the bike introduction that the initial plan was for the bike series to start by mid-March 2025. This comes shortly after MHI began to investigate the business for service-related problems, including multiple customer complaints about delayed deliveries, faulty cars, and subpar customer support.
In response to a recent decision by the Delhi High Court’s Division Bench, Reliance Industries Limited (RIL) has declared its plan to contest a $2.81 billion demand from the Ministry of Petroleum and Natural Gas. A long-running dispute about purported gas migration from Oil and Natural Gas Corporation (ONGC) blocks to the KG-D6 Consortium blocks, in which Reliance is a significant partner, is the source of the demand. The dispute stems from a 2018 international arbitration ruling in which the Government of India’s (GOI) claims were rejected by the KG-D6 Consortium, which included RIL, BP Exploration (Alpha) Limited, and NIKO (NECO) Limited. The consortium was given an amount of almost $1.55 billion. In May 2023, a Delhi High Court judge maintained this award. The GOI later appealed the ruling, nevertheless.
What Exactly Happened?
RIL announced in a regulatory filing that on July 24, 2018, an eminent international arbitration panel awarded the company an arbitral award of about US $1.55 billion against the Government of India’s (GOI) claim on the KG-D6 Consortium for alleged gas migration from ONGC’s blocks. On May 09, 2023, the GOI’s appeal contesting the arbitral award was denied by a single judge of the Hon’ble Delhi High Court. The Hon’ble Delhi High Court’s Division Bench received an appeal from the Government of India.
On March 3, 2025, the Delhi High Court’s Division Bench reversed the decision of the single judge. As a result, the Ministry of Petroleum and Natural Gas demanded $2.81 billion from the PSC Contractors, RIL, NECO, and ALPHA. In a formal announcement to the stock exchanges, Reliance Industries said that the Division Bench ruling and the ensuing demand were “unsustainable.” The business has declared that it is contesting the ruling right now. Additionally, RIL has stated that it is confident it would not be held liable for this demand. According to the company’s declaration, RIL has received legal advice that the Division Bench ruling and this temporary requirement are unworkable.
RIL’s Financial Dynamics
The biggest company in India’s private sector is RIL. Hydrocarbon production and exploration, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (hydrogen and solar), retail, and digital services are all included in its operations. In the quarter that concluded on December 31, 2024, RIL recorded a 12% year-over-year growth in consolidated net profit, reaching a record high of INR 21,930 crore. EBITDA increased 7.8% to INR 48,003 crore, while RIL’s Q3 sales increased 7.7% to INR 267,186 crore.
According to a statement released by the Ministry of Commerce and Industry on 14 September 2024, the minimum export price (MEP) criteria for basmati rice exports has been eliminated by the Union Government.
To increase the incomes of farmers, the decision has been made to permit the export of basmati rice, which is a GI-tagged type that is considered to be of the highest quality. In the announcement, it was emphasized that this decision was made in consideration of the sufficient availability of rice within the country as well as continued worries regarding trade.
“We greatly welcome the government’s decision to remove the MEP on Basmati rice. The timing of this strategic move coincided favorably with the imminent harvest of the new crop. With the MEP removed, Indian exporters now have the power to offer Basmati rice at far more competitive rates on a global scale, seemingly primed to drive a huge surge in export volumes. With new crop sales and export orders set to be finalised, this decision provides greater clarity for importers worldwide regarding India’s policy direction. Moreover, this change is expected to benefit farmers by boosting income and price realisations, as increased demand in the short term is likely due to the competitive pricing from Indian exporters,” stated Akshay Gupta, Head – Bulk Exports, KRBL Limited.
APEDA to Closely Monitor Export Contracts
To avoid basmati rice from being priced unreasonably and to guarantee that export procedures are transparent, the Agricultural and Processed Food Products Export Development Authority (APEDA) will rigorously supervise export contracts.
In August 2023, a temporary measure was implemented that established a floor price for basmati rice exports at USD 1,200 per metric tonne (MT). As a result of a limited supply within the country and rising costs for rice on the domestic market, this decision was made. It was also intended to avoid the misclassification of non-basmati rice as basmati during exports. This was done because the export of non-basmati white rice is restricted to satisfy domestic demand.
On the other hand, in October of 2023, the government decided to lower the floor price to USD 950 per MT after receiving comments from various trade associations and stakeholders.
Hiking Duty on Edible Oil to Increase Oil Seed Crop Demand
A post on the social media site “X” made by Shivraj Singh Chouhan, Minister of Agriculture and Farmers Welfare, declared that the government has decided to hike the basic duty on refined oil to 32.5 percent. This is one of the other measures that would affect farmers. As a result of this action, it is anticipated that the demand for mustard, sunflower, and groundnut crops will increase, which will cause farmers’ incomes to improve.
Farmers’ advancement is a priority of Prime Minister Narendra Modi’s government. Increasing the basic tariff on refined oil to 32.5% is something that has been decided upon. Mustard, sunflower, and peanut crops will see an increase in demand as a result of this. According to Chouhan’s statement mentioned in a media report, farmers would earn higher prices for these products, and the expansion of refineries in rural and small areas would also lead to an increase in employment prospects.
In addition, the government has increased the import duty on edible oils from 0% to 20%. Chouhan went on to say that the overall effective duty will amount to 27.5% if other components are taken into consideration during the calculation. A greater quantity of soybean meal, which will be shipped overseas, will be produced as a result of this decision. As Chouhan mentioned in his post on X, other industries that are associated with soy would also get benefits.
Reports indicate that government officials are contemplating a five-year extension of the budgetary assistance period under the second phase of the India Semiconductor Mission (ISM) to eight years.
According to a senior government official, applicants whose projects are approved under ISM Phase II may be eligible for additional financial grants to train their employees, an option for an additional interest-free loan from the government, and a preferential supply of domestically manufactured and packaged chips.
“After the first phase of the ISM was successfully implemented, we learned a lot.” according to the official, they have been receiving feedback from industry professionals and experts all over the world and are making an effort to include as much of it as possible.
Possible Blueprint for Phase II
The source did mention that the second phase of the mission might see an increase in administrative spending and a withdrawal of funding for technology transfer costs.
According to a renowned media outlet, the IT ministry is reportedly planning to reallocate funds from the second phase of the ISM away from chip packaging factories and towards semiconductor fabrication companies in India.
An official said that the incentives for outsourced assembly and testing and assembly, testing, marking, and packing units would be reduced to less than 30% on a pari-passu basis in the next phase of the ISM, down from the present 50%.
According to the official, we will also include more explicit instructions for reimbursement in the proposal itself. These are the initial concepts that have been deliberated.
An additional incentive of 30–35% of the total capital expenditure used to establish units for gases, chemicals, raw materials, metals, and other metallurgy could be offered to successful candidates, according to the official.
5 Semiconductor Projects Approved by GOI
A chip manufacturing plant for Tata Group-Powerchip Semiconductor Manufacturing Corp in Dholera, Gujarat, and four chip packaging units, three in Sanand, Gujarat, and one in Morigaon, Assam, were sanctioned by the government as far under the first phase.
An investment plan to establish a semiconductor chip manufacturing unit at Taloja in Panvel, proposed by a joint venture between Tower Semiconductor and Adani Group, was authorized last week by a cabinet panel in Maharashtra. The proposed investment is $10 billion.
The Navi Mumbai suburbs in Raigad district are home to the projected Tower Semiconductor-Adani Group factory, which will initially have a capacity of 40,000 wafer starts per month (WSPM) and will subsequently be increased to 80,000 WPSM. The first phase investment will amount to INR 58,763 crore, while the second phase investment will account for the remaining INR 25,184 crore of the overall project investment.
This would be the sixth project of its kind to receive central government approval in India; if the ISM gives its blessing, it will become the country’s second chip production facility.
Kaynes Semicon, headquartered in Mysore, has previously requested and received approval from the Union Cabinet to establish an outsourced assembly and testing operation in Sanand, Gujarat, costing INR 3,307 crore. It is anticipated that the Kaynes Semicon plant can produce 6.3 million chips daily.
